OPERATING SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2011

OPERATING SEGMENT INFORMATION

OPERATING SEGMENT INFORMATION

5. OPERATING SEGMENT INFORMATION - Selected information by operating segment is presented in the table below.  Additionally, the table reconciles segment totals to total earnings and total revenues.

SEGMENT DATA (in thousands)

	For the Three-Month Periods				For the Six-Month Periods
	Ended June 30,				Ended June 30,
	REVENUES				REVENUES
	2011		2010		2011		2010
Casualty	$	58,332	$	58,640	$	113,311	$	118,006
Property	47,963		43,644		88,789		81,966
Surety	24,531		19,474		44,777		38,050
Net premiums earned	$	130,826	$	121,758	$	246,877	$	238,022
Net investment income	15,180		16,765		31,483		33,365
Net realized gains	10,050		4,291		14,522		10,754
Total consolidated revenue	$	156,056	$	142,814	$	292,882	$	282,141

	NET EARNINGS						NET EARNINGS
	2011			2010			2011			2010
Casualty	$	26,920		$	13,594		$	31,594		$	14,208
Property	9,167			9,334			18,548			17,381
Surety	9,678			7,873			14,655			11,927
Net underwriting income	$	45,765		$	30,801		$	64,797		$	43,516
Net investment income	15,180			16,765			31,483			33,365
Net realized gains (losses)	10,050			4,291			14,522			10,754
General corporate expense and interest on debt	(3,476		)	(3,054		)	(6,993		)	(6,283		)
Equity in earnings of unconsolidated investee	3,886			3,426			6,502			5,679
Total earnings before income taxes	$	71,405		$	52,229		$	110,311		$	87,031
Income tax expense	24,024			17,235			36,469			27,816
Total net earnings	$	47,381		$	34,994		$	73,842		$	59,215

The following table further summarizes revenues (net premiums earned) by major product type within each operating segment:

	For the Three-Month Periods				For the Six-Month Periods
	Ended June 30,				Ended June 30,
(in thousands)	2011		2010		2011		2010
Casualty
General liability	$	21,160	$	24,799	$	43,124	$	49,779
Commercial and personal umbrella	15,713		15,298		31,285		30,494
Commercial transportation	8,604		10,356		17,517		20,783
Executive products	4,336		3,766		8,558		7,737
P&C package business	4,109		—		4,109		—
Professional services	1,899		904		3,388		1,584
Specialty programs	1,089		1,816		2,429		4,113
Other	1,422		1,701		2,901		3,516
Total	$	58,332	$	58,640	$	113,311	$	118,006
Property
Commercial property	$	20,386	$	20,130	$	40,599	$	40,162
Marine	12,849		12,060		25,321		23,228
Crop reinsurance	6,262		5,109		7,334		6,000
Property reinsurance	4,580		3,549		8,369		6,969
Other property	3,886		2,796		7,166		5,607
Total	$	47,963	$	43,644	$	88,789	$	81,966
Surety	$	24,531	$	19,474	$	44,777	$	38,050
Grand Total	$	130,826	$	121,758	$	246,877	$	238,022

Effective January 2011, the fidelity division that was previously included in the surety segment was reclassified to the casualty segment.  All comparative periods have been reclassified to reflect the change.  This reclassification had a minimal effect on each segment and constituted a year-to-date increase of $0.3 million in casualty revenue (with a corresponding decrease in surety revenue) and a $0.6 million year-to-date decrease in net earnings for the casualty segment (with a corresponding increase for the surety segment).

A detailed discussion of earnings and results by segment is contained in management’s discussion and analysis of financial condition and results of operations.