OPERATING SEGMENT INFORMATION

9 Months Ended

Sep. 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 Nine-Month Periods
	Ended September 30,						Ended September 30,
	REVENUES						REVENUES
	2011			2010			2011			2010
Casualty	$	60,626		$	57,684		$	173,937		$	175,690
Property	59,226			50,167			148,015			132,133
Surety	26,700			20,483			71,477			58,533
Net premiums earned	$	146,552		$	128,334		$	393,429		$	366,356
Net investment income	15,954			16,762			47,437			50,127
Net realized gains (losses)	(177		)	4,527			14,345			15,281
Total consolidated revenue	$	162,329		$	149,623		$	455,211		$	431,764
	NET EARNINGS						NET EARNINGS
	2011			2010			2011			2010
Casualty	$	23,794		$	8,977		$	55,388		$	23,185
Property	(1,926		)	5,288			16,622			22,669
Surety	2,868			7,461			17,523			19,388
Net underwriting income	$	24,736		$	21,726		$	89,533		$	65,242
Net investment income	15,954			16,762			47,437			50,127
Net realized gains (losses)	(177		)	4,527			14,345			15,281
General corporate expense and interest on debt	(3,107		)	(3,660		)	(10,100		)	(9,943		)
Equity in earnings of unconsolidated investee	713			1,648			7,215			7,327
Total earnings before income taxes	$	38,119		$	41,003		$	148,430		$	128,034
Income tax expense	12,062			13,038			48,531			40,854
Total net earnings	$	26,057		$	27,965		$	99,899		$	87,180

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

	For the Three-Month Periods				For the Nine-Month Periods
	Ended September 30,				Ended September 30,
(in thousands)	2011		2010		2011		2010
Casualty
General liability	$	20,693	$	23,874	$	63,817	$	73,653
Commercial and personal umbrella	15,825		15,361		47,110		45,855
Commercial transportation	8,326		10,088		25,843		30,871
Executive products	4,455		4,015		13,013		11,752
P&C package business	6,126		—		10,235		—
Professional services	2,916		1,092		6,304		2,676
Specialty programs	948		1,604		3,377		5,717
Other	1,337		1,650		4,238		5,166
Total	$	60,626	$	57,684	$	173,937	$	175,690
Property
Commercial property	$	20,295	$	20,122	$	60,894	$	60,284
Marine	13,544		11,891		38,865		35,119
Crop reinsurance	14,873		11,478		22,207		17,478
Property reinsurance	6,491		3,834		14,860		10,803
Other property	4,023		2,842		11,189		8,449
Total	$	59,226	$	50,167	$	148,015	$	132,133
Surety	$	26,700	$	20,483	$	71,477	$	58,533
Grand Total	$	146,552	$	128,334	$	393,429	$	366,356

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 $0.5 million in casualty revenue (with a corresponding decrease in surety revenue) and a $1.0 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.