POLICY ACQUISITION COSTS (Tables)

12 Months Ended

Dec. 31, 2011

POLICY ACQUISITION COSTS

Schedule of policy acquisition costs deferred and amortized to income

(in thousands)	2011			2010			2009
Deferred policy acquisition costs (DAC), beginning of year	$	74,435		$	75,880		$	78,520
VOBA*, CBIC - Acquisition date	10,822			—			—
Deferred:
Direct commissions	$	116,206		$	101,523		$	100,727
Premium taxes	8,725			6,809			6,596
Other direct underwriting expenses	80,022			67,030			69,496
Ceding commissions	(24,721		)	(24,472		)	(26,156		)
Net deferred	$	180,232		$	150,890		$	150,663
Amortized	173,048			152,335			153,303
DAC/VOBA*, end of year	$	92,441		$	74,435		$	75,880
Policy acquisition costs:
Amortized to expense — DAC	$	165,378		$	152,335		$	153,303
Amortized to expense — VOBA	7,670			—			—
Period costs:
Ceding commission — contingent	(2,207		)	(2,203		)	(1,998		)
Other	6,884			7,939			10,715
Total policy acquisition costs	$	177,725		$	158,071		$	162,020

*Includes asset for value of business acquired (VOBA) in CBIC acquisition