OPERATING SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2012

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
	2012		2011			2012		2011
Casualty	$	68,194	$	60,626		$	197,409	$	173,937
Property	54,741		59,226			151,581		148,015
Surety	27,008		26,700			79,817		71,477
Net premiums earned	$	149,943	$	146,552		$	428,807	$	393,429
Net investment income	14,221		15,954			44,340		47,437
Net realized gains (losses)	5,481		(177		)	16,233		14,345
Total consolidated revenue	$	169,645	$	162,329		$	489,380	$	455,211

	NET EARNINGS						NET EARNINGS
	2012			2011			2012			2011
Casualty	$	10,806		$	22,265		$	22,409		$	53,645
Property	(310		)	(1,813		)	11,317			15,653
Surety	8,034			1,072			21,368			15,263
Net underwriting income	$	18,530		$	21,524		$	55,094		$	84,561
Net investment income	14,221			15,954			44,340			47,437
Net realized gains (losses)	5,481			(177		)	16,233			14,345
General corporate expense and interest on debt	(3,611		)	(3,107		)	(10,438		)	(10,100		)
Equity in earnings of unconsolidated investee	1,859			713			8,928			7,215
Total earnings before income taxes	$	36,480		$	34,907		$	114,157		$	143,458
Income tax expense	11,017			10,938			35,908			46,791
Total net earnings	$	25,463		$	23,969		$	78,249		$	96,667

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)	2012		2011		2012		2011
Casualty
General liability	$	21,556	$	20,693	$	63,449	$	63,817
Commercial and personal umbrella	17,430		15,825		50,337		47,110
Commercial transportation	8,583		8,326		25,252		25,843
P&C package business	7,479		6,126		21,334		10,235
Executive products	3,914		3,716		11,666		10,901
Professional services	7,386		3,655		19,704		8,416
Specialty programs	540		948		1,878		3,377
Other	1,306		1,337		3,789		4,238
Total	$	68,194	$	60,626	$	197,409	$	173,937
Property
Commercial property	$	18,640	$	20,295	$	55,285	$	60,894
Marine	14,026		13,544		44,591		38,865
Crop reinsurance	9,876		14,873		15,992		22,207
Property reinsurance	6,826		6,087		20,193		14,456
Other property	5,373		4,427		15,520		11,593
Total	$	54,741	$	59,226	$	151,581	$	148,015
Surety
Miscellaneous	$	10,026	$	9,923	$	29,600	$	24,947
Contract	6,835		6,901		19,507		17,274
Commercial	5,574		5,387		16,536		15,770
Oil and Gas	4,573		4,489		14,174		13,486
Total	$	27,008	$	26,700	$	79,817	$	71,477
Grand Total	$	149,943	$	146,552	$	428,807	$	393,429

Reclassifications have been made between specific product types in our casualty segment.  Effective December 2011, revenues from our Miscellaneous Professional Liability and Cyber Liability lines of business were reclassified to be reported within our Professional Services products.  Prior to the reclassification the revenues from these products were reported in Executive Products.  All comparative periods have been adjusted to reflect these changes.