INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2011

INCOME TAXES

Schedule of deferred tax assets and deferred tax liabilities

(in thousands)	2011			2010
Deferred tax assets:
Tax discounting of claim reserves	$	26,781		$	30,541
Unearned premium offset	19,575			16,723
Deferred compensation	8,746			5,496
Stock option expense	3,954			3,577
NOL carryforward	5,486			—
Other	298			264
Deferred tax assets before allowance	64,840			56,601
Less valuation allowance	—			—
Total deferred tax assets	$	64,840		$	56,601
Deferred tax liabilities:
Net unrealized appreciation of securities	$	63,274		$	51,544
Deferred policy acquisition costs	18,236			14,084
Book/tax depreciation	2,122			1,359
Intangible assets from CBIC acquisition	4,869			—
Undistributed earnings of unconsolidated investee	13,016			11,380
Other	1,190			196
Total deferred tax liabilities	102,707			78,563
Net deferred tax liability	$	(37,867	)	$	(21,962	)

Schedule of reconciliation of income tax expense attributable to income from operations with amounts computed by applying the U.S. federal tax rate to pretax income from continuing operations

(in thousands)	2011			2010			2009
Provision for income taxes at the statutory federal tax rates	$	64,255		$	62,883		$	45,592
Increase (reduction) in taxes resulting from:
Dividends received deduction	(1,980		)	(1,628		)	(1,449		)
ESOP dividends paid deduction	(3,367		)	(4,358		)	(563		)
Tax-exempt interest income	(2,412		)	(3,221		)	(5,171		)
Other items, net	492			(2,206		)	(578		)
Total	$	56,988		$	51,470		$	37,831