ACQUISITION	6 Months Ended
Jun. 30, 2013
ACQUISITION
ACQUISITION	6. ACQUISITION On November 2, 2012, we acquired Rockbridge, a Houston-based managing general agency. Rockbridge specializes in medical professional liability insurance in the excess and surplus market. Coverage is offered to individual physicians and physician groups in all 50 states through a network of retail and wholesale brokers. Total consideration utilized in our fair value analysis was $16.7 million, which includes $15.5 million of cash paid at acquisition, and $1.2 million associated with the present value of a contingent earn-out agreement. The earn-out is subject to the achievement of certain loss ratio targets and may be adjusted, either upward or downward, in future periods based on actual performance achieved. As of June 30, 2013, the recorded value of the contingent earn-out agreement is $1.2 million. Goodwill of $12.4 million, representing the difference between the purchase consideration and the fair value of assets acquired less liabilities assumed, attributable to our casualty segment was recorded. In addition, $4.2 million of separately identifiable intangible assets resulting from the valuations of trade name and acquired software and agency-related relationships ($4.0 million net of related amortization as of June 30, 2013) was recognized. In accordance with GAAP, fair value accounting effects may be adjusted up to one year from the acquisition date upon finalization of the valuation process. However, we concluded our analysis in January 2013, which resulted in no adjustments to amounts recorded at December 31, 2012. During the second quarter of 2013, Rockbridge contributed gross premiums written of $2.9 million and net premiums earned of $1.7 million to our casualty segment. For the six months ended June 30, 2013, Rockbridge contributed gross premiums written of $7.9 million and net premiums earned of $2.5 million.

ACQUISITION

6 Months Ended

Jun. 30, 2013

6. ACQUISITION

On November 2, 2012, we acquired Rockbridge, a Houston-based managing general agency. Rockbridge specializes in medical professional liability insurance in the excess and surplus market. Coverage is offered to individual physicians and physician groups in all 50 states through a network of retail and wholesale brokers.

Total consideration utilized in our fair value analysis was $16.7 million, which includes $15.5 million of cash paid at acquisition, and $1.2 million associated with the present value of a contingent earn-out agreement. The earn-out is subject to the achievement of certain loss ratio targets and may be adjusted, either upward or downward, in future periods based on actual performance achieved. As of June 30, 2013, the recorded value of the contingent earn-out agreement is $1.2 million. Goodwill of $12.4 million, representing the difference between the purchase consideration and the fair value of assets acquired less liabilities assumed, attributable to our casualty segment was recorded. In addition, $4.2 million of separately identifiable intangible assets resulting from the valuations of trade name and acquired software and agency-related relationships ($4.0 million net of related amortization as of June 30, 2013) was recognized. In accordance with GAAP, fair value accounting effects may be adjusted up to one year from the acquisition date upon finalization of the valuation process. However, we concluded our analysis in January 2013, which resulted in no adjustments to amounts recorded at December 31, 2012.

During the second quarter of 2013, Rockbridge contributed gross premiums written of $2.9 million and net premiums earned of $1.7 million to our casualty segment. For the six months ended June 30, 2013, Rockbridge contributed gross premiums written of $7.9 million and net premiums earned of $2.5 million.