SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Mar. 31, 2016

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Schedule of goodwill and intangible assets

Goodwill and Intangible Assets
(in thousands)			March 31,		December 31,
Reporting Unit			2016		2015
Goodwill
	Energy surety	$	25,706	$	25,706
	Miscellaneous and contract surety		15,110		15,110
	P&C package business		5,246		5,246
	Medical professional liability		12,434		12,434
Total goodwill		$	58,496	$	58,496
Intangibles
	State insurance licenses	$	7,500	$	7,500
	Definite-lived intangibles, net of accumulated amortization of $4,911 at 3/31/16 and $4,678 at 12/31/15		6,236		5,298
Total intangibles		$	13,736	$	12,798
Total goodwill and intangibles		$	72,232	$	71,294

Schedule of reconciliation of numerator and denominator of the basic and diluted earnings per share computations

	For the Three-Month Period					For the Three-Month Period
	Ended March 31,  2016					Ended March 31,  2015
	Income		Shares	Per Share		Income		Shares	Per Share
(in thousands, except per share data)	(Numerator)		(Denominator)	Amount		(Numerator)		(Denominator)	Amount
Basic EPS
Income available to common shareholders	$	31,393	43,597	$	0.72	$	30,598	43,141	$	0.71
Effect of Dilutive Securities
Stock options		-	764				-	851
Diluted EPS
Income available to common shareholders	$	31,393	44,361	$	0.71	$	30,598	43,992	$	0.70

Schedule of changes in the balance of each component of accumulated other comprehensive earnings

(in thousands)	For the Three-Month Periods
	Ended March 31,
Unrealized Gains/Losses on Available-for-Sale Securities	2016		2015
Beginning balance	$	123,774	$	171,383
Other comprehensive earnings before reclassifications		29,171		996
Amounts reclassified from accumulated other comprehensive earnings		(7,408)		(8,591)
Net current-period other comprehensive earnings (loss)	$	21,763	$	(7,595)
Ending balance	$	145,537	$	163,788

Schedule of effects of reclassifications out of accumulated other comprehensive earnings

	Amount Reclassified from Accumulated Other
(in thousands)	Comprehensive Earnings
	For the Three-Month
Component of Accumulated	Periods Ended March 31,				Affected line item in the
Other Comprehensive Earnings	2016		2015		Statement of Earnings
Unrealized gains and losses on available-for-sale securities	$	11,397	$	13,217	Net realized investment gains
		-		-	Other-than-temporary impairment (OTTI) losses on investments
	$	11,397	$	13,217	Earnings before income taxes
		(3,989)		(4,626)	Income tax expense
	$	7,408	$	8,591	Net earnings