Acquisitions, Dispositions and Goodwill

12 Months Ended

Dec. 31, 2014

Goodwill [Abstract]

Goodwill

(5) Acquisitions and Goodwill

Acquisitions

Effective January 1, 2015, we completed the acquisition of all of the capital stock of Producers Ag Insurance Group, Inc. (ProAg) from CUNA Mutual Group for $104.5 million cash. ProAg writes multi-peril crop, crop hail, named peril and livestock insurance.

In 2014, we acquired an agency for $6.4 million cashand a contingent earnout for a three-year period. We recognized $7.0 million of goodwill related to this acquisition.

Goodwill

The goodwill balances by reportable segment and the changes in goodwill are shown in the table below.

		U.S. Property		Professional		Accident		U.S. Surety
		& Casualty		Liability		& Health		& Credit		International		Total
Balance at December 31, 2012		$	223,000	$	314,089	$	144,113	$	79,700	$	124,958	$	885,860
Earnout and other			-		9,104		-		-		236		9,340
	Balance at December 31, 2013		223,000		323,193		144,113		79,700		125,194		895,200
Acquisition			-		-		-		6,996		-		6,996
Earnout and other			-		4,131		-		-		(691)		3,440
	Balance at December 31, 2014	$	223,000	$	327,324	$	144,113	$	86,696	$	124,503	$	905,636

We acquired HCC Global Financial Products, which underwrites our U.S. and International directors’ and officers’ liability business in our Professional Liability segment, in 2002. The purchase agreement includes a contingency for future earnout payments based on the settlement of claims. The ultimate total net earnout cannot be finally determined until all claims are settled or paid. All adjustments to the ultimate purchase price have been, or will be, recorded to goodwill.