Reportable Segments

12 Months Ended

Dec. 31, 2011

Reportable Segments [Abstract]

Reportable Segments

Note J - Reportable Segments

The Company has two reportable business segments in its operations:  property and casualty insurance and reinsurance.  The property and casualty insurance segment provides multiple line insurance coverage primarily to fleet transportation companies and to independent contractors who contract with fleet transportation companies.  Additionally, the Company offers individual personal automobile coverage, professional liability coverages and business owners' and commercial property policies.  The reinsurance segment accepts cessions from other insurance companies as well as retrocessions from selected reinsurance companies, providing property catastrophe and casualty reinsurance coverages.

The Company evaluates performance and allocates resources based on past or expected results from insurance underwriting operations before income taxes.  Underwriting gain or loss does not include net investment income or gains or losses on the Company's investment portfolio.  All investment-related revenues are managed at the corporate level.  Underwriting gain or loss for the property and casualty insurance segment includes revenue and expense from the Company's agency operations since the agency operations serve as a primary direct marketing facility for this segment.  Management does not identify or allocate assets to reportable segments when evaluating segment performance and depreciation expense is not material for any of the reportable segments.  The accounting policies of each reportable segment are the same as those described in the summary of significant accounting policies.

The following table provides certain profit and loss information for each reportable segment for the years ended December 31:

		2011			2010			2009
Direct and assumed premium written:
Property and casualty insurance		$	274,101		$	249,699		$	209,129
Reinsurance			60,425			46,103			41,030
	Totals	$	334,526		$	295,802		$	250,159
Net premium earned:
Property and casualty insurance		$	186,422		$	174,043		$	141,011
Reinsurance			58,148			40,695			40,289
	Totals	$	244,570		$	214,738		$	181,300
Underwriting gain (loss):
Property and casualty insurance		$	19,646		$	26,308		$	22,190
Reinsurance			(45,113	)		(6,725	)		12,065
	Totals	$	(25,467	)	$	19,583		$	34,255

The following table reconciles reportable segment profits to the Company's consolidated income (loss) before federal income taxes:

		2011			2010			2009
Profit:
Underwriting gain (loss)		$	(25,467	)	$	19,583		$	34,255
Net investment income			10,729			11,335			13,971
Net realized gains (losses) on investments			(17,803	)		16,485			30,816
Corporate expenses			(12,748	)		(12,590	)		(14,776	)
	Income (loss) before federal income taxes	$	(45,289	)	$	34,813		$	64,266

One customer of the property and casualty insurance segment, FedEx Ground Systems, Inc (“FedEx Ground”) and certain of its subsidiaries and related entities represents approximately $23,347, $20,187 and $14,822 of the Company's consolidated direct and assumed premium written in 2011, 2010 and 2009, respectively.  An additional $129,508, $115,625 and $107,724 for 2011, 2010 and 2009, respectively, is placed with the Company by a non-affiliated broker on behalf of independent contractors of this same customer.