View Filing Data

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2012	Oct. 31, 2012
Entity Registrant Name	DONEGAL GROUP INC
Entity Central Index Key	0000800457
Document Type	10-Q
Document Period End Date	Sep. 30, 2012
Amendment Flag	false
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Common Class A
Entity Common Stock, Shares Outstanding		20,062,899
Common Class B
Entity Common Stock, Shares Outstanding		5,576,775

Consolidated Balance Sheets - USD ($)	Sep. 30, 2012	Dec. 31, 2011
Fixed maturities
Held to maturity, amortized cost	$ 43,888,265	$ 58,489,619
Available for sale, at fair value	687,478,911	646,598,178
Equity securities, available for sale, at fair value	2,582,602	7,437,538
Investments in affiliates	36,672,972	32,322,246
Short-term investments, at cost, which approximates fair value	32,785,642	40,461,410
Total investments	803,408,392	785,308,991
Cash	20,041,988	13,245,378
Accrued investment income	6,595,607	6,713,038
Premiums receivable	121,335,888	104,715,327
Reinsurance receivable	208,912,086	209,823,907
Deferred policy acquisition costs	40,968,975	36,424,955
Deferred tax asset, net	2,431,511	9,919,720
Prepaid reinsurance premiums	114,686,364	106,450,018
Property and equipment, net	5,489,355	6,154,383
Accounts receivable - securities	557,537	1,507,500
Federal income taxes recoverable	3,676,164	2,661,808
Due from affiliate	795,748
Goodwill	5,625,354	5,625,354
Other intangible assets	958,010	958,010
Other	1,232,427	1,285,089
Total assets	1,336,715,406	1,290,793,478
Liabilities
Unpaid losses and loss expenses	446,654,358	442,407,615
Unearned premiums	373,751,109	336,937,261
Accrued expenses	17,253,046	20,956,549
Reinsurance balances payable	17,436,361	20,039,339
Borrowings under line of credit	49,690,694	54,500,000
Cash dividends declared to stockholders		2,996,076
Subordinated debentures	20,465,000	20,465,000
Accounts payable - securities	5,416,888
Due to affiliate		5,386,391
Drafts payable	1,352,724	1,548,953
Other	1,806,641	2,104,702
Total liabilities	933,826,821	907,341,886
Stockholders' Equity
Preferred stock, $1.00 par value, authorized 2,000,000 shares; none issued
Additional paid-in capital	173,234,072	170,836,943
Accumulated other comprehensive income	29,447,156	23,533,447
Retained earnings	212,078,748	199,604,700
Treasury stock	(12,136,900)	(10,787,520)
Total stockholders' equity	402,888,585	383,451,592
Total liabilities and stockholders' equity	1,336,715,406	1,290,793,478
Common Class A
Stockholders' Equity
Common stock value	209,017	207,530
Total stockholders' equity	209,017	207,530
Common Class B
Stockholders' Equity
Common stock value	56,492	56,492
Total stockholders' equity	$ 56,492	$ 56,492

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2012	Dec. 31, 2011
Preferred stock, par value	$ 1.00	$ 1.00
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued
Common Class A
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	30,000,000	30,000,000
Common stock, shares issued	20,901,669	20,752,999
Common stock, shares outstanding	20,027,747	19,971,441
Common Class B
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued	5,649,240	5,649,240
Common stock, shares outstanding	5,576,775	5,576,775

Consolidated Statements of Income (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
Consolidated Statements of Income (Unaudited) - USD ($)	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Revenues:
Net premiums earned	$ 120,916,960	$ 108,506,809	$ 353,177,873	$ 317,293,489
Investment income, net of investment expenses	4,715,295	5,041,568	14,724,305	15,692,704
Net realized investment gains	1,312,137	2,458,609	5,150,450	7,147,703
Lease income	235,734	241,247	727,705	707,790
Installment payment fees	1,914,587	1,889,474	5,676,957	5,596,010
Equity in earnings of Donegal Financial Services Corporation	1,336,818	1,026,764	3,621,593	1,364,715
Total revenues	130,431,531	119,164,471	383,078,883	347,802,411
Expenses:
Net losses and loss expenses	82,105,094	89,411,543	245,099,666	246,686,904
Amortization of deferred policy acquisition costs	18,864,000	17,282,000	54,980,000	50,902,000
Other underwriting expenses	19,130,875	15,286,807	57,617,438	49,826,197
Policyholder dividends	401,531	223,352	800,015	529,281
Interest	584,109	528,671	1,785,108	1,530,983
Other expenses	473,240	490,566	1,961,158	1,860,978
Total expenses	121,558,849	123,222,939	362,243,385	351,336,343
Income (loss) before income tax expense (benefit)	8,872,682	(4,058,468)	20,835,498	(3,533,932)
Income tax expense (benefit)	2,033,298	(4,878,394)	3,962,900	(4,865,805)
Net income	$ 6,839,384	$ 819,926	$ 16,872,598	$ 1,331,873
Common Class A
Earnings per common share:
Class A common stock - basic	$ 0.27	$ 0.03	$ 0.67	$ 0.05
Class A common stock - diluted	0.27	0.03	0.66	0.05
Common stock - basic and diluted	0.27	0.03
Common Class B
Earnings per common share:
Class A common stock - basic	0.25	0.03	0.61	0.05
Class A common stock - diluted	0.25	0.03	0.61	0.05
Common stock - basic and diluted	$ 0.25	$ 0.03	$ 0.61	$ 0.05

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Consolidated Statements of Comprehensive Income [Abstract]
Net income	$ 6,839,384	$ 819,926	$ 16,872,598	$ 1,331,873
Unrealized gain on securities:
Unrealized holding income during the period, net of income tax	6,527,358	9,375,803	11,096,463	17,529,346
Reclassification adjustment for gains included in net income (loss), net of income tax	(866,010)	(1,622,682)	(3,399,297)	(4,717,484)
Other comprehensive income	5,661,348	7,753,121	7,697,166	12,811,862
Comprehensive income	$ 12,500,732	$ 8,573,047	$ 24,569,764	$ 14,143,735

- Definition

The change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from non-owner sources which are attributable to the reporting entity. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners, but excludes any and all transactions which are directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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+ Details

- Definition

Net of tax amount of unrealized holding gain (loss) before reclassification adjustments and transfers on available-for-sale securities.

+ References

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+ Details

Consolidated Statements of Comprehensive Income (Parenthetical) (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Consolidated Statements of Comprehensive Income [Abstract]
Income tax on unrealized holding during period	$ 3,494,545	$ 5,010,679	$ 5,895,784	$ 9,328,913
Income tax on reclassification adjustment for gains	$ 446,127	$ 835,927	$ 1,751,153	$ 2,430,219

Consolidated Statement of Stockholders' Equity (Unaudited) - 9 months ended Sep. 30, 2012 - USD ($)	Total	Additional Paid-In Capital	Accumulated Other Comprehensive Income	Retained Earnings	Treasury Stock	Common Class A	Common Class B
Beginning balance at Dec. 31, 2011	$ 383,451,592	$ 170,836,943	$ 23,533,447	$ 199,604,700	$ (10,787,520)	$ 207,530	$ 56,492
Beginning balance, shares at Dec. 31, 2011						20,752,999	5,649,240
Issuance of common stock (stock compensation plans)	2,308,373	2,306,886				$ 1,487
Issuance of common stock (stock compensation plans), shares						148,670
Net income	16,872,598			16,872,598
Cash dividends declared	(6,141,281)			(6,141,281)
Grant of stock options		40,726		(40,726)
Tax benefit on exercise of stock options	49,517	49,517
Repurchase of treasury stock	(1,349,380)				(1,349,380)
Other comprehensive income	7,697,166		7,697,166
Other			(1,783,457)	1,783,457
Ending balance at Sep. 30, 2012	$ 402,888,585	$ 173,234,072	$ 29,447,156	$ 212,078,748	$ (12,136,900)	$ 209,017	$ 56,492
Ending balance, shares at Sep. 30, 2012						20,901,669	5,649,240

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Cash Flows from Operating Activities:
Net income	$ 16,872,598	$ 1,331,873
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	3,305,664	2,808,515
Net realized investment gains	(5,150,450)	(7,147,703)
Income (Loss) from Equity Method Investments	(3,621,593)	(1,364,715)
Changes in assets and liabilities:
Losses and loss expenses	4,246,743	31,036,985
Unearned premiums	36,813,848	49,585,118
Premiums receivable	(16,620,561)	(9,367,635)
Deferred acquisition costs	(4,544,020)	(3,327,517)
Deferred income taxes	3,343,578	(4,838,144)
Reinsurance receivable	911,821	(22,955,603)
Prepaid reinsurance premiums	(8,236,346)	(20,530,218)
Accrued investment income	117,431	901,588
Due to affiliate	(6,182,139)	2,509,790
Reinsurance balances payable	(2,602,978)	2,393,655
Current income taxes	(1,014,356)	(1,260,419)
Accrued expenses	(3,703,503)	(1,591,005)
Other, net	(441,632)	(101,687)
Net adjustments	(3,378,493)	16,751,005
Net cash provided by operating activities	13,494,105	18,082,878
Cash Flows from Investing Activities:
Purchases of fixed maturities, available for sale	(174,925,183)	(131,357,708)
Purchases of equity securities, available for sale	(17,768,362)	(19,839,856)
Maturity of fixed maturities:
Held to maturity	14,351,317	4,768,716
Available for sale	86,783,677	43,494,164
Sales of fixed maturities, available for sale	68,049,639	101,494,480
Sales of equity securities, available for sale	22,235,533	17,675,980
Purchase of Michigan Insurance Company		(7,207,471)
Net purchases of property and equipment	(61,731)
Net increase in investment in affiliates	(100,000)	(20,570,000)
Net sales (purchases) of short-term investments	7,675,768	(19,396,137)
Net cash provided by (used in) investing activities	6,240,658	(30,937,832)
Cash Flows from Financing Activities:
Cash dividends paid	(9,137,357)	(8,877,810)
Issuance of common stock	2,357,890	898,507
Purchase of treasury stock	(1,349,380)	(1,480,395)
Payments on line of credit	(6,000,000)	(3,617,371)
Borrowings under line of credit	1,190,694	22,500,000
Net cash (used in) provided by financing activities	(12,938,153)	9,422,931
Net increase (decrease) in cash	6,796,610	(3,432,023)
Cash at beginning of period	13,245,378	16,342,212
Cash at end of period	20,041,988	12,910,189
Cash paid during period - Interest	1,620,551	1,259,938
Net cash paid (received) during period-Taxes	$ 1,626,965	$ (1,110,000)

Organization

9 Months Ended

Sep. 30, 2012

Organization / Basis of Presentation [Abstract]

Organization

1 -

Organization

Donegal Mutual Insurance Company (“Donegal Mutual”) organized us as an insurance holding company on August 26, 1986. Our insurance subsidiaries, Atlantic States Insurance Company (“Atlantic States”), Southern Insurance Company of Virginia (“Southern”), Le Mars Insurance Company (“Le Mars”), the Peninsula Insurance Group (“Peninsula”), which consists of Peninsula Indemnity Company and The Peninsula Insurance Company, Sheboygan Falls Insurance Company (“Sheboygan”) and Michigan Insurance Company (“MICO”), write personal and commercial lines of property and casualty insurance exclusively through a network of independent insurance agents in certain Mid-Atlantic, Midwestern, New England and Southern states. We have three operating segments: our investment function, our personal lines of insurance and our commercial lines of insurance. The personal lines products of our insurance subsidiaries consist primarily of homeowners and private passenger automobile policies. The commercial lines products of our insurance subsidiaries consist primarily of commercial automobile, commercial multi-peril and workers’ compensation policies. We also own 48.2% of the outstanding stock of Donegal Financial Services Corporation (“DFSC”), a grandfathered unitary savings and loan holding company that owns Union Community Bank FSB (“UCB”). Donegal Mutual owns the remaining 51.8% of the outstanding stock of DFSC.

At September 30, 2012, Donegal Mutual held approximately 39% of our outstanding Class A common stock and approximately 76% of our outstanding Class B common stock. This ownership provides Donegal Mutual with approximately two-thirds of the total voting power of our outstanding common stock. Our insurance subsidiaries and Donegal Mutual have interrelated operations. While each company maintains its separate corporate existence, our insurance subsidiaries and Donegal Mutual conduct business together as the Donegal Insurance Group. As such, Donegal Mutual and our insurance subsidiaries share the same business philosophy, the same management, the same employees and the same facilities and offer the same types of insurance products.

Atlantic States, our largest insurance subsidiary, participates in a pooling agreement with Donegal Mutual. Under the pooling agreement, the two companies pool their insurance business, and each company receives an allocated percentage of the pooled business. Atlantic States has an 80% share of the results of the pooled business, and Donegal Mutual has a 20% share of the results of the pooled business.

On February 23, 2009, our board of directors authorized a share repurchase program pursuant to which we may purchase up to 300,000 shares of our Class A common stock at prices prevailing from time to time in the open market subject to the provisions of applicable rules of the Securities and Exchange Commission (“SEC”) and in privately negotiated transactions. We purchased 92,364 and 115,257 shares of our Class A common stock under this program during the nine months ended September 30, 2012 and 2011, respectively. We have purchased a total of 228,992 shares of our Class A common stock under this program from its inception through September 30, 2012.

Basis of Presentation

9 Months Ended

Sep. 30, 2012

Organization / Basis of Presentation [Abstract]

Basis of Presentation

2 -

Basis of Presentation

Our financial information for the interim periods included in this Form 10-Q Report is unaudited; however, such information reflects all adjustments, consisting only of normal recurring adjustments that, in the opinion of our management, are necessary for a fair presentation of our financial position, results of operations and cash flows for those interim periods. Our results of operations for the nine months ended September 30, 2012 are not necessarily indicative of the results of operations we expect for the year ending December 31, 2012.

You should read these interim financial statements in conjunction with the financial statements and notes thereto contained in our Annual Report on Form 10-K for the year ended December 31, 2011.

During the second quarter of 2012, we recorded an entry that reduced Accumulated Other Comprehensive Income and increased Retained Earnings by $1.8 million to correct an immaterial error related to prior years.

- Definition

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

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-Name Statement of Position (SOP)
-Number 94-6
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 2-6
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 46R
-Paragraph 4, 14, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS140-4/FIN46(R)-8
-Paragraph 8, C1, C7
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Earnings Per Share

9 Months Ended

Sep. 30, 2012

Earnings Per Share [Abstract]

Earnings Per Share

3 -

Earnings Per Share

We have two classes of common stock, which we refer to as our Class A common stock and our Class B common stock. Our certificate of incorporation provides that whenever our board of directors declares a dividend on our Class B common stock, our board of directors must also declare a dividend on our Class A common stock that is payable at the same time to holders as of the same record date at a rate that is at least 10% greater than the rate at which our board of directors declared a dividend on our Class B common stock. Accordingly, we use the two-class method to compute our earnings per common share. The two-class method is an earnings allocation formula that determines earnings per share separately for each class of common stock based on dividends we have declared and an allocation of our remaining undistributed earnings using a participation percentage that reflects the dividend rights of each class. The table below presents for the periods indicated a reconciliation of the numerators and denominators we used to compute basic and diluted net income per share for each class of our common stock:


	Three Months Ended September 30,
	2012				2011
	Class A		Class B		Class A		Class B
	(in thousands, except per share data)
Basic and diluted net income per share:
Numerator:
Allocation of net income	$	5,465	$	1,374	$	662	$	158

Denominator:
Weighted-average shares outstanding		20,041,620		5,576,775		19,976,954		5,576,775

Basic net income per share	$	0.27	$	0.25	$	0.03	$	0.03

Diluted net income per share:
Numerator:
Allocation of net income	$	5,465	$	1,374	$	662	$	158

Denominator:
Number of shares used in basic computation		20,041,620		5,576,775		19,976,954		5,576,775
Weighted-average shares effect of dilutive securities
Add: Director and employee stock options		268,476		—		—		—

Number of shares used in per share computations		20,310,096		5,576,775		19,976,954		5,576,775

Diluted net income per share	$	0.27	$	0.25	$	0.03	$	0.03


	Nine Months Ended September 30,
	2012				2011
	Class A		Class B		Class A		Class B
	(in thousands, except per share data)
Basic and diluted net income per share:
Numerator:
Allocation of net income	$	13,478	$	3,395	$	1,078	$	254

Denominator:
Weighted-average shares outstanding		20,026,652		5,576,775		20,005,149		5,576,775

Basic net income per share	$	0.67	$	0.61	$	0.05	$	0.05

Diluted net income per share:
Numerator:
Allocation of net income	$	13,478	$	3,395	$	1,078	$	254

Denominator:
Number of shares used in basic computation		20,026,652		5,576,775		20,005,149		5,576,775
Weighted-average shares effect of dilutive securities
Add: Director and employee stock options		310,117		—		—		—

Number of shares used in per share computations		20,336,769		5,576,775		20,005,149		5,576,775

Diluted net income per share	$	0.66	$	0.61	$	0.05	$	0.05

We did not include outstanding options to purchase the following number of shares of Class A common stock in our computation of diluted earnings per share because the exercise price of the options was greater than the average market price of our Class A common stock during the applicable period:

Three Months Ended September 30,

Nine Months Ended September 30,

2012

2011

2012

2011

Number of shares excluded

1,222,000

6,332,167

1,219,000

6,332,167

Reinsurance

9 Months Ended

Sep. 30, 2012

Reinsurance [Abstract]

Reinsurance

4 -	Reinsurance

Atlantic States and Donegal Mutual have participated in a pooling agreement since 1986 under which each company places all of its direct written business into the pool, and Atlantic States and Donegal Mutual then share the underwriting results of the pool in accordance with the terms of the pooling agreement. Atlantic States has an 80% share of the results of the pool, and Donegal Mutual has a 20% share of the results of the pool.

Our insurance subsidiaries and Donegal Mutual purchase certain third-party reinsurance on a combined basis. Le Mars, MICO, Peninsula and Sheboygan also purchase separate third-party reinsurance that provides coverage that is commensurate with their relative size and exposures. Our insurance subsidiaries use several different reinsurers, all of which, consistent with requirements of our insurance subsidiaries and Donegal Mutual, have an A.M. Best rating of A- (Excellent) or better or, with respect to foreign reinsurers, have a financial condition that, in the opinion of our management, is equivalent to a company with at least an A- rating from A.M. Best. The following information describes the external reinsurance our insurance subsidiaries have in place at September 30, 2012:

•

excess of loss reinsurance, under which losses are automatically reinsured, through a series of reinsurance agreements, over a set retention (generally $1.0 million), and

•

catastrophe reinsurance, under which Donegal Mutual, Atlantic States and Southern recover, through a series of reinsurance agreements, 90% to 100% of an accumulation of many losses resulting from a single event, including natural disasters, over a set retention (generally $5.0 million).

Through June 7, 2012, our insurance subsidiaries and Donegal Mutual had property catastrophe coverage through a series of layered treaties up to aggregate losses of $130.0 million per occurrence over the set retention. From and after June 8, 2012, our insurance subsidiaries and Donegal Mutual increased their coverage to $145.0 million per occurrence over the set retention.

Our insurance subsidiaries and Donegal Mutual also purchase facultative reinsurance to cover exposures from losses that exceed the limits provided by their third-party reinsurance agreements.

MICO maintains a quota-share reinsurance agreement with third-party reinsurers to reduce its net exposures. Effective from December 1, 2010 to December 31, 2011, the quota-share reinsurance percentage was 50%. Effective January 1, 2012, MICO reduced the quota-share reinsurance percentage from 50% to 40%.

Effective November 1, 2012, Donegal Mutual and Southern terminated their quota-share reinsurance agreement on a run-off basis. Under that agreement, Southern assumed 100% of the premiums and losses related to personal lines products Donegal Mutual offered in Virginia through the use of its automated policy quoting and issuance system.

In addition to the pooling agreement and third-party reinsurance, our insurance subsidiaries have various reinsurance agreements with Donegal Mutual.

Other than the changes we discuss above, we made no significant changes to our third-party reinsurance or the reinsurance agreements between our insurance subsidiaries and Donegal Mutual during the nine months ended September 30, 2012.

- Definition

The entire disclosure pertaining to the existence, magnitude and information about insurance that has been ceded to or assumed from another insurance company, including the methodologies and assumptions used in determining recorded amounts.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6480758&loc=d3e6816-158387

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 605
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6486672&loc=d3e27374-158547

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-03.6,13)
-URI http://asc.fasb.org/extlink&oid=6879938&loc=d3e572229-122910

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6480758&loc=d3e6811-158387

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 605
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6486672&loc=d3e27261-158547

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 605
-Section 55
-Paragraph 13
-URI http://asc.fasb.org/extlink&oid=6588590&loc=d3e27795-158548

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 605
-Section 55
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6588590&loc=d3e27703-158548

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 310
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6485557&loc=d3e21549-158491

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 113
-Paragraph 120
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 113
-Paragraph 27
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 92-5
-Paragraph 19
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 6
-Article 7

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 13
-Article 7

+ Details

Investments

9 Months Ended

Sep. 30, 2012

Investments [Abstract]

Investments

5 -

Investments

The amortized cost and estimated fair values of our fixed maturities and equity securities at September 30, 2012 were as follows:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(in thousands)
Held to Maturity
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	1,000	$	23	$	—	$	1,023
Obligations of states and political subdivisions		42,437		2,020		—		44,457
Corporate securities		250		1		—		251
Residential mortgage-backed securities		201		16		—		217

Totals	$	43,888	$	2,060	$	—	$	45,948


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(in thousands)
Available for Sale
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	75,426	$	1,557	$	11	$	76,972
Obligations of states and political subdivisions		378,337		34,297		62		412,572
Corporate securities		70,680		3,735		162		74,253
Residential mortgage-backed securities		119,445		4,342		105		123,682

Fixed maturities		643,888		43,931		340		687,479
Equity securities		2,462		144		23		2,583

Totals	$	646,350	$	44,075	$	363	$	690,062

At September 30, 2012, our holdings of obligations of states and political subdivisions included general obligation bonds with an aggregate fair value of $360.4 million and an amortized cost of $331.9 million. Our holdings also included special revenue bonds with an aggregate fair value of $96.6 million and an amortized cost of $88.9 million. With respect to both categories of these bonds, we held no securities of any issuer that comprised more than 10% of the category at September 30, 2012. Education bonds and water and sewer utility bonds represented 50% and 19%, respectively, of our total investments in special revenue bonds based on their carrying values at September 30, 2012. Many of the issuers of the special revenue bonds we held at September 30, 2012 have the authority to impose ad valorem taxes. In that respect, many of the special revenue bonds we held are similar to general obligation bonds.

The amortized cost and estimated fair values of our fixed maturities and equity securities at December 31, 2011 were as follows:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(in thousands)
Held to Maturity
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	1,000	$	54	$	—	$	1,054
Obligations of states and political subdivisions		56,966		2,857		—		59,823
Corporate securities		250		3		—		253
Residential mortgage-backed securities		274		19		1		292

Totals	$	58,490	$	2,933	$	1	$	61,422


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(in thousands)
Available for Sale
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	59,432	$	1,546	$	—	$	60,978
Obligations of states and political subdivisions		372,663		26,252		39		398,876
Corporate securities		62,837		1,805		528		64,114
Residential mortgage-backed securities		119,367		3,307		44		122,630

Fixed maturities		614,299		32,910		611		646,598
Equity securities		7,239		606		407		7,438

Totals	$	621,538	$	33,516	$	1,018	$	654,036

At December 31, 2011, our holdings of obligations of states and political subdivisions included general obligation bonds with an aggregate fair value of $372.2 million and an amortized cost of $348.4 million. Our holdings also included special revenue bonds with an aggregate fair value of $86.5 million and an amortized cost of $81.0 million. With respect to both categories of these bonds, we held no securities of any issuer that comprised more than 10% of the category at December 31, 2011. Education bonds and water and sewer utility bonds represented 59% and 17%, respectively, of our total investments in special revenue bonds based on their carrying values at December 31, 2011. Many of the issuers of the special revenue bonds we held at December 31, 2011 have the authority to impose ad valorem taxes. In that respect, many of the special revenue bonds we held are similar to general obligation bonds.

We show below the amortized cost and estimated fair value of our fixed maturities at September 30, 2012 by contractual maturity . Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


	Amortized Cost		Estimated Fair Value
	(in thousands)
Held to maturity
Due in one year or less	$	1,500	$	1,524
Due after one year through five years		33,069		34,535
Due after five years through ten years		9,118		9,672
Due after ten years		—		—
Residential mortgage-backed securities		201		217

Total held to maturity	$	43,888	$	45,948

Available for sale
Due in one year or less	$	15,257	$	15,390
Due after one year through five years		62,479		64,884
Due after five years through ten years		190,144		203,214
Due after ten years		256,563		280,309
Residential mortgage-backed securities		119,445		123,682

Total available for sale	$	643,888	$	687,479

Gross realized gains and losses from investments before applicable income taxes were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
	(in thousands)
Gross realized gains:
Fixed maturities	$	1,249	$	3,464	$	4,944	$	3,905
Equity securities		215		129		1,003		4,634

		1,464		3,593		5,947		8,539

Gross realized losses:
Fixed maturities		36		61		42		163
Equity securities		116		1,073		755		1,228

		152		1,134		797		1,391

Net realized gains	$	1,312	$	2,459	$	5,150	$	7,148

We held fixed maturities and equity securities with unrealized losses representing declines that we considered temporary at September 30, 2012 as follows:


	Less Than 12 Months				More Than 12 Months
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(in thousands)
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	1,771	$	11	$	—	$	—
Obligations of states and political subdivisions		3,547		62		—		—
Corporate securities		3,665		25		1,851		137
Residential mortgage-backed securities		12,359		105		6		—
Equity securities		536		23		—		—

Totals	$	21,878	$	226	$	1,857	$	137

We held fixed maturities and equity securities with unrealized losses representing declines that we considered temporary at December 31, 2011 as follows:


	Less Than 12 Months				More Than 12 Months
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(in thousands)
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	—	$	—	$	—	$	—
Obligations of states and political subdivisions		1,638		17		540		21
Corporate securities		10,101		528		—		—
Residential mortgage-backed securities		7,412		44		1		—
Equity securities		4,084		408		—		—

Totals	$	23,235	$	997	$	541	$	21

Of our total fixed maturity securities with an unrealized loss at September 30, 2012, we classified 14 securities with a fair value of $23.2 million and an unrealized loss of $340,143 as available-for-sale and carried them at fair value on our balance sheet.

Of our total fixed maturity securities with an unrealized loss at December 31, 2011, we classified 19 securities with a fair value of $19.7 million and an unrealized loss of $610,646 as available-for-sale and carried them at fair value on our balance sheet.

We have no direct exposure to sub-prime residential mortgage-backed securities and hold no collateralized debt obligations. Substantially all of the unrealized losses in our fixed maturity investment portfolio have resulted from general market conditions and the related impact on our fixed maturity investment valuations. We make estimates concerning the valuation of our investments and the recognition of other-than-temporary declines in the value of our investments. For equity securities, when we consider the decline in value of an individual investment to be other than temporary, we write the investment down to its fair value, and we reflect the amount of the write-down as a realized loss in our results of operations. We individually monitor all investments for other-than-temporary declines in value. Generally, if an individual equity security has depreciated in value by more than 20% of its original cost, and has been in such an unrealized loss position for more than six months, we assume there has been an other-than-temporary decline in value. We held two equity securities that were in an unrealized loss position at September 30, 2012. Based upon our analysis of general market conditions and underlying factors impacting these equity securities, we consider these declines in value to be temporary. With respect to a debt security that is in an unrealized loss position, we first assess if we intend to sell the debt security. If we intend to sell the debt security, we recognize the impairment loss in our results of operations. If we do not intend to sell the debt security, we determine whether it is more likely than not that we will be required to sell the debt security prior to recovery. If it is more likely than not that we will be required to sell the debt security prior to recovery, we recognize an impairment loss in our results of operations. If it is more likely than not that we will not be required to sell the debt security prior to recovery, we then evaluate whether a credit loss has occurred. To determine whether a credit loss has occurred, we compare the amortized cost of the debt security to the present value of the cash flows we expect to collect. If we expect a cash flow shortfall, we consider a credit loss to have occurred. If we consider a credit loss to have occurred, we consider the impairment to be other than temporary. We then recognize the amount of the impairment loss related to the credit loss in our results of operations, and we recognize the remaining portion of the impairment loss in our other comprehensive income, net of applicable taxes. In addition, we may write down securities in an unrealized loss position based on a number of other factors, including whether the fair value of the investment is significantly below its cost, whether the financial condition of the issuer of the security has deteriorated, the occurrence of industry, company and geographic events that have negatively impacted the value of the security and rating agency downgrades. We determined that no investments with fair values below cost had declined on an other-than-temporary basis during the first nine months of 2012 and 2011, respectively.

We amortize premiums and discounts on debt securities over the life of the security as an adjustment to yield using the effective interest method. We compute realized investment gains and losses using the specific identification method.

We amortize premiums and discounts on mortgage-backed debt securities using anticipated prepayments.

We account for investments in our affiliates using the equity method of accounting. Under this method, we record our investment at cost, with adjustments for our share of our affiliates’ earnings and losses as well as changes in our affiliates’ equity due to unrealized gains and losses. Our investments in affiliates include our 48.2% ownership interest in DFSC. We include our share of DFSC’s net income in our results of operations. We have compiled the following summary financial information for DFSC at September 30, 2012 and December 31, 2011 and for the three and nine months ended September 30, 2012 and 2011, respectively, from the financial statements of DFSC. The financial information at September 30, 2012 and for the three and nine months then ended is unaudited.


	September 30, 2012		December 31, 2011
	(in thousands)
Balance sheets:
Total assets	$	504,551	$	532,938

Total liabilities	$	429,538	$	466,940
Stockholders’ equity		75,013		65,998

Total liabilities and stockholders’ equity	$	504,551	$	532,938


	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
	(in thousands)
Income statements:
Net income	$	2,771	$	2,129	$	7,510	$	2,830

- Definition

The entire disclosure for investments in certain debt and equity securities.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-Glossary Debt Security
-URI http://asc.fasb.org/extlink&oid=6509901

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6379141&loc=d3e15032-111544

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27290-111563

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-Glossary Equity Security
-URI http://asc.fasb.org/extlink&oid=6511694

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27232-111563

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 320
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27357-111563

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27161-111563

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27405-111563

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 3, 19, 20, 21, 22, 137
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Segment Information

9 Months Ended

Sep. 30, 2012

Segment Information [Abstract]

Segment Information

6 -

Segment Information

We evaluate the performance of our personal lines and commercial lines segments based upon the underwriting results of our insurance subsidiaries using statutory accounting principles (“SAP”) that various state insurance departments prescribe or permit. Our management uses SAP to measure the performance of our insurance subsidiaries instead of GAAP. Financial data by segment is as follows:


	Three Months Ended September 30,
	2012			2011
	(in thousands)
Revenues:
Premiums earned
Commercial lines	$	44,921		$	37,948
Personal lines		75,996			70,976

Net premiums earned		120,917			108,924
GAAP adjustments		—			(417	)

GAAP premiums earned		120,917			108,507
Net investment income		4,715			5,042
Realized investment gains		1,312			2,459
Other		3,488			3,157

Total revenues	$	130,432		$	119,165

Income (loss) before income taxes:
Underwriting income (loss):
Commercial lines	$	2,507		$	(1,617	)
Personal lines		(3,980	)		(13,788	)

SAP underwriting loss		(1,473	)		(15,405	)
GAAP adjustments		1,888			1,708

GAAP underwriting income (loss)		415			(13,697	)
Net investment income		4,715			5,042
Realized investment gains		1,312			2,459
Other		2,431			2,137

Income (loss) before income taxes	$	8,873		$	(4,059	)


	Nine Months Ended September 30,
	2012			2011
	(in thousands)
Revenues:
Premiums earned
Commercial lines	$	128,704		$	109,891
Personal lines		224,479			210,608

Net premiums earned		353,183			320,499
GAAP adjustments		(5	)		(3,206	)

GAAP premiums earned		353,178			317,293
Net investment income		14,724			15,693
Realized investment gains		5,150			7,148
Other		10,027			7,668

Total revenues	$	383,079		$	347,802

Income (loss) before income taxes:
Underwriting income (loss):
Commercial lines	$	4,827		$	(1,189	)
Personal lines		(16,554	)		(31,600	)

SAP underwriting loss		(11,727	)		(32,789	)
GAAP adjustments		6,408			2,138

GAAP underwriting loss		(5,319	)		(30,651	)
Net investment income		14,724			15,693
Realized investment gains		5,150			7,148
Other		6,281			4,276

Income (loss) before income taxes	$	20,836		$	(3,534	)

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Publisher FASB
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 131
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Borrowings

9 Months Ended

Sep. 30, 2012

Borrowings [Abstract]

Borrowings

7 -

Borrowings

Line of Credit

In June 2012, we renewed our existing credit agreement with Manufacturers and Traders Trust Company (“M&T”) relating to a $60.0 million unsecured, revolving line of credit that expires in July 2015. We have the right to request a one-year extension of the credit agreement as of each anniversary date of the agreement. In December 2010 and March 2011, we borrowed $35.0 million and $3.5 million, respectively, in connection with our acquisition of MICO. In May 2011, we borrowed $19.0 million in connection with the merger of Union National Financial Corporation (“UNNF”) with and into DFSC. At September 30, 2012, we had $48.5 million in outstanding borrowings and had the ability to borrow an additional $11.5 million at interest rates equal to M&T’s current prime rate or the then current LIBOR rate plus 2.25%. The interest rate on our outstanding borrowings is adjustable quarterly. At September 30, 2012, the interest rate on our outstanding borrowings was 2.46%. We pay a fee of 0.2% per annum on the loan commitment amount regardless of usage. The credit agreement requires our compliance with certain covenants. These covenants include minimum levels of our net worth, leverage ratio and statutory surplus and the A.M. Best ratings of our insurance subsidiaries. With the exception of a requirement that we maintain a minimum interest coverage ratio, we complied with all the requirements of the credit agreement during the year ended December 31, 2011. M&T waived the minimum interest coverage ratio requirement at December 31, 2011. The credit agreement requires that we calculate our interest coverage ratio using data for the most recent eight quarterly periods. We complied with all requirements of the credit agreement, including the interest coverage ratio, during the nine months ended September 30, 2012.

MICO has an agreement with the Federal Home Loan Bank (the “FHLB”) of Indianapolis. Through its membership, MICO has issued debt to the FHLB of Indianapolis in exchange for cash advances in the amount of $1.2 million as of September 30, 2012. The interest rate on the advances is variable and was .51% at September 30, 2012. The advances were repaid in October 2012. The table below presents the amount of FHLB of Indianapolis stock purchased, collateral pledged and assets related to MICO’s agreement at September 30, 2012:


FHLB stock purchased and owned as part of the agreement	$	252,100
Collateral pledged, at par (carrying value $3,067,600)		4,450,000
Borrowing capacity currently available		3,522,000

Subordinated Debentures

On October 29, 2003, we received $10.0 million in net proceeds from the issuance of subordinated debentures. The debentures mature on October 29, 2033 and may be called at our option, at par. The debentures carry an interest rate equal to the three-month LIBOR rate plus 3.85%, which is adjustable quarterly. At September 30, 2012, the interest rate on these debentures was 4.30% and was adjusted to 4.16% on October 29, 2012.

On May 24, 2004, we received $5.0 million in net proceeds from the issuance of subordinated debentures. The debentures mature on May 24, 2034 and may be called at our option, at par. The debentures carry an interest rate equal to the three-month LIBOR rate plus 3.85%, which is adjustable quarterly. At September 30, 2012, the interest rate on these debentures was 4.28% and was next subject to adjustment on November 26, 2012.

In January 2002, West Bend Mutual Insurance Company (“West Bend”), the prior owner of MICO, purchased a $5.0 million surplus note from MICO at face value to increase MICO’s statutory surplus. On December 1, 2010, Donegal Mutual purchased the surplus note from West Bend at face value. The surplus note carries an interest rate of 5.00%, and any repayment of principal or interest on the surplus note requires prior insurance regulatory approval.

Share-Based Compensation

9 Months Ended

Sep. 30, 2012

Share-Based Compensation [Abstract]

Share-Based Compensation

8 -

Share–Based Compensation

We measure all share-based payments to employees, including grants of stock options, using a fair-value-based method and the recording of such expense in our consolidated statements of income. In determining the expense we record for stock options granted to directors and employees of our subsidiaries and affiliates other than Donegal Mutual, we estimate the fair value of each option award on the date of grant using the Black-Scholes option pricing model. The significant assumptions we utilize in applying the Black-Scholes option pricing model are the risk-free interest rate, expected term, dividend yield and expected volatility.

We charged compensation expense for our stock compensation plans against income before income taxes of $121,189 and $95,528 for the three months ended September 30, 2012 and 2011, respectively, with a corresponding income tax benefit of $42,416 and $32,480, respectively. We charged compensation expense for our stock compensation plans against income before income taxes of $360,915 and $165,014 for the nine months ended September 30, 2012 and 2011, respectively, with a corresponding income tax benefit of $126,320 and $56,105. At September 30, 2012, we had $568,748 of unrecognized compensation cost related to nonvested share-based compensation granted under our stock compensation plans. We expect to recognize this cost over a weighted average period of 7.3 years.

We account for share-based compensation to employees and directors of Donegal Mutual as share-based compensation to employees of a controlling entity. As such, we measure the fair value of the award at the grant date and recognize the fair value as a dividend to Donegal Mutual. This accounting applies to options we grant to employees and directors of Donegal Mutual, the employer of a majority of the employees that provide services to us. We recorded implied dividends of $22,714 and $2.2 million for the three months ended September 30, 2012 and 2011, respectively. We recorded implied dividends of $40,726 and $2.3 million for the nine months ended September 30, 2012 and 2011, respectively.

We received cash from option exercises under all stock compensation plans for the three months ended September 30, 2012 and 2011 of $187,025 and $0, respectively. We received cash from option exercises under all stock compensation plans for the nine months ended September 30, 2012 and 2011 of $1.0 million and $0, respectively. We realized actual tax benefits for the tax deductions from option exercises of share-based compensation of $10,475 and $0 for the three months ended September 30, 2012 and 2011, respectively. We realized actual tax benefits for the tax deductions from option exercises of share-based compensation of $49,517 and $0 for the nine months ended September 30, 2012 and 2011, respectively.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 50
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666

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Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 14

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 93-6
-Paragraph 53
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Fair Value Measurements

9 Months Ended

Sep. 30, 2012

Fair Value Measurements [Abstract]

Fair Value Measurements

9 -

Fair Value Measurements

We account for financial assets using a framework that establishes a hierarchy that ranks the quality and reliability of the inputs, or assumptions, we use in the determination of fair value, and we classify financial assets and liabilities carried at fair value in one of the following three categories:

Level 1 – quoted prices in active markets for identical assets and liabilities;

Level 2 – directly or indirectly observable inputs other than Level 1 quoted prices; and

Level 3 – unobservable inputs not corroborated by market data.

For investments that have quoted market prices in active markets, we use the quoted market price as fair value and include these investments in Level 1 of the fair value hierarchy. We classify publicly traded equity securities as Level 1. When quoted market prices in active markets are not available, we base fair values on quoted market prices of comparable instruments or price estimates we obtain from independent pricing services. We classify our fixed maturity investments as Level 2. Our fixed maturity investments consist of U.S. Treasury securities and obligations of U.S. government corporations and agencies, obligations of states and political subdivisions, corporate securities and residential mortgage-backed securities.

We present our investments in available-for-sale fixed maturity and equity securities at estimated fair value. The estimated fair value of a security may differ from the amount that could be realized if we sold the security in a forced transaction. In addition, the valuation of fixed maturity investments is more subjective when markets are less liquid, increasing the potential that the estimated fair value does not reflect the price at which an actual transaction would occur. We utilize nationally recognized independent pricing services to estimate fair values or obtain market quotations for substantially all of our fixed maturity and equity investments. We generally obtain one price per security. The pricing services utilize market quotations for fixed maturity and equity securities that have quoted prices in active markets. For fixed maturity securities that generally do not trade on a daily basis, the pricing services prepare estimates of fair value measurements based predominantly on observable market inputs. The pricing services do not use broker quotes in determining the fair values of our investments. Our investment personnel review the estimates of fair value the pricing services provide to determine if the estimates we obtain are representative of fair values based upon their general knowledge of the market, their research findings related to unusual fluctuations in value and their comparison of such values to execution prices for similar securities. Our investment personnel monitor the market and are familiar with current trading ranges for similar securities and pricing of specific investments. Our investment personnel review all pricing estimates that we receive from the pricing services against their expectations with respect to pricing based on fair market curves, security ratings, coupon rates, security type and recent trading activity. Our investment personnel review documentation with respect to the pricing services’ pricing methodology that they obtain periodically to determine if the primary pricing sources, market inputs and pricing frequency for various security types are reasonable. At September 30, 2012 and December 31, 2011, we received one estimate per security from one of the pricing services, and we priced substantially all of our Level 1 and Level 2 investments using those prices. In our review of the estimates the pricing services provided at September 30, 2012 and December 31, 2011, we did not identify any discrepancies, and we did not make any adjustments to the estimates the pricing services provided.

We present our cash and short-term investments at estimated fair value. The carrying values in the balance sheet for premium receivables and reinsurance receivables and payables for premiums and paid losses and loss expenses approximate their fair values. The carrying amounts reported in the balance sheet for our subordinated debentures and borrowings under line of credit approximate their fair values. We classify these items as Level 3.

We evaluate our assets and liabilities on a recurring basis to determine the appropriate level at which to classify them for each reporting period.

The following table presents our fair value measurements for our investments in available-for-sale fixed maturity and equity securities at September 30, 2012:


			Fair Value Measurements Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	76,972	$	—	$	76,972	$	—
Obligations of states and political subdivisions		412,572		—		412,572		—
Corporate securities		74,253		—		74,253		—
Residential mortgage-backed securities		123,682		—		123,682		—
Equity securities		2,583		1,127		1,456		—

Totals	$	690,062	$	1,127	$	688,935	$	—

We did not transfer any investments between Levels 1 and 2 during the nine months ended September 30, 2012.

The following table presents our fair value measurements for our investments in available-for-sale fixed maturity and equity securities at December 31, 2011:


			Fair Value Measurements Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	60,978	$	—	$	60,978	$	—
Obligations of states and political subdivisions		398,877		—		398,877		—
Corporate securities		64,114		—		64,114		—
Residential mortgage-backed securities		122,630		—		122,630		—
Equity securities		7,437		6,178		1,259		—

Totals	$	654,036	$	6,178	$	647,858	$	—

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15B
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 44A, 44B
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 17-22, 27, 28
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15A
-Subparagraph a-d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15C, 15D
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32, 33, 34
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 3, 10, 14, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Income Taxes

9 Months Ended

Sep. 30, 2012

Income Taxes [Abstract]

Income Taxes

10 -

Income Taxes

At September 30, 2012 and December 31, 2011, respectively, we had no material unrecognized tax benefits or accrued interest and penalties. Tax years 2009 through 2011 remained open for examination at September 30, 2012. We provide a valuation allowance when we believe it is more likely than not that we will not realize some portion of the tax asset. We established a valuation allowance of $440,778 related to a portion of the net operating loss carryforward of Le Mars at January 1, 2004. We have determined that we are not required to establish a valuation allowance for the other net deferred tax assets of $33.4 million and $34.6 million at September 30, 2012 and December 31, 2011, respectively, since it is more likely than not that we will realize these deferred tax assets through reversals of existing temporary differences, future taxable income and the implementation of tax planning strategies. At September 30, 2012, we had remaining a net operating loss carryforward of $6.3 million related to the tax loss we incurred in 2011, which is available to offset our future taxable income and will expire in 2031 if not utilized. We also have a net operating loss carryforward of $5.1 million related to Le Mars, which will begin to expire in 2012 if not utilized. This carryforward is subject to an annual limitation in the amount that we can use in any one year of approximately $376,000.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 43, 44, 45, 46, 47, 48, 49
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Impact of New Accounting Standards

9 Months Ended

Sep. 30, 2012

Impact of New Accounting Standards [Abstract]

Impact of New Accounting Standards

11	- Impact of New Accounting Standards

In October 2010, the Financial Accounting Standards Board (“FASB”) issued updated guidance to address the diversity in practice for the accounting for costs associated with acquiring or renewing insurance contracts. This guidance modifies the definition of acquisition costs to specify that a cost must relate directly to the successful acquisition of a new or renewal insurance contract to qualify for deferral. If the application of this guidance would result in the capitalization of acquisition costs that a reporting entity had not previously capitalized, the entity may elect not to capitalize those costs. The updated guidance is effective for periods ending after December 15, 2011. We adopted this new guidance prospectively in 2012. The amount of acquisition costs we capitalized during the first nine months of 2012 did not change materially from the amount of acquisition costs that we would have capitalized had we applied our previous policy during the period. Our adoption of this new guidance did not have a material impact on our financial position, results of operations or cash flows.

In May 2011, the FASB issued guidance that eliminates the concepts of in-use and in-exchange when measuring the fair value of all financial instruments. The fair value of a financial asset should be measured on a standalone basis and cannot be measured as part of a group. The new guidance requires several new disclosures including the disclosure of all transfers between Level 1 and Level 2 of the fair value hierarchy and additional disclosures regarding Level 3 assets. This guidance is effective for interim and annual periods beginning on or after December 15, 2011. We adopted this new guidance in 2012. Our adoption of this new guidance did not impact our financial position, results of operations or cash flows.

In June 2011, the FASB issued new guidance related to the presentation of other comprehensive income. The new guidance provides entities with an option to either replace the income statement with a statement of comprehensive income, which would display both the components of net income and comprehensive in a combined statement, or to present a separate statement of comprehensive income immediately following the income statement. The new guidance does not affect the components of other comprehensive income or the calculation of earnings per share. The new guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. The new guidance is to be applied retrospectively with early adoption permitted. We adopted this new guidance in 2012. Our adoption of this new guidance did not impact our financial position, results of operations or cash flows.

In September 2011, the FASB issued new guidance related to evaluating goodwill for impairment. The new guidance provides entities with the option to perform a qualitative assessment of whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount before applying the quantitative two-step goodwill impairment test. If an entity concludes that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, it is not required to perform the quantitative two-step goodwill impairment test. Entities also have the option to bypass the assessment of qualitative factors for any reporting unit in any period and proceed directly to performing the first step of the quantitative two-step goodwill impairment test, as was required prior to the issuance of this new guidance. An entity may begin or resume performing the qualitative assessment in any subsequent period. The new guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. We adopted this new guidance in 2011. Our adoption of this new guidance did not impact our financial position, results of operations or cash flows.

In July 2012, the FASB issued guidance related to evaluating indefinite-lived intangible assets for impairment. The new guidance provides entities with the option to perform a qualitative assessment of whether it is more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying amount. If an entity concludes that it is not more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying value, it is not required to perform the quantitative impairment test. Entities also have the option to bypass the qualitative assessment for any indefinite-lived intangible asset in any period and proceed directly to performing the quantitative impairment test. Entities are able to resume performing the qualitative assessment in any subsequent period. The guidance is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012, with early adoption permitted. We adopted this new guidance in 2012. Our adoption of this new guidance did not impact our financial position, results of operations or cash flows.

- Definition

The entire disclosure for reporting accounting changes and error corrections. It includes the conveyance of information necessary for a user of the Company's financial information to understand all aspects and required disclosure information concerning all changes and error corrections reported in the Company's financial statements for the period.

+ References + Details

Impact of New Accounting Standards (Policies)	9 Months Ended
Impact of New Accounting Standards (Policies)	Sep. 30, 2012
Impact of New Accounting Standards [Abstract]
Fair Value Measurements	In May 2011, the FASB issued guidance that eliminates the concepts of in-use and in-exchange when measuring the fair value of all financial instruments. The fair value of a financial asset should be measured on a standalone basis and cannot be measured as part of a group. The new guidance requires several new disclosures including the disclosure of all transfers between Level 1 and Level 2 of the fair value hierarchy and additional disclosures regarding Level 3 assets. This guidance is effective for interim and annual periods beginning on or after December 15, 2011. We adopted this new guidance in 2012. Our adoption of this new guidance did not impact our financial position, results of operations or cash flows.
Acquisition Costs	In October 2010, the Financial Accounting Standards Board (“FASB”) issued updated guidance to address the diversity in practice for the accounting for costs associated with acquiring or renewing insurance contracts. This guidance modifies the definition of acquisition costs to specify that a cost must relate directly to the successful acquisition of a new or renewal insurance contract to qualify for deferral. If the application of this guidance would result in the capitalization of acquisition costs that a reporting entity had not previously capitalized, the entity may elect not to capitalize those costs. The updated guidance is effective for periods ending after December 15, 2011. We adopted this new guidance prospectively in 2012. The amount of acquisition costs we capitalized during the first nine months of 2012 did not change materially from the amount of acquisition costs that we would have capitalized had we applied our previous policy during the period. Our adoption of this new guidance did not have a material impact on our financial position, results of operations or cash flows.
Other Comprehensive Income	In June 2011, the FASB issued new guidance related to the presentation of other comprehensive income. The new guidance provides entities with an option to either replace the income statement with a statement of comprehensive income, which would display both the components of net income and comprehensive in a combined statement, or to present a separate statement of comprehensive income immediately following the income statement. The new guidance does not affect the components of other comprehensive income or the calculation of earnings per share. The new guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. The new guidance is to be applied retrospectively with early adoption permitted. We adopted this new guidance in 2012. Our adoption of this new guidance did not impact our financial position, results of operations or cash flows.
Goodwill	In September 2011, the FASB issued new guidance related to evaluating goodwill for impairment. The new guidance provides entities with the option to perform a qualitative assessment of whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount before applying the quantitative two-step goodwill impairment test. If an entity concludes that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, it is not required to perform the quantitative two-step goodwill impairment test. Entities also have the option to bypass the assessment of qualitative factors for any reporting unit in any period and proceed directly to performing the first step of the quantitative two-step goodwill impairment test, as was required prior to the issuance of this new guidance. An entity may begin or resume performing the qualitative assessment in any subsequent period. The new guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. We adopted this new guidance in 2011. Our adoption of this new guidance did not impact our financial position, results of operations or cash flows. In July 2012, the FASB issued guidance related to evaluating indefinite-lived intangible assets for impairment. The new guidance provides entities with the option to perform a qualitative assessment of whether it is more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying amount. If an entity concludes that it is not more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying value, it is not required to perform the quantitative impairment test. Entities also have the option to bypass the qualitative assessment for any indefinite-lived intangible asset in any period and proceed directly to performing the quantitative impairment test. Entities are able to resume performing the qualitative assessment in any subsequent period. The guidance is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012, with early adoption permitted. We adopted this new guidance in 2012. Our adoption of this new guidance did not impact our financial position, results of operations or cash flows.

Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2012

Earnings Per Share [Abstract]

Reconciliation of basic and diluted weighted average shares outstanding

The table below presents for the periods indicated a reconciliation of the numerators and denominators we used to compute basic and diluted net income per share for each class of our common stock:


	Three Months Ended September 30,
	2012				2011
	Class A		Class B		Class A		Class B
	(in thousands, except per share data)
Basic and diluted net income per share:
Numerator:
Allocation of net income	$	5,465	$	1,374	$	662	$	158

Denominator:
Weighted-average shares outstanding		20,041,620		5,576,775		19,976,954		5,576,775

Basic net income per share	$	0.27	$	0.25	$	0.03	$	0.03

Diluted net income per share:
Numerator:
Allocation of net income	$	5,465	$	1,374	$	662	$	158

Denominator:
Number of shares used in basic computation		20,041,620		5,576,775		19,976,954		5,576,775
Weighted-average shares effect of dilutive securities
Add: Director and employee stock options		268,476		—		—		—

Number of shares used in per share computations		20,310,096		5,576,775		19,976,954		5,576,775

Diluted net income per share	$	0.27	$	0.25	$	0.03	$	0.03


	Nine Months Ended September 30,
	2012				2011
	Class A		Class B		Class A		Class B
	(in thousands, except per share data)
Basic and diluted net income per share:
Numerator:
Allocation of net income	$	13,478	$	3,395	$	1,078	$	254

Denominator:
Weighted-average shares outstanding		20,026,652		5,576,775		20,005,149		5,576,775

Basic net income per share	$	0.67	$	0.61	$	0.05	$	0.05

Diluted net income per share:
Numerator:
Allocation of net income	$	13,478	$	3,395	$	1,078	$	254

Denominator:
Number of shares used in basic computation		20,026,652		5,576,775		20,005,149		5,576,775
Weighted-average shares effect of dilutive securities
Add: Director and employee stock options		310,117		—		—		—

Number of shares used in per share computations		20,336,769		5,576,775		20,005,149		5,576,775

Diluted net income per share	$	0.66	$	0.61	$	0.05	$	0.05

Reconciliation of diluted shares outstanding

Three Months Ended September 30,

Nine Months Ended September 30,

2012

2011

2012

2011

Number of shares excluded

1,222,000

6,332,167

1,219,000

6,332,167

- Definition

Tabular disclosure of the effect of income (loss) on an entity's diluted earnings per share.

+ References + Details

Investments (Tables)

9 Months Ended

Sep. 30, 2012

Investments [Abstract]

Summary of amortized cost and estimated fair value of fixed maturities

The amortized cost and estimated fair values of our fixed maturities and equity securities at September 30, 2012 were as follows:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(in thousands)
Held to Maturity
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	1,000	$	23	$	—	$	1,023
Obligations of states and political subdivisions		42,437		2,020		—		44,457
Corporate securities		250		1		—		251
Residential mortgage-backed securities		201		16		—		217

Totals	$	43,888	$	2,060	$	—	$	45,948


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(in thousands)
Available for Sale
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	75,426	$	1,557	$	11	$	76,972
Obligations of states and political subdivisions		378,337		34,297		62		412,572
Corporate securities		70,680		3,735		162		74,253
Residential mortgage-backed securities		119,445		4,342		105		123,682

Fixed maturities		643,888		43,931		340		687,479
Equity securities		2,462		144		23		2,583

Totals	$	646,350	$	44,075	$	363	$	690,062

The amortized cost and estimated fair values of our fixed maturities and equity securities at December 31, 2011 were as follows:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(in thousands)
Held to Maturity
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	1,000	$	54	$	—	$	1,054
Obligations of states and political subdivisions		56,966		2,857		—		59,823
Corporate securities		250		3		—		253
Residential mortgage-backed securities		274		19		1		292

Totals	$	58,490	$	2,933	$	1	$	61,422


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(in thousands)
Available for Sale
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	59,432	$	1,546	$	—	$	60,978
Obligations of states and political subdivisions		372,663		26,252		39		398,876
Corporate securities		62,837		1,805		528		64,114
Residential mortgage-backed securities		119,367		3,307		44		122,630

Fixed maturities		614,299		32,910		611		646,598
Equity securities		7,239		606		407		7,438

Totals	$	621,538	$	33,516	$	1,018	$	654,036

Summary of amortized cost and estimated fair value of fixed maturities by contractual maturity

We show below the amortized cost and estimated fair value of our fixed maturities at September 30, 2012 by contractual maturity


	Amortized Cost		Estimated Fair Value
	(in thousands)
Held to maturity
Due in one year or less	$	1,500	$	1,524
Due after one year through five years		33,069		34,535
Due after five years through ten years		9,118		9,672
Due after ten years		—		—
Residential mortgage-backed securities		201		217

Total held to maturity	$	43,888	$	45,948

Available for sale
Due in one year or less	$	15,257	$	15,390
Due after one year through five years		62,479		64,884
Due after five years through ten years		190,144		203,214
Due after ten years		256,563		280,309
Residential mortgage-backed securities		119,445		123,682

Total available for sale	$	643,888	$	687,479

Summary of gross realized gains and losses from investments before applicable income taxes

Gross realized gains and losses from investments before applicable income taxes were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
	(in thousands)
Gross realized gains:
Fixed maturities	$	1,249	$	3,464	$	4,944	$	3,905
Equity securities		215		129		1,003		4,634

		1,464		3,593		5,947		8,539

Gross realized losses:
Fixed maturities		36		61		42		163
Equity securities		116		1,073		755		1,228

		152		1,134		797		1,391

Net realized gains	$	1,312	$	2,459	$	5,150	$	7,148

Summary of fixed maturities and equity securities with unrealized losses

We held fixed maturities and equity securities with unrealized losses representing declines that we considered temporary at September 30, 2012 as follows:


	Less Than 12 Months				More Than 12 Months
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(in thousands)
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	1,771	$	11	$	—	$	—
Obligations of states and political subdivisions		3,547		62		—		—
Corporate securities		3,665		25		1,851		137
Residential mortgage-backed securities		12,359		105		6		—
Equity securities		536		23		—		—

Totals	$	21,878	$	226	$	1,857	$	137

We held fixed maturities and equity securities with unrealized losses representing declines that we considered temporary at December 31, 2011 as follows:


	Less Than 12 Months				More Than 12 Months
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(in thousands)
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	—	$	—	$	—	$	—
Obligations of states and political subdivisions		1,638		17		540		21
Corporate securities		10,101		528		—		—
Residential mortgage-backed securities		7,412		44		1		—
Equity securities		4,084		408		—		—

Totals	$	23,235	$	997	$	541	$	21

Summary of financial information

The financial information at September 30, 2012 and for the three and nine months then ended is unaudited.


	September 30, 2012		December 31, 2011
	(in thousands)
Balance sheets:
Total assets	$	504,551	$	532,938

Total liabilities	$	429,538	$	466,940
Stockholders’ equity		75,013		65,998

Total liabilities and stockholders’ equity	$	504,551	$	532,938


	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
	(in thousands)
Income statements:
Net income	$	2,771	$	2,129	$	7,510	$	2,830

Segment Information (Tables)

9 Months Ended

Sep. 30, 2012

Segment Information [Abstract]

Summary of financial data by segment

Financial data by segment is as follows:


	Three Months Ended September 30,
	2012			2011
	(in thousands)
Revenues:
Premiums earned
Commercial lines	$	44,921		$	37,948
Personal lines		75,996			70,976

Net premiums earned		120,917			108,924
GAAP adjustments		—			(417	)

GAAP premiums earned		120,917			108,507
Net investment income		4,715			5,042
Realized investment gains		1,312			2,459
Other		3,488			3,157

Total revenues	$	130,432		$	119,165

Income (loss) before income taxes:
Underwriting income (loss):
Commercial lines	$	2,507		$	(1,617	)
Personal lines		(3,980	)		(13,788	)

SAP underwriting loss		(1,473	)		(15,405	)
GAAP adjustments		1,888			1,708

GAAP underwriting income (loss)		415			(13,697	)
Net investment income		4,715			5,042
Realized investment gains		1,312			2,459
Other		2,431			2,137

Income (loss) before income taxes	$	8,873		$	(4,059	)


	Nine Months Ended September 30,
	2012			2011
	(in thousands)
Revenues:
Premiums earned
Commercial lines	$	128,704		$	109,891
Personal lines		224,479			210,608

Net premiums earned		353,183			320,499
GAAP adjustments		(5	)		(3,206	)

GAAP premiums earned		353,178			317,293
Net investment income		14,724			15,693
Realized investment gains		5,150			7,148
Other		10,027			7,668

Total revenues	$	383,079		$	347,802

Income (loss) before income taxes:
Underwriting income (loss):
Commercial lines	$	4,827		$	(1,189	)
Personal lines		(16,554	)		(31,600	)

SAP underwriting loss		(11,727	)		(32,789	)
GAAP adjustments		6,408			2,138

GAAP underwriting loss		(5,319	)		(30,651	)
Net investment income		14,724			15,693
Realized investment gains		5,150			7,148
Other		6,281			4,276

Income (loss) before income taxes	$	20,836		$	(3,534	)

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References + Details

Borrowings (Tables)

9 Months Ended

Sep. 30, 2012

Borrowings [Abstract]

The amount of FHLB of Indianapolis stock purchased, collateral pledged and assets related to MICO's agreement

The table below presents the amount of FHLB of Indianapolis stock purchased, collateral pledged and assets related to MICO’s agreement at September 30, 2012:


FHLB stock purchased and owned as part of the agreement	$	252,100
Collateral pledged, at par (carrying value $3,067,600)		4,450,000
Borrowing capacity currently available		3,522,000

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2012

Fair Value Measurements [Abstract]

Fair value measurements for investments in available-for-sale fixed maturity and equity securities

The following table presents our fair value measurements for our investments in available-for-sale fixed maturity and equity securities at September 30, 2012:


			Fair Value Measurements Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	76,972	$	—	$	76,972	$	—
Obligations of states and political subdivisions		412,572		—		412,572		—
Corporate securities		74,253		—		74,253		—
Residential mortgage-backed securities		123,682		—		123,682		—
Equity securities		2,583		1,127		1,456		—

Totals	$	690,062	$	1,127	$	688,935	$	—

The following table presents our fair value measurements for our investments in available-for-sale fixed maturity and equity securities at December 31, 2011:


			Fair Value Measurements Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	60,978	$	—	$	60,978	$	—
Obligations of states and political subdivisions		398,877		—		398,877		—
Corporate securities		64,114		—		64,114		—
Residential mortgage-backed securities		122,630		—		122,630		—
Equity securities		7,437		6,178		1,259		—

Totals	$	654,036	$	6,178	$	647,858	$	—

Organization (Details)	9 Months Ended
Organization (Details)	Sep. 30, 2012 Segment shares	Sep. 30, 2011 shares	Feb. 23, 2009 shares
Organization (Textual) [Abstract]
Number of operating segments \| Segment	3
Outstanding stock percentage	48.20%
Stock ownership percentage owned by third party	51.80%
Voting power percentage of outstanding common stock	66.67%
Percentage of share in results of pooled business owned by third party	20.00%
Subsidiaries [Member]
Organization (Additional Textual) [Abstract]
Percentage of share in results of pooled business	80.00%
Common Class A [Member]
Organization (Additional Textual) [Abstract]
Stock ownership percentage held by major shareholder	39.00%
Number of common stock shares purchased			300,000
Common stock shares purchased	228,992	115,257
Common Class A [Member] \| Subsidiaries [Member]
Organization (Additional Textual) [Abstract]
Common stock shares purchased	92,364
Common Class B [Member]
Organization (Additional Textual) [Abstract]
Stock ownership percentage held by major shareholder	76.00%

Basis of Presentation (Details) $ in Millions	3 Months Ended
Basis of Presentation (Details) $ in Millions	Jun. 30, 2012 USD ($)
Basis of Presentation (Textual) [Abstract]
Reclassified retained earnings related to an immaterial error	$ 1.8

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Common Class A [Member]
Numerator:
Allocation of net income	$ 5,465	$ 662	$ 13,478	$ 1,078
Denominator:
Weighted-average shares outstanding	20,041,620	19,976,954	20,026,652	20,005,149
Basic net income per share	$ 0.27	$ 0.03	$ 0.67	$ 0.05
Numerator:
Allocation of net income	$ 5,465	$ 662	$ 13,478	$ 1,078
Denominator:
Number of shares used in basic computation	20,041,620	19,976,954	20,026,652	20,005,149
Weighted-average shares effect of dilutive securities
Add: Director and employee stock options	268,476		310,117
Number of shares used in per share computations	20,310,096	19,976,954	20,336,769	20,005,149
Diluted net income per share	$ 0.27	$ 0.03	$ 0.66	$ 0.05
Common Class B [Member]
Numerator:
Allocation of net income	$ 1,374	$ 158	$ 3,395	$ 254
Denominator:
Weighted-average shares outstanding	5,576,775	5,576,775	5,576,775	5,576,775
Basic net income per share	$ 0.25	$ 0.03	$ 0.61	$ 0.05
Numerator:
Allocation of net income	$ 1,374	$ 158	$ 3,395	$ 254
Denominator:
Number of shares used in basic computation	5,576,775	5,576,775	5,576,775	5,576,775
Weighted-average shares effect of dilutive securities
Number of shares used in per share computations	5,576,775	5,576,775	5,576,775	5,576,775
Diluted net income per share	$ 0.25	$ 0.03	$ 0.61	$ 0.05

Earnings Per Share (Details 1) - shares	3 Months Ended		9 Months Ended
Earnings Per Share (Details 1) - shares	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Basic and diluted net income per share
Number of shares excluded	1,222,000	6,332,167	1,219,000	6,332,167

- Definition

Securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic earnings per share (EPS) or earnings per unit (EPU) in the future that were not included in the computation of diluted EPS or EPU because to do so would increase EPS or EPU amounts or decrease loss per share or unit amounts for the period presented.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Antidilution
-URI http://asc.fasb.org/extlink&oid=6505113

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Diluted Earnings Per Share
-URI http://asc.fasb.org/extlink&oid=6510752

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Contingent Stock Agreement
-URI http://asc.fasb.org/extlink&oid=6508534

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 40
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 13, 14
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 07-4
-Paragraph 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 171
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Earnings Per Share (Details Textual)	9 Months Ended
Earnings Per Share (Details Textual)	Sep. 30, 2012
Common Class A [Member]
Earnings Per Share (Textual) [Abstract]
Common stock payable interest rate	10.00%

Reinsurance (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
Reinsurance (Details) - USD ($) $ in Millions	Sep. 30, 2012	Dec. 31, 2011
Reinsurance (Additional Textual) [Abstract]
Excess of loss reinsured under an agreement	$ 1.0
Reinsurance (Textual) [Abstract]
Percentage of share in results of pooled business subsidiary	80.00%
Percentage of share in results of pooled business owned by third party	20.00%
Quota share reinsurance percentage		50.00%
Donegal Mutual [Member]
Reinsurance (Additional Textual) [Abstract]
Portion of premiums and losses related to personal lines products	100.00%
Minimum [Member]
Reinsurance (Additional Textual) [Abstract]
Percentage of accumulation of losses	90.00%
Maximum amount of loss coverage under reinsurance agreement of property catastrophe	$ 130.0
Quota share reinsurance reduced percentage	40.00%
Maximum [Member]
Reinsurance (Additional Textual) [Abstract]
Percentage of accumulation of losses	100.00%
Maximum amount of loss coverage under reinsurance agreement of property catastrophe	$ 145.0
Quota share reinsurance reduced percentage	50.00%
Catastrophe Reinsurance [Member]
Reinsurance (Additional Textual) [Abstract]
Excess of loss reinsured under an agreement	$ 5.0

Investments (Details) - USD ($)	Sep. 30, 2012	Dec. 31, 2011
Held to Maturity
Held to maturity, amortized cost	$ 43,888,265	$ 58,489,619
Held to Maturity, Gross Unrealized Gains	2,060,000	2,933,000
Held to Maturity, Gross Unrealized Losses		1,000
Total Held to Maturity, Estimated Fair Value	45,948,000	61,422,000
Available for Sale
Available for Sale, Amortized Cost	646,350,000	621,538,000
Available for Sale, Gross Unrealized Gains	44,075,000	33,516,000
Available for Sale, Gross Unrealized Losses	363,000	1,018,000
Available for Sale, Estimated Fair Value	690,062,000	654,036,000
U.S. Treasury securities and obligations of U.S. government corporations and agencies [Member]
Held to Maturity
Held to maturity, amortized cost	1,000,000	1,000,000
Held to Maturity, Gross Unrealized Gains	23,000	54,000
Held to Maturity, Gross Unrealized Losses
Total Held to Maturity, Estimated Fair Value	1,023,000	1,054,000
Available for Sale
Available for Sale, Amortized Cost	75,426,000	59,432,000
Available for Sale, Gross Unrealized Gains	1,557,000	1,546,000
Available for Sale, Gross Unrealized Losses	11,000
Available for Sale, Estimated Fair Value	76,972,000	60,978,000
Obligations of states and political subdivisions [Member]
Held to Maturity
Held to maturity, amortized cost	42,437,000	56,966,000
Held to Maturity, Gross Unrealized Gains	2,020,000	2,857,000
Held to Maturity, Gross Unrealized Losses
Total Held to Maturity, Estimated Fair Value	44,457,000	59,823,000
Available for Sale
Available for Sale, Amortized Cost	378,337,000	372,663,000
Available for Sale, Gross Unrealized Gains	34,297,000	26,252,000
Available for Sale, Gross Unrealized Losses	62,000	39,000
Available for Sale, Estimated Fair Value	412,572,000	398,876,000
Corporate securities [Member]
Held to Maturity
Held to maturity, amortized cost	250,000	250,000
Held to Maturity, Gross Unrealized Gains	1,000	3,000
Held to Maturity, Gross Unrealized Losses
Total Held to Maturity, Estimated Fair Value	251,000	253,000
Available for Sale
Available for Sale, Amortized Cost	70,680,000	62,837,000
Available for Sale, Gross Unrealized Gains	3,735,000	1,805,000
Available for Sale, Gross Unrealized Losses	162,000	528,000
Available for Sale, Estimated Fair Value	74,253,000	64,114,000
Residential mortgage-backed securities [Member]
Held to Maturity
Held to maturity, amortized cost	201,000	274,000
Held to Maturity, Gross Unrealized Gains	16,000	19,000
Held to Maturity, Gross Unrealized Losses		1,000
Total Held to Maturity, Estimated Fair Value	217,000	292,000
Available for Sale
Available for Sale, Amortized Cost	119,445,000	119,367,000
Available for Sale, Gross Unrealized Gains	4,342,000	3,307,000
Available for Sale, Gross Unrealized Losses	105,000	44,000
Available for Sale, Estimated Fair Value	123,682,000	122,630,000
Fixed maturities [Member]
Available for Sale
Available for Sale, Amortized Cost	643,888,000	614,299,000
Available for Sale, Gross Unrealized Gains	43,931,000	32,910,000
Available for Sale, Gross Unrealized Losses	340,000	611,000
Available for Sale, Estimated Fair Value	687,479,000	646,598,000
Equity securities [Member]
Available for Sale
Available for Sale, Amortized Cost	2,462,000	7,239,000
Available for Sale, Gross Unrealized Gains	144,000	606,000
Available for Sale, Gross Unrealized Losses	23,000	407,000
Available for Sale, Estimated Fair Value	$ 2,583,000	$ 7,438,000

Investments (Details 1) - USD ($)	Sep. 30, 2012	Dec. 31, 2011
Held to Maturity
Due in one year or less, Amortized Cost	$ 1,500,000
Due after one year through five years, Amortized Cost	33,069,000
Due after five years through ten years, Amortized Cost	9,118,000
Due after ten years, Amortized Cost
Residential mortgage-backed securities, Amortized Cost	201,000
Total held to maturity, Amortized Cost	43,888,265	$ 58,489,619
Due in one year or less, Estimated Fair Value	1,524,000
Due after one year through five years, Estimated Fair Value	34,535,000
Due after five years through ten years, Estimated Fair Value	9,672,000
Due after ten years, Estimated Fair Value
Residential mortgage-backed securities, Estimated Fair Value	217,000
Total Held to Maturity, Estimated Fair Value	45,948,000	61,422,000
Available for sale
Due in one year or less, Amortized Cost	15,257,000
Due after one year through five years, Amortized Cost	62,479,000
Due after five years through ten years, Amortized Cost	190,144,000
Due after ten years, Amortized Cost	256,563,000
Residential mortgage-backed securities, Amortized Cost	119,445,000
Total available for sale securities, Amortized Cost	643,888,000
Due in one year or less, Estimated Fair Value	15,390,000
Due after one year through five years, Estimated Fair Value	64,884,000
Due after five years through ten years, Estimated Fair Value	203,214,000
Due after ten years, Estimated Fair Value	280,309,000
Residential mortgage-backed securities, Estimated Fair Value	123,682,000
Total available for sale, Estimated Fair Value	$ 687,478,911	$ 646,598,178

Investments (Details 2) - USD ($)	3 Months Ended		9 Months Ended
Investments (Details 2) - USD ($)	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Summary of gross realized gains and losses from investments before applicable income taxes
Gross realized gains	$ 1,464,000	$ 3,593,000	$ 5,947,000	$ 8,539,000
Gross realized losses	152,000	1,134,000	797,000	1,391,000
Net realized investment gains	1,312,137	2,458,609	5,150,450	7,147,703
Fixed maturities [Member]
Summary of gross realized gains and losses from investments before applicable income taxes
Gross realized gains	1,249,000	3,464,000	4,944,000	3,905,000
Gross realized losses	36,000	61,000	42,000	163,000
Equity securities [Member]
Summary of gross realized gains and losses from investments before applicable income taxes
Gross realized gains	215,000	129,000	1,003,000	4,634,000
Gross realized losses	$ 116,000	$ 1,073,000	$ 755,000	$ 1,228,000

Investments (Details 3) - USD ($) $ in Thousands	Sep. 30, 2012	Dec. 31, 2011
Summary of fixed maturities and equity securities with unrealized losses
Less than 12 months, Fair Value	$ 21,878	$ 23,235
Less than 12 months, Unrealized Losses	226	997
More than 12 months, Fair Value	1,857	541
More than 12 months, Unrealized Losses	137	21
U.S. Treasury securities and obligations of U.S. government corporations and agencies [Member]
Summary of fixed maturities and equity securities with unrealized losses
Less than 12 months, Fair Value	1,771
Less than 12 months, Unrealized Losses	11
More than 12 months, Fair Value
More than 12 months, Unrealized Losses
Obligations of states and political subdivisions [Member]
Summary of fixed maturities and equity securities with unrealized losses
Less than 12 months, Fair Value	3,547	1,638
Less than 12 months, Unrealized Losses	62	17
More than 12 months, Fair Value		540
More than 12 months, Unrealized Losses		21
Corporate securities [Member]
Summary of fixed maturities and equity securities with unrealized losses
Less than 12 months, Fair Value	3,665	10,101
Less than 12 months, Unrealized Losses	25	528
More than 12 months, Fair Value	1,851
More than 12 months, Unrealized Losses	137
Residential mortgage-backed securities [Member]
Summary of fixed maturities and equity securities with unrealized losses
Less than 12 months, Fair Value	12,359	7,412
Less than 12 months, Unrealized Losses	105	44
More than 12 months, Fair Value	6	1
More than 12 months, Unrealized Losses
Equity securities [Member]
Summary of fixed maturities and equity securities with unrealized losses
Less than 12 months, Fair Value	536	4,084
Less than 12 months, Unrealized Losses	23	$ 408
More than 12 months, Fair Value
More than 12 months, Unrealized Losses

Investments (Details 4) - Donegal Financial Services Corporation [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011
Balance sheets:
Total assets	$ 504,551		$ 504,551		$ 532,938
Total liabilities	429,538		429,538		466,940
Stockholders equity	75,013		75,013		65,998
Total liabilities and stockholders equity	504,551		504,551		$ 532,938
Income statements:
Net income	$ 2,771	$ 2,129	$ 7,510	$ 2,830

- Definition

The amount of assets reported by an equity method investment of the entity.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6382943&loc=d3e33918-111571

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(g))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
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-URI http://asc.fasb.org/extlink&oid=6382943&loc=d3e33912-111571

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph w
-Article 1

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 18
-Paragraph 20
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph bb
-Article 1

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 18
-Subparagraph f
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph g
-Subparagraph 1, 2
-Article 4

+ Details

- Definition

The amount of liabilities reported by an equity method investment of the entity.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
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-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(g))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 18
-Paragraph 20
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph g
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

The amount of liabilities and equity reported by an equity method investment of the entity.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
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-URI http://asc.fasb.org/extlink&oid=6382943&loc=d3e33912-111571

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-Name Statement of Financial Accounting Standard (FAS)
-Number 159
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-Name Accounting Principles Board Opinion (APB)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

The amount of net income (loss) reported by an equity method investment of the entity.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
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-Subparagraph (c)
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-Name Regulation S-X (SX)
-Number 210
-Section 02
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
-Number 159
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph g
-Subparagraph 1, 2
-Article 4

+ Details

Investments (Details Textual)	9 Months Ended	12 Months Ended
Investments (Details Textual)	Sep. 30, 2012 USD ($) Securities	Dec. 31, 2011 USD ($) Securities
Investments (Textual) [Abstract]
Percentage of which the company held security of any issuer	10.00%	10.00%
Number of fixed maturity securities classified as available for sale \| Securities	14	19
Fair value of fixed maturity securities classified as available for sale	$ 23,200,000	$ 19,700,000
Unrealized loss of fixed maturity securities classified as available for sale	$ 340,143	610,646
Percentage decrease in value of individual equity security to assume other than temporary decline in value	20.00%
Time period for which individual security should be in unrealized position of twenty percentage or more to assume it as other than temporary decline	More than six months
Number of securities in unrealized loss position \| Securities	2
Percentage of ownership interest	48.20%
General obligation bonds [Member] \| Obligations of states and political subdivisions [Member]
Schedule of Investments [Line Items]
Aggregate fair value of bond held	$ 360,400,000	372,200,000
Amortized cost of bond held	331,900,000	348,400,000
Special revenue bond [Member]
Schedule of Investments [Line Items]
Aggregate fair value of bond held	96,600,000	86,500,000
Amortized cost of bond held	$ 88,900,000	$ 81,000,000
Education bonds [Member]
Schedule of Investments [Line Items]
Percentage of investments in special revenue bonds	50.00%	59.00%
Water and sewer utility bonds [Member]
Schedule of Investments [Line Items]
Percentage of investments in special revenue bonds	19.00%	17.00%

Segment Information (Details) - USD ($)	3 Months Ended		9 Months Ended
Segment Information (Details) - USD ($)	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Revenues:
Net premiums earned	$ 120,916,960	$ 108,506,809	$ 353,177,873	$ 317,293,489
GAAP adjustments		(417,000)	(5,000)	(3,206,000)
GAAP premiums earned	120,917,000	108,507,000	353,178,000	317,293,000
Net investment income	4,715,295	5,041,568	14,724,305	15,692,704
Realized investment gains	1,312,137	2,458,609	5,150,450	7,147,703
Other	3,488,000	3,157,000	10,027,000	7,668,000
Total revenues	130,431,531	119,164,471	383,078,883	347,802,411
Underwriting income (loss):
SAP underwriting loss	(1,473,000)	(15,405,000)	(11,727,000)	(32,789,000)
GAAP adjustments	1,888,000	1,708,000	6,408,000	2,138,000
GAAP underwriting income (loss)	415,000	(13,697,000)	(5,319,000)	(30,651,000)
Net investment income	4,715,000	5,042,000	14,724,000	15,693,000
Realized investment gains	1,312,137	2,458,609	5,150,450	7,147,703
Other	2,431,000	2,137,000	6,281,000	4,276,000
Income (loss) before income taxes	8,872,682	(4,058,468)	20,835,498	(3,533,932)
Commercial Lines [Member]
Revenues:
Net premiums earned	44,921,000	37,948,000	128,704,000	109,891,000
Underwriting income (loss):
GAAP underwriting income (loss)	2,507,000	(1,617,000)	4,827,000	(1,189,000)
Personal Lines [Member]
Revenues:
Net premiums earned	75,996,000	70,976,000	224,479,000	210,608,000
Underwriting income (loss):
GAAP underwriting income (loss)	$ (3,980,000)	$ (13,788,000)	$ (16,554,000)	$ (31,600,000)

Borrowings (Details) - MICO [Member] - Line of Credit [Member]	Sep. 30, 2012 USD ($)
Federal Home Loan Bank Stock and Federal Reserve Bank Stock
FHLB stock purchased	$ 252,100
Collateral pledged at par	4,450,000
Revolving line of credit	$ 3,522,000

Borrowings (Details Textual) - USD ($)	1 Months Ended		9 Months Ended
Borrowings (Details Textual) - USD ($)	May 31, 2004	Oct. 31, 2003	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2011	Dec. 31, 2010	Dec. 01, 2010
Line of Credit Facility [Line Items]
Debt instrument, description			On October 29, 2003, we received $10.0 million in net proceeds from the issuance of subordinated debentures. The debentures mature on October 29, 2033 and may be called at our option, at par. The debentures carry an interest rate equal to the three-month LIBOR rate plus 3.85%, which is adjustable quarterly. At September 30, 2012, the interest rate on these debentures was 4.30% and was adjusted to 4.16% on October 29, 2012
Debentures, interest rate related to Libor rate description			interest rate equal to the three-month LIBOR rate plus 3.85%
Borrowings (Textual) [Abstract]
Revolving credit facility, borrowing interest rate			The credit agreement requires our compliance with certain covenants, which include minimum levels of our net worth, leverage ratio and statutory surplus and the A.M. Best ratings of our insurance subsidiaries. With the exception of a requirement that we maintain a minimum interest coverage ratio, we complied with all the requirements of the credit agreement during the year ended December 31, 2011
Percentage commitment fee			0.20%
Revolving line of credit expiration date			Oct. 29, 2033
Debentures mature date			May 24, 2034
Line of Credit [Member]
Line of Credit Facility [Line Items]
Line of credit, interest rate related to Libor rate description			interest rates equal to M&T’s current prime rate or the then current LIBOR rate plus 2.25%.
Line of credit facility remaining borrowing capacity			$ 11,500,000
Interest rate on borrowings			2.46%
Outstanding borrowings			$ 48,500,000
Line of credit that expires date			2015-07
Subordinated Debentures [Member]
Line of Credit Facility [Line Items]
Debt Instrument basis spread on variable rate							5.00%
Net proceeds from the issuance of subordinated debentures	$ 5,000,000	$ 10,000,000
Subordinated Debentures [Member] \| Subordinated Debentures [Member]
Line of Credit Facility [Line Items]
Debt instrument interest rate effective percentage			3.85%
Three-month LIBOR rate plus 3.85% [Member] \| Subordinated Debentures [Member]
Line of Credit Facility [Line Items]
Debt instrument interest rate effective percentage			3.85%
Subordinated Debentures 2034 [Member]
Line of Credit Facility [Line Items]
Debt instrument interest rate effective percentage			4.16%
Debt instrument interest rate			4.30%
Subordinated Debentures 2034 [Member] \| Subordinated Debentures [Member]
Line of Credit Facility [Line Items]
Debt instrument interest rate			4.28%
Manufacturers and Traders Trust Company [Member] \| Line of Credit [Member]
Line of Credit Facility [Line Items]
Right to request for extension of credit agreement with Manufacturers and Traders Trust Company				$ 60,000,000
Michigan [Member] \| Line of Credit [Member]
Line of Credit Facility [Line Items]
Borrowings					$ 3,500,000	$ 35,000,000
Union National Financial Corporation [Member] \| Line of Credit [Member]
Line of Credit Facility [Line Items]
Right to request for extension of credit agreement			$ 19,000,000
West Bend Mutual Insurance Company [Member] \| Subordinated Debentures [Member]
Line of Credit Facility [Line Items]
Purchase of surplus note			5,000,000
MICO [Member] \| Line of Credit [Member]
Line of Credit Facility [Line Items]
Right to request for extension of credit agreement with Manufacturers and Traders Trust Company			3,522,000
Collateral Pledged at carrying value			3,067,600
Debt issued to FHLB in exchange of advance cash			$ 1,200,000
Variable interest rate on advances			0.51%
Maximum [Member]
Line of Credit Facility [Line Items]
Debt instrument interest rate effective percentage			2.25%

Share-Based Compensation (Details) - USD ($)	3 Months Ended		9 Months Ended
Share-Based Compensation (Details) - USD ($)	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Share-Based Compensation (Textual) [Abstract]
Compensation expenses in stock compensation plans	$ 121,189	$ 95,528	$ 360,915	$ 165,014
Income tax benefit of stock compensation plans	42,416	32,480	126,320	56,105
Unrecognized compensation cost related to nonvested share-based compensation	568,748		$ 568,748
Weighted average period of unrecognized compensation cost			7 years 3 months 18 days
Implied dividends	22,714	2,200,000	$ 40,726	2,300,000
Cash from stock option exercise	187,025	0	1,000,000	0
Tax benefit for tax deductions from option exercise	$ 10,475	$ 0	$ 49,517	$ 0

Income Taxes (Details Textual) - USD ($)	9 Months Ended
Income Taxes (Details Textual) - USD ($)	Sep. 30, 2012	Dec. 31, 2011
Income Taxes (Textual) [Abstract]
Operating loss carryforwards	$ 6,300,000
Operating loss carryforwards expiration period	2031
Income Taxes (Additional Textual) [Abstract]
Deferred tax asset, net	$ 2,431,511	$ 9,919,720
Material unrecognized tax benefits	0	$ 0
Le Mars [Member]
Income Taxes (Textual) [Abstract]
Operating loss carryforwards	5,100,000
Operating loss carryforwards annual limitations in amount on use	376,000
Valuation allowance related to the portion of operating loss carryforwards	$ 440,778
Operating loss carryforwards expiration period	2012

- Definition

The portion of the valuation allowance pertaining to the deferred tax asset representing potential future taxable deductions from net operating loss carryforwards for which it is more likely than not that a tax benefit will not be realized.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 30
-Paragraph 5
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=6907311&loc=d3e30536-109315

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 48
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 43
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 17
-Subparagraph e
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Fair Value Measurements (Details) - USD ($) $ in Thousands	Sep. 30, 2012	Dec. 31, 2011
Fair value measurements for investments in available-for-sale fixed maturity and equity securities
Available-for-sale Securities, Fair Value Disclosure	$ 690,062	$ 654,036
Assets and liabilities on recurring basis [Member]
Fair value measurements for investments in available-for-sale fixed maturity and equity securities
Available-for-sale Securities, Fair Value Disclosure	690,062	654,036
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] \| Assets and liabilities on recurring basis [Member]
Fair value measurements for investments in available-for-sale fixed maturity and equity securities
Available-for-sale Securities, Fair Value Disclosure	1,127	6,178
Significant Other Observable Inputs (Level 2) [Member] \| Assets and liabilities on recurring basis [Member]
Fair value measurements for investments in available-for-sale fixed maturity and equity securities
Available-for-sale Securities, Fair Value Disclosure	688,935	647,858
Significant Unobservable Inputs (Level 3) [Member] \| Assets and liabilities on recurring basis [Member]
Fair value measurements for investments in available-for-sale fixed maturity and equity securities
Available-for-sale Securities, Fair Value Disclosure
U.S. Treasury securities and obligations of U.S. government corporations and agencies [Member] \| Assets and liabilities on recurring basis [Member]
Fair value measurements for investments in available-for-sale fixed maturity and equity securities
Available-for-sale Securities, Fair Value Disclosure	76,972	60,978
U.S. Treasury securities and obligations of U.S. government corporations and agencies [Member] \| Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] \| Assets and liabilities on recurring basis [Member]
Fair value measurements for investments in available-for-sale fixed maturity and equity securities
Available-for-sale Securities, Fair Value Disclosure
U.S. Treasury securities and obligations of U.S. government corporations and agencies [Member] \| Significant Other Observable Inputs (Level 2) [Member] \| Assets and liabilities on recurring basis [Member]
Fair value measurements for investments in available-for-sale fixed maturity and equity securities
Available-for-sale Securities, Fair Value Disclosure	76,972	60,978
U.S. Treasury securities and obligations of U.S. government corporations and agencies [Member] \| Significant Unobservable Inputs (Level 3) [Member] \| Assets and liabilities on recurring basis [Member]
Fair value measurements for investments in available-for-sale fixed maturity and equity securities
Available-for-sale Securities, Fair Value Disclosure
Obligations of states and political subdivisions [Member] \| Assets and liabilities on recurring basis [Member]
Fair value measurements for investments in available-for-sale fixed maturity and equity securities
Available-for-sale Securities, Fair Value Disclosure	412,572	398,877
Obligations of states and political subdivisions [Member] \| Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] \| Assets and liabilities on recurring basis [Member]
Fair value measurements for investments in available-for-sale fixed maturity and equity securities
Available-for-sale Securities, Fair Value Disclosure
Obligations of states and political subdivisions [Member] \| Significant Other Observable Inputs (Level 2) [Member] \| Assets and liabilities on recurring basis [Member]
Fair value measurements for investments in available-for-sale fixed maturity and equity securities
Available-for-sale Securities, Fair Value Disclosure	412,572	398,877
Obligations of states and political subdivisions [Member] \| Significant Unobservable Inputs (Level 3) [Member] \| Assets and liabilities on recurring basis [Member]
Fair value measurements for investments in available-for-sale fixed maturity and equity securities
Available-for-sale Securities, Fair Value Disclosure
Corporate securities [Member] \| Assets and liabilities on recurring basis [Member]
Fair value measurements for investments in available-for-sale fixed maturity and equity securities
Available-for-sale Securities, Fair Value Disclosure	74,253	64,114
Corporate securities [Member] \| Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] \| Assets and liabilities on recurring basis [Member]
Fair value measurements for investments in available-for-sale fixed maturity and equity securities
Available-for-sale Securities, Fair Value Disclosure
Corporate securities [Member] \| Significant Other Observable Inputs (Level 2) [Member] \| Assets and liabilities on recurring basis [Member]
Fair value measurements for investments in available-for-sale fixed maturity and equity securities
Available-for-sale Securities, Fair Value Disclosure	74,253	64,114
Corporate securities [Member] \| Significant Unobservable Inputs (Level 3) [Member] \| Assets and liabilities on recurring basis [Member]
Fair value measurements for investments in available-for-sale fixed maturity and equity securities
Available-for-sale Securities, Fair Value Disclosure
Residential mortgage-backed securities [Member] \| Assets and liabilities on recurring basis [Member]
Fair value measurements for investments in available-for-sale fixed maturity and equity securities
Available-for-sale Securities, Fair Value Disclosure	123,682	122,630
Residential mortgage-backed securities [Member] \| Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] \| Assets and liabilities on recurring basis [Member]
Fair value measurements for investments in available-for-sale fixed maturity and equity securities
Available-for-sale Securities, Fair Value Disclosure
Residential mortgage-backed securities [Member] \| Significant Other Observable Inputs (Level 2) [Member] \| Assets and liabilities on recurring basis [Member]
Fair value measurements for investments in available-for-sale fixed maturity and equity securities
Available-for-sale Securities, Fair Value Disclosure	123,682	122,630
Residential mortgage-backed securities [Member] \| Significant Unobservable Inputs (Level 3) [Member] \| Assets and liabilities on recurring basis [Member]
Fair value measurements for investments in available-for-sale fixed maturity and equity securities
Available-for-sale Securities, Fair Value Disclosure
Equity securities [Member] \| Assets and liabilities on recurring basis [Member]
Fair value measurements for investments in available-for-sale fixed maturity and equity securities
Available-for-sale Securities, Fair Value Disclosure	2,583	7,437
Equity securities [Member] \| Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] \| Assets and liabilities on recurring basis [Member]
Fair value measurements for investments in available-for-sale fixed maturity and equity securities
Available-for-sale Securities, Fair Value Disclosure	1,127	6,178
Equity securities [Member] \| Significant Other Observable Inputs (Level 2) [Member] \| Assets and liabilities on recurring basis [Member]
Fair value measurements for investments in available-for-sale fixed maturity and equity securities
Available-for-sale Securities, Fair Value Disclosure	1,456	1,259
Equity securities [Member] \| Significant Unobservable Inputs (Level 3) [Member] \| Assets and liabilities on recurring basis [Member]
Fair value measurements for investments in available-for-sale fixed maturity and equity securities
Available-for-sale Securities, Fair Value Disclosure