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2012-01-01 2012-12-31 itic:state itic:segment iso4217:USD itic:item iso4217:USD xbrli:shares itic:item itic:security utr:H xbrli:pure iso4217:USD xbrli:shares false --12-31 FY 2012 2012-12-31 10-K 0000720858 2038968 Yes Smaller Reporting Company 88896707 INVESTORS TITLE CO No No 1108156 1037447 1108156 1108156 0 0 1037447 1037447 0 0 -75959 -75959 -54726 -54726 -39130 -28192 8394 8394 6648 6648 81936978 22549975 22549975 28510933 28510933 4939053 4939053 7373056 7373056 41823 41823 91237 91237 691250 P24M P24M 0.30 P27M 859000 <div> <div style="margin-left: 21pt; margin-right: 21pt;"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt; font-weight: bold;" class="_mt">16. </font><font style="display: inline; font-size: 9pt; font-weight: bold;" class="_mt">Business Concentration</font> </p> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;">&nbsp;</p> <p style="line-height: normal; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt"> </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">The Company generates a significant amount of title insurance premiums in </font><font style="display: inline; font-size: 9pt;" class="_mt">Texas</font><font style="display: inline; font-size: 9pt;" class="_mt"> and </font><font style="display: inline; font-size: 9pt;" class="_mt">North Carolina</font><font style="display: inline; font-size: 9pt;" class="_mt">. </font><font style="display: inline; font-size: 9pt;" class="_mt">In 201</font><font style="display: inline; font-size: 9pt;" class="_mt">2</font><font style="display: inline; font-size: 9pt;" class="_mt"> and 201</font><font style="display: inline; font-size: 9pt;" class="_mt">1</font><font style="display: inline; font-size: 9pt;" class="_mt">, </font><font style="display: inline; font-size: 9pt;" class="_mt">Texas</font><font style="display: inline; font-size: 9pt;" class="_mt"> accounted for </font><font class="_mt"><font style="display: inline; font-size: 9pt;" class="_mt">24.8</font></font><font style="display: inline; font-size: 9pt;" class="_mt">% and </font><font class="_mt"><font style="display: inline; font-size: 9pt;" class="_mt">32.2</font></font><font style="display: inline; font-size: 9pt;" class="_mt">% of total </font><font style="display: inline; font-size: 9pt;" class="_mt">title premiums, respectively. </font><font style="display: inline; font-size: 9pt;" class="_mt">In 201</font><font style="display: inline; font-size: 9pt;" class="_mt">2</font><font style="display: inline; font-size: 9pt;" class="_mt"> and 20</font><font style="display: inline; font-size: 9pt;" class="_mt">1</font><font style="display: inline; font-size: 9pt;" class="_mt">1</font><font style="display: inline; font-size: 9pt;" class="_mt">, </font><font style="display: inline; font-size: 9pt;" class="_mt">North Carolina</font><font style="display: inline; font-size: 9pt;" class="_mt"> accounted for </font><font style="display: inline; font-size: 9pt;" class="_mt"><font class="_mt"><font style="display: inline; font-size: 9pt;" class="_mt">30.5</font></font>%</font><font style="display: inline; font-size: 9pt;" class="_mt"> and </font><font class="_mt"><font style="display: inline; font-size: 9pt;" class="_mt">26.6</font></font><font style="display: inline; font-size: 9pt;" class="_mt">% of t</font><font style="display: inline; font-size: 9pt;" class="_mt">otal </font><font style="display: inline; font-size: 9pt;" class="_mt">title premiums, respectively.</font> </p> <p style="line-height: normal; text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt"> </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">In 201</font><font style="display: inline; font-size: 9pt;" class="_mt">2</font><font style="display: inline; font-size: 9pt;" class="_mt"> and 2011</font><font style="display: inline; font-size: 9pt;" class="_mt">, the Company had one agent that accounted for </font><font class="_mt"><font style="display: inline; font-size: 9pt;" class="_mt">14.0</font></font><font style="display: inline; font-size: 9pt;" class="_mt">% </font><font style="display: inline; font-size: 9pt;" class="_mt">and <font class="_mt">22.6</font>% </font><font style="display: inline; font-size: 9pt;" class="_mt">of net premiums written</font><font style="display: inline; font-size: 9pt;" class="_mt">, respectively</font><font style="display: inline; font-size: 9pt;" class="_mt">.</font> </p></div> </div> 1200000 3200000 20300000 18042258 18042258 0 0 20810018 20810018 0 0 12720 10076 15562000 11689000 291676 291676 0 36600 1210687 1778115 0.03 0.00 5000000 1000000 0.796 0.970 P2Y 113648 143184 0 2038 -969710 -730555 0.03 60962 64280 0 5010 3265 78530 86245 0 6591 4369 1000 P1Y <div> <p style="text-align: left;"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">7. Earnings Per Share and Stock Options</font></b></p> <p style="text-align: left;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Basic earnings per common share is computed by dividing net income attributable to the Company by the weighted-average number of common shares outstanding during the reporting period. Diluted earnings per common share is computed by dividing net income attributable to the Company by the combination of dilutive potential common stock, comprised of shares issuable under the Company's share-based compensation plans and the weighted-average number of common shares outstanding during the reporting period. Dilutive common share equivalents include the dilutive effect of in-the-money share-based awards, which are calculated based on the average share price for each period using the treasury stock method. Under the treasury stock method, when share-based awards are exercised, (a) the exercise price of a share-based award; (b) the amount of compensation cost, if any, for future service that the Company has not yet recognized; and (c) the amount of estimated tax benefits that would be recorded in additional paid-in capital, if any, are assumed to be used to repurchase shares in the current period. The incremental dilutive potential common shares, calculated using the treasury stock method were&nbsp;<font class="_mt">35,090</font> and&nbsp;<font class="_mt">18,286</font> for 2012 and 2011, respectively. The following table sets forth the computation of basic and diluted earnings per share for the years ended December 31:</font></p> <div> <table style="width: 814px; height: 197px;" border="0" cellspacing="0"> <tr><td width="69%"> </td> <td width="1%"> </td> <td width="13%"> </td> <td width="1%"> </td> <td width="12%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="69%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">For the Years Ended December 31,</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="13%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2012</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="12%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">2011</font></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="69%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Net income attributable to the Company</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">11,102,496</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">6,933,936</font></b></td></tr> <tr valign="bottom"><td width="69%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Weighted average common shares outstanding - Basic</font></td> <td width="1%" align="left">&nbsp;</td> <td width="13%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2,081,703</font></b></td> <td width="1%" align="left">&nbsp;</td> <td width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2,151,350</font></b></td></tr> <tr valign="bottom"><td width="69%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Incremental shares outstanding assuming</font></td> <td width="1%" align="left">&nbsp;</td> <td width="13%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="12%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="69%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">the exercise of dilutive stock options and SARs (share-settled)</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">35,090</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">18,286</font></b></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="69%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Weighted average common shares outstanding - Diluted</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2,116,793</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2,169,636</font></b></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="69%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Basic earnings per common share</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">5.33</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">3.22</font></b></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="69%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Diluted earnings per common share</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">5.24</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">3.20</font></b></td></tr></table></div> <p style="margin: 0px;">&nbsp;</p> <p style="text-align: left;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">In 2011,&nbsp;<font class="_mt">11,500</font> awards were excluded from the computation of diluted earnings per share because their exercise price was greater than the stock price and therefore considered anti-dilutive. There were&nbsp;<font class="_mt">no</font> potential shares excluded from the computation of diluted earnings per share in 2012.</font></p> <p style="text-align: left;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">The Company has adopted employee stock award plans (the "Plans") under which restricted stock, and options or stock appreciation rights ("SARs") to purchase shares (not to exceed&nbsp;<font class="_mt">500,000</font> shares) of the Company's stock, may be granted to key employees or directors of the Company at a price not less than the market value on the date of grant. SARs and options (which have predominantly been incentive stock options) awarded under the Plans thus far are exercisable and vest immediately or within one year or at <font class="_mt">10</font>% to <font class="_mt">20</font>% per year beginning on the date of grant and generally expire in five to ten years. All SARs issued to date have been share-settled only. No SARs were exercised in 2012 or 2011.</font></p> <div>&nbsp;</div><br /> <p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">A summary of share-based award transactions for all share-based award plans follows:</font></p> <div> <table border="0" cellspacing="0"> <tr><td width="32%"> </td> <td width="15%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="13%"> </td> <td width="16%"> </td> <td width="2%"> </td> <td width="13%"> </td></tr> <tr valign="bottom"><td align="left">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td style="text-indent: 1px;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Weighted</font></td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Average</font></td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td></tr> <tr valign="bottom"><td align="left">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td style="text-indent: 1px;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Average</font></td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Remaining</font></td> <td align="center">&nbsp;</td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Aggregate</font></td></tr> <tr valign="bottom"><td align="left">&nbsp;</td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Number</font></td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td style="text-indent: 1px;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Exercise</font></td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Contractual</font></td> <td align="center">&nbsp;</td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Intrinsic</font></td></tr> <tr valign="bottom"><td align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">of Shares</font></td> <td style="border-bottom: #000000 1px solid;" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Price</font></td> <td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Term (years)</font></td> <td style="border-bottom: #000000 1px solid;" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Value</font></td></tr> <tr valign="bottom"><td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Outstanding as of January 1, 2011</font></b></td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">110,800</font></b></td> <td style="border-bottom: #000000 1px solid;" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">28.77</font></b></td> <td style="border-bottom: #000000 1px solid; text-indent: 11px;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">4.51</font></b></td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">353,955</font></b></td></tr> <tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">SARs granted</font></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">3,000</font></b></td> <td align="left">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">41.50</font></b></td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td></tr> <tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Options exercised</font></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">(7,700</font></b></td> <td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></b></td> <td align="right">&nbsp;</td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">20.15</font></b></td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td></tr> <tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Options/SARs cancelled/forfeited/expired</font></td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">(4,500</font></b></td> <td style="border-bottom: #000000 1px solid;" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></b></td> <td style="border-bottom: #000000 1px solid;" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">28.61</font></b></td> <td style="border-bottom: #000000 1px solid;" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="right">&nbsp;</td></tr> <tr valign="bottom"><td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Outstanding as of December 31, 2011</font></b></td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">101,600</font></b></td> <td style="border-bottom: #000000 1px solid;" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">29.81</font></b></td> <td style="border-bottom: #000000 1px solid; text-indent: 11px;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">3.91</font></b></td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">697,780</font></b></td></tr> <tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">SARs granted</font></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">3,000</font></b></td> <td align="left">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">50.50</font></b></td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td></tr> <tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Options exercised</font></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">(6,380</font></b></td> <td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></b></td> <td align="right">&nbsp;</td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">25.17</font></b></td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td></tr> <tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Options/SARs cancelled/forfeited/expired</font></td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">(70</font></b></td> <td style="border-bottom: #000000 1px solid;" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></b></td> <td style="border-bottom: #000000 1px solid;" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">31.00</font></b></td> <td style="border-bottom: #000000 1px solid;" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="right">&nbsp;</td></tr> <tr valign="bottom"><td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Outstanding as of December 31, 2012</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">98,150</font></b></td> <td align="left">&nbsp;</td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">30.74</font></b></td> <td style="text-indent: 11px;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">3.17</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2,871,710</font></b></td></tr> <tr><td colspan="8">&nbsp;</td></tr> <tr valign="bottom"><td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Exercisable as of December 31, 2012</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">97,150</font></b></td> <td align="left">&nbsp;</td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">30.59</font></b></td> <td style="text-indent: 11px;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">3.15</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2,857,350</font></b></td></tr> <tr><td colspan="8">&nbsp;</td></tr> <tr valign="bottom"><td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Unvested as of December 31, 2012</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">1,000</font></b></td> <td align="left">&nbsp;</td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">45.64</font></b></td> <td style="text-indent: 11px;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">5.20</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">14,360</font></b></td></tr></table></div> <p style="margin: 0px;">&nbsp;</p> <p style="text-align: left;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company's common stock at December 31, 2012. The intrinsic values of options exercised during 2012 and 2011 were approximately $<font class="_mt">153,000</font> and $<font class="_mt">118,000</font>, respectively.</font></p> <p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">The following tables summarize information about fixed stock options outstanding at December 31, 2012:</font></p> <div> <div> <table border="0" cellspacing="0"> <tr><td width="2%"> </td> <td width="7%"> </td> <td width="3%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="15%"> </td> <td width="15%"> </td> <td width="3%"> </td> <td width="9%"> </td> <td width="16%"> </td> <td width="2%"> </td> <td width="9%"> </td></tr> <tr valign="bottom"><td align="right">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" colspan="3" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Options Outstanding at Year-End</font></td> <td style="border-bottom: #000000 1px solid;" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" colspan="3" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Options Exercisable at Year-End</font></td></tr> <tr valign="bottom"><td align="right">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Weighted</font></td> <td colspan="2" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Weighted</font></td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Weighted</font></td></tr> <tr valign="bottom"><td align="right">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Average</font></td> <td colspan="2" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Average</font></td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Average</font></td></tr> <tr valign="bottom"><td align="right">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Number</font></td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Remaining</font></td> <td colspan="2" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Exercise</font></td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Number</font></td> <td align="center">&nbsp;</td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Exercise</font></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" colspan="4" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Range of Exercise Prices</font></td> <td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Outstanding</font></td> <td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Contractual Life</font></td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Price</font></td> <td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Exercisable</font></td> <td style="border-bottom: #000000 1px solid;" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Price</font></td></tr> <tr valign="bottom"><td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">20.00</font></b></td> <td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">-</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">27.96</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2,400</font></b></td> <td style="text-indent: 13px;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0.76</font></b></td> <td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="text-indent: 3px;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">25.54</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2,400</font></b></td> <td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="text-indent: 7px;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">25.54</font></b></td></tr> <tr valign="bottom"><td align="right">&nbsp;</td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">27.98</font></b></td> <td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">-</font></b></td> <td align="right">&nbsp;</td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">31.99</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">750</font></b></td> <td style="text-indent: 13px;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">1.07</font></b></td> <td align="left">&nbsp;</td> <td style="text-indent: 3px;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">31.20</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">500</font></b></td> <td align="left">&nbsp;</td> <td style="text-indent: 6px;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">31.27</font></b></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">33.32</font></b></td> <td style="border-bottom: #000000 1px solid;" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">-</font></b></td> <td style="border-bottom: #000000 1px solid;" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">36.79</font></b></td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2,000</font></b></td> <td style="border-bottom: #000000 1px solid; text-indent: 13px;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2.38</font></b></td> <td style="border-bottom: #000000 1px solid;" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid; text-indent: 3px;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">36.79</font></b></td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2,000</font></b></td> <td style="border-bottom: #000000 1px solid;" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid; text-indent: 6px;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">36.79</font></b></td></tr> <tr valign="bottom"><td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">10.00</font></b></td> <td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">-</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">36.79</font></b></td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">5,150</font></b></td> <td style="text-indent: 13px;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">1.43</font></b></td> <td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="text-indent: 3px;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">30.73</font></b></td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">4,900</font></b></td> <td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="text-indent: 7px;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">30.72</font></b></td></tr></table></div> <p style="margin: 0px;">&nbsp;</p> <div> <table border="0" cellspacing="0"> <tr><td width="2%"> </td> <td width="7%"> </td> <td width="3%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="15%"> </td> <td width="15%"> </td> <td width="3%"> </td> <td width="10%"> </td> <td width="15%"> </td> <td width="2%"> </td> <td width="9%"> </td></tr> <tr valign="bottom"><td align="right">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" colspan="3" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">SARs Outstanding at Year-End</font></td> <td style="border-bottom: #000000 1px solid;" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" colspan="3" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">SARs Exercisable at Year-End</font></td></tr> <tr valign="bottom"><td align="right">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Weighted</font></td> <td colspan="2" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Weighted</font></td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Weighted</font></td></tr> <tr valign="bottom"><td align="right">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Average</font></td> <td colspan="2" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Average</font></td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Average</font></td></tr> <tr valign="bottom"><td align="right">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Number</font></td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Remaining</font></td> <td colspan="2" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Exercise</font></td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Number</font></td> <td align="center">&nbsp;</td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Exercise</font></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" colspan="4" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Range of Exercise Prices</font></td> <td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Outstanding</font></td> <td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Contractual Life</font></td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Price</font></td> <td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Exercisable</font></td> <td style="border-bottom: #000000 1px solid;" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Price</font></td></tr> <tr valign="bottom"><td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">27.97</font></b></td> <td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">-</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">27.97</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">75,000</font></b></td> <td style="text-indent: 13px;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">3.17</font></b></td> <td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="text-indent: 3px;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">27.97</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">75,000</font></b></td> <td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="text-indent: 7px;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">27.97</font></b></td></tr> <tr valign="bottom"><td align="right">&nbsp;</td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">32.00</font></b></td> <td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">-</font></b></td> <td align="right">&nbsp;</td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">32.00</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2,500</font></b></td> <td style="text-indent: 13px;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">3.39</font></b></td> <td align="left">&nbsp;</td> <td style="text-indent: 3px;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">32.00</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2,500</font></b></td> <td align="left">&nbsp;</td> <td style="text-indent: 6px;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">32.00</font></b></td></tr> <tr valign="bottom"><td align="right">&nbsp;</td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">33.31</font></b></td> <td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">-</font></b></td> <td align="right">&nbsp;</td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">33.31</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">3,000</font></b></td> <td style="text-indent: 13px;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">4.38</font></b></td> <td align="left">&nbsp;</td> <td style="text-indent: 3px;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">33.31</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">3,000</font></b></td> <td align="left">&nbsp;</td> <td style="text-indent: 6px;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">33.31</font></b></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">36.80</font></b></td> <td style="border-bottom: #000000 1px solid;" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">-</font></b></td> <td style="border-bottom: #000000 1px solid;" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">58.59</font></b></td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">12,500</font></b></td> <td style="border-bottom: #000000 1px solid; text-indent: 13px;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">3.58</font></b></td> <td style="border-bottom: #000000 1px solid;" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid; text-indent: 3px;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">46.51</font></b></td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">11,750</font></b></td> <td style="border-bottom: #000000 1px solid;" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid; text-indent: 6px;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">46.25</font></b></td></tr> <tr valign="bottom"><td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">27.97</font></b></td> <td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">-</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">49.04</font></b></td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">93,000</font></b></td> <td style="text-indent: 13px;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">3.27</font></b></td> <td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="text-indent: 3px;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">30.74</font></b></td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">92,250</font></b></td> <td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="text-indent: 7px;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">30.58</font></b></td></tr></table></div></div> <p style="margin: 0px;">&nbsp;</p> <p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">In 2012,&nbsp;<font class="_mt">3,900</font> options and SARs vested with a fair value of $<font class="_mt">64,700</font>.</font></p> <p style="text-align: left;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">During both the second quarters of 2012 and 2011, the Company issued&nbsp;<font class="_mt">3,000</font> share-settled SARs to the directors of the Company. SARs give the holder the right to receive stock equal to the appreciation in the value of shares of stock from the grant date for a specified period of time, and as a result, are accounted for as equity instruments. As such, the SARs were valued using the Black-Scholes option valuation model. The fair value of each award is estimated on the date of grant using the Black-Scholes option valuation model with the weighted-average assumptions noted in the following table. Expected volatilities are based on both the implied and historical volatility of the Company's stock. The Company uses historical data to project SAR exercises and pre-exercise forfeitures within the valuation model. The expected term of awards represents the period of time that SARs granted are expected to be outstanding. The interest rate for periods during the expected life of the award is based on the U.S. Treasury yield curve in effect at the time of the grant. The weighted-average fair values per share-settled SAR issued during 2012 and 2011 were $<font class="_mt">18.84</font> and $<font class="_mt">15.55</font>, respectively, and were estimated using the following weighted-average assumptions:</font></p> <div>&nbsp;</div><br /> <div> <table border="0" cellspacing="0"> <tr><td width="38%"> </td> <td width="28%"> </td> <td width="4%"> </td> <td width="25%"> </td> <td width="4%"> </td></tr> <tr valign="bottom"><td width="38%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="28%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2012</font></b></td> <td style="border-bottom: #000000 1px solid;" width="4%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="25%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">2011</font></td> <td style="border-bottom: #000000 1px solid;" width="4%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td width="38%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Expected Life in Years</font></td> <td width="28%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">5.0</font></b></td> <td width="4%" align="left">&nbsp;</td> <td width="25%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">5.0</font></td> <td width="4%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td width="38%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Volatility</font></td> <td width="28%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">44.6</font></b></td> <td width="4%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">%</font></b></td> <td width="25%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">43.6</font></td> <td width="4%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">%</font></td></tr> <tr valign="bottom"><td width="38%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Interest Rate</font></td> <td width="28%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0.8</font></b></td> <td width="4%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">%</font></b></td> <td width="25%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">1.9</font></td> <td width="4%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">%</font></td></tr> <tr valign="bottom"><td width="38%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Yield Rate</font></td> <td width="28%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0.6</font></b></td> <td width="4%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">%</font></b></td> <td width="25%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0.8</font></td> <td width="4%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">%</font></td></tr></table></div> <p style="margin: 0px;">&nbsp;</p> <p style="text-align: left;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">There was approximately $<font class="_mt">75,000</font> and $<font class="_mt">214,000</font> of compensation expense relating to shares vesting on or before December 31, 2012 and December 31, 2011, respectively, included in salaries, employee benefits and payroll taxes in the Consolidated Statements of Income. As of December 31, 2012, there was approximately $<font class="_mt">24,000</font> of total unrecognized compensation cost related to unvested share-based compensation arrangements granted under the Company's stock awards plans. That cost is expected to be recognized over a weighted-average period of approximately 4 months.</font></p> <p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">The estimated weighted-average grant-date fair value of SARs granted for the years ended December 31 was as follows:</font></p> <div> <table border="0" cellspacing="0"> <tr><td width="54%"> </td> <td width="3%"> </td> <td width="20%"> </td> <td width="3%"> </td> <td width="19%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="54%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">For the Years Ended December 31,</font></b></td> <td style="border-bottom: #000000 1px solid;" width="3%" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="20%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2012</font></b></td> <td style="border-bottom: #000000 1px solid;" width="3%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="19%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">2011</font></td></tr> <tr valign="bottom"><td width="54%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Exercise price equal to market price on date of grant:</font></td> <td width="3%" align="right">&nbsp;</td> <td width="20%" align="left">&nbsp;</td> <td width="3%" align="right">&nbsp;</td> <td width="19%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 1px;" width="54%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Weighted-average market price</font></td> <td width="3%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="text-indent: 1px;" width="20%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">50.50</font></b></td> <td width="3%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="text-indent: 1px;" width="19%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">41.50</font></td></tr> <tr valign="bottom"><td style="text-indent: 1px;" width="54%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Weighted-average grant-date fair value</font></td> <td width="3%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="text-indent: 1px;" width="20%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">18.84</font></b></td> <td width="3%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="text-indent: 1px;" width="19%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">15.55</font></td></tr></table></div> <p style="margin: 0px;">&nbsp;</p> <p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">There are no stock options or SARs granted where the exercise price is less than the market price on the date of grant.</font></p> </div> <div> <div> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="font-style: italic; display: inline; font-size: 9pt; font-weight: bold;" class="_mt">Exchange Services Revenue</font> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Fees are recognized at the signing of a binding agreement and investment earnings are recognized as they are earned.</font> </p></div> </div> Yes Yes Yes Yes Fair Value Fair Value Fair Value Fair Value 43199 211061 101861 0 516380 846168 20454301 23718780 691250 -37192 537482 <div> <p style="text-align: left;"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">3. Investments in Securities and Fair Value</font></b></p> <p style="text-align: left;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">The aggregate fair value, gross unrealized holding gains, gross unrealized holding losses, and amortized cost for securities by major security type at December 31 were as follows:</font></p> <div> <div> <table border="0" cellspacing="0"> <tr><td width="44%"> </td> <td width="3%"> </td> <td width="11%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td> <td width="10%"> </td></tr> <tr valign="bottom"><td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td style="text-indent: 2px;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Gross</font></td> <td align="center">&nbsp;</td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Gross</font></td> <td align="center">&nbsp;</td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Estimated</font></td></tr> <tr valign="bottom"><td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Amortized</font></td> <td align="center">&nbsp;</td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Unrealized</font></td> <td align="center">&nbsp;</td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Unrealized</font></td> <td align="center">&nbsp;</td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Fair</font></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">December 31, 2012</font></b></td> <td style="border-bottom: #000000 1px solid;" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Cost</font></td> <td style="border-bottom: #000000 1px solid;" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid; text-indent: 2px;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Gains</font></td> <td style="border-bottom: #000000 1px solid;" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Losses</font></td> <td style="border-bottom: #000000 1px solid;" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid; text-indent: 2px;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Value</font></td></tr> <tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Fixed maturities, available-for-sale, at fair value-</font></td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 1px;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">General obligations of U.S. States, territories</font></td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 3px;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">and political subdivisions</font></td> <td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">38,658,463</font></b></td> <td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">3,211,445</font></b></td> <td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">41,869,908</font></b></td></tr> <tr valign="bottom"><td style="text-indent: 1px;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Issuer obligations of U.S. States, territories and</font></td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 3px;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">political subdivisions special revenue</font></td> <td align="left">&nbsp;</td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">18,933,299</font></b></td> <td align="left">&nbsp;</td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">1,909,106</font></b></td> <td align="left">&nbsp;</td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">10,455</font></b></td> <td align="left">&nbsp;</td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">20,831,950</font></b></td></tr> <tr valign="bottom"><td style="text-indent: 1px;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Corporate debt securities</font></td> <td align="left">&nbsp;</td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">17,064,697</font></b></td> <td align="left">&nbsp;</td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">1,252,973</font></b></td> <td align="left">&nbsp;</td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">14,750</font></b></td> <td align="left">&nbsp;</td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">18,302,920</font></b></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 1px;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Auction rate securities</font></td> <td style="border-bottom: #000000 1px solid;" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">917,214</font></b></td> <td style="border-bottom: #000000 1px solid;" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">14,986</font></b></td> <td style="border-bottom: #000000 1px solid;" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td style="border-bottom: #000000 1px solid;" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">932,200</font></b></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 2px solid; text-indent: 3px;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Total</font></td> <td style="border-bottom: #000000 2px solid;" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 2px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">75,573,673</font></b></td> <td style="border-bottom: #000000 2px solid;" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 2px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">6,388,510</font></b></td> <td style="border-bottom: #000000 2px solid;" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 2px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">25,205</font></b></td> <td style="border-bottom: #000000 2px solid;" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 2px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">81,936,978</font></b></td></tr> <tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Equity securities, available-for-sale at fair value-</font></td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 1px;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Common stocks and nonredeemable preferred stocks</font></td> <td style="border-bottom: #000000 1px solid;" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">21,229,114</font></b></td> <td style="border-bottom: #000000 1px solid;" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">7,373,056</font></b></td> <td style="border-bottom: #000000 1px solid;" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">91,237</font></b></td> <td style="border-bottom: #000000 1px solid;" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">28,510,933</font></b></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 2px solid; text-indent: 3px;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Total</font></td> <td style="border-bottom: #000000 2px solid;" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 2px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">21,229,114</font></b></td> <td style="border-bottom: #000000 2px solid;" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 2px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">7,373,056</font></b></td> <td style="border-bottom: #000000 2px solid;" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 2px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">91,237</font></b></td> <td style="border-bottom: #000000 2px solid;" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 2px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">28,510,933</font></b></td></tr> <tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Short-term investments-</font></td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 1px;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Certificates of deposit and other</font></td> <td style="border-bottom: #000000 1px solid;" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">13,567,648</font></b></td> <td style="border-bottom: #000000 1px solid;" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td style="border-bottom: #000000 1px solid;" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td style="border-bottom: #000000 1px solid;" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">13,567,648</font></b></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 2px solid; text-indent: 3px;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Total</font></td> <td style="border-bottom: #000000 2px solid;" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 2px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">13,567,648</font></b></td> <td style="border-bottom: #000000 2px solid;" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 2px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td style="border-bottom: #000000 2px solid;" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 2px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td style="border-bottom: #000000 2px solid;" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 2px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">13,567,648</font></b></td></tr></table></div> <p style="margin: 0px;">&nbsp;</p> <div> <table border="0" cellspacing="0"> <tr><td width="44%"> </td> <td width="3%"> </td> <td width="12%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="3%"> </td> <td width="9%"> </td> <td width="2%"> </td> <td width="10%"> </td></tr> <tr valign="bottom"><td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td style="text-indent: 2px;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Gross</font></td> <td align="center">&nbsp;</td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Gross</font></td> <td align="center">&nbsp;</td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Estimated</font></td></tr> <tr valign="bottom"><td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Amortized</font></td> <td align="center">&nbsp;</td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Unrealized</font></td> <td align="center">&nbsp;</td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Unrealized</font></td> <td align="center">&nbsp;</td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Fair</font></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">December 31, 2011</font></td> <td style="border-bottom: #000000 1px solid;" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid; text-indent: 3px;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Cost</font></td> <td style="border-bottom: #000000 1px solid;" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid; text-indent: 2px;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Gains</font></td> <td style="border-bottom: #000000 1px solid;" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Losses</font></td> <td style="border-bottom: #000000 1px solid;" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid; text-indent: 2px;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Value</font></td></tr> <tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Fixed maturities, available-for-sale, at fair value-</font></td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 1px;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">General obligations of U.S. States, territories</font></td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 3px;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">and political subdivisions</font></td> <td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">41,469,367</font></td> <td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">3,595,144</font></td> <td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">64</font></td> <td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">45,064,447</font></td></tr> <tr valign="bottom"><td style="text-indent: 1px;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Issuer obligations of U.S. States, territories and</font></td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 3px;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">political subdivisions special revenue</font></td> <td align="left">&nbsp;</td> <td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">20,573,562</font></td> <td align="left">&nbsp;</td> <td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">1,988,589</font></td> <td align="left">&nbsp;</td> <td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">13,805</font></td> <td align="left">&nbsp;</td> <td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">22,548,346</font></td></tr> <tr valign="bottom"><td style="text-indent: 1px;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Corporate debt securities</font></td> <td align="left">&nbsp;</td> <td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">12,188,639</font></td> <td align="left">&nbsp;</td> <td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">1,202,149</font></td> <td align="left">&nbsp;</td> <td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">148,616</font></td> <td align="left">&nbsp;</td> <td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">13,242,172</font></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 1px;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Auction rate securities</font></td> <td style="border-bottom: #000000 1px solid;" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">4,552,400</font></td> <td style="border-bottom: #000000 1px solid;" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></td> <td style="border-bottom: #000000 1px solid;" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></td> <td style="border-bottom: #000000 1px solid;" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">4,552,400</font></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 2px solid; text-indent: 3px;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Total</font></td> <td style="border-bottom: #000000 2px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 2px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">78,783,968</font></td> <td style="border-bottom: #000000 2px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 2px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">6,785,882</font></td> <td style="border-bottom: #000000 2px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 2px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">162,485</font></td> <td style="border-bottom: #000000 2px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 2px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">85,407,365</font></td></tr> <tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Equity securities, available-for sale at fair value-</font></td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 1px;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Common stocks and nonredeemable preferred stocks</font></td> <td style="border-bottom: #000000 1px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">17,652,745</font></td> <td style="border-bottom: #000000 1px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">4,939,053</font></td> <td style="border-bottom: #000000 1px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">41,823</font></td> <td style="border-bottom: #000000 1px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">22,549,975</font></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 2px solid; text-indent: 3px;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Total</font></td> <td style="border-bottom: #000000 2px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 2px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">17,652,745</font></td> <td style="border-bottom: #000000 2px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 2px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">4,939,053</font></td> <td style="border-bottom: #000000 2px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 2px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">41,823</font></td> <td style="border-bottom: #000000 2px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 2px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">22,549,975</font></td></tr> <tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Short-term investments-</font></td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 1px;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Certificates of deposit and other</font></td> <td style="border-bottom: #000000 1px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">14,112,262</font></td> <td style="border-bottom: #000000 1px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></td> <td style="border-bottom: #000000 1px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></td> <td style="border-bottom: #000000 1px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">14,112,262</font></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 2px solid; text-indent: 3px;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Total</font></td> <td style="border-bottom: #000000 2px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 2px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">14,112,262</font></td> <td style="border-bottom: #000000 2px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 2px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></td> <td style="border-bottom: #000000 2px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 2px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></td> <td style="border-bottom: #000000 2px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 2px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">14,112,262</font></td></tr></table></div></div> <p style="margin: 0px;">&nbsp;</p> <p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">The scheduled maturities of fixed maturity securities at December 31, 2012 were as follows:</font></p> <div> <table border="0" cellspacing="0"> <tr><td width="49%"> </td> <td width="13%"> </td> <td width="15%"> </td> <td width="4%"> </td> <td width="16%"> </td></tr> <tr valign="bottom"><td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" colspan="3" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Available-for-Sale</font></td></tr> <tr valign="bottom"><td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Amortized</font></td> <td align="center">&nbsp;</td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Fair</font></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid; text-indent: 3px;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Cost</font></td> <td style="border-bottom: #000000 1px solid;" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Value</font></td></tr> <tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Due in one year or less</font></td> <td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">8,717,614</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">8,851,190</font></b></td></tr> <tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Due after one year through five years</font></td> <td align="left">&nbsp;</td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">49,575,672</font></b></td> <td align="right">&nbsp;</td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">53,834,059</font></b></td></tr> <tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Due five years through ten years</font></td> <td align="left">&nbsp;</td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">14,328,875</font></b></td> <td align="right">&nbsp;</td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">15,800,393</font></b></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Due after ten years</font></td> <td style="border-bottom: #000000 1px solid;" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2,951,512</font></b></td> <td style="border-bottom: #000000 1px solid;" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">3,451,336</font></b></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 2px solid; text-indent: 3px;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Total</font></td> <td style="border-bottom: #000000 2px solid;" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 2px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">75,573,673</font></b></td> <td style="border-bottom: #000000 2px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 2px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">81,936,978</font></b></td></tr></table></div> <p style="margin: 0px;">&nbsp;</p> <div>&nbsp;</div><br /> <p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Earnings on investments for the years ended December 31 were as follows:</font></p> <div> <table border="0" cellspacing="0"> <tr><td width="66%"> </td> <td width="2%"> </td> <td width="13%" align="center"> </td> <td width="2%" align="center"> </td> <td width="12%" align="center"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="66%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="13%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2012</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="12%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">2011</font></td></tr> <tr><td width="95%" colspan="5">&nbsp;</td></tr> <tr valign="bottom"><td width="66%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Fixed maturities</font></td> <td width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="13%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">3,154,131</font></b></td> <td width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">3,233,988</font></b></td></tr> <tr valign="bottom"><td width="66%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Equity securities</font></td> <td width="2%" align="left">&nbsp;</td> <td width="13%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">815,674</font></b></td> <td width="2%" align="left">&nbsp;</td> <td width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">347,843</font></b></td></tr> <tr valign="bottom"><td width="66%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Invested cash and other short-term investments</font></td> <td width="2%" align="left">&nbsp;</td> <td width="13%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">10,576</font></b></td> <td width="2%" align="left">&nbsp;</td> <td width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">12,725</font></b></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="66%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Miscellaneous interest</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">30</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">480</font></b></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 3px;" width="66%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Investment income</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">3,980,411</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">3,595,036</font></b></td></tr></table></div> <p style="margin: 0px;">&nbsp;</p> <p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Gross realized gains and losses on sales of available-for-sale securities for the years ended December 31 are summarized as follows:</font></p> <div> <table border="0" cellspacing="0"> <tr><td width="68%"> </td> <td width="2%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="68%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2012</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="9%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">2011</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td width="68%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Gross realized gains:</font></td> <td width="2%" align="left">&nbsp;</td> <td width="10%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="9%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 1px;" width="68%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">General obligations of U.S. States, territories and political subdivisions</font></td> <td width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="10%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">250</font></b></td> <td width="2%" align="left">&nbsp;</td> <td width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="9%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">386</font></td> <td width="2%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 1px;" width="68%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Corporate</font></td> <td width="2%" align="left">&nbsp;</td> <td width="10%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">52,396</font></b></td> <td width="2%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="9%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">20,459</font></td> <td width="2%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 1px;" width="68%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Common stocks and nonredeemable preferred stocks</font></td> <td width="2%" align="left">&nbsp;</td> <td width="10%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">450,461</font></b></td> <td width="2%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="9%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">529,811</font></td> <td width="2%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 1px;" width="68%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Auction rate securities</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">211,061</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="9%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">43,199</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="68%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Total</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">714,168</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="9%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">593,855</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td width="68%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Gross realized losses:</font></td> <td width="2%" align="left">&nbsp;</td> <td width="10%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="9%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 1px;" width="68%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Common stocks and nonredeemable preferred stocks</font></td> <td width="2%" align="left">&nbsp;</td> <td width="10%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">(91,975</font></b></td> <td width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></b></td> <td width="2%" align="left">&nbsp;</td> <td width="9%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(247,117</font></td> <td width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 1px;" width="68%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Other than temporary impairment of securities</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">(93,436</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="9%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(280,987</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="68%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Total</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">(185,411</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="9%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(528,104</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="68%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Net realized gain</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">528,757</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 1px solid;" width="9%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">65,751</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td></tr></table></div> <p style="margin: 0px;">&nbsp;</p> <p style="text-align: left;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Realized gains and losses are determined on the specific identification method. Also included in net realized gain on sales in the Consolidated Statements of Income are net gains and impairments of other investments and net gains (losses) on sales and impairments of property acquired in the settlement of claims totaling $<font class="_mt">537,482</font> and $<font class="_mt">(37,192)</font> for the twelve months ended December 31, 2012 and 2011, respectively.</font></p> <p style="text-align: left;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">The following table presents the gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous loss position at December 31, 2012 and 2011.</font></p> <div> <table border="0" cellspacing="0"> <tr><td width="20%"> </td> <td width="2%"> </td> <td width="8%"> </td> <td width="2%"> </td> <td width="8%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="8%"> </td> <td width="2%"> </td> <td width="8%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="8%"> </td> <td width="2%"> </td> <td width="7%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td width="20%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="18%" colspan="3" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Less than 12 Months</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="18%" colspan="3" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">12 Months or Longer</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="17%" colspan="3" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Total</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="20%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">December 31, 2012</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Fair Value</font></td> <td style="border-bottom: #000000 1px solid;" width="10%" colspan="2" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Unrealized Loss</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Fair Value</font></td> <td style="border-bottom: #000000 1px solid;" width="10%" colspan="2" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Unrealized Loss</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Fair Value</font></td> <td style="border-bottom: #000000 1px solid;" width="9%" colspan="2" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Unrealized Loss</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td width="20%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Issuer obligations of U.S.</font></td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="7%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 1px;" width="20%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">States, territories and</font></td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="7%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 1px;" width="20%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">political subdivisions</font></td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="7%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 1px;" width="20%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">special revenue</font></td> <td width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="8%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">1,236,906</font></b></td> <td style="text-indent: 2px;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="8%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">(10,455</font></b></td> <td width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></b></td> <td width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="8%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="8%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td width="2%" align="left">&nbsp;</td> <td width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="8%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">1,236,906</font></b></td> <td width="2%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="7%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">(10,455</font></b></td> <td width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></b></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="20%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Corporate debt securities</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">985,250</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">(14,750</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">985,250</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">(14,750</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></b></td></tr> <tr valign="bottom"><td width="20%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Total fixed maturity</font></td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="7%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 1px;" width="20%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">securities</font></td> <td width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="8%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2,222,156</font></b></td> <td style="text-indent: 2px;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="8%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">(25,205</font></b></td> <td width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></b></td> <td width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="8%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="8%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td width="2%" align="left">&nbsp;</td> <td width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="8%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2,222,156</font></b></td> <td width="2%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="7%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">(25,205</font></b></td> <td width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></b></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="20%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Equity securities</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2,551,215</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">(91,237</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2,551,215</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">(91,237</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></b></td></tr> <tr valign="bottom"><td width="20%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Total temporarily</font></td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="7%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 1px;" width="20%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">impaired securities</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">4,773,371</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">(116,442</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></b></td> <td style="border-bottom: #000000 1px solid; text-indent: 1px;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">4,773,371</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">(116,442</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></b></td></tr> <tr><td width="85%" colspan="16">&nbsp;</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="20%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">December 31, 2011</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="7%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td width="20%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">General obligations of</font></td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="7%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 1px;" width="20%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">U.S. States, territories</font></td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="7%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 1px;" width="20%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">and political</font></td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="7%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 1px;" width="20%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">subdivisions</font></td> <td width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">663,666</font></td> <td style="text-indent: 2px;" width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(64</font></td> <td width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></td> <td width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></td> <td style="text-indent: 2px;" width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></td> <td width="2%" align="left">&nbsp;</td> <td width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">663,666</font></td> <td width="2%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="7%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(64</font></td> <td width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></td></tr> <tr valign="bottom"><td width="20%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Issuer obligations of U.S.</font></td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="7%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 1px;" width="20%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">States, territories and</font></td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="7%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 1px;" width="20%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">political subdivisions</font></td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="7%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 1px;" width="20%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">special revenue</font></td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></td> <td width="2%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">1,023,180</font></td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(13,805</font></td> <td width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">1,023,180</font></td> <td width="2%" align="left">&nbsp;</td> <td width="7%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(13,805</font></td> <td width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="20%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Corporate debt securities</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">3,015,769</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(148,616</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">3,015,769</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(148,616</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></td></tr> <tr valign="bottom"><td width="20%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Total fixed maturity</font></td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="7%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 1px;" width="20%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">securities</font></td> <td width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">3,679,435</font></td> <td style="text-indent: 2px;" width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(148,680</font></td> <td width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></td> <td width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">1,023,180</font></td> <td style="text-indent: 2px;" width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(13,805</font></td> <td width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></td> <td width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">4,702,615</font></td> <td width="2%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="7%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(162,485</font></td> <td width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="20%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Equity securities</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">957,072</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(40,893</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">104,130</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(930</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">1,061,202</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(41,823</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></td></tr> <tr valign="bottom"><td width="20%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Total temporarily</font></td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="7%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 1px;" width="20%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">impaired securities</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">4,636,507</font></td> <td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(189,573</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">1,127,310</font></td> <td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(14,735</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">5,763,817</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(204,308</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></td></tr></table></div> <p style="margin: 0px;">&nbsp;</p> <div>&nbsp;</div><br /> <p style="text-align: left;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">As of December 31, 2012, the Company held $<font class="_mt">2,222,156</font> in fixed maturity securities with unrealized losses of $<font class="_mt">25,205</font>. As of December 31, 2011, the Company held $<font class="_mt">4,702,615</font> in fixed maturity securities with unrealized losses of $<font class="_mt">162,485</font>. The decline in fair value of the fixed maturity securities can be attributed primarily to changes in market interest rates and changes in credit spreads over Treasury securities. Because the Company does not have the intent to sell these securities and likely will not be compelled to sell them before it can recover its cost basis, the Company does not consider these investments to be other-than-temporarily impaired.</font></p> <p style="text-align: left;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">As of December 31, 2012, the Company held $<font class="_mt">2,551,215</font> in equity securities with unrealized losses of $<font class="_mt">91,237</font>. As of December 31, 2011, the Company held $<font class="_mt">1,061,202</font> in equity securities with unrealized losses of $<font class="_mt">41,823</font>. The unrealized losses related to holdings of equity securities were caused by market changes that the Company considers to be temporary. Since the Company has the intent and ability to hold these equity income securities until a recovery of fair value, the Company does not consider these investments other-than-temporarily impaired.</font></p> <p style="text-align: left;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Factors considered in determining whether a loss is temporary include the length of time and extent to which fair value has been below cost, the financial condition and prospects of the issuer (including credit ratings and analyst reports) and macro-economic changes. A total of&nbsp;<font class="_mt">7</font> and&nbsp;<font class="_mt">13</font> securities had unrealized losses at December 31, 2012 and December 31, 2011, respectively. Reviews of the values of securities are inherently uncertain and the value of the investment may not fully recover, or may decline in future periods resulting in a realized loss. During 2012, the Company recorded an other-than-temporary impairment charge in the amount of $<font class="_mt">93,436</font> related to securities. During 2011, the Company recorded an other-than-temporary impairment charge in the amount of $<font class="_mt">280,987</font> related to securities, of which, $<font class="_mt">101,861</font> was related to Level 3 ARS that have had a history of being below cost and a change in intent not to sell. Other-than-temporary impairment charges are included in net realized gain on investments in the Consolidated Statements of Income.</font></p> <p style="text-align: left;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i><font style="font-family: TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif;" class="_mt" size="2">Valuation Hierarchy</font></i><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">. The FASB has established a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value of financial assets and liabilities, such as securities. This hierarchy categorizes the inputs into three broad levels as follows. Level 1 inputs to the valuation methodology are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs to the valuation methodology are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on the Company's own assumptions used to measure assets and liabilities at fair value.</font></p> <p style="text-align: left;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i><font style="font-family: TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif;" class="_mt" size="2">Valuation Techniques</font></i><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">. A financial instrument's classification within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement&#8212;consequently, if there are multiple significant valuation inputs that are categorized in different levels of the hierarchy, the instrument's hierarchy level is the lowest level (with Level 3 being the lowest level) within which any significant input falls.</font></p> <p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">The Level 1 category includes equity securities that are measured at fair value using quoted active market prices.</font></p> <p style="text-align: left;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">The Level 2 category includes fixed maturity investments such as corporate bonds, U.S. government and agency bonds and municipal bonds. Their fair value is principally based on market values obtained from a third party pricing service. Factors that are used in determining their fair market value include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two sided markets, benchmark securities, bids, offers and reference data. The Company receives one quote per security from the pricing service, although as discussed below, the Company does consult other price resources when confirming that the prices it obtains reflect the fair values of the instruments in accordance with ASC 820</font><i><font style="font-family: TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif;" class="_mt" size="2">, Fair Value Measurements and Disclosures</font></i><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">. Generally, quotes obtained from the pricing service for instruments classified as Level 2 are not adjusted and are not binding. As of December 31, 2012 and 2011, the Company did not adjust any Level 2 fair values.</font></p> <p style="text-align: left;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">A number of the Company's investment grade corporate bonds are frequently traded in active markets, and trading prices are consequently available for these securities. However, these securities were classified as Level 2 because the third party pricing service from which the Company has obtained fair values for these instruments uses valuation models which use observable market inputs in addition to traded prices. Substantially all of the input assumptions used in the service's model are observable in the marketplace or can be derived or supported by observable market data.</font></p> <p style="text-align: left;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">The Level 3 category only includes the Company's investments in student loan ARS because quoted prices were unavailable due to the failure of auctions. Some of the inputs to this model are unobservable in the market and are significant&#8212;therefore, the Company utilizes another third party pricing service to assist in the determination of fair market value of these securities. That service uses a proprietary valuation model that considers factors such as the following: the financial standing of the issuer; reported prices and the extent of public trading in similar financial instruments of the issuer or comparable companies; the ability of the issuer to obtain required financing; changes in the economic conditions affecting the issuer; pricing by other dealers in similar securities; time to maturity; and interest rates. The following table summarizes some key assumptions the service used to determine fair value as of December 31, 2012 and 2011:</font></p> <div> <table border="0" cellspacing="0"> <tr><td width="57%"> </td> <td width="21%"> </td> <td width="3%"> </td> <td width="14%"> </td> <td width="3%"> </td></tr> <tr valign="bottom"><td align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2012</font></b></td> <td style="border-bottom: #000000 1px solid;" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">2011</font></td> <td style="border-bottom: #000000 1px solid;" align="left">&nbsp;</td></tr> <tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Cumulative probability of earning maximum rate until maturity</font></td> <td class="MetaData" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0.0</font></b></td> <td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">%</font></b></td> <td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2"><font class="_mt"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0.0</font></font>-<font class="_mt">0.1</font></font></td> <td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">%</font></td></tr> <tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Cumulative probability of principle returned prior to maturity</font></td> <td align="right"> <div><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">96.1</font></b></div></td> <td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">%</font></b></td> <td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2"><font class="_mt"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">95.4</font></font>-<font class="_mt">98.7</font>%</font></td> <td align="left">&nbsp;</td></tr> <tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Cumulative probability of default at some future point</font></td> <td align="right"> <div><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">3.9</font></b></div></td> <td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">%</font></b></td> <td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2"><font class="_mt"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">1.3</font></font>-<font class="_mt">4.6</font></font></td> <td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">%</font></td></tr></table></div> <p style="margin: 0px;">&nbsp;</p> <p style="text-align: left;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Based upon these inputs and assumptions, the pricing service provides a range of values to the Company for its ARS. The Company records the fair value based on the midpoint of the range and believes that this valuation is the most reasonable estimate of fair value. In 2012 and 2011, the difference in the low and high values of the ranges was approximately&nbsp;<font class="_mt">zero</font> and&nbsp;<font class="_mt">three</font> percent of the carrying value of the Company's ARS.</font></p> <p style="text-align: left;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">The Company's ARS portfolio is comprised entirely of investment grade student loan ARS. The par value of the ARS bonds was $<font class="_mt">1,000,000</font> and $<font class="_mt">5,000,000</font> as of December 31, 2012 and 2011, respectively, with approximately <font class="_mt">97.0</font>% and <font class="_mt">79.6</font>% as of December 31, 2012 and 2011, respectively, guaranteed by the U.S. Department of Education.</font></p> <div>&nbsp;</div><br /> <p style="text-align: left;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">The following table presents, by level, the financial assets carried at fair value measured on a recurring basis as of December 31, 2012 and 2011. The table does not include cash on hand and also does not include assets which are measured at historical cost or any basis other than fair value. Level 3assets are comprised solely of ARS.</font></p> <div> <div> <table border="0" cellspacing="0"> <tr><td width="42%"> </td> <td width="2%"> </td> <td width="13%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td> <td width="11%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="42%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">As of December 31, 2012</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="13%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Level 1</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="11%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Level 2</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="9%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Level 3</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid; text-indent: 4px;" width="11%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Total</font></td></tr> <tr valign="bottom"><td width="42%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Short Term</font></td> <td width="2%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="13%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">13,567,648</font></b></td> <td width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="11%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="9%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td width="2%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="11%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">13,567,648</font></b></td></tr> <tr valign="bottom"><td width="42%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Equity Securities</font></td> <td width="2%" align="right">&nbsp;</td> <td width="13%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="11%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="9%" align="left">&nbsp;</td> <td width="2%" align="right">&nbsp;</td> <td width="11%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="42%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Common stock and nonredeemable preferred stock</font></td> <td width="2%" align="right">&nbsp;</td> <td width="13%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">28,510,933</font></b></td> <td width="2%" align="left">&nbsp;</td> <td width="11%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td width="2%" align="left">&nbsp;</td> <td width="9%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td width="2%" align="right">&nbsp;</td> <td width="11%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">28,510,933</font></b></td></tr> <tr valign="bottom"><td width="42%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Fixed Maturities</font></td> <td width="2%" align="right">&nbsp;</td> <td width="13%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="11%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="9%" align="left">&nbsp;</td> <td width="2%" align="right">&nbsp;</td> <td width="11%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="42%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Obligations of U.S. States, territories and political subdivisions*</font></td> <td width="2%" align="right">&nbsp;</td> <td width="13%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td width="2%" align="left">&nbsp;</td> <td width="11%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">62,701,858</font></b></td> <td width="2%" align="left">&nbsp;</td> <td width="9%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td width="2%" align="right">&nbsp;</td> <td width="11%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">62,701,858</font></b></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="42%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Corporate debt securities*</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">18,302,920</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="9%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">932,200</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">19,235,120</font></b></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 2px solid;" width="42%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Total</font></td> <td style="border-bottom: #000000 2px solid;" width="2%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 2px solid;" width="13%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">42,078,581</font></b></td> <td style="border-bottom: #000000 2px solid;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 2px solid;" width="11%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">81,004,778</font></b></td> <td style="border-bottom: #000000 2px solid;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 2px solid;" width="9%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">932,200</font></b></td> <td style="border-bottom: #000000 2px solid;" width="2%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 2px solid;" width="11%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">124,015,559</font></b></td></tr></table></div> <p style="margin: 0px;">&nbsp;</p> <div> <table border="0" cellspacing="0"> <tr><td width="42%"> </td> <td width="2%"> </td> <td width="13%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td> <td width="11%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="42%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">As of December 31, 2011</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid; text-indent: 3px;" width="13%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Level 1</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid; text-indent: 3px;" width="12%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Level 2</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="9%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Level 3</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid; text-indent: 4px;" width="11%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Total</font></td></tr> <tr valign="bottom"><td width="42%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Short Term</font></td> <td width="2%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="13%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">14,112,262</font></td> <td width="2%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="12%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></td> <td width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="9%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></td> <td width="2%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="11%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">14,112,262</font></td></tr> <tr valign="bottom"><td width="42%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Equity Securities</font></td> <td width="2%" align="right">&nbsp;</td> <td width="13%" align="left">&nbsp;</td> <td width="2%" align="right">&nbsp;</td> <td width="12%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="9%" align="left">&nbsp;</td> <td width="2%" align="right">&nbsp;</td> <td width="11%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="42%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Common stock and nonredeemable preferred stock</font></td> <td width="2%" align="right">&nbsp;</td> <td width="13%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">22,549,975</font></td> <td width="2%" align="right">&nbsp;</td> <td width="12%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></td> <td width="2%" align="left">&nbsp;</td> <td width="9%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></td> <td width="2%" align="right">&nbsp;</td> <td width="11%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">22,549,975</font></td></tr> <tr valign="bottom"><td width="42%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Fixed Maturities</font></td> <td width="2%" align="right">&nbsp;</td> <td width="13%" align="left">&nbsp;</td> <td width="2%" align="right">&nbsp;</td> <td width="12%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="9%" align="left">&nbsp;</td> <td width="2%" align="right">&nbsp;</td> <td width="11%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="42%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Obligations of U.S. States, territories and political subdivisions*</font></td> <td width="2%" align="right">&nbsp;</td> <td width="13%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></td> <td width="2%" align="right">&nbsp;</td> <td width="12%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">67,612,793</font></td> <td width="2%" align="left">&nbsp;</td> <td width="9%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">1,834,700</font></td> <td width="2%" align="right">&nbsp;</td> <td width="11%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">69,447,493</font></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="42%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Corporate debt securities*</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">13,242,172</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="9%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">2,717,700</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">15,959,872</font></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 2px solid;" width="42%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Total</font></td> <td style="border-bottom: #000000 2px solid;" width="2%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 2px solid;" width="13%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">36,662,237</font></td> <td style="border-bottom: #000000 2px solid;" width="2%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 2px solid;" width="12%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">80,854,965</font></td> <td style="border-bottom: #000000 2px solid;" width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 2px solid;" width="9%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">4,552,400</font></td> <td style="border-bottom: #000000 2px solid;" width="2%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 2px solid;" width="11%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">122,069,602</font></td></tr></table></div> <p style="margin: 0px;">&nbsp;</p> <p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">*<font class="_mt">Denotes fair market value obtained from pricing services.</font></font></p></div> <p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">There were no transfers into or out of Levels 1 and 2 during the period.</font></p> <p style="text-align: left;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">To help ensure that fair value determinations are consistent with ASC 820 fair value measurements, prices from our pricing services go through multiple review processes to ensure appropriate pricing. Pricing procedures and inputs used to price each security include, but are not limited to, the following: unadjusted quoted market prices for identical securities such as stock market closing prices; non-binding quoted prices for identical securities in markets that are not active; interest rates; yield curves observable at commonly quoted intervals; volatility; prepayment speeds; loss severity; credit risks and default rates. The Company reviews the procedures and inputs used by its pricing services and verifies a sample of the services' quotes by comparing them to values obtained from other pricing resources. In the event the Company disagrees with a price provided by its pricing services, the service reevaluates the price to corroborate the market information and then reviews inputs to the evaluation in light of potentially new market data. The Company believes that these processes and inputs result in appropriate classifications and fair values consistent with ASC 820.</font></p> <p style="text-align: left;"><i><font style="font-family: TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif;" class="_mt" size="2">Other Financial Instruments</font></i></p> <p style="text-align: left;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">The Company uses various financial instruments in the normal course of its business. In the measurement of the fair value of certain financial instruments, other valuation techniques were utilized if quoted market prices were not available. These derived fair value estimates are significantly affected by the assumptions used. Additionally, ASC 820 excludes from its scope certain financial instruments including those related to insurance contracts, pension and other postretirement benefits, and equity method investments.</font></p> <p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">In estimating the fair value of the financial instruments presented, the Company used the following methods and assumptions:</font></p> <p style="text-align: left;"><i><font style="font-family: TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif;" class="_mt" size="2">Cash and cash equivalents</font></i></p> <p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">The carrying amount for cash and cash equivalents is a reasonable estimate of fair value due to the short-term maturity of these investments.</font></p> <p style="text-align: left;"><i><font style="font-family: TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif;" class="_mt" size="2">Cost-basis investments</font></i></p> <p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">The estimated fair value of cost basis investments is calculated from the book value of the underlying entities, which is not materially different from the fair market value of the underlying entity.</font></p> <p style="text-align: left;"><i><font style="font-family: TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif;" class="_mt" size="2">Accrued dividends and interest</font></i></p> <p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">The carrying amount for accrued dividends and interest is a reasonable estimate of fair value due to the short-term maturity of these assets.</font></p> <p style="text-align: left;"><i><font style="font-family: TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif;" class="_mt" size="2">Contingent consideration</font></i></p> <p style="text-align: left;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">The fair value of the contingent consideration was estimated based on the discounted value of the future cash flows. Contingent consideration consists of additional monies the Company may become obligated to pay based on the future performance of a business the Company acquired, as discussed in Note 18.</font></p> <div>&nbsp;</div><br /> <p style="text-align: left;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">The carrying amounts and fair values of these financial instruments (please note investments are disclosed in a previous table) as of December 31, 2012 and 2011 are presented in the following table:</font></p> <div> <div> <p style="text-align: left;"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">As of December 31, 2012:</font></b></p> <table border="0" cellspacing="0"> <tr><td width="27%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="2%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="10%"> </td></tr> <tr valign="bottom"><td width="27%" align="left">&nbsp;</td> <td width="2%" align="center">&nbsp;</td> <td width="11%" align="center">&nbsp;</td> <td width="2%" align="center">&nbsp;</td> <td width="11%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Estimated Fair</font></b></td> <td width="2%" align="center">&nbsp;</td> <td width="11%" align="center">&nbsp;</td> <td width="2%" align="center">&nbsp;</td> <td width="10%" align="center">&nbsp;</td> <td width="2%" align="center">&nbsp;</td> <td width="10%" align="center">&nbsp;</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="27%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Financial Assets</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="11%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Carrying Value</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="11%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Value</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="11%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Level 1</font></b></td> <td style="border-bottom: #000000 1px solid; text-indent: 1px;" width="12%" colspan="2" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Level 2</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Level 3</font></b></td></tr> <tr valign="bottom"><td style="text-indent: 1px;" width="27%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Cash</font></b></td> <td style="text-indent: 5px;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="11%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">20,810,018</font></b></td> <td style="text-indent: 2px;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="11%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">20,810,018</font></b></td> <td width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="11%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">20,810,018</font></b></td> <td width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="10%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="10%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td></tr> <tr valign="bottom"><td style="text-indent: 1px;" width="27%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Cost-basis investments</font></b></td> <td width="2%" align="left">&nbsp;</td> <td width="11%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">1,871,315</font></b></td> <td width="2%" align="left">&nbsp;</td> <td width="11%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">1,952,323</font></b></td> <td width="2%" align="left">&nbsp;</td> <td width="11%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td width="2%" align="left">&nbsp;</td> <td width="10%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td width="2%" align="left">&nbsp;</td> <td width="10%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">1,952,323</font></b></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 1px;" width="27%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Accrued dividends and interest</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">1,037,447</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">1,037,447</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">1,037,447</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="27%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Total</font></b></td> <td style="border-bottom: #000000 1px solid; text-indent: 5px;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">23,718,780</font></b></td> <td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">23,799,788</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">21,847,465</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">1,952,323</font></b></td></tr> <tr><td width="90%" colspan="11">&nbsp;</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="27%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Financial Liabilities</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="11%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="11%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="11%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 1px;" width="27%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Contingent consideration</font></b></td> <td style="border-bottom: #000000 1px solid; text-indent: 5px;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">691,250</font></b></td> <td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">691,250</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">691,250</font></b></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="27%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Total</font></b></td> <td style="border-bottom: #000000 3px double; text-indent: 5px;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 3px double;" width="11%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">691,250</font></b></td> <td style="border-bottom: #000000 3px double; text-indent: 2px;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 3px double;" width="11%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">691,250</font></b></td> <td style="border-bottom: #000000 3px double;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 3px double;" width="11%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td style="border-bottom: #000000 3px double;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 3px double;" width="10%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td style="border-bottom: #000000 3px double;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 3px double;" width="10%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">691,250</font></b></td></tr></table></div> <p style="margin: 0px;">&nbsp;</p> <p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">As of December 31, 2011:</font></p> <div> <table style="width: 918px; height: 163px;" border="0" cellspacing="0"> <tr><td width="41%"> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="1%"> </td> <td width="8%"> </td> <td width="1%"> </td></tr> <tr valign="bottom"><td width="41%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="10%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td> <td width="10%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Estimated Fair</font></td> <td width="1%" align="center">&nbsp;</td> <td width="10%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td> <td width="10%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td> <td width="8%" align="center">&nbsp;</td> <td width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="41%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Financial Assets</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Carrying Value</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Value</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Level 1</font></td> <td style="border-bottom: #000000 1px solid; text-indent: 1px;" width="11%" colspan="2" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Level 2</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Level 3</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 1px;" width="41%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Cash</font></td> <td style="text-indent: 4px;" width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="10%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">18,042,258</font></td> <td style="text-indent: 2px;" width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="10%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">18,042,258</font></td> <td width="1%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="10%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">18,042,258</font></td> <td width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="10%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></td> <td width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></td> <td width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 1px;" width="41%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Cost-basis investments</font></td> <td width="1%" align="left">&nbsp;</td> <td width="10%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">1,303,887</font></td> <td width="1%" align="left">&nbsp;</td> <td width="10%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">1,688,262</font></td> <td width="1%" align="right">&nbsp;</td> <td width="10%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></td> <td width="1%" align="left">&nbsp;</td> <td width="10%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></td> <td width="1%" align="left">&nbsp;</td> <td width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">1,688,262</font></td> <td width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 1px;" width="41%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Accrued dividends and interest</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">1,108,156</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">1,108,156</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">1,108,156</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="41%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Total</font></td> <td style="border-bottom: #000000 1px solid; text-indent: 4px;" width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">20,454,301</font></td> <td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">20,838,676</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">19,150,414</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$&nbsp;</font>&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">1,688,262</font>&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2"> </font></td></tr></table></div></div> <p style="margin: 0px;">&nbsp;</p> <p style="text-align: left;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">The following table presents a reconciliation of the Company's assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3), which are all ARS securities, for the twelve months ended December 31, 2012 and 2011:</font></p> <div> <table border="0" cellspacing="0"> <tr><td width="64%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="10%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="64%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Changes in fair value during the year ended December 31:</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="12%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2012</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">2011</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td width="64%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Beginning balance at January 1</font></td> <td width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">4,552,400</font></b></td> <td width="2%" align="left">&nbsp;</td> <td width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="10%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">5,472,244</font></td> <td width="2%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td width="64%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Redemptions and sales</font></td> <td width="2%" align="left">&nbsp;</td> <td width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">(3,900,000</font></b></td> <td width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></b></td> <td width="2%" align="left">&nbsp;</td> <td width="10%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(900,000</font></td> <td width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></td></tr> <tr valign="bottom"><td width="64%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Realized gain &#8211; included in net realized gain on investments</font></td> <td width="2%" align="left">&nbsp;</td> <td width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">211,061</font></b></td> <td width="2%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="10%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">43,199</font></td> <td width="2%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td width="64%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Realized loss &#8211; included in net realized gain on investments</font></td> <td width="2%" align="left">&nbsp;</td> <td width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td width="2%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="10%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(101,861</font></td> <td width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="64%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Unrealized gain - included in other comprehensive income</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">68,739</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">38,818</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="64%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Ending balance at December 31</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">932,200</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">4,552,400</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td></tr></table></div> <p style="margin: 0px;">&nbsp;</p> <p style="text-align: left;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">The following table presents a reconciliation of the Company's liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3), consisting solely of contingent consideration, for the twelve months ended December 31, 2012 and 2011:</font></p> <div> <table border="0" cellspacing="0"> <tr><td width="61%"> </td> <td width="2%"> </td> <td width="17%"> </td> <td width="2%"> </td> <td width="17%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="61%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Changes in fair value during the period ended:</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="17%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2012</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="17%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">2011</font></td></tr> <tr valign="bottom"><td width="61%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Beginning balance at January 1</font></td> <td width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="17%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">-</font></b></td> <td width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="17%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">-</font></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="61%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Addition of contingent consideration</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="17%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">691,250</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="17%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">-</font></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="61%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Ending balance, net</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" width="17%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">691,250</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 1px solid;" width="17%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">-</font></td></tr></table></div> <p style="margin: 0px;">&nbsp;</p> <p style="text-align: left;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Certain cost method investments are measured at estimated fair value on a non-recurring basis, such as investments that are determined to be other-than temporarily impaired during the period and recorded at estimated fair value in the Consolidated Financial Statements as of December 31, 2012 and 2011. The following table summarizes the corresponding estimated fair value hierarchy of such investments at December 31, 2012 and 2011 and the related impairments recognized:</font></p> <div>&nbsp;</div><br /> <div> <table border="0" cellspacing="0"> <tr><td width="17%"> </td> <td width="12%"> </td> <td width="11%"> </td> <td width="1%"> </td> <td width="8%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="1%"> </td> <td width="8%"> </td> <td width="1%"> </td> <td width="8%"> </td> <td width="1%"> </td></tr> <tr valign="bottom"><td width="17%" align="left">&nbsp;</td> <td width="12%" align="center">&nbsp;</td> <td width="11%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td> <td width="8%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td> <td width="9%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td> <td width="10%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td> <td width="8%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Total at</font></b></td> <td width="1%" align="center">&nbsp;</td> <td width="8%" align="center">&nbsp;</td> <td width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td width="17%" align="left">&nbsp;</td> <td width="12%" align="center">&nbsp;</td> <td width="11%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td> <td width="8%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td> <td width="9%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td> <td width="10%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td> <td width="8%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Estimated</font></b></td> <td width="1%" align="center">&nbsp;</td> <td width="8%" align="center">&nbsp;</td> <td width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td width="17%" align="left">&nbsp;</td> <td width="12%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Valuation</font></b></td> <td width="11%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td> <td width="8%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td> <td width="9%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td> <td width="10%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td> <td width="8%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Fair</font></b></td> <td width="1%" align="center">&nbsp;</td> <td width="8%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Impairment</font></b></td> <td width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="17%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">December 31, 2012</font></b></td> <td style="border-bottom: #000000 1px solid;" width="12%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Method</font></b></td> <td style="border-bottom: #000000 1px solid;" width="11%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Impaired</font></b></td> <td style="border-bottom: #000000 1px solid;" width="9%" colspan="2" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Level 1</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="9%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Level 2</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Level 3</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Value</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Losses</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td width="17%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Cost method</font></b></td> <td width="12%" align="left">&nbsp;</td> <td width="11%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="9%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="10%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 1px;" width="17%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">investments</font></b></td> <td width="12%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Fair Value</font></b></td> <td width="11%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Yes</font></b></td> <td width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="8%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="text-indent: 8px;" width="9%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="10%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">36,406</font></b></td> <td width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="8%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">36,406</font></b></td> <td style="text-indent: 1px;" width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="8%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">(6,504</font></b></td> <td width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></b></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="17%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Other assets</font></b></td> <td style="border-bottom: #000000 1px solid;" width="12%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Fair Value</font></b></td> <td style="border-bottom: #000000 1px solid;" width="11%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Yes</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid; text-indent: 8px;" width="9%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td width="17%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Total cost method</font></b></td> <td width="12%" align="left">&nbsp;</td> <td width="11%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="8%" align="right">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="9%" align="right">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="10%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 1px;" width="17%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">investments and</font></b></td> <td width="12%" align="left">&nbsp;</td> <td width="11%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="8%" align="right">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="9%" align="right">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="10%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 1px;" width="17%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">other assets</font></b></td> <td style="border-bottom: #000000 3px double;" width="12%" align="left">&nbsp;</td> <td style="border-bottom: #000000 3px double;" width="11%" align="left">&nbsp;</td> <td style="border-bottom: #000000 3px double;" width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 3px double;" width="8%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td style="border-bottom: #000000 3px double;" width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 3px double; text-indent: 8px;" width="9%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td style="border-bottom: #000000 3px double;" width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 3px double;" width="10%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">36,406</font></b></td> <td style="border-bottom: #000000 3px double;" width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 3px double;" width="8%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">36,406</font></b></td> <td style="border-bottom: #000000 3px double; text-indent: 1px;" width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 3px double;" width="8%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">(6,504</font></b></td> <td style="border-bottom: #000000 3px double;" width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></b></td></tr> <tr><td width="89%" colspan="14">&nbsp;</td></tr> <tr valign="bottom"><td width="17%" align="left">&nbsp;</td> <td width="12%" align="center">&nbsp;</td> <td width="11%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td> <td width="8%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td> <td width="9%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td> <td width="10%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td> <td width="8%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Total at</font></td> <td width="1%" align="center">&nbsp;</td> <td width="8%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td></tr> <tr valign="bottom"><td width="17%" align="left">&nbsp;</td> <td width="12%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Valuation</font></td> <td width="11%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td> <td width="8%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td> <td width="9%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td> <td width="10%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td> <td width="8%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Estimated</font></td> <td width="1%" align="center">&nbsp;</td> <td width="8%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Impairment</font></td> <td width="1%" align="center">&nbsp;</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="17%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">December 31, 2011</font></td> <td style="border-bottom: #000000 1px solid;" width="12%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Method</font></td> <td style="border-bottom: #000000 1px solid;" width="11%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Impaired</font></td> <td style="border-bottom: #000000 1px solid;" width="9%" colspan="2" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Level 1</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="9%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Level 2</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Level 3</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Fair Value</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Losses</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center">&nbsp;</td></tr> <tr valign="bottom"><td width="17%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Cost method</font></td> <td width="12%" align="left">&nbsp;</td> <td width="11%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="9%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="10%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 1px;" width="17%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">investments</font></td> <td width="12%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Fair Value</font></td> <td width="11%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Yes</font></td> <td width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></td> <td width="1%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="text-indent: 8px;" width="9%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></td> <td width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="10%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">58,281</font></td> <td width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">58,281</font></td> <td width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(28,904</font></td> <td width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="17%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Other assets</font></td> <td style="border-bottom: #000000 1px solid;" width="12%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Fair Value</font></td> <td style="border-bottom: #000000 1px solid;" width="11%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Yes</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid; text-indent: 8px;" width="9%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">17,000</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">17,000</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(15,500</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></td></tr> <tr valign="bottom"><td width="17%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Total cost method</font></td> <td width="12%" align="left">&nbsp;</td> <td width="11%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="8%" align="right">&nbsp;</td> <td width="1%" align="right">&nbsp;</td> <td width="9%" align="right">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="10%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 1px;" width="17%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">investments and other</font></td> <td width="12%" align="left">&nbsp;</td> <td width="11%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="8%" align="right">&nbsp;</td> <td width="1%" align="right">&nbsp;</td> <td width="9%" align="right">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="10%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 1px;" width="17%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">assets</font></td> <td style="border-bottom: #000000 1px solid;" width="12%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="11%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 1px solid; text-indent: 8px;" width="9%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">75,281</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">75,281</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(44,404</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></td></tr></table></div> <p style="margin: 0px;">&nbsp;</p> </div> 6704000 6700000 P120D P30D 250000 0.836 0.868 0.164 0.132 1.00 1.00 35359000 55580000 749688 1674594 11004000 15558000 13 7 2 100 3722803 3936653 2328000 4892000 P2Y 3545127 4990115 599241 603334 <div> <div> <p style="text-indent: 0pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt; border-top: #d9d9d9 1pt;"><font style="font-style: italic; display: inline; font-size: 9pt; font-weight: bold;" class="_mt">Pending Accounting Standards</font> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">In June 2011, the FASB updated requirements relating to the presentation of comprehensive income.&nbsp;&nbsp;In December 2011, the FASB issued a subsequent update to defer those changes in the June 2011 update that relate to the presentation of reclassification adjustments.&nbsp;&nbsp;All other requirements of the June 2011 update are not affected by the December 2011 update.&nbsp;&nbsp;The amendments were being made to allow the FASB time to re</font><font style="display: inline; font-size: 9pt;" class="_mt">-</font><font style="display: inline; font-size: 9pt;" class="_mt">deliberate whether to present on the face of the financial statements the effects of reclassifications out of accumulated other comprehensive income on the components of net income and other comprehensive income for all periods presented. On February 5, 2013, the FASB did add new disclosure requirements for items reclassified out of accumulated other comprehensive income. This update will become effective for fiscal years, and interim periods within those years, beginning after December 15, 2012. The guidance is not expected to have an impact on the Company's financial condition or results of operations.</font> </p></div> </div> 354308 401553 234586 310743 0.046 0.013 0.039 0.001 0.000 0.000 0.987 0.954 0.961 0.01 P20Y 1729830 1885760 P6M <div> <div> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="font-style: italic; display: inline; font-size: 9pt; font-weight: bold;" class="_mt">Property Acquired in Settlement of Claims</font> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Property acquired in settlement of claims is held for sale and valued at the lower of cost or market. Adjustments to reported estimated realizable values and realized gains or losses on dispositions are recorded as increases or decreases in claim costs.</font> </p></div> </div> 0.041 0.059 220 80 1488000 1324000 0.01 P3M P12M P3M <div> <table border="0" cellspacing="0"> <tr><td width="61%"> </td> <td width="2%"> </td> <td width="17%"> </td> <td width="2%"> </td> <td width="17%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="61%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Changes in fair value during the period ended:</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="17%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2012</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="17%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">2011</font></td></tr> <tr valign="bottom"><td width="61%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Beginning balance at January 1</font></td> <td width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="17%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">-</font></b></td> <td width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="17%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">-</font></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="61%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Addition of contingent consideration</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="17%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">691,250</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="17%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">-</font></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="61%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Ending balance, net</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" width="17%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">691,250</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 1px solid;" width="17%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">-</font></td></tr></table> </div> <div> <table border="0" cellspacing="0"> <tr><td width="22%"> </td> <td width="2%"> </td> <td width="16%"> </td> <td width="16%"> </td> <td width="3%"> </td> <td width="2%"> </td> <td width="16%"> </td> <td width="16%"> </td> <td width="3%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="22%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="16%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2012</font></b></td> <td style="border-bottom: #000000 1px solid; text-align: right;" width="16%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">%</font></td> <td style="border-bottom: #000000 1px solid;" width="3%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="16%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">2011</font></td> <td style="border-bottom: #000000 1px solid; text-align: right;" width="16%" align="center"><font style="text-align: right; font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">%</font></td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td width="22%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Known title claims</font></td> <td width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="16%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">5,166,370</font></b></td> <td width="16%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">13.2</font></b></td> <td width="3%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">%</font></b></td> <td width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="16%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">6,233,501</font></td> <td width="16%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">16.4</font></td> <td width="3%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">%</font></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="22%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">IBNR</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="16%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">33,911,630</font></b></td> <td style="border-bottom: #000000 1px solid;" width="16%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">86.8</font></b></td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">%</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="16%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">31,762,499</font></td> <td style="border-bottom: #000000 1px solid;" width="16%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">83.6</font></td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">%</font></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="22%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Total loss reserves</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" width="16%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">39,078,000</font></b></td> <td style="border-bottom: #000000 1px solid;" width="16%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">100.0</font></b></td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">%</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 1px solid;" width="16%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">37,996,000</font></td> <td style="border-bottom: #000000 1px solid;" width="16%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">100.0</font></td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">%</font></td></tr></table> </div> 15.55 18.84 41.50 50.50 P10Y P5Y 14360 1000 45.64 P5Y2M12D <div> <table border="0" cellspacing="0"> <tr><td width="54%"> </td> <td width="3%"> </td> <td width="20%"> </td> <td width="3%"> </td> <td width="19%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="54%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">For the Years Ended December 31,</font></b></td> <td style="border-bottom: #000000 1px solid;" width="3%" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="20%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2012</font></b></td> <td style="border-bottom: #000000 1px solid;" width="3%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="19%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">2011</font></td></tr> <tr valign="bottom"><td width="54%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Exercise price equal to market price on date of grant:</font></td> <td width="3%" align="right">&nbsp;</td> <td width="20%" align="left">&nbsp;</td> <td width="3%" align="right">&nbsp;</td> <td width="19%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 1px;" width="54%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Weighted-average market price</font></td> <td width="3%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="text-indent: 1px;" width="20%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">50.50</font></b></td> <td width="3%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="text-indent: 1px;" width="19%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">41.50</font></td></tr> <tr valign="bottom"><td style="text-indent: 1px;" width="54%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Weighted-average grant-date fair value</font></td> <td width="3%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="text-indent: 1px;" width="20%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">18.84</font></b></td> <td width="3%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="text-indent: 1px;" width="19%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">15.55</font></td></tr></table> </div> 0.20 0.10 3900 64700 75000 2500 3000 11750 92250 27.97 32.00 33.31 46.25 30.58 27.97 32.00 33.31 36.80 27.97 75000 2500 3000 12500 93000 27.97 32.00 33.31 46.51 30.74 P3Y2M1D P3Y4M21D P4Y4M17D P3Y6M29D P3Y3M7D 27.97 32.00 33.31 58.59 49.04 14112262 14112262 13567648 13567648 14112262 14112262 13567648 13567648 0 0 0 0 0 0 0 0 <div> <div> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="font-style: italic; display: inline; font-size: 9pt; font-weight: bold;" class="_mt">Short-term Investments</font> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Short-term investments comprise money market accounts which are invested in short-term funds, time deposits with banks and savings and loan associations, and other investments expected to have maturities or redemptions greater than&nbsp;<font class="_mt">three</font> months and less than&nbsp;<font class="_mt">twelve</font> months. The Company monitors any events or changes in circumstances that may have a significant adverse effect on the fair value of these investments. </font></p></div> </div> 42288000 44829000 <div> <p style="text-align: left;"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">12. Statutory Accounting</font></b></p> <p style="text-align: left;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">The Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America which differ in some respects from statutory accounting practices prescribed or permitted in the preparation of financial statements for submission to insurance regulatory authorities.</font></p> <p style="text-align: left;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Combined capital and surplus on a statutory basis was $<font class="_mt">102,047,179</font> and $<font class="_mt">93,089,327</font> as of December 31, 2012 and 2011, respectively. Net income on a statutory basis was $<font class="_mt">11,035,792</font> and $<font class="_mt">6,416,684</font> for the twelve months ended December 31, 2012 and 2011, respectively.</font></p> <div>&nbsp;</div><br /> </div> <div> <p style="text-align: left;"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2. Statutory Restrictions on Consolidated Stockholders' Equity and Investments</font></b></p> <p style="text-align: left;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">The Company has designated approximately $<font class="_mt">44,829,000</font> and $<font class="_mt">42,288,000</font> of retained earnings as of December 31, 2012 and 2011, respectively, as appropriated to reflect the required statutory premium and supplemental reserves. See Note 8 for the tax treatment of the statutory premium reserve.</font></p> <p style="text-align: left;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">As of December 31, 2012 and 2011 approximately $<font class="_mt">76,167,000</font> and $<font class="_mt">73,216,000</font>, respectively, of consolidated stockholders' equity represents net assets of the Company's subsidiaries that cannot be transferred in the form of dividends, loans or advances to the parent company under statutory regulations without prior insurance department approval.</font></p> <p style="text-align: left;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Bonds totaling approximately $<font class="_mt">6,700,000</font> and $<font class="_mt">6,704,000</font> at December 31, 2012 and 2011 respectively, are deposited with the insurance departments of the states in which business is conducted.</font></p> </div> 0 446250 0.15 0.15 P10D 250000 0.50 0.50 P90D P60D 12330383 15477545 681000 1011000 640533 1336824 1108156 1037447 6720453 6846706 7563541 8920883 7509165 8818430 338967 468006 213514 213514 74553 74553 214000 75000 73216000 76167000 11500 0 157958463 34245701 0 123712762 171918276 35875428 0 136042848 122069602 36662237 80854965 4552400 124015559 42078581 81004778 932200 20838676 19150414 0 1688262 23799788 21847465 0 1952323 17000 16000 17652745 17652745 21229114 21229114 78783968 41469367 20573562 4552400 12188639 75573673 38658463 18933299 917214 17064697 14735 0 0 930 13805 0 0 0 0 0 204308 64 148616 41823 162485 116442 10455 14750 91237 25205 5763817 663666 3015769 1061202 4702615 4773371 1236906 985250 2551215 2222156 189573 64 148616 40893 148680 116442 10455 14750 91237 25205 4636507 663666 3015769 957072 3679435 4773371 1236906 985250 2551215 2222156 1127310 0 0 104130 1023180 0 0 0 0 0 14328875 15800393 49575672 53834059 2951512 3451336 75573673 8717614 8851190 85407365 15959872 4702615 69447493 0 13242172 2717700 0 67612793 1834700 81936978 19235120 2222156 62701858 0 18302920 932200 0 62701858 0 22549975 22549975 1061202 22549975 0 0 28510933 28510933 2551215 28510933 0 0 85407365 45064447 22548346 4552400 13242172 81936978 41869908 20831950 932200 18302920 65751 528757 593855 529811 386 43199 20459 714168 450461 250 211061 52396 528104 247117 280987 185411 91975 93436 6785882 3595144 1988589 0 1202149 6388510 3211445 1909106 14986 1252973 162485 64 13805 0 148616 41823 162485 25205 0 10455 0 14750 91237 25205 81186220 4706499 -814632 77294353 98999185 5433207 -1343671 94909649 691250 691250 691250 0 0 691250 350000 1041250 1000000 2012-01-01 2012-04-02 0.70 446250 1041250 <div> <div style="margin-left: 21pt; margin-right: 21pt;"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt; font-weight: bold;" class="_mt">18. Agency Acquisition</font> </p> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;">&nbsp;</p> <p style="line-height: normal; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt; font-weight: bold;" class="_mt"> </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">In <font class="_mt">January 2012</font>, a subsidiary of the Company, ITIC, entered into a membership interest purchase and sale agreement under which it agreed to acquire a majority ownership interest of United Title Agency Co., LLC ("United").&nbsp;&nbsp;United, a </font><font style="display: inline; font-size: 9pt;" class="_mt">Michigan</font><font style="display: inline; font-size: 9pt;" class="_mt"> limited liability company, is an insurance agency doing business in the State of </font><font style="display: inline; font-size: 9pt;" class="_mt">Michigan</font><font style="display: inline; font-size: 9pt;" class="_mt">.&nbsp;&nbsp;On <font class="_mt">April 2, 2012</font>, ITIC purchased a <font class="_mt">70</font>% ownership interest in United, with both ITIC and the seller having the option to require ITIC to purchase the remaining <font class="_mt">30</font>% interest not less than 27 months from the closing.&nbsp; </font></p> <p style="line-height: normal; text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt"> </font></p> <p style="text-justify: inter-ideograph; text-align: justify; text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">The acquisition date fair value of the total consideration to be transferred is $<font class="_mt">1,041,250</font>.&nbsp;&nbsp;This fair value total is equal to $<font class="_mt">350,000</font> ITIC has already paid toward the purchase price, as well as $<font class="_mt">691,250</font> in estimated contingent payments.&nbsp;&nbsp;The amount previously paid will be used to offset contingent payment amounts calculated for final consideration, and is eligible for refunding in part or in its entirety if greater than the final settlement amount.</font> </p> <p style="text-justify: inter-ideograph; text-align: justify; line-height: normal; text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt"> </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">The contingent payment arrangement requires that the purchase price for the 70% majority interest be paid over the next two years and determined by multiplying United's actual GAAP net income for the first full 24 calendar months subsequent to closing by an agreed upon factor.&nbsp;&nbsp;In no event will the purchase price for the majority interest exceed $<font class="_mt">1,041,250</font>.&nbsp;&nbsp;The fair value of the contingent payment was derived using the Company's best estimate (Level 3 inputs) of net income of approximately $<font class="_mt">859,000</font> during the 24-month period, discounted at a <font class="_mt">15</font>% rate, and limited to the contractual maximum. The resulting $<font class="_mt">691,250</font> contingent payment is categorized in the Consolidated Balance Sheets as accounts payable and accrued liabilities.&nbsp;&nbsp;As of </font><font style="display: inline; font-size: 9pt;" class="_mt">December 31,</font><font style="display: inline; font-size: 9pt;" class="_mt"> 2012, management's calculation of the fair value of the contingent consideration was materially unchanged from its acquisition date amount.</font> </p> <p style="line-height: normal; text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt"> </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">In the event that ITIC purchases the remaining 30% interest, the purchase price of the redeemable noncontrolling interest will be calculated by multiplying United's GAAP net income for the full 24 calendar months immediately preceding the written notice of the option exercise by an agreed upon factor.&nbsp;&nbsp;The agreement stipulates a minimum purchase price of $<font class="_mt">1,000,000</font> for the entire agency should this option be exercised.</font> </p> <p style="line-height: normal; text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt"> </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">As certain provisions of the membership interest purchase and sale agreement place the acquisition of the remaining 30% by ITIC out of ITIC's control, the noncontrolling interest in United is deemed redeemable.&nbsp;&nbsp;The redeemable noncontrolling interest is presented outside of permanent equity, as redeemable equity in the Consolidated Balance Sheets.&nbsp;&nbsp;On the acquisition date, the fair value of the redeemable noncontrolling interest was $<font class="_mt">446,250</font>. The fair value of the redeemable noncontrolling interest was based on the noncontrolling interest's share of the value of net assets.</font> </p> <p style="line-height: normal; text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"> </p> <p style="line-height: normal; text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt"> </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">The following table provides a reconciliation of total redeemable equity for the periods ended </font><font style="display: inline; font-size: 9pt;" class="_mt">December 31</font><font style="display: inline; font-size: 9pt;" class="_mt">, 2012 and 2011:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">&nbsp;&nbsp;&nbsp;&nbsp; </font></p> <p style="line-height: normal; text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt"> </font></p> <div style="width: 100%;"> <table style="width: 490.5pt; border-collapse: collapse; margin-left: 5.4pt;" cellspacing="0" cellpadding="0"> <tr><td style="border-bottom: #000000 1pt solid; padding-bottom: 0pt; padding-left: 6.5pt; width: 346.5pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="text-indent: 0pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-family: Times New Roman; font-size: 9pt;" class="_mt">Changes</font><font style="display: inline; font-family: Times New Roman; font-size: 9pt;" class="_mt"> in fair value during the period ended:</font></p></td> <td style="border-bottom: #000000 1pt solid; padding-bottom: 0pt; padding-left: 6.5pt; width: 76.5pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="text-align: center; text-indent: 0pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-family: Times New Roman; font-size: 9pt; font-weight: bold;" class="_mt">2012</font></p></td> <td style="border-bottom: #000000 1pt solid; padding-bottom: 0pt; padding-left: 6.5pt; width: 67.5pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="text-align: center; text-indent: 0pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-family: Times New Roman; font-size: 9pt;" class="_mt">2011</font></p></td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 346.5pt; padding-right: 6.5pt; border-top: #000000 1pt solid; padding-top: 0pt;" valign="top"> <p style="text-indent: 0pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-family: Times New Roman; font-size: 9pt;" class="_mt">B</font><font style="display: inline; font-family: Times New Roman; font-size: 9pt;" class="_mt">eginning balance at January 1</font></p></td> <td style="text-align: right; width: 76.5pt; font-family: Times New Roman; font-size: 9pt; border-top: #000000 1pt solid; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;">$</div>0&nbsp; </td> <td style="text-align: right; width: 67.5pt; font-family: Times New Roman; font-size: 9pt; border-top: #000000 1pt solid;" valign="top" nowrap="nowrap"> <div style="float: left;">$</div>0&nbsp; </td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 346.5pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="text-indent: -8.1pt; margin: 0pt 0pt 0pt 8.1pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-family: Times New Roman; font-size: 9pt;" class="_mt">Redeemable noncontrolling interest resulting from subsidiary purchase</font></p></td> <td style="text-align: right; width: 76.5pt; font-family: Times New Roman; font-size: 9pt; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>446,250&nbsp; </td> <td style="text-align: right; width: 67.5pt; font-family: Times New Roman; font-size: 9pt;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>0&nbsp; </td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 346.5pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="text-indent: 0pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-family: Times New Roman; font-size: 9pt;" class="_mt">Net income attributable to redeemable noncontrolling interest</font></p></td> <td style="text-align: right; width: 76.5pt; font-family: Times New Roman; font-size: 9pt; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>88,411&nbsp; </td> <td style="text-align: right; width: 67.5pt; font-family: Times New Roman; font-size: 9pt;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>0&nbsp; </td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 346.5pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="text-indent: 0pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-family: Times New Roman; font-size: 9pt;" class="_mt">Distributions to noncontrolling interest</font></p></td> <td style="text-align: right; width: 76.5pt; font-family: Times New Roman; font-size: 9pt; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>(40,800) </td> <td style="text-align: right; width: 67.5pt; font-family: Times New Roman; font-size: 9pt;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>0&nbsp; </td></tr> <tr><td style="border-bottom: #000000 3px double; padding-bottom: 0pt; padding-left: 6.5pt; width: 346.5pt; padding-right: 6.5pt; border-top: #000000 1pt solid; padding-top: 0pt;" valign="top"> <p style="text-indent: 0pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-family: Times New Roman; font-size: 9pt;" class="_mt">B</font><font style="display: inline; font-family: Times New Roman; font-size: 9pt;" class="_mt">alance, net </font></p></td> <td style="border-bottom: #000000 3px double; text-align: right; width: 76.5pt; font-family: Times New Roman; font-size: 9pt; border-top: #000000 1pt solid; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;">$</div>493,861&nbsp; </td> <td style="border-bottom: #000000 3px double; text-align: right; width: 67.5pt; font-family: Times New Roman; font-size: 9pt; border-top: #000000 1pt solid;" valign="top" nowrap="nowrap"> <div style="float: left;">$</div>0&nbsp; </td></tr></table></div> <p style="line-height: normal; text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt"> </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Fair valuation methods used for the identifiable tangible net assets acquired in that acquisition make use of discounted cash flows using current interest rates.&nbsp;&nbsp;The fair value of identifiable net tangible assets at the acquisition date was $<font class="_mt">5,600</font>.&nbsp;&nbsp;Identifiable assets acquired include cash and fixed assets.&nbsp;&nbsp;Liabilities assumed consisted of notes payable.</font> </p> <p style="line-height: normal; text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt"> </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">The transaction was accounted for using the acquisition method required by ASC 805, <em>Business Combinations</em>.&nbsp;&nbsp;Accordingly, the Company recognized the required identifiable intangible assets of United.&nbsp;&nbsp;There was no goodwill recorded as a result of the acquisition. The fair values of intangible assets, all Level 3 inputs, are principally based on values obtained from a third party valuation service.&nbsp;&nbsp;At acquisition, intangible assets included $<font class="_mt">645,685</font> relating to a non-compete contract resulting from the acquisition and $<font class="_mt">836,215</font> from referral relationships.&nbsp;&nbsp;The non-compete contract is being amortized over a 10-year period using the straight-line method, starting at a future date when the related employment agreement is terminated.&nbsp;&nbsp;The referral relationships are being amortized over a 12-year period using the straight-line method.&nbsp; </font><font style="display: inline; font-size: 9pt;" class="_mt">At December 31, 2012, accumulated amortization </font><font style="display: inline; font-size: 9pt;" class="_mt">of intangible assets </font><font style="display: inline; font-size: 9pt;" class="_mt">is </font><font style="display: inline; font-size: 9pt;" class="_mt">$</font><font class="_mt"><font style="display: inline; font-size: 9pt;" class="_mt">52,263</font></font><font style="display: inline; font-size: 9pt;" class="_mt">.</font><font style="display: inline; font-size: 9pt;" class="_mt"> &nbsp; &nbsp;</font><font style="display: inline; font-size: 9pt;" class="_mt">Net intangible assets </font><font style="display: inline; font-size: 9pt;" class="_mt">of $</font><font class="_mt"><font style="display: inline; font-size: 9pt;" class="_mt">1,429,637</font></font><font style="display: inline; font-size: 9pt;" class="_mt"> are categorized as prepaid expenses and other assets in the Consolidated Balance Sheets as of</font><font style="display: inline; font-size: 9pt;" class="_mt"> December 31</font><font style="display: inline; font-size: 9pt;" class="_mt">, 2012.&nbsp;&nbsp;In accordance with ASC 350, <em>Intangibles&#8211;&#8211;Goodwill and Other</em>, the Company completed interim impairment testing and determined that the intangible assets assigned to United were not impaired at </font><font style="display: inline; font-size: 9pt;" class="_mt">December 31</font><font style="display: inline; font-size: 9pt;" class="_mt">, 2012.</font> </p> <p style="line-height: normal; text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt"> </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">The</font><font style="display: inline; font-size: 9pt;" class="_mt"> amortization of the non-compete contract will</font><font style="display: inline; font-size: 9pt;" class="_mt"> </font><font style="display: inline; font-size: 9pt;" class="_mt">start</font><font style="display: inline; font-size: 9pt;" class="_mt"> at a future date when the related employment agreement is terminated. </font><font style="display: inline; font-size: 9pt;" class="_mt">Assuming that the amortization of the non-complete agreement begins on the first day subsequent to the employment period stated in the current employment agreement, </font><font style="display: inline; font-size: 9pt;" class="_mt">estimated aggregate amortization expense for each of the five succeeding fiscal years</font><font style="display: inline; font-size: 9pt;" class="_mt"> are as follows:</font> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;">&nbsp;</p> <p style="line-height: normal; text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt"> </font></p> <div style="width: 100%;"> <table style="border-collapse: collapse; margin-left: 0pt;" cellspacing="0" cellpadding="0"> <tr><td style="border-bottom: #000000 1pt solid; padding-bottom: 0pt; padding-left: 6.5pt; width: 268.65pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Year Ended:</font></p></td> <td style="border-bottom: #000000 1pt solid; padding-bottom: 0pt; padding-left: 6.5pt; width: 65.25pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 12pt;">&nbsp;</p></td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 268.65pt; padding-right: 6.5pt; border-top: #000000 1pt solid; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">201</font><font style="display: inline; font-size: 9pt;" class="_mt">3</font></p></td> <td style="text-align: right; width: 65.25pt; font-family: Times New Roman; font-size: 9pt; border-top: #000000 1pt solid; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;">$</div>69,685&nbsp; </td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 268.65pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">201</font><font style="display: inline; font-size: 9pt;" class="_mt">4</font></p></td> <td style="text-align: right; width: 65.25pt; font-family: Times New Roman; font-size: 9pt; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>134,253&nbsp; </td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 268.65pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">201</font><font style="display: inline; font-size: 9pt;" class="_mt">5</font></p></td> <td style="text-align: right; width: 65.25pt; font-family: Times New Roman; font-size: 9pt; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>134,253&nbsp; </td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 268.65pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">201</font><font style="display: inline; font-size: 9pt;" class="_mt">6</font></p></td> <td style="text-align: right; width: 65.25pt; font-family: Times New Roman; font-size: 9pt; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>134,253&nbsp; </td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 268.65pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">201</font><font style="display: inline; font-size: 9pt;" class="_mt">7</font></p></td> <td style="text-align: right; width: 65.25pt; font-family: Times New Roman; font-size: 9pt; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>134,253&nbsp; </td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 268.65pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Thereafter</font></p></td> <td style="text-align: right; width: 65.25pt; font-family: Times New Roman; font-size: 9pt; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>822,940&nbsp; </td></tr> <tr><td style="border-bottom: #000000 2.25pt solid; padding-bottom: 0pt; padding-left: 6.5pt; width: 268.65pt; padding-right: 6.5pt; border-top: #000000 1pt solid; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Total</font></p></td> <td style="border-bottom: #000000 2.25pt solid; text-align: right; width: 65.25pt; font-family: Times New Roman; font-size: 9pt; border-top: #000000 1pt solid; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;">$</div>1,429,637&nbsp; </td></tr></table></div> <p style="line-height: normal; text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt"> </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">In the Consolidated Statement of Income, revenues and expenses include the operations of United since April 2, 2012, which is the acquisition date.&nbsp;&nbsp;United was formed as a result of the Company's acquisition, and had no net income prior to the acquisition date.</font> </p> <p style="line-height: normal; text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt"> </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">The Company has not provided historical or pro forma financial information related to the United acquisition because none of the purchase price paid, assets acquired or income of United were significant to the Company under Rules 8-04 or 8-05 of the SEC's Regulation S-X</font><font style="display: inline; font-size: 9pt;" class="_mt">.</font></p></div> </div> 5600 1706834 1887398 18042258 20810018 8117031 18042258 20810018 9925227 2767760 <div> <div> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="font-style: italic; display: inline; font-size: 9pt; font-weight: bold;" class="_mt">Cash and Cash Equivalents</font> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">For the purpose of presentation in the Company's </font><font style="display: inline; font-size: 9pt;" class="_mt">C</font><font style="display: inline; font-size: 9pt;" class="_mt">onsolidated </font><font style="display: inline; font-size: 9pt;" class="_mt">S</font><font style="display: inline; font-size: 9pt;" class="_mt">tatements of </font><font style="display: inline; font-size: 9pt;" class="_mt">C</font><font style="display: inline; font-size: 9pt;" class="_mt">ash </font><font style="display: inline; font-size: 9pt;" class="_mt">F</font><font style="display: inline; font-size: 9pt;" class="_mt">lows, cash equivalents are highly liquid instruments with </font><font style="display: inline; font-size: 9pt;" class="_mt">remaining </font><font style="display: inline; font-size: 9pt;" class="_mt">original maturities of&nbsp;<font class="_mt">three</font> months or less. The carrying amount of cash and cash equivalents is a reasonable estimate of fair value due to the short-term maturity </font><font style="display: inline; font-size: 9pt;" class="_mt">at purchase </font><font style="display: inline; font-size: 9pt;" class="_mt">of these instruments.</font> </p></div> </div> 177000 233000 0 0 <div> <div style="margin-left: 21pt; margin-right: 21pt;"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt; font-weight: bold;" class="_mt"> </font><font style="display: inline; font-size: 9pt; font-weight: bold;" class="_mt">11. Commitments and Contingencies</font> </p> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;">&nbsp;</p> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt"> </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="font-style: italic; display: inline; font-size: 9pt;" class="_mt">Legal Proceedings.</font><font style="display: inline; font-size: 9pt;" class="_mt"> &nbsp; &nbsp;</font><font style="display: inline; font-size: 9pt;" class="_mt">A class action lawsuit is pending in the United States District Court for the Southern District of West Virginia against several title </font><font style="display: inline; font-size: 9pt;" class="_mt">insurance companies, including Investors Title Insurance Company, entitled </font><font style="display: inline; font-size: 9pt; text-decoration: underline;" class="_mt">Backel v. Fidelity National Title Insurance et al</font><font style="display: inline; font-size: 9pt;" class="_mt">. (6:2008-CV-00181).</font><font style="display: inline; font-size: 9pt;" class="_mt"> &nbsp;The plaintiff in this case contends a lack of meaningful oversight by agencies with which title insurance rates are filed and approved.&nbsp;&nbsp;There are further allegations that the title insurance companies have conspired to fix title insurance rates.&nbsp;&nbsp;The plaintiffs seek monetary damages, including treble damages, as well as injunctive relief.&nbsp;&nbsp;Similar suits have been filed in other </font><font style="display: inline; font-size: 9pt;" class="_mt">jurisdictions, several of which</font><font style="display: inline; font-size: 9pt;" class="_mt"> have already been dismissed. In </font><font style="display: inline; font-size: 9pt;" class="_mt">West Virginia</font><font style="display: inline; font-size: 9pt;" class="_mt">, the case has been placed on the inactive list pending the resolution of the bankruptcy of LandAmerica Financial Group, Inc.&nbsp;&nbsp;The Company believes that this case is without merit, and intends to vigorously defend against the allegations. At this stage in the litigation, the Company does not have the ability to make a reasonable range of estimates in regards to potential loss amounts, if any.</font> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;">&nbsp;</p> <p style="line-height: normal; text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt"> </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">The Company and its subsidiaries are </font><font style="display: inline; font-size: 9pt;" class="_mt">also </font><font style="display: inline; font-size: 9pt;" class="_mt">involved in </font><font style="display: inline; font-size: 9pt;" class="_mt">other</font><font style="display: inline; font-size: 9pt;" class="_mt"> legal proceedings that are incidental to their business. In the Company's opinion, based on the present status of these proceedings, any potential liability of the Company or its subsidiaries with respect to these legal proceedings, will not, in the aggregate, be material to the Company's consolidated financial condition or operations. </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;">&nbsp;</p> <p style="line-height: normal; text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt"> </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="font-style: italic; display: inline; font-size: 9pt;" class="_mt">Regulation</font><font style="display: inline; font-size: 9pt;" class="_mt">.&nbsp;&nbsp;The Company's title insurance and trust subsidiaries are regulated by various federal, state and local governmental agencies and are subject to various audits and inquiries.&nbsp;&nbsp;It is the opinion of management that</font><font style="display: inline; font-size: 9pt;" class="_mt">, based on its present expectations,</font><font style="display: inline; font-size: 9pt;" class="_mt"> these audits and inquiries will not have a material impact on the Company's consolidated financial condition or operations.</font> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;">&nbsp;</p> <p style="line-height: normal; text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="background-color: yellow; display: inline; font-size: 9pt;" class="_mt"> </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="font-style: italic; display: inline; font-size: 9pt;" class="_mt">Escrow and Trust Deposits</font><font style="display: inline; font-size: 9pt;" class="_mt">.&nbsp;&nbsp;As a service to its customers, the Company, through ITIC, administers escrow and trust deposits representing earnest money received under real estate contracts, undisbursed amounts received for settlement of mortgage loans and indemnitie</font><font style="display: inline; font-size: 9pt;" class="_mt">s against specific title risks.&nbsp; </font><font style="display: inline; font-size: 9pt;" class="_mt">Cash held by the Company for these purposes was approximately </font><font style="display: inline; font-size: 9pt;" class="_mt">$</font><font class="_mt"><font style="display: inline; font-size: 9pt;" class="_mt">11</font><font style="display: inline; font-size: 9pt;" class="_mt">,</font><font style="display: inline; font-size: 9pt;" class="_mt">6</font><font style="display: inline; font-size: 9pt;" class="_mt">89,</font><font style="display: inline; font-size: 9pt;" class="_mt">000</font></font><font style="display: inline; font-size: 9pt;" class="_mt"> and $</font><font class="_mt"><font style="display: inline; font-size: 9pt;" class="_mt">15,562,000</font></font><font style="display: inline; font-size: 9pt;" class="_mt"> as of December 31, 201</font><font style="display: inline; font-size: 9pt;" class="_mt">2</font><font style="display: inline; font-size: 9pt;" class="_mt"> and 20</font><font style="display: inline; font-size: 9pt;" class="_mt">1</font><font style="display: inline; font-size: 9pt;" class="_mt">1</font><font style="display: inline; font-size: 9pt;" class="_mt">, respectively.&nbsp;&nbsp;These amounts are not considered assets of the Company and are excluded from the accompanying </font><font style="display: inline; font-size: 9pt;" class="_mt">C</font><font style="display: inline; font-size: 9pt;" class="_mt">onsolidated </font><font style="display: inline; font-size: 9pt;" class="_mt">B</font><font style="display: inline; font-size: 9pt;" class="_mt">alance </font><font style="display: inline; font-size: 9pt;" class="_mt">S</font><font style="display: inline; font-size: 9pt;" class="_mt">heets.&nbsp;&nbsp;However, the Company remains contingently liable for the disposition of these deposits.</font> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;">&nbsp;</p> <p style="line-height: normal; text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="background-color: yellow; display: inline; font-size: 9pt;" class="_mt"> </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="font-style: italic; display: inline; font-size: 9pt;" class="_mt">Like-Kind Exchange Proceeds</font><font style="display: inline; font-size: 9pt;" class="_mt">.&nbsp;&nbsp;In administering tax-deferred property exchanges, the Company's subsidiary, </font><font style="display: inline; font-size: 9pt;" class="_mt">Investors Title Exchange Corporation ("</font><font style="display: inline; font-size: 9pt;" class="_mt">ITEC</font><font style="display: inline; font-size: 9pt;" class="_mt">")</font><font style="display: inline; font-size: 9pt;" class="_mt">, serves as a qualified intermediary for exchanges, holding the net </font><font style="display: inline; font-size: 9pt;" class="_mt">sales </font><font style="display: inline; font-size: 9pt;" class="_mt">proceeds from relinquished property to be used for purchase of replacement property.&nbsp;&nbsp;Another Company subsidiary,</font><font style="display: inline; font-size: 9pt;" class="_mt"> Investors Title Accommodation Corporation ("</font><font style="display: inline; font-size: 9pt;" class="_mt">ITAC</font><font style="display: inline; font-size: 9pt;" class="_mt">")</font><font style="display: inline; font-size: 9pt;" class="_mt">, serves as exchange accommodation titleholder and, through limited liability companies ("LLCs") that are wholly owned subsidiaries of ITAC, holds property for exchangers in reverse exchange transactions. Like-kind exchange deposits and reverse exchange property totaled approximately</font><font style="display: inline; font-size: 9pt;" class="_mt"> $<font class="_mt">55,580,000</font> and </font><font style="display: inline; font-size: 9pt;" class="_mt">$</font><font class="_mt"><font style="display: inline; font-size: 9pt;" class="_mt">35,359,000</font></font><font style="display: inline; font-size: 9pt;" class="_mt"> as of December 31, 201</font><font style="display: inline; font-size: 9pt;" class="_mt">2</font><font style="display: inline; font-size: 9pt;" class="_mt"> and 20</font><font style="display: inline; font-size: 9pt;" class="_mt">1</font><font style="display: inline; font-size: 9pt;" class="_mt">1</font><font style="display: inline; font-size: 9pt;" class="_mt">, respectively</font><font style="display: inline; font-size: 9pt;" class="_mt">. These amounts are not considered assets of the Company and, therefore, are excluded from the accompanying </font><font style="display: inline; font-size: 9pt;" class="_mt">C</font><font style="display: inline; font-size: 9pt;" class="_mt">onsolidated </font><font style="display: inline; font-size: 9pt;" class="_mt">B</font><font style="display: inline; font-size: 9pt;" class="_mt">alance </font><font style="display: inline; font-size: 9pt;" class="_mt">S</font><font style="display: inline; font-size: 9pt;" class="_mt">heets; however, the Company remains contingently liable for the disposition of the transfers of property, disbursements of proceeds and the return on the proceeds at the agreed upon rate. Exchange services revenues include earnings on these deposits; therefore, investment income is shown as exchange services revenue, rather than investment income. These like-kind exchange funds are primarily invested in money market and other short-term investments</font><font style="display: inline; font-size: 9pt;" class="_mt">.</font> </p></div> </div> 0.28 0.29 10000000 10000000 2107681 2043359 2107681 2043359 1 1 8754396 12411761 0 88411 8754396 12500172 <div> <div> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="font-style: italic; display: inline; font-size: 9pt; font-weight: bold;" class="_mt">Comprehensive Income</font> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">The Company's accumulated other comprehensive income is comprised of unrealized holding gains/losses on available-for-sale securities, net of tax, and unrecognized prior service cost and unrealized gains/losses associated with postretirement benefit liabilities, net of tax.</font><font style="display: inline; font-size: 9pt;" class="_mt"> &nbsp;Accumulated other comprehensive income as of December 31, 201</font><font style="display: inline; font-size: 9pt;" class="_mt">2</font><font style="display: inline; font-size: 9pt;" class="_mt">&nbsp;</font><font style="display: inline; font-size: 9pt;" class="_mt">consists of $</font><font class="_mt"><font style="display: inline; font-size: 9pt;" class="_mt">8,920,883</font></font><font style="display: inline; font-size: 9pt;" class="_mt">&nbsp;</font><font style="display: inline; font-size: 9pt;" class="_mt">of</font><font style="display: inline; font-size: 9pt;" class="_mt"> unrealized holding gains on available-for-sale securities </font><font style="display: inline; font-size: 9pt;" class="_mt">and $</font><font class="_mt"><font style="display: inline; font-size: 9pt;" class="_mt">102,453</font></font><font style="display: inline; font-size: 9pt;" class="_mt"> of unrecognized prior s</font><font style="display: inline; font-size: 9pt;" class="_mt">ervice cost and </font><font style="display: inline; font-size: 9pt;" class="_mt">unrecognized actuarial </font><font style="display: inline; font-size: 9pt;" class="_mt">losses</font><font style="display: inline; font-size: 9pt;" class="_mt"> associated with postretirement benefit liabilities.&nbsp;&nbsp;Accumulated other comprehensive income as of December 31, 20</font><font style="display: inline; font-size: 9pt;" class="_mt">11</font><font style="display: inline; font-size: 9pt;" class="_mt"> consists of $</font><font class="_mt"><font style="display: inline; font-size: 9pt;" class="_mt">7,563,541</font></font><font style="display: inline; font-size: 9pt;" class="_mt"> of unrealized holding gains on available-for-sale securities and $</font><font class="_mt"><font style="display: inline; font-size: 9pt;" class="_mt">54,376</font></font><font style="display: inline; font-size: 9pt;" class="_mt">&nbsp;</font><font style="display: inline; font-size: 9pt;" class="_mt">of unrecognized prior service cost and unrealized </font><font style="display: inline; font-size: 9pt;" class="_mt">losses</font><font style="display: inline; font-size: 9pt;" class="_mt"> associated with postretirement benefit liabilities.</font> </p></div> </div> <div> <div style="margin-left: 21pt; margin-right: 21pt;"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt; font-weight: bold;" class="_mt"> </font><font style="display: inline; font-size: 9pt; font-weight: bold;" class="_mt">15. </font><font style="display: inline; font-size: 9pt; font-weight: bold;" class="_mt">Concentration of </font><font style="display: inline; font-size: 9pt; font-weight: bold;" class="_mt">Credit </font><font style="display: inline; font-size: 9pt; font-weight: bold;" class="_mt">Risk</font> </p> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;">&nbsp;</p> <p style="line-height: normal; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt; font-weight: bold;" class="_mt"> </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents.&nbsp;&nbsp;The Company invests its cash and cash equivalents into high credit quality security instruments.&nbsp;&nbsp;On November 9, 2010, the Federal Deposit Insurance Corporation, ("FDIC") issued a Final Rule implementing section 343 of the Dodd-Frank Wall Street Reform and Consumer Protection Act that provides for unlimited insurance coverage of noninterest-bearing transaction accounts.&nbsp;&nbsp;Beginning December 31, 2010, through December 31, 2012, all noninterest bearing transaction accounts are fully insured, regardless of the balance of the account, at all FDIC insured institutions.&nbsp;&nbsp;All other deposits which exceed $<font class="_mt">250,000</font>, including noninterest bearing transaction accounts prior to December 31, 2010, at each institution are not insured by the FDIC.&nbsp;&nbsp;Of the $</font><font class="_mt"><font style="display: inline; font-size: 9pt;" class="_mt">20.8</font></font><font style="display: inline; font-size: 9pt;" class="_mt"> million in cash and cash equivalents on the Consolidated Balance Sheets at December 31, </font><font style="display: inline; font-size: 9pt;" class="_mt">201</font><font style="display: inline; font-size: 9pt;" class="_mt">2</font><font style="display: inline; font-size: 9pt;" class="_mt">, $</font><font class="_mt"><font style="display: inline; font-size: 9pt;" class="_mt">3.2</font></font><font style="display: inline; font-size: 9pt;" class="_mt"> million</font><font style="display: inline; font-size: 9pt;" class="_mt"> was not insured by the FDIC.&nbsp;&nbsp;Of the $</font><font class="_mt"><font style="display: inline; font-size: 9pt;" class="_mt">18.0</font></font><font style="display: inline; font-size: 9pt;" class="_mt"> million in cash and cash equivalents at December 31, 20</font><font style="display: inline; font-size: 9pt;" class="_mt">1</font><font style="display: inline; font-size: 9pt;" class="_mt">1</font><font style="display: inline; font-size: 9pt;" class="_mt">, $</font><font class="_mt"><font style="display: inline; font-size: 9pt;" class="_mt">1.2</font></font><font style="display: inline; font-size: 9pt;" class="_mt"> million was not insured by </font><font style="display: inline; font-size: 9pt;" class="_mt">the </font><font style="display: inline; font-size: 9pt;" class="_mt">FDIC.</font> </p> <p style="line-height: normal; text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt"> </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">As scheduled, the unlimited insurance coverage for noninterest-bearing transaction accounts provided under the Dodd-Frank Wall Street Reform and Consumer Protection Act expired on December 31, 2012.&nbsp;&nbsp;Deposits held in noninterest-bearing transaction accounts are now aggregated with any interest-bearing deposits the owner may hold in the same ownership category, and the combined total insured up to at least $<font class="_mt">250,000</font>. Of the $20.8 million in cash and cash equivalents on the Consolidated Balance Sheets at December 31, 2012, $<font class="_mt">20.3</font> million was not insured by the FDIC after the expiration of unlimited coverage for noninterest-bearing transaction accounts.</font></p></div> </div> 0.226 0.266 0.322 0.140 0.305 0.248 <div> <div> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt; text-decoration: underline;" class="_mt">Principles of Consolidation and Basis of Presentation</font><font style="display: inline; font-size: 9pt;" class="_mt">&#8212;</font><font style="display: inline; font-size: 9pt;" class="_mt"> The accompanying Consolidated Financial Statements include the accounts and operations of Investors Title Company and its subsidiaries, and have been prepared in accordance with generally accepted accounting principles </font><font style="display: inline; font-size: 9pt;" class="_mt">in the </font><font style="display: inline; font-size: 9pt;" class="_mt">United States</font><font style="display: inline; font-size: 9pt;" class="_mt">&nbsp;</font><font style="display: inline; font-size: 9pt;" class="_mt">("GAAP") </font><font style="display: inline; font-size: 9pt;" class="_mt">.&nbsp;&nbsp;&nbsp;Earnings attributable to the redeemable noncontrolling interest are recorded on the Consolidated Statement of Income for majority-owned subsidiaries. The redeemable noncontrolling interest representing the portion of equity not related to the Company's ownership interest is recorded as redeemable equity in a separate section of the Consolidated Balance Sheets.&nbsp;&nbsp;All intercompany balances and transactions have been eliminated in consolidation.</font> </p></div> </div> 1303887 1871315 1688262 0 0 1688262 1952323 0 0 1952323 2515000 5018000 2544000 5181000 29000 163000 28131 -305525 21000 -292000 4526896 5406241 -7131 13525 5194 0 4047533 4513085 -479363 -893156 30000 12000 491479 410052 2491168 2889350 28026 52791 38969 19087 414120 641920 434929 344701 290318 399217 279870 317722 3956708 4687264 5740000 6303000 -19977 82392 155234 54376 102453 115089 82918 318 -680 -6293 -1518 13038 9396 4775 0 0 429695 588894 712296 125242 8275 164775 10960 100231 3993 9489 5395 4930 4462 24607 27867 56830 50560 19503 12617 479000 518000 475679 486922 <div> <div> <div> <table border="0" cellspacing="0"> <tr><td width="2%"> </td> <td width="7%"> </td> <td width="3%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="15%"> </td> <td width="15%"> </td> <td width="3%"> </td> <td width="9%"> </td> <td width="16%"> </td> <td width="2%"> </td> <td width="9%"> </td></tr> <tr valign="bottom"><td align="right">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" colspan="3" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Options Outstanding at Year-End</font></td> <td style="border-bottom: #000000 1px solid;" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" colspan="3" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Options Exercisable at Year-End</font></td></tr> <tr valign="bottom"><td align="right">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Weighted</font></td> <td colspan="2" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Weighted</font></td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Weighted</font></td></tr> <tr valign="bottom"><td align="right">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Average</font></td> <td colspan="2" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Average</font></td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Average</font></td></tr> <tr valign="bottom"><td align="right">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Number</font></td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Remaining</font></td> <td colspan="2" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Exercise</font></td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Number</font></td> <td align="center">&nbsp;</td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Exercise</font></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" colspan="4" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Range of Exercise Prices</font></td> <td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Outstanding</font></td> <td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Contractual Life</font></td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Price</font></td> <td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Exercisable</font></td> <td style="border-bottom: #000000 1px solid;" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Price</font></td></tr> <tr valign="bottom"><td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">20.00</font></b></td> <td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">-</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">27.96</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2,400</font></b></td> <td style="text-indent: 13px;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0.76</font></b></td> <td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="text-indent: 3px;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">25.54</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2,400</font></b></td> <td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="text-indent: 7px;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">25.54</font></b></td></tr> <tr valign="bottom"><td align="right">&nbsp;</td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">27.98</font></b></td> <td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">-</font></b></td> <td align="right">&nbsp;</td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">31.99</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">750</font></b></td> <td style="text-indent: 13px;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">1.07</font></b></td> <td align="left">&nbsp;</td> <td style="text-indent: 3px;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">31.20</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">500</font></b></td> <td align="left">&nbsp;</td> <td style="text-indent: 6px;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">31.27</font></b></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">33.32</font></b></td> <td style="border-bottom: #000000 1px solid;" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">-</font></b></td> <td style="border-bottom: #000000 1px solid;" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">36.79</font></b></td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2,000</font></b></td> <td style="border-bottom: #000000 1px solid; text-indent: 13px;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2.38</font></b></td> <td style="border-bottom: #000000 1px solid;" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid; text-indent: 3px;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">36.79</font></b></td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2,000</font></b></td> <td style="border-bottom: #000000 1px solid;" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid; text-indent: 6px;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">36.79</font></b></td></tr> <tr valign="bottom"><td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">10.00</font></b></td> <td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">-</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">36.79</font></b></td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">5,150</font></b></td> <td style="text-indent: 13px;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">1.43</font></b></td> <td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="text-indent: 3px;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">30.73</font></b></td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">4,900</font></b></td> <td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="text-indent: 7px;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">30.72</font></b></td></tr></table></div> <p style="margin: 0px;">&nbsp;</p> <div> <table border="0" cellspacing="0"> <tr><td width="2%"> </td> <td width="7%"> </td> <td width="3%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="15%"> </td> <td width="15%"> </td> <td width="3%"> </td> <td width="10%"> </td> <td width="15%"> </td> <td width="2%"> </td> <td width="9%"> </td></tr> <tr valign="bottom"><td align="right">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" colspan="3" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">SARs Outstanding at Year-End</font></td> <td style="border-bottom: #000000 1px solid;" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" colspan="3" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">SARs Exercisable at Year-End</font></td></tr> <tr valign="bottom"><td align="right">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Weighted</font></td> <td colspan="2" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Weighted</font></td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Weighted</font></td></tr> <tr valign="bottom"><td align="right">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Average</font></td> <td colspan="2" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Average</font></td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Average</font></td></tr> <tr valign="bottom"><td align="right">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center">&nbsp;</td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Number</font></td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Remaining</font></td> <td colspan="2" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Exercise</font></td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Number</font></td> <td align="center">&nbsp;</td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Exercise</font></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" colspan="4" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Range of Exercise Prices</font></td> <td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Outstanding</font></td> <td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Contractual Life</font></td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Price</font></td> <td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Exercisable</font></td> <td style="border-bottom: #000000 1px solid;" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Price</font></td></tr> <tr valign="bottom"><td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">27.97</font></b></td> <td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">-</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">27.97</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">75,000</font></b></td> <td style="text-indent: 13px;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">3.17</font></b></td> <td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="text-indent: 3px;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">27.97</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">75,000</font></b></td> <td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="text-indent: 7px;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">27.97</font></b></td></tr> <tr valign="bottom"><td align="right">&nbsp;</td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">32.00</font></b></td> <td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">-</font></b></td> <td align="right">&nbsp;</td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">32.00</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2,500</font></b></td> <td style="text-indent: 13px;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">3.39</font></b></td> <td align="left">&nbsp;</td> <td style="text-indent: 3px;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">32.00</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2,500</font></b></td> <td align="left">&nbsp;</td> <td style="text-indent: 6px;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">32.00</font></b></td></tr> <tr valign="bottom"><td align="right">&nbsp;</td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">33.31</font></b></td> <td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">-</font></b></td> <td align="right">&nbsp;</td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">33.31</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">3,000</font></b></td> <td style="text-indent: 13px;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">4.38</font></b></td> <td align="left">&nbsp;</td> <td style="text-indent: 3px;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">33.31</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">3,000</font></b></td> <td align="left">&nbsp;</td> <td style="text-indent: 6px;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">33.31</font></b></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">36.80</font></b></td> <td style="border-bottom: #000000 1px solid;" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">-</font></b></td> <td style="border-bottom: #000000 1px solid;" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">58.59</font></b></td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">12,500</font></b></td> <td style="border-bottom: #000000 1px solid; text-indent: 13px;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">3.58</font></b></td> <td style="border-bottom: #000000 1px solid;" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid; text-indent: 3px;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">46.51</font></b></td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">11,750</font></b></td> <td style="border-bottom: #000000 1px solid;" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid; text-indent: 6px;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">46.25</font></b></td></tr> <tr valign="bottom"><td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">27.97</font></b></td> <td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">-</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">49.04</font></b></td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">93,000</font></b></td> <td style="text-indent: 13px;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">3.27</font></b></td> <td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="text-indent: 3px;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">30.74</font></b></td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">92,250</font></b></td> <td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="text-indent: 7px;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">30.58</font></b></td></tr></table></div></div> </div> 599241 599241 603334 603334 3.22 5.33 3.20 5.24 0.34 24000 P4M <div> <div> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="font-style: italic; display: inline; font-size: 9pt; font-weight: bold;" class="_mt">Other Investments</font> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Other investments consist primarily of investments in title insurance agencies structured as limited liability companies ("LLCs"), which are accounted for under the equity or cost method</font><font style="display: inline; font-size: 9pt;" class="_mt">s</font><font style="display: inline; font-size: 9pt;" class="_mt"> of accounting. The aggregate cost of the Company's cost method investments </font><font style="display: inline; font-size: 9pt;" class="_mt">totaled $</font><font class="_mt"><font style="display: inline; font-size: 9pt;" class="_mt">1,778,115</font></font><font style="display: inline; font-size: 9pt;" class="_mt"> and $</font><font class="_mt"><font style="display: inline; font-size: 9pt;" class="_mt">1,210,687</font></font><font style="display: inline; font-size: 9pt;" class="_mt"> at December 31, 201</font><font style="display: inline; font-size: 9pt;" class="_mt">2</font><font style="display: inline; font-size: 9pt;" class="_mt"> and December 31, 20</font><font style="display: inline; font-size: 9pt;" class="_mt">1</font><font style="display: inline; font-size: 9pt;" class="_mt">1</font><font style="display: inline; font-size: 9pt;" class="_mt">, respectively. The Company monitors any events or changes in circumstances that may have had a significant adverse effect on the fair value of these investments and makes any necessary adjustments.</font> </p></div> </div> <div> <div> <table border="0" cellspacing="0"> <tr><td width="17%"> </td> <td width="12%"> </td> <td width="11%"> </td> <td width="1%"> </td> <td width="8%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="1%"> </td> <td width="8%"> </td> <td width="1%"> </td> <td width="8%"> </td> <td width="1%"> </td></tr> <tr valign="bottom"><td width="17%" align="left">&nbsp;</td> <td width="12%" align="center">&nbsp;</td> <td width="11%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td> <td width="8%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td> <td width="9%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td> <td width="10%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td> <td width="8%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Total at</font></b></td> <td width="1%" align="center">&nbsp;</td> <td width="8%" align="center">&nbsp;</td> <td width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td width="17%" align="left">&nbsp;</td> <td width="12%" align="center">&nbsp;</td> <td width="11%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td> <td width="8%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td> <td width="9%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td> <td width="10%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td> <td width="8%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Estimated</font></b></td> <td width="1%" align="center">&nbsp;</td> <td width="8%" align="center">&nbsp;</td> <td width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td width="17%" align="left">&nbsp;</td> <td width="12%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Valuation</font></b></td> <td width="11%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td> <td width="8%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td> <td width="9%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td> <td width="10%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td> <td width="8%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Fair</font></b></td> <td width="1%" align="center">&nbsp;</td> <td width="8%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Impairment</font></b></td> <td width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="17%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">December 31, 2012</font></b></td> <td style="border-bottom: #000000 1px solid;" width="12%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Method</font></b></td> <td style="border-bottom: #000000 1px solid;" width="11%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Impaired</font></b></td> <td style="border-bottom: #000000 1px solid;" width="9%" colspan="2" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Level 1</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="9%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Level 2</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Level 3</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Value</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Losses</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td width="17%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Cost method</font></b></td> <td width="12%" align="left">&nbsp;</td> <td width="11%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="9%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="10%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 1px;" width="17%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">investments</font></b></td> <td width="12%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Fair Value</font></b></td> <td width="11%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Yes</font></b></td> <td width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="8%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="text-indent: 8px;" width="9%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="10%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">36,406</font></b></td> <td width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="8%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">36,406</font></b></td> <td style="text-indent: 1px;" width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="8%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">(6,504</font></b></td> <td width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></b></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="17%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Other assets</font></b></td> <td style="border-bottom: #000000 1px solid;" width="12%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Fair Value</font></b></td> <td style="border-bottom: #000000 1px solid;" width="11%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Yes</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid; text-indent: 8px;" width="9%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td width="17%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Total cost method</font></b></td> <td width="12%" align="left">&nbsp;</td> <td width="11%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="8%" align="right">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="9%" align="right">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="10%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 1px;" width="17%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">investments and</font></b></td> <td width="12%" align="left">&nbsp;</td> <td width="11%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="8%" align="right">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="9%" align="right">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="10%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 1px;" width="17%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">other assets</font></b></td> <td style="border-bottom: #000000 3px double;" width="12%" align="left">&nbsp;</td> <td style="border-bottom: #000000 3px double;" width="11%" align="left">&nbsp;</td> <td style="border-bottom: #000000 3px double;" width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 3px double;" width="8%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td style="border-bottom: #000000 3px double;" width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 3px double; text-indent: 8px;" width="9%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td style="border-bottom: #000000 3px double;" width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 3px double;" width="10%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">36,406</font></b></td> <td style="border-bottom: #000000 3px double;" width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 3px double;" width="8%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">36,406</font></b></td> <td style="border-bottom: #000000 3px double; text-indent: 1px;" width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 3px double;" width="8%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">(6,504</font></b></td> <td style="border-bottom: #000000 3px double;" width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></b></td></tr> <tr><td width="89%" colspan="14">&nbsp;</td></tr> <tr valign="bottom"><td width="17%" align="left">&nbsp;</td> <td width="12%" align="center">&nbsp;</td> <td width="11%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td> <td width="8%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td> <td width="9%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td> <td width="10%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td> <td width="8%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Total at</font></td> <td width="1%" align="center">&nbsp;</td> <td width="8%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td></tr> <tr valign="bottom"><td width="17%" align="left">&nbsp;</td> <td width="12%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Valuation</font></td> <td width="11%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td> <td width="8%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td> <td width="9%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td> <td width="10%" align="center">&nbsp;</td> <td width="1%" align="center">&nbsp;</td> <td width="8%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Estimated</font></td> <td width="1%" align="center">&nbsp;</td> <td width="8%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Impairment</font></td> <td width="1%" align="center">&nbsp;</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="17%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">December 31, 2011</font></td> <td style="border-bottom: #000000 1px solid;" width="12%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Method</font></td> <td style="border-bottom: #000000 1px solid;" width="11%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Impaired</font></td> <td style="border-bottom: #000000 1px solid;" width="9%" colspan="2" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Level 1</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="9%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Level 2</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Level 3</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Fair Value</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Losses</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center">&nbsp;</td></tr> <tr valign="bottom"><td width="17%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Cost method</font></td> <td width="12%" align="left">&nbsp;</td> <td width="11%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="9%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="10%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 1px;" width="17%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">investments</font></td> <td width="12%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Fair Value</font></td> <td width="11%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Yes</font></td> <td width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></td> <td width="1%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="text-indent: 8px;" width="9%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></td> <td width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="10%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">58,281</font></td> <td width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">58,281</font></td> <td width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(28,904</font></td> <td width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="17%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Other assets</font></td> <td style="border-bottom: #000000 1px solid;" width="12%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Fair Value</font></td> <td style="border-bottom: #000000 1px solid;" width="11%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Yes</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid; text-indent: 8px;" width="9%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">17,000</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">17,000</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(15,500</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></td></tr> <tr valign="bottom"><td width="17%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Total cost method</font></td> <td width="12%" align="left">&nbsp;</td> <td width="11%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="8%" align="right">&nbsp;</td> <td width="1%" align="right">&nbsp;</td> <td width="9%" align="right">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="10%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 1px;" width="17%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">investments and other</font></td> <td width="12%" align="left">&nbsp;</td> <td width="11%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="8%" align="right">&nbsp;</td> <td width="1%" align="right">&nbsp;</td> <td width="9%" align="right">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="10%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 1px;" width="17%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">assets</font></td> <td style="border-bottom: #000000 1px solid;" width="12%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="11%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 1px solid; text-indent: 8px;" width="9%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">75,281</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">75,281</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(44,404</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></td></tr></table></div> </div> <div> <div> <div> <table border="0" cellspacing="0"> <tr><td width="42%"> </td> <td width="2%"> </td> <td width="13%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td> <td width="11%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="42%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">As of December 31, 2012</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="13%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Level 1</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="11%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Level 2</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="9%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Level 3</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid; text-indent: 4px;" width="11%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Total</font></td></tr> <tr valign="bottom"><td width="42%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Short Term</font></td> <td width="2%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="13%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">13,567,648</font></b></td> <td width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="11%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="9%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td width="2%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="11%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">13,567,648</font></b></td></tr> <tr valign="bottom"><td width="42%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Equity Securities</font></td> <td width="2%" align="right">&nbsp;</td> <td width="13%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="11%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="9%" align="left">&nbsp;</td> <td width="2%" align="right">&nbsp;</td> <td width="11%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="42%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Common stock and nonredeemable preferred stock</font></td> <td width="2%" align="right">&nbsp;</td> <td width="13%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">28,510,933</font></b></td> <td width="2%" align="left">&nbsp;</td> <td width="11%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td width="2%" align="left">&nbsp;</td> <td width="9%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td width="2%" align="right">&nbsp;</td> <td width="11%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">28,510,933</font></b></td></tr> <tr valign="bottom"><td width="42%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Fixed Maturities</font></td> <td width="2%" align="right">&nbsp;</td> <td width="13%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="11%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="9%" align="left">&nbsp;</td> <td width="2%" align="right">&nbsp;</td> <td width="11%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="42%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Obligations of U.S. States, territories and political subdivisions*</font></td> <td width="2%" align="right">&nbsp;</td> <td width="13%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td width="2%" align="left">&nbsp;</td> <td width="11%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">62,701,858</font></b></td> <td width="2%" align="left">&nbsp;</td> <td width="9%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td width="2%" align="right">&nbsp;</td> <td width="11%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">62,701,858</font></b></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="42%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Corporate debt securities*</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">18,302,920</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="9%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">932,200</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">19,235,120</font></b></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 2px solid;" width="42%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Total</font></td> <td style="border-bottom: #000000 2px solid;" width="2%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 2px solid;" width="13%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">42,078,581</font></b></td> <td style="border-bottom: #000000 2px solid;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 2px solid;" width="11%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">81,004,778</font></b></td> <td style="border-bottom: #000000 2px solid;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 2px solid;" width="9%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">932,200</font></b></td> <td style="border-bottom: #000000 2px solid;" width="2%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 2px solid;" width="11%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">124,015,559</font></b></td></tr></table></div> <p style="margin: 0px;">&nbsp;</p> <div> <table border="0" cellspacing="0"> <tr><td width="42%"> </td> <td width="2%"> </td> <td width="13%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td> <td width="11%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="42%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">As of December 31, 2011</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid; text-indent: 3px;" width="13%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Level 1</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid; text-indent: 3px;" width="12%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Level 2</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="9%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Level 3</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid; text-indent: 4px;" width="11%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Total</font></td></tr> <tr valign="bottom"><td width="42%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Short Term</font></td> <td width="2%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="13%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">14,112,262</font></td> <td width="2%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="12%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></td> <td width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="9%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></td> <td width="2%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="11%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">14,112,262</font></td></tr> <tr valign="bottom"><td width="42%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Equity Securities</font></td> <td width="2%" align="right">&nbsp;</td> <td width="13%" align="left">&nbsp;</td> <td width="2%" align="right">&nbsp;</td> <td width="12%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="9%" align="left">&nbsp;</td> <td width="2%" align="right">&nbsp;</td> <td width="11%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="42%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Common stock and nonredeemable preferred stock</font></td> <td width="2%" align="right">&nbsp;</td> <td width="13%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">22,549,975</font></td> <td width="2%" align="right">&nbsp;</td> <td width="12%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></td> <td width="2%" align="left">&nbsp;</td> <td width="9%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></td> <td width="2%" align="right">&nbsp;</td> <td width="11%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">22,549,975</font></td></tr> <tr valign="bottom"><td width="42%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Fixed Maturities</font></td> <td width="2%" align="right">&nbsp;</td> <td width="13%" align="left">&nbsp;</td> <td width="2%" align="right">&nbsp;</td> <td width="12%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="9%" align="left">&nbsp;</td> <td width="2%" align="right">&nbsp;</td> <td width="11%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="42%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Obligations of U.S. States, territories and political subdivisions*</font></td> <td width="2%" align="right">&nbsp;</td> <td width="13%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></td> <td width="2%" align="right">&nbsp;</td> <td width="12%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">67,612,793</font></td> <td width="2%" align="left">&nbsp;</td> <td width="9%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">1,834,700</font></td> <td width="2%" align="right">&nbsp;</td> <td width="11%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">69,447,493</font></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="42%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Corporate debt securities*</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">13,242,172</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="9%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">2,717,700</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">15,959,872</font></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 2px solid;" width="42%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Total</font></td> <td style="border-bottom: #000000 2px solid;" width="2%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 2px solid;" width="13%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">36,662,237</font></td> <td style="border-bottom: #000000 2px solid;" width="2%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 2px solid;" width="12%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">80,854,965</font></td> <td style="border-bottom: #000000 2px solid;" width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 2px solid;" width="9%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">4,552,400</font></td> <td style="border-bottom: #000000 2px solid;" width="2%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 2px solid;" width="11%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">122,069,602</font></td></tr></table></div> <p style="margin: 0px;">&nbsp;</p> <p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">*<font class="_mt">Denotes fair market value obtained from pricing services.</font></font></p></div> </div> <div> <table border="0" cellspacing="0"> <tr><td width="64%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="10%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="64%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Changes in fair value during the year ended December 31:</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="12%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2012</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">2011</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td width="64%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Beginning balance at January 1</font></td> <td width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">4,552,400</font></b></td> <td width="2%" align="left">&nbsp;</td> <td width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="10%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">5,472,244</font></td> <td width="2%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td width="64%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Redemptions and sales</font></td> <td width="2%" align="left">&nbsp;</td> <td width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">(3,900,000</font></b></td> <td width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></b></td> <td width="2%" align="left">&nbsp;</td> <td width="10%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(900,000</font></td> <td width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></td></tr> <tr valign="bottom"><td width="64%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Realized gain &#8211; included in net realized gain on investments</font></td> <td width="2%" align="left">&nbsp;</td> <td width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">211,061</font></b></td> <td width="2%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="10%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">43,199</font></td> <td width="2%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td width="64%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Realized loss &#8211; included in net realized gain on investments</font></td> <td width="2%" align="left">&nbsp;</td> <td width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td width="2%" align="left">&nbsp;</td> <td width="2%" align="left">&nbsp;</td> <td width="10%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(101,861</font></td> <td width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="64%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Unrealized gain - included in other comprehensive income</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">68,739</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">38,818</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="64%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Ending balance at December 31</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">932,200</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">4,552,400</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td></tr></table> </div> 0.15 38818 68739 -900000 -3900000 5472244 4552400 932200 691250 691250 <div> <div> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="font-style: italic; display: inline; font-size: 9pt; font-weight: bold;" class="_mt">Fair Values of Financial Instruments</font> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">The carrying amounts reported in the </font><font style="display: inline; font-size: 9pt;" class="_mt">C</font><font style="display: inline; font-size: 9pt;" class="_mt">onsolidated </font><font style="display: inline; font-size: 9pt;" class="_mt">B</font><font style="display: inline; font-size: 9pt;" class="_mt">alance </font><font style="display: inline; font-size: 9pt;" class="_mt">S</font><font style="display: inline; font-size: 9pt;" class="_mt">heets</font><font style="display: inline; font-size: 9pt;" class="_mt"> for cash and cash equivalents, </font><font style="display: inline; font-size: 9pt;" class="_mt">short-term investments, premium and fees</font><font style="display: inline; font-size: 9pt;" class="_mt"> receivable, accrued interest and dividends, accounts payable, commissions </font><font style="display: inline; font-size: 9pt;" class="_mt">payable,</font><font style="display: inline; font-size: 9pt;" class="_mt"> reinsurance payable and current income taxes payable approximate fair value due to the short-term nature of these assets and liabilities.&nbsp;&nbsp;Fair values for the majority of investment securities are based on quoted market prices.&nbsp;&nbsp;Auction rate securities ("ARS") are valued using discounted cash flow models to determine the estimated fair value of these investments.&nbsp;&nbsp;Some of the inputs to determining the fair value of ARS are unobservable in the securities markets and are significant. Refer to Note 3 for further information regarding investments in securities and fair value.</font> </p></div> </div> 52263 836215 645685 822940 69685 134253 134253 134253 134253 1429637 P12Y P10Y 28559 -69081 0 97640 1066239 635744 0 430495 26528 28538 <div> <div class="MetaData"> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;">&nbsp;<font style="font-style: italic; display: inline; font-size: 9pt; font-weight: bold;" class="_mt">Other Intangible Assets</font> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">The Company's</font><font style="display: inline; font-size: 9pt;" class="_mt"> other</font><font style="display: inline; font-size: 9pt;" class="_mt"> intangible assets consist of a non-compete agreement and referral relationships r</font><font style="display: inline; font-size: 9pt;" class="_mt">esulting from an agency acquis</font><font style="display: inline; font-size: 9pt;" class="_mt">ition and are recorded at </font><font style="display: inline; font-size: 9pt;" class="_mt">fair value. </font><font style="display: inline; font-size: 9pt;" class="_mt">The referral relationships are amortized on a straight-line basis over the useful life and a</font><font style="display: inline; font-size: 9pt;" class="_mt">mortization of the</font><font style="display: inline; font-size: 9pt;" class="_mt"> non-compete contract will</font><font style="display: inline; font-size: 9pt;" class="_mt"> start at a future date when the related employment agreement is terminated.</font><font style="display: inline; font-size: 9pt;" class="_mt"> </font><font style="display: inline; font-size: 9pt;" class="_mt"> </font><font style="display: inline; font-size: 9pt;" class="_mt">Intangible assets are reviewed and tested for impairment at least </font><font style="display: inline; font-size: 9pt;" class="_mt">quarterly</font><font style="display: inline; font-size: 9pt;" class="_mt">.</font><font style="display: inline; font-size: 9pt;" class="_mt"> </font></p></div> </div> -44404 -28904 -15500 -6504 -6504 0 9498936 16079907 9498936 182608 -81669 9397997 16079907 706110 -136849 15510646 <div> <div style="margin-left: 21pt; margin-right: 21pt;"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt; font-weight: bold;" class="_mt">8. Income Taxes </font></p> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><strong> </strong>&nbsp;</p> <p style="line-height: normal; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt"> </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">The components of income tax expense for the years ended December 31 are summarized as follows:</font> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;">&nbsp;</p> <p style="line-height: normal; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="background-color: yellow; display: inline; font-size: 9pt;" class="_mt"> </font></p> <div style="width: 100%;"> <table style="border-collapse: collapse; margin-left: 0pt;" cellspacing="0" cellpadding="0"> <tr><td style="border-bottom: #000000 1pt solid; padding-bottom: 0pt; padding-left: 6.5pt; width: 269.25pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt; font-weight: bold;" class="_mt">For the Years Ended December 31,</font></p></td> <td style="border-bottom: #000000 1pt solid; padding-bottom: 0pt; padding-left: 6.5pt; width: 63.15pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="text-align: center; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt; font-weight: bold;" class="_mt">201</font><font style="display: inline; font-size: 9pt; font-weight: bold;" class="_mt">2</font></p></td> <td style="border-bottom: #000000 1pt solid; padding-bottom: 0pt; padding-left: 6.5pt; width: 68.3pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="text-align: center; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">20</font><font style="display: inline; font-size: 9pt;" class="_mt">1</font><font style="display: inline; font-size: 9pt;" class="_mt">1</font></p></td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 269.25pt; padding-right: 6.5pt; border-top: #000000 1pt solid; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Current:</font></p></td> <td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 63.15pt; padding-right: 6.5pt; border-top: #000000 1pt solid; padding-top: 0pt;" valign="top"> <p style="text-align: center; margin: 0pt; font-family: Times New Roman; font-size: 12pt;">&nbsp;</p></td> <td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 68.3pt; padding-right: 6.5pt; border-top: #000000 1pt solid; padding-top: 0pt;" valign="top"> <p style="text-align: center; margin: 0pt; font-family: Times New Roman; font-size: 12pt;">&nbsp;</p></td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 269.25pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">&nbsp;Federal</font></p></td> <td style="text-align: right; width: 63.15pt; font-family: Times New Roman; font-size: 9pt; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;">$</div>5,018,000&nbsp; </td> <td style="text-align: right; width: 68.3pt; font-family: Times New Roman; font-size: 9pt;" valign="top" nowrap="nowrap"> <div style="float: left;">$</div>2,515,000&nbsp; </td></tr> <tr><td style="border-bottom: #000000 1pt solid; padding-bottom: 0pt; padding-left: 6.5pt; width: 269.25pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">&nbsp;State </font></p></td> <td style="border-bottom: #000000 1pt solid; text-align: right; width: 63.15pt; font-family: Times New Roman; font-size: 9pt; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>163,000&nbsp; </td> <td style="border-bottom: #000000 1pt solid; text-align: right; width: 68.3pt; font-family: Times New Roman; font-size: 9pt;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>29,000&nbsp; </td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 269.25pt; padding-right: 6.5pt; border-top: #000000 1pt solid; padding-top: 0pt;" valign="top"> <p style="text-indent: 13.5pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Total</font><font style="display: inline; font-size: 9pt;" class="_mt"> current</font></p></td> <td style="text-align: right; width: 63.15pt; font-family: Times New Roman; font-size: 9pt; border-top: #000000 1pt solid; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>5,181,000&nbsp; </td> <td style="text-align: right; width: 68.3pt; font-family: Times New Roman; font-size: 9pt; border-top: #000000 1pt solid;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>2,544,000&nbsp; </td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 269.25pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Deferred:</font></p></td> <td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 63.15pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="text-align: right; margin: 0pt; font-family: Times New Roman; font-size: 12pt;">&nbsp;</p></td> <td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 68.3pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="text-align: right; margin: 0pt; font-family: Times New Roman; font-size: 12pt;">&nbsp;</p></td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 269.25pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">&nbsp;&nbsp;Federal</font></p></td> <td style="text-align: right; width: 63.15pt; font-family: Times New Roman; font-size: 9pt; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>(305,525) </td> <td style="text-align: right; width: 68.3pt; font-family: Times New Roman; font-size: 9pt;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>28,131&nbsp; </td></tr> <tr><td style="border-bottom: #000000 1pt solid; padding-bottom: 0pt; padding-left: 6.5pt; width: 269.25pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">&nbsp;&nbsp;State</font></p></td> <td style="border-bottom: #000000 1pt solid; text-align: right; width: 63.15pt; font-family: Times New Roman; font-size: 9pt; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>13,525&nbsp; </td> <td style="border-bottom: #000000 1pt solid; text-align: right; width: 68.3pt; font-family: Times New Roman; font-size: 9pt;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>(7,131) </td></tr> <tr><td style="border-bottom: #000000 1pt solid; padding-bottom: 0pt; padding-left: 6.5pt; width: 269.25pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="text-indent: 13.5pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Total</font><font style="display: inline; font-size: 9pt;" class="_mt"> deferred</font></p></td> <td style="border-bottom: #000000 1pt solid; text-align: right; width: 63.15pt; font-family: Times New Roman; font-size: 9pt; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>(292,000) </td> <td style="border-bottom: #000000 1pt solid; text-align: right; width: 68.3pt; font-family: Times New Roman; font-size: 9pt;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>21,000&nbsp; </td></tr> <tr><td style="border-bottom: #000000 2.25pt solid; padding-bottom: 0pt; padding-left: 6.5pt; width: 269.25pt; padding-right: 6.5pt; border-top: #000000 1pt solid; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Total </font></p></td> <td style="border-bottom: #000000 2.25pt solid; text-align: right; width: 63.15pt; font-family: Times New Roman; font-size: 9pt; border-top: #000000 1pt solid; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;">$</div>4,889,000&nbsp; </td> <td style="border-bottom: #000000 2.25pt solid; text-align: right; width: 68.3pt; font-family: Times New Roman; font-size: 9pt; border-top: #000000 1pt solid;" valign="top" nowrap="nowrap"> <div style="float: left;">$</div>2,565,000&nbsp; </td></tr></table></div> <p style="line-height: normal; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="background-color: yellow; display: inline; font-size: 9pt;" class="_mt"> </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">For state income tax purposes, ITIC and NITIC generally pay only a gross premium tax found in premium and retaliatory taxes in the Consolidated Statements of Income.</font> </p> <p style="line-height: normal; text-indent: 36pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="background-color: yellow; display: inline; font-size: 9pt;" class="_mt"> </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">At December 31, the approximate tax effect of each component of deferred income tax assets and liabilities is summarized as follows:</font> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;">&nbsp;</p> <p style="line-height: normal; text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="background-color: yellow; display: inline; font-size: 9pt;" class="_mt"> </font></p> <div style="width: 100%;"> <table style="border-collapse: collapse; margin-left: 18pt;" cellspacing="0" cellpadding="0"> <tr><td style="border-bottom: #000000 1pt solid; padding-bottom: 0pt; padding-left: 6.5pt; width: 297pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt; font-weight: bold;" class="_mt">For the Years Ended December 31,</font></p></td> <td style="border-bottom: #000000 1pt solid; padding-bottom: 0pt; padding-left: 6.5pt; width: 58.5pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="text-align: center; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt; font-weight: bold;" class="_mt">201</font><font style="display: inline; font-size: 9pt; font-weight: bold;" class="_mt">2</font></p></td> <td style="border-bottom: #000000 1pt solid; padding-bottom: 0pt; padding-left: 6.5pt; width: 58.5pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="text-align: center; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">20</font><font style="display: inline; font-size: 9pt;" class="_mt">1</font><font style="display: inline; font-size: 9pt;" class="_mt">1</font></p></td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 297pt; padding-right: 6.5pt; border-top: #000000 1pt solid; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Deferred income tax assets:</font></p></td> <td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 58.5pt; padding-right: 6.5pt; border-top: #000000 1pt solid; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 12pt;">&nbsp;</p></td> <td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 58.5pt; padding-right: 6.5pt; border-top: #000000 1pt solid; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 12pt;">&nbsp;</p></td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 297pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">&nbsp;Accrued benefits and retirement services</font></p></td> <td style="text-align: right; width: 58.5pt; font-family: Times New Roman; font-size: 9pt; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;">$</div>2,889,350&nbsp; </td> <td style="text-align: right; width: 58.5pt; font-family: Times New Roman; font-size: 9pt;" valign="top" nowrap="nowrap"> <div style="float: left;">$</div>2,491,168&nbsp; </td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 297pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">&nbsp;Postretirement benefit obligation </font></p></td> <td style="text-align: right; width: 58.5pt; font-family: Times New Roman; font-size: 9pt; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>52,791&nbsp; </td> <td style="text-align: right; width: 58.5pt; font-family: Times New Roman; font-size: 9pt;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>28,026&nbsp; </td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 297pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">&nbsp;Other-than-temporary impairment of assets</font></p></td> <td style="text-align: right; width: 58.5pt; font-family: Times New Roman; font-size: 9pt; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>344,701&nbsp; </td> <td style="text-align: right; width: 58.5pt; font-family: Times New Roman; font-size: 9pt;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>434,929&nbsp; </td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 297pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">&nbsp;Reinsurance and commissions payable</font></p></td> <td style="text-align: right; width: 58.5pt; font-family: Times New Roman; font-size: 9pt; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>19,087&nbsp; </td> <td style="text-align: right; width: 58.5pt; font-family: Times New Roman; font-size: 9pt;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>38,969&nbsp; </td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 297pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">&nbsp;Allowance for doubtful accounts</font></p></td> <td style="text-align: right; width: 58.5pt; font-family: Times New Roman; font-size: 9pt; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>641,920&nbsp; </td> <td style="text-align: right; width: 58.5pt; font-family: Times New Roman; font-size: 9pt;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>414,120&nbsp; </td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 297pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">&nbsp;Net operating loss carryforward</font></p></td> <td style="text-align: right; width: 58.5pt; font-family: Times New Roman; font-size: 9pt; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>12,000&nbsp; </td> <td style="text-align: right; width: 58.5pt; font-family: Times New Roman; font-size: 9pt;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>30,000&nbsp; </td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 297pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">&nbsp;Capital loss carryforward</font></p></td> <td style="text-align: right; width: 58.5pt; font-family: Times New Roman; font-size: 9pt; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>0&nbsp; </td> <td style="text-align: right; width: 58.5pt; font-family: Times New Roman; font-size: 9pt;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>5,194&nbsp; </td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 297pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">&nbsp;Excess of book over tax depreciation</font></p></td> <td style="text-align: right; width: 58.5pt; font-family: Times New Roman; font-size: 9pt; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>143,184&nbsp; </td> <td style="text-align: right; width: 58.5pt; font-family: Times New Roman; font-size: 9pt;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>113,648&nbsp; </td></tr> <tr><td style="border-bottom: #000000 1pt solid; padding-bottom: 0pt; padding-left: 6.5pt; width: 297pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">&nbsp;Other</font></p></td> <td style="border-bottom: #000000 1pt solid; text-align: right; width: 58.5pt; font-family: Times New Roman; font-size: 9pt; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>410,052&nbsp; </td> <td style="border-bottom: #000000 1pt solid; text-align: right; width: 58.5pt; font-family: Times New Roman; font-size: 9pt;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>491,479&nbsp; </td></tr> <tr><td style="border-bottom: #000000 1pt solid; padding-bottom: 0pt; padding-left: 6.5pt; width: 297pt; padding-right: 6.5pt; border-top: #000000 1pt solid; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">&nbsp;&nbsp;&nbsp;&nbsp;Total</font></p></td> <td style="border-bottom: #000000 1pt solid; text-align: right; width: 58.5pt; font-family: Times New Roman; font-size: 9pt; border-top: #000000 1pt solid; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>4,513,085&nbsp; </td> <td style="border-bottom: #000000 1pt solid; text-align: right; width: 58.5pt; font-family: Times New Roman; font-size: 9pt; border-top: #000000 1pt solid;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>4,047,533&nbsp; </td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 297pt; padding-right: 6.5pt; border-top: #000000 1pt solid; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Deferred income tax liabilities:</font></p></td> <td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 58.5pt; padding-right: 6.5pt; border-top: #000000 1pt solid; padding-top: 0pt;" valign="top"> <p style="text-align: right; margin: 0pt; font-family: Times New Roman; font-size: 12pt;">&nbsp;</p></td> <td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 58.5pt; padding-right: 6.5pt; border-top: #000000 1pt solid; padding-top: 0pt;" valign="top"> <p style="text-align: right; margin: 0pt; font-family: Times New Roman; font-size: 12pt;">&nbsp;</p></td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 297pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">&nbsp;Recorded reserves for claims, net of statutory premium reserves</font></p></td> <td style="text-align: right; width: 58.5pt; font-family: Times New Roman; font-size: 9pt; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>399,217&nbsp; </td> <td style="text-align: right; width: 58.5pt; font-family: Times New Roman; font-size: 9pt;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>290,318&nbsp; </td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 297pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">&nbsp;Net unrealized gain on investments</font></p></td> <td style="text-align: right; width: 58.5pt; font-family: Times New Roman; font-size: 9pt; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>4,687,264&nbsp; </td> <td style="text-align: right; width: 58.5pt; font-family: Times New Roman; font-size: 9pt;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>3,956,708&nbsp; </td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 297pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">&nbsp;Discount accretion on tax-exempt obligations</font></p></td> <td style="text-align: right; width: 58.5pt; font-family: Times New Roman; font-size: 9pt; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>2,038&nbsp; </td> <td style="text-align: right; width: 58.5pt; font-family: Times New Roman; font-size: 9pt;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>0&nbsp; </td></tr> <tr><td style="border-bottom: #000000 1pt solid; padding-bottom: 0pt; padding-left: 6.5pt; width: 297pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">&nbsp;Other</font></p></td> <td style="border-bottom: #000000 1pt solid; text-align: right; width: 58.5pt; font-family: Times New Roman; font-size: 9pt; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>317,722&nbsp; </td> <td style="border-bottom: #000000 1pt solid; text-align: right; width: 58.5pt; font-family: Times New Roman; font-size: 9pt;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>279,870&nbsp; </td></tr> <tr><td style="border-bottom: #000000 1pt solid; padding-bottom: 0pt; padding-left: 6.5pt; width: 297pt; padding-right: 6.5pt; border-top: #000000 1pt solid; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">&nbsp;&nbsp;&nbsp;&nbsp;Total</font></p></td> <td style="border-bottom: #000000 1pt solid; text-align: right; width: 58.5pt; font-family: Times New Roman; font-size: 9pt; border-top: #000000 1pt solid; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>5,406,241&nbsp; </td> <td style="border-bottom: #000000 1pt solid; text-align: right; width: 58.5pt; font-family: Times New Roman; font-size: 9pt; border-top: #000000 1pt solid;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>4,526,896&nbsp; </td></tr> <tr><td style="border-bottom: #000000 2.25pt solid; padding-bottom: 0pt; padding-left: 6.5pt; width: 297pt; padding-right: 6.5pt; border-top: #000000 1pt solid; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Net deferred income tax liabilities</font></p></td> <td style="border-bottom: #000000 2.25pt solid; text-align: right; width: 58.5pt; font-family: Times New Roman; font-size: 9pt; border-top: #000000 1pt solid; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;">$</div>(893,156) </td> <td style="border-bottom: #000000 2.25pt solid; text-align: right; width: 58.5pt; font-family: Times New Roman; font-size: 9pt; border-top: #000000 1pt solid;" valign="top" nowrap="nowrap"> <div style="float: left;">$</div>(479,363) </td></tr></table></div> <p style="line-height: normal; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="background-color: yellow; display: inline; font-size: 9pt;" class="_mt"> </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">At December 31, 201</font><font style="display: inline; font-size: 9pt;" class="_mt">2</font><font style="display: inline; font-size: 9pt;" class="_mt"> and 20</font><font style="display: inline; font-size: 9pt;" class="_mt">1</font><font style="display: inline; font-size: 9pt;" class="_mt">1</font><font style="display: inline; font-size: 9pt;" class="_mt">, no valuation allowance was recorded. Based upon the Company's historical results of operations, the existing financial condition of the Company and management's assessment of all other available information, management believes that it is more likely than not that the benefit of these deferred income tax assets will be realized.</font> </p> <p style="line-height: normal; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="background-color: yellow; display: inline; font-size: 9pt;" class="_mt"> </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">A reconciliation of income tax as computed for the years ended December 31 at the </font><font style="display: inline; font-size: 9pt;" class="_mt">U.S.</font><font style="display: inline; font-size: 9pt;" class="_mt"> federal statutory income tax rate (<font class="_mt">34</font>%) to income tax expense follows:</font> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;">&nbsp;</p> <p style="line-height: normal; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="background-color: yellow; display: inline; font-size: 9pt;" class="_mt"> </font></p> <div style="width: 100%;"> <table style="border-collapse: collapse; margin-left: 0pt;" cellspacing="0" cellpadding="0"> <tr><td style="border-bottom: #000000 1pt solid; padding-bottom: 0pt; padding-left: 6.5pt; width: 247.1pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt; font-weight: bold;" class="_mt">For the Years Ended December 31,</font></p></td> <td style="border-bottom: #000000 1pt solid; padding-bottom: 0pt; padding-left: 6.5pt; width: 61pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="text-align: center; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt; font-weight: bold;" class="_mt">201</font><font style="display: inline; font-size: 9pt; font-weight: bold;" class="_mt">2</font></p></td> <td style="border-bottom: #000000 1pt solid; padding-bottom: 0pt; padding-left: 6.5pt; width: 67.35pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="text-align: center; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">20</font><font style="display: inline; font-size: 9pt;" class="_mt">1</font><font style="display: inline; font-size: 9pt;" class="_mt">1</font></p></td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 247.1pt; padding-right: 6.5pt; border-top: #000000 1pt solid; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Anticipated income tax expense</font></p></td> <td style="text-align: right; width: 61pt; font-family: Times New Roman; font-size: 9pt; border-top: #000000 1pt solid; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;">$</div>5,467,168&nbsp; </td> <td style="text-align: right; width: 67.35pt; font-family: Times New Roman; font-size: 9pt; border-top: #000000 1pt solid;" valign="top" nowrap="nowrap"> <div style="float: left;">$</div>3,229,638&nbsp; </td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 247.1pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Increase (decrease) related to:</font></p></td> <td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 61pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="text-align: right; margin: 0pt; font-family: Times New Roman; font-size: 12pt;">&nbsp;</p></td> <td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 67.35pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="text-align: right; margin: 0pt; font-family: Times New Roman; font-size: 12pt;">&nbsp;</p></td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 247.1pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">&nbsp;State income taxes, net of federal income tax benefit</font></p></td> <td style="text-align: right; width: 61pt; font-family: Times New Roman; font-size: 9pt; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>107,580&nbsp; </td> <td style="text-align: right; width: 67.35pt; font-family: Times New Roman; font-size: 9pt;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>19,140&nbsp; </td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 247.1pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">&nbsp;Tax-exempt interest income (net of amortization) </font></p></td> <td style="text-align: right; width: 61pt; font-family: Times New Roman; font-size: 9pt; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>(757,005) </td> <td style="text-align: right; width: 67.35pt; font-family: Times New Roman; font-size: 9pt;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>(700,300) </td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 247.1pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">&nbsp;Other, net</font></p></td> <td style="text-align: right; width: 61pt; font-family: Times New Roman; font-size: 9pt; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>71,257&nbsp; </td> <td style="text-align: right; width: 67.35pt; font-family: Times New Roman; font-size: 9pt;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>16,522&nbsp; </td></tr> <tr><td style="border-bottom: #000000 2.25pt solid; padding-bottom: 0pt; padding-left: 6.5pt; width: 247.1pt; padding-right: 6.5pt; border-top: #000000 1pt solid; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Provision for income taxes</font></p></td> <td style="border-bottom: #000000 2.25pt solid; text-align: right; width: 61pt; font-family: Times New Roman; font-size: 9pt; border-top: #000000 1pt solid; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;">$</div>4,889,000&nbsp; </td> <td style="border-bottom: #000000 2.25pt solid; text-align: right; width: 67.35pt; font-family: Times New Roman; font-size: 9pt; border-top: #000000 1pt solid;" valign="top" nowrap="nowrap"> <div style="float: left;">$</div>2,565,000&nbsp; </td></tr></table></div> <p style="line-height: normal; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="background-color: yellow; display: inline; font-size: 9pt;" class="_mt"> </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">In accounting for uncertainty in income taxes, the Company is required to recognize in its financial statements the impact of a tax position if that position is more likely than not of being sustained on an audit, based on the technical merits of the position.&nbsp;&nbsp;In this regard, an uncertain tax position represents the Company's expected treatment of a tax position taken in a filed tax return, or planned to be taken in a future tax return, that has not been reflected in measuring income tax expense for financial reporting purposes.&nbsp;&nbsp;There were no unrecognized tax benefits or liabilities as of December 31, 201</font><font style="display: inline; font-size: 9pt;" class="_mt">2</font><font style="display: inline; font-size: 9pt;" class="_mt">.</font> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt"> </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">The amount of unrecognized tax benefit or liability may increase or decrease in the future for various reasons, including adding amounts for current tax year positions, expiration of open income tax returns due to the expiration of the applicable statute of limitations, changes in management's judgment about the level of uncertainty, status of examinations, litigation and legislative activity and the additions or eliminations of uncertain tax positions.</font> </p> <p style="line-height: normal; text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt"> </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">The Company's policy is to report interest and penalties related to income taxes in the Other line item in the Consolidated Statements of Income. </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt"> </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">The Company, or one of its subsidiaries, files income tax returns in the </font><font style="display: inline; font-size: 9pt;" class="_mt">U.S.</font><font style="display: inline; font-size: 9pt;" class="_mt"> federal jurisdiction and various states.&nbsp;&nbsp;With few exceptions, the Company is no longer subject to </font><font style="display: inline; font-size: 9pt;" class="_mt">U.S.</font><font style="display: inline; font-size: 9pt;" class="_mt"> federal or state and local examinations by taxing a</font><font style="display: inline; font-size: 9pt;" class="_mt">uthorities for years before 2008</font><font style="display: inline; font-size: 9pt;" class="_mt">.</font> </p></div> </div> 2963000 4479000 2565000 4889000 <div> <div> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt"> </font></p> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="font-style: italic; display: inline; font-size: 9pt; font-weight: bold;" class="_mt">Income Taxes</font> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">The Company makes certain estimates and judgments in determining income tax expense (benefit) for financial statement purposes. These estimates and judgments occur in the calculation of certain tax assets and liabilities which arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes. The Company provides for deferred income taxes (benefits) for the tax consequences in future years of temporary differences between the financial statements' carrying values and the tax bases of assets and liabilities using currently enacted tax rates.&nbsp;&nbsp;The Company establishes valuation allowances if it believes that it is more likely than not that some or all of its deferred tax assets will not be realized.&nbsp;&nbsp;Refer to Note 8</font><font style="display: inline; font-size: 9pt;" class="_mt"> for further information regarding income taxes</font><font style="display: inline; font-size: 9pt;" class="_mt">.</font> </p></div> </div> 3229638 5467168 16522 71257 19140 107580 700300 757005 1913799 2372995 -415823 696291 -77056 407252 -646786 4912295 18286 35090 49596250 59427070 <div> <div> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="font-style: italic; display: inline; font-size: 9pt; font-weight: bold;" class="_mt">Premiums Written and Commissions to Agents</font> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Generally, title insurance premiums are recognized at the time of closing of the related real estate transaction, as the earnings process is then</font><font style="display: inline; font-size: 9pt;" class="_mt"> </font><font style="display: inline; font-size: 9pt;" class="_mt">considered complete. Policies or commitments are issued upon receipt of final certificates or preliminary reports with respect to titles. Title insurance</font><font style="display: inline; font-size: 9pt;" class="_mt"> </font><font style="display: inline; font-size: 9pt;" class="_mt">commissions earned by the Company's agents, taxes and a provision for claims losses are recognized as expenses concurrent with recognition of related</font><font style="display: inline; font-size: 9pt;" class="_mt"> </font><font style="display: inline; font-size: 9pt;" class="_mt">premium revenue.</font> </p> <p style="line-height: normal; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt"> </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">The Company's premium revenues from certain agency operations include accruals based on estimates. These accruals estimate unreported</font><font style="display: inline; font-size: 9pt;" class="_mt"> </font><font style="display: inline; font-size: 9pt;" class="_mt">agency premiums related to transactions which have settled as of the balance sheet date. Accruals for premiums from certain agencies are necessary</font><font style="display: inline; font-size: 9pt;" class="_mt"> </font><font style="display: inline; font-size: 9pt;" class="_mt">because of the lag between policy effective dates and the reporting of these transactions to the Company by the agents. The lag time has historically</font><font style="display: inline; font-size: 9pt;" class="_mt"> </font><font style="display: inline; font-size: 9pt;" class="_mt">been between 30 and 120 days, with the majority of agencies reporting within 60 to 90 days. The lag time is reviewed periodically to monitor accruals.</font><font style="display: inline; font-size: 9pt;" class="_mt"> </font><font style="display: inline; font-size: 9pt;" class="_mt">The accrual of premium revenues is based on historical data that includes transactional volume, fluctuations in the real estate market and the mix</font><font style="display: inline; font-size: 9pt;" class="_mt"> </font><font style="display: inline; font-size: 9pt;" class="_mt">between refinance and purchase transactions. There have been no material changes in historical estimates during the periods presented. </font></p> <p style="line-height: normal; text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt"> </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Quarterly, the Company evaluates the collectability of receivables. Premiums not collected within 6 months are fully reserved. Write-offs of</font><font style="display: inline; font-size: 9pt;" class="_mt"> </font><font style="display: inline; font-size: 9pt;" class="_mt">receivables have not been material to the Company.</font> </p></div> </div> 1429637 3595036 502557 -81669 3174148 3980411 571999 -84586 3492998 3595036 480 12725 347843 3233988 3980411 30 10576 815674 3154131 <div> <table border="0" cellspacing="0"> <tr><td width="66%"> </td> <td width="2%"> </td> <td width="13%" align="center"> </td> <td width="2%" align="center"> </td> <td width="12%" align="center"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="66%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="13%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2012</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="12%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">2011</font></td></tr> <tr><td width="95%" colspan="5">&nbsp;</td></tr> <tr valign="bottom"><td width="66%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Fixed maturities</font></td> <td width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="13%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">3,154,131</font></b></td> <td width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">3,233,988</font></b></td></tr> <tr valign="bottom"><td width="66%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Equity securities</font></td> <td width="2%" align="left">&nbsp;</td> <td width="13%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">815,674</font></b></td> <td width="2%" align="left">&nbsp;</td> <td width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">347,843</font></b></td></tr> <tr valign="bottom"><td width="66%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Invested cash and other short-term investments</font></td> <td width="2%" align="left">&nbsp;</td> <td width="13%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">10,576</font></b></td> <td width="2%" align="left">&nbsp;</td> <td width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">12,725</font></b></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="66%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Miscellaneous interest</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">30</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">480</font></b></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 3px;" width="66%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Investment income</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">3,980,411</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">3,595,036</font></b></td></tr></table> </div> 125701316 130778659 <div> <table border="0" cellspacing="0"> <tr><td width="49%"> </td> <td width="13%"> </td> <td width="15%"> </td> <td width="4%"> </td> <td width="16%"> </td></tr> <tr valign="bottom"><td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" colspan="3" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Available-for-Sale</font></td></tr> <tr valign="bottom"><td align="left">&nbsp;</td> <td align="left">&nbsp;</td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Amortized</font></td> <td align="center">&nbsp;</td> <td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Fair</font></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid; text-indent: 3px;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Cost</font></td> <td style="border-bottom: #000000 1px solid;" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Value</font></td></tr> <tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Due in one year or less</font></td> <td align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">8,717,614</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">8,851,190</font></b></td></tr> <tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Due after one year through five years</font></td> <td align="left">&nbsp;</td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">49,575,672</font></b></td> <td align="right">&nbsp;</td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">53,834,059</font></b></td></tr> <tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Due five years through ten years</font></td> <td align="left">&nbsp;</td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">14,328,875</font></b></td> <td align="right">&nbsp;</td> <td align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">15,800,393</font></b></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Due after ten years</font></td> <td style="border-bottom: #000000 1px solid;" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2,951,512</font></b></td> <td style="border-bottom: #000000 1px solid;" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">3,451,336</font></b></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 2px solid; text-indent: 3px;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Total</font></td> <td style="border-bottom: #000000 2px solid;" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 2px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">75,573,673</font></b></td> <td style="border-bottom: #000000 2px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 2px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">81,936,978</font></b></td></tr></table> </div> 75281 58281 0 0 75281 17000 0 0 58281 0 0 17000 36406 36406 0 0 36406 0 0 0 36406 0 0 0 18552504 21877186 51446279 56785525 157958463 171918276 691250 0 0 691250 <div> <p style="text-align: left;"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">6. Reserves for Claims</font></b></p> <p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Changes in the reserves for claims for the years ended December 31 are summarized as follows based on the year in which the policies were written:</font></p> <div> <table style="width: 802px; height: 278px;" border="0" cellspacing="0"> <tr><td width="58%"> </td> <td width="1%"> </td> <td width="16%" align="center"> </td> <td width="1%" align="center"> </td> <td width="1%" align="center"> </td> <td width="15%" align="center"> </td> <td width="1%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="58%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="16%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2012</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="15%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">2011</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td width="58%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Balance, beginning of year</font></td> <td width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="16%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">37,996,000</font></b></td> <td width="1%" align="left">&nbsp;</td> <td width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="15%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">38,198,700</font></td> <td width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td width="58%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Provisions related to:</font></td> <td width="1%" align="left">&nbsp;</td> <td width="16%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="15%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 3px;" width="58%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Current year</font></td> <td width="1%" align="left">&nbsp;</td> <td width="16%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">7,650,959</font></b></td> <td width="1%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="15%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">6,845,338</font></td> <td width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 3px;" width="58%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Prior years</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="16%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">(1,578,844</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(3,502,911</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 6px;" width="58%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Total provision charged to operations</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="16%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">6,072,115</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">3,342,427</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td width="58%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Claims paid, net of recoveries, related to:</font></td> <td width="1%" align="left">&nbsp;</td> <td width="16%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="15%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 3px;" width="58%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Current year</font></td> <td width="1%" align="left">&nbsp;</td> <td width="16%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">(76,288</font></b></td> <td width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></b></td> <td width="1%" align="left">&nbsp;</td> <td width="15%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(305,079</font></td> <td width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 3px;" width="58%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Prior years</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="16%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">(4,913,827</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(3,240,048</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 6px;" width="58%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Total claims paid, net of recoveries</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="16%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">(4,990,115</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(3,545,127</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 6px;" width="58%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Balance, end of year</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" width="16%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">39,078,000</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">37,996,000</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td></tr></table></div> <p style="margin: 0px;">&nbsp;</p> <p style="text-align: left;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">The Company continually refines its reserve estimates as current loss experience develops and credible data emerges. Movements in the reserves related to prior periods were primarily the result of changes to estimates to better reflect the latest reported loss data. The 2012 calendar year change in the provision relating to prior years resulted mostly from favorable development in 2012 versus prior year related primarily to policy years 2010 and 2011. Due to variances between actual and expected loss payments, loss development is subject to significant variability.</font></p> <div>&nbsp;</div><br /> <p style="text-align: left;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">The Company does not recognize claim recoveries until an actual payment has been received by the Company. During 2012, the Company realized claim recoveries of approximately $<font class="_mt">1,324,000</font>. During 2011, the Company realized claim recoveries of approximately $<font class="_mt">1,488,000</font>.</font></p> <p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">The provision for claims as a percentage of net premiums written was <font class="_mt">5.9</font>% and <font class="_mt">4.1</font>% in 2012 and 2011, respectively.</font></p> <p style="text-align: left;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">A large claim is defined as a claim with incurred losses exceeding $<font class="_mt">250,000</font>. Due to the small volume of large claims, the long-tail nature of title insurance claims and the inherent uncertainty in loss emergence patterns, large claim activity can vary significantly between policy years. The estimated development of large claims by policy year is therefore subject to significant changes as experience develops.</font></p> <p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">A summary of the Company's loss reserves, broken down into its components of known title claims and IBNR claims follows:</font></p> <div> <table border="0" cellspacing="0"> <tr><td width="22%"> </td> <td width="2%"> </td> <td width="16%"> </td> <td width="16%"> </td> <td width="3%"> </td> <td width="2%"> </td> <td width="16%"> </td> <td width="16%"> </td> <td width="3%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="22%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="16%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2012</font></b></td> <td style="border-bottom: #000000 1px solid; text-align: right;" width="16%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">%</font></td> <td style="border-bottom: #000000 1px solid;" width="3%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="16%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">2011</font></td> <td style="border-bottom: #000000 1px solid; text-align: right;" width="16%" align="center"><font style="text-align: right; font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">%</font></td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td width="22%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Known title claims</font></td> <td width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="16%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">5,166,370</font></b></td> <td width="16%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">13.2</font></b></td> <td width="3%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">%</font></b></td> <td width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="16%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">6,233,501</font></td> <td width="16%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">16.4</font></td> <td width="3%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">%</font></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="22%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">IBNR</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="16%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">33,911,630</font></b></td> <td style="border-bottom: #000000 1px solid;" width="16%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">86.8</font></b></td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">%</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="16%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">31,762,499</font></td> <td style="border-bottom: #000000 1px solid;" width="16%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">83.6</font></td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">%</font></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="22%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Total loss reserves</font></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" width="16%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">39,078,000</font></b></td> <td style="border-bottom: #000000 1px solid;" width="16%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">100.0</font></b></td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">%</font></b></td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 1px solid;" width="16%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">37,996,000</font></td> <td style="border-bottom: #000000 1px solid;" width="16%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">100.0</font></td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">%</font></td></tr></table></div> <p style="margin: 0px;">&nbsp;</p> <p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">In management's opinion, the reserves are adequate to cover claim losses which might result from pending and future claims.</font></p> </div> 38198700 37996000 39078000 31762499 33911630 6233501 5166370 3545127 4990115 305079 76288 3240048 4913827 3342427 6072115 6845338 7650959 -3502911 -1578844 <div> <div> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="font-style: italic; display: inline; font-size: 9pt; font-weight: bold;" class="_mt">Investments in Securities</font> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Securities for which the Company has the intent and ability to hold to maturity are classified as held-to-maturity and reported at cost, adjusted for amortization of premiums or accretion of discounts, and other-than-temporary declines in fair value. Securities held principally for resale in the near term are classified as trading securities and recorded at fair values. Realized and unrealized gains and losses on trading securities are included in other income. Securities not classified as either trading or held-to-maturity are classified as available-for-sale and reported at fair value with unrealized gains and losses, net of tax, adjusted for other-than-temporary declines in fair value, reported as accumulated other comprehensive income. Securities are regularly reviewed for differences between the cost and estimated fair value of each security for factors that may indicate that a decline in fair value is other-than-temporary. Some factors considered in evaluating whether or not a decline in fair value is other-than-temporary include the duration and extent to which the fair value has been less than cost and the Company's ability and intent to retain the investment for a period of time sufficient to allow for a recovery in value. Such reviews are inherently uncertain and the value of the investment may not fully recover or may decline in future periods resulting in a realized loss. Fair values of the majority of investments are based on quoted market prices. Realized gains and losses are determined on the specific identifi</font><font style="display: inline; font-size: 9pt;" class="_mt">cation method.&nbsp;&nbsp;Refer to Note 3 for further information regarding investments in securities and fair value.</font><font style="display: inline; font-size: 9pt;" class="_mt">&nbsp;</font> </p></div> </div> 0 40800 0.15 -6384541 -4459109 7302609 -1480645 9007159 8707514 6933936 6933936 11102496 11102496 0 -88411 <div> <div> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="font-style: italic; display: inline; font-size: 9pt; font-weight: bold;" class="_mt">Recent</font><font style="font-style: italic; display: inline; font-size: 9pt; font-weight: bold;" class="_mt">ly Issued</font><font style="font-style: italic; display: inline; font-size: 9pt; font-weight: bold;" class="_mt"> Accounting Standards</font> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">In June 2011, the FASB updated requirements relating to the presentation of comprehensive income.&nbsp;&nbsp;The objectives of this accounting update are to facilitate convergence of GAAP and International Financial Reporting Standards ("IFRS"), to improve the comparability, consistency, and transparency of financial reporting and to increase the prominence of items reported in other comprehensive income.&nbsp;&nbsp;The main provisions of the guidance require that all nonowner changes in stockholders' equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements.&nbsp;&nbsp;For public entities, this update became effective for fiscal years, and interim periods within those years, beginning after December 15, 2011.&nbsp;&nbsp;The Company complied with this update, and it did not have an impact on the Company's financial condition or results of operations.</font> </p> <p style="line-height: normal; text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt"> </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">In May 2011, the FASB updated requirements for measuring and disclosing fair value information, resulting in common principles and requirements in accordance with GAAP and IFRS.&nbsp;&nbsp;For public entities, this guidance became effective during interim and annual periods beginning after December 15, 2011.&nbsp;&nbsp;The Company complied with this update, and it did not have an impact on the Company's financial condition or results of operations.</font> </p></div> </div> 0 -1481900 0 691250 1 22 1374081 547493 39964 161473 228875 396276 0 <div> <div style="margin-left: 21pt; margin-right: 21pt;"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt; font-weight: bold;" class="_mt">9. Leases</font> </p> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;">&nbsp;</p> <p style="line-height: normal; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt"> </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">The Company leases certain office facilities and equipment under operating leases. Rental expense also includes occasional rental of automobiles. Rent expense totaled approximately </font><font style="display: inline; font-size: 9pt;" class="_mt">$</font><font class="_mt"><font style="display: inline; font-size: 9pt;" class="_mt">692</font><font style="display: inline; font-size: 9pt;" class="_mt">,000</font></font><font style="display: inline; font-size: 9pt;" class="_mt"> and $</font><font class="_mt"><font style="display: inline; font-size: 9pt;" class="_mt">623,000</font></font><font style="display: inline; font-size: 9pt;" class="_mt"> in 201</font><font style="display: inline; font-size: 9pt;" class="_mt">2</font><font style="display: inline; font-size: 9pt;" class="_mt"> and 20</font><font style="display: inline; font-size: 9pt;" class="_mt">1</font><font style="display: inline; font-size: 9pt;" class="_mt">1</font><font style="display: inline; font-size: 9pt;" class="_mt">, respectively. The future minimum lease payments under operating leases that have initial or remaining noncancelable lease terms in excess of one year as of December 31, 201</font><font style="display: inline; font-size: 9pt;" class="_mt">2</font><font style="display: inline; font-size: 9pt;" class="_mt">, are summarized as follows:</font> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;">&nbsp;</p> <p style="line-height: normal; text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="background-color: yellow; display: inline; font-size: 9pt;" class="_mt"> </font></p> <div style="width: 100%;"> <table style="border-collapse: collapse; margin-left: 0pt;" cellspacing="0" cellpadding="0"> <tr><td style="border-bottom: #000000 1pt solid; padding-bottom: 0pt; padding-left: 6.5pt; width: 268.65pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Year Ended:</font></p></td> <td style="border-bottom: #000000 1pt solid; padding-bottom: 0pt; padding-left: 6.5pt; width: 65.25pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 12pt;">&nbsp;</p></td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 268.65pt; padding-right: 6.5pt; border-top: #000000 1pt solid; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">201</font><font style="display: inline; font-size: 9pt;" class="_mt">3</font></p></td> <td style="text-align: right; width: 65.25pt; font-family: Times New Roman; font-size: 9pt; border-top: #000000 1pt solid; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;">$</div>547,493&nbsp; </td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 268.65pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">201</font><font style="display: inline; font-size: 9pt;" class="_mt">4</font></p></td> <td style="text-align: right; width: 65.25pt; font-family: Times New Roman; font-size: 9pt; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>396,276&nbsp; </td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 268.65pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">201</font><font style="display: inline; font-size: 9pt;" class="_mt">5</font></p></td> <td style="text-align: right; width: 65.25pt; font-family: Times New Roman; font-size: 9pt; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>228,875&nbsp; </td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 268.65pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">201</font><font style="display: inline; font-size: 9pt;" class="_mt">6</font></p></td> <td style="text-align: right; width: 65.25pt; font-family: Times New Roman; font-size: 9pt; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>161,473&nbsp; </td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 268.65pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">201</font><font style="display: inline; font-size: 9pt;" class="_mt">7</font></p></td> <td style="text-align: right; width: 65.25pt; font-family: Times New Roman; font-size: 9pt; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>39,964&nbsp; </td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 268.65pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Thereafter</font></p></td> <td style="text-align: right; width: 65.25pt; font-family: Times New Roman; font-size: 9pt; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>0&nbsp; </td></tr> <tr><td style="border-bottom: #000000 2.25pt solid; padding-bottom: 0pt; padding-left: 6.5pt; width: 268.65pt; padding-right: 6.5pt; border-top: #000000 1pt solid; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Total</font></p></td> <td style="border-bottom: #000000 2.25pt solid; text-align: right; width: 65.25pt; font-family: Times New Roman; font-size: 9pt; border-top: #000000 1pt solid; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;">$</div>1,374,081&nbsp; </td></tr></table></div></div> </div> 623000 692000 <div> <div style="margin-left: 21pt;"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt; font-weight: bold;" class="_mt">1. Basis of Presentation and Summary of Significant Accounting Policies</font><font style="display: inline; font-size: 9pt; font-weight: bold;" class="_mt">&nbsp;&nbsp;&nbsp;</font><font style="display: inline; font-size: 9pt; font-weight: bold;" class="_mt">&nbsp;</font> </p> <p style="line-height: normal; text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt; text-decoration: underline;" class="_mt"> </font></p> <div> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt; text-decoration: underline;" class="_mt">Description of Business</font><font style="display: inline; font-size: 9pt;" class="_mt">&#8212;Investors Title Company's (the "Company") primary business, and only reportable segment, is title insurance. The title insurance segment, through its&nbsp;<font class="_mt">two</font> subsidiaries, Investors Title Insurance Company ("ITIC") and National Investors Title Insurance Company ("NITIC"), is licensed to insure titles to residential, institutional, commercial and industrial properties. The Company issues title insurance policies primarily through approved attorneys from underwriting offices and through independent issuing agents in&nbsp;</font><font class="_mt"><font style="display: inline; font-size: 9pt;" class="_mt">22</font></font><font style="display: inline; font-size: 9pt;" class="_mt"> </font><font style="display: inline; font-size: 9pt;" class="_mt">states and the </font><font style="display: inline; font-size: 9pt;" class="_mt">District of Columbia</font><font style="display: inline; font-size: 9pt;" class="_mt"> primarily in the eastern half of the </font><font style="display: inline; font-size: 9pt;" class="_mt">United States</font><font style="display: inline; font-size: 9pt;" class="_mt">. The majority of the Company's business is concentrated in Illinois, Kentucky, Michigan, </font><font style="display: inline; font-size: 9pt;" class="_mt">Nebraska, </font><font style="display: inline; font-size: 9pt;" class="_mt">New York, North Carolina, Pennsylvania, South Carolina, Tennessee, </font><font style="display: inline; font-size: 9pt;" class="_mt">Texas and </font><font style="display: inline; font-size: 9pt;" class="_mt">Virginia.</font> </p></div> <div> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt; text-decoration: underline;" class="_mt">Principles of Consolidation and Basis of Presentation</font><font style="display: inline; font-size: 9pt;" class="_mt">&#8212;</font><font style="display: inline; font-size: 9pt;" class="_mt"> The accompanying Consolidated Financial Statements include the accounts and operations of Investors Title Company and its subsidiaries, and have been prepared in accordance with generally accepted accounting principles </font><font style="display: inline; font-size: 9pt;" class="_mt">in the </font><font style="display: inline; font-size: 9pt;" class="_mt">United States</font><font style="display: inline; font-size: 9pt;" class="_mt">&nbsp;</font><font style="display: inline; font-size: 9pt;" class="_mt">("GAAP") </font><font style="display: inline; font-size: 9pt;" class="_mt">.&nbsp;&nbsp;&nbsp;Earnings attributable to the redeemable noncontrolling interest are recorded on the Consolidated Statement of Income for majority-owned subsidiaries. The redeemable noncontrolling interest representing the portion of equity not related to the Company's ownership interest is recorded as redeemable equity in a separate section of the Consolidated Balance Sheets.&nbsp;&nbsp;All intercompany balances and transactions have been eliminated in consolidation.</font> </p></div> <div class="MetaData"> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt; text-decoration: underline;" class="_mt">Significant Accounting Policies</font><font style="display: inline; font-size: 9pt;" class="_mt">&#8212;The significant accounting policies of the Company are summarized below.</font> </p></div> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt"> </font></p> <div> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="font-style: italic; display: inline; font-size: 9pt; font-weight: bold;" class="_mt">Cash and Cash Equivalents</font> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">For the purpose of presentation in the Company's </font><font style="display: inline; font-size: 9pt;" class="_mt">C</font><font style="display: inline; font-size: 9pt;" class="_mt">onsolidated </font><font style="display: inline; font-size: 9pt;" class="_mt">S</font><font style="display: inline; font-size: 9pt;" class="_mt">tatements of </font><font style="display: inline; font-size: 9pt;" class="_mt">C</font><font style="display: inline; font-size: 9pt;" class="_mt">ash </font><font style="display: inline; font-size: 9pt;" class="_mt">F</font><font style="display: inline; font-size: 9pt;" class="_mt">lows, cash equivalents are highly liquid instruments with </font><font style="display: inline; font-size: 9pt;" class="_mt">remaining </font><font style="display: inline; font-size: 9pt;" class="_mt">original maturities of&nbsp;<font class="_mt">three</font> months or less. The carrying amount of cash and cash equivalents is a reasonable estimate of fair value due to the short-term maturity </font><font style="display: inline; font-size: 9pt;" class="_mt">at purchase </font><font style="display: inline; font-size: 9pt;" class="_mt">of these instruments.</font> </p></div> <div> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="font-style: italic; display: inline; font-size: 9pt; font-weight: bold;" class="_mt">Investments in Securities</font> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Securities for which the Company has the intent and ability to hold to maturity are classified as held-to-maturity and reported at cost, adjusted for amortization of premiums or accretion of discounts, and other-than-temporary declines in fair value. Securities held principally for resale in the near term are classified as trading securities and recorded at fair values. Realized and unrealized gains and losses on trading securities are included in other income. Securities not classified as either trading or held-to-maturity are classified as available-for-sale and reported at fair value with unrealized gains and losses, net of tax, adjusted for other-than-temporary declines in fair value, reported as accumulated other comprehensive income. Securities are regularly reviewed for differences between the cost and estimated fair value of each security for factors that may indicate that a decline in fair value is other-than-temporary. Some factors considered in evaluating whether or not a decline in fair value is other-than-temporary include the duration and extent to which the fair value has been less than cost and the Company's ability and intent to retain the investment for a period of time sufficient to allow for a recovery in value. Such reviews are inherently uncertain and the value of the investment may not fully recover or may decline in future periods resulting in a realized loss. Fair values of the majority of investments are based on quoted market prices. Realized gains and losses are determined on the specific identifi</font><font style="display: inline; font-size: 9pt;" class="_mt">cation method.&nbsp;&nbsp;Refer to Note 3 for further information regarding investments in securities and fair value.</font><font style="display: inline; font-size: 9pt;" class="_mt">&nbsp;</font> </p></div> <div> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="font-style: italic; display: inline; font-size: 9pt; font-weight: bold;" class="_mt">Short-term Investments</font> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Short-term investments comprise money market accounts which are invested in short-term funds, time deposits with banks and savings and loan associations, and other investments expected to have maturities or redemptions greater than&nbsp;<font class="_mt">three</font> months and less than&nbsp;<font class="_mt">twelve</font> months. The Company monitors any events or changes in circumstances that may have a significant adverse effect on the fair value of these investments. </font></p></div> <div> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="font-style: italic; display: inline; font-size: 9pt; font-weight: bold;" class="_mt">Other Investments</font> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Other investments consist primarily of investments in title insurance agencies structured as limited liability companies ("LLCs"), which are accounted for under the equity or cost method</font><font style="display: inline; font-size: 9pt;" class="_mt">s</font><font style="display: inline; font-size: 9pt;" class="_mt"> of accounting. The aggregate cost of the Company's cost method investments </font><font style="display: inline; font-size: 9pt;" class="_mt">totaled $</font><font class="_mt"><font style="display: inline; font-size: 9pt;" class="_mt">1,778,115</font></font><font style="display: inline; font-size: 9pt;" class="_mt"> and $</font><font class="_mt"><font style="display: inline; font-size: 9pt;" class="_mt">1,210,687</font></font><font style="display: inline; font-size: 9pt;" class="_mt"> at December 31, 201</font><font style="display: inline; font-size: 9pt;" class="_mt">2</font><font style="display: inline; font-size: 9pt;" class="_mt"> and December 31, 20</font><font style="display: inline; font-size: 9pt;" class="_mt">1</font><font style="display: inline; font-size: 9pt;" class="_mt">1</font><font style="display: inline; font-size: 9pt;" class="_mt">, respectively. The Company monitors any events or changes in circumstances that may have had a significant adverse effect on the fair value of these investments and makes any necessary adjustments.</font> </p></div> <div> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="font-style: italic; display: inline; font-size: 9pt; font-weight: bold;" class="_mt">Property Acquired in Settlement of Claims</font> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Property acquired in settlement of claims is held for sale and valued at the lower of cost or market. Adjustments to reported estimated realizable values and realized gains or losses on dispositions are recorded as increases or decreases in claim costs.</font> </p></div> <div> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="font-style: italic; display: inline; font-size: 9pt; font-weight: bold;" class="_mt">Property and Equipment</font> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Property and equipment are recorded at cost and are depreciated principally under the straight-line method over the estimated useful lives (three to twenty-five years) of the respective assets. Maintenance and repairs are charged to operating expenses and improvements are capitalized.</font> </p></div> <div class="MetaData"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="font-style: italic; display: inline; font-size: 9pt; font-weight: bold;" class="_mt">Reserves for Claims</font> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">The total reserve for all reported and unreported losses the Company incurred through December 31, 201</font><font style="display: inline; font-size: 9pt;" class="_mt">2</font><font style="display: inline; font-size: 9pt;" class="_mt"> is represented by the reserves for claims. The Company's reserves for unpaid losses and loss adjustment expenses are established using estimated amounts required to settle claims for which notice has been received (reported) and the amount estimated to be required to satisfy incurred claims of policyholders which may be reported in the future. Despite the variability of such estimates, management believes that the reserves are adequate to cover claim losses resulting from pending and future claims for policies issued through December 31, 201</font><font style="display: inline; font-size: 9pt;" class="_mt">2</font><font style="display: inline; font-size: 9pt;" class="_mt">.&nbsp;&nbsp;The Company continually reviews and adjusts its reserve estimates as necessary to reflect its loss experience and any new information that becomes available. Adjustments resulting from such reviews may be significant.</font> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt"> </font><font style="display: inline; font-size: 9pt;" class="_mt">Claims and losses paid are charged to the reserves for claims. Although claims losses are typically paid in cash, occasionally claims are settled by purchasing the interest of the insured or the claimant in the real property. When this event occurs, the acquiring company carries assets at the lower of cost or estimated realizable value, net of any indebtedness on the property.</font></p></div> <div> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt"> </font></p> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="font-style: italic; display: inline; font-size: 9pt; font-weight: bold;" class="_mt">Income Taxes</font> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">The Company makes certain estimates and judgments in determining income tax expense (benefit) for financial statement purposes. These estimates and judgments occur in the calculation of certain tax assets and liabilities which arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes. The Company provides for deferred income taxes (benefits) for the tax consequences in future years of temporary differences between the financial statements' carrying values and the tax bases of assets and liabilities using currently enacted tax rates.&nbsp;&nbsp;The Company establishes valuation allowances if it believes that it is more likely than not that some or all of its deferred tax assets will not be realized.&nbsp;&nbsp;Refer to Note 8</font><font style="display: inline; font-size: 9pt;" class="_mt"> for further information regarding income taxes</font><font style="display: inline; font-size: 9pt;" class="_mt">.</font> </p></div> <div> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="font-style: italic; display: inline; font-size: 9pt; font-weight: bold;" class="_mt">Premiums Written and Commissions to Agents</font> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Generally, title insurance premiums are recognized at the time of closing of the related real estate transaction, as the earnings process is then</font><font style="display: inline; font-size: 9pt;" class="_mt"> </font><font style="display: inline; font-size: 9pt;" class="_mt">considered complete. Policies or commitments are issued upon receipt of final certificates or preliminary reports with respect to titles. Title insurance</font><font style="display: inline; font-size: 9pt;" class="_mt"> </font><font style="display: inline; font-size: 9pt;" class="_mt">commissions earned by the Company's agents, taxes and a provision for claims losses are recognized as expenses concurrent with recognition of related</font><font style="display: inline; font-size: 9pt;" class="_mt"> </font><font style="display: inline; font-size: 9pt;" class="_mt">premium revenue.</font> </p> <p style="line-height: normal; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt"> </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">The Company's premium revenues from certain agency operations include accruals based on estimates. These accruals estimate unreported</font><font style="display: inline; font-size: 9pt;" class="_mt"> </font><font style="display: inline; font-size: 9pt;" class="_mt">agency premiums related to transactions which have settled as of the balance sheet date. Accruals for premiums from certain agencies are necessary</font><font style="display: inline; font-size: 9pt;" class="_mt"> </font><font style="display: inline; font-size: 9pt;" class="_mt">because of the lag between policy effective dates and the reporting of these transactions to the Company by the agents. The lag time has historically</font><font style="display: inline; font-size: 9pt;" class="_mt"> </font><font style="display: inline; font-size: 9pt;" class="_mt">been between 30 and 120 days, with the majority of agencies reporting within 60 to 90 days. The lag time is reviewed periodically to monitor accruals.</font><font style="display: inline; font-size: 9pt;" class="_mt"> </font><font style="display: inline; font-size: 9pt;" class="_mt">The accrual of premium revenues is based on historical data that includes transactional volume, fluctuations in the real estate market and the mix</font><font style="display: inline; font-size: 9pt;" class="_mt"> </font><font style="display: inline; font-size: 9pt;" class="_mt">between refinance and purchase transactions. There have been no material changes in historical estimates during the periods presented. </font></p> <p style="line-height: normal; text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt"> </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Quarterly, the Company evaluates the collectability of receivables. Premiums not collected within 6 months are fully reserved. Write-offs of</font><font style="display: inline; font-size: 9pt;" class="_mt"> </font><font style="display: inline; font-size: 9pt;" class="_mt">receivables have not been material to the Company.</font> </p></div> <div> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="font-style: italic; display: inline; font-size: 9pt; font-weight: bold;" class="_mt">Allowance for Doubtful Accounts</font> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Company management continually evaluates the </font><font style="display: inline; font-size: 9pt;" class="_mt">collectability</font><font style="display: inline; font-size: 9pt;" class="_mt"> of receivables and provides an allowance for doubtful accounts equal to estimated losses expected to be incurred in the collection of amounts receivable.</font><font style="display: inline; font-size: 9pt;" class="_mt"> &nbsp;Changes to the allowance for doubtful accounts are</font><font style="display: inline; font-size: 9pt;" class="_mt"> reflect</font><font style="display: inline; font-size: 9pt;" class="_mt">ed</font><font style="display: inline; font-size: 9pt;" class="_mt"> &nbsp;w</font><font style="display: inline; font-size: 9pt;" class="_mt">ithin net premiums written</font><font style="display: inline; font-size: 9pt;" class="_mt"> in the Cons</font><font style="display: inline; font-size: 9pt;" class="_mt">olidated Statements of Income</font><font style="display: inline; font-size: 9pt;" class="_mt">.&nbsp;&nbsp;Amounts are charged off in the period they are deemed to be uncollectible.</font> </p></div> <div> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="font-style: italic; display: inline; font-size: 9pt; font-weight: bold;" class="_mt">Exchange Services Revenue</font> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Fees are recognized at the signing of a binding agreement and investment earnings are recognized as they are earned.</font> </p></div> <div> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="font-style: italic; display: inline; font-size: 9pt; font-weight: bold;" class="_mt">Fair Values of Financial Instruments</font> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">The carrying amounts reported in the </font><font style="display: inline; font-size: 9pt;" class="_mt">C</font><font style="display: inline; font-size: 9pt;" class="_mt">onsolidated </font><font style="display: inline; font-size: 9pt;" class="_mt">B</font><font style="display: inline; font-size: 9pt;" class="_mt">alance </font><font style="display: inline; font-size: 9pt;" class="_mt">S</font><font style="display: inline; font-size: 9pt;" class="_mt">heets</font><font style="display: inline; font-size: 9pt;" class="_mt"> for cash and cash equivalents, </font><font style="display: inline; font-size: 9pt;" class="_mt">short-term investments, premium and fees</font><font style="display: inline; font-size: 9pt;" class="_mt"> receivable, accrued interest and dividends, accounts payable, commissions </font><font style="display: inline; font-size: 9pt;" class="_mt">payable,</font><font style="display: inline; font-size: 9pt;" class="_mt"> reinsurance payable and current income taxes payable approximate fair value due to the short-term nature of these assets and liabilities.&nbsp;&nbsp;Fair values for the majority of investment securities are based on quoted market prices.&nbsp;&nbsp;Auction rate securities ("ARS") are valued using discounted cash flow models to determine the estimated fair value of these investments.&nbsp;&nbsp;Some of the inputs to determining the fair value of ARS are unobservable in the securities markets and are significant. Refer to Note 3 for further information regarding investments in securities and fair value.</font> </p></div> <div> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="font-style: italic; display: inline; font-size: 9pt; font-weight: bold;" class="_mt">Comprehensive Income</font> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">The Company's accumulated other comprehensive income is comprised of unrealized holding gains/losses on available-for-sale securities, net of tax, and unrecognized prior service cost and unrealized gains/losses associated with postretirement benefit liabilities, net of tax.</font><font style="display: inline; font-size: 9pt;" class="_mt"> &nbsp;Accumulated other comprehensive income as of December 31, 201</font><font style="display: inline; font-size: 9pt;" class="_mt">2</font><font style="display: inline; font-size: 9pt;" class="_mt">&nbsp;</font><font style="display: inline; font-size: 9pt;" class="_mt">consists of $</font><font class="_mt"><font style="display: inline; font-size: 9pt;" class="_mt">8,920,883</font></font><font style="display: inline; font-size: 9pt;" class="_mt">&nbsp;</font><font style="display: inline; font-size: 9pt;" class="_mt">of</font><font style="display: inline; font-size: 9pt;" class="_mt"> unrealized holding gains on available-for-sale securities </font><font style="display: inline; font-size: 9pt;" class="_mt">and $</font><font class="_mt"><font style="display: inline; font-size: 9pt;" class="_mt">102,453</font></font><font style="display: inline; font-size: 9pt;" class="_mt"> of unrecognized prior s</font><font style="display: inline; font-size: 9pt;" class="_mt">ervice cost and </font><font style="display: inline; font-size: 9pt;" class="_mt">unrecognized actuarial </font><font style="display: inline; font-size: 9pt;" class="_mt">losses</font><font style="display: inline; font-size: 9pt;" class="_mt"> associated with postretirement benefit liabilities.&nbsp;&nbsp;Accumulated other comprehensive income as of December 31, 20</font><font style="display: inline; font-size: 9pt;" class="_mt">11</font><font style="display: inline; font-size: 9pt;" class="_mt"> consists of $</font><font class="_mt"><font style="display: inline; font-size: 9pt;" class="_mt">7,563,541</font></font><font style="display: inline; font-size: 9pt;" class="_mt"> of unrealized holding gains on available-for-sale securities and $</font><font class="_mt"><font style="display: inline; font-size: 9pt;" class="_mt">54,376</font></font><font style="display: inline; font-size: 9pt;" class="_mt">&nbsp;</font><font style="display: inline; font-size: 9pt;" class="_mt">of unrecognized prior service cost and unrealized </font><font style="display: inline; font-size: 9pt;" class="_mt">losses</font><font style="display: inline; font-size: 9pt;" class="_mt"> associated with postretirement benefit liabilities.</font> </p></div> <div> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="font-style: italic; display: inline; font-size: 9pt; font-weight: bold;" class="_mt">Share-Based Compensation </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">The Company accounts for share-based compensation in accordance with the fair value based principles required by the Financ</font><font style="display: inline; font-size: 9pt;" class="_mt">ial Accounting Standards Board</font><font style="display: inline; font-size: 9pt;" class="_mt"> ("FASB").&nbsp;&nbsp;Estimated compensation </font><font style="display: inline; font-size: 9pt;" class="_mt">expense for awards outstanding at the effective date is</font><font style="display: inline; font-size: 9pt;" class="_mt"> recognized over their remaining service period using the compensation cost.&nbsp;&nbsp;Share-based compensation cost is generally measured at the grant date, based on the estimated fair value of the award, and is recognized as an expense over the employee's requisite service period. </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt"> </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">As the share-based compensation expense recognized in the </font><font style="display: inline; font-size: 9pt;" class="_mt">C</font><font style="display: inline; font-size: 9pt;" class="_mt">onsolidated </font><font style="display: inline; font-size: 9pt;" class="_mt">S</font><font style="display: inline; font-size: 9pt;" class="_mt">tatements of </font><font style="display: inline; font-size: 9pt;" class="_mt">I</font><font style="display: inline; font-size: 9pt;" class="_mt">ncome</font><font style="display: inline; font-size: 9pt;" class="_mt">&nbsp;</font><font style="display: inline; font-size: 9pt;" class="_mt">is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures.&nbsp;&nbsp;Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.</font> </p></div> <div class="MetaData"> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;">&nbsp;<font style="font-style: italic; display: inline; font-size: 9pt; font-weight: bold;" class="_mt">Other Intangible Assets</font> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">The Company's</font><font style="display: inline; font-size: 9pt;" class="_mt"> other</font><font style="display: inline; font-size: 9pt;" class="_mt"> intangible assets consist of a non-compete agreement and referral relationships r</font><font style="display: inline; font-size: 9pt;" class="_mt">esulting from an agency acquis</font><font style="display: inline; font-size: 9pt;" class="_mt">ition and are recorded at </font><font style="display: inline; font-size: 9pt;" class="_mt">fair value. </font><font style="display: inline; font-size: 9pt;" class="_mt">The referral relationships are amortized on a straight-line basis over the useful life and a</font><font style="display: inline; font-size: 9pt;" class="_mt">mortization of the</font><font style="display: inline; font-size: 9pt;" class="_mt"> non-compete contract will</font><font style="display: inline; font-size: 9pt;" class="_mt"> start at a future date when the related employment agreement is terminated.</font><font style="display: inline; font-size: 9pt;" class="_mt"> </font><font style="display: inline; font-size: 9pt;" class="_mt"> </font><font style="display: inline; font-size: 9pt;" class="_mt">Intangible assets are reviewed and tested for impairment at least </font><font style="display: inline; font-size: 9pt;" class="_mt">quarterly</font><font style="display: inline; font-size: 9pt;" class="_mt">.</font><font style="display: inline; font-size: 9pt;" class="_mt"> </font></p></div> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt"> </font></p> <div> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="font-style: italic; display: inline; font-size: 9pt; font-weight: bold;" class="_mt"> </font><font style="font-style: italic; display: inline; font-size: 9pt; font-weight: bold;" class="_mt">Subsequent Events</font> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">The Company has evaluated and concluded that there were no material subsequent events requiring adjustment </font><font style="display: inline; font-size: 9pt;" class="_mt">or disclosure </font><font style="display: inline; font-size: 9pt;" class="_mt">to its </font><font style="display: inline; font-size: 9pt;" class="_mt">C</font><font style="display: inline; font-size: 9pt;" class="_mt">onsolidated </font><font style="display: inline; font-size: 9pt;" class="_mt">F</font><font style="display: inline; font-size: 9pt;" class="_mt">inancial </font><font style="display: inline; font-size: 9pt;" class="_mt">S</font><font style="display: inline; font-size: 9pt;" class="_mt">tatements.</font> </p></div> <div> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="font-style: italic; display: inline; font-size: 9pt; font-weight: bold;" class="_mt">Recent</font><font style="font-style: italic; display: inline; font-size: 9pt; font-weight: bold;" class="_mt">ly Issued</font><font style="font-style: italic; display: inline; font-size: 9pt; font-weight: bold;" class="_mt"> Accounting Standards</font> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">In June 2011, the FASB updated requirements relating to the presentation of comprehensive income.&nbsp;&nbsp;The objectives of this accounting update are to facilitate convergence of GAAP and International Financial Reporting Standards ("IFRS"), to improve the comparability, consistency, and transparency of financial reporting and to increase the prominence of items reported in other comprehensive income.&nbsp;&nbsp;The main provisions of the guidance require that all nonowner changes in stockholders' equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements.&nbsp;&nbsp;For public entities, this update became effective for fiscal years, and interim periods within those years, beginning after December 15, 2011.&nbsp;&nbsp;The Company complied with this update, and it did not have an impact on the Company's financial condition or results of operations.</font> </p> <p style="line-height: normal; text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt"> </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">In May 2011, the FASB updated requirements for measuring and disclosing fair value information, resulting in common principles and requirements in accordance with GAAP and IFRS.&nbsp;&nbsp;For public entities, this guidance became effective during interim and annual periods beginning after December 15, 2011.&nbsp;&nbsp;The Company complied with this update, and it did not have an impact on the Company's financial condition or results of operations.</font> </p></div> <div> <p style="text-indent: 0pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt; border-top: #d9d9d9 1pt;"><font style="font-style: italic; display: inline; font-size: 9pt; font-weight: bold;" class="_mt">Pending Accounting Standards</font> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">In June 2011, the FASB updated requirements relating to the presentation of comprehensive income.&nbsp;&nbsp;In December 2011, the FASB issued a subsequent update to defer those changes in the June 2011 update that relate to the presentation of reclassification adjustments.&nbsp;&nbsp;All other requirements of the June 2011 update are not affected by the December 2011 update.&nbsp;&nbsp;The amendments were being made to allow the FASB time to re</font><font style="display: inline; font-size: 9pt;" class="_mt">-</font><font style="display: inline; font-size: 9pt;" class="_mt">deliberate whether to present on the face of the financial statements the effects of reclassifications out of accumulated other comprehensive income on the components of net income and other comprehensive income for all periods presented. On February 5, 2013, the FASB did add new disclosure requirements for items reclassified out of accumulated other comprehensive income. This update will become effective for fiscal years, and interim periods within those years, beginning after December 15, 2012. The guidance is not expected to have an impact on the Company's financial condition or results of operations.</font> </p></div> <div> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="font-style: italic; display: inline; font-size: 9pt; font-weight: bold;" class="_mt">Use of Estimates and Assumptions</font> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">The preparation of financial statements in </font><font style="display: inline; font-size: 9pt;" class="_mt">conformity with </font><font style="display: inline; font-size: 9pt;" class="_mt">GAAP </font><font style="display: inline; font-size: 9pt;" class="_mt">requires</font><font style="display: inline; font-size: 9pt;" class="_mt"> management to make estimates</font><font style="display: inline; font-size: 9pt;" class="_mt"> and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period and accompanying notes. Actual results could differ materially from those estimates and assumptions used.&nbsp;&nbsp;The more significant of these estimates and assumptions include the following:</font> </p> <p style="line-height: normal; text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="background-color: yellow; display: inline; font-size: 9pt;" class="_mt"> </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt; text-decoration: underline;" class="_mt">Claims</font><font style="display: inline; font-size: 9pt;" class="_mt">&#8212;</font><font style="display: inline; font-size: 9pt;" class="_mt">The Company's reserves for claims are established using estimated amounts required to settle claims for which notice has been received (reported) and the amount estimated to be required to satisfy incurred claims of policyholders which may be reported in the future (incurred but not reported,&nbsp;&nbsp;or "IBNR").&nbsp;&nbsp;A provision for estimated future claims payments is recorded at the time policy revenue is recorded as a percentage of premium income. By their nature, title claims can often be complex, vary greatly in dollar amounts, vary in number due to economic and market conditions&nbsp;such as an increase in mortgage foreclosures, and involve uncertainties as to ultimate exposure. In addition, some claims may require a number of years to settle and determine the final liability for indemnity and loss adjustment expense. The payment experience may extend for more than 20 years after the issuance of a policy. Events such as fraud, defalcation and multiple property defects can substantially and unexpectedly cause increases in estimates of losses. Due to the length of time over which claim payments are made and regularly occurring changes in underlying economic and market conditions, these estimates are subject to variability. </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt"> </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Management considers factors such as the Company's historical claims experience, case reserve estimates on reported claims, large claims, actuarial projections and other relevant factors in determining loss provision rates and the aggregate recorded expected liability for claims. In establishing reserves, actuarial projections are compared with recorded reserves to evaluate the adequacy of such recorded claims reserves and any necessary adjustments are then recorded in current operations. As the most recent claims experience develops and new information becomes available, the loss reserve estimate related to prior periods will change to more accurately reflect updated and improved emerging data. The Company reflects any adjustments to reserves in the results of operations in the period in which new information (principally claims experience) becomes available.</font> </p> <p style="line-height: normal; text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="background-color: yellow; display: inline; font-size: 9pt;" class="_mt"> </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt; text-decoration: underline;" class="_mt">Impairments</font><font style="display: inline; font-size: 9pt;" class="_mt">&#8212;</font><font style="display: inline; font-size: 9pt;" class="_mt">Securities are regularly evaluated and reviewed for differences between the cost and estimated fair value of each security for factors that may indicate that a decline in fair value is other-than-temporary</font><font style="display: inline; font-size: 9pt;" class="_mt">.&nbsp; </font><font style="display: inline; font-size: 9pt;" class="_mt">When, in the opinion of management, a decline in the fair value of an investment is considered to be other-than-temporary, such investment is written down to its fair value. Some factors considered in evaluating whether or not a decline in fair value is other-than-temporary include the duration and extent to which the fair value has been less than cost, the probability that the Company will be unable to collect all amounts due under the contractual terms of the security; with respect to equity securities, whether the Company's ability and intent to retain the investment for a period of time</font><font style="display: inline; font-size: 9pt;" class="_mt"> is</font><font style="display: inline; font-size: 9pt;" class="_mt"> sufficient to allow for a recovery in value; with respect to fixed maturity securities, whether the Company has the intent to sell or will more likely than not be required to sell a particular security before recovery in value; and the financial condition and prospects of the issuer (including credit ratings).&nbsp;&nbsp;These factors are reviewed quarterly and any material degradation in the prospect for recovery will be considered in the other-than-temporary impairment analysis.&nbsp;&nbsp;Such reviews are inherently uncertain and the value of the investment may not fully recover or may decline in future periods resulting in a realized loss.&nbsp;&nbsp;The fair values of the majority of the Company's investments are based on quoted market prices from independent pricing services. </font></p></div> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;">&nbsp;</p></div> </div> 280987 101861 93436 -13038 -9396 2755366 2015056 1820460 1309265 115089 82918 34804 24764 -353950 -1166179 -122594 -426017 325391 99940 116027 34569 934906 705791 -318 680 2886294 3190737 1888025 1888025 1393943 1393943 976277 1122003 505726 579253 5532228 7701340 3631714 6763100 0 -22101 14112262 13567648 5940463 3975532 0 40800 15318418 15899439 0 350000 853599 3441412 361207 568728 1883562 6347527 <div> <p style="text-align: left;"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">10. Retirement Agreements and Other Postretirement Benefit Plan</font></b></p> <p style="text-align: left;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">The Company has a 401(k) savings plan. In order to participate, individuals must be employed for one full year and work at least&nbsp;<font class="_mt">1,000</font> hours annually. The Company makes a <font class="_mt">3</font>% Safe Harbor contribution and also has the option annually to make a discretionary profit share contribution. Individuals may elect to make contributions up to the maximum deductible amount as determined by the Internal Revenue Code. Expenses related to the 401(k) plan were approximately $<font class="_mt">518,000</font> and $<font class="_mt">479,000</font> for 2012 and 2011, respectively.</font></p> <p style="text-align: left;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">In November 2003, ITIC, a wholly owned subsidiary of the Company, entered into employment agreements with the Chief Executive Officer, Chief Financial Officer and Chief Operating Officer of ITIC. These individuals also serve as the Chairman, President and Executive Vice President, respectively, of the Company. The agreements provide compensation and life, health, dental and vision benefits upon the occurrence of specific events, including death, disability, retirement, termination without cause or upon a change in control. The employment agreements also prohibit each of these executives from competing with ITIC and its parent, subsidiaries and affiliates in the State of North Carolina while employed by ITIC and for a period of two years following termination of their employment.</font></p> <p style="text-align: left;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">In addition, during the second quarter of 2004, ITIC entered into nonqualified deferred compensation plan agreements with these executives. The amount accrued for all agreements at December 31, 2012 and 2011 was approximately $<font class="_mt">6,303,000</font> and $<font class="_mt">5,740,000</font>, respectively, which includes postretirement compensation and health benefits, and was calculated based on the terms of the contract. Both the 2012 and 2011 accruals are included in the accounts payable and accrued liabilities line item of the Consolidated Balance Sheets. These executive contracts are accounted for on an individual contract basis. On December 24, 2008, the executive contracts were amended effective January 1, 2009 to bring them into compliance with Section 409A of the Internal Revenue Code, and were amended and restated to provide for an annual cash payment to the officers equal to the amounts the Company would have contributed to their accounts under its 401(k) plan if such contributions were not limited by the federal tax laws, less the amount of any contributions that the Company actually makes to their accounts under the Company's 401(k) plan.</font></p> <p style="text-align: left;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">On November 17, 2003, ITIC entered into employment agreements with key executives that provide for the continuation of certain employee benefits upon retirement. The executive employee benefits include health insurance, dental insurance, vision insurance and life insurance. The benefits are </font><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">unfunded. Estimated future benefit payouts expected to be paid for each of the next five years are $<font class="_mt">3,993</font> in 2013, $<font class="_mt">4,462</font> in 2014, $<font class="_mt">4,930</font> in 2015, $<font class="_mt">5,395</font> in 2016, $<font class="_mt">9,489</font> in 2017 and $<font class="_mt">100,231</font> in the next five years thereafter.</font></p> <p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Cost of the Company's postretirement benefits included the following components:</font></p> <div> <table style="width: 618px; height: 186px;" border="0" cellspacing="0"> <tr><td width="70%"> </td> <td width="1%"> </td> <td width="11%"> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="1%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="70%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="11%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2012</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">2011</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td width="70%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Net periodic benefit cost</font></b></td> <td width="1%" align="left">&nbsp;</td> <td width="11%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="10%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 1px;" width="70%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Service cost &#8211; benefits earned during the year</font></td> <td width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="11%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">12,617</font></b></td> <td width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="10%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">19,503</font></td> <td width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 1px;" width="70%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Interest cost on projected benefit obligation</font></td> <td width="1%" align="left">&nbsp;</td> <td width="11%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">27,867</font></b></td> <td width="1%" align="left">&nbsp;</td> <td width="10%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">24,607</font></td> <td width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 1px;" width="70%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Amortization of unrecognized prior service cost</font></td> <td width="1%" align="left">&nbsp;</td> <td width="11%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">9,396</font></b></td> <td width="1%" align="left">&nbsp;</td> <td width="10%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">13,038</font></td> <td width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 1px;" width="70%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Amortization of unrecognized loss (gain)</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">680</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(318</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="70%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Net periodic benefit cost at end of year</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">50,560</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">56,830</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td></tr></table></div> <p style="margin: 0px;">&nbsp;</p> <p style="text-align: left;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">The Company is required to recognize the funded status (i.e., the difference between the fair value of the assets and the accumulated postretirement benefit obligations of its postretirement benefits) in its Consolidated Balance Sheet, with a corresponding adjustment to accumulated other comprehensive income, net of tax. The net amount in accumulated other comprehensive income is $<font class="_mt">(155,234)</font>, $<font class="_mt">(102,453)</font> net of tax, for December 31, 2012, and $<font class="_mt">(82,392)</font>, $<font class="_mt">(54,376)</font> net of tax, for December 31, 2011, and represents the net unrecognized actuarial losses and unrecognized prior service costs. The effects of the funded status on the Company's Consolidated Balance Sheets at December 31, 2012 and 2011 are presented in the following table:</font></p> <div> <table style="width: 810px; height: 201px;" border="0" cellspacing="0"> <tr><td width="69%"> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="1%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="69%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2012</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">2011</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td width="69%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Funded status</font></b></td> <td width="1%" align="right">&nbsp;</td> <td width="10%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="1%" align="right">&nbsp;</td> <td width="10%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td width="69%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Actuarial present value of future benefits:</font></td> <td width="1%" align="right">&nbsp;</td> <td width="10%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="1%" align="right">&nbsp;</td> <td width="10%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="69%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Fully eligible active employee</font></td> <td width="1%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="10%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">(401,553</font></b></td> <td width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></b></td> <td width="1%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="10%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(354,308</font></td> <td width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="69%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Non-eligible active employees</font></td> <td width="1%" align="right">&nbsp;</td> <td width="10%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">(310,743</font></b></td> <td width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></b></td> <td width="1%" align="right">&nbsp;</td> <td width="10%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(234,586</font></td> <td width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="69%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Plan assets</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td width="69%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Funded status of accumulated postretirement benefit obligation, recognized in</font></td> <td width="1%" align="right">&nbsp;</td> <td width="10%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="1%" align="right">&nbsp;</td> <td width="10%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="69%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">other liabilities</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">(712,296</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(588,894</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></td></tr></table></div> <p style="margin: 0px;">&nbsp;</p> <p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Development of the accumulated postretirement benefit obligation for the years ended December 31, 2012 and 2011 includes the following:</font></p> <div> <table style="width: 817px; height: 155px;" border="0" cellspacing="0"> <tr><td width="66%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="11%"> </td> <td width="1%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="66%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="12%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2012</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="11%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">2011</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td width="66%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Accrued postretirement benefit obligation at beginning of year</font></td> <td width="1%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">(588,894</font></b></td> <td width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></b></td> <td width="1%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="11%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(429,695</font></td> <td width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></td></tr> <tr valign="bottom"><td width="66%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Service cost &#8211; benefits earned during the year</font></td> <td width="1%" align="right">&nbsp;</td> <td width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">(12,617</font></b></td> <td width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></b></td> <td width="1%" align="right">&nbsp;</td> <td width="11%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(19,503</font></td> <td width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></td></tr> <tr valign="bottom"><td width="66%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Interest cost on projected benefit obligation</font></td> <td width="1%" align="right">&nbsp;</td> <td width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">(27,867</font></b></td> <td width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></b></td> <td width="1%" align="right">&nbsp;</td> <td width="11%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(24,607</font></td> <td width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="66%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Actuarial loss</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">(82,918</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(115,089</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="66%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Accrued postretirement benefit obligation at end of year</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">(712,296</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(588,894</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></td></tr></table></div> <p style="margin: 0px;">&nbsp;</p> <p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">The changes in amounts related to accumulated other comprehensive income, pre-tax, are as follows:</font></p> <div> <table style="width: 821px; height: 186px;" border="0" cellspacing="0"> <tr><td width="70%"> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="8%"> </td> <td width="1%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="70%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">2012</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">2011</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td width="70%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Balance at beginning of year</font></td> <td width="1%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="10%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">82,392</font></b></td> <td width="1%" align="left">&nbsp;</td> <td width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(19,977</font></td> <td width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></td></tr> <tr valign="bottom"><td width="70%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Components of accumulated other comprehensive income:</font></td> <td width="1%" align="right">&nbsp;</td> <td width="10%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="8%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 3px;" width="70%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Unrecognized prior service cost</font></td> <td width="1%" align="right">&nbsp;</td> <td width="10%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">(9,396</font></b></td> <td width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></b></td> <td width="1%" align="left">&nbsp;</td> <td width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(13,038</font></td> <td width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></td></tr> <tr valign="bottom"><td style="text-indent: 3px;" width="70%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Amortization of (loss) gain, net</font></td> <td width="1%" align="right">&nbsp;</td> <td width="10%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">(680</font></b></td> <td width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></b></td> <td width="1%" align="left">&nbsp;</td> <td width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">318</font></td> <td width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 3px;" width="70%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Actuarial loss</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">82,918</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">115,089</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="70%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Balance at end of year</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">155,234</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">82,392</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td></tr></table></div> <p style="margin: 0px;">&nbsp;</p> <p style="text-align: left;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">The amounts currently in accumulated other comprehensive income, pre-tax, that will be recognized as components of net periodic benefit costs in 2013 are:</font></p> <div> <table style="width: 658px; height: 136px;" border="0" cellspacing="0"> <tr><td width="81%"> </td> <td width="1%"> </td> <td width="15%"> </td> <td width="1%"> </td></tr> <tr valign="bottom"><td width="81%" align="left">&nbsp;</td> <td width="1%" align="right">&nbsp;</td> <td width="15%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Projected</font></td> <td width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="81%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="15%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">2013</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td width="81%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Amortization of unrecognized prior service cost</font></td> <td width="1%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="15%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">(1,518</font></b></td> <td width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></b></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="81%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Amortization of unrecognized loss</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">6,293</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="81%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Net periodic benefit cost at end of year</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">4,775</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td></tr></table></div> <p style="margin: 0px;">&nbsp;</p> <div>&nbsp;</div><br /> <p style="text-align: left;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Assumed health care cost trend rates do have an effect on the amounts reported for the postretirement benefit obligations. The following illustrates the effects on the net periodic postretirement benefit cost ("NPPBC") and the accumulated postretirement benefit obligation ("APBO") of a one percentage point increase and one percentage point decrease in the assumed health care cost trend rate as of December 31, 2012:</font></p> <div> <table style="width: 766px; height: 335px;" border="0" cellspacing="0"> <tr><td width="70%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td></tr> <tr valign="bottom"><td width="70%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="12%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">One</font>-</font></td> <td width="1%" align="center">&nbsp;</td> <td width="12%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">One</font>-</font></td> <td width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td width="70%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="12%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Percentage</font></td> <td width="1%" align="center">&nbsp;</td> <td width="12%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Percentage</font></td> <td width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td width="70%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="12%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Point</font></td> <td width="1%" align="center">&nbsp;</td> <td width="12%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Point</font></td> <td width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="70%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="12%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Increase</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="12%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Decrease</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td width="70%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Net periodic postretirement benefit cost</font></td> <td width="1%" align="left">&nbsp;</td> <td width="12%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="12%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="70%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Effect on the service cost component</font></td> <td width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">4,369</font></b></td> <td width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">(3,265</font></b></td> <td width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></b></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="70%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Effect on interest cost</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">6,591</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">(5,010</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></b></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="70%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Total effect on the net periodic postretirement benefit cost</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">10,960</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">(8,275</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></b></td></tr> <tr valign="bottom"><td width="70%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Accumulated postretirement benefit obligation (including active</font></td> <td width="1%" align="left">&nbsp;</td> <td width="12%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="12%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td width="70%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">employees who are not fully eligible)</font></td> <td width="1%" align="left">&nbsp;</td> <td width="12%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td> <td width="12%" align="left">&nbsp;</td> <td width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="70%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Effect on those currently receiving benefits (retirees and spouses)</font></td> <td width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">0</font></b></td> <td width="1%" align="left">&nbsp;</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="70%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Effect on active fully eligible</font></td> <td width="1%" align="left">&nbsp;</td> <td width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">78,530</font></b></td> <td width="1%" align="left">&nbsp;</td> <td width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">(60,962</font></b></td> <td width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></b></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="70%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Effect on actives not yet eligible</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">86,245</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">(64,280</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></b></td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="70%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Total effect on the accumulated postretirement benefit obligation</font></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">164,775</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></b></td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">(125,242</font></b></td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">)</font></b></td></tr></table></div> <p style="margin: 0px;">&nbsp;</p> </div> 588894 712296 3342427 6072115 1000000 100000 200000 100000 1000000 200000 0 0 0 0 6810000 11037714 1218000 1902581 <div> <div> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="font-style: italic; display: inline; font-size: 9pt; font-weight: bold;" class="_mt">Allowance for Doubtful Accounts</font> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Company management continually evaluates the </font><font style="display: inline; font-size: 9pt;" class="_mt">collectability</font><font style="display: inline; font-size: 9pt;" class="_mt"> of receivables and provides an allowance for doubtful accounts equal to estimated losses expected to be incurred in the collection of amounts receivable.</font><font style="display: inline; font-size: 9pt;" class="_mt"> &nbsp;Changes to the allowance for doubtful accounts are</font><font style="display: inline; font-size: 9pt;" class="_mt"> reflect</font><font style="display: inline; font-size: 9pt;" class="_mt">ed</font><font style="display: inline; font-size: 9pt;" class="_mt"> &nbsp;w</font><font style="display: inline; font-size: 9pt;" class="_mt">ithin net premiums written</font><font style="display: inline; font-size: 9pt;" class="_mt"> in the Cons</font><font style="display: inline; font-size: 9pt;" class="_mt">olidated Statements of Income</font><font style="display: inline; font-size: 9pt;" class="_mt">.&nbsp;&nbsp;Amounts are charged off in the period they are deemed to be uncollectible.</font> </p></div> </div> -203000 684581 81529333 102331102 2743517 4651115 9851523 15646381 14974850 6892141 861865 2301647 0 220455 31157 65837 155163 160557 1513466 2487582 6933936 11190907 <div> <div style="margin-left: 21pt; margin-right: 21pt;"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt; font-weight: bold;" class="_mt">4. Property and Equipment</font> </p> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;">&nbsp;</p> <p style="line-height: normal; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt; font-weight: bold;" class="_mt"> </font></p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Property and equipment and estimated useful lives at December 31 are summarized as follows: </font></p> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></p> <div style="width: 100%;"> <table style="width: 360.9pt; border-collapse: collapse; margin-left: 0pt;" cellspacing="0" cellpadding="0"> <tr><td style="border-bottom: #000000 1pt solid; padding-bottom: 0pt; padding-left: 6.5pt; width: 207.9pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="line-height: normal; margin: 0pt; font-family: Times New Roman; font-size: 9pt;">&nbsp;</p></td> <td style="border-bottom: #000000 1pt solid; padding-bottom: 0pt; padding-left: 6.5pt; width: 76.5pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="text-align: center; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt; font-weight: bold;" class="_mt">201</font><font style="display: inline; font-size: 9pt; font-weight: bold;" class="_mt">2</font></p></td> <td style="border-bottom: #000000 1pt solid; padding-bottom: 0pt; padding-left: 6.5pt; width: 76.5pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="text-align: center; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">20</font><font style="display: inline; font-size: 9pt;" class="_mt">1</font><font style="display: inline; font-size: 9pt;" class="_mt">1</font></p></td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 207.9pt; padding-right: 6.5pt; border-top: #000000 1pt solid; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Land</font></p></td> <td style="text-align: right; width: 76.5pt; font-family: Times New Roman; font-size: 9pt; border-top: #000000 1pt solid; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;">$</div>1,107,582&nbsp; </td> <td style="text-align: right; width: 76.5pt; font-family: Times New Roman; font-size: 9pt; border-top: #000000 1pt solid;" valign="top" nowrap="nowrap"> <div style="float: left;">$</div>1,107,582&nbsp; </td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 207.9pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Office buildings and improvements (</font><font style="display: inline; font-size: 9pt;" class="_mt">25</font><font style="display: inline; font-size: 9pt;" class="_mt"> years)</font></p></td> <td style="text-align: right; width: 76.5pt; font-family: Times New Roman; font-size: 9pt; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>3,345,762&nbsp; </td> <td style="text-align: right; width: 76.5pt; font-family: Times New Roman; font-size: 9pt;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>3,259,383&nbsp; </td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 207.9pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Furniture, fixtures and equipment (3 to 10 years)</font></p></td> <td style="text-align: right; width: 76.5pt; font-family: Times New Roman; font-size: 9pt; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>5,209,505&nbsp; </td> <td style="text-align: right; width: 76.5pt; font-family: Times New Roman; font-size: 9pt;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>5,114,112&nbsp; </td></tr> <tr><td style="border-bottom: #000000 1pt solid; padding-bottom: 0pt; padding-left: 6.5pt; width: 207.9pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Automobiles (</font><font style="display: inline; font-size: 9pt;" class="_mt">3</font><font style="display: inline; font-size: 9pt;" class="_mt"> years)</font></p></td> <td style="border-bottom: #000000 1pt solid; text-align: right; width: 76.5pt; font-family: Times New Roman; font-size: 9pt; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>787,180&nbsp; </td> <td style="border-bottom: #000000 1pt solid; text-align: right; width: 76.5pt; font-family: Times New Roman; font-size: 9pt;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>792,592&nbsp; </td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 207.9pt; padding-right: 6.5pt; border-top: #000000 1pt solid; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">&nbsp;&nbsp;&nbsp;&nbsp;Total</font></p></td> <td style="text-align: right; width: 76.5pt; font-family: Times New Roman; font-size: 9pt; border-top: #000000 1pt solid; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>10,450,029&nbsp; </td> <td style="text-align: right; width: 76.5pt; font-family: Times New Roman; font-size: 9pt; border-top: #000000 1pt solid;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>10,273,669&nbsp; </td></tr> <tr><td style="border-bottom: #000000 1pt solid; padding-bottom: 0pt; padding-left: 6.5pt; width: 207.9pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Less accumulated depreciation</font></p></td> <td style="border-bottom: #000000 1pt solid; text-align: right; width: 76.5pt; font-family: Times New Roman; font-size: 9pt; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>(6,846,706) </td> <td style="border-bottom: #000000 1pt solid; text-align: right; width: 76.5pt; font-family: Times New Roman; font-size: 9pt;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>(6,720,453) </td></tr> <tr><td style="border-bottom: #000000 2.25pt solid; padding-bottom: 0pt; padding-left: 6.5pt; width: 207.9pt; padding-right: 6.5pt; border-top: #000000 1pt solid; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Property and equipment, net</font></p></td> <td style="border-bottom: #000000 2.25pt solid; text-align: right; width: 76.5pt; font-family: Times New Roman; font-size: 9pt; border-top: #000000 1pt solid; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;">$</div>3,603,323&nbsp; </td> <td style="border-bottom: #000000 2.25pt solid; text-align: right; width: 76.5pt; font-family: Times New Roman; font-size: 9pt; border-top: #000000 1pt solid;" valign="top" nowrap="nowrap"> <div style="float: left;">$</div>3,553,216&nbsp; </td></tr></table></div> <p style="line-height: normal; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt; font-weight: bold;" class="_mt"> </font></p></div> </div> 10273669 792592 3259383 5114112 1107582 10450029 787180 3345762 5209505 1107582 3553216 3603323 <div> <div> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="font-style: italic; display: inline; font-size: 9pt; font-weight: bold;" class="_mt">Property and Equipment</font> </p> <p style="text-indent: 18pt; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Property and equipment are recorded at cost and are depreciated principally under the straight-line method over the estimated useful lives (three to twenty-five years) of the respective assets. Maintenance and repairs are charged to operating expenses and improvements are capitalized.</font> </p></div> </div> <div> <table style="width: 360.9pt; border-collapse: collapse; margin-left: 0pt;" cellspacing="0" cellpadding="0"> <tr><td style="border-bottom: #000000 1pt solid; padding-bottom: 0pt; padding-left: 6.5pt; width: 207.9pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="line-height: normal; margin: 0pt; font-family: Times New Roman; font-size: 9pt;">&nbsp;</p></td> <td style="border-bottom: #000000 1pt solid; padding-bottom: 0pt; padding-left: 6.5pt; width: 76.5pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="text-align: center; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt; font-weight: bold;" class="_mt">201</font><font style="display: inline; font-size: 9pt; font-weight: bold;" class="_mt">2</font></p></td> <td style="border-bottom: #000000 1pt solid; padding-bottom: 0pt; padding-left: 6.5pt; width: 76.5pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="text-align: center; margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">20</font><font style="display: inline; font-size: 9pt;" class="_mt">1</font><font style="display: inline; font-size: 9pt;" class="_mt">1</font></p></td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 207.9pt; padding-right: 6.5pt; border-top: #000000 1pt solid; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Land</font></p></td> <td style="text-align: right; width: 76.5pt; font-family: Times New Roman; font-size: 9pt; border-top: #000000 1pt solid; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;">$</div>1,107,582&nbsp; </td> <td style="text-align: right; width: 76.5pt; font-family: Times New Roman; font-size: 9pt; border-top: #000000 1pt solid;" valign="top" nowrap="nowrap"> <div style="float: left;">$</div>1,107,582&nbsp; </td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 207.9pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Office buildings and improvements (</font><font style="display: inline; font-size: 9pt;" class="_mt">25</font><font style="display: inline; font-size: 9pt;" class="_mt"> years)</font></p></td> <td style="text-align: right; width: 76.5pt; font-family: Times New Roman; font-size: 9pt; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>3,345,762&nbsp; </td> <td style="text-align: right; width: 76.5pt; font-family: Times New Roman; font-size: 9pt;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>3,259,383&nbsp; </td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 207.9pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Furniture, fixtures and equipment (3 to 10 years)</font></p></td> <td style="text-align: right; width: 76.5pt; font-family: Times New Roman; font-size: 9pt; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>5,209,505&nbsp; </td> <td style="text-align: right; width: 76.5pt; font-family: Times New Roman; font-size: 9pt;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>5,114,112&nbsp; </td></tr> <tr><td style="border-bottom: #000000 1pt solid; padding-bottom: 0pt; padding-left: 6.5pt; width: 207.9pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Automobiles (</font><font style="display: inline; font-size: 9pt;" class="_mt">3</font><font style="display: inline; font-size: 9pt;" class="_mt"> years)</font></p></td> <td style="border-bottom: #000000 1pt solid; text-align: right; width: 76.5pt; font-family: Times New Roman; font-size: 9pt; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>787,180&nbsp; </td> <td style="border-bottom: #000000 1pt solid; text-align: right; width: 76.5pt; font-family: Times New Roman; font-size: 9pt;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>792,592&nbsp; </td></tr> <tr><td style="padding-bottom: 0pt; padding-left: 6.5pt; width: 207.9pt; padding-right: 6.5pt; border-top: #000000 1pt solid; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">&nbsp;&nbsp;&nbsp;&nbsp;Total</font></p></td> <td style="text-align: right; width: 76.5pt; font-family: Times New Roman; font-size: 9pt; border-top: #000000 1pt solid; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>10,450,029&nbsp; </td> <td style="text-align: right; width: 76.5pt; font-family: Times New Roman; font-size: 9pt; border-top: #000000 1pt solid;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>10,273,669&nbsp; </td></tr> <tr><td style="border-bottom: #000000 1pt solid; padding-bottom: 0pt; padding-left: 6.5pt; width: 207.9pt; padding-right: 6.5pt; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Less accumulated depreciation</font></p></td> <td style="border-bottom: #000000 1pt solid; text-align: right; width: 76.5pt; font-family: Times New Roman; font-size: 9pt; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>(6,846,706) </td> <td style="border-bottom: #000000 1pt solid; text-align: right; width: 76.5pt; font-family: Times New Roman; font-size: 9pt;" valign="top" nowrap="nowrap"> <div style="float: left;"> </div>(6,720,453) </td></tr> <tr><td style="border-bottom: #000000 2.25pt solid; padding-bottom: 0pt; padding-left: 6.5pt; width: 207.9pt; padding-right: 6.5pt; border-top: #000000 1pt solid; padding-top: 0pt;" valign="top"> <p style="margin: 0pt; font-family: Times New Roman; font-size: 9pt;"><font style="display: inline; font-size: 9pt;" class="_mt">Property and equipment, net</font></p></td> <td style="border-bottom: #000000 2.25pt solid; text-align: right; width: 76.5pt; font-family: Times New Roman; font-size: 9pt; border-top: #000000 1pt solid; font-weight: bold;" valign="top" nowrap="nowrap"> <div style="float: left;">$</div>3,603,323&nbsp; </td> <td style="border-bottom: #000000 2.25pt solid; text-align: right; width: 76.5pt; font-family: Times New Roman; font-size: 9pt; border-top: #000000 1pt solid;" valign="top" nowrap="nowrap"> <div style="float: left;">$</div>3,553,216&nbsp; </td></tr></table> </div> P3Y P25Y P25Y P3Y