Exhibit 99.1

MEADOWBROOK INSURANCE GROUP, INC.
(NYSE — MIG)

CONTACT:		Karen M. Spaun, SVP & Chief Financial Officer, (248) 204-8178 Holly Moltane, Controller — GAAP Financial Reporting, (248) 204-8590

MEADOWBROOK INSURANCE GROUP, INC.
REPORTS FOURTH QUARTER AND FULL YEAR 2009 RESULTS

• Fourth quarter net operating income up 10.5% to $13.6 million, or $0.24 per diluted share

• Full year net operating income up 37.9% to $53.5 million, or $0.93 per diluted share

• Fourth quarter net income up 113.4% to $16.4 million, or $0.29 per diluted share

• Full year net income up 92.2% to $52.7 million, or $0.92 per diluted share

• Combined ratio of 94.3% for the fourth quarter and 92.6% for the year

• Gross written premium up 32.1% in the fourth quarter and 50.5% for the year

• Book value per share of $9.06, up 18.6% for the year

SOUTHFIELD, MICHIGAN
February 16, 2010

Fourth Quarter 2009 Highlights and Overview:

	•		Net operating income, a non-GAAP measure, increased 10.5% to $13.6 million, or $0.24 per diluted share, in the fourth quarter of 2009 compared to $12.3 million, or $0.21 per diluted share, in the fourth quarter of 2008.
	•		Net income increased $8.7 million to $16.4 million, or $0.29 per diluted share, in the fourth quarter of 2009 compared to $7.7 million, or $0.13 per diluted share for the fourth quarter of 2008.
	•		The combined ratio was 94.3% in the fourth quarter of 2009, compared to 91.8% for the fourth quarter of 2008.
	•		Gross written premium increased by $44.4 million to $182.8 million in the fourth quarter of 2009 compared to $138.4 million in the fourth quarter of 2008.
	•		Book value per share increased by 18.6% year to date to $9.06 per share compared to $7.64 per share at December 31, 2008. Unrealized gains, net of tax, increased book value by $0.52 per share since December 31, 2008.
	•		We repurchased 1.6 million shares during the quarter and our Board of Directors authorized the repurchase of up to another 5.0 million shares, pursuant to a newly adopted share repurchase plan.

Full Year 2009 Highlights and Overview:

•

2009 net operating income, a non-GAAP measure, increased 37.9% to $53.5 million, or $0.93 per diluted share, compared to $38.8 million, or $0.86 per diluted share, in 2008.

PRESS RELEASE		PAGE 2

	•		2009 net income increased 92.2% to $52.7 million, or $0.92 per diluted share, compared to $27.4 million, or $0.61 per diluted share in 2008.
	•		The 2009 combined ratio improved to 92.6% compared to 93.3% in 2008.
	•		The 2009 accident year combined ratio, a non-GAAP measure, was 97.9%, relatively unchanged compared to an accident year combined ratio of 97.8% in 2008.
	•		Gross written premiums for 2009 grew by 50.5% to $688.7 million compared to $457.7 million in 2008.

Meadowbrook Insurance Group, Inc. (NYSE: MIG) reported that fourth quarter net operating income, a non-GAAP measure, grew by 10.5% to $13.6 million, or $0.24 per diluted share, compared to $12.3 million, or $0.21 per diluted share, in the fourth quarter of 2008. Net income increased $8.7 million to $16.4 million, or $0.29 per diluted share in the fourth quarter of 2009 compared to $7.7 million, or $0.13 per diluted share, in the fourth quarter of 2008. Fourth quarter 2009 net income includes net after-tax realized gains of $2.9 million related to the sale of certain investment securities. This compares to after-tax realized losses of $4.6 million in the fourth quarter of 2008 related to other than temporary impairments of certain preferred stocks, corporate bonds, asset-backed and mortgage-backed securities.

The fourth quarter 2009 GAAP combined ratio was 94.3%, compared to 91.8% for the fourth quarter of 2008. The loss ratio for the fourth quarter of 2009 was 60.6% compared to 59.5% for the fourth quarter of 2008. The fourth quarter 2009 loss ratio includes 5.3 percentage points of favorable prior year reserve development, compared to 4.5 percentage points of favorable prior year reserve development in the fourth quarter of 2008. Pre-tax favorable development on prior year accident reserves was $7.8 million in the fourth quarter of 2009 compared to $5.5 million in the fourth quarter of 2008. The expense ratio for the fourth quarter of 2009 was 33.7% compared to 32.3% for the fourth quarter of 2008.

Fourth quarter 2009 gross written premium increased 32.1% to $182.8 million compared to $138.4 million in the fourth quarter of 2008. The increase in gross written premium in the fourth quarter of 2009 was primarily due to programs initiated in 2008 and 2009.

Net commission and fee revenue for the fourth quarter of 2009 declined 4.9% to $8.5 million compared to $8.9 million in the fourth quarter of 2008. The decline was primarily the result of lower premium volume due to mandatory rate reductions and competition. Additionally, a program for which we previously provided policy administration services decided to perform those functions in-house.

Equity earnings of affiliates, net of tax, was $874,000 for the fourth quarter of 2009. This is related to a 2009 minority investment we made in an insurance company and related agency.

Commenting on the results, Meadowbrook President and Chief Executive Officer Robert S. Cubbin stated: “We are very pleased with our results for the year. Gross written premiums increased by more than 50%, net operating EPS of $0.93 per share exceeded our range of expectations and, in a competitive market, our accident year combined ratio held steady at 97.9%. In 2009, we integrated Century and continue to implement and recognize additional synergies. With a return on average equity of 11.2% in 2009, we are back on track for sustainable, double digit return on average equity results.”

“We continue to work from a strong capital and liquidity position and our investment portfolio remains conservatively positioned. During the fourth quarter of 2009, we repurchased 1.6 million shares. Our Board authorized the repurchase of up to another 5 million shares, pursuant to a newly adopted share repurchase plan.”

Full Year 2009 Overview

PRESS RELEASE		PAGE 3

Net operating income for the year ended December 31, 2009 increased 37.9% to $53.5 million, or $0.93 per diluted share, compared to $38.8 million, or $0.86 per diluted share in 2008. 2009 net income increased 92.2% to $52.7 million or $0.92 per share compared to $27.4 million or $0.61 per share in 2008. Our results for 2009 include $3.5 million of other than temporary impairment charges in our investment portfolio, compared to other than temporary impairment charges of $11.7 million in 2008. Offsetting the impairment charges in 2009 were $3.6 million in pre-tax realized gains recognized in the fourth quarter related to the sale of certain investment securities.

In 2009, gross written premiums increased $231.0 million, or 50.5%, to $688.7 million compared to $457.7 million in 2008. The increase is due to a full year of Century Insurance Group premiums, the further maturation of programs initiated in 2008 and new programs implemented in 2009. Excluding Century Insurance Group premiums, gross written premiums grew approximately 24% in 2009 compared to 2008.

Our year to date GAAP combined ratio for 2009 improved slightly to 92.6% compared to 93.3% for 2008. The loss ratio for 2009 was 60.7% compared to 62.0% for 2008. The expense ratio for 2009 was 31.9% compared to 31.3% for 2008. The 2009 combined ratio includes 0.7 points of extraordinary storm losses in the Midwest, and the 2008 combined ratio includes 2.3 points related to catastrophic storm losses from Hurricanes Gustav and Ike. Additionally, the 2009 combined ratio includes 5.3 points of favorable prior year development compared to 4.5 points of favorable prior year development in 2008. This continued favorable development is primarily attributable to our history of disciplined underwriting, controls over pricing, long-term loyal partners and strong claims management.

Other Matters

Shareholders’ Equity:

At December 31, 2009, shareholders’ equity was $502.9 million, or $9.06 per common share compared to $438.2 million, or $7.64 per common share, at December 31, 2008. The increase in shareholders’ equity is due primarily to net income of $52.7 million and unrealized gains, net of deferred taxes of $29.1 million, partially offset by dividend payments of $5.2 million and share repurchases of $13.9 million.

The 18.6% increase in book value per share includes unrealized gains, net of tax of $0.52 per share since December 31, 2008.

At December 31, 2009, our debt-to-equity ratio was 26.0% compared to 32.2% at December 31, 2008. Our debt to equity ratio excluding debentures was 9.9% at December 31, 2009 compared to 13.8% at December 31, 2008.

Dividend and Share Repurchases:

On February 12, 2010, our Board of Directors declared a quarterly dividend of $0.03 per share payable on April 5, 2010 to shareholders of record as of March 19, 2010.

We repurchased 1.6 million shares during the fourth quarter of 2009 at an average cost of $7.08 per share. For the year, we repurchased 1.9 million shares at an average cost of $7.18 per share. On February 12, 2010, our Board of Directors authorized the repurchase of up to another 5.0 million shares, pursuant to a newly adopted share repurchase plan. The expiration of the new share repurchase plan is February 2012.

Investment Portfolio:

At December 31, 2009, our pre-tax book yield was 4.4%, and our average reinvestment yield for 2009 was 4.7%. The duration of the portfolio was 4.4 years at December 31, 2009, compared to 4.5 years at December 31, 2008.

Net investment income for the fourth quarter of 2009 was $12.9 million, up from $11.9 million in the fourth

PRESS RELEASE		PAGE 4

quarter of 2008. For the year, 2009 net investment income was $50.4 million compared to $36.6 million for 2008. The increase in net investment income is primarily related to investment income from the Century Insurance portfolio.

2010 Expectations

For 2010, we expect net operating income to be in a range of $48.5 million to $54.5 million. We expect gross written premium in a range of $790 million to $815 million, and the combined ratio should be in a range of 95.5% to 96.5%. Achieving results within these ranges would result in net operating income in a range of $0.85 to $0.95 per share.

Commenting on the 2010 outlook, Mr. Cubbin stated: “We are working from a position of strength going into 2010. We expect programs implemented in 2008 to further mature, and we anticipate growth from the regional workers’ compensation initiatives we launched in 2009. We anticipate the market will remain competitive in 2010, and could look a lot like the second half of 2009—still competitive, but stabilizing. We have opportunities to grow profitably with adequate pricing, and we continue to work on implementing additional revenue enhancing synergies with Century.”

Conference Call

Meadowbrook’s 2009 fourth quarter and full year results will be discussed by management in more detail on Wednesday, February 17, 2010 at 9:00 a.m. Eastern Time.

To listen to the call, please dial 1-877-407-8035 approximately five minutes prior to the start of the call and ask for the Meadowbrook conference call. Additionally, the conference call will be broadcast live over the Internet and can be accessed by all interested parties via the investor relations section of our website at www.meadowbrook.com or www.investorcalendar.com.

For those who cannot listen to the live conference call, a replay of the call will be available through Tuesday, February 23, 2010 by dialing 1-877-660-6853 and referring to conference ID 343345 and account number 286. The webcast will be archived and available for replay through Monday, May 17, 2010.

About Meadowbrook Insurance Group

Meadowbrook Insurance Group, Inc., based in Southfield, Michigan, is a leader in the specialty program management market. Meadowbrook includes several agencies, claims and loss prevention facilities, self-insured management organizations and seven property and casualty insurance underwriting companies, including one in Bermuda. Meadowbrook has twenty-six locations in the United States. Meadowbrook is a risk management organization, specializing in specialty risk management solutions for agents, professional and trade associations, and small to medium-sized insureds. Meadowbrook Insurance Group, Inc. common shares are listed on the New York Stock Exchange under the symbol “MIG”. For further information, please visit Meadowbrook’s corporate web site at www.meadowbrook.com.

Certain statements made by Meadowbrook Insurance Group, Inc. in this release may constitute forward-looking statements including, but not limited to, those statements that include the words “believes,” “expects,” “anticipates,” “estimates,” or similar expressions. Please refer to the Company’s most recent 10-K, 10-Q, and other Securities and Exchange Commission filings for more information on risk factors. Actual results could differ materially. These forward-looking statements involve risks and uncertainties including, but not limited to the following: the frequency and severity of claims; uncertainties inherent in reserve estimates; catastrophic events; a change in the demand for, pricing of, availability or collectability of reinsurance; increased rate pressure on premiums; obtainment of certain rate increases in current market conditions; investment rate of return; changes in and adherence to insurance regulation; actions taken by regulators, rating agencies or lenders; obtainment of certain processing efficiencies; changing rates of inflation; and general economic conditions. Meadowbrook is not under any obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

EARNINGS RELEASE		PAGE 5

MEADOWBROOK INSURANCE GROUP, INC.
FINANCIAL INFORMATION

SUPPLEMENT TO THE EARNINGS RELEASE
UNAUDITED BALANCE SHEET INFORMATION

		DECEMBER 31,				DECEMBER 31,
(In Thousands, Except Per Share Data)		2009				2008
BALANCE SHEET DATA
ASSETS
Cash and invested assets		$	1,203,215			$	1,085,648
Premium & agents balances			155,327				117,675
Reinsurance recoverable			274,525				268,703
Deferred policy acquisition costs			68,787				56,454
Prepaid reinsurance premiums			35,298				31,885
Goodwill			118,842				119,028
Other assets			133,822				134,523
Total Assets		$	1,989,816			$	1,813,916
LIABILITIES
Loss and loss adjustment expense reserves		$	949,177			$	885,697
Unearned premium reserves			325,915				282,086
Debt			49,875				60,250
Debentures			80,930				80,930
Other liabilities			81,038				66,783
Total Liabilities			1,486,935				1,375,746
STOCKHOLDERS’ EQUITY
Common stockholders’ equity			502,881				438,170
Total Liabilities & Stockholders’ Equity		$	1,989,816			$	1,813,916
Book value per common share		$	9.06			$	7.64
Book value per common share excluding unrealized gain/loss, net of deferred taxes		$	8.59			$	7.70

EARNINGS RELEASE		PAGE 6

MEADOWBROOK INSURANCE GROUP, INC.
FINANCIAL INFORMATION

SUPPLEMENT TO THE EARNINGS RELEASE
UNAUDITED INCOME STATEMENT INFORMATION

		FOR THE QUARTER								FOR THE TWELVE MONTHS
(In Thousands, Except		ENDED DECEMBER 31,								ENDED DECEMBER 31,
Share & Per Share Data)		2009				2008				2009				2008
SUMMARY DATA
Gross written premiums		$	182,820			$	138,427			$	688,687			$	457,683
Net written premiums			153,273				115,259				580,018				375,194
REVENUES
Net earned premiums		$	146,025			$	122,425			$	539,602			$	369,721
Net commissions and fees			8,495				8,932				37,881				42,904
Net investment income			12,863				11,937				50,366				36,624
Net realized gains (losses)			3,467				(3,955	)			(225	)			(11,422	)
Total Revenues			170,850				139,339				627,624				437,827
EXPENSES
Net losses & loss adjustment expenses (1)			83,283				67,750				307,087				212,885
Salaries & employee benefits			21,522				18,908				80,923				62,862
Interest expense			2,535				2,783				10,596				7,681
Policy acquisition and other underwriting expenses (1)			30,783				23,961				110,715				69,294
Amortization expense			1,431				1,665				5,781				6,310
Other administrative expenses			10,090				10,153				39,413				35,000
Total Expenses			149,644				125,220				554,515				394,032
INCOME BEFORE INCOME TAXES AND EQUITY EARNINGS OF AFFILIATES AND UNCONSOLIDATED SUBSIDIARIES			21,206				14,119				73,109				43,795
Income tax expense			5,473				6,539				21,321				16,667
Equity earnings of affiliates, net of tax			874				—				874				—
Equity earnings of unconsolidated subsidiaries, net of tax			(161	)			126				(12	)			269
NET INCOME		$	16,446			$	7,706			$	52,650			$	27,397
Less: Net realized gains (losses), net of tax			2,888				(4,562	)			(865	)			(11,420	)
NET OPERATING INCOME (2)		$	13,558			$	12,268			$	53,515			$	38,817
Amortization expense			1,431				1,665				5,781				6,310
NET OPERATING INCOME, excluding amortization expense (3)		$	14,989			$	13,933			$	59,296			$	45,127
Diluted earnings per common share
Net income		$	0.29			$	0.13			$	0.92			$	0.61
Net operating income		$	0.24			$	0.21			$	0.93			$	0.86
Net operating income, excluding amortization expense		$	0.26			$	0.24			$	1.03			$	1.00
Diluted weighted average common shares outstanding			56,884,403				57,780,625				57,413,391				44,995,712
GAAP ratios:
Loss & LAE ratio			60.6	%			59.5	%			60.7	%			62.0	%
Other underwriting expense ratio			33.7	%			32.3	%			31.9	%			31.3	%
GAAP combined ratio			94.3	%			91.8	%			92.6	%			93.3	%

EARNINGS RELEASE		PAGE 7

     

MEADOWBROOK INSURANCE GROUP, INC.
FINANCIAL INFORMATION

SUPPLEMENT TO THE EARNINGS RELEASE
UNAUDITED UNCONSOLIDATED GAAP DATA

		FOR THE QUARTER								FOR THE TWELVE MONTHS
		ENDED DECEMBER 31,								ENDED DECEMBER 31,
(In Thousands)		2009				2008				2009				2008
Unconsolidated GAAP data — Ratio Calculation Table:
Net earned premiums		$	146,025			$	122,425			$	539,602			$	369,721
Consolidated net loss and LAE (1)		$	83,283			$	67,750			$	307,087			$	212,885
Intercompany claim fees			5,187				5,053				20,339				16,296
Unconsolidated net loss and LAE		$	88,470			$	72,803			$	327,426			$	229,181
GAAP loss and LAE ratio			60.6	%			59.5	%			60.7	%			62.0	%
Consolidated policy acquisition and other underwriting expenses (1)		$	30,783			$	23,949			$	110,715			$	69,349
Intercompany administrative and other underwriting fees			18,427				15,630				61,422				46,371
Unconsolidated policy acquisition and other underwriting expenses		$	49,210			$	39,579			$	172,137			$	115,720
GAAP other underwriting expense ratio			33.7	%			32.3	%			31.9	%			31.3	%
GAAP combined ratio			94.3	%			91.8	%			92.6	%			93.3	%

		2009				2008				2009				2008
Unconsolidated GAAP data — Gross Commissions and Fees:
Managed programs:
Management fees		$	3,659			$	3,990			$	18,901			$	21,168
Claims fees			1,654				2,090				7,428				8,879
Loss control fees			473				467				1,975				2,069
Reinsurance brokerage			443				157				931				728
Total managed programs			6,229				6,704				29,235				32,844
Agency commissions			2,565				2,425				9,561				11,064
Intersegment revenue			(299	)			(197	)			(915	)			(1,004	)
Net commissions and fees			8,495				8,932				37,881				42,904
Intercompany commissions and fees			23,614				20,683				81,761				62,667
Gross commissions and fees		$	32,109			$	29,615			$	119,642			$	105,571
Fee-for-service pre-tax income, excluding amortization		$	2,093			$	1,528			$	4,812			$	11,245
Pre-tax margin on fee-for-service income			6.5	%			5.2	%			4.0	%			10.7	%

EARNINGS RELEASE		PAGE 8

     

MEADOWBROOK INSURANCE GROUP, INC.
FINANCIAL INFORMATION

SUPPLEMENT TO THE EARNINGS RELEASE
UNAUDITED ADJUSTED GAAP EXPENSE RATIO SUMMARY

		FOR THE QUARTER								FOR THE TWELVE MONTHS
		ENDED DECEMBER 31,								ENDED DECEMBER 31,
(In Thousands)		2009				2008				2009				2008
Net earned premiums		$	146,025			$	122,425			$	539,602			$	369,721
Less: Unconsolidated net loss and LAE			88,470				72,803				327,426				229,181
Unconsolidated policy acquisition and other underwriting expenses			49,210				39,579				172,137				115,720
Underwriting income		$	8,345			$	10,043			$	40,039			$	24,820
GAAP combined ratio as reported			94.3	%			91.8	%			92.6	%			93.3	%
Specialty insurance operations pre-tax income		$	28,559			$	19,739			$	97,346			$	60,125
Less: Underwriting income			8,345				10,043				40,039				24,820
Net investment income and capital losses			16,330				7,982				50,141				25,202
Equity earnings of affiliates (1)			1,344				0				1,344				0
Fee-based operations pre-tax income			2,540				1,714				5,822				10,103
Agency operations pre-tax (loss) income			(447	)			(186	)			(1,010	)			1,142
Total fee-for-service pre-tax income		$	2,093			$	1,528			$	4,812			$	11,245
GAAP expense ratio as reported			33.7	%			32.3	%			31.9	%			31.3	%
Adjustment to include pre-tax income from total fee-for-service income (2)			1.4	%			1.2	%			0.9	%			3.0	%
GAAP expense ratio as adjusted (3)			32.3	%			31.1	%			31.0	%			28.3	%
GAAP loss and LAE ratio as reported			60.6	%			59.5	%			60.7	%			62.0	%
GAAP combined ratio as adjusted			92.9	%			90.6	%			91.7	%			90.3	%
Reconciliation of consolidated pre-tax income:
Specialty insurance operations pre-tax income:
Fee-based operations pre-tax income		$	2,540			$	1,714			$	5,822			$	10,103
Underwriting income			8,345				10,043				40,039				24,820
Net investment income and capital losses			16,330				7,982				50,141				25,202
Equity earnings of affiliates (1)			1,344				0				1,344				0
Total specialty insurance operations pre-tax income			28,559				19,739				97,346				60,125
Agency operations pre-tax (loss) income			(447	)			(186	)			(1,010	)			1,142
Less: Holding company expenses			1,596				986				5,506				3,481
Interest expense			2,535				2,783				10,596				7,681
Amortization expense			1,431				1,665				5,781				6,310
Equity earnings of affiliates (1)			1,344				0				1,344				0
Consolidated pre-tax income		$	21,206			$	14,119			$	73,109			$	43,795

EARNINGS RELEASE		PAGE 9

     

MEADOWBROOK INSURANCE GROUP, INC.
FINANCIAL INFORMATION

SUPPLEMENT TO THE EARNINGS RELEASE
UNAUDITED HISTORICAL INCOME STATEMENT INFORMATION

(In Thousands, Except Share & Per Share Data)		2006A				2007A				Q108A				Q208A				Q308A				Q408A				2008A				Q109A				Q209A				Q309A				Q409A				2009A
SUMMARY DATA
Gross written premiums		$	330,872			$	346,451			$	90,468			$	94,370			$	134,418			$	138,427			$	457,683			$	159,991			$	156,891			$	188,985			$	182,820			$	688,687
Net written premiums			262,668				280,211				71,399				76,071				112,465				115,259				375,194				133,516				134,524				158,705				153,273				580,018
INCOME STATEMENT
REVENUES
Net earned premiums		$	254,920			$	268,197			$	66,022			$	77,031			$	104,243			$	122,425			$	369,721			$	129,038			$	127,140			$	137,399			$	146,025			$	539,602
Commissions and fees (net)			41,172				45,988				12,031				9,632				12,309				8,932				42,904				10,237				8,396				10,753				8,495				37,881
Net investment income			22,075				26,400				7,148				6,917				10,622				11,937				36,624				12,342				12,397				12,764				12,863				50,366
Net realized gains (losses)			69				150				(31	)			(146	)			(7,290	)			(3,955	)			(11,422	)			(1,992	)			(958	)			(742	)			3,467				(225	)
Total Revenues			318,236				340,735				85,170				93,434				119,884				139,339				437,827				149,625				146,975				160,174				170,850				627,624
EXPENSES
Net losses & loss adjustment expenses			146,293				150,969				37,661				43,542				63,932				67,750				212,885				69,787				70,464				83,553				83,283				307,087
Policy acquisition and other underwriting expenses			50,479				53,717				13,147				12,716				19,470				23,961				69,294				23,969				27,139				28,824				30,783				110,715
Other administrative expenses			28,824				32,269				8,832				7,960				8,055				10,153				35,000				10,393				9,917				9,013				10,090				39,413
Salaries & employee benefits			54,569				56,433				12,755				14,143				17,056				18,908				62,862				19,827				19,945				19,629				21,522				80,923
Amortization expense			590				1,930				1,551				1,563				1,531				1,665				6,310				1,508				1,420				1,422				1,431				5,781
Interest expense			5,976				6,030				1,311				1,254				2,333				2,783				7,681				2,782				2,659				2,620				2,535				10,596
Total Expenses			286,731				301,348				75,257				81,178				112,377				125,220				394,032				128,266				131,544				145,061				149,644				554,515
INCOME BEFORE TAXES AND EQUITY EARNINGS			31,505				39,387				9,913				12,256				7,507				14,119				43,795				21,359				15,431				15,113				21,206				73,109
Income tax expense			9,599				11,726				2,911				3,879				3,338				6,539				16,667				7,869				3,823				4,156				5,473				21,321
Equity earnings of affiliates, net of tax			—				—				—				—				—				—				—				—				—				—				874				874
Equity earnings of unconsolidated subsidiaries, net of tax			128				331				56				61				26				126				269				50				37				62				(161	)			(12	)
NET INCOME		$	22,034			$	27,992			$	7,058			$	8,438			$	4,195			$	7,706			$	27,397			$	13,540			$	11,645			$	11,019			$	16,446			$	52,650
Net realized capital gain (loss), net of tax			45				97				(20	)			(95	)			(6,743	)			(4,562	)			(11,420	)			(2,797	)			(287	)			(669	)			2,888				(865	)
OPERATING INCOME		$	21,989			$	27,895			$	7,078			$	8,533			$	10,938			$	12,268			$	38,817			$	16,337			$	11,932			$	11,688			$	13,558			$	53,515
Amortization expense			590				1,930				1,551				1,563				1,531				1,665				6,310				1,508				1,420				1,422				1,431				5,781
OPERATING INCOME, excluding amortization expense		$	22,579			$	29,825			$	8,629			$	10,096			$	12,469			$	13,933			$	45,127			$	17,845			$	13,352			$	13,110			$	14,989			$	59,296
Weighted average common shares outstanding			29,566,141				33,101,965				37,103,270				37,126,911				47,595,572				57,780,625				44,995,712				57,410,327				57,516,750				57,563,263				56,884,403				57,413,391
Shares O/S at end of the period			29,107,818				36,996,287				37,021,032				37,021,032				57,644,022				57,341,989				57,341,989				57,447,707				57,447,707				57,147,872				55,519,970				55,519,970
PER SHARE DATA (Diluted)
Net income		$	0.75			$	0.85			$	0.19			$	0.23			$	0.09			$	0.13			$	0.61			$	0.24			$	0.20			$	0.19			$	0.29			$	0.92
Net realized gain (loss), net of tax		$	0.01			$	0.01			$	—			$	—			$	(0.14	)		$	(0.08	)		$	(0.25	)		$	(0.04	)		$	(0.01	)		$	(0.01	)		$	0.05			$	(0.01	)
Operating income		$	0.74			$	0.84			$	0.19			$	0.23			$	0.23			$	0.21			$	0.86			$	0.28			$	0.21			$	0.20			$	0.24			$	0.93
Operating income, excluding amortization expense		$	0.76			$	0.90			$	0.23			$	0.27			$	0.26			$	0.24			$	1.00			$	0.31			$	0.23			$	0.23			$	0.26			$	1.03
OPERATING RATIO ANALYSIS
GAAP Loss & LAE ratio			62.3	%			61.2	%			61.7	%			61.2	%			65.7	%			59.5	%			62.0	%			58.0	%			59.4	%			64.5	%			60.6	%			60.7	%
GAAP Expense ratio			34.5	%			34.2	%			32.2	%			29.3	%			31.0	%			32.3	%			31.3	%			29.7	%			33.3	%			30.8	%			33.7	%			31.9	%
GAAP Combined ratio			96.8	%			95.4	%			93.9	%			90.5	%			96.7	%			91.8	%			93.3	%			87.7	%			92.7	%			95.3	%			94.3	%			92.6	%
Unconsolidated GAAP data — Ratio Calculation Table
Net earned premiums		$	254,920			$	268,197			$	66,022			$	77,031			$	104,243			$	122,425			$	369,721			$	129,038			$	127,140			$	137,399			$	146,025			$	539,602
Consolidated net loss and LAE		$	146,293			$	150,969			$	37,661			$	43,542			$	63,932			$	67,750			$	212,885			$	69,787			$	70,464			$	83,553			$	83,283			$	307,087
Intercompany claim fees			12,553				13,058				3,106				3,629				4,508				5,053				16,296				5,108				4,995				5,049				5,187				20,339
Unconsolidated net loss and LAE		$	158,846			$	164,027			$	40,767			$	47,171			$	68,440			$	72,803			$	229,181			$	74,895			$	75,459			$	88,602			$	88,470			$	327,426
GAAP Net loss and LAE ratio			62.3	%			61.2	%			61.7	%			61.2	%			65.7	%			59.5	%			62.0	%			58.0	%			59.4	%			64.5	%			60.6	%			60.7	%
Consolidated Policy acquisition and other underwriting expenses		$	50,479			$	53,717			$	13,147			$	12,716			$	19,537			$	23,949			$	69,349			$	23,969			$	27,139			$	28,824			$	30,783			$	110,715
Intercompany administrative and other underwriting fees			37,442				37,890				8,088				9,832				12,821				15,630				46,371				14,366				15,201				13,428				18,427				61,422
Unconsolidated policy acquisition and other underwriting expenses		$	87,921			$	91,607			$	21,235			$	22,548			$	32,358			$	39,579			$	115,720			$	38,335			$	42,340			$	42,252			$	49,210			$	172,137
GAAP Expense ratio			34.5	%			34.2	%			32.2	%			29.3	%			31.0	%			32.3	%			31.3	%			29.7	%			33.3	%			30.8	%			33.7	%			31.9	%
GAAP Combined Ratio			96.8	%			95.4	%			93.9	%			90.5	%			96.7	%			91.8	%			93.3	%			87.7	%			92.7	%			95.3	%			94.3	%			92.6	%
Unconsolidated Commissions & Fees
Managed programs:
Management fees		$	18,714			$	23,963			$	6,032			$	4,174			$	6,972			$	3,990			$	21,168			$	5,278			$	3,821			$	6,142			$	3,659			$	18,901
Claims fees			8,776				9,025				2,180				2,305				2,304				2,090				8,879				1,966				2,006				1,802				1,654				7,428
Loss control fees			2,216				2,151				510				625				467				467				2,069				489				520				493				473				1,975
Reinsurance brokerage			735				929				296				98				177				157				728				65				90				333				443				931
Total managed programs			30,441			$	36,068				9,018				7,202				9,920				6,704			$	32,844				7,798				6,437				8,770				6,229			$	29,235
Agency commissions			12,285				11,316				3,328				2,681				2,630				2,425				11,064				2,794				2,171				2,031				2,565				9,561
Intersegment commissions and fees			(1,554	)			(1,396	)			(315	)			(251	)			(241	)			(197	)			(1,004	)			(355	)			(212	)			(48	)			(299	)			(915	)
Net Commissions and fees			41,172				45,988				12,031				9,632				12,309				8,932				42,904				10,237				8,396				10,753				8,495				37,881
Intercompany commissions and fees			49,995				50,948				11,194				13,461				17,329				20,683				62,667				19,474				20,196				18,477				23,614				81,761
Gross commissions and fees		$	91,167			$	96,936			$	23,225			$	23,093			$	29,638			$	29,615			$	105,571			$	29,711			$	28,592			$	29,230			$	32,109			$	119,642