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Consolidated Statements of Cash Flows (USD $) In Thousands	6 Months Ended
Consolidated Statements of Cash Flows (USD $) In Thousands	Jun. 30, 2011	Jun. 30, 2010
Cash flows from operating activities:
Net loss	$ (2,506)	$ (1,517)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Change in receivables, unearned premiums, and prepaid reinsurance	4,091	(4,046)
Change in losses and loss adjustment expense reserves	(3,343)	9,530
Change in accounts payable and accrued expenses	(954)	(1,980)
Change in current income taxes	470	(1,877)
Deferred income taxes	(241)	(186)
Change in deferred acquisition costs	914	549
Change in accrual and amortization of investment income	561	589
Amortization and depreciation	320	313
ESOP share allocation	411	340
Amortization of stock-based compensation	321	81
Realized investment gains, net	(852)	(1,666)
Other, net	(146)	(80)
Net cash (used in) provided by operating activities	(954)	50
Cash flows from investing activities:
Available-for-sale investments: Purchases of fixed maturity securities	(23,197)	(39,221)
Available-for-sale investments: Purchases of equity securities	(389)	(11,084)
Available-for-sale investments: Sales of fixed maturity securities	21,407	29,602
Available-for-sale investments: Maturities of fixed maturity securities	1,500	12,900
Proceeds from disposition of corporate owned life insurance policies	0	2,682
Purchases of property and equipment, net	(145)	(63)
Net cash used in investing activities	(824)	(5,184)
Cash flows from financing activities:
Purchase of treasury stock	0	(4,155)
Net cash used in financing activities	0	(4,155)
Net decrease in cash	(1,778)	(9,289)
Cash and cash equivalents at beginning of period	6,510	20,220
Cash and cash equivalents at end of period	$ 4,732	$ 10,931

The sum of the periodic adjustments of the differences between securities' face values and purchase prices that are charged against earnings. This is called accretion if the security was purchased at a discount and amortization if it was purchased at premium. As a noncash item, this element is an adjustment to net income when calculating cash provided by or used in operations using the indirect method. Also includes the increase (decrease) during the reporting period in investment income that has been earned but not yet received in cash.

PENN MILLERS HOLDING CORP 10-Q