v2.3.0.15

Consolidated Balance Sheets (USD $) In Thousands	Sep. 30, 2011	Dec. 31, 2010
Assets
Fixed maturities: Available for sale, at fair value (amortized cost $158,711 in 2011 and $158,193 in 2010)	$ 164,419	$ 162,771
Equity Securities: Available for sale, at fair value (cost $10,949 in 2011 and $10,885 in 2010)	10,285	10,874
Cash and cash equivalents	5,450	6,510
Premiums and fees receivable	28,152	28,394
Reinsurance receivables and recoverables	28,153	24,912
Deferred policy acquisition costs	9,348	9,735
Prepaid reinsurance premiums	4,043	4,320
Accrued investment income	1,503	1,621
Property and equipment, net of accumulated depreciation	3,021	3,323
Income taxes receivable	7	1,253
Other	953	1,008
Total assets	255,334	254,721
Liabilities:
Losses and loss adjustment expense reserves	117,059	109,973
Unearned premiums	42,042	42,807
Accounts payable and accrued expenses	7,096	8,913
Total liabilities	166,197	161,693
Shareholders' equity:
Preferred stock, no par value, authorized 1,000,000; no shares issued or outstanding	0	0
Common stock, $0.01 par value, authorized 10,000,000; issued 2011, 5,444,022 and 2010, 5,444,022; outstanding 2011, 4,537,915 shares and 2010, 4,462,131 shares	54	54
Additional paid-in capital	51,378	51,068
Accumulated other comprehensive income	2,410	2,054
Retained earnings	45,670	50,993
Unearned ESOP, 436,499 and 476,999 shares	(4,365)	(4,770)
Treasury stock, at cost, 469,608 and 504,892 shares	(6,010)	(6,371)
Total shareholders' equity	89,137	93,028
Total liabilities and shareholders' equity	$ 255,334	$ 254,721

The known and estimated amount recoverable as of the balance sheet date from reinsurers for claims paid or incurred by the ceding insurer and associated claims settlement expenses, including estimated amounts for claims incurred but not reported, and policy benefits, net of any related valuation allowance. Also includes funds held by the ceding insurer on behalf the reinsurer, including funds held in trust, under reinsurance treaties or contracts with the assuming insurer as security for the payment of the obligations thereunder, which represent an asset for the reinsurer. There is another concept for the corresponding liability of the ceding insurer. A portion of this classification is related to the timing of differences between deposits paid to the reinsurers and the earning of premium.

PENN MILLERS HOLDING CORP 10-Q