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Acquisition
 12 Months Ended
Dec. 31, 2011
Acquisition [Abstract]  
Acquisition

8. Acquisition

Effective January 1, 2009, the Company acquired all of the membership interests of AISM, which is the parent company of AIS and PoliSeek. AIS is a major producer of automobile insurance in the state of California and was the Company's largest independent broker. This preexisting relationship did not require measurement at the date of acquisition as there was no settlement of executory contracts between the Company and AIS as part of the acquisition.

Goodwill of $37.6 million arising from the acquisition consists largely of the efficiencies and economies of scale expected from combining the operations of the Company and AIS, and is expected to be fully deductible for income tax purposes.

 

The following table reflects the amount of revenue and net income of AIS, which are included in the Company's consolidated statements of operations:

 

     Year Ended December 31,  
     2011      2010      2009  
     (Amounts in thousands)  

AIS

         

Revenues(1)

   $ 13,742       $ 13,926       $ 11,846   

Net income(1)

   $ 2,617       $ 3,367       $ 1,228   

Combined entity

         

Revenues(2)

   $ 2,777,285       $ 2,775,885       $ 3,121,493   

Net income

    $ 191,164       $ 152,198       $ 403,072   

(1)

Excludes intercompany transactions with the Company's insurance subsidiaries.

(2)

Includes net premiums earned, net investment income, net realized investment gains, and commission revenues.