----

| California(State or other Jurisdiction ofIncorporation or Organization) | 94-2723335(IRS EmployerIdentification No.) |
|-------------------------------------------------------------------------|--------------------------------------------|

| Large accelerated filer                       | ý | Accelerated filer         | ¨ |
|-----------------------------------------------|--------|---------------------------|--------|
| Non-accelerated filer                         | ¨ | Smaller reporting company | ¨ |
| (Do not check if a smaller reporting company) |   |                      |   |

----

----

|                                     |                                                                                                              |
|------------------------------------------|-------------------------------------------------------------------------------------------------------------------|
|                                     | Page No.                                                                                                          |
|                                     |                                                                                                              |
| Part I:  Financial Information |                                                                                                              |
|                                     |                                                                                                              |
| Item 1:                                  | Condensed Consolidated Financial Statements                                                                       | 1 |
|                                     |                                                                                                              |   |
|                                     | Condensed Consolidated Balance Sheets as of March 31, 2010 and December 31, 2009                             | 1 |
|                                     |                                                                                                              |   |
|                                     | Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2010 and 2009                | 2 |
|                                     |                                                                                                              |   |
|                                     | Condensed Consolidated Statement Of Shareholders’ Equity for the Three Months Ended March 31, 2010 and 2009 | 3 |
|                                     |                                                                                                              |   |
|                                     | Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2010 and 2009                | 4 |
|                                     |                                                                                                              |   |
|                                     | Notes to Condensed Consolidated Financial Statements                                                              | 5 |
|                                     |                                                                                                              |   |
| Item 2:                                  | Management’s Discussion and Analysis of Financial Condition and the Results of Operations                   | 13 |
|                                     |                                                                                                              |   |
| Item 3:                                  | Quantitative and Qualitative Disclosure About Market Risk                                                         | 25 |
|                                     |                                                                                                              |   |
| Item 4:                                  | Controls and Procedures                                                                                           | 25 |
|                                     |                                                                                                              |   |
| Part II:  Other Information    |                                                                                                              |
|                                     |                                                                                                              |
| Item 1:                                  | Legal Proceedings                                                                                                 | 25 |
|                                     |                                                                                                              |   |
| Item 1A:                                 | Risk Factors                                                                                                      | 26 |
|                                     |                                                                                                              |   |
| Item 2:                                  | Unregistered Sales of Equity Securities and Use of Proceeds                                                       | 26 |
|                                     |                                                                                                              |   |
| Item 3:                                  | Defaults Upon Senior Securities                                                                                   | 26 |
|                                     |                                                                                                              |   |
| Item 4:                                  | (Removed and Reserved)                                                                                            | 26 |
|                                     |                                                                                                              |   |
| Item 5:                                  | Other Information                                                                                                 | 26 |
|                                     |                                                                                                              |   |
| Item 6:                                  | Exhibits                                                                                                          | 27 |

----

Part I: Financial Information

Item I: Condensed Consolidated Financial Statements

CONDENSED CONSOLIDATED BALANCE SHEETS

|                                                                                                                                                |   | March 31, 2010(Unaudited) |    |   | December 31,2009 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|---------|--------|------------------|--------|
| ASSETS                                                                                                                                              |   |                      |    |   |             |   |
| Available for sale investments:                                                                                                                     |   |                      |    |   |             |   |
|      Fixed maturities                                                                                                      |   | $                         | 55,184  |   |             | $      | 50,575 |   |
|      Equity securities                                                                                                     |   |                      | 114,690 |   |             |   | 118,327 |   |
| Total available for sale investments                                                                                                                |   |                      | 169,874 |   |             |   | 168,902 |   |
| Investment in unconsolidated affiliate                                                                                                              |   |                      | 8,326   |   |             |   | 8,884 |   |
| Total investments                                                                                                                                   |   |                      | 178,200 |   |             |   | 177,786 |   |
|                                                                                                                                                |   |                      |    |   |             |   |   |   |
| Cash and cash equivalents                                                                                                                           |   |                      | 122,894 |   |             |   | 154,545 |   |
| Notes and other receivables, net                                                                                                                    |   |                      | 11,718  |   |             |   | 15,412 |   |
| Reinsurance receivables                                                                                                                             |   |                      | 14,611  |   |             |   | 15,013 |   |
| Real estate and water assets, net                                                                                                                   |   |                      | 330,369 |   |             |   | 299,833 |   |
| Property and equipment, net                                                                                                                         |   |                      | 1,547   |   |             |   | 1,328 |   |
| Net deferred income taxes                                                                                                                           |   |                      | 12,665  |   |             |   | 11,165 |   |
| Federal, foreign and state income taxes                                                                                                             |   |                      | 10,286  |   |             |   | 8,879 |   |
| Other assets                                                                                                                                        |   |                      | 3,327   |   |             |   | 3,656 |   |
| Total assets                                                                                                                                        |   | $                         | 685,617 |   |             | $      | 687,617 |   |
|                                                                                                                                                |   |                      |    |   |             |   |   |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                                |   |                      |    |   |             |   |   |   |
| Reserves for unpaid losses and loss adjustment expenses                                                                                             |   | $                         | 23,660  |   |             | $      | 24,175 |   |
| Deferred compensation                                                                                                                               |   |                      | 33,471  |   |             |   | 31,144 |   |
| Borrowings                                                                                                                                          |   |                      | 41,495  |   |             |   | 41,221 |   |
| Other liabilities                                                                                                                                   |   |                      | 12,595  |   |             |   | 11,382 |   |
| Total liabilities                                                                                                                                   |   |                      | 111,221 |   |             |   | 107,922 |   |
|                                                                                                                                                |   |                      |    |   |             |   |   |   |
| Commitments and Contingencies (Note 6)                                                                                                              |   |                      |    |   |             |   |   |   |
|                                                                                                                                                |   |                      |    |   |             |   |   |   |
| Common stock, $.001 par value; authorized 100,000,000 shares, 27,020,473 issued and 22,595,678 outstanding at March 31, 2010, and December 31, 2009 |   |                      | 27      |   |             |   | 27 |   |
| Additional paid-in capital                                                                                                                          |   |                      | 540,597 |   |             |   | 539,792 |   |
| Retained earnings                                                                                                                                   |   |                      | 95,940  |   |             |   | 100,002 |   |
| Accumulated other comprehensive income                                                                                                              |   |                      | 19,833  |   |             |   | 21,094 |   |
| Treasury stock, at cost (common shares: 4,424,795 in 2010 and 2009)                                                                                 |   |                      | (78,272 | )      |             |   | (78,272 | ) |
| Total PICO Holdings, Inc. shareholders’ equity                                                                                                |   |                      | 578,125 |   |             |   | 582,643 |   |
| Noncontrolling interest in subsidiaries                                                                                                             |   |                      | (3,729  | )      |             |   | (2,948 | ) |
| Total shareholders' equity                                                                                                                          |   |                      | 574,396 |   |             |   | 579,695 |   |
| Total liabilities and shareholders' equity                                                                                                          |   | $                         | 685,617 |   |             | $      | 687,617 |   |

The accompanying notes are an integral part of the condensed consolidated financial statements.

----

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED

|                                                           | Three MonthsEndedMarch 31, 2010 |   |   | Three Months EndedMarch 31, 2009 |   |
|----------------------------------------------------------------|---------------------------------|--------|--------|----------------------------------|--------|
| Revenues:                                                      |                            |   |   |                             |   |
| Sale of real estate and water assets                           |                            | $      | 1,598  |                             |   | $ | 310 |   |
| Net investment income                                          |                            |   | 1,389  |                             |   |   | 927 |   |
| Net realized gain (loss) on sale and impairment of investments |                            |   | 3,149  |                             |   |   | (12,101 | ) |
| Other                                                          |                            |   | 466    |                             |   |   | 539 |   |
| Total revenues (charges)                                       |                            |   | 6,602  |                             |   |   | (10,325 | ) |
| Costs and Expenses:                                            |                            |   |   |                             |   |   |   |   |
| Operating and other costs                                      |                            |   | 11,288 |                             |   |   | 7,336 |   |
| Impairment loss on real estate and water assets                |                            |   |   |                             |   |   | 12,378 |   |
| Cost of real estate and water assets sold                      |                            |   | 1,048  |                             |   |   | 81 |   |
| Depreciation and amortization                                  |                            |   | 325    |                             |   |   | 335 |   |
| Interest                                                       |                            |   | 503    |                             |   |   | 490 |   |
| Total costs and expenses                                       |                            |   | 13,164 |                             |   |   | 20,620 |   |
| Equity in loss of unconsolidated affiliate                     |                            |   | (558   | )                                |   |   |   |   |
| Loss before income taxes and noncontrolling interest           |                            |   | (7,120 | )                                |   |   | (30,945 | ) |
| Benefit for federal, foreign, and state income taxes           |                            |   | (2,277 | )                                |   |   | (11,135 | ) |
| Net loss                                                       |                            |   | (4,843 | )                                |   |   | (19,810 | ) |
| Net loss attributable to the noncontrolling interests          |                            |   | 781    |                             |   |   | 1,304 |   |
| Net loss attributable to PICO Holdings, Inc.                   |                            | $      | (4,062 | )                                |   | $ | (18,506 | ) |
|                                                           |                            |   |   |                             |   |   |   |   |
| Net loss per common share – basic and diluted:           |                            | $      | (0.18  | )                                |   | $ | (0.98 | ) |
| Weighted average shares outstanding                            |                            |   | 22,596 |                             |   |   | 18,840 |   |

The accompanying notes are an integral part of the condensed consolidated financial statements.

----

CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY - UNAUDITED

|                                  | Total  |    | Comprehensive Loss attributable to PICO Holdings, Inc. |   | Retained Earnings |   | AccumulatedOtherComprehensiveIncome |   | CommonStock |   | Paid-inCapital |   | TreasuryStock, at Cost |   | Non-controlling Interest |    |
|---------------------------------------|--------|---------|--------------------------------------------------------|--------|-------------------|--------|-------------------------------------|--------|-------------|--------|----------------|--------|------------------------|--------|--------------------------|---------|
| Beginning balance, January 1, 2010    | $      | 579,695 |                                                   |   |              | $      | 100,002                             |   | $           | 21,094 |           | $      | 27                     |   | $                        | 539,792 |   | $ | (78,272 | ) | $ | (2,948 | ) |
| Stock-based compensation expense      |   | 805     |                                                   |   |              |   |                                |   |        |   |           |   |                   |   |                     | 805     |   |   |   |   |   |   |   |
| Comprehensive loss:                   |   |    |                                                   |   |              |   |                                |   |        |   |           |   |                   |   |                     |    |   |   |   |   |   |   |   |
| Net loss                              |   | (4,843  | )                                                      | $      | (4,062            | )      |                                | (4,062 | )           |   |           |   |                   |   |                     |    |   |   |   |   |   |   | (781 | ) |
| Other comprehensive loss, net of tax: |   |    |                                                   |   |              |   |                                |   |        |   |           |   |                   |   |                     |    |   |   |   |   |   |   |   |   |
| Unrealized loss on securities         |   | (1,188  | )                                                      |   | (1,188            | )      |                                |   |        |   | (1,188         | )      |                   |   |                     |    |   |   |   |   |   |   |   |   |
| Foreign currency translation          |   | (73     | )                                                      |   | (73               | )      |                                |   |        |   | (73            | )      |                   |   |                     |    |   |   |   |   |   |   |   |   |
| Other comprehensive loss              |   | (1,261  | )                                                      |   | (1,261            | )      |                                |   |        |   |           |   |                   |   |                     |    |   |   |   |   |   |   |   |   |
| Comprehensive loss                    |   | (6,104  | )                                                      | $      | (5,323            | )      |                                |   |        |   |           |   |                   |   |                     |    |   |   |   |   |   |   |   |   |
| Ending balance, March 31, 2010        | $      | 574,396 |                                                   |   |              |   | $                                   | 95,940 |        | $      | 19,833         |   | $                      | 27     |                     | $       | 540,597 |   | $ | (78,272 | ) | $ | (3,729 | ) |

|                                           | Total  |    | ComprehensiveLoss attributable to PICO Holdings, Inc. |   | Retained Earnings |   | AccumulatedOtherComprehensiveLoss |    | CommonStock |   | Paid-inCapital |   | TreasuryStock, at Cost |   | Non-controlling Interest |    |
|------------------------------------------------|--------|---------|-------------------------------------------------------|--------|-------------------|--------|-----------------------------------|---------|-------------|--------|----------------|--------|------------------------|--------|--------------------------|---------|
| Beginning balance, January 1, 2009             | $      | 477,746 |                                                  |   |              | $      | 118,037                           |    | $           | (1,424 | )              | $      | 23                     |   | $                        | 439,382 |   | $ | (78,272 | ) | $ | 0 |   |
| Stock-based compensation expense               |   | 1,161   |                                                  |   |              |   |                              |    |        |   |           |   |                   |   |                     | 1,161   |   |   |   |   |   |   |   |
| Changes in ownership ofNoncontrolling interest |   | 250     |                                                  |   |              |   |                              |    |        |   |           |   |                   |   |                     |    |   |   |   |   |   | 250 |   |
| Comprehensive loss:                            |   |    |                                                  |   |              |   |                              |    |        |   |           |   |                   |   |                     |    |   |   |   |   |   |   |   |
| Net loss                                       |   | (19,810 | )                                                     | $      | (18,506           | )      |                              | (18,506 | )           |   |           |   |                   |   |                     |    |   |   |   |   |   |   | (1,304 | ) |
| Other comprehensive loss, net of tax:          |   |    |                                                  |   |              |   |                              |    |        |   |           |   |                   |   |                     |    |   |   |   |   |   |   |   |   |
| Unrealized loss on securities                  |   | (3,405  | )                                                     |   | (3,405            | )      |                              |    |        |   | (3,405         | )      |                   |   |                     |    |   |   |   |   |   |   |   |   |
| Foreign currency translation                   |   | 468     |                                                  |   | 468               |   |                              |    |        |   | 468            |   |                   |   |                     |    |   |   |   |   |   |   |   |   |
| Other comprehensive loss                       |   | (2,937  | )                                                     |   | (2,937            | )      |                              |    |        |   |           |   |                   |   |                     |    |   |   |   |   |   |   |   |   |
| Comprehensive loss                             |   | (22,747 | )                                                     | $      | (21,443           | )      |                              |    |        |   |           |   |                   |   |                     |    |   |   |   |   |   |   |   |   |
| Ending balance, March 31, 2009                 | $      | 456,410 |                                                  |   |              |   | $                                 | 99,531  |        | $      | (4,361         | )      | $                      | 23     |                     | $       | 440,543 |   | $ | (78,272 | ) | $ | (1,054 | ) |

The accompanying notes are an integral part of the condensed consolidated financial statements.

----

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED

|                                                                 |   | Three Months EndedMarch 31,2010 |    |   | Three Months EndedMarch 31,2009 |   |
|----------------------------------------------------------------------|--------|---------------------------------|---------|--------|---------------------------------|--------|
| OPERATING ACTIVITIES:                                                |   |                            |    |   |                            |   |
| Net cash provided by (used in) operating activities                  |   | $                               | (31,553 | )      |                            | $      | 3,231 |   |
|                                                                 |   |                            |    |   |                            |   |   |   |
| INVESTING ACTIVITIES:                                                |   |                            |    |   |                            |   |   |   |
| Purchases of investments                                             |   |                            | (11,301 | )      |                            |   | (859 | ) |
| Proceeds from sale of investments                                    |   |                            | 9,277   |   |                            |   | 1,223 |   |
| Proceeds from maturity of investments                                |   |                            | 1,820   |   |                            |   |   |   |
| Purchases of property and equipment                                  |   |                            | (316    | )      |                            |   |   |   |
| Real estate and water asset capital expenditure                      |   |                            |    |   |                            |   | (163 | ) |
| Net cash provided by (used in) investing activities                  |   |                            | (520    | )      |                            |   | 201 |   |
|                                                                 |   |                            |    |   |                            |   |   |   |
| FINANCING ACTIVITIES:                                                |   |                            |    |   |                            |   |   |   |
| Repayment of borrowings                                              |   |                            |    |   |                            |   | (2,610 | ) |
| Proceeds from borrowings                                             |   |                            |    |   |                            |   | 488 |   |
| Net cash used in financing activities                                |   |                            |    |   |                            |   | (2,122 | ) |
|                                                                 |   |                            |    |   |                            |   |   |   |
| Effect of exchange rate changes on cash                              |   |                            | 422     |   |                            |   | 1,606 |   |
|                                                                 |   |                            |    |   |                            |   |   |   |
| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                     |   |                            | (31,651 | )      |                            |   | 2,916 |   |
|                                                                 |   |                            |    |   |                            |   |   |   |
| CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                       |   |                            | 154,545 |   |                            |   | 96,316 |   |
|                                                                 |   |                            |    |   |                            |   |   |   |
| CASH AND CASH EQUIVALENTS, END OF PERIOD                             |   | $                               | 122,894 |   |                            | $      | 99,232 |   |
|                                                                 |   |                            |    |   |                            |   |   |   |
| SUPPLEMENTAL CASH FLOW INFORMATION:                                  |   |                            |    |   |                            |   |   |   |
| Net cash paid (refunded) for federal, foreign and state income taxes |   | $                               | 410     |   |                            | $      | (14,754 | ) |
| Cash paid for interest, net of amounts capitalized                   |   | $                               | 480     |   |                            | $      | 378 |   |
| Non-cash investing and financing activities:                         |   |                            |    |   |                            |   |   |   |
| Mortgage incurred to purchase land                                   |   | $                               | 619     |   |                            |   |   |   |

The accompanying notes are an integral part of the condensed consolidated financial statements.

----

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

| 1. | Basis of Presentation |
|----|-----------------------|

----

|                                          |   | RSU    |    |   | RSA    |   |
|-----------------------------------------------|--------|--------|---------|--------|--------|--------|
| Outstanding at January 1, 2010                |   |   | 300,000 |   |   |   | 5,286 |   |
| Granted                                       |   |   |    |   |   |   |   |   |
| Vested                                        |   |   |    |   |   |   |   |   |
| Outstanding at March 31, 2010                 |   |   | 300,000 |   |   |   | 5,286 |   |
| Unrecognized compensation cost (in thousands) |   | $      | 3,800   |   |   | $      | 27 |   |

| Expected volatility      | 29% — 31%   |
|--------------------------|-------------------|
| Expected term            | 7 years           |
| Risk-free rate           | 4.3% — 4.7% |
| Expected dividend yield  | 0%                |
| Expected forfeiture rate | 0%                |

|                           | SAR       |   | Weighted AverageExercise Price |   | Weighted AverageContractual Term |
|--------------------------------|-----------|--------|--------------------------------|--------|----------------------------------|
| Outstanding at January 1, 2010 | 1,995,018 |   | $                              | 36.89  |                             | 6.5 years |
| Granted                        |      |   |                           |   |                             |   |
| Exercised                      |      |   |                           |   |                             |   |
| Outstanding at March 31, 2010  | 1,995,018 |   |                           | 36.89  |                             |   |
| Exercisable at March 31, 2010  | 1,937,372 |   | $                              | 36.66  |                             | 6 years |

|                                                                       | SAR    |   | Weighted Average GrantDate Fair Value |   |
|----------------------------------------------------------------------------|--------|--------|---------------------------------------|--------|
| Unvested at January 1, 2010                                                | 57,646 |   | $                                     | 18.93  |   |
| Granted                                                                    |   |   |                                  |   |   |
| Vested                                                                     |   |   |                                  |   |   |
| Unvested at March 31, 2010 (expected to vest by the third quarter of 2010) | 57,646 |   | $                                     | 18.93  |   |

----

----

| 2. | Net Loss Per Share |
|----|--------------------|

| 3. | Comprehensive Loss |
|----|-------------------------|

|                                                           | ThreeMonths Ended March 31, 2010 |   |   | ThreeMonths EndedMarch 31, 2009 |   |
|----------------------------------------------------------------|----------------------------------|--------|--------|---------------------------------|--------|
| Net loss                                                       | $                                | (4,843 | )      |                            | $      | (19,810 | ) |
| Other comprehensive loss, net of tax:                          |                             |   |   |                            |   |   |   |
| Unrealized depreciation on available for sale securities       |                             | (1,188 | )      |                            |   | (3,405 | ) |
| Appreciation (depreciation) in foreign currency translation    |                             | (73    | )      |                            |   | 468 |   |
| Total other comprehensive loss, net of tax                     |                             | (1,261 | )      |                            |   | (2,937 | ) |
| Comprehensive loss                                             |                             | (6,104 | )      |                            |   | (22,747 | ) |
| Comprehensive loss attributable to the noncontrolling interest |                             | 781    |   |                            |   | 1,304 |   |
| Comprehensive loss attributable to PICO Holdings, Inc.         | $                                | (5,323 | )      |                            | $      | (21,443 | ) |

----

|                                   | March 31, 2010 |   | December 31, 2009 |   |
|----------------------------------------|----------------|--------|-------------------|--------|
|                                   |           |   |              |   |
| Net unrealized gain on securities      | $              | 24,665 |              | $      | 25,853 |   |
| Foreign currency translation           |           | (4,832 | )                 |   | (4,759 | ) |
| Accumulated other comprehensive income | $              | 19,833 |              | $      | 21,094 |   |

|                             |   | Cost   |    |   | Gross Unrealized Gains |   |   | Gross Unrealized Losses |   |   | Carrying Value |   |
|----------------------------------|--------|--------|---------|--------|------------------------|--------|--------|-------------------------|--------|--------|----------------|--------|
| March 31, 2010:                  |   |   |    |   |                   |   |   |                    |   |   |           |   |
| Fixed maturities:                |   |   |    |   |                   |   |   |                    |   |   |           |   |
| U.S. Treasury securities         |   | $      | 1,934   |   |                   | $      | 63     |                    |   | $      | (1             | )      |   | $ | 1,996 |   |
| Municipal bonds                  |   |   | 3,168   |   |                   |   | 107    |                    |   |   |           |   |   |   | 3,275 |   |
| Corporate bonds                  |   |   | 25,311  |   |                   |   | 768    |                    |   |   | (1,045         | )      |   |   | 25,034 |   |
| Government sponsored enterprises |   |   | 24,553  |   |                   |   | 326    |                    |   |   |           |   |   |   | 24,879 |   |
|                             |   |   | 54,966  |   |                   |   | 1,264  |                    |   |   | (1,046         | )      |   |   | 55,184 |   |
| Marketable equity securities     |   |   | 79,679  |   |                   |   | 35,712 |                    |   |   | (701           | )      |   |   | 114,690 |   |
| Total                            |   | $      | 134,645 |   |                   | $      | 36,976 |                    |   | $      | (1,747         | )      |   | $ | 169,874 |   |

|                             |   | Cost   |    |   | Gross Unrealized Gains |   | Gross Unrealized Losses |   |   | Carrying Value |   |
|----------------------------------|--------|--------|---------|--------|------------------------|--------|-------------------------|--------|--------|----------------|--------|
| December 31, 2009:               |   |   |    |   |                   |   |                    |   |   |           |   |
| Fixed maturities:                |   |   |    |   |                   |   |                    |   |   |           |   |
| U.S. Treasury securities         |   | $      | 1,106   |   |                   | $      | 80                      |   |   |           |   | $ | 1,186 |   |
| Municipal bonds                  |   |   | 3,175   |   |                   |   | 64                      |   |   |           |   |   |   | 3,239 |   |
| Corporate bonds                  |   |   | 21,217  |   |                   |   | 2,278                   |   |   | $              | (2,224 | ) |   |   | 21,271 |   |
| Government sponsored enterprises |   |   | 24,764  |   |                   |   | 329                     |   |   |           | (214   | ) |   |   | 24,879 |   |
|                             |   |   | 50,262  |   |                   |   | 2,751                   |   |   |           | (2,438 | ) |   |   | 50,575 |   |
| Marketable equity securities     |   |   | 81,935  |   |                   |   | 37,009                  |   |   |           | (617   | ) |   |   | 118,327 |   |
| Total                            |   | $      | 132,197 |   |                   | $      | 39,760                  |   |   | $              | (3,055 | ) |   | $ | 168,902 |   |

|                         |   | 2010       |   |   | 2009                  |   |
|------------------------------|--------|------------|--------|--------|-----------------------|--------|
| Less than 12 months          |   | Fair Value |   |   | Gross Unrealized Loss |   |   | Fair Value |   |   | Gross Unrealized Loss |   |
| Fixed maturities:            |   |       |   |   |                  |   |   |   |   |   |   |   |
| Corporate bonds              |   | $          | 7,382  |   |                  | $      | 132 |   |   | $ | 779 |   |   | $ | 10 |   |
| U.S. Treasury securities     |   |       | 828    |   |                  |   | 1 |   |   |   |   |   |   |   |   |   |
| Government sponsored         |   |       |   |   |                  |   |   |   |   |   | 17,961 |   |   |   | 214 |   |
|                         |   |       | 8,210  |   |                  |   | 133 |   |   |   | 18,740 |   |   |   | 224 |   |
| Marketable equity securities |   |       | 3,317  |   |                  |   | 584 |   |   |   | 5,590 |   |   |   | 488 |   |
| Total                        |   | $          | 11,527 |   |                  | $      | 717 |   |   | $ | 24,330 |   |   | $ | 712 |   |

----

|                         | 2010       |   | 2009                  |   |
|------------------------------|------------|--------|-----------------------|--------|
| Greater than 12 months  | Fair Value |   | Gross Unrealized Loss |   | Fair Value |   | Gross Unrealized Loss |   |
| Fixed maturities:            |       |   |                  |   |   |   |   |   |
| Corporate bonds              | $          | 6,887  |                  | $      | 913 |   | $ | 9,510 |   | $ | 2,214 |   |
| Marketable equity securities |       | 776    |                  |   | 117 |   |   | 1,346 |   |   | 129 |   |
| Total                        | $          | 7,663  |                  | $      | 1,030 |   | $ | 10,856 |   | $ | 2,343 |   |

| Assets                            | Quoted Prices InActive Marketsfor Identical Assets(Level 1) |    |   | Significant Other Observable Inputs(Level 2) |         | Significant Unobservable Inputs(Level 3) |   | Balance atMarch 31, 2010 |   |
|-----------------------------------|-------------------------------------------------------------|---------|--------|----------------------------------------------|--------------|------------------------------------------|--------|--------------------------|--------|
| Available for sale securities (A) | $                                                           | 161,470 |   | $                                       |   8,404 |                                     |   |                     | $      | 169,874 |   |
| Liabilities                       |                                                        |    |   |                                         |         |                                     |   |                     |   |   |   |
| Deferred compensation (B)         | $                                                           | 33,471  |   |                                         |         |                                     |   |                     | $      | 33,471 |   |

| Assets                            | Quoted Prices InActive Marketsfor Identical Assets(Level 1) |    | Significant Other Observable Inputs(Level 2) |   | Significant Unobservable Inputs(Level 3) |   | Balance atDecember 31, 2009 |   |
|-----------------------------------|-------------------------------------------------------------|---------|----------------------------------------------|--------|------------------------------------------|--------|-----------------------------|--------|
| Available for sale securities (A) | $                                                           | 168,902 |                                         |   |                                     |   |                        | $      | 168,902 |   |
| Liabilities                       |                                                        |    |                                         |   |                                     |   |                        |   |   |   |
| Deferred compensation (B)         | $                                                           | 31,144  |                                         |   |                                     |   |                        | $      | 31,144 |   |

----

| (A) Where there are quoted market prices that are readily available in an active market, securities are classified as Level 1 of the valuation hierarchy.  Level 1 marketable equity securities are valued using quoted market prices multiplied by the number of shares owned and debt securities are valued using a market quote in an active market.  Level 2 available for sale securities include securities where the markets are not active, that is where there are few transactions, or the prices are not current or the prices vary considerably over time. Level 3 available for sale securities include securities where valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets.  This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.  |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (B) Deferred compensation plans are compensation plans directed by the Company and structured as Rabbi Trusts for certain executives and non-employee directors.  The investment assets of the Rabbi Trust are valued using quoted market prices multiplied by the number of shares held in each trust account including the shares of PICO Holdings common stock held in the trusts.  The related deferred compensation liability represents the fair value of the investment assets.                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |

| 4. | Disclosures About Fair Value of Financial Instruments: |
|----|--------------------------------------------------------|

| -- | Cash and Cash Equivalents:  Carrying amounts for these items approximate fair value because of the short maturity of these instruments.  The majority of the Company’s cash is held in the Federated Government Obligations Money Market.                                                                             |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| -- | Investments in fixed maturities and equity securities: Fair values are estimated based on quoted market prices, or dealer quotes for the actual or comparable securities.  The Company regularly evaluates the carrying value of securities to determine whether there has been any diminution in value that is other-than-temporary. |
| -- | Borrowings: Carrying amounts for these items approximates fair value because current interest rates and, therefore, discounted future cash flows for the terms and amounts of loans are not significantly different from the original terms.                                                                                                    |

|                             |   | March 31, 2010 |    |
|----------------------------------|--------|----------------|---------|
|                             |   | CarryingAmount |    |   | Estimated Fair Value |   |
| Financial assets:                |   |           |    |   |   |   |
| Cash and cash equivalents        |   | $              | 122,894 |   |   | $ | 122,894 |   |
| Fixed maturities                 |   | $              | 55,184  |   |   | $ | 55,184 |   |
| Equity securities                |   | $              | 114,690 |   |   | $ | 114,690 |   |
| Notes and other receivables, net |   | $              | 11,718  |   |   | $ | 11,718 |   |
| Financial liabilities:           |   |           |    |   |   |   |   |   |
| Borrowings                       |   | $              | 41,495  |   |   | $ | 41,495 |   |

| 5. | Segment Reporting |
|----|-------------------|

|                                        |   | March 31,2010 |    |   | December 31, 2009 |   |
|---------------------------------------------|--------|---------------|---------|--------|-------------------|--------|
| Total Assets:                               |   |          |    |   |              |   |
| Water Resource and Water Storage Operations |   | $             | 223,895 |   |              | $      | 207,565 |   |
| Real Estate Operations                      |   |          | 168,494 |   |              |   | 149,217 |   |
| Corporate                                   |   |          | 132,771 |   |              |   | 169,146 |   |
| Insurance Operations in Run Off             |   |          | 160,457 |   |              |   | 161,689 |   |
|                                        |   | $             | 685,617 |   |              | $      | 687,617 |   |

----

|                                                   |   | Three Months Ended March 31, |   |
|--------------------------------------------------------|--------|------------------------------|--------|
|                                                   |   | 2010                         |   |   | 2009 |   |
| Revenues (Charges):                                    |   |                         |   |   |   |   |
| Water Resource and Water Storage Operations            |   | $                            | 344    |   |   | $ | 208 |   |
| Real Estate Operations                                 |   |                         | 1,979  |   |   |   | 662 |   |
| Corporate                                              |   |                         | 2,153  |   |   |   | (4,962 | ) |
| Insurance Operations in Run Off                        |   |                         | 2,126  |   |   |   | (6,233 | ) |
| Total revenues (charges)                               |   |                         | 6,602  |   |   |   | (10,325 | ) |
|                                                   |   |                         |   |   |   |   |   |   |
| Loss Before Income Taxes and Noncontrolling Interests: |   |                         |   |   |   |   |   |   |
| Water Resource and Water Storage Operations            |   |                         | (2,822 | ) |   |   | (13,917 | ) |
| Real Estate Operations                                 |   |                         | (894   | ) |   |   | (929 | ) |
| Corporate                                              |   |                         | (4,827 | ) |   |   | (9,206 | ) |
| Insurance Operations in Run Off                        |   |                         | 1,423  |   |   |   | (6,893 | ) |
| Loss before income taxes and noncontrolling interest   |   | $                            | (7,120 | ) |   | $ | (30,945 | ) |

| 6. | Commitments and Contingencies |
|----|-------------------------------|

----

Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations

| · | Water Resource and Water Storage Operations;       |
|--------|----------------------------------------------------|
| · | Real Estate Operations;                            |
| · | Insurance Operations in “Run Off”; and |
| · | Corporate.                                         |

----

| · | Vidler Water Company, Inc. (“Vidler”), a business that we started more than 14 years ago, which acquires and develops water resources and water for storage in the southwestern United States, with assets and operations in Nevada, Arizona, Idaho, Colorado and New Mexico;                                                                              |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | UCP, LLC (“UCP”), a business that we started in 2008, which acquires and develops partially-developed and finished residential housing lots in selected markets in California;                                                                                                                                                                             |
| · | Nevada Land and Resource Company, LLC (“Nevada Land”), a business that we started when we acquired the company approximately 13 years ago, which sells property in northern Nevada and also sells or leases certain sub – surface rights (such as mineral rights, water rights and geothermal rights) associated with Nevada Land’s property;  |
| · | Physicians Insurance Company of Ohio (“Physicians”), which is “running off” its medical professional liability insurance loss reserves; and                                                                                                                                                                                                    |
| · | Citation Insurance Company (“Citation”), which is “running off” its property and casualty insurance and workers’ compensation loss reserves.                                                                                                                                                                                                  |

| Thousands of dollars                                           |   | Three Months EndedMarch 31, |   |
|----------------------------------------------------------------|--------|-----------------------------|--------|
|                                                           |   | 2010                        |   |   | 2009 |   |
| Revenues:                                                      |   |                        |   |   |   |   |
| Water Resource and Water Storage Operations                    |   | $                           | 344    |   |   | $ | 208 |   |
| Real Estate Operations                                         |   |                        | 1,979  |   |   |   | 662 |   |
| Corporate                                                      |   |                        | 2,153  |   |   |   | (4,962 | ) |
| Insurance Operations in Run Off                                |   |                        | 2,126  |   |   |   | (6,233 | ) |
| Total revenues (charges)                                       |   |                        | 6,602  |   |   |   | (10,325 | ) |
|                                                           |   |                        |   |   |   |   |   |   |
| Income (loss) before income taxes and noncontrolling interest: |   |                        |   |   |   |   |   |   |
| Water Resource and Water Storage Operations                    |   |                        | (2,822 | ) |   |   | (13,917 | ) |
| Real Estate Operations                                         |   |                        | (894   | ) |   |   | (929 | ) |
| Corporate                                                      |   |                        | (4,827 | ) |   |   | (9,206 | ) |
| Insurance Operations in Run Off                                |   |                        | 1,423  |   |   |   | (6,893 | ) |
| Loss before income taxes and noncontrolling interests          |   | $                           | (7,120 | ) |   | $ | (30,945 | ) |

----

| Thousands of dollars                                  |   | Three Months EndedMarch 31, |   |
|-------------------------------------------------------|--------|-----------------------------|--------|
|                                                  |   | 2010                        |   |   | 2009 |   |
| Revenues:                                             |   |                        |   |   |   |   |
| Sale of real estate and water assets                  |   | $                           | 20     |   |   | $ | 23 |   |
| Net investment income                                 |   |                        | 167    |   |   |   | 20 |   |
| Other                                                 |   |                        | 157    |   |   |   | 165 |   |
| Segment total revenues                                |   |                        | 344    |   |   |   | 208 |   |
|                                                  |   |                        |   |   |   |   |   |   |
| Expenses:                                             |   |                        |   |   |   |   |   |   |
| Cost of real estate and water assets sold             |   |                        | (6     | ) |   |   | (6 | ) |
| Impairment of water assets                            |   |                        |   |   |   |   | (12,378 | ) |
| Depreciation and amortization                         |   |                        | (278   | ) |   |   | (267 | ) |
| Overhead                                              |   |                        | (939   | ) |   |   | (819 | ) |
| Project expenses                                      |   |                        | (1,943 | ) |   |   | (655 | ) |
| Segment total expenses                                |   |                        | (3,166 | ) |   |   | (14,125 | ) |
| Loss before income taxes and noncontrolling interests |   | $                           | (2,822 | ) |   | $ | (13,917 | ) |

----

----

| · | the operation and maintenance of the Vidler Arizona Recharge Facility;                                                                   |
|--------|------------------------------------------------------------------------------------------------------------------------------------------|
| · | the development of water rights in the Tule Desert groundwater basin (part of the Lincoln County agreement);                   |
| · | the utilization of water rights at Fish Springs Ranch as a future municipal water supply for the north valleys of the Reno, Nevada area; |
| · | the operation of our farm properties in Idaho and maintenance of the associated water rights; and                                        |
| · | the exploration and drilling costs of Vidler’s water resource development project in New Mexico.                                   |

| Thousands of dollars                                  |   | Three Months Ended March 31, |   |
|-------------------------------------------------------|--------|------------------------------|--------|
|                                                  |   | 2010                         |   |   | 2009 |   |
| Revenues:                                             |   |                         |   |   |   |   |
| Sale of real estate – Nevada Land               |   | $                            | 78     |   |   | $ | 219 |   |
| Sale of real estate – UCP                       |   |                         | 1,501  |   |   |   |   |   |
| Net investment income                                 |   |                         | 160    |   |   |   | 264 |   |
| Other                                                 |   |                         | 240    |   |   |   | 179 |   |
| Segment total revenues                                |   |                         | 1,979  |   |   |   | 662 |   |
|                                                  |   |                         |   |   |   |   |   |   |
| Expenses:                                             |   |                         |   |   |   |   |   |   |
| Cost of real estate sold – Nevada Land          |   |                         | (7     | ) |   |   | (75 | ) |
| Cost of real estate sold - UCP                        |   |                         | (1,035 | ) |   |   |   |   |
| Operating expenses                                    |   |                         | (1,831 | ) |   |   | (1,516 | ) |
| Segment total expenses                                |   |                         | (2,873 | ) |   |   | (1,591 | ) |
| Loss before income taxes and noncontrolling interests |   | $                            | (894   | ) |   | $ | (929 | ) |

----

| · | an increase in the gross margin generated by the sale of land and homes at UCP of $466,000; |
|--------|---------------------------------------------------------------------------------------------|
| · | a decrease in the gross margin generated by land sales at Nevada Land of $73,000; and       |
| · | an increase in overhead of $315,000 as UCP continues to expand its operations.              |

| Thousands of dollars                                               |   | Three Months Ended March 31, |   |
|--------------------------------------------------------------------|--------|------------------------------|--------|
|                                                               |   | 2010                         |   |   | 2009 |   |
| Revenues:                                                          |   |                         |   |   |   |   |
| Net realized gain (loss) on sale or impairment of investments |   | $                            | 1,508  |   |   | $ | (5,455 | ) |
| Net investment income                                              |   |                         | 611    |   |   |   | 271 |   |
| Other                                                              |   |                         | 34     |   |   |   | 222 |   |
| Segment total revenues (charges)                                   |   |                         | 2,153  |   |   |   | (4,962 | ) |
|                                                               |   |                         |   |   |   |   |   |   |
| Expenses:                                                          |   |                         |   |   |   |   |   |   |
| Stock-based compensation expense                                   |   |                         | (805   | ) |   |   | (1,162 | ) |
| Deferred compensation (expense) benefit                            |   |                         | (2,383 | ) |   |   | 3,204 |   |
| Net foreign exchange loss                                     |   |                         | (545   | ) |   |   | (3,027 | ) |
| Other                                                              |   |                         | (2,689 | ) |   |   | (3,259 | ) |
| Segment total expenses                                             |   |                         | (6,422 | ) |   |   | (4,244 | ) |
|                                                               |   |                         |   |   |   |   |   |   |
| Equity in loss of unconsolidated affiliate                         |   |                         | (558   | ) |   |   |   |   |
| Loss before income taxes and noncontrolling interests              |   | $                            | (4,827 | ) |   | $ | (9,206 | ) |

----

----

----

| Thousands of dollars                                                    |   | Three Months Ended March 31, |   |
|-------------------------------------------------------------------------|--------|------------------------------|--------|
|                                                                    |   | 2010                         |   |   | 2009 |   |
| Revenues:                                                               |   |                         |   |   |   |   |
| Net investment income                                                   |   | $                            | 451    |   |   | $ | 372 |   |
| Net realized gain (loss) on sale or impairment of investments |   |                         | 1,642  |   |   |   | (6,647 | ) |
| Other                                                                   |   |                         | 33     |   |   |   | 42 |   |
| Segment total revenues (charges)                                        |   |                         | 2,126  |   |   |   | (6,233 | ) |
|                                                                    |   |                         |   |   |   |   |   |   |
| Expenses:                                                               |   |                         |   |   |   |   |   |   |
| Segment total expenses                                                  |   |                         | (703   | ) |   |   | (660 | ) |
|                                                                    |   |                         |   |   |   |   |   |   |
| Income (loss) before income taxes and noncontrolling interests          |   | $                            | 1,423  |   |   | $ | (6,893 | ) |

----

| Thousands of dollars                                         |   | March 31, 2010 |   |   | December 31, 2009 |   |
|--------------------------------------------------------------|--------|----------------|--------|--------|-------------------|--------|
| Direct Reserves for medical professional liability insurance |   | $              | 2,317  |   |              | $      | 2,338 |   |

| CITATION INSURANCE COMPANY -- LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES |   |
|-------------------------------------------------------------------------|--------|
| Thousands of dollars                                                    |   | March 31, 2010 |   |   | December 31, 2009 |   |
| Property & Casualty Insurance                                       |   |   |   |   |   |   |
| Direct Reserves                                                         |   | $ | 600 |   |   | $ | 624 |   |
| Ceded Reserves                                                          |   |   | (81 | ) |   |   | (81 | ) |
| Net property and casualty insurance reserves                            |   |   | 519 |   |   |   | 543 |   |
|                                                                    |   |   |   |   |   |   |   |   |
| Workers’ Compensation                                             |   |   |   |   |   |   |   |   |
| Direct Reserves                                                         |   |   | 20,744 |   |   |   | 21,213 |   |
| Ceded Reserves                                                          |   |   | (14,123 | ) |   |   | (14,446 | ) |
| Net workers’ compensation insurance reserves                      |   |   | 6,621 |   |   |   | 6,767 |   |
| Total net reserves                                                      |   | $ | 7,140 |   |   | $ | 7,310 |   |

----

| · | the Water Resource and Water Storage Operations segment holds cash of $1.1 million;                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | the Real Estate Operations segment holds cash of $51.9 million;                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| · | the Insurance in “Run Off” segment holds cash of $13.9 million, fixed-income securities with a market value of $15.4 million, and equities with a market value of $104.7 million; and                                                                                                                                                                                                                                                                                                                        |
| · | the Corporate segment holds cash of $46.2 million, fixed-income securities with a market value of $26.5 million, and an equity security with a market value of $1 million.  In addition, cash of $9.8 million, fixed-income securities with a market value of $13.3 million, and equity securities with a market value of $9 million are held in deferred compensation Rabbi Trusts within the Corporate segment, which will be used to pay the related and offsetting deferred compensation liabilities. |

| · | As Vidler’s water assets are monetized, Vidler should generate free cash flow as receipts from the sale of real estate and water assets will have overtaken maintenance capital expenditure, development costs, financing costs, and operating expenses;                                                                                                                                                                                                                                                                                                                                                                               |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | Although UCP made some initial sales of lots during 2009 and the first quarter of 2010, we are still acquiring finished and partially-developed residential lots in select California markets. During 2009, we acquired a defaulted note for $22.6 million. We foreclosed on the note as planned and, as a result, acquired 1,400 entitled residential units on a 244-acre property (East Garrison) in Monterey County, California. During 2010 and 2011, we plan to expend approximately $20 million to complete the first phase of the development and to prepare other parts of the property for potential future development;  |
| · | Nevada Land is actively selling real estate which has reached its highest and best use.  Nevada Land’s principal sources of cash flow are the proceeds of cash real estate sales, lease income, royalties, and collections of principal and interest on sales contracts where Nevada Land has provided vendor financing.  These receipts and other revenues exceed Nevada Land’s operating and development costs, so Nevada Land is generating positive cash flow; and                                                                                                                                            |
| · | Investment income more than covers the operating expenses of the “run off” insurance companies, Physicians and Citation.  The funds to pay claims come from the maturity of fixed-income securities, the realization of fixed-income investments and stocks held in their investment portfolios, and recoveries from reinsurance companies.                                                                                                                                                                                                                                                                                      |

----

| Issuer                                    |   | Fair ValueMarch 31, 2010(In thousands) |   |   | Percentage of Total Fair Value |   |
|-------------------------------------------|--------|----------------------------------------|--------|--------|--------------------------------|--------|
| U.S. Treasury                             |   | $                                      | 1,167  |   |                           |   | 8 | % |
| Government-sponsored enterprises          |   |                                   | 6,644  |   |                           |   | 43 | % |
| State of California general obligations   |   |                                   | 3,276  |   |                           |   | 21 | % |
| Domestic investment-grade corporate bonds |   |                                   | 3,398  |   |                           |   | 22 | % |
| Foreign corporate bond (no credit rating) |   |                                   | 882    |   |                           |   | 6 | % |
|                                      |   | $                                      | 15,367 |   |                           |   | 100 | % |

----

Item 3.  Quantitative and Qualitative Disclosure about Market Risk

Item 4:  Controls and Procedures

Part II: Other Information

Item 1:  Legal Proceedings

----

Item 1A:  Risk Factors

Item 2:  Unregistered Sales of Equity Securities and Use of Proceeds

Item 3:  Defaults Upon Senior Securities

Item 4:  

Item 5:  Other Information

----

Item 6.  Exhibits

| Exhibit Number  | Description |                                      |
|----------------------|-------------|-------------------------------------------|
|                 | 3(i)        |                                      | Amended and Restated Articles of Incorporation of PICO. (1) |
| 3(ii)                |        | Amended and Restated By-laws of PICO. (2) |
|                 | 4.1         |                                      | Form of Indenture relating to Debt Securities. (3) |
|                 | 10.1        | †                                   | Form of Restricted Stock Grant for Directors. (4) |
|                 | 31.1        |                                      | Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|                 | 31.2        |                                      | Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|                 | 32.1        |                                      | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350 (Section 906 of the Sarbanes-Oxley Act of 2002). |
|                 | 32.2        |                                      | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350 (Section 906 of the Sarbanes-Oxley Act of 2002). |

| †  | Indicates compensatory plan, contract or arrangement in which directors or executive officers may participate. |
|---------------|----------------------------------------------------------------------------------------------------------------|

| (1)  | Incorporated by reference to the Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 7, 2007. |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------|

| (2)  | Incorporated by reference to the Current Report on Form 8-K filed with the Securities and Exchange Commission on May 19, 2009. |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------|

| (3)  | Incorporated by reference to the Form S-3 filed with Securities and Exchange Commission on November 20, 2007. |
|-----------|---------------------------------------------------------------------------------------------------------------|

| (4)  | Incorporated by reference to the Current Report on Form 8-K filed with the Securities and Exchange Commission on March 9, 2009. |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------|

----