Consolidated gross realized gains were $12.4 million for the year ended December 31, 2007, as compared to $23.0 million and $5.5 million in 2006 and 2005, respectively. Included in gross realized gains for the year ended December 31, 2006 was $8.4 million from the sale of a strategic investment and a realized gain of $7.6 million from the sale of a real estate holding. Consolidated gross realized losses were $6.5 million, $1.8 million and $2.2 million for the years ended December 31, 2007, 2006 and 2005, respectively. Included in consolidated gross realized losses for the years ended December 31, 2007, 2006 and 2005 were write downs of approximately $2.3 million, $1.2 million and $1.0 million, respectively, from the recognition of other-than-temporary impairments on certain investment securities.
Select Markets. This segment provides property and casualty coverages targeting specific groups of insureds and is underwritten by Great Central, Rockwood, Grocers Insurance and Trident. Great Central specializes in property insurance, liability insurance and workers compensation coverage in three broadly defined markets: food and hospitality, religious and other institutions, and specialty retail. Rockwood primarily provides workers compensation insurance for coal mines, other mining business and small commercial accounts. In addition, Rockwood provides supporting general liability, umbrella liability, property, commercial automobile and surety business, for certain of its mining accounts. Grocers Insurance underwrites property, general liability, and workers compensation to privately owned independent grocers throughout the United States. Trident offers comprehensive insurance packages to small to intermediate sized governmental entities and school districts throughout the United States. Also included in the Select Markets segment are policies and programs written through the Company’s Corporate Accounts division and its Select Programs division.
The Company has access to various sources of liquidity including holding company investments and cash, capacity under its revolving credit facility and access to the debt and equity capital markets. On March 6, 2006, the Company entered into a Credit Agreement (“the Credit Agreement”) with JPMorgan Chase Bank, N.A., as administrative agent, and the other lenders thereto. The Credit Agreement provides for an initial $75.0 million revolving credit facility, and the commitments there under shall expire on the third anniversary of the Credit Agreement. The borrower shall have the option to seek on up to three occasions an increase in the facility to provide for an additional aggregate amount of availability of up to $50.0 million. In July 2007, Argonaut Group borrowed $58.0 million of the $75.0 million under the Credit Agreement to fund the special dividend payment to its shareholders. Management believes that the Company has sufficient liquidity to meet its needs. The Credit Agreement contains certain affirmative and negative covenants. The Company is in compliance with all covenants of the Credit Agreement as of December 31, 2007. Included in the Credit Facility is a provision which allows up to $10 million of the revolver to be used for letters of credit (“LOC”), subject to availability under the line.