SUMMARY OF INVESTMENTS

Fair Value of Investments

A reconciliation of the amortized cost (cost for equity securities) to fair value of investments in held-to-maturity and available-for-sale fixed maturity and equity securities as of June 30, 2011 and December 31, 2010, is as follows:



June 30, 2011	(Dollars in Thousands)
Type of Investment	Cost or Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Fair Value
HELD-TO-MATURITY
Fixed maturities
Bonds
States, municipalities and political subdivisions
General obligations	$	733	$	8	$	—	$	741
Special revenue
Midwest
North central - East	353		20		—		373
North central - West	268		19		—		287
Northeast	230		6		—		236
South	793		2		94		701
West	2,838		30		—		2,868
Collaterialized mortgage obligations	64		3		—		67
Mortgage-backed securities	385		41		—		426
Total Held-to-Maturity Fixed Maturities	$	5,664	$	129	$	94	$	5,699
AVAILABLE-FOR-SALE
Fixed maturities
Bonds
U.S. government and government- sponsored enterprises
U.S. Treasury	$	40,100	$	1,163	$	—	$	41,263
Agency	107,197		195		433		106,959
States, municipalities and political subdivisions
General obligations
Midwest
North central - East	123,304		8,439		84		131,659
North central - West	74,823		5,612		—		80,435
Northeast	38,952		2,343		—		41,295
South	104,747		8,136		12		112,871
West	67,618		4,241		20		71,839
Special revenue
Midwest
North central - East	69,969		3,526		44		73,451
North central - West	51,540		2,620		96		54,064
Northeast	13,907		470		2		14,375
South	95,604		4,622		40		100,186
West	55,804		3,090		3		58,891
Foreign bonds
Canadian	63,569		3,596		159		67,006
Other foreign	98,242		4,940		217		102,965
Public utilities
Electric	218,289		12,012		327		229,974
Oil and gas	27,430		1,584		106		28,908
Other	9,044		343		—		9,387
Corporate bonds
Oil and gas	179,621		6,665		306		185,980
Chemicals	66,191		3,159		160		69,190
Basic resources	18,609		564		182		18,991
Construction and materials	20,409		737		—		21,146
Industrial goods and services	162,890		7,318		370		169,838



Auto and parts	12,680		611		41		13,250
Food and beverage	73,454		2,708		39		76,123
Personal and household goods	64,197		3,053		127		67,123
Health care	109,703		6,050		45		115,708
Retail	49,796		2,290		31		52,055
Media	40,239		1,980		99		42,120
Travel and leisure	5,867		12		50		5,829
Telecommunications	42,250		1,851		7		44,094
Utilities	10,500		619		—		11,119
Banks	142,485		6,814		929		148,370
Insurance	28,926		1,031		—		29,957
Real estate	21,732		2,811		202		24,341
Financial services	109,912		3,766		756		112,922
Technology	29,857		1,174		196		30,835
Collaterialized mortgage obligations
Government	30,339		2,360		8		32,691
Other	302		2		—		304
Mortgage-backed securities	39,108		570		2		39,676
Asset-backed securities	6,572		524		220		6,876
Redeemable preferred stocks	405		4		—		409
Total Available-For-Sale Fixed Maturities	$	2,526,183	$	123,605	$	5,313	$	2,644,475
Equity securities
Common stocks
Public utilities
Electric	$	5,921	$	4,945	$	1	$	10,865
Oil and gas	928		2,004		—		2,932
Other	76		4		—		80
Corporate
Oil and gas	5,094		7,126		—		12,220
Chemicals	2,734		3,649		—		6,383
Industrial good and services	9,427		15,158		55		24,530
Auto and parts	257		621		—		878
Food and beverage	2,124		3,861		—		5,985
Personal and household goods	6,857		3,729		—		10,586
Health care	7,612		7,365		134		14,843
Retail	2,609		491		63		3,037
Media	147		—		3		144
Telecommunications	2,399		3,741		3		6,137
Utilities	1,502		138		—		1,640
Banks	12,971		31,708		178		44,501
Insurance	3,209		10,025		8		13,226
Real estate	393		782		43		1,132
Financial services	300		241		—		541
Technology	1,664		1,436		17		3,083
Nonredeemable preferred stocks	3,634		19		81		3,572
Total Available-for-Sale Equity Securities	$	69,858	$	97,043	$	586	$	166,315
Total Available-for-Sale Securities	$	2,596,041	$	220,648	$	5,899	$	2,810,790



December 31, 2010	(Dollars in Thousands)
Type of Investment	Cost or Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Fair Value
HELD-TO-MATURITY
Fixed maturities
Bonds
States, municipalities and political subdivisions
General obligations	731		10		—		741
Special revenue
Midwest
North central - East	364		27		—		391
North central - West	488		23		—		511
Northeast	230		12		—		242
South	1,067		4		108		963
West	2,957		36		—		2,993
Collateralized mortgage obligations	83		4		—		87
Mortgage-backed securities	444		50		—		494
Total Held-to-Maturity Fixed Maturities	$	6,364	$	166	$	108	$	6,422
AVAILABLE-FOR-SALE
Fixed maturities
Bonds
U.S. government and government- sponsored enterprises
U.S. Treasury	38,133		943		—		39,076
Agency	104,049		96		1,014		103,131
States, municipalities and political subdivisions
General obligations
Midwest
North central - East	121,273		6,634		137		127,770
North central - West	76,699		4,491		58		81,132
Northeast	27,861		1,664		—		29,525
South	92,795		6,555		53		99,297
West	53,160		2,983		90		56,053
Special revenue
Midwest
North central - East	59,063		2,205		175		61,093
North central - West	38,827		1,744		266		40,305
Northeast	4,505		247		9		4,743
South	71,486		3,405		144		74,747
West	42,363		2,182		—		44,545
Foreign bonds
Canadian	69,209		3,908		194		72,923
Other foreign	85,434		4,588		268		89,754
Public utilities
Electric	207,047		12,179		519		218,707
Oil and gas	53,919		1,724		359		55,284
Corporate bonds
Oil and gas	150,692		6,957		138		157,511
Chemicals	58,570		2,808		35		61,343
Basic resources	8,043		582		—		8,625
Construction and materials	19,385		873		—		20,258
Industrial goods and services	141,509		7,102		481		148,130
Auto and parts	13,453		1,003		—		14,456



Food and beverage	70,613		3,531		111		74,033
Personal and household goods	65,525		2,953		289		68,189
Health care	78,595		4,933		186		83,342
Retail	42,150		2,139		329		43,960
Media	33,276		1,786		—		35,062
Travel and leisure	5,882		61		77		5,866
Telecommunications	33,131		2,094		51		35,174
Utilities	13,620		521		—		14,141
Banks	117,506		5,817		1,689		121,634
Insurance	25,682		799		14		26,467
Real estate	20,903		1,101		267		21,737
Financial services	94,036		3,770		983		96,823
Technology	15,952		1,070		334		16,688
Collateralized mortgage obligations	17,564		2,013		—		19,577
Mortgage-backed securities	2		—		—		2
Asset-backed securities	6,754		572		—		7,326
Total Available-For-Sale Fixed Maturities	$	2,178,666	$	108,033	$	8,270	$	2,278,429
Equity securities
Common stocks
Public utilities
Electric	$	5,921	$	4,164	$	1	$	10,084
Oil and gas	928		1,746		—		2,674
Corporate
Oil and gas	4,903		6,235		—		11,138
Chemicals	2,734		3,345		—		6,079
Industrical goods and services	8,112		15,185		—		23,297
Auto and parts	704		922		—		1,626
Food and beverage	682		3,792		—		4,474
Personal and household goods	4,785		2,985		—		7,770
Health care	6,366		6,368		187		12,547
Retail	380		348		—		728
Travel and leisure	1		—		—		1
Telecommunications	2,150		3,138		—		5,288
Utilities	1,102		47		2		1,147
Banks	9,517		34,636		100		44,053
Insurance	3,129		11,320		41		14,408
Real estate	619		967		40		1,546
Financial services	282		—		15		267
Technology	363		826		—		1,189
Nonredeemable preferred stocks	1,461		3		74		1,390
Total Available-for-Sale Equity Securities	$	54,139	$	96,027	$	460	$	149,706
Total Available-for-Sale Securities	$	2,232,805	$	204,060	$	8,730	$	2,428,135

Maturities

The amortized cost and fair value of held-to-maturity, available-for-sale and trading securities at June 30, 2011, by contractual maturity, are shown in the following table. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Asset-backed securities, mortgage-backed securities and collateralized mortgage obligations may be subject to prepayment risk and are therefore not categorized by contractual maturity.



(In Thousands)	Held-To-Maturity				Available-For-Sale				Trading
June 30, 2011	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	245	$	251	$	261,784	$	268,500	$	2,712	$	2,798
Due after one year through five years	4,967		4,952		1,173,647		1,240,235		4,645		4,681
Due after five years through 10 years	3		3		950,562		990,505		496		495
Due after 10 years	—		—		63,869		65,688		6,910		7,084
Asset-backed securities	—		—		6,572		6,876		—		—
Mortgage-backed securities	385		426		39,108		39,676		—		—
Collateralized mortgage obligations	64		67		30,641		32,995		—		—
	$	5,664	$	5,699	$	2,526,183	$	2,644,475	$	14,763	$	15,058

Net Realized Investment Gains and Losses

Net realized gains (losses) on disposition of investments are computed using the specific identification method and are included in the computation of net income. A summary of net realized investment gains resulting from investment sales, calls and other-than-temporary impairment (“OTTI”) charges is as follows:



	Three Months Ended June 30,						Six Months Ended June 30,
(In Thousands)	2011			2010			2011			2010
Net realized investment gains (losses)
Fixed maturities	$	1,048		$	373		$	2,434		$	862
Equity securities	218			2,565			1,334			4,909
Trading securities	(38		)	(592		)	278			(684		)
Other long-term investments	(104		)	—			(269		)	(15		)
Total net realized investment gains	$	1,124		$	2,346		$	3,777		$	5,072

The proceeds and gross realized gains and losses on the sale of available-for-sale securities are as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
(In Thousands)	2011		2010		2011		2010
Proceeds from sales	$	16,520	$	2,800	$	21,367	$	3,402
Gross realized gains	261		1,513		351		1,915
Gross realized losses	172		—		688		—

There were no sales of held-to-maturity securities during the six-month periods ended June 30, 2011 and 2010.

Our investment portfolio includes trading securities with embedded derivatives. These securities, which are primarily convertible redeemable preferred debt securities, are recorded at fair value. Income or loss, including the change in the fair value of these trading securities, is recognized currently in earnings as a component of net realized investment gains and losses. Our portfolio of trading securities had a fair value of $15.1 million and $12.9 million at June 30, 2011 and December 31, 2010, respectively.

The realized gains and losses attributable to the change in fair value during the reporting period of trading securities held at June 30, 2011 and 2010 are as follows:



	Three Months Ended June 30,					Six Months Ended June 30,
(In Thousands)	2011			2010		2011		2010
Trading
Realized gains	$	(164	)	$	—	$	31	$	—
Realized losses	273			609		300		896

Off-Balance Sheet Arrangements

Pursuant to an agreement with one of our limited liability partnership holdings, we are contractually committed to make capital contributions up to $15.0 million, upon request by the partnership, through December 31, 2017. Our remaining potential contractual obligation was $10.1 million at June 30, 2011.

Unrealized Appreciation and Depreciation

A summary of changes in net unrealized investment appreciation during the reporting period is as follows:



	Six Months Ended June 30,
(In Thousands)	2011			2010
Change in net unrealized investment appreciation
Available-for-sale fixed maturities and equity securities	$	19,419		$	24,526
Deferred policy acquisition costs	(257		)	(11,576		)
Income tax effect	(6,707		)	(4,533		)
Total change in net unrealized appreciation, net of tax	$	12,455		$	8,417

In the above table, changes in deferred policy acquisition costs for our life insurance segment are affected by fluctuations that may occur in the interest rate environment from time to time.

We continually monitor the difference between our cost basis and the estimated fair value of our investments. Our accounting policy for impairment recognition requires OTTI charges to be recorded when we determine that it is more likely than not that we will be unable to collect all amounts due according to the contractual terms of the fixed maturity security or that the anticipated recovery in fair value of the equity security will not occur in a reasonable amount of time. Impairment charges on investments are recorded based on the fair value of the investments at the measurement date. Factors considered in evaluating whether a decline in value is other-than-temporary include: the length of time and the extent to which fair value has been less than cost; the financial condition and near-term prospects of the issuer; our intention to hold the investment; and the likelihood that we will be required to sell the investment.

The tables on the following pages summarize our fixed maturity and equity securities that were in an unrealized loss position at June 30, 2011 and December 31, 2010. The securities are presented by the length of time they have been continuously in an unrealized loss position. It is possible that we could recognize OTTI charges in future periods on securities held at June 30, 2011, if future events or information cause us to determine that a decline in fair value is other-than-temporary.

We believe the unrealized depreciation in value of securities in our fixed maturity portfolio is primarily attributable to changes in market interest rates and not the credit quality of the issuer. We have no intent to sell and it is more likely than not that we will not be required to sell these securities until such time as the fair value recovers to at least equal our cost basis or the securities mature.

We have evaluated the unrealized losses reported for all of our equity securities at June 30, 2011, and have concluded that the duration and severity of these losses do not warrant the recognition of an OTTI charge at June 30, 2011. Our largest unrealized loss greater than 12 months on an individual equity security at June 30, 2011 was $0.1 million. We have no intention to sell any of these securities prior to a recovery in value, but will continue to monitor the fair value reported for these securities as part of our overall process to evaluate investments for OTTI recognition.



(In Thousands)
June 30, 2011	Less than 12 months					12 months or longer					Total
Type of Investment	Number of Issues	Fair Value		Gross Unrealized Depreciation		Number of Issues	Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation
HELD-TO-MATURITY
Fixed maturities
Bonds
States, municipalities and political subdivisions
Special revenue
South	—	$	—	$	—	1	$	601	$	94	$	601	$	94
Total Held-to-Maturity Fixed Maturities	—	$	—	$	—	1	$	601	$	94	$	601	$	94
AVAILABLE-FOR-SALE
Fixed maturities
Bonds
U.S. government and government-sponsored enterprises
Agency	13	52,606		433		—	—		—		52,606		433
States, municipalities and political subdivisions
General obligations
Midwest	5	2,688		84		—	—		—		2,688		84
South	3	1,992		12		—	—		—		1,992		12
West	1	771		20		—	—		—		771		20
Special revenue
Midwest
North central - East	—	—		—		1	866		44		866		44
North central - West	3	1,637		29		2	2,647		67		4,284		96
Northeast	—	—		—		1	618		2		618		2
South	6	4,461		40		—	—		—		4,461		40
West	1	245		3		—	—		—		245		3
Foreign bonds
Canadian	2	7,403		159		—	—		—		7,403		159
Other foreign	5	14,658		190		1	1,115		27		15,773		217
Public utilities
Electric	5	18,982		216		1	1,171		111		20,153		327
Oil and gas	2	4,558		106		—	—		—		4,558		106
Corporate bonds
Oil and gas	6	22,175		306		—	—		—		22,175		306
Chemicals	2	8,374		160		—	—		—		8,374		160
Basic resources	2	7,992		182		—	—		—		7,992		182
Industrial goods and services	10	22,094		268		1	2,897		102		24,991		370
Auto and parts	2	3,117		41		—	—		—		3,117		41
Food and beverage	1	3,060		19		1	1,449		20		4,509		39
Personal and household goods	2	6,201		127		—	—		—		6,201		127
Health care	1	3,005		45		—	—		—		3,005		45
Retail	1	3,431		31		—	—		—		3,431		31
Media	3	7,008		99		—	—		—		7,008		99
Travel and leisure	4	5,016		50		—	—		—		5,016		50
Telecommunications	1	1,975		7		—	—		—		1,975		7
Banks	4	2,845		1		8	17,488		928		20,333		929
Real estate	1	2,297		28		1	4,469		174		6,766		202
Financial services	2	8,378		109		15	5,297		647		13,675		756



Technology	4	9,390		196		—	—		—		9,390		196
Collateralized mortgage obligations	8	1,476		8		—	—		—		1,476		8
Mortgage backed securities	—	—		—		3	745		2		745		2
Asset backed securities	2	466		220		—	—		—		466		220
Total Available-For-Sale Fixed Maturities	102	$	228,301	$	3,189	35	$	38,762	$	2,124	$	267,063	$	5,313
Equity securities
Common stocks
Public utilities	—	$	—	$	—	4	$	—	$	1	$	—	$	1
Corporate
Industrial goods and services	12	1,564		55		—	—		—		1,564		55
Health care	4	439		25		1	385		109		824		134
Retail	6	689		63		—	—		—		689		63
Media	1	144		3		—	—		—		144		3
Telecommunications	1	16		3		—	—		—		16		3
Banks	2	360		65		1	441		113		801		178
Insurance	1	79		2		1	50		6		129		8
Real estate	1	78		11		2	156		32		234		43
Technology	3	575		17		—	—		—		575		17
Nonredeemable preferred stocks	—	—		—		2	1,151		81		1,151		81
Total Available-for-Sale Equity Securities	31	$	3,944	$	244	11	$	2,183	$	342	$	6,127	$	586
Total Available-for-Sale Securities	133	$	232,245	$	3,433	46	$	40,945	$	2,466	$	273,190	$	5,899
Total	133	$	232,245	$	3,433	47	$	41,546	$	2,560	$	273,791	$	5,993



(In Thousands)
December 31, 2010	Less than 12 months					12 months or longer					Total
Type of Investment	Number of Issues	Fair Value		Gross Unrealized Depreciation		Number of Issues	Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation
HELD-TO-MATURITY
Fixed maturities
Bonds
States, municipalities and political subdivisions
Special revenue	—	$	—	$	—	2	$	590	$	108	$	590	$	108
Total Held-to-Maturity Fixed Maturities	—	$	—	$	—	2	$	590	$	108	$	590	$	108
AVAILABLE-FOR-SALE
Fixed maturities
Bonds
U.S. government and government-sponsored enterprises
Agency	12	$	41,374	$	626	7	$	30,661	$	388	$	72,035	$	1,014
States, municipalities and political subdivisions
General obligations
Midwest
North central - East	3	2,346		105		1	497		32		2,843		137
North central - West	1	860		58		—	—		—		860		58
South	2	947		53		—	—		—		947		53
West	3	2,723		90		—	—		—		2,723		90
Special revenue
Midwest
North central - East	7	8,275		96		2	2,554		79		10,829		175
North central - West	2	3,092		102		2	2,555		164		5,647		266
Northeast	—	—		—		1	771		9		771		9
South	3	3,964		144		—	—		—		3,964		144
Foreign bonds
Canadian	1	5,687		194		—	—		—		5,687		194
Other foreign	2	6,634		235		2	2,873		33		9,507		268
Public utilities
Electric	3	4,490		100		3	10,003		419		14,493		519
Oil and gas	—	—		—		3	5,840		359		5,840		359
Corporate bonds
Oil and gas	—	—		—		2	5,748		138		5,748		138
Chemicals	3	3,366		19		1	4,939		16		8,305		35
Industrial goods and services	5	13,642		170		3	9,748		311		23,390		481
Food and beverage	1	2,006		12		2	4,491		99		6,497		111
Personal and household goods	3	9,233		241		2	3,039		48		12,272		289
Health care	4	14,416		186		—	—		—		14,416		186
Retail	4	9,370		322		1	2,308		7		11,678		329
Travel and leisure	1	2,013		69		2	792		8		2,805		77
Telecommunications	2	2,696		51		—	—		—		2,696		51
Banks	1	2,920		18		15	28,887		1,671		31,807		1,689
Insurance	1	2,169		14		—	—		—		2,169		14
Real estate	1	4,539		177		1	2,256		90		6,795		267
Financial services	3	11,660		236		15	5,270		747		16,930		983
Other	—	—		—		3	8,628		334		8,628		334



Total Available-For-Sale Fixed Maturities	68	$	158,422	$	3,318	68	$	131,860	$	4,952	$	290,282	$	8,270
Equity securities
Common stocks
Public utilities	—	$	—	$	—	4	$	—	$	1	$	—	$	1
Corporate
Health care	2	1,437		63		1	371		124		1,808		187
Utilities	3	306		2		—	—		—		306		2
Banks	2	594		32		1	488		68		1,082		100
Insurance	1	260		28		1	43		13		303		41
Real estate	1	79		10		2	158		30		237		40
Financial services	1	267		15		—	—		—		267		15
Nonredeemable preferred stocks	—	—		—		2	1,158		74		1,158		74
Total Available-for-Sale Equity Securities	11	$	2,963	$	150	11	$	2,218	$	310	$	5,181	$	460
Total Available-for-Sale Securities	79	$	161,385	$	3,468	79	$	134,078	$	5,262	$	295,463	$	8,730
Total	79	$	161,385	$	3,468	81	$	134,668	$	5,370	$	296,053	$	8,838