Summary of Investments (Tables)

6 Months Ended

Jun. 30, 2013

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, 2013 and December 31, 2012, is as follows:



June 30, 2013
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	$	1,042	$	11	$	—	$	1,053
Corporate bonds - financial services	200		—		—		200
Mortgage-backed securities	230		11		—		241
Collateralized mortgage obligations	5		—		—		5
Total Held-to-Maturity Fixed Maturities	$	1,477	$	22	$	—	$	1,499
AVAILABLE-FOR-SALE
Fixed maturities
Bonds
U.S. Treasury	$	35,785	$	626	$	117	$	36,294
U.S. government agency	158,029		236		8,085		150,180
States, municipalities and political subdivisions	722,826		38,639		9,413		752,052
Foreign bonds	191,145		6,722		234		197,633
Public utilities	228,355		9,623		827		237,151
Corporate bonds
Energy	161,682		5,219		820		166,081
Industrials	246,363		7,269		2,275		251,357
Consumer goods and services	182,015		5,200		1,036		186,179
Health care	106,273		3,844		1,128		108,989
Technology, media and telecommunications	130,789		3,249		2,352		131,686
Financial services	250,945		9,542		1,032		259,455
Mortgage-backed securities	25,959		496		148		26,307
Collateralized mortgage obligations	261,692		3,084		8,029		256,747
Asset-backed securities	3,938		385		—		4,323
Redeemable preferred stocks	378		4		—		382
Total Available-for-Sale Fixed Maturities	$	2,706,174	$	94,138	$	35,496	$	2,764,816
Equity securities
Common stocks
Public utilities	$	7,231	$	8,673	$	47	$	15,857
Energy	5,094		7,704		—		12,798
Industrials	13,015		23,150		71		36,094
Consumer goods and services	10,363		8,860		14		19,209
Health care	7,920		13,238		—		21,158
Technology, media and telecommunications	6,204		6,554		104		12,654
Financial services	15,854		61,912		103		77,663
Nonredeemable preferred stocks	1,774		17		67		1,724
Total Available-for-Sale Equity Securities	$	67,455	$	130,108	$	406	$	197,157
Total Available-for-Sale Securities	$	2,773,629	$	224,246	$	35,902	$	2,961,973



December 31, 2012
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	$	1,185	$	11	$	—	$	1,196
Corporate bonds - financial services	200		—		—		200
Mortgage-backed securities	256		15		—		271
Collateralized mortgage obligations	14		—		—		14
Total Held-to-Maturity Fixed Maturities	$	1,655	$	26	$	—	$	1,681
AVAILABLE-FOR-SALE
Fixed maturities
Bonds
U.S. Treasury	$	37,887	$	939	$	5	$	38,821
U.S. government agency	45,566		429		67		45,928
States, municipalities and political subdivisions	739,752		55,572		819		794,505
Foreign bonds	207,359		11,863		62		219,160
Public utilities	232,550		15,208		32		247,726
Corporate bonds
Energy	169,973		9,758		—		179,731
Industrials	280,185		13,690		212		293,663
Consumer goods and services	193,313		9,813		151		202,975
Health care	115,654		7,111		80		122,685
Technology, media and telecommunications	123,660		6,909		198		130,371
Financial services	271,061		13,858		1,059		283,860
Mortgage-backed securities	27,940		888		21		28,807
Collateralized mortgage obligations	208,042		7,702		1,160		214,584
Asset-backed securities	4,480		406		—		4,886
Redeemable preferred stocks	378		—		2		376
Total Available-for-Sale Fixed Maturities	$	2,657,800	$	154,146	$	3,868	$	2,808,078
Equity securities
Common stocks
Public utilities	$	7,231	$	7,268	$	83	$	14,416
Energy	5,094		6,903		—		11,997
Industrials	13,031		19,827		174		32,684
Consumer goods and services	10,394		8,535		50		18,879
Health care	7,920		10,286		125		18,081
Technology, media and telecommunications	5,367		5,155		95		10,427
Financial services	15,701		52,936		145		68,492
Nonredeemable preferred stocks	2,154		25		28		2,151
Total Available-for-Sale Equity Securities	$	66,892	$	110,935	$	700	$	177,127
Total Available-for-Sale Securities	$	2,724,692	$	265,081	$	4,568	$	2,985,205

Maturities

The amortized cost and fair value of held-to-maturity, available-for-sale and trading securities at June 30, 2013, 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.



	Held-To-Maturity				Available-For-Sale				Trading
June 30, 2013	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	449	$	451	$	298,828	$	304,189	$	2,684	$	2,831
Due after one year through five years	793		802		996,401		1,046,833		6,043		6,598
Due after five years through 10 years	—		—		819,748		839,103		—		—
Due after 10 years	—		—		299,608		287,314		2,686		3,122
Asset-backed securities	—		—		3,938		4,323		—		—
Mortgage-backed securities	230		241		25,959		26,307		—		—
Collateralized mortgage obligations	5		5		261,692		256,747		—		—
	$	1,477	$	1,499	$	2,706,174	$	2,764,816	$	11,413	$	12,551

Net Realized Investment Gains and Losses

A summary of the components of net realized investment gains (losses) is as follows:



	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Net realized investment gains (losses)
Fixed maturities:
Available-for-sale	$	1,185		$	792		$	1,905		$	2,323
Trading securities
Change in fair value	(130		)	(230		)	430			(39		)
Sales	298			6			298			377
Equity securities
Available-for-sale	3,232			(4		)	3,748			697
Trading securities
Change in fair value	(132		)	—			(19		)	—
Sales	38			—			38			—
Other long-term investments	(340		)	—			(340		)	—
Total net realized investment gains	$	4,151		$	564		$	6,060		$	3,358

Proceeds and Gross Realized Gains and Losses

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



	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
Proceeds from sales	$	3,161	$	10,412	$	5,971	$	13,412
Gross realized gains	96		8		238		478
Gross realized losses	—		—		—		(25		)

Unrealized Appreciation and Depreciation

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



	Six Months Ended June 30,
	2013			2012
Change in net unrealized investment appreciation
Available-for-sale fixed maturities	$	(91,636	)	$	8,223
Equity securities	19,467			14,805
Deferred policy acquisition costs	29,223			(4,116		)
Income tax effect	15,023			(6,620		)
Total change in net unrealized investment appreciation, net of tax	$	(27,923	)	$	12,292

Investments in Unrealized Loss Position




June 30, 2013	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
AVAILABLE-FOR-SALE
Fixed maturities
Bonds
U.S. Treasury	7	$	7,235	$	117	—	$	—	$	—	$	7,235	$	117
U.S. government agency	52	145,139		8,085		—	—		—		145,139		8,085
States, municipalities and political subdivisions	156	123,895		9,413		—	—		—		123,895		9,413
Foreign bonds	8	18,809		234		—	—		—		18,809		234
Public utilities	18	37,306		827		—	—		—		37,306		827
Corporate bonds
Energy	10	25,195		820		—	—		—		25,195		820
Industrials	24	65,130		2,275		—	—		—		65,130		2,275
Consumer goods and services	17	34,666		869		6	3,213		167		37,879		1,036
Health care	10	26,997		1,010		1	1,177		118		28,174		1,128
Technology, media and telecommunications	13	41,673		2,352		—	—		—		41,673		2,352
Financial services	9	28,521		856		2	6,443		176		34,964		1,032
Mortgage-backed securities	22	9,411		147		2	20		1		9,431		148
Collateralized mortgage obligations	91	178,023		7,874		2	2,061		155		180,084		8,029
Total Available-for-Sale Fixed Maturities	437	$	742,000	$	34,879	13	$	12,914	$	617	$	754,914	$	35,496
Equity securities
Common stocks
Public utilities	3	$	261	$	47	—	$	—	$	—	$	261	$	47
Industrials	2	218		2		5	480		69		698		71
Consumer goods and services	—	—		—		2	62		14		62		14
Technology, media and telecommunications	4	227		20		6	205		84		432		104
Financial services	3	352		35		3	209		68		561		103
Nonredeemable preferred stocks	—	—		—		2	1,164		67		1,164		67
Total Available-for-Sale Equity Securities	12	$	1,058	$	104	18	$	2,120	$	302	$	3,178	$	406
Total Available-for-Sale Securities	449	$	743,058	$	34,983	31	$	15,034	$	919	$	758,092	$	35,902




December 31, 2012	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
AVAILABLE-FOR-SALE
Fixed maturities
Bonds
U.S. Treasury	2	$	1,724	$	5	—	$	—	$	—	$	1,724	$	5
U.S. government agency	5	17,654		67		—	—		—		17,654		67
States, municipalities and political subdivisions	31	41,775		819		—	—		—		41,775		819
Foreign bonds	1	3,323		48		1	558		14		3,881		62
Public utilities	2	3,155		32		—	—		—		3,155		32
Corporate bonds
Industrials	4	12,194		109		1	2,897		103		15,091		212
Consumer goods and services	—	—		—		7	4,606		151		4,606		151
Health care	3	7,416		80		—	—		—		7,416		80
Technology, media and telecommunications	5	13,402		198		—	—		—		13,402		198
Financial services	2	1,005		1		24	24,693		1,058		25,698		1,059
Mortgage-backed securities	7	4,472		21		—	—		—		4,472		21
Collateralized mortgage obligations	27	74,702		1,004		1	29		156		74,731		1,160
Redeemable preferred stocks	2	376		2		—	—		—		376		2
Total Available-for-Sale Fixed Maturities	91	$	181,198	$	2,386	34	$	32,783	$	1,482	$	213,981	$	3,868
Equity securities
Common stocks
Public utilities	3	$	225	$	83	—	$	—	$	—	$	225	$	83
Industrials	4	482		52		9	621		122		1,103		174
Consumer goods and services	2	280		19		4	372		31		652		50
Health care	1	31		2		3	896		123		927		125
Technology, media and telecommunications	5	241		7		7	581		88		822		95
Financial services	1	47		19		7	1,109		126		1,156		145
Nonredeemable preferred stocks	—	—		—		2	1,203		28		1,203		28
Total Available-for-Sale Equity Securities	16	$	1,306	$	182	32	$	4,782	$	518	$	6,088	$	700
Total Available-for-Sale Securities	107	$	182,504	$	2,568	66	$	37,565	$	2,000	$	220,069	$	4,568

- Definition

Tabular disclosure of marketable securities. This may consist of investments in certain debt and equity securities, short-term investments and other assets.

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