Summary of Investments (Tables)

9 Months Ended

Sep. 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 September 30, 2013 and December 31, 2012, is as follows:



September 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	$	684	$	7	$	—	$	691
Corporate bonds - financial services	200		—		—		200
Mortgage-backed securities	218		11		—		229
Total Held-to-Maturity Fixed Maturities	$	1,102	$	18	$	—	$	1,120
AVAILABLE-FOR-SALE
Fixed maturities
Bonds
U.S. Treasury	$	35,882	$	551	$	86	$	36,347
U.S. government agency	224,953		449		11,844		213,558
States, municipalities and political subdivisions	699,796		36,302		9,138		726,960
Foreign bonds	174,839		6,333		324		180,848
Public utilities	224,874		8,620		947		232,547
Corporate bonds
Energy	154,915		4,802		858		158,859
Industrials	242,348		6,783		2,257		246,874
Consumer goods and services	176,217		4,544		1,099		179,662
Health care	95,424		3,576		1,074		97,926
Technology, media and telecommunications	130,972		2,968		3,203		130,737
Financial services	241,319		8,921		763		249,477
Mortgage-backed securities	23,641		308		269		23,680
Collateralized mortgage obligations	294,759		2,393		10,067		287,085
Asset-backed securities	3,827		358		—		4,185
Redeemable preferred stocks	334		3		—		337
Total Available-for-Sale Fixed Maturities	$	2,724,100	$	86,911	$	41,929	$	2,769,082
Equity securities
Common stocks
Public utilities	$	7,231	$	8,543	$	41	$	15,733
Energy	5,094		8,152		—		13,246
Industrials	13,308		27,741		59		40,990
Consumer goods and services	10,356		9,391		10		19,737
Health care	7,920		13,767		—		21,687
Technology, media and telecommunications	6,204		6,229		64		12,369
Financial services	15,854		64,267		90		80,031
Nonredeemable preferred stocks	4,984		5		244		4,745
Total Available-for-Sale Equity Securities	$	70,951	$	138,095	$	508	$	208,538
Total Available-for-Sale Securities	$	2,795,051	$	225,006	$	42,437	$	2,977,620



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 fixed maturity securities at September 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
September 30, 2013	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	570	$	572	$	257,096	$	261,686	$	1,828	$	1,972
Due after one year through five years	314		319		989,457		1,039,814		3,965		4,918
Due after five years through 10 years	—		—		830,883		844,061		—		—
Due after 10 years	—		—		324,437		308,571		2,687		3,087
Asset-backed securities	—		—		3,827		4,185		—		—
Mortgage-backed securities	218		229		23,641		23,680		—		—
Collateralized mortgage obligations	—		—		294,759		287,085		—		—
	$	1,102	$	1,120	$	2,724,100	$	2,769,082	$	8,480	$	9,977

Net Realized Investment Gains and Losses

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



	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Net realized investment gains (losses)
Fixed maturities:
Held-to-maturity	$	—		$	11		$	—		$	11
Available-for-sale	626			91			2,531			2,414
Trading securities
Change in fair value	360			966			790			927
Sales	310			(64		)	608			313
Equity securities
Available-for-sale	(9		)	—			3,739			697
Trading securities
Change in fair value	(97		)	296			(116		)	296
Sales	—			—			38			—
Other long-term investments	—			—			(340		)	—
Total net realized investment gains	$	1,190		$	1,300		$	7,250		$	4,658

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 September 30,					Nine Months Ended September 30,
	2013			2012		2013			2012
Proceeds from sales	$	17,036		$	—	$	23,007		$	12,003
Gross realized gains	213			—		451			472
Gross realized losses	(139		)	—		(139		)	(25		)

Unrealized Appreciation and Depreciation

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



	Nine Months Ended September 30,
	2013			2012
Change in net unrealized investment appreciation
Available-for-sale fixed maturities	$	(105,296	)	$	29,205
Equity securities	27,352			19,873
Deferred policy acquisition costs	34,098			(10,854		)
Income tax effect	15,346			(13,270		)
Total change in net unrealized investment appreciation, net of tax	$	(28,500	)	$	24,954

Investments in Unrealized Loss Position




September 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	8	$	7,493	$	86	—	$	—	$	—	$	7,493	$	86
U.S. government agency	61	170,795		11,844		—	—		—		170,795		11,844
States, municipalities and political subdivisions	156	119,047		8,255		2	5,867		883		124,914		9,138
Foreign bonds	9	23,867		324		—	—		—		23,867		324
Public utilities	27	52,241		947		—	—		—		52,241		947
Corporate bonds
Energy	10	25,104		858		—	—		—		25,104		858
Industrials	27	71,118		2,257		—	—		—		71,118		2,257
Consumer goods and services	19	38,968		983		6	3,256		116		42,224		1,099
Health care	9	25,008		963		1	1,181		111		26,189		1,074
Technology, media and telecommunications	16	55,331		3,203		—	—		—		55,331		3,203
Financial services	6	17,773		699		2	6,513		64		24,286		763
Mortgage-backed securities	37	10,620		250		5	333		19		10,953		269
Collateralized mortgage obligations	100	198,380		8,637		13	26,367		1,430		224,747		10,067
Total Available-for-Sale Fixed Maturities	485	$	815,745	$	39,306	29	$	43,517	$	2,623	$	859,262	$	41,929
Equity securities
Common stocks
Public utilities	3	$	267	$	41	—	$	—	$	—	$	267	$	41
Industrials	—	—		—		3	140		59		140		59
Consumer goods and services	—	—		—		2	66		10		66		10
Technology, media and telecommunications	4	245		2		6	227		62		472		64
Financial services	1	47		19		3	206		71		253		90
Nonredeemable preferred stocks	3	3,425		183		2	1,170		61		4,595		244
Total Available-for-Sale Equity Securities	11	$	3,984	$	245	16	$	1,809	$	263	$	5,793	$	508
Total Available-for-Sale Securities	496	$	819,729	$	39,551	45	$	45,326	$	2,886	$	865,055	$	42,437




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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