Summary of Investments (Tables)

3 Months Ended

Mar. 31, 2014

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 March 31, 2014 and December 31, 2013, is as follows:



March 31, 2014
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	$	249	$	4	$	—	$	253
Corporate bonds - financial services	200		—		—		200
Mortgage-backed securities	195		8		—		203
Total Held-to-Maturity Fixed Maturities	$	644	$	12	$	—	$	656
AVAILABLE-FOR-SALE
Fixed maturities
Bonds
U.S. Treasury	$	32,539	$	346	$	130	$	32,755
U.S. government agency	319,146		1,175		11,641		308,680
States, municipalities and political subdivisions	699,631		33,156		5,191		727,596
Foreign bonds	157,747		6,096		104		163,739
Public utilities	209,721		6,719		764		215,676
Corporate bonds
Energy	156,177		4,667		682		160,162
Industrials	227,612		6,220		1,209		232,623
Consumer goods and services	171,884		4,454		597		175,741
Health care	82,693		3,400		552		85,541
Technology, media and telecommunications	119,579		3,198		1,516		121,261
Financial services	241,936		8,780		272		250,444
Mortgage-backed securities	20,919		401		215		21,105
Collateralized mortgage obligations	316,736		2,224		11,941		307,019
Asset-backed securities	3,141		240		—		3,381
Total Available-for-Sale Fixed Maturities	$	2,759,461	$	81,076	$	34,814	$	2,805,723
Equity securities
Common stocks
Public utilities	$	7,231	$	10,231	$	—	$	17,462
Energy	5,094		9,562		—		14,656
Industrials	13,286		32,197		34		45,449
Consumer goods and services	10,363		10,933		3		21,293
Health care	7,920		17,025		—		24,945
Technology, media and telecommunications	6,204		7,176		58		13,322
Financial services	15,939		74,451		113		90,277
Nonredeemable preferred stocks	4,984		11		22		4,973
Total Available-for-Sale Equity Securities	$	71,021	$	161,586	$	230	$	232,377
Total Available-for-Sale Securities	$	2,830,482	$	242,662	$	35,044	$	3,038,100



December 31, 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	$	250	$	4	$	—	$	254
Corporate bonds - financial services	200		—		—		200
Mortgage-backed securities	206		9		—		215
Total Held-to-Maturity Fixed Maturities	$	656	$	13	$	—	$	669
AVAILABLE-FOR-SALE
Fixed maturities
Bonds
U.S. Treasury	$	33,612	$	423	$	140	$	33,895
U.S. government agency	287,988		258		18,663		269,583
States, municipalities and political subdivisions	690,461		34,151		10,705		713,907
Foreign bonds	167,390		5,863		397		172,856
Public utilities	213,479		6,873		1,776		218,576
Corporate bonds
Energy	157,620		4,398		1,008		161,010
Industrials	234,221		5,626		2,819		237,028
Consumer goods and services	165,565		3,770		1,421		167,914
Health care	91,008		3,138		1,200		92,946
Technology, media and telecommunications	121,746		2,541		3,321		120,966
Financial services	234,739		7,735		723		241,751
Mortgage-backed securities	22,034		323		291		22,066
Collateralized mortgage obligations	309,975		1,707		16,919		294,763
Asset-backed securities	3,719		276		—		3,995
Total Available-for-Sale Fixed Maturities	$	2,733,557	$	77,082	$	59,383	$	2,751,256
Equity securities
Common stocks
Public utilities	$	7,231	$	9,068	$	27	$	16,272
Energy	5,094		9,269		—		14,363
Industrials	13,308		32,823		32		46,099
Consumer goods and services	10,363		10,895		—		21,258
Health care	7,920		17,078		—		24,998
Technology, media and telecommunications	6,204		7,183		83		13,304
Financial services	15,853		72,537		128		88,262
Nonredeemable preferred stocks	4,984		5		177		4,812
Total Available-for-Sale Equity Securities	$	70,957	$	158,858	$	447	$	229,368
Total Available-for-Sale Securities	$	2,804,514	$	235,940	$	59,830	$	2,980,624

Maturities

The amortized cost and fair value of held-to-maturity, available-for-sale and trading fixed maturity securities at March 31, 2014, 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
March 31, 2014	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	135	$	136	$	247,860	$	251,533	$	1,527	$	1,527
Due after one year through five years	314		317		928,808		976,157		6,926		8,174
Due after five years through 10 years	—		—		826,150		841,995		550		684
Due after 10 years	—		—		415,847		404,533		4,901		5,710
Asset-backed securities	—		—		3,141		3,381		—		—
Mortgage-backed securities	195		203		20,919		21,105		—		—
Collateralized mortgage obligations	—		—		316,736		307,019		—		—
	$	644	$	656	$	2,759,461	$	2,805,723	$	13,904	$	16,095

Net Realized Investment Gains and Losses

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



	Three Months Ended March 31,
	2014		2013
Net realized investment gains
Fixed maturities:
Available-for-sale	$	647	$	720
Trading securities
Change in fair value	300		560
Sales	235		—
Equity securities
Available-for-sale	835		516
Trading securities - change in fair value	177		113
Total net realized investment gains	$	2,194	$	1,909

Proceeds and Gross Realized Gains and Losses

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



	Three Months Ended March 31,
	2014		2013
Proceeds from sales	$	—	$	2,810
Gross realized gains	—		142
Gross realized losses	—		—

Unrealized Appreciation and Depreciation

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



	Three Months Ended March 31,
	2014			2013
Change in net unrealized investment appreciation
Available-for-sale fixed maturities	$	28,563		$	(9,598	)
Available-for-sale equity securities	2,945			17,978
Deferred policy acquisition costs	(8,920		)	4,871
Income tax effect	(7,907		)	(4,637		)
Total change in net unrealized investment appreciation, net of tax	$	14,681		$	8,614

Investments in Unrealized Loss Position




March 31, 2014	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	12	$	11,663	$	130	—	$	—	$	—	$	11,663	$	130
U.S. government agency	75	194,814		11,330		2	4,689		311		199,503		11,641
States, municipalities and political subdivisions	108	89,654		3,227		37	32,844		1,964		122,498		5,191
Foreign bonds	3	6,231		104		—	—		—		6,231		104
Public utilities	23	46,900		764		—	—		—		46,900		764
Corporate bonds
Energy	7	17,647		395		1	4,053		287		21,700		682
Industrials	14	34,997		655		2	7,482		554		42,479		1,209
Consumer goods and services	10	28,316		363		7	5,115		234		33,431		597
Health care	5	15,026		362		2	4,480		190		19,506		552
Technology, media and telecommunications	7	25,434		675		2	7,782		841		33,216		1,516
Financial services	5	12,252		239		1	505		33		12,757		272
Mortgage-backed securities	11	3,707		120		7	3,086		95		6,793		215
Collateralized mortgage obligations	75	143,390		6,319		34	69,064		5,622		212,454		11,941
Total Available-for-Sale Fixed Maturities	355	$	630,031	$	24,683	95	$	139,100	$	10,131	$	769,131	$	34,814
Equity securities
Common stocks
Industrials	—	$	—	$	—	2	$	78	$	34	$	78	$	34
Consumer goods and services	1	15		3		—	—		—		15		3
Technology, media and telecommunications	—	—		—		6	231		58		231		58
Financial services	—	—		—		4	230		113		230		113
Nonredeemable preferred stocks	—	—		—		2	1,210		22		1,210		22
Total Available-for-Sale Equity Securities	1	$	15	$	3	14	$	1,749	$	227	$	1,764	$	230
Total Available-for-Sale Securities	356	$	630,046	$	24,686	109	$	140,849	$	10,358	$	770,895	$	35,044




December 31, 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	10	$	9,196	$	140	—	$	—	$	—	$	9,196	$	140
U.S. government agency	101	256,203		18,019		2	4,356		644		260,559		18,663
States, municipalities and political subdivisions	136	97,950		7,423		29	29,670		3,282		127,620		10,705
Foreign bonds	10	20,832		397		—	—		—		20,832		397
Public utilities	31	61,582		1,776		—	—		—		61,582		1,776
Corporate bonds
Energy	9	23,735		1,008		—	—		—		23,735		1,008
Industrials	34	77,788		2,819		—	—		—		77,788		2,819
Consumer goods and services	31	58,833		1,276		6	3,218		145		62,051		1,421
Health care	10	25,888		942		2	4,427		258		30,315		1,200
Technology, media and telecommunications	18	58,105		2,147		2	7,468		1,174		65,573		3,321
Financial services	7	15,191		720		1	1,525		3		16,716		723
Mortgage-backed securities	16	4,476		177		6	3,113		114		7,589		291
Collateralized mortgage obligations	111	208,855		11,062		23	55,184		5,857		264,039		16,919
Total Available-for-Sale Fixed Maturities	524	$	918,634	$	47,906	71	$	108,961	$	11,477	$	1,027,595	$	59,383
Equity securities
Common stocks
Public utilities	—	$	—	$	—	3	$	281	$	27	$	281	$	27
Industrials	1	1		1		2	81		31		82		32
Technology, media and telecommunications	—	—		—		6	206		83		206		83
Financial services	—	—		—		4	215		128		215		128
Nonredeemable preferred stocks	3	3,493		116		2	1,170		61		4,663		177
Total Available-for-Sale Equity Securities	4	$	3,494	$	117	17	$	1,953	$	330	$	5,447	$	447
Total Available-for-Sale Securities	528	$	922,128	$	48,023	88	$	110,914	$	11,807	$	1,033,042	$	59,830

- 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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