Summary of Investments (Tables)

9 Months Ended

Sep. 30, 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 September 30, 2014 and December 31, 2013, is as follows:



September 30, 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	$	55	$	1	$	—	$	56
Corporate bonds - financial services	200		—		—		200
Mortgage-backed securities	158		7		—		165
Total Held-to-Maturity Fixed Maturities	$	413	$	8	$	—	$	421
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	$	31,168	$	198	$	129	$	31,237
U.S. government agency	380,763		2,872		6,247		377,388
States, municipalities and political subdivisions	727,929		32,731		1,302		759,358
Foreign bonds	139,849		5,709		—		145,558
Public utilities	212,716		6,623		295		219,044
Corporate bonds
Energy	135,428		4,360		314		139,474
Industrials	203,976		6,460		1,222		209,214
Consumer goods and services	157,073		4,293		395		160,971
Health care	78,257		3,270		281		81,246
Technology, media and telecommunications	131,910		3,562		1,063		134,409
Financial services	218,530		8,515		224		226,821
Mortgage-backed securities	18,343		493		120		18,716
Collateralized mortgage obligations	325,551		3,150		8,630		320,071
Asset-backed securities	2,865		271		—		3,136
Total Available-for-Sale Fixed Maturities	$	2,764,358	$	82,507	$	20,222	$	2,826,643
Equity securities:
Common stocks
Public utilities	$	7,231	$	10,393	$	10	$	17,614
Energy	5,094		9,990		—		15,084
Industrials	13,284		31,614		55		44,843
Consumer goods and services	10,287		11,982		4		22,265
Health care	7,920		19,254		—		27,174
Technology, media and telecommunications	6,207		7,925		51		14,081
Financial services	16,678		71,272		55		87,895
Nonredeemable preferred stocks	4,984		34		6		5,012
Total Available-for-Sale Equity Securities	$	71,685	$	162,464	$	181	$	233,968
Total Available-for-Sale Securities	$	2,836,043	$	244,971	$	20,403	$	3,060,611



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 September 30, 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
September 30, 2014	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	55	$	56	$	252,688	$	256,818	$	2,173	$	2,428
Due after one year through five years	200		200		853,979		896,360		6,107		7,107
Due after five years through 10 years	—		—		798,893		818,023		1,903		2,199
Due after 10 years	—		—		512,039		513,519		4,673		5,707
Asset-backed securities	—		—		2,865		3,136		—		—
Mortgage-backed securities	158		165		18,343		18,716		—		—
Collateralized mortgage obligations	—		—		325,551		320,071		—		—
	$	413	$	421	$	2,764,358	$	2,826,643	$	14,856	$	17,441

Net Realized Investment Gains and Losses

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



	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
Net realized investment gains (losses)
Fixed maturities:
Available-for-sale	$	984		$	765		$	2,336		$	2,670
Trading securities
Change in fair value	(253		)	360			695			790
Sales	181			310			701			608
Equity securities:
Available-for-sale	—			(9		)	1,736			3,739
Trading securities
Change in fair value	(17		)	(97		)	329			(116		)
Sales	(1		)	—			(1		)	38
Other long-term investments	—			—			—			(340		)
Other-than-temporary-impairment charges - fixed maturities	—			(139		)	—			(139		)
Total net realized investment gains	$	894		$	1,190		$	5,796		$	7,250

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 September 30,				Nine Months Ended September 30,
	2014		2013		2014			2013
Proceeds from sales	$	3,081	$	17,036	$	3,091		$	23,007
Gross realized gains	900		213		900			451
Gross realized losses	—		—		(56		)	—

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,
	2014			2013
Change in net unrealized investment appreciation
Available-for-sale fixed maturities	$	44,586		$	(105,296	)
Available-for-sale equity securities	3,872			27,352
Deferred policy acquisition costs	(13,764		)	34,098
Income tax effect	(12,143		)	15,346
Total change in net unrealized investment appreciation, net of tax	$	22,551		$	(28,500	)

Investments in Unrealized Loss Position




September 30, 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	9	$	9,269	$	52	6	$	6,086	$	77	$	15,355	$	129
U.S. government agency	34	89,312		532		44	126,509		5,715		215,821		6,247
States, municipalities and political subdivisions	20	21,590		107		71	60,745		1,195		82,335		1,302
Public utilities	14	25,296		159		5	5,261		136		30,557		295
Corporate bonds
Energy	5	10,680		32		3	7,170		282		17,850		314
Industrials	5	10,977		69		4	13,347		1,153		24,324		1,222
Consumer goods and services	4	12,349		200		8	15,447		195		27,796		395
Health care	3	7,489		85		3	7,110		196		14,599		281
Technology, media and telecommunications	6	17,577		174		5	18,942		889		36,519		1,063
Financial services	8	15,185		79		2	6,047		145		21,232		224
Mortgage-backed securities	5	217		15		5	5,496		105		5,713		120
Collateralized mortgage obligations	24	47,272		521		64	136,875		8,109		184,147		8,630
Total Available-for-Sale Fixed Maturities	137	$	267,213	$	2,025	220	$	409,035	$	18,197	$	676,248	$	20,222
Equity securities:
Common stocks
Public utilities	3	$	298	$	10	—	$	—	$	—	$	298	$	10
Industrials	1	49		3		2	61		52		110		55
Consumer goods and services	1	14		4		—	—		—		14		4
Technology, media and telecommunications	—	—		—		5	211		51		211		51
Financial services	1	223		55		—	—		—		223		55
Nonredeemable preferred stocks	—	—		—		1	701		6		701		6
Total Available-for-Sale Equity Securities	6	$	584	$	72	8	$	973	$	109	$	1,557	$	181
Total Available-for-Sale Securities	143	$	267,797	$	2,097	228	$	410,008	$	18,306	$	677,805	$	20,403




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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