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 March 31, 2016 and December 31, 2015, is as follows:



March 31, 2016
Type of Investment	Cost or Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Fair Value
HELD-TO-MATURITY
Fixed maturities:
Bonds
Corporate bonds
Technology, media and telecommunications	$	450	$	2	$	—	$	452
Financial services	150		—		—		150
Mortgage-backed securities	64		1		—		65
Total Held-to-Maturity Fixed Maturities	$	664	$	3	$	—	$	667
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	$	23,783	$	303	$	3	$	24,083
U.S. government agency	176,116		3,728		28		179,816
States, municipalities and political subdivisions



General obligations:
Midwest	160,686		5,464		14		166,136
Northeast	61,333		2,594		—		63,927
South	119,448		3,971		—		123,419
West	106,544		3,949		49		110,444
Special revenue:
Midwest	156,902		6,186		—		163,088
Northeast	29,203		1,143		4		30,342
South	160,498		5,779		7		166,270
West	80,862		3,796		2		84,656
Foreign bonds	80,115		2,555		1,925		80,745
Public utilities	215,122		7,624		826		221,920
Corporate bonds
Energy	116,341		1,763		3,422		114,682
Industrials	239,448		7,950		3,276		244,122
Consumer goods and services	176,258		7,529		3		183,784
Health care	87,699		3,870		43		91,526
Technology, media and telecommunications	141,213		4,394		1,070		144,537
Financial services	252,289		8,961		228		261,022
Mortgage-backed securities	15,352		464		17		15,799
Collateralized mortgage obligations
Government national mortgage association	123,776		3,716		403		127,089
Federal home loan mortgage corporation	134,375		5,285		149		139,511
Federal national mortgage association	108,566		4,994		127		113,433
Asset-backed securities	4,789		238		212		4,815
Total Available-for-Sale Fixed Maturities	$	2,770,718	$	96,256	$	11,808	$	2,855,166
Equity securities:
Common stocks
Public utilities	$	7,231	$	14,893	$	181	$	21,943
Energy	6,514		6,409		158		12,765
Industrials	13,252		32,722		232		45,742
Consumer goods and services	10,301		13,978		5		24,274
Health care	7,763		19,108		—		26,871
Technology, media and telecommunications	5,931		8,550		57		14,424
Financial services	17,289		74,132		93		91,328
Nonredeemable preferred stocks	443		26		—		469
Total Available-for-Sale Equity Securities	$	68,724	$	169,818	$	726	$	237,816
Total Available-for-Sale Securities	$	2,839,442	$	266,074	$	12,534	$	3,092,982



December 31, 2015
Type of Investment	Cost or Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Fair Value
HELD-TO-MATURITY
Fixed maturities:
Bonds
Corporate bonds
Technology, media and telecommunications	$	450	$	1	$	—	$	451
Financial services	150		—		—		150
Mortgage-backed securities	72		2		—		74
Total Held-to-Maturity Fixed Maturities	$	672	$	3	$	—	$	675
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	$	21,587	$	100	$	38	$	21,649
U.S. government agency	232,808		2,622		2,400		233,030
States, municipalities and political subdivisions
General obligations:
Midwest	160,484		4,990		18		165,456
Northeast	56,449		1,996		—		58,445
South	125,565		3,358		134		128,789
West	103,721		3,160		67		106,814
Special revenue:
Midwest	152,780		4,956		30		157,706
Northeast	23,892		919		212		24,599
South	144,183		4,281		27		148,437
West	78,935		3,150		44		82,041
Foreign bonds	82,580		2,405		2,457		82,528
Public utilities	213,233		3,701		1,251		215,683
Corporate bonds
Energy	116,800		1,032		4,713		113,119
Industrials	227,589		3,329		6,663		224,255
Consumer goods and services	172,529		2,844		776		174,597
Health care	92,132		2,168		791		93,509
Technology, media and telecommunications	142,431		1,972		2,003		142,400
Financial services	259,382		5,246		1,143		263,485
Mortgage-backed securities	16,413		376		51		16,738
Collateralized mortgage obligations
Government national mortgage association	120,220		1,391		1,985		119,626
Federal home loan mortgage corporation	137,874		2,377		1,342		138,909
Federal national mortgage association	106,021		2,400		941		107,480
Asset-backed securities	5,461		221		16		5,666



Total Available-for-Sale Fixed Maturities	$	2,793,069	$	58,994	$	27,102	$	2,824,961
Equity securities:
Common stocks
Public utilities	$	7,231	$	12,022	$	193	$	19,060
Energy	6,103		5,374		266		11,211
Industrials	13,251		31,872		313		44,810
Consumer goods and services	10,301		13,017		3		23,315
Health care	7,763		20,454		—		28,217
Technology, media and telecommunications	5,931		7,538		105		13,364
Financial services	17,392		78,411		109		95,694
Nonredeemable preferred stocks	542		34		—		576
Total Available-for-Sale Equity Securities	$	68,514	$	168,722	$	989	$	236,247
Total Available-for-Sale Securities	$	2,861,583	$	227,716	$	28,091	$	3,061,208

Maturities

The amortized cost and fair value of held-to-maturity, available-for-sale and trading fixed maturity securities at March 31, 2016, 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, 2016	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	—	$	—	$	88,221	$	88,799	$	1,614	$	2,178
Due after one year through five years	600		602		841,686		865,457		7,701		8,401
Due after five years through 10 years	—		—		934,933		964,495		375		488
Due after 10 years	—		—		519,020		535,768		1,847		1,933
Asset-backed securities	—		—		4,789		4,815		—		—
Mortgage-backed securities	64		65		15,352		15,799		—		—
Collateralized mortgage obligations	—		—		366,717		380,033		—		—
	$	664	$	667	$	2,770,718	$	2,855,166	$	11,537	$	13,000

Net Realized Investment Gains and Losses

Net realized gains on disposition of investments are computed using the specific identification method and are included in the computation of net income. A summary of the components of net realized investment gains (losses) is as follows:



	Three Months Ended March 31,
	2016		2015
Net realized investment gains (losses)
Fixed maturities:
Available-for-sale	$	516	$	991
Trading securities
Change in fair value	273		(201		)
Sales	—		516
Equity securities:
Available-for-sale	984		904
Trading securities
Change in fair value	93		(56		)
Sales	—		46
Other long-term investments	43		(1,313		)
Cash equivalents	146		—
Total net realized investment gains	$	2,055	$	887

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



	Three Months Ended March 31,
	2016		2015
Proceeds from sales	$	1,968	$	5,017
Gross realized gains	921		973
Gross realized losses	—		—

There were no sales of held-to-maturity securities during the three-month periods ended March 31, 2016 and 2015.

Our investment portfolio includes trading securities with embedded derivatives. These securities are primarily convertible securities which 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. Our portfolio of trading securities had a fair value of $17,446 and $16,975 at March 31, 2016 and December 31, 2015, respectively.

Funding Commitment

Pursuant to an agreement with one of our limited liability partnership investments, we are contractually committed through December 31, 2023 to make capital contributions upon request of the partnership. Our remaining potential contractual obligation was $10,307 at March 31, 2016.

Unrealized Appreciation

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



	Three Months Ended March 31,
	2016			2015
Change in net unrealized investment appreciation
Available-for-sale fixed maturities	$	52,556		$	21,008
Available-for-sale equity securities	1,359			(2,879		)
Deferred policy acquisition costs	(11,685		)	(6,911		)
Income tax effect	(14,781		)	(3,926		)
Total change in net unrealized investment appreciation, net of tax	$	27,449		$	7,292

We continually monitor the difference between our cost basis and the estimated fair value of our investments. Our accounting policy for impairment recognition requires other-than-temporary impairment ("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 or based on the value calculated using a discounted cash flow model. Credit-related impairments on fixed maturity securities that we do not plan to sell, and for which we are not more likely than not to be required to sell, are recognized in net income. Any non-credit related impairment is recognized as a component of other comprehensive income. 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 March 31, 2016 and December 31, 2015. 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 March 31, 2016, if future events or information cause us to determine that a decline in fair value is other-than-temporary.

We have evaluated the near-term prospects of the issuers of our fixed maturity securities in relation to the severity and duration of the unrealized loss, and unless otherwise noted, these losses did not warrant the recognition of an OTTI charge at March 31, 2016 or at March 31, 2015. We believe the unrealized depreciation in value of other 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 the fair value recovers to at least equal to our cost basis or the securities mature.

We have evaluated the near-term prospects of the issuers of our equity securities in relation to the severity and duration of the unrealized loss, and unless otherwise noted, these losses do not warrant the recognition of an OTTI charge at March 31, 2016. Our largest unrealized loss greater than 12 months on an individual equity security at March 31, 2016 was $189. 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.




March 31, 2016	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	$	1,637	$	3	$	1,637	$	3
U.S. government agency	7	18,173		25		1	2,995		3		21,168		28
States, municipalities and political subdivisions
General obligations
Midwest	3	9,619		14		—	—		—		9,619		14
West	1	3,136		37		2	2,301		12		5,437		49
Special revenue
Northeast	1	1,037		4		—	—		—		1,037		4
South	3	4,149		7		—	—		—		4,149		7
West	—	—		—		1	719		2		719		2
Foreign bonds	7	11,277		534		2	3,804		1,391		15,081		1,925
Public utilities	4	8,231		394		6	5,997		432		14,228		826
Corporate bonds
Energy	20	44,540		2,328		5	10,764		1,094		55,304		3,422
Industrials	8	16,891		618		8	15,276		2,658		32,167		3,276
Consumer goods and services	—	—		—		4	2,486		3		2,486		3
Health care	—	—		—		2	2,732		43		2,732		43
Technology, media and telecommunications	9	26,290		365		4	15,132		705		41,422		1,070
Financial services	8	17,662		160		3	6,130		68		23,792		228
Mortgage-backed securities	—	—		—		4	1,379		17		1,379		17
Collateralized mortgage obligations
Government national mortgage association	5	7,888		22		12	26,988		381		34,876		403
Federal home loan mortgage corporation	1	6,970		18		5	12,692		131		19,662		149
Federal national mortgage association	4	5,503		22		4	5,165		105		10,668		127
Asset-backed securities	1	2,574		212		—	—		—		2,574		212
Total Available-for-Sale Fixed Maturities	82	$	183,940	$	4,760	65	$	116,197	$	7,048	$	300,137	$	11,808
Equity securities:
Common stocks
Public utilities	—	$	—	$	—	3	$	127	$	181	$	127	$	181
Energy	8	1,935		158		—	—		—		1,935		158
Industrials	2	1		1		5	231		231		232		232
Consumer goods and services	2	32		1		2	13		4		45		5
Technology, media and telecommunications	7	488		40		5	31		17		519		57
Financial services	6	408		29		2	150		64		558		93
Total Available-for-Sale Equity Securities	25	$	2,864	$	229	17	$	552	$	497	$	3,416	$	726
Total Available-for-Sale Securities	107	$	186,804	$	4,989	82	$	116,749	$	7,545	$	303,553	$	12,534




December 31, 2015	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	6	$	6,408	$	26	2	$	1,634	$	12	$	8,042	$	38
U.S. government agency	38	104,621		1,771		6	18,821		629		123,442		2,400
States, municipalities and political subdivisions
General obligations
Midwest	4	2,417		12		1	528		6		2,945		18
South	3	4,805		55		8	3,743		79		8,548		134
West	4	8,927		23		2	2,274		44		11,201		67
Special revenue
Midwest	—	—		—		1	2,494		30		2,494		30
Northeast	1	4,755		212		—	—		—		4,755		212
South	4	7,445		26		2	1,851		1		9,296		27
West	4	6,851		44		—	—		—		6,851		44
Foreign bonds	9	16,991		1,289		2	4,036		1,168		21,027		2,457
Public utilities	35	72,680		880		5	2,840		371		75,520		1,251
Corporate bonds
Energy	29	61,496		3,286		4	7,991		1,427		69,487		4,713
Industrials	38	78,588		3,631		3	6,649		3,032		85,237		6,663
Consumer goods and services	24	64,661		770		4	2,491		6		67,152		776
Health care	18	43,992		652		2	3,737		139		47,729		791
Technology, media and telecommunications	22	59,503		1,478		2	8,940		525		68,443		2,003
Financial services	49	92,814		1,143		—	—		—		92,814		1,143
Mortgage-backed securities	9	7,423		43		4	183		8		7,606		51
Collateralized mortgage obligations
Government national mortgage association	17	29,769		437		14	40,027		1,548		69,796		1,985
Federal home loan mortgage corporation	20	35,343		644		6	19,887		698		55,230		1,342
Federal national mortgage association	15	32,800		524		11	11,962		417		44,762		941
Asset-backed securities	1	985		16		—	—		—		985		16
Total Available-for-Sale Fixed Maturities	350	$	743,274	$	16,962	79	$	140,088	$	10,140	$	883,362	$	27,102
Equity securities:
Common stocks
Public utilities	—	$	—	$	—	3	$	115	$	193	$	115	$	193
Energy	10	2,868		266		—	—		—		2,868		266
Industrials	3	177		44		5	193		269		370		313
Consumer goods and services	—	—		—		2	14		3		14		3
Technology, media and telecommunications	9	438		91		2	12		14		450		105
Financial services	6	326		51		1	136		58		462		109



Total Available-for-Sale Equity Securities	28	$	3,809	$	452	13	$	470	$	537	$	4,279	$	989
Total Available-for-Sale Securities	378	$	747,083	$	17,414	92	$	140,558	$	10,677	$	887,641	$	28,091