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 June 30, 2016 and December 31, 2015, is as follows:



June 30, 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	$	1	$	—	$	451
Financial services	150		—		—		150
Mortgage-backed securities	58		1		—		59
Total Held-to-Maturity Fixed Maturities	$	658	$	2	$	—	$	660
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	$	22,831	$	386	$	—	$	23,217
U.S. government agency	102,445		3,899		—		106,344
States, municipalities and political subdivisions
General obligations:
Midwest	145,607		6,500		—		152,107
Northeast	61,256		3,386		—		64,642
South	133,105		5,652		—		138,757
West	114,463		5,871		—		120,334
Special revenue:
Midwest	163,531		8,733		—		172,264
Northeast	46,855		2,442		—		49,297
South	193,752		10,043		14		203,781
West	93,041		5,090		—		98,131
Foreign bonds	79,744		3,428		1,012		82,160
Public utilities	218,538		11,156		281		229,413
Corporate bonds
Energy	110,618		3,361		754		113,225
Industrials	240,772		12,143		1,821		251,094
Consumer goods and services	180,924		9,191		1		190,114
Health care	84,390		4,975		—		89,365
Technology, media and telecommunications	139,573		6,186		438		145,321
Financial services	269,290		12,751		60		281,981
Mortgage-backed securities	19,609		484		21		20,072
Collateralized mortgage obligations



Government national mortgage association	132,500		5,667		173		137,994
Federal home loan mortgage corporation	144,224		7,012		49		151,187
Federal national mortgage association	110,380		6,457		85		116,752
Asset-backed securities	4,643		266		97		4,812
Total Available-for-Sale Fixed Maturities	$	2,812,091	$	135,079	$	4,806	$	2,942,364
Equity securities:
Common stocks
Public utilities	$	7,231	$	16,213	$	161	$	23,283
Energy	6,514		7,914		46		14,382
Industrials	13,252		33,200		207		46,245
Consumer goods and services	10,324		15,210		45		25,489
Health care	7,763		20,205		—		27,968
Technology, media and telecommunications	5,931		9,049		55		14,925
Financial services	17,289		79,203		73		96,419
Nonredeemable preferred stocks	443		26		—		469
Total Available-for-Sale Equity Securities	$	68,747	$	181,020	$	587	$	249,180
Total Available-for-Sale Securities	$	2,880,838	$	316,099	$	5,393	$	3,191,544



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 June 30, 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
June 30, 2016	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	—	$	—	$	94,578	$	95,444	$	1,186	$	1,341
Due after one year through five years	600		601		839,695		870,386		7,158		8,174
Due after five years through 10 years	—		—		910,131		958,551		850		1,065
Due after 10 years	—		—		556,331		587,166		1,846		1,978
Asset-backed securities	—		—		4,643		4,812		—		—
Mortgage-backed securities	58		59		19,609		20,072		—		—
Collateralized mortgage obligations	—		—		387,104		405,933		—		—
	$	658	$	660	$	2,812,091	$	2,942,364	$	11,040	$	12,558

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 June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Net realized investment gains (losses)
Fixed maturities:
Available-for-sale	$	846		$	965		$	1,362		$	1,956
Trading securities
Change in fair value	98			(261		)	371			(462		)
Sales	461			183			461			699
Equity securities:
Available-for-sale	—			30			984			934
Trading securities
Change in fair value	237			(148		)	330			(204		)
Sales	(26		)	—			(26		)	46
Other long-term investments	—			—			—			(1,313		)
Short-term investments	(43		)	—			—			—
Cash equivalents	23			—			169			—
Total net realized investment gains	$	1,596		$	769		$	3,651		$	1,656

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,
	2016		2015		2016		2015
Proceeds from sales	$	1,074	$	3,211	$	3,042	$	8,228
Gross realized gains	54		57		975		1,030

There were no sales of held-to-maturity securities during the three- and six-month periods ended June 30, 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 $17,562 and $16,975 at June 30, 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 $9,917 at June 30, 2016.

Unrealized Appreciation

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



	Six Months Ended June 30,
	2016			2015
Change in net unrealized investment appreciation
Available-for-sale fixed maturities	$	98,381		$	(29,009	)
Available-for-sale equity securities	12,700			(1,802		)
Deferred policy acquisition costs	(20,220		)	4,797
Income tax effect	(31,802		)	9,105
Total change in net unrealized investment appreciation, net of tax	$	59,059		$	(16,909	)

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 June 30, 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 June 30, 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 June 30, 2016 or at June 30, 2015. 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 June 30, 2016. Our largest unrealized loss greater than 12 months on an individual equity security at June 30, 2016 was $181. 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.




June 30, 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
States, municipalities and political subdivisions
Special revenue
South	2	$	5,524	14		—	$	—	—		$	5,524	14
Foreign bonds	—	—		—		5	9,834		1,012		9,834		1,012
Public utilities	1	852		6		6	6,540		275		7,392		281
Corporate bonds
Energy	7	13,989		145		6	12,315		609		26,304		754
Industrials	2	4,869		246		5	8,642		1,575		13,511		1,821
Consumer goods and services	—	—		—		4	2,480		1		2,480		1
Technology, media and telecommunications	2	4,837		15		3	10,158		423		14,995		438
Financial services	1	4,961		36		1	3,066		24		8,027		60
Mortgage-backed securities	2	5,279		10		5	1,267		11		6,546		21
Collateralized mortgage obligations
Government national mortgage association	2	5,142		28		8	14,372		145		19,514		173
Federal home loan mortgage corporation	2	6,249		3		3	6,398		46		12,647		49
Federal national mortgage association	3	3,287		9		4	4,967		76		8,254		85
Asset-backed securities	1	2,696		97		—	—		—		2,696		97
Total Available-for-Sale Fixed Maturities	25	$	57,685	$	609	50	$	80,039	$	4,197	$	137,724	$	4,806
Equity securities:
Common stocks
Public utilities	—	$	—	$	—	3	$	146	$	161	$	146	$	161
Energy	1	165		26		1	166		20		331		46
Industrials	—	—		—		6	256		207		256		207
Consumer goods and services	4	306		40		2	12		5		318		45
Technology, media and telecommunications	—	—		—		11	500		55		500		55
Financial services	3	363		19		2	160		54		523		73
Total Available-for-Sale Equity Securities	8	$	834	$	85	25	$	1,240	$	502	$	2,074	$	587
Total Available-for-Sale Securities	33	$	58,519	$	694	75	$	81,279	$	4,699	$	139,798	$	5,393




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