Summary of Investments (Tables)

3 Months Ended

Mar. 31, 2017

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, 2017 and December 31, 2016 is as follows:



March 31, 2017
Type of Investment	Cost or Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Fair Value
HELD-TO-MATURITY
Fixed maturities:
Bonds
Corporate bonds - financial services	$	150	$	—	$	—	$	150
Mortgage-backed securities	45		1		—		46
Total Held-to-Maturity Fixed Maturities	$	195	$	1	$	—	$	196
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	$	22,142	$	73	$	100	$	22,115
U.S. government agency	70,671		1,426		438		71,659
States, municipalities and political subdivisions
General obligations:
Midwest	133,706		1,873		1,068		134,511
Northeast	56,241		1,042		177		57,106
South	144,366		1,455		2,298		143,523
West	123,026		1,558		1,839		122,745
Special revenue:
Midwest	165,789		2,412		1,326		166,875
Northeast	72,489		558		2,323		70,724
South	258,835		2,020		5,954		254,901
West	148,390		1,701		3,717		146,374
Foreign bonds	59,295		2,076		—		61,371
Public utilities	211,412		3,987		427		214,972
Corporate bonds
Energy	103,194		2,190		193		105,191
Industrials	222,476		5,017		498		226,995
Consumer goods and services	176,581		4,089		269		180,401
Health care	75,951		2,039		37		77,953
Technology, media and telecommunications	143,113		2,562		700		144,975
Financial services	272,088		5,720		929		276,879
Mortgage-backed securities	16,366		166		250		16,282
Collateralized mortgage obligations
Government national mortgage association	156,554		1,483		2,451		155,586
Federal home loan mortgage corporation	178,052		1,886		3,453		176,485



Federal national mortgage association	99,420		1,907		1,090		100,237
Asset-backed securities	4,367		147		186		4,328
Total Available-for-Sale Fixed Maturities	$	2,914,524	$	47,387	$	29,723	$	2,932,188
Equity securities:
Common stocks
Public utilities	$	6,394	$	14,691	$	125	$	20,960
Energy	6,514		7,828		29		14,313
Industrials	13,117		42,387		175		55,329
Consumer goods and services	10,074		15,272		64		25,282
Health care	7,763		22,065		—		29,828
Technology, media and telecommunications	6,009		9,355		59		15,305
Financial services	17,069		96,587		50		113,606
Nonredeemable preferred stocks	1,037		24		—		1,061
Total Available-for-Sale Equity Securities	$	67,977	$	208,209	$	502	$	275,684
Total Available-for-Sale Securities	$	2,982,501	$	255,596	$	30,225	$	3,207,872



December 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 - financial services	$	150	$	—	$	—	$	150
Mortgage-backed securities	48		1		—		49
Total Held-to-Maturity Fixed Maturities	$	198	$	1	$	—	$	199
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	$	23,216	$	87	$	108	$	23,195
U.S. government agency	76,692		1,445		540		77,597
States, municipalities and political subdivisions
General obligations:
Midwest	143,747		1,808		1,412		144,143
Northeast	57,731		909		231		58,409
South	129,475		1,249		2,355		128,369
West	114,524		1,380		2,173		113,731
Special revenue:
Midwest	167,430		2,313		1,433		168,310
Northeast	70,202		487		2,624		68,065
South	244,225		1,753		6,791		239,187
West	134,287		1,509		4,052		131,744
Foreign bonds	62,995		2,239		—		65,234
Public utilities	212,360		3,761		447		215,674
Corporate bonds
Energy	107,084		2,195		419		108,860
Industrials	225,526		5,359		982		229,903
Consumer goods and services	178,135		3,847		295		181,687
Health care	81,211		2,063		151		83,123
Technology, media and telecommunications	143,402		2,029		819		144,612
Financial services	269,981		5,328		1,358		273,951
Mortgage-backed securities	17,288		201		241		17,248
Collateralized mortgage obligations
Government national mortgage association	145,947		1,279		2,766		144,460
Federal home loan mortgage corporation	176,226		1,638		3,406		174,458
Federal national mortgage association	101,414		1,816		1,334		101,896
Asset-backed securities	4,407		145		282		4,270
Total Available-for-Sale Fixed Maturities	$	2,887,505	$	44,840	$	34,219	$	2,898,126



Equity securities:
Common stocks
Public utilities	$	6,394	$	13,465	$	188	$	19,671
Energy	6,514		8,555		22		15,047
Industrials	13,252		38,715		173		51,794
Consumer goods and services	10,324		13,851		58		24,117
Health care	7,763		19,657		—		27,420
Technology, media and telecommunications	5,931		9,476		38		15,369
Financial services	17,289		98,728		67		115,950
Nonredeemable preferred stocks	1,037		11		—		1,048
Total Available-for-Sale Equity Securities	$	68,504	$	202,458	$	546	$	270,416
Total Available-for-Sale Securities	$	2,956,009	$	247,298	$	34,765	$	3,168,542

Maturities

The amortized cost and fair value of held-to-maturity, available-for-sale and trading fixed maturity securities at March 31, 2017, 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, 2017	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	150	$	150	$	125,861	$	126,941	$	2,593	$	2,815
Due after one year through five years	—		—		814,770		835,999		7,213		8,396
Due after five years through 10 years	—		—		802,379		812,933		1,302		1,377
Due after 10 years	—		—		716,755		703,397		2,156		2,383
Asset-backed securities	—		—		4,367		4,328		—		—
Mortgage-backed securities	45		46		16,366		16,282		—		—
Collateralized mortgage obligations	—		—		434,026		432,308		—		—
	$	195	$	196	$	2,914,524	$	2,932,188	$	13,264	$	14,971

Net Realized Investment Gains and Losses

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



	Three Months Ended March 31,
	2017		2016
Net realized investment gains
Fixed maturities:
Available-for-sale	$	1,995	$	516
Trading securities
Change in fair value	371		273
Sales	57		—
Equity securities:
Available-for-sale	1,410		984
Trading securities
Change in fair value	111		93
Sales	10		—
Short-term investments	—		43
Cash equivalents	—		146
Total net realized investment gains	$	3,954	$	2,055

Proceeds and Gross Realized Gains and Losses

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



	Three Months Ended March 31,
	2017		2016
Proceeds from sales	$	5,059	$	1,968
Gross realized gains	2,222		921

Unrealized Investment Appreciation

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



	Three Months Ended March 31,
	2017			2016
Change in net unrealized investment appreciation
Available-for-sale fixed maturities	$	7,043		$	52,556
Available-for-sale equity securities	5,795			1,359
Deferred policy acquisition costs	(1,277		)	(11,685		)
Income tax effect	(4,046		)	(14,781		)
Total change in net unrealized investment appreciation, net of tax	$	7,515		$	27,449

Investments in Unrealized Loss Position




March 31, 2017	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	11	$	11,779	$	100	—	$	—	$	—	$	11,779	$	100
U.S. government agency	9	33,651		438		—	—		—		33,651		438
States, municipalities and political subdivisions
General obligations
Midwest	16	32,139		1,068		—	—		—		32,139		1,068
Northeast	4	6,939		177		—	—		—		6,939		177
South	28	60,252		2,298		—	—		—		60,252		2,298
West	23	48,967		1,839		—	—		—		48,967		1,839
Special revenue
Midwest	30	51,512		1,326		—	—		—		51,512		1,326
Northeast	21	51,512		2,323		—	—		—		51,512		2,323
South	69	142,601		5,954		—	—		—		142,601		5,954
West	36	75,008		3,717		—	—		—		75,008		3,717
Public utilities	17	32,195		389		3	2,107		38		34,302		427
Corporate bonds
Energy	4	6,951		173		1	4,174		20		11,125		193
Industrials	16	26,794		297		2	4,758		201		31,552		498
Consumer goods and services	11	20,912		269		—	—		—		20,912		269
Health care	3	8,472		37		—	—		—		8,472		37
Technology, media and telecommunications	13	32,671		397		3	10,222		303		42,893		700
Financial services	24	51,512		929		—	—		—		51,512		929
Mortgage-backed securities	19	9,301		195		4	1,087		55		10,388		250
Collateralized mortgage obligations
Government national mortgage association	36	82,052		1,830		10	17,273		621		99,325		2,451
Federal home loan mortgage corporation	40	100,351		3,223		3	4,969		230		105,320		3,453
Federal national mortgage association	23	39,294		857		4	4,180		233		43,474		1,090
Asset-backed securities	—	—		—		1	2,647		186		2,647		186
Total Available-for-Sale Fixed Maturities	453	$	924,865	$	27,836	31	$	51,417	$	1,887	$	976,282	$	29,723
Equity securities:
Common stocks
Public utilities	—	$	—	$	—	3	$	183	$	125	$	183	$	125
Energy	1	190		2		1	158		27		348		29
Industrials	—	—		—		6	237		175		237		175
Consumer goods and services	1	22		1		4	269		63		291		64
Technology, media and telecommunications	8	93		16		8	22		43		115		59
Financial services	3	53		2		2	165		48		218		50
Total Available-for-Sale Equity Securities	13	$	358	$	21	24	$	1,034	$	481	$	1,392	$	502
Total Available-for-Sale Securities	466	$	925,223	$	27,857	55	$	52,451	$	2,368	$	977,674	$	30,225




December 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	9	$	10,800	$	108	—	$	—	$	—	$	10,800	$	108
U.S. government agency	10	36,593		540		—	—		—		36,593		540
States, municipalities and political subdivisions
General obligations
Midwest	27	40,545		1,412		—	—		—		40,545		1,412
Northeast	9	9,874		231		—	—		—		9,874		231
South	37	53,699		2,355		—	—		—		53,699		2,355
West	30	55,265		2,173		—	—		—		55,265		2,173
Special revenue
Midwest	41	62,937		1,433		—	—		—		62,937		1,433
Northeast	22	54,993		2,624		—	—		—		54,993		2,624
South	79	152,979		6,791		—	—		—		152,979		6,791
West	44	81,676		4,052		—	—		—		81,676		4,052
Public utilities	20	38,511		423		2	2,122		24		40,633		447
Corporate bonds
Energy	8	15,938		313		3	8,232		106		24,170		419
Industrials	24	42,854		596		3	5,641		386		48,495		982
Consumer goods and services	11	21,059		295		—	—		—		21,059		295
Health care	9	20,918		151		—	—		—		20,918		151
Technology, media and telecommunications	16	41,230		516		3	10,241		303		51,471		819
Financial services	37	75,286		1,358		—	—		—		75,286		1,358
Mortgage-backed securities	16	9,611		187		5	1,198		54		10,809		241
Collateralized mortgage obligations
Government national mortgage association	36	82,430		2,261		9	13,603		505		96,033		2,766
Federal home loan mortgage corporation	41	105,775		3,165		3	5,141		241		110,916		3,406
Federal national mortgage association	27	46,633		1,091		4	4,341		243		50,974		1,334
Asset-backed securities	1	971		29		1	2,559		253		3,530		282
Total Available-for-Sale Fixed Maturities	554	$	1,060,577	$	32,104	33	$	53,078	$	2,115	$	1,113,655	$	34,219
Equity securities:
Common stocks
Public utilities	—	$	—	$	—	3	$	120	$	188	$	120	$	188
Energy	—	—		—		1	163		22		163		22
Industrials	—	—		—		6	239		173		239		173
Consumer goods and services	3	282		55		2	15		3		297		58
Technology, media and telecommunications	7	26		5		8	33		33		59		38
Financial services	3	53		3		2	150		64		203		67
Total Available-for-Sale Equity Securities	13	$	361	$	63	22	$	720	$	483	$	1,081	$	546
Total Available-for-Sale Securities	567	$	1,060,938	$	32,167	55	$	53,798	$	2,598	$	1,114,736	$	34,765