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, presented on a consolidated basis, including both continuing and discontinued operations as of March 31, 2018 and December 31, 2017, is as follows:



March 31, 2018
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	—		—		—		—
Total Held-to-Maturity Fixed Maturities	$	150	$	—	$	—	$	150
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	$	15,995	$	1	$	270	$	15,726
U.S. government agency	135,379		606		1,556		134,429
States, municipalities and political subdivisions
General obligations:
Midwest	105,376		1,019		1,060		105,335
Northeast	46,132		468		196		46,404
South	134,796		916		1,993		133,719
West	112,871		976		1,516		112,331
Special revenue:
Midwest	143,823		1,495		1,188		144,130
Northeast	64,020		481		1,443		63,058
South	250,757		1,707		4,404		248,060
West	149,928		1,294		2,757		148,465
Foreign bonds	10,826		156		—		10,982
Public utilities	48,024		249		632		47,641
Corporate bonds
Energy	22,516		157		228		22,445
Industrials	33,214		200		427		32,987
Consumer goods and services	31,044		217		291		30,970
Health care	12,170		93		37		12,226
Technology, media and telecommunications	15,447		74		265		15,256
Financial services	55,489		226		1,203		54,512
Mortgage-backed securities	8,763		71		152		8,682
Collateralized mortgage obligations
Government national mortgage association	74,000		280		2,086		72,194
Federal home loan mortgage corporation	56,578		73		1,822		54,829
Federal national mortgage association	47,104		142		1,100		46,146
Asset-backed securities	3,196		318		45		3,469
Total Available-for-Sale Fixed Maturities	$	1,577,448	$	11,219	$	24,671	$	1,563,996



December 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	34		—		—		34
Total Held-to-Maturity Fixed Maturities	$	184	$	—	$	—	$	184
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	$	17,073	$	4	$	186	$	16,891
U.S. government agency	121,574		1,311		717		122,168
States, municipalities and political subdivisions
General obligations:
Midwest	107,689		2,446		439		109,696
Northeast	47,477		1,174		10		48,641
South	139,870		2,462		813		141,519
West	111,123		2,351		463		113,011
Special revenue:
Midwest	155,475		3,620		351		158,744
Northeast	79,028		1,351		619		79,760
South	260,145		5,218		1,851		263,512
West	156,576		2,929		1,198		158,307
Foreign bonds	51,361		1,441		49		52,753
Public utilities	206,028		3,386		270		209,144
Corporate bonds
Energy	93,191		1,972		110		95,053
Industrials	218,067		3,881		241		221,707
Consumer goods and services	183,253		3,498		494		186,257
Health care	74,125		1,312		29		75,408
Technology, media and telecommunications	146,853		2,376		250		148,979
Financial services	277,824		5,769		442		283,151
Mortgage-backed securities	13,828		101		238		13,691
Collateralized mortgage obligations
Government national mortgage association	157,836		1,921		2,274		157,483
Federal home loan mortgage corporation	201,320		1,879		4,047		199,152
Federal national mortgage association	104,903		1,703		1,174		105,432
Asset-backed securities	4,282		362		8		4,636
Total Available-for-Sale Fixed Maturities	$	2,928,901	$	52,467	$	16,273	$	2,965,095
Equity securities:
Common stocks



Public utilities	$	6,394	$	16,075	$	30	$	22,439
Energy	6,514		8,171		120		14,565
Industrials	13,117		53,522		120		66,519
Consumer goods and services	10,110		15,742		164		25,688
Health care	7,763		32,340		—		40,103
Technology, media and telecommunications	6,067		11,556		115		17,508
Financial services	11,529		104,985		67		116,447
Nonredeemable preferred stocks	992		305		—		1,297
Total Available-for-Sale Equity Securities	$	62,486	$	242,696	$	616	$	304,566
Total Available-for-Sale Securities	$	2,991,387	$	295,163	$	16,889	$	3,269,661

The following table is 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 for continuing and discontinued operations by investment type at March 31, 2018 and December 31, 2017:



March 31, 2018
Type of Investment	Cost or Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Fair Value
HELD-TO-MATURITY
Fixed maturities:
Continuing operations	$	150	$	—	$	—	$	150
Discontinued operations	—		—		—		—
Total Held-to-Maturity Fixed Maturities	$	150	$	—	$	—	150
AVAILABLE-FOR-SALE
Fixed maturities:
Continuing operations	$	1,577,448	$	11,219	$	24,671	$	1,563,996
Discontinued operations	—		—		—		—
Total Available-for-Sale Fixed Maturities	$	1,577,448	$	11,219	$	24,671	$	1,563,996

Note: The sale of our life insurance business was completed on March 30, 2018.



December 31, 2017
Type of Investment	Cost or Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Fair Value
HELD-TO-MATURITY
Fixed maturities:
Continuing operations	$	150	$	—	$	—	$	150
Discontinued operations	34		—		—		34
Total Held-to-Maturity Fixed Maturities	$	184	$	—	$	—	$	184
AVAILABLE-FOR-SALE
Fixed maturities:
Continuing operations	$	1,516,610	$	27,412	$	8,952	$	1,535,070
Discontinued operations	1,412,291		25,055		7,321		1,430,025
Total Available-for-Sale Fixed Maturities	2,928,901		52,467		16,273		2,965,095
Equity securities:
Continuing operations	$	57,387	$	224,065	$	539	$	280,913
Discontinued operations	5,099		18,631		77		23,653
Total Available-for-Sale Equity Securities	62,486		242,696		616		304,566
Total Available-for-Sale Securities	$	2,991,387	$	295,163	$	16,889	$	3,269,661

Maturities

The amortized cost and fair value of held-to-maturity, available-for-sale and trading fixed maturity securities at March 31, 2018, by contractual maturity, are shown in the following tables. The table below includes investments from continuing operations. 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.



Maturities
	Held-To-Maturity				Available-For-Sale				Trading
March 31, 2018	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	—	$	—	$	48,086	$	48,368	$	2,359	$	2,629
Due after one year through five years	150		150		187,837		189,107		8,750		10,497
Due after five years through 10 years	—		—		447,086		447,598		1,100		965
Due after 10 years	—		—		704,798		693,603		1,020		1,288
Asset-backed securities	—		—		3,196		3,469		—		—
Mortgage-backed securities	—		—		8,763		8,682		—		—
Collateralized mortgage obligations	—		—		177,682		173,169		—		—
	$	150	$	150	$	1,577,448	$	1,563,996	$	13,229	$	15,379

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,
	2018			2017
Net realized investment gains (losses) from continuing operations:
Fixed maturities:
Available-for-sale	$	4		$	424
Trading securities
Change in fair value	(111		)	371
Sales	556			57
Equity securities
Change in fair value	(9,188		)	111
Sales	875			1,286
Total net realized investment gains (losses) from continuing operations	$	(7,864	)	$	2,249
Total net realized investment gains (losses) from discontinued operations	(1,057		)	1,705
Total net realized investment gains (losses)	$	(8,921	)	$	3,954

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



	Three Months Ended March 31,
	2018		2017
Proceeds from sales	$	—	$	1,095
Gross realized gains	—		1,046
Gross realized losses	—		—

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



	Three Months Ended March 31,
	2018		2017
Proceeds from sales	$	—	$	3,964
Gross realized gains	—		1,254
Gross realized losses	—		(78		)

Note: The sale of our life insurance business was completed on March 30, 2018.

There were no sales of held-to-maturity securities during the three-month periods ended March 31, 2018 and 2017.

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 $15,379 and $16,842 at March 31, 2018 and December 31, 2017, 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 $1,499 at March 31, 2018.

Unrealized Appreciation

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



	Three Months Ended March 31,
	2018			2017
Change in net unrealized investment appreciation
Available-for-sale fixed maturities	$	(59,126	)	$	7,043
Available-for-sale equity securities	—			5,795
Deferred policy acquisition costs	7,274			(1,277		)
Income tax effect	10,890			(4,046		)
Net unrealized investment depreciation of discontinued operations, sold	6,714			—
Cumulative change in accounting principles	(191,244		)	—
Total change in net unrealized investment appreciation, net of tax	$	(225,492	)	$	7,515

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 on a consolidated basis, including both continuing and discontinued operations at March 31, 2018 and December 31, 2017. 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, 2018, 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 determined that these losses did not warrant the recognition of an OTTI charge at March 31, 2018 or at March 31, 2017. 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 our cost basis or the securities mature.




March 31, 2018	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	5	$	10,263	$	141	1	$	4,711	$	129	$	14,974	$	270
U.S. government agency	15	81,651		1,232		2	7,675		324		89,326		1,556
States, municipalities and political subdivisions
General obligations
Midwest	12	15,917		144		3	19,209		916		35,126		1,060
Northeast	4	13,214		94		1	3,546		102		16,760		196
South	18	38,686		466		11	28,716		1,527		67,402		1,993
West	13	31,285		406		8	25,021		1,110		56,306		1,516
Special revenue
Midwest	20	37,637		334		7	18,561		854		56,198		1,188
Northeast	4	12,466		162		11	27,722		1,281		40,188		1,443
South	24	50,787		866		27	67,940		3,538		118,727		4,404
West	16	30,075		331		21	52,243		2,426		82,318		2,757
Public utilities	13	33,171		632		—	—		—		33,171		632
Corporate bonds
Energy	5	10,567		228		—	—		—		10,567		228
Industrials	6	20,349		427		—	—		—		20,349		427
Consumer goods and services	5	15,823		291		—	—		—		15,823		291
Health care	2	3,694		37		—	—		—		3,694		37
Technology, media and telecommunications	3	9,745		265		—	—		—		9,745		265
Financial services	13	34,617		977		1	5,374		226		39,991		1,203
Mortgage-backed securities	16	2,828		70		10	2,123		82		4,951		152
Collateralized mortgage obligations
Government national mortgage association	20	47,898		1,351		6	12,087		735		59,985		2,086
Federal home loan mortgage corporation	13	35,124		1,050		4	12,590		772		47,714		1,822
Federal national mortgage association	13	33,515		722		1	6,963		378		40,478		1,100
Asset-backed securities	1	2,837		45		—	—		—		2,837		45
Total Available-for-Sale Fixed Maturities	241	$	572,149	$	10,271	114	$	294,481	$	14,400	$	866,630	$	24,671




December 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	5	$	10,370	$	67	2	$	5,765	$	119	$	16,135	$	186
U.S. government agency	11	64,842		390		5	19,372		327		84,214		717
States, municipalities and political subdivisions
General obligations
Midwest	2	2,177		8		3	19,729		431		21,906		439
Northeast	—	—		—		1	3,644		10		3,644		10
South	3	7,959		32		11	29,545		781		37,504		813
West	2	5,944		18		8	25,755		445		31,699		463
Special revenue
Midwest	2	3,486		15		7	19,130		336		22,616		351
Northeast	1	4,471		37		11	28,476		582		32,947		619
South	8	7,749		107		27	69,917		1,744		77,666		1,851
West	3	5,424		16		22	56,753		1,182		62,177		1,198
Foreign bonds	1	857		49		—	—		—		857		49
Public utilities	8	19,186		79		5	8,446		191		27,632		270
Corporate bonds
Energy	1	2,236		13		1	1,606		97		3,842		110
Industrials	10	27,773		146		2	4,275		95		32,048		241
Consumer goods and services	14	32,781		248		3	6,813		246		39,594		494
Health care	4	9,947		29		—	—		—		9,947		29
Technology, media and telecommunications	12	35,319		122		3	10,413		128		45,732		250
Financial services	22	50,144		256		4	11,389		186		61,533		442
Mortgage-backed securities	10	2,458		18		10	6,641		220		9,099		238
Collateralized mortgage obligations
Government national mortgage association	20	49,764		629		17	46,969		1,645		96,733		2,274
Federal home loan mortgage corporation	11	37,543		577		20	75,679		3,470		113,222		4,047
Federal national mortgage association	11	31,958		342		11	20,123		832		52,081		1,174
Asset-backed securities	1	992		8		—	—		—		992		8
Total Available-for-Sale Fixed Maturities	162	$	413,380	$	3,206	173	$	470,440	$	13,067	$	883,820	$	16,273
Equity securities:
Common stocks
Public utilities	—	$	—	$	—	1	$	278	$	30	$	278	$	30
Energy	2	528		120		—	—		—		528		120
Industrials	1	99		13		5	193		107		292		120
Consumer goods and services	—	—		—		2	151		164		151		164
Technology, media and telecommunications	2	466		95		1	4		20		470		115
Financial services	2	193		55		1	9		12		202		67
Total Available-for-Sale Equity Securities	7	$	1,286	$	283	10	$	635	$	333	$	1,921	$	616
Total Available-for-Sale Securities	169	$	414,666	$	3,489	183	$	471,075	$	13,400	$	885,741	$	16,889

The tables on the following pages are a reconciliation for continuing and discontinued operations of our total fixed maturity and equity securities that were in an unrealized loss position at March 31, 2018 and December 31, 2017. The sale of our life insurance business was completed on March 30, 2018. The securities are presented by the length of time they have been continuously in an unrealized loss position:




March 31, 2018	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:
Continuing operations	241	$	572,149	$	10,271	114	$	294,481	$	14,400	$	866,630	$	24,671
Discontinued operations	—	—		—		—	—		—		—		—
Total Available-for-Sale Fixed Maturities	241	$	572,149	$	10,271	114	$	294,481	$	14,400	$	866,630	$	24,671

Note: The sale of our life insurance business was completed on March 30, 2018.




December 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:
Continuing operations	88	$	232,489	$	1,791	112	$	302,815	$	7,161	$	535,304	$	8,952
Discontinued operations	74	180,891		1,415		61	167,625		5,906		348,516		7,321
Total Available-for-Sale Fixed Maturities	162	$	413,380	$	3,206	173	$	470,440	$	13,067	$	883,820	$	16,273
Equity securities:
Continuing operations	5	$	1,129	$	236	6	$	385	$	303	$	1,514	$	539
Discontinued operations	2	157		47		4	250		30		407		77
Total Available-for-Sale Equity Securities	7	$	1,286	$	283	10	$	635	$	333	$	1,921	$	616
Total Available-for-Sale Securities	169	$	414,666	$	3,489	183	$	471,075	$	13,400	$	885,741	$	16,889