Summary of Investments (Tables)

9 Months Ended

Sep. 30, 2018

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 September 30, 2018 and December 31, 2017, is as follows:



September 30, 2018
Type of Investment	Cost or Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Fair Value
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	$	27,195	$	—	$	354	$	26,841
U.S. government agency	212,542		310		5,862		206,990
States, municipalities and political subdivisions
General obligations:
Midwest	99,023		574		1,359		98,238
Northeast	37,389		251		289		37,351
South	115,440		333		2,559		113,214
West	107,993		643		1,998		106,638
Special revenue:
Midwest	140,245		817		1,735		139,327
Northeast	63,758		240		1,901		62,097
South	241,007		611		6,177		235,441
West	145,072		737		3,411		142,398
Foreign bonds	9,722		49		24		9,747
Public utilities	54,606		129		1,191		53,544
Corporate bonds
Energy	26,929		77		320		26,686
Industrials	56,127		103		699		55,531
Consumer goods and services	52,398		42		763		51,677
Health care	18,062		58		134		17,986
Technology, media and telecommunications	26,622		34		534		26,122
Financial services	77,788		164		1,888		76,064
Mortgage-backed securities	7,985		13		260		7,738
Collateralized mortgage obligations
Government national mortgage association	78,797		121		3,602		75,316
Federal home loan mortgage corporation	108,666		7		2,957		105,716
Federal national mortgage association	53,776		2		1,924		51,854
Asset-backed securities	3,238		318		41		3,515
Total Available-for-Sale Fixed Maturities	$	1,764,380	$	5,633	$	39,982	$	1,730,031



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 September 30, 2018 and December 31, 2017:



September 30, 2018
Type of Investment	Cost or Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Fair Value
AVAILABLE-FOR-SALE
Fixed maturities:
Continuing operations	$	1,764,380	$	5,633	$	39,982	$	1,730,031
Discontinued operations	—		—		—		—
Total Available-for-Sale Fixed Maturities	$	1,764,380	$	5,633	$	39,982	$	1,730,031

Note: The sale of the 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 September 30, 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
	Available-For-Sale				Trading
September 30, 2018	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	48,539	$	48,703	$	3,347	$	3,431
Due after one year through five years	212,322		211,709		6,835		8,797
Due after five years through 10 years	518,809		513,464		—		—
Due after 10 years	732,248		712,016		1,865		2,171
Asset-backed securities	3,238		3,515		—		—
Mortgage-backed securities	7,985		7,738		—		—
Collateralized mortgage obligations	241,239		232,886		—		—
	$	1,764,380	$	1,730,031	$	12,047	$	14,399

Net Realized Investment Gains and Losses

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



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Net realized investment gains (losses) from continuing operations:
Fixed maturities:
Available-for-sale	$	22		$	118		$	(171	)	$	645
Trading securities
Change in fair value	351			(43		)	92			504
Sales	171			72			1,076			117
Equity securities	13,944			(80		)	6,924			1,842
Real estate	(517		)	—			(517		)	289
Total net realized investment gains from continuing operations	$	13,971		$	67		$	7,404		$	3,397
Total net realized investment gains (losses) from discontinued operations	—			296			(1,057		)	3,600
Total net realized investment gains	$	13,971		$	363		$	6,347		$	6,997

Proceeds and Gross Realized Gains and Losses

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 September 30,					Nine Months Ended September 30,
	2018			2017		2018			2017
Proceeds from sales	$	105,871		$	2,293	$	129,865		$	3,388
Gross realized gains	—			—		140			1,046
Gross realized losses	(94		)	—		(401		)	—

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 September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Proceeds from sales	$	—	$	1,844	$	—	$	5,807
Gross realized gains	—		—		—		1,254
Gross realized losses	—		—		—		(78		)

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

Unrealized Investment Appreciation

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



	Nine Months Ended September 30,
	2018			2017
Change in net unrealized investment appreciation
Available-for-sale fixed maturities	$	(80,023	)	$	34,837
Available-for-sale equity securities	—			27,559
Deferred policy acquisition costs	7,274			(3,582		)
Income tax effect	15,279			(20,584		)
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	$	(242,000	)	$	38,230

Investments in Unrealized Loss Position




September 30, 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	$	18,989	$	107	5	$	7,852	$	247	$	26,841	$	354
U.S. government agency	34	158,156		4,096		7	34,516		1,766		192,672		5,862
States, municipalities and political subdivisions
General obligations
Midwest	17	26,098		234		5	21,109		1,125		47,207		1,359
Northeast	5	14,211		152		1	3,500		137		17,711		289
South	23	46,353		700		12	29,344		1,859		75,697		2,559
West	21	47,340		680		8	24,676		1,318		72,016		1,998
Special revenue
Midwest	31	56,940		672		8	20,569		1,063		77,509		1,735
Northeast	7	18,451		336		11	27,327		1,565		45,778		1,901
South	40	102,910		1,578		32	70,521		4,599		173,431		6,177
West	19	37,030		573		23	52,433		2,838		89,463		3,411
Foreign bonds	1	2,973		24		—	—		—		2,973		24
Public utilities	19	39,011		916		1	4,860		275		43,871		1,191
Corporate bonds
Energy	10	17,219		320		—	—		—		17,219		320
Industrials	16	39,427		513		1	3,860		186		43,287		699
Consumer goods and services	18	40,446		737		1	974		26		41,420		763
Health care	5	11,515		134		—	—		—		11,515		134
Technology, media and telecommunications	9	20,569		406		1	1,833		128		22,402		534
Financial services	24	54,884		1,445		2	6,154		443		61,038		1,888
Mortgage-backed securities	32	2,355		55		13	3,602		205		5,957		260
Collateralized mortgage obligations
Government national mortgage association	11	27,027		856		18	39,403		2,746		66,430		3,602
Federal home loan mortgage corporation	21	77,751		967		11	27,390		1,990		105,141		2,957
Federal national mortgage association	16	29,346		684		8	22,072		1,240		51,418		1,924
Asset-backed securities	1	2,882		41		—	—		—		2,882		41
Total Available-for-Sale Fixed Maturities	385	$	891,883	$	16,226	168	$	401,995	$	23,756	$	1,293,878	$	39,982




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 September 30, 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:




September 30, 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	385	$	891,883	$	16,226	168	$	401,995	$	23,756	$	1,293,878	$	39,982
Discontinued operations	—	—		—		—	—		—		—		—
Total Available-for-Sale Fixed Maturities	385	$	891,883	$	16,226	168	$	401,995	$	23,756	$	1,293,878	$	39,982

Note: The sale of the 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