Investments (Tables)

9 Months Ended

Sep. 30, 2013

Gross Unrealized Gains and Losses and Amortized Cost and Fair Value of Investments Classified as Held-to-maturity

The gross unrealized gains and losses on, and the amortized cost and fair value of, those investments classified as held-to-maturity at September 30, 2013 are summarized as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
States and political subdivisions	$	388,694	$	20,250	$	(1,362	)	$	407,582
Corporate bonds		71,126		965		(19	)		72,072
Commercial mortgage-backed securities		51,414		3,861		—			55,275
U.S. agency-based mortgage-backed securities		23,876		1,966		—			25,842
U.S. Treasury securities and obligations of U.S. government agencies		11,522		1,130		—			12,652
Asset-backed securities		3,521		216		(171	)		3,566
Totals	$	550,153	$	28,388	$	(1,552	)	$	576,989

The gross unrealized gains and losses on, and the amortized cost and fair value of, those investments classified as held-to-maturity at December 31, 2012 are summarized as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
States and political subdivisions	$	400,687	$	31,387	$	(106	)	$	431,968
Corporate bonds		82,824		1,565		(12	)		84,377
Commercial mortgage-backed securities		51,529		6,433		—			57,962
U.S. agency-based mortgage-backed securities		32,984		3,063		(5	)		36,042
U.S. Treasury securities and obligations of U.S. Government agencies		11,034		1,721		—			12,755
Asset-backed securities		4,229		192		(176	)		4,245
Totals	$	583,287	$	44,361	$	(299	)	$	627,349

Gross Unrealized Gains and Losses and Cost or Amortized Cost and Fair Value of Investments Classified as Available-for-sale

The gross unrealized gains and losses on, and the cost or amortized cost and fair value of, those investments classified as available-for-sale at September 30, 2013 are summarized as follows:

	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
Fixed maturity:
States and political subdivisions	$	133,239	$	1,694	$	(4,375	)	$	130,558
Corporate bonds		63,876		471		(245	)		64,102
U.S. agency-based mortgage-backed securities		10,082		—		(2,041	)		8,041
Total fixed maturity		207,197		2,165		(6,661	)		202,701
Other investments		10,000		271		—			10,271
Equity securities		11,987		600		(327	)		12,260
Totals	$	229,184	$	3,036	$	(6,988	)	$	225,232

The gross unrealized gains and losses on, and the cost or amortized cost and fair value of, those investments classified as available-for-sale at December 31, 2012 are summarized as follows:

	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
Fixed maturity:
States and political subdivisions	$	93,362	$	5,022	$	(142	)	$	98,242
Corporate bonds		39,211		623		(24	)		39,810
U.S. agency-based mortgage-backed securities		11,941		5		(859	)		11,087
Total fixed maturity		144,514		5,650		(1,025	)		149,139
Equity securities		7,000		451		(685	)		6,766
Totals	$	151,514	$	6,101	$	(1,710	)	$	155,905

Investment Securities Continuous Unrealized Loss Position

The following table summarizes, as of September 30, 2013, gross unrealized losses on a total of 158 securities that were at a loss for either less than twelve months or twelve months or greater:

	As of September 30, 2013
	Less Than 12 Months				12 Months or Greater				Total
	Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses
	(in thousands)
Held-to-Maturity
Fixed maturity securities:
Corporate bonds	$	16,397	$	17	$	2,271	$	2	$	18,668	$	19
States and political subdivisions		39,698		1,125		5,028		237		44,726		1,362
Asset-backed securities		—		—		1,962		171		1,962		171
Total held-to-maturity securities		56,095		1,142		9,261		410		65,356		1,552
Available-for-Sale
Fixed maturity securities:
Corporate bonds	$	18,101	$	245	$	—	$	—	$	18,101	$	245
States and political subdivisions		85,605		4,375		—		—		85,605		4,375
U.S. agency-based mortgage-backed securities		2,938		700		5,102		1,341		8,040		2,041
Equity securities		5,883		327		—		—		5,883		327
Total available-for-sale securities		112,527		5,647		5,102		1,341		117,629		6,988
Total	$	168,622	$	6,789	$	14,363	$	1,751	$	182,985	$	8,540

The following table summarizes, as of December 31, 2012, gross unrealized losses on a total of 49 securities that were at a loss for either less than twelve months or twelve months or greater:

	As of December 31, 2012
	Less Than 12 Months				12 Months or Greater				Total
	Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses
	(in thousands)
Held-to-Maturity
Fixed maturity securities:
Corporate bonds	$	10,734	$	12	$	—	$	—	$	10,734	$	12
State and political subdivisions		11,913		106		—		—		11,913		106
U.S. agency-based mortgage-backed securities		117		—		68		5		185		5
Asset-backed securities		—		—		2,277		176		2,277		176
Total held-to-maturity securities		22,764		118		2,345		181		25,109		299
Available-for-Sale
Fixed maturity securities:
Corporate bonds	$	6,411	$	24	$	—	$	—	$	6,411	$	24
States and political subdivisions		6,281		142		—		—		6,281		142
U.S. agency-based mortgage-backed securities		10,919		859		—		—		10,919		859
Equity securities		4,186		685		—		—		4,186		685
Total available-for-sale securities		27,797		1,710		—		—		27,797		1,710
Total	$	50,561	$	1,828	$	2,345	$	181	$	52,906	$	2,009

Total held-to-maturity securities [Member]

Summary of Amortized Cost and Fair Value of Investments in Fixed Maturity Securities, by Contractual Maturity

A summary of the cost and fair value of investments in fixed maturity securities, classified as held-to-maturity at September 30, 2013, by contractual maturity, is as follows:

Remaining Time to Maturity	Amortized Cost Basis		Fair Value
	(in thousands)
Less than one year	$	63,140	$	63,427
One to five years		145,838		153,601
Five to ten years		130,159		140,059
More than ten years		132,205		135,219
U.S. agency-based mortgage-backed securities		23,876		25,842
Commercial mortgage-backed securities		51,414		55,275
Asset-backed securities		3,521		3,566
Total	$	550,153	$	576,989

Total available-for-sale securities [Member]

Summary of Amortized Cost and Fair Value of Investments in Fixed Maturity Securities, by Contractual Maturity

A summary of cost and fair value of investments in fixed maturity securities, classified as available-for-sale at September 30, 2013, by contractual maturity, is as follows:

Remaining Time to Maturity	Amortized Cost Basis		Fair Value
	(in thousands)
Less than one year	$	28,681	$	28,802
One to five years		28,734		28,993
Five to ten years		18,162		18,357
More than ten years		121,538		118,508
U.S. agency-based mortgage-backed securities		10,082		8,041
Total	$	207,197	$	202,701