G. Debt

Debt consists of the following:

	March 31, 2013		December 31, 2012		March 31, 2012
	Carrying Value	Fair Value Level 2	Carrying Value	Fair Value Level 2	Carrying Value	Fair Value Level 2
(In thousands)
5.5% Senior notes	$99,000	$99,581	$99,000	$100,485	$99,000	$100,733
5.875% Senior notes	100,000	109,969	100,000	106,250	100,000	104,375
0% Subordinated debentures	17,688	19,635	17,366	19,638	65,300	66,774
Total	$216,688	$229,185	$216,366	$226,373	$264,300	$271,882

5.5% Senior notes

On May 15, 2003, the Company issued 10-year, $100 million senior notes, of which $99 million was outstanding at March 31, 2013, December 31, 2012 and March 31, 2012. The senior notes, due May 15, 2013, pay interest semi-annually at 5.5%.

5.875% Senior notes

On May 31, 2011, the Company issued 10-year, $100 million senior notes. The notes mature on June 1, 2021 and bear interest at 5.875% per annum, payable semi-annually on June 1 and December 1 of each year and commenced on December 1, 2011. Upon the occurrence of a change of control triggering event, as defined in the indenture, the Company would be required to offer to repurchase the notes at 101% of their principal amount.

Zero coupon Subordinated debentures due December 31, 2015

On December 31, 2010, the Company issued $86.4 million in par value of five year zero coupon subordinated debentures due December 31, 2015 ("Debentures") to its shareholders of record on December 15, 2010 through the declaration of a special dividend of $3.20 per share. The Debentures have a par value of $100 and are callable at the option of the Company, in whole or in part, at any time or from time to time, at a redemption price equal to 100% of the principal amount of the Debentures to be redeemed. During the three month periods ended March 31, 2013 and March 31, 2012, the Company repurchased 32 Debentures and 229 Debentures, respectively, having a face value of $3,200 and $22,900, respectively. The redemptions were accounted for as extinguishments of debt and resulted in a loss of Less than $1,000 and a loss of $1,000, respectively, which were included in net gain from investments on the condensed consolidated statements of income. The debt is being accreted to its face value using the effective rate on the date of issuance of 7.45%. At March 31, 2013, December 31, 2012 and March 31, 2012, the debt was recorded at its accreted value of $17.7 million, $17.4 million and $65.3 million, respectively.

The fair value of the Company's debt, which is a Level 2 valuation, is estimated based on either quoted market prices for the same or similar issues or on the current rates offered to the Company for debt of the same remaining maturities or using market standard models. Inputs in these standard models include credit rating, maturity and interest rate.

On May 30, 2012, the Securities and Exchange Commission ("SEC") declared effective the "shelf" registration statement filed by the Company. The "shelf" provides the Company with the flexibility of issuing any combination of senior and subordinated debt securities, convertible securities and common and preferred securities up to a total amount of $500 million and replaced the existing shelf registration which was due to expire in July 2012. As of March 31, 2013, $400 million is available on the shelf.