Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2013

Balances Of Assets And Liabilities Measured At Fair Value On A Recurring Basis

The following tables present the balances of assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy.



	September 30, 2013
(dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Investments available-for-sale:
Fixed maturities:
U.S. Treasury securities and obligations of U.S. government agencies	$	—	$	1,244,128	$	—	$	1,244,128
Obligations of states, municipalities and political subdivisions	—		2,851,061		—		2,851,061
Foreign governments	—		1,423,684		—		1,423,684
Commercial mortgage-backed securities	—		390,709		—		390,709
Residential mortgage-backed securities	—		925,974		—		925,974
Asset-backed securities	—		215,876		—		215,876
Corporate bonds	—		3,261,507		—		3,261,507
Total fixed maturities	—		10,312,939		—		10,312,939
Equity securities:
Insurance, banks and other financial institutions	945,431		—		—		945,431
Industrial, consumer and all other	2,043,183		—		—		2,043,183
Total equity securities	2,988,614		—		—		2,988,614
Short-term investments	1,016,185		143,272		—		1,159,457
Total investments available-for-sale	$	4,004,799	$	10,456,211	$	—	$	14,461,010
Liabilities:
Derivative contracts	$	—	$	—	$	3,830	$	3,830



	December 31, 2012
(dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Investments available-for-sale:
Fixed maturities:
U.S. Treasury securities and obligations of U.S. government agencies	$	—	$	317,507	$	—	$	317,507
Obligations of states, municipalities and political subdivisions	—		2,831,562		—		2,831,562
Foreign governments	—		556,608		—		556,608
Residential mortgage-backed securities	—		215,377		—		215,377
Asset-backed securities	—		14,345		—		14,345
Corporate bonds	—		1,043,884		—		1,043,884
Total fixed maturities	—		4,979,283		—		4,979,283
Equity securities:
Insurance, banks and other financial institutions	898,067		—		—		898,067
Industrial, consumer and all other	1,508,884		—		—		1,508,884
Total equity securities	2,406,951		—		—		2,406,951
Short-term investments	888,758		84,572		—		973,330
Total investments available-for-sale	$	3,295,709	$	5,063,855	$	—	$	8,359,564
Liabilities:
Derivative contracts	$	—	$	—	$	12,690	$	12,690

Summary Of Changes In Level 3 Liabilities Measured At Fair Value On A Recurring Basis

The following table summarizes changes in Level 3 liabilities measured at fair value on a recurring basis.



	Quarter Ended September 30,						Nine Months Ended September 30,
(dollars in thousands)	2013			2012			2013			2012
Derivatives, beginning of period	$	5,490		$	17,130		$	12,690		$	29,331
Total gains included in:
Net income	(1,660		)	(1,480		)	(8,860		)	(13,681		)
Other comprehensive income	—			—			—			—
Transfers into Level 3	—			—			—			—
Transfers out of Level 3	—			—			—			—
Derivatives, end of period	$	3,830		$	15,650		$	3,830		$	15,650
Net unrealized gains included in net income relating to liabilities held at September 30, 2013 and 2012 ⁽¹⁾	$	1,660		$	1,480		$	8,860		$	13,681


⁽¹⁾	Included in net investment income in the consolidated statements of income and comprehensive income.

- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

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