Securities in an Unrealized Loss Position

The following table summarizes all securities in an unrealized loss position at March 31, 2013 and December 31, 2012 by the length of time those securities have been continuously in an unrealized loss position:



	Less Than 12 Months				12 Months or Greater				Total
(In thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
March 31, 2013
U.S. government and agency	$	24,203	$	58	$	—	$	—	$	24,203	$	58
State and municipal	133,592		1,830		100,664		7,389		234,256		9,219
Mortgage-backed securities	451,452		4,235		44,419		3,041		495,871		7,276
Corporate	348,050		2,425		66,309		7,955		414,359		10,380
Foreign	91,803		309		3,221		50		95,024		359
Fixed maturity securities	1,049,100		8,857		214,613		18,435		1,263,713		27,292
Common stocks	31,119		1,342		—		—		31,119		1,342
Preferred stocks	386		235		24,324		1,350		24,710		1,585
Equity securities	31,505		1,577		24,324		1,350		55,829		2,927
Total	$	1,080,605	$	10,434	$	238,937	$	19,785	$	1,319,542	$	30,219

December 31, 2012
U.S. government and agency	$	69,551	$	1,660	$	—	$	—	$	69,551	$	1,660
State and municipal	152,694		1,639		135,967		8,054		288,661		9,693
Mortgage-backed securities	484,731		3,629		58,292		4,571		543,023		8,200
Corporate	371,781		2,964		70,537		9,119		442,318		12,083
Foreign	95,623		996		11,210		28		106,833		1,024
Fixed maturity securities	1,174,380		10,888		276,006		21,772		1,450,386		32,660
Common stocks	46,725		707		—		—		46,725		707
Preferred stocks	—		—		39,812		1,651		39,812		1,651
Equity securities	46,725		707		39,812		1,651		86,537		2,358
Total	$	1,221,105	$	11,595	$	315,818	$	23,423	$	1,536,923	$	35,018

Fixed Maturity Securities – A summary of the Company’s non-investment grade fixed maturity securities that were in an unrealized loss position at March 31, 2013 is presented in the table below.



($ in thousands)	Number of Securities	Aggregate Fair Value			Gross Unrealized Loss
Unrealized loss greater than $5 million:	—	$	—	—	$	—
Unrealized loss less than $5 million:
Mortgage-backed securities	12	54,367			2,925
Corporate	9	28,242			3,172
State and municipal	2	24,654			1,264
Foreign	1	11,513			7
Total	24	$	118,776		$	7,368

For OTTI of fixed maturity securities that management does not intend to sell or, more likely than not, would not be required to sell, the portion of the decline in value considered to be due to credit factors is recognized in earnings and the portion of the decline in value considered to be due to non-credit factors is recognized in other comprehensive income. For the three months ended March 31, 2013 and 2012, there were no changes in the portion of impairments recognized in earnings for those securities that have been impaired due to both credit factors and non-credit factors.

The Company has evaluated its fixed maturity securities in an unrealized loss position and believes the unrealized losses are due primarily to temporary market and sector-related factors rather than to issuer-specific factors. None of these securities are delinquent or in default under financial covenants. Based on its assessment of these issuers, the Company expects them to continue to meet their contractual payment obligations as they become due and does not consider any of these securities to be OTTI.