Securities in an Unrealized Loss Position

The following table summarizes all securities in an unrealized loss position at March 31, 2014 and December 31, 2013 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, 2014
U.S. government and government agency	$	306,133	$	8,835	$	4,300	$	342	$	310,433	$	9,177
State and municipal	415,060		8,233		96,482		3,011		511,542		11,244
Mortgage-backed securities	480,012		11,824		161,965		7,679		641,977		19,503
Corporate	964,728		9,508		137,535		11,049		1,102,263		20,557
Foreign	286,805		14,507		5,220		581		292,025		15,088
Fixed maturity securities	2,452,738		52,907		405,502		22,662		2,858,240		75,569
Common stocks	—		—		—		—		—		—
Preferred stocks	3,012		32		22,341		3,333		25,353		3,365
Equity securities	3,012		32		22,341		3,333		25,353		3,365
Total	$	2,455,750	$	52,939	$	427,843	$	25,995	$	2,883,593	$	78,934

December 31, 2013
U.S. government and government agency	$	260,882	$	7,927	$	2,163	$	55	$	263,045	$	7,982
State and municipal	899,613		24,503		87,345		5,334		986,958		29,837
Mortgage-backed securities	578,603		17,964		140,648		8,965		719,251		26,929
Corporate	1,013,373		17,066		105,074		13,034		1,118,447		30,100
Foreign	320,215		16,286		—		—		320,215		16,286
Fixed maturity securities	3,072,686		83,746		335,230		27,388		3,407,916		111,134
Common stocks	—		—		—		—		—		—
Preferred stocks	13,291		513		19,868		5,806		33,159		6,319
Equity securities	13,291		513		19,868		5,806		33,159		6,319
Total	$	3,085,977	$	84,259	$	355,098	$	33,194	$	3,441,075	$	117,453

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, 2014 is presented in the table below.



($ in thousands)	Number of Securities	Aggregate Fair Value		Gross Unrealized Loss
Mortgage-backed securities	9	$	40,109	$	2,512
Corporate	8	18,090		803
Foreign	3	21,278		2,343
Total	20	$	79,477	$	5,658

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, 2014 and 2013, 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.

Preferred Stocks – At March 31, 2014, there were two preferred stocks in an unrealized loss position, with an aggregate fair value of $25 million and a gross unrealized loss of $3 million. Based upon management’s view of the underlying value of these securities, the Company does not consider these preferred stocks to be OTTI.

Common Stocks – At March 31, 2014, the Company did not own any common stocks in an unrealized loss position.