Securities in an Unrealized Loss Position

The following tables summarize all securities in an unrealized loss position at September 30, 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
September 30, 2014
U.S. government and government agency	$	131,471	$	1,411	$	85,253	$	3,818	$	216,724	$	5,229
State and municipal	111,019		743		175,757		4,076		286,776		4,819
Mortgage-backed securities	182,774		1,481		295,503		12,811		478,277		14,292
Corporate	1,068,868		3,983		269,171		13,025		1,338,039		17,008
Foreign	82,459		3,154		120,708		10,053		203,167		13,207
Fixed maturity securities	1,576,591		10,772		946,392		43,783		2,522,983		54,555
Common stocks	10,813		531		—		—		10,813		531
Preferred stocks	3,005		40		22,535		3,139		25,540		3,179
Equity securities	13,818		571		22,535		3,139		36,353		3,710
Total	$	1,590,409	$	11,343	$	968,927	$	46,922	$	2,559,336	$	58,265

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 September 30, 2014 is presented in the table below.



($ in thousands)	Number of Securities	Aggregate Fair Value		Gross Unrealized Loss
Mortgage-backed securities	9	$	42,230	$	1,611
Corporate	9	27,494		647
Foreign	—	—		—
Total	18	$	69,724	$	2,258

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 nine months ended September 30, 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 September 30, 2014, there were two preferred stocks in an unrealized loss position, with an aggregate fair value of $26 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.