Securities in an Unrealized Loss Position

The following tables summarize all securities in an unrealized loss position at March 31, 2015 and December 31, 2014 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, 2015
U.S. government and government agency	$	57,281	$	340	$	71,103	$	1,489	$	128,384	$	1,829
State and municipal	310,510		1,753		112,892		2,693		423,402		4,446
Mortgage-backed securities	76,098		219		225,870		6,534		301,968		6,753
Corporate	1,013,347		5,917		172,712		13,859		1,186,059		19,776
Foreign	39,512		3,518		61,375		14,623		100,887		18,141
Fixed maturity securities	1,496,748		11,747		643,952		39,198		2,140,700		50,945
Common stocks	48,645		9,383		—		—		48,645		9,383
Preferred stocks	4,017		834		22,637		3,036		26,654		3,870
Equity securities	52,662		10,217		22,637		3,036		75,299		13,253
Total	$	1,549,410	$	21,964	$	666,589	$	42,234	$	2,215,999	$	64,198

December 31, 2014
U.S. government and government agency	$	84,750	$	522	$	84,850	$	2,635	$	169,600	$	3,157
State and municipal	158,594		631		150,284		3,389		308,878		4,020
Mortgage-backed securities	75,739		332		312,922		9,169		388,661		9,501
Corporate	1,586,238		8,697		214,628		16,084		1,800,866		24,781
Foreign	76,471		3,907		85,025		14,158		161,496		18,065
Fixed maturity securities	1,981,792		14,089		847,709		45,435		2,829,501		59,524
Common stocks	15,929		5,453		—		—		15,929		5,453
Preferred stocks	27,126		1,139		22,648		3,026		49,774		4,165
Equity securities	43,055		6,592		22,648		3,026		65,703		9,618
Total	$	2,024,847	$	20,681	$	870,357	$	48,461	$	2,895,204	$	69,142

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, 2015 is presented in the table below:



($ in thousands)	Number of Securities	Aggregate Fair Value		Gross Unrealized Loss
Mortgage-backed securities	9	$	26,168	$	1,658
Corporate	5	2,965		420
Total	14	$	29,133	$	2,078

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, 2015 and 2014, 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.

Equity Securities – At March 31, 2015, there were seven equity securities in an unrealized loss position, with an aggregate fair value of $75.3 million and a gross unrealized loss of $13.2 million. Three of these equity securities are preferred stocks that are rated non-investment grade, and none are delinquent. Based upon management’s view of the underlying value of these securities, the Company does not consider these equity securities to be OTTI.

Loans Receivable – The Company monitors the performance of its loans receivable, including current market conditions for each loan and the ability to collect principal and interest. For loans where the Company determines it is probable that the contractual terms will not be met, an analysis is performed and a valuation reserve is established, if necessary, with a charge to earnings. Loans receivable are reported net of a valuation reserve of $2 million and $3 million at March 31, 2015 and December 31, 2014, respectively.