Securities in an Unrealized Loss Position

The following tables summarize all securities in an unrealized loss position at June 30, 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
June 30, 2015
U.S. government and government agency	$	72,300	$	1,656	$	73,593	$	1,899	$	145,893	$	3,555
State and municipal	873,578		12,783		108,782		3,278		982,360		16,061
Mortgage-backed securities	222,473		2,903		212,426		7,704		434,899		10,607
Corporate	1,669,868		18,973		159,708		14,455		1,829,576		33,428
Foreign	131,227		4,036		48,528		12,896		179,755		16,932
Fixed maturity securities	2,969,446		40,351		603,037		40,232		3,572,483		80,583
Common stocks	47,359		10,669		—		—		47,359		10,669
Preferred stocks	13,584		1,267		22,658		3,016		36,242		4,283
Equity securities	60,943		11,936		22,658		3,016		83,601		14,952
Total	$	3,030,389	$	52,287	$	625,695	$	43,248	$	3,656,084	$	95,535

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 June 30, 2015 is presented in the table below:



($ in thousands)	Number of Securities	Aggregate Fair Value		Gross Unrealized Loss
Mortgage-backed securities	7	$	24,150	$	1,605
Corporate	13	90,216		2,486
Total	20	$	114,366	$	4,091

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 six months ended June 30, 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 June 30, 2015, there were eight equity securities in an unrealized loss position, with an aggregate fair value of $83.6 million and a gross unrealized loss of $15 million. Three of these equity securities are preferred stocks that are rated non-investment grade with an aggregate fair value of $3.6 million and a gross unrealized loss of $1.2 million. 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 June 30, 2015 and December 31, 2014, respectively.