Securities in an Unrealized Loss Position

The following table summarizes all securities in an unrealized loss position at December 31, 2015 and 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
December 31, 2015
U.S. government and government agency	$	101,660	$	487	$	64,500	$	1,846	$	166,160	$	2,333
State and municipal	501,952		4,404		106,681		1,865		608,633		6,269
Mortgage-backed securities	381,986		3,639		184,807		7,669		566,793		11,308
Asset-backed securities	1,091,078		7,703		190,467		6,711		1,281,545		14,414
Corporate	1,232,940		35,406		76,797		8,987		1,309,737		44,393
Foreign government	169,190		8,822		19,528		3,867		188,718		12,689
Fixed maturity securities	3,478,806		60,461		642,780		30,945		4,121,586		91,406
Common stocks	18,641		18,005		7,829		1,184		26,470		19,189
Preferred stocks	—		—		22,320		3,353		22,320		3,353
Equity securities available for sale	18,641		18,005		30,149		4,537		48,790		22,542
Total	$	3,497,447	$	78,466	$	672,929	$	35,482	$	4,170,376	$	113,948

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
Asset-backed securities	1,186,097		6,217		30,818		5,757		1,216,915		11,974
Corporate	400,141		2,480		183,810		10,327		583,951		12,807
Foreign government	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 available for sale	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 December 31, 2015 is presented in the table below:



(Dollars in thousands)	Number of Securities	Aggregate Fair Value		Gross Unrealized Loss
Mortgage-backed securities	8	$	23,370	$	1,790
Asset-backed securities	7	19,535		264
Corporate	12	128,716		6,717
Foreign government	1	13,956		3,766
Total	28	$	185,577	$	12,537

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 year ended December 31, 2015, OTTI for fixed maturities recognized in earnings were $9.0 million, all of which was considered due to credit factors. There were no OTTI of fixed maturity securities for the year ended December 31, 2014.

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 on 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 December 31, 2015, there was one preferred stock in an unrealized loss position, with an aggregate fair value of $22.3 million and a gross unrealized loss of $3.4 million. The preferred stock is rated investment grade. Management believes the unrealized loss is due primarily to market and sector related factors and does not consider it to be OTTI. For the year ended December 31, 2015, OTTI for preferred stocks were $13.4 million. There were no OTTI of preferred stocks for the year ended December 31, 2014.

Common Stocks – At December 31, 2015, there were two common stocks in an unrealized loss position, with an aggregate fair value of $26.5 million and a gross unrealized loss of $19.2 million. Based on management's view on the underlying securities, the Company does not consider the common stocks to be OTTI. For the year ended December 31, 2015, OTTI for common stocks were $10.9 million. There were no OTTI of common stocks for the year ended December 31, 2014.

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 December 31, 2015 and 2014, respectively.