Securities in an Unrealized Loss Position

The following tables summarize all securities in an unrealized loss position at March 31, 2016 and December 31, 2015 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, 2016
U.S. government and government agency	$	24,911	$	79	$	43,226	$	902	$	68,137	$	981
State and municipal	210,419		1,903		171,433		2,596		381,852		4,499
Mortgage-backed securities	135,022		1,748		155,445		4,416		290,467		6,164
Asset-backed securities	1,207,153		14,032		230,979		8,814		1,438,132		22,846
Corporate	362,296		25,162		79,582		10,998		441,878		36,160
Foreign	41,278		3,964		25,672		2,497		66,950		6,461
Fixed maturity securities	1,981,079		46,888		706,337		30,223		2,687,416		77,111
Common stocks	—		—		7,474		1,539		7,474		1,539
Preferred stocks	35,241		6,512		27,657		3,932		62,898		10,444
Equity securities available for sale	35,241		6,512		35,131		5,471		70,372		11,983
Total	$	2,016,320	$	53,400	$	741,468	$	35,694	$	2,757,788	$	89,094

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	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

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, 2016 is presented in the table below:



($ in thousands)	Number of Securities	Aggregate Fair Value		Gross Unrealized Loss
Mortgage-backed securities	12	$	35,540	$	1,866
Asset-backed securities	7	26,322		261
Corporate	15	92,666		10,780
Foreign government	5	22,414		3,011
Total	39	$	176,942	$	15,918

For OTTI of fixed maturity securities that management does not intend to sell or, to be required to sell, the portion of the decline in value that is considered to be due to credit factors recognized in earnings, and the portion of the decline in value that is considered to be due to non-credit factors is recognized in other comprehensive income.

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, 2016, there were five preferred stocks in an unrealized loss position, with an aggregate fair value of $62.9 million and a gross unrealized loss of $10.4 million. Based upon management’s view of the underlying value of these securities, the Company does not consider these equity securities to be OTTI.

Common Stocks - At March 31, 2016, there was one common stock in an unrealized loss position, with a fair value of $7.5 million and a gross unrealized loss of $1.5 million. Based on management's view of the underlying security, the Company does not consider the equity security 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 $3 million and $2 million at March 31, 2016 and December 31, 2015, respectively.