Securities in an Unrealized Loss Position

The following tables summarize all securities in an unrealized loss position at September 30, 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
September 30, 2016
U.S. government and government agency	$	54,550	$	279	$	39,092	$	652	$	93,642	$	931
State and municipal	217,215		1,095		138,082		1,490		355,297		2,585
Mortgage-backed securities	251,969		1,851		105,927		3,924		357,896		5,775
Asset-backed securities	918,983		5,718		214,436		6,356		1,133,419		12,074
Corporate	337,940		2,152		98,162		7,722		436,102		9,874
Foreign	52,233		640		30,842		1,850		83,075		2,490
Fixed maturity securities	1,832,890		11,735		626,541		21,994		2,459,431		33,729
Common stocks	18,112		779		8,116		1,662		26,228		2,441
Preferred stocks	46,135		8,199		24,845		829		70,980		9,028
Equity securities available for sale	64,247		8,978		32,961		2,491		97,208		11,469
Total	$	1,897,137	$	20,713	$	659,502	$	24,485	$	2,556,639	$	45,198

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 September 30, 2016 is presented in the table below:



($ in thousands)	Number of Securities	Aggregate Fair Value		Gross Unrealized Loss
Corporate	10	$	27,531	$	3,045
Mortgage-backed securities	11	23,921		1,229
Foreign government	4	23,001		1,101
Asset-backed securities	5	8,418		405
State and municipal	1	7,007		25
Total	31	$	89,878	$	5,805

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 is 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 September 30, 2016, there were three preferred stocks in an unrealized loss position, with an aggregate fair value of $71 million and a gross unrealized loss of $9 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 September 30, 2016, there were three common stocks in an unrealized loss position, with an aggregate fair value of $26 million and a gross unrealized loss of $2 million. Based on management's view of the underlying 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 $3 million and $2 million at September 30, 2016 and December 31, 2015, respectively.