Securities in an Unrealized Loss Position

The following tables summarize all securities in an unrealized loss position at June 30, 2017 and December 31, 2016 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, 2017
U.S. government and government agency	$	115,584	$	935	$	30,925	$	1,200	$	146,509	$	2,135
State and municipal	860,362		10,961		112,597		1,468		972,959		12,429
Mortgage-backed securities	585,106		6,827		128,391		4,038		713,497		10,865
Asset-backed securities	1,424,602		6,921		75,179		3,692		1,499,781		10,613
Corporate	612,215		4,599		41,688		3,641		653,903		8,240
Foreign government	115,875		742		1,973		30		117,848		772
Fixed maturity securities	3,713,744		30,985		390,753		14,069		4,104,497		45,054
Common stocks	24,004		4,953		9,040		738		33,044		5,691
Preferred stocks	—		—		24,589		1,084		24,589		1,084
Equity securities available for sale	24,004		4,953		33,629		1,822		57,633		6,775
Total	$	3,737,748	$	35,938	$	424,382	$	15,891	$	4,162,130	$	51,829

December 31, 2016
U.S. government and government agency	$	112,709	$	1,252	$	35,450	$	1,341	$	148,159	$	2,593
State and municipal	1,562,614		35,553		133,034		4,885		1,695,648		40,438
Mortgage-backed securities	625,903		11,103		109,066		4,828		734,969		15,931
Asset-backed securities	1,010,836		5,340		201,693		6,601		1,212,529		11,941
Corporate	1,035,245		13,448		65,147		7,470		1,100,392		20,918
Foreign government	213,246		1,985		24,820		777		238,066		2,762
Fixed maturity securities	4,560,553		68,681		569,210		25,902		5,129,763		94,583
Common stocks	336		22		8,755		1,024		9,091		1,046
Preferred stocks	—		—		22,034		3,639		22,034		3,639
Equity securities available for sale	336		22		30,789		4,663		31,125		4,685
Total	$	4,560,889	$	68,703	$	599,999	$	30,565	$	5,160,888	$	99,268

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, 2017 is presented in the table below:



($ in thousands)	Number of Securities	Aggregate Fair Value		Gross Unrealized Loss
Foreign government	3	$	9,655	$	250
Mortgage-backed securities	6	6,239		215
Asset-backed securities	4	3,299		137
Corporate	2	2,922		232
Total	15	$	22,115	$	834

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 June 30, 2017, there was one preferred stock in an unrealized loss position, with a fair value of $24.6 million and a gross unrealized loss of $1.1 million. Based upon management’s view of the underlying value of the security, the Company does not consider the equity security to be OTTI. For six months ended June 30, 2017 and 2016, there was no OTTI for preferred stocks.

Common Stocks – At June 30, 2017, there were five common stocks in an unrealized loss position, with an aggregate fair value of $33.0 million and a gross unrealized loss of $5.7 million. Based on management's view of the underlying securities, the Company does not consider these equity securities to be OTTI. There was no OTTI of common stocks for the six months ended June 30, 2017. For the six months ended June 30, 2016, OTTI for common stocks was $18.1 million.