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Investments
 12 Months Ended
Dec. 31, 2014
Investments [Abstract]  
Investments
Investments

The following table presents gains (losses) due to changes in fair value of investments that are measured at fair value pursuant to application of the fair value option:
 
Year Ended December 31,
 
2014
 
2013
 
2012
 
(Amounts in thousands)
Fixed maturity securities
$
77,208

 
$
(100,703
)
 
$
36,317

Equity securities
(32,922
)
 
56,822

 
9,158

Short-term investments
(527
)
 
(156
)
 
34

Total
$
43,759

 
$
(44,037
)
 
$
45,509



A summary of net realized investment gains (losses) is as follows:
 
Year Ended December 31,
 
2014
 
2013
 
2012
 
(Amounts in thousands)
Net realized gains (losses) from investments and other assets and liabilities:
 
 
 
 
 
Fixed maturity securities
$
74,489

 
$
(95,225
)
 
$
47,707

Equity securities
8,715

 
80,910

 
16,679

Short-term investments
(2,470
)
 
(1,059
)
 
(686
)
Total return swap
(2,969
)
 
2,176

 
0

Options
3,419

 
1,776

 
2,680

Total
$
81,184

 
$
(11,422
)
 
$
66,380



Gross gains and losses realized on the sales of investments, excluding options, are shown below:
 
Year Ended December 31,
 
2014
 
2013
 
2012
 
(Amounts in thousands)
 
Gross
Realized
Gains
 
Gross
Realized
Losses
 
Net
 
Gross
Realized
Gains
 
Gross
Realized
Losses
 
Net
 
Gross
Realized
Gains
 
Gross
Realized
Losses
 
Net
Fixed maturity securities
$
7,015

 
$
(9,734
)
 
$
(2,719
)
 
$
9,320

 
$
(3,842
)
 
$
5,478

 
$
11,473

 
$
(83
)
 
$
11,390

Equity securities
59,342

 
(17,705
)
 
41,637

 
82,385

 
(58,297
)
 
24,088

 
19,538

 
(12,017
)
 
7,521

Short-term investments
0

 
(1,943
)
 
(1,943
)
 
0

 
(903
)
 
(903
)
 
2

 
(722
)
 
(720
)

Contractual Maturity
At December 31, 2014, fixed maturity holdings rated below investment grade and non-rated comprised 1.4% of total investments at fair value. Additionally, the Company owns securities that are credit enhanced by financial guarantors that are subject to uncertainty related to market perception of the guarantors’ ability to perform. Determining the estimated fair value of municipal bonds could become more difficult should markets for these securities become illiquid. The estimated fair values at December 31, 2014 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
 
Estimated Fair Value
 
(Amounts in thousands)
Fixed maturity securities:
 
Due in one year or less
$
42,637

Due after one year through five years
355,106

Due after five years through ten years
593,934

Due after ten years
1,626,723

Total
$
2,618,400



Investment Income
A summary of net investment income is shown in the following table:
 
Year Ended December 31,
 
2014
 
2013
 
2012
 
(Amounts in thousands)
Fixed maturity securities
$
104,946

 
$
107,926

 
$
117,557

Equity securities
17,313

 
18,249

 
15,831

Short-term investments
8,561

 
2,702

 
2,073

Total investment income
$
130,820

 
$
128,877

 
$
135,461

Less: investment expense
(5,097
)
 
(4,339
)
 
(3,565
)
Net investment income
$
125,723

 
$
124,538

 
$
131,896