XML 22 R9.htm IDEA: XBRL DOCUMENT v3.6.0.2
Investments
 12 Months Ended
Dec. 31, 2016
Investments [Abstract]  
Investments
Investments

The following table presents (losses) gains 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,
 
2016
 
2015
 
2014
 
(Amounts in thousands)
Fixed maturity securities
$
(56,584
)
 
$
(39,304
)
 
$
77,208

Equity securities
23,722

 
(22,988
)
 
(32,922
)
Short-term investments
57

 
561

 
(527
)
Total
$
(32,805
)
 
$
(61,731
)
 
$
43,759



The following table presents gross gains (losses) realized on the sales of investments:
 
Year Ended December 31,
 
2016
 
2015
 
2014
 
(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
$
3,327

 
$
(19,133
)
 
$
(15,806
)
 
$
631

 
$
(495
)
 
$
136

 
$
7,015

 
$
(9,734
)
 
$
(2,719
)
Equity securities
29,446

 
(29,945
)
 
(499
)
 
41,305

 
(58,764
)
 
(17,459
)
 
59,342

 
(17,705
)
 
41,637

Short-term investments
6

 
(529
)
 
(523
)
 
—

 
(1,396
)
 
(1,396
)
 
—

 
(1,943
)
 
(1,943
)

Contractual Maturity
At December 31, 2016, fixed maturity holdings rated below investment grade and non-rated comprised 3.9% 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 following table presents the estimated fair values of the Company's fixed maturity securities at December 31, 2016 by contractual maturity. 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
$
381,189

Due after one year through five years
515,049

Due after five years through ten years
316,173

Due after ten years
1,602,142

Total
$
2,814,553



Investment Income
The following table presents a summary of net investment income:
 
Year Ended December 31,
 
2016
 
2015
 
2014
 
(Amounts in thousands)
Fixed maturity securities
$
104,111

 
$
108,122

 
$
104,946

Equity securities
14,629

 
14,630

 
17,313

Short-term investments
8,936

 
9,033

 
8,561

Total investment income
$
127,676

 
$
131,785

 
$
130,820

Less: investment expense
(5,805
)
 
(5,486
)
 
(5,097
)
Net investment income
$
121,871

 
$
126,299

 
$
125,723