Investments (Tables)

3 Months Ended

Mar. 31, 2015

Investments Including Other-Than-Temporarily Impaired Securities Recognized within Other Comprehensive Income

The following tables set forth our Company’s investments as of March 31, 2015 and December 31, 2014 and include Other-than-temporary-impairment (“OTTI”) securities recognized within AOCI.

	March 31, 2015
amounts in thousands	Fair Value		Gross Unrealized Gains		Gross Unrealized (Losses)			Cost or Amortized Cost
Fixed maturities:
U.S. Treasury bonds, agency bonds and foreign government bonds	$	310,389	$	4,858	$	(8,732	)	$	314,263
States, municipalities and political subdivisions		547,664		19,989		(321	)		527,996
Mortgage-backed and asset-backed securities:
Agency mortgage-backed securities		364,468		9,975		(589	)		355,082
Residential mortgage obligations		33,116		1,079		(117	)		32,154
Asset-backed securities		216,475		814		(554	)		216,215
Commercial mortgage-backed securities		231,703		7,789		(28	)		223,942
Subtotal	$	845,762	$	19,657	$	(1,288	)	$	827,393
Corporate bonds		641,410		17,231		(932	)		625,111
Total fixed maturities	$	2,345,225	$	61,735	$	(11,273	)	$	2,294,763
Equity securities		159,044		26,113		(1,037	)		133,968
Short-term investments		242,553		20		(1,197	)		243,730
Total Investments	$	2,746,822	$	87,868	$	(13,507	)	$	2,672,461

	December 31, 2014
amounts in thousands	Fair Value		Gross Unrealized Gains		Gross Unrealized (Losses)			Cost or Amortized Cost
Fixed maturities:
U.S. Treasury bonds, agency bonds and foreign government bonds	$	397,923	$	3,431	$	(5,965	)	$	400,457
States, municipalities and political subdivisions		541,007		19,204		(558	)		522,361
Mortgage-backed and asset-backed securities:
Agency mortgage-backed securities		364,622		8,476		(998	)		357,144
Residential mortgage obligations		34,087		1,153		(138	)		33,072
Asset-backed securities		206,413		380		(964	)		206,997
Commercial mortgage-backed securities		206,318		6,630		(98	)		199,786
Subtotal	$	811,440	$	16,639	$	(2,198	)	$	796,999
Corporate bonds		615,564		13,048		(1,626	)		604,142
Total fixed maturities	$	2,365,934	$	52,322	$	(10,347	)	$	2,323,959
Equity securities		184,295		30,756		(1,304	)		154,843
Short-term investments		179,506		—		(21	)		179,527
Total Investments	$	2,729,735	$	83,078	$	(11,672	)	$	2,658,329

Scheduled Maturity Dates for Fixed Maturity Securities by Number of Years Until Maturity

The contractual maturity dates for fixed maturities categorized by the number of years until maturity as of March 31, 2015 are shown in the following table:

	March 31, 2015
amounts in thousands	Fair Value		Amortized Cos t
Due in one year or less	$	55,121	$	59,300
Due after one year through five years		756,593		746,400
Due after five years through ten years		326,731		315,462
Due after ten years		361,018		346,208
Mortgage- and asset-backed securities		845,762		827,393
Total	$	2,345,225	$	2,294,763

Summary of Aggregate Fair Value and Gross Unrealized Loss by Length of Time Securities had Continuously been in Gross Unrealized Loss Position

The following tables summarize all securities in a gross unrealized loss position as of March 31, 2015 and December 31, 2014, showing the aggregate fair value and gross unrealized loss by the length of time those securities have continuously been in a gross unrealized loss position:

	Less than 12 months					Greater than 12 months					Total
March 31, 2015			Gross					Gross					Gross
amounts in thousands	Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)
Fixed maturities:
U.S. Treasury bonds, agency bonds and foreign government bonds	$	38,187	$	(2,879	)	$	27,210	$	(5,853	)	$	65,397	$	(8,732	)
States, municipalities and political subdivisions		23,698		(127	)		3,514		(194	)		27,212		(321	)
Mortgage-backed and asset-backed securities:
Agency mortgage-backed securities		25,824		(78	)		22,530		(511	)		48,354		(589	)
Residential mortgage obligations		2,002		(22	)		1,623		(95	)		3,625		(117	)
Asset-backed securities		61,801		(209	)		41,475		(345	)		103,276		(554	)
Commercial mortgage-backed securities		4,088		(9	)		1,369		(19	)		5,457		(28	)
Subtotal	$	93,715	$	(318	)	$	66,997	$	(970	)	$	160,712	$	(1,288	)
Corporate bonds		86,144		(386	)		3,954		(546	)		90,098		(932	)
Total fixed maturities	$	241,744	$	(3,710	)	$	101,675	$	(7,563	)	$	343,419	$	(11,273	)
Equity securities		10,770		(628	)		1,803		(409	)		12,573		(1,037	)
Total fixed maturities and equity securities	$	252,514	$	(4,338	)	$	103,478	$	(7,972	)	$	355,992	$	(12,310	)

	Less than 12 months					Greater than 12 months					Total
December 31, 2014			Gross					Gross					Gross
amounts in thousands	Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)
Fixed maturities:
U.S. Treasury bonds, agency bonds and foreign government bonds	$	87,915	$	(1,061	)	$	117,683	$	(4,904	)	$	205,598	$	(5,965	)
States, municipalities and political subdivisions		16,349		(60	)		37,340		(498	)		53,689		(558	)
Mortgage-backed and asset-backed securities:
Agency mortgage-backed securities		18,881		(80	)		58,301		(918	)		77,182		(998	)
Residential mortgage obligations		5,625		(50	)		1,728		(88	)		7,353		(138	)
Asset-backed securities		110,275		(539	)		34,530		(425	)		144,805		(964	)
Commercial mortgage-backed securities		19,741		(71	)		1,391		(27	)		21,132		(98	)
Subtotal	$	154,522	$	(740	)	$	95,950	$	(1,458	)	$	250,472	$	(2,198	)
Corporate bonds		190,461		(871	)		31,126		(755	)		221,587		(1,626	)
Total fixed maturities	$	449,247	$	(2,732	)	$	282,099	$	(7,615	)	$	731,346	$	(10,347	)
Equity securities		19,690		(1,297	)		238		(7	)		19,928		(1,304	)
Total fixed maturities and equity securities	$	468,937	$	(4,029	)	$	282,337	$	(7,622	)	$	751,274	$	(11,651	)

Summary of Cumulative Amounts Related to Credit Loss Portion of Other-Than-Temporary Impairment Losses on Debt Securities

The following table summarizes the cumulative amounts related to our Company’s credit loss portion of the OTTI losses on fixed maturities for the three months ended March 31, 2015 and 2014. Our Company does not intend to sell, and it is more likely than not that it will not be required to sell, the securities prior to recovery of the amortized cost basis and for which the non-credit loss portion is included in AOCI.

	Three Months Ended March 31,
amounts in thousands	2015		2014
Beginning balance	$	2,361	$	5,154
Additions for credit loss impairments recognized in the current period on securities not previously impaired		—		—
Additions for credit loss impairments recognized in the current period on securities previously impaired		—		—
Reductions for credit loss impairments previously recognized on securities sold during the period		—		—
Ending balance	$	2,361	$	5,154

Net Investment Income

Our Company’s net investment income was derived from the following sources:

	Three Months Ended March 31,
amounts in thousands	2015			2014
Fixed maturities	$	15,047		$	13,953
Equity securities		1,968			3,233
Short-term investments		183			218
Total investment income	$	17,198		$	17,404
Investment expenses		(945	)		(794	)
Net investment income	$	16,253		$	16,610

Realized Gains and Losses, Excluding Net Other-Than-Temporary Impairment Losses Recognized in Earnings

Realized gains and losses, excluding net OTTI losses recognized in earnings, for the periods indicated, were as follows:

	Three Months Ended March 31,
amounts in thousands	2015			2014
Fixed maturities:
Gains	$	1,174		$	1,867
Losses		(572	)		(2,051	)
Fixed maturities, net	$	602		$	(184	)
Short-term:
Gains	$	8		$	—
Losses		(162	)		—
Short-term, net	$	(154	)	$	—
Equity securities:
Gains	$	6,325		$	1,920
Losses		(1,177	)		(903	)
Equity securities, net	$	5,148		$	1,017
Net realized gains (losses)	$	5,596		$	833