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Investments (Tables)
 9 Months Ended
Sep. 30, 2015
Investments Debt And Equity Securities [Abstract]  
Investments Including Other-Than-Temporarily Impaired Securities Recognized within Other Comprehensive Income

The following tables set forth our Company’s investments as of September 30, 2015 and December 31, 2014 and include Other-than-temporary-impairment (“OTTI”) securities recognized within AOCI:

 

 

 

As of September 30, 2015

 

 

 

 

 

 

 

Gross

 

 

Gross

 

 

Cost or

 

 

 

Fair

 

 

Unrealized

 

 

Unrealized

 

 

Amortized

 

amounts in thousands

 

Value

 

 

Gains

 

 

(Losses)

 

 

Cost

 

Fixed maturities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury bonds, agency bonds and foreign

   government bonds

 

$

301,915

 

 

$

4,327

 

 

$

(8,812

)

 

$

306,400

 

States, municipalities and political subdivisions

 

 

571,104

 

 

 

17,402

 

 

 

(927

)

 

 

554,629

 

Mortgage-backed and asset-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency mortgage-backed securities

 

 

360,198

 

 

 

7,200

 

 

 

(912

)

 

 

353,910

 

Residential mortgage obligations

 

 

31,568

 

 

 

854

 

 

 

(104

)

 

 

30,818

 

Asset-backed securities

 

 

197,934

 

 

 

591

 

 

 

(846

)

 

 

198,189

 

Commercial mortgage-backed securities

 

 

204,876

 

 

 

5,335

 

 

 

(958

)

 

 

200,499

 

Subtotal

 

$

794,576

 

 

$

13,980

 

 

$

(2,820

)

 

$

783,416

 

Corporate bonds

 

 

729,392

 

 

 

10,776

 

 

 

(4,111

)

 

 

722,727

 

Total fixed maturities

 

$

2,396,987

 

 

$

46,485

 

 

$

(16,670

)

 

$

2,367,172

 

Equity securities

 

 

274,928

 

 

 

16,486

 

 

 

(7,318

)

 

 

265,760

 

Short-term investments

 

 

233,142

 

 

 

33

 

 

 

—

 

 

 

233,109

 

Total investments

 

$

2,905,057

 

 

$

63,004

 

 

$

(23,988

)

 

$

2,866,041

 

 

 

 

As of December 31, 2014

 

 

 

 

 

 

 

Gross

 

 

Gross

 

 

Cost or

 

 

 

Fair

 

 

Unrealized

 

 

Unrealized

 

 

Amortized

 

amounts in thousands

 

Value

 

 

Gains

 

 

(Losses)

 

 

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 September 30, 2015 are shown in the following table:

 

 

 

As of September 30, 2015

 

 

 

Fair

 

 

Amortized

 

amounts in thousands

 

Value

 

 

Cost

 

Due in one year or less

 

$

82,515

 

 

$

86,268

 

Due after one year through five years

 

 

802,221

 

 

 

794,442

 

Due after five years through ten years

 

 

307,813

 

 

 

302,656

 

Due after ten years

 

 

409,862

 

 

 

400,390

 

Mortgage-backed and asset-backed securities

 

 

794,576

 

 

 

783,416

 

Total

 

$

2,396,987

 

 

$

2,367,172

 

 
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 September 30, 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:

 

 

 

As of September 30, 2015

 

 

 

Less than 12 months

 

 

Greater than 12 months

 

 

Total

 

 

 

 

 

 

 

Gross

 

 

 

 

 

 

Gross

 

 

 

 

 

 

Gross

 

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

amounts in thousands

 

Value

 

 

(Losses)

 

 

Value

 

 

(Losses)

 

 

Value

 

 

(Losses)

 

Fixed maturities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury bonds, agency bonds and foreign

   government bonds

 

$

37,766

 

 

$

(1,866

)

 

$

28,143

 

 

$

(6,946

)

 

$

65,909

 

 

$

(8,812

)

States, municipalities and political subdivisions

 

 

54,653

 

 

 

(540

)

 

 

4,669

 

 

 

(387

)

 

 

59,322

 

 

 

(927

)

Mortgage-backed and asset-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency mortgage-backed securities

 

 

52,009

 

 

 

(259

)

 

 

23,259

 

 

 

(653

)

 

 

75,268

 

 

 

(912

)

Residential mortgage obligations

 

 

5,196

 

 

 

(22

)

 

 

1,947

 

 

 

(82

)

 

 

7,143

 

 

 

(104

)

Asset-backed securities

 

 

28,823

 

 

 

(146

)

 

 

78,725

 

 

 

(700

)

 

 

107,548

 

 

 

(846

)

Commercial mortgage-backed securities

 

 

47,297

 

 

 

(939

)

 

 

3,440

 

 

 

(19

)

 

 

50,737

 

 

 

(958

)

Subtotal

 

$

133,325

 

 

$

(1,366

)

 

$

107,371

 

 

$

(1,454

)

 

$

240,696

 

 

$

(2,820

)

Corporate bonds

 

 

224,426

 

 

 

(3,454

)

 

 

17,784

 

 

 

(657

)

 

 

242,210

 

 

 

(4,111

)

Total fixed maturities

 

$

450,170

 

 

$

(7,226

)

 

$

157,967

 

 

$

(9,444

)

 

$

608,137

 

 

$

(16,670

)

Equity securities

 

 

128,247

 

 

 

(7,318

)

 

 

—

 

 

 

—

 

 

 

128,247

 

 

 

(7,318

)

Total fixed maturities and equity securities

 

$

578,417

 

 

$

(14,544

)

 

$

157,967

 

 

$

(9,444

)

 

$

736,384

 

 

$

(23,988

)

 

 

 

As of December 31, 2014

 

 

 

Less than 12 months

 

 

Greater than 12 months

 

 

Total

 

 

 

 

 

 

 

Gross

 

 

 

 

 

 

Gross

 

 

 

 

 

 

Gross

 

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

amounts in thousands

 

Value

 

 

(Losses)

 

 

Value

 

 

(Losses)

 

 

Value

 

 

(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

)

 
Net Investment Income

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

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

amounts in thousands

 

2015

 

 

2014

 

 

2015

 

 

2014

 

 

Fixed maturities

 

$

15,353

 

 

$

14,401

 

 

$

45,660

 

 

$

42,540

 

 

Equity securities

 

 

2,543

 

 

 

1,956

 

 

 

6,383

 

 

 

7,160

 

 

Short-term investments

 

 

272

 

 

 

225

 

 

 

604

 

 

 

686

 

 

Total investment income

 

$

18,168

 

 

$

16,582

 

 

$

52,647

 

 

$

50,386

 

 

Investment expenses

 

 

(797

)

 

 

(743

)

 

 

(2,428

)

 

 

(2,289

)

 

Net investment income

 

$

17,371

 

 

$

15,839

 

 

$

50,219

 

 

$

48,097

 

 

 
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 September 30,

 

 

Nine Months Ended September 30,

 

 

amounts in thousands

 

2015

 

 

2014

 

 

2015

 

 

2014

 

 

Fixed maturities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains

 

$

484

 

 

$

3,702

 

 

$

2,889

 

 

$

8,682

 

 

Losses

 

 

(667

)

 

 

(1,645

)

 

 

(2,757

)

 

 

(3,752

)

 

Fixed maturities, net

 

$

(183

)

 

$

2,057

 

 

$

132

 

 

$

4,930

 

 

Short-term:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains

 

$

9

 

 

$

—

 

 

$

109

 

 

$

—

 

 

Losses

 

 

(120

)

 

 

—

 

 

 

(273

)

 

 

—

 

 

Short-term, net

 

$

(111

)

 

$

—

 

 

$

(164

)

 

$

—

 

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains

 

$

1,107

 

 

$

6,109

 

 

$

12,185

 

 

$

9,445

 

 

Losses

 

 

(295

)

 

 

(1,448

)

 

 

(1,700

)

 

 

(2,351

)

 

Equity securities, net

 

$

812

 

 

$

4,661

 

 

$

10,485

 

 

$

7,094

 

 

Net realized gains (losses)

 

$

518

 

 

$

6,718

 

 

$

10,453

 

 

$

12,024