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Investments (Tables)
 12 Months Ended
Dec. 31, 2015
Investments Debt And Equity Securities [Abstract]  
Investments Including OTTI Securities Recognized within AOCI

The following tables set forth our Company’s investments as of December 31, 2015 and 2014 and include OTTI securities recognized within AOCI:

 

 

 

December 31, 2015

 

 

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

 

 

 

 

 

Unrealized

 

 

Unrealized

 

 

Amortized

 

amounts in thousands

 

Fair Value

 

 

Gains

 

 

Losses

 

 

Cost

 

Fixed maturities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury bonds, agency bonds and foreign

   government bonds

 

$

252,882

 

 

$

2,273

 

 

$

(9,214

)

 

$

259,823

 

States, municipalities and political subdivisions

 

 

576,859

 

 

 

21,233

 

 

 

(781

)

 

 

556,407

 

Mortgage-backed and asset-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency mortgage-backed securities

 

 

379,269

 

 

 

5,573

 

 

 

(2,082

)

 

 

375,778

 

Residential mortgage obligations

 

 

30,465

 

 

 

694

 

 

 

(82

)

 

 

29,853

 

Asset-backed securities

 

 

225,012

 

 

 

85

 

 

 

(1,624

)

 

 

226,551

 

Commercial mortgage-backed securities

 

 

189,713

 

 

 

3,119

 

 

 

(1,864

)

 

 

188,458

 

Subtotal

 

$

824,459

 

 

$

9,471

 

 

$

(5,652

)

 

$

820,640

 

Corporate bonds

 

 

760,010

 

 

 

7,373

 

 

 

(10,738

)

 

 

763,375

 

Total fixed maturities

 

$

2,414,210

 

 

$

40,350

 

 

$

(26,385

)

 

$

2,400,245

 

Equity securities

 

 

305,271

 

 

 

26,341

 

 

 

(3,013

)

 

 

281,943

 

Short-term investments

 

 

217,745

 

 

 

2

 

 

 

—

 

 

 

217,743

 

Total investments

 

$

2,937,226

 

 

$

66,693

 

 

$

(29,398

)

 

$

2,899,931

 

 

 

 

December 31, 2014

 

 

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

 

 

 

 

 

Unrealized

 

 

Unrealized

 

 

Amortized

 

amounts in thousands

 

Fair 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 December 31, 2015 are shown in the following table:

 

 

 

December 31, 2015

 

 

 

 

 

 

 

Amortized

 

amounts in thousands

 

Fair Value

 

 

Cost

 

Due in one year or less

 

$

79,279

 

 

$

81,819

 

Due after one year through five years

 

 

766,001

 

 

 

767,634

 

Due after five years through ten years

 

 

323,003

 

 

 

320,503

 

Due after ten years

 

 

421,468

 

 

 

409,648

 

Mortgage-backed and asset-backed securities

 

 

824,459

 

 

 

820,641

 

Total

 

$

2,414,210

 

 

$

2,400,245

 

 
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 December 31, 2015 and 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:

 

 

 

December 31, 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

 

$

142,233

 

 

$

(3,032

)

 

$

22,230

 

 

$

(6,182

)

 

$

164,463

 

 

$

(9,214

)

States, municipalities and political subdivisions

 

 

50,577

 

 

 

(549

)

 

 

4,808

 

 

 

(232

)

 

 

55,385

 

 

 

(781

)

Mortgage-backed and asset-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency mortgage-backed securities

 

 

164,817

 

 

 

(1,315

)

 

 

29,862

 

 

 

(767

)

 

 

194,679

 

 

 

(2,082

)

Residential mortgage obligations

 

 

3,910

 

 

 

(5

)

 

 

1,684

 

 

 

(77

)

 

 

5,594

 

 

 

(82

)

Asset-backed securities

 

 

112,479

 

 

 

(663

)

 

 

81,477

 

 

 

(961

)

 

 

193,956

 

 

 

(1,624

)

Commercial mortgage-backed securities

 

 

83,024

 

 

 

(1,826

)

 

 

3,065

 

 

 

(38

)

 

 

86,089

 

 

 

(1,864

)

Subtotal

 

$

364,230

 

 

$

(3,809

)

 

$

116,088

 

 

$

(1,843

)

 

$

480,318

 

 

$

(5,652

)

Corporate bonds

 

 

395,399

 

 

 

(10,114

)

 

 

13,849

 

 

 

(624

)

 

 

409,248

 

 

 

(10,738

)

Total fixed maturities

 

$

952,439

 

 

$

(17,504

)

 

$

156,975

 

 

$

(8,881

)

 

$

1,109,414

 

 

$

(26,385

)

Equity securities

 

 

58,531

 

 

 

(3,013

)

 

 

—

 

 

 

—

 

 

 

58,531

 

 

 

(3,013

)

Total fixed maturities and equity securities

 

$

1,010,970

 

 

$

(20,517

)

 

$

156,975

 

 

$

(8,881

)

 

$

1,167,945

 

 

$

(29,398

)

 

 

 

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

)

 
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 years ended December 31, 2015, 2014 and 2013. Our Company does not intend to sell, and it is more likely than not that we 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.

 

 

 

Years Ended December 31,

 

amounts in thousands

 

2015

 

 

2014

 

 

2013

 

Beginning balance

 

$

2,361

 

 

$

5,154

 

 

$

3,332

 

Additions for credit loss impairments recognized in the

   current period on securities not previously impaired

 

 

—

 

 

 

—

 

 

 

1,822

 

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

 

 

—

 

 

 

(2,793

)

 

 

—

 

Ending balance

 

$

2,361

 

 

$

2,361

 

 

$

5,154

 

 
Net Investment Income

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

 

 

 

Years Ended December 31,

 

amounts in thousands

 

2015

 

 

2014

 

 

2013

 

Fixed maturities

 

$

61,572

 

 

$

57,219

 

 

$

53,898

 

Equity securities

 

 

9,813

 

 

 

9,036

 

 

 

4,835

 

Short-term investments

 

 

683

 

 

 

911

 

 

 

774

 

Total investment income

 

$

72,068

 

 

$

67,166

 

 

$

59,507

 

Investment expenses

 

 

(3,350

)

 

 

(2,998

)

 

 

(3,256

)

Net investment income

 

$

68,718

 

 

$

64,168

 

 

$

56,251

 

 
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:

 

 

 

Years Ended December 31,

 

amounts in thousands

 

2015

 

 

2014

 

 

2013

 

Fixed maturities:

 

 

 

 

 

 

 

 

 

 

 

 

Gains

 

$

4,756

 

 

$

8,326

 

 

$

8,539

 

Losses

 

 

(5,926

)

 

 

(2,610

)

 

 

(2,797

)

Fixed maturities, net

 

$

(1,170

)

 

$

5,716

 

 

$

5,742

 

Short-term:

 

 

 

 

 

 

 

 

 

 

 

 

Gains

 

$

130

 

 

$

—

 

 

$

—

 

Losses

 

 

(383

)

 

 

—

 

 

 

—

 

Short-term, net

 

$

(253

)

 

$

—

 

 

$

—

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

Gains

 

$

14,331

 

 

$

9,447

 

 

$

17,955

 

Losses

 

 

(4,535

)

 

 

(2,351

)

 

 

(758

)

Equity securities, net

 

$

9,796

 

 

$

7,096

 

 

$

17,197

 

Net realized gains (losses)

 

$

8,373

 

 

$

12,812

 

 

$

22,939