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Investments (Tables)
 3 Months Ended
Mar. 31, 2016
Investments Debt And Equity Securities [Abstract]  
Investments Including Other-Than-Temporarily Impaired Securities Recognized within Accumulated Other Comprehensive Income

The following tables set forth our Company’s investments as of March 31, 2016 and December 31, 2015 and include Other-than-temporary-impairment (“OTTI”) securities recognized within Accumulated other comprehensive income (“AOCI”):

 

 

 

March 31, 2016

 

 

 

 

 

 

 

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

 

$

322,009

 

 

$

4,934

 

 

$

(4,478

)

 

$

321,553

 

States, municipalities and political subdivisions

 

 

550,855

 

 

 

26,085

 

 

 

(497

)

 

 

525,267

 

Mortgage-backed and asset-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency mortgage-backed securities

 

 

380,418

 

 

 

8,831

 

 

 

(323

)

 

 

371,910

 

Residential mortgage obligations

 

 

29,451

 

 

 

569

 

 

 

(131

)

 

 

29,013

 

Asset-backed securities

 

 

235,714

 

 

 

421

 

 

 

(2,040

)

 

 

237,333

 

Commercial mortgage-backed securities

 

 

188,169

 

 

 

4,903

 

 

 

(1,718

)

 

 

184,984

 

Subtotal

 

$

833,752

 

 

$

14,724

 

 

$

(4,212

)

 

$

823,240

 

Corporate bonds

 

 

771,104

 

 

 

15,457

 

 

 

(7,130

)

 

 

762,777

 

Total fixed maturities

 

$

2,477,720

 

 

$

61,200

 

 

$

(16,317

)

 

$

2,432,837

 

Equity securities

 

 

314,815

 

 

 

29,650

 

 

 

(1,646

)

 

 

286,811

 

Short-term investments

 

 

211,782

 

 

 

—

 

 

 

—

 

 

 

211,782

 

Total investments

 

$

3,004,317

 

 

$

90,850

 

 

$

(17,963

)

 

$

2,931,430

 

 

 

 

December 31, 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

 

$

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

 

 
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, 2016 are shown in the following table:

 

 

 

March 31, 2016

 

 

 

Fair

 

 

Amortized

 

amounts in thousands

 

Value

 

 

Cost

 

Due in one year or less

 

$

128,718

 

 

$

130,610

 

Due after one year through five years

 

 

805,858

 

 

 

795,317

 

Due after five years through ten years

 

 

301,025

 

 

 

292,205

 

Due after ten years

 

 

408,367

 

 

 

391,465

 

Mortgage-backed and asset-backed securities

 

 

833,752

 

 

 

823,240

 

Total

 

$

2,477,720

 

 

$

2,432,837

 

 
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, 2016 and December 31, 2015, 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:

 

 

 

March 31, 2016

 

 

 

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

 

$

29,155

 

 

$

(771

)

 

$

19,451

 

 

$

(3,707

)

 

$

48,606

 

 

$

(4,478

)

States, municipalities and political subdivisions

 

 

18,911

 

 

 

(266

)

 

 

6,387

 

 

 

(231

)

 

 

25,298

 

 

 

(497

)

Mortgage-backed and asset-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency mortgage-backed securities

 

 

4,082

 

 

 

(4

)

 

 

23,634

 

 

 

(319

)

 

 

27,716

 

 

 

(323

)

Residential mortgage obligations

 

 

4,562

 

 

 

(32

)

 

 

1,793

 

 

 

(99

)

 

 

6,355

 

 

 

(131

)

Asset-backed securities

 

 

91,678

 

 

 

(790

)

 

 

70,768

 

 

 

(1,250

)

 

 

162,446

 

 

 

(2,040

)

Commercial mortgage-backed securities

 

 

49,889

 

 

 

(1,690

)

 

 

3,362

 

 

 

(28

)

 

 

53,251

 

 

 

(1,718

)

Subtotal

 

$

150,211

 

 

$

(2,516

)

 

$

99,557

 

 

$

(1,696

)

 

$

249,768

 

 

$

(4,212

)

Corporate bonds

 

 

156,107

 

 

 

(6,590

)

 

 

21,949

 

 

 

(540

)

 

 

178,056

 

 

 

(7,130

)

Total fixed maturities

 

$

354,384

 

 

$

(10,143

)

 

$

147,344

 

 

$

(6,174

)

 

$

501,728

 

 

$

(16,317

)

Equity securities

 

 

37,422

 

 

 

(1,646

)

 

 

—

 

 

 

—

 

 

 

37,422

 

 

 

(1,646

)

Total fixed maturities and equity securities

 

$

391,806

 

 

$

(11,789

)

 

$

147,344

 

 

$

(6,174

)

 

$

539,150

 

 

$

(17,963

)

 

 

 

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

)

 
Net Investment Income

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

 

 

 

Three Months Ended March 31,

 

 

amounts in thousands

 

2016

 

 

2015

 

 

Fixed maturities

 

$

16,737

 

 

$

15,047

 

 

Equity securities

 

 

3,447

 

 

 

1,968

 

 

Short-term investments

 

 

210

 

 

 

183

 

 

Total investment income

 

$

20,394

 

 

$

17,198

 

 

Investment expenses

 

 

(800

)

 

 

(945

)

 

Net investment income

 

$

19,594

 

 

$

16,253

 

 

 
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

 

2016

 

 

2015

 

 

Fixed maturities:

 

 

 

 

 

 

 

 

 

Gains

 

$

2,548

 

 

$

1,174

 

 

Losses

 

 

(1,127

)

 

 

(572

)

 

Fixed maturities, net

 

$

1,421

 

 

$

602

 

 

Short-term:

 

 

 

 

 

 

 

 

 

Gains

 

$

268

 

 

$

8

 

 

Losses

 

 

(83

)

 

 

(162

)

 

Short-term, net

 

$

185

 

 

$

(154

)

 

Equity securities:

 

 

 

 

 

 

 

 

 

Gains

 

$

609

 

 

$

6,325

 

 

Losses

 

 

(618

)

 

 

(1,177

)

 

Equity securities, net

 

$

(9

)

 

$

5,148

 

 

Net realized gains (losses)

 

$

1,597

 

 

$

5,596