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Investments (Tables)
 6 Months Ended
Jun. 30, 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 June 30, 2016 and December 31, 2015 and include Other-than-temporary-impairment (“OTTI”) securities recognized within Accumulated other comprehensive income (“AOCI”):

 

 

 

June 30, 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

 

$

353,579

 

 

$

6,019

 

 

$

(3,860

)

 

$

351,420

 

States, municipalities and political subdivisions

 

 

553,824

 

 

 

34,183

 

 

 

(602

)

 

 

520,243

 

Mortgage-backed and asset-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency mortgage-backed securities

 

 

504,731

 

 

 

11,203

 

 

 

(183

)

 

 

493,711

 

Residential mortgage obligations

 

 

28,258

 

 

 

470

 

 

 

(130

)

 

 

27,918

 

Asset-backed securities

 

 

262,903

 

 

 

1,339

 

 

 

(836

)

 

 

262,400

 

Commercial mortgage-backed securities

 

 

172,579

 

 

 

6,581

 

 

 

(1,028

)

 

 

167,026

 

Subtotal

 

$

968,471

 

 

$

19,593

 

 

$

(2,177

)

 

$

951,055

 

Corporate bonds

 

 

756,439

 

 

 

22,172

 

 

 

(1,636

)

 

 

735,903

 

Total fixed maturities

 

$

2,632,313

 

 

$

81,967

 

 

$

(8,275

)

 

$

2,558,621

 

Equity securities

 

 

329,635

 

 

 

39,159

 

 

 

(2,222

)

 

 

292,698

 

Short-term investments

 

 

144,843

 

 

 

—

 

 

 

(2

)

 

 

144,845

 

Total investments

 

$

3,106,791

 

 

$

121,126

 

 

$

(10,499

)

 

$

2,996,164

 

 

 

 

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 June 30, 2016 are shown in the following table:

 

 

 

June 30, 2016

 

 

 

Fair

 

 

Amortized

 

amounts in thousands

 

Value

 

 

Cost

 

Due in one year or less

 

$

98,463

 

 

$

100,526

 

Due after one year through five years

 

 

842,667

 

 

 

827,241

 

Due after five years through ten years

 

 

289,220

 

 

 

273,903

 

Due after ten years

 

 

433,492

 

 

 

405,896

 

Mortgage-backed and asset-backed securities

 

 

968,471

 

 

 

951,055

 

Total

 

$

2,632,313

 

 

$

2,558,621

 

 
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 June 30, 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:

 

 

 

June 30, 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

 

$

21,279

 

 

$

(385

)

 

$

23,935

 

 

$

(3,475

)

 

$

45,214

 

 

$

(3,860

)

States, municipalities and political subdivisions

 

 

22,959

 

 

 

(325

)

 

 

9,905

 

 

 

(277

)

 

 

32,864

 

 

 

(602

)

Mortgage-backed and asset-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency mortgage-backed securities

 

 

33,608

 

 

 

(55

)

 

 

15,636

 

 

 

(128

)

 

 

49,244

 

 

 

(183

)

Residential mortgage obligations

 

 

1,407

 

 

 

(29

)

 

 

1,737

 

 

 

(101

)

 

 

3,144

 

 

 

(130

)

Asset-backed securities

 

 

61,183

 

 

 

(169

)

 

 

79,694

 

 

 

(667

)

 

 

140,877

 

 

 

(836

)

Commercial mortgage-backed securities

 

 

6,584

 

 

 

(19

)

 

 

13,722

 

 

 

(1,009

)

 

 

20,306

 

 

 

(1,028

)

Subtotal

 

$

102,782

 

 

$

(272

)

 

$

110,789

 

 

$

(1,905

)

 

$

213,571

 

 

$

(2,177

)

Corporate bonds

 

 

57,624

 

 

 

(554

)

 

 

29,675

 

 

 

(1,082

)

 

 

87,299

 

 

 

(1,636

)

Total fixed maturities

 

$

204,644

 

 

$

(1,536

)

 

$

174,304

 

 

$

(6,739

)

 

$

378,948

 

 

$

(8,275

)

Equity securities

 

 

19,170

 

 

 

(1,892

)

 

 

3,850

 

 

 

(330

)

 

 

23,020

 

 

 

(2,222

)

Total fixed maturities and equity securities

 

$

223,814

 

 

$

(3,428

)

 

$

178,154

 

 

$

(7,069

)

 

$

401,968

 

 

$

(10,497

)

 

 

 

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

)

 
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 and six months ended June 30, 2016 and 2015:  

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

amounts in thousands

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Beginning balance

 

$

2,361

 

 

$

2,361

 

 

$

2,361

 

 

$

2,361

 

Additions for credit loss impairments recognized in the

   current period on securities not previously impaired

 

 

150

 

 

 

—

 

 

 

150

 

 

 

—

 

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

 

$

2,511

 

 

$

2,361

 

 

$

2,511

 

 

$

2,361

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Net Investment Income

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

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

amounts in thousands

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Fixed maturities

 

$

16,920

 

 

$

15,259

 

 

$

33,657

 

 

$

30,308

 

Equity securities

 

 

3,431

 

 

 

1,873

 

 

 

6,878

 

 

 

3,840

 

Short-term investments

 

 

288

 

 

 

146

 

 

 

498

 

 

 

330

 

Total investment income

 

$

20,639

 

 

$

17,278

 

 

$

41,033

 

 

$

34,478

 

Investment expenses

 

 

(764

)

 

 

(683

)

 

 

(1,564

)

 

 

(1,630

)

Net investment income

 

$

19,875

 

 

$

16,595

 

 

$

39,469

 

 

$

32,848

 

 
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 June 30,

 

 

Six Months Ended June 30,

 

amounts in thousands

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Fixed maturities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains

 

$

1,296

 

 

$

1,231

 

 

$

3,844

 

 

$

2,405

 

Losses

 

 

(738

)

 

 

(1,518

)

 

 

(1,865

)

 

 

(2,090

)

Fixed maturities, net

 

$

558

 

 

$

(287

)

 

$

1,979

 

 

$

315

 

Short-term:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains

 

$

407

 

 

$

112

 

 

$

675

 

 

$

26

 

Losses

 

 

(60

)

 

 

(11

)

 

 

(143

)

 

 

(79

)

Short-term, net

 

$

347

 

 

$

101

 

 

$

532

 

 

$

(53

)

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains

 

$

1,071

 

 

$

4,753

 

 

$

1,680

 

 

$

11,078

 

Losses

 

 

(16

)

 

 

(228

)

 

 

(634

)

 

 

(1,405

)

Equity securities, net

 

$

1,055

 

 

$

4,525

 

 

$

1,046

 

 

$

9,673

 

Net realized gains (losses)

 

$

1,960

 

 

$

4,339

 

 

$

3,557

 

 

$

9,935