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

 

 

 

September 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

 

$

262,030

 

 

$

3,691

 

 

$

(3,981

)

 

$

262,320

 

States, municipalities and political subdivisions

 

 

580,324

 

 

 

29,288

 

 

 

(769

)

 

 

551,805

 

Mortgage-backed and asset-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency mortgage-backed securities

 

 

526,069

 

 

 

11,778

 

 

 

(105

)

 

 

514,396

 

Residential mortgage obligations

 

 

27,055

 

 

 

455

 

 

 

(97

)

 

 

26,697

 

Asset-backed securities

 

 

288,636

 

 

 

1,503

 

 

 

(458

)

 

 

287,591

 

Commercial mortgage-backed securities

 

 

165,405

 

 

 

6,392

 

 

 

(423

)

 

 

159,436

 

Subtotal

 

$

1,007,165

 

 

$

20,128

 

 

$

(1,083

)

 

$

988,120

 

Corporate bonds

 

 

810,898

 

 

 

23,447

 

 

 

(1,354

)

 

 

788,805

 

Total fixed maturities

 

$

2,660,417

 

 

$

76,554

 

 

$

(7,187

)

 

$

2,591,050

 

Equity securities

 

 

342,677

 

 

 

38,538

 

 

 

(1,767

)

 

 

305,906

 

Other invested assets

 

 

2,021

 

 

 

—

 

 

 

—

 

 

 

2,021

 

Short-term investments

 

 

134,273

 

 

 

—

 

 

 

—

 

 

 

134,273

 

Total investments

 

$

3,139,388

 

 

$

115,092

 

 

$

(8,954

)

 

$

3,033,250

 

 

 

 

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 September 30, 2016 are shown in the following table:

 

 

 

September 30, 2016

 

 

 

Fair

 

 

Amortized

 

amounts in thousands

 

Value

 

 

Cost

 

Due in one year or less

 

$

81,849

 

 

$

83,551

 

Due after one year through five years

 

 

810,165

 

 

 

799,159

 

Due after five years through ten years

 

 

296,471

 

 

 

281,368

 

Due after ten years

 

 

464,767

 

 

 

438,852

 

Mortgage-backed and asset-backed securities

 

 

1,007,165

 

 

 

988,120

 

Total

 

$

2,660,417

 

 

$

2,591,050

 

 
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, 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:

 

 

 

September 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

 

$

91,676

 

 

$

(969

)

 

$

19,897

 

 

$

(3,012

)

 

$

111,573

 

 

$

(3,981

)

States, municipalities and political subdivisions

 

 

49,881

 

 

 

(593

)

 

 

9,932

 

 

 

(176

)

 

 

59,813

 

 

 

(769

)

Mortgage-backed and asset-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency mortgage-backed securities

 

 

52,754

 

 

 

(17

)

 

 

13,547

 

 

 

(88

)

 

 

66,301

 

 

 

(105

)

Residential mortgage obligations

 

 

1,317

 

 

 

(16

)

 

 

1,631

 

 

 

(81

)

 

 

2,948

 

 

 

(97

)

Asset-backed securities

 

 

22,422

 

 

 

(158

)

 

 

61,499

 

 

 

(300

)

 

 

83,921

 

 

 

(458

)

Commercial mortgage-backed securities

 

 

20,864

 

 

 

(38

)

 

 

8,854

 

 

 

(385

)

 

 

29,718

 

 

 

(423

)

Subtotal

 

$

97,357

 

 

$

(229

)

 

$

85,531

 

 

$

(854

)

 

$

182,888

 

 

$

(1,083

)

Corporate bonds

 

 

120,114

 

 

 

(622

)

 

 

23,053

 

 

 

(732

)

 

 

143,167

 

 

 

(1,354

)

Total fixed maturities

 

$

359,028

 

 

$

(2,413

)

 

$

138,413

 

 

$

(4,774

)

 

$

497,441

 

 

$

(7,187

)

Equity securities

 

 

38,050

 

 

 

(1,490

)

 

 

4,723

 

 

 

(277

)

 

 

42,773

 

 

 

(1,767

)

Total fixed maturities and equity securities

 

$

397,078

 

 

$

(3,903

)

 

$

143,136

 

 

$

(5,051

)

 

$

540,214

 

 

$

(8,954

)

 

 

 

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 nine months ended September 30, 2016 and 2015:  

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

amounts in thousands

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Beginning balance

 

$

2,511

 

 

$

2,361

 

 

$

2,361

 

 

$

2,361

 

Additions for credit loss impairments recognized in the

   current period on securities not previously impaired

 

 

—

 

 

 

—

 

 

 

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

 

 

(150

)

 

 

—

 

 

 

(150

)

 

 

—

 

Ending balance

 

$

2,361

 

 

$

2,361

 

 

$

2,361

 

 

$

2,361

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
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

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Fixed maturities

 

$

17,124

 

 

$

15,353

 

 

$

50,781

 

 

$

45,660

 

Equity securities

 

 

3,540

 

 

 

2,543

 

 

 

10,418

 

 

 

6,383

 

Short-term investments

 

 

70

 

 

 

272

 

 

 

568

 

 

 

604

 

Total investment income

 

$

20,734

 

 

$

18,168

 

 

$

61,767

 

 

$

52,647

 

Investment expenses

 

 

(859

)

 

 

(797

)

 

 

(2,423

)

 

 

(2,428

)

Net investment income

 

$

19,875

 

 

$

17,371

 

 

$

59,344

 

 

$

50,219

 

 
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

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Fixed maturities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains

 

$

1,356

 

 

$

484

 

 

$

5,200

 

 

$

2,889

 

Losses

 

 

(1,221

)

 

 

(667

)

 

 

(3,086

)

 

 

(2,757

)

Fixed maturities, net

 

$

135

 

 

$

(183

)

 

$

2,114

 

 

$

132

 

Short-term:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains

 

$

128

 

 

$

9

 

 

$

803

 

 

$

109

 

Losses

 

 

(107

)

 

 

(120

)

 

 

(250

)

 

 

(273

)

Short-term, net

 

$

21

 

 

$

(111

)

 

$

553

 

 

$

(164

)

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains

 

$

1,443

 

 

$

1,107

 

 

$

3,123

 

 

$

12,185

 

Losses

 

 

(13

)

 

 

(295

)

 

 

(647

)

 

 

(1,700

)

Equity securities, net

 

$

1,430

 

 

$

812

 

 

$

2,476

 

 

$

10,485

 

Net realized gains (losses)

 

$

1,586

 

 

$

518

 

 

$

5,143

 

 

$

10,453