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

The following tables set forth our Company’s available- for- sale investments as of December 31, 2016 and 2015 and include OTTI securities recognized within AOCI:

 

 

 

December 31, 2016

 

 

 

 

 

 

 

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

 

$

273,776

 

 

$

2,192

 

 

$

(5,128

)

 

$

276,712

 

States, municipalities and political subdivisions

 

 

547,415

 

 

 

11,542

 

 

 

(4,036

)

 

 

539,909

 

Mortgage-backed and asset-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency mortgage-backed securities

 

 

487,364

 

 

 

4,016

 

 

 

(6,585

)

 

 

489,933

 

Residential mortgage obligations

 

 

20,530

 

 

 

453

 

 

 

(55

)

 

 

20,132

 

Asset-backed securities

 

 

314,601

 

 

 

824

 

 

 

(1,178

)

 

 

314,955

 

Commercial mortgage-backed securities

 

 

154,139

 

 

 

2,859

 

 

 

(1,904

)

 

 

153,184

 

Subtotal

 

$

976,634

 

 

$

8,152

 

 

$

(9,722

)

 

$

978,204

 

Corporate bonds

 

 

838,057

 

 

 

10,185

 

 

 

(5,528

)

 

 

833,400

 

Total fixed maturities

 

$

2,635,882

 

 

$

32,071

 

 

$

(24,414

)

 

$

2,628,225

 

Equity securities

 

 

349,142

 

 

 

27,016

 

 

 

(5,785

)

 

 

327,911

 

Short-term investments

 

 

143,539

 

 

 

88

 

 

 

—

 

 

 

143,451

 

Total investments

 

$

3,128,563

 

 

$

59,175

 

 

$

(30,199

)

 

$

3,099,587

 

 

 

 

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

 

 
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, 2016 are shown in the following table:

 

 

 

December 31, 2016

 

 

 

 

 

 

 

Amortized

 

amounts in thousands

 

Fair Value

 

 

Cost

 

Due in one year or less

 

$

133,644

 

 

$

134,931

 

Due after one year through five years

 

 

778,875

 

 

 

778,511

 

Due after five years through ten years

 

 

295,742

 

 

 

291,811

 

Due after ten years

 

 

450,987

 

 

 

444,768

 

Mortgage-backed and asset-backed securities

 

 

976,634

 

 

 

978,204

 

Total

 

$

2,635,882

 

 

$

2,628,225

 

 
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, 2016 and 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:

 

 

 

December 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

 

$

150,891

 

 

$

(2,570

)

 

$

16,819

 

 

$

(2,558

)

 

$

167,710

 

 

$

(5,128

)

States, municipalities and political subdivisions

 

 

137,731

 

 

 

(3,111

)

 

 

13,255

 

 

 

(925

)

 

 

150,986

 

 

 

(4,036

)

Mortgage-backed and asset-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency mortgage-backed securities

 

 

349,119

 

 

 

(6,155

)

 

 

12,401

 

 

 

(430

)

 

 

361,520

 

 

 

(6,585

)

Residential mortgage obligations

 

 

953

 

 

 

(18

)

 

 

926

 

 

 

(37

)

 

 

1,879

 

 

 

(55

)

Asset-backed securities

 

 

95,514

 

 

 

(970

)

 

 

48,093

 

 

 

(208

)

 

 

143,607

 

 

 

(1,178

)

Commercial mortgage-backed securities

 

 

51,932

 

 

 

(1,164

)

 

 

7,910

 

 

 

(740

)

 

 

59,842

 

 

 

(1,904

)

Subtotal

 

$

497,518

 

 

$

(8,307

)

 

$

69,330

 

 

$

(1,415

)

 

$

566,848

 

 

$

(9,722

)

Corporate bonds

 

 

325,733

 

 

 

(5,086

)

 

 

26,005

 

 

 

(442

)

 

 

351,738

 

 

 

(5,528

)

Total fixed maturities

 

$

1,111,873

 

 

$

(19,074

)

 

$

125,409

 

 

$

(5,340

)

 

$

1,237,282

 

 

$

(24,414

)

Equity securities

 

 

145,014

 

 

 

(5,419

)

 

 

1,994

 

 

 

(366

)

 

 

147,008

 

 

 

(5,785

)

Total fixed maturities and equity securities

 

$

1,256,887

 

 

$

(24,493

)

 

$

127,403

 

 

$

(5,706

)

 

$

1,384,290

 

 

$

(30,199

)

 

 

 

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 years ended December 31, 2016, 2015 and 2014.

 

 

Years Ended December 31,

 

amounts in thousands

 

2016

 

 

2015

 

 

2014

 

Beginning balance

 

$

2,361

 

 

$

2,361

 

 

$

5,154

 

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

)

 

 

—

 

 

 

(2,793

)

Ending balance

 

$

2,361

 

 

$

2,361

 

 

$

2,361

 

 
Net Investment Income

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

 

 

 

Years Ended December 31,

 

amounts in thousands

 

2016

 

 

2015

 

 

2014

 

Fixed maturities

 

$

67,772

 

 

$

61,572

 

 

$

57,219

 

Equity securities

 

 

14,271

 

 

 

9,813

 

 

 

9,036

 

Short-term investments

 

 

727

 

 

 

683

 

 

 

911

 

Total investment income

 

$

82,770

 

 

$

72,068

 

 

$

67,166

 

Investment expenses

 

 

(3,319

)

 

 

(3,350

)

 

 

(2,998

)

Net investment income

 

$

79,451

 

 

$

68,718

 

 

$

64,168

 

 
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

 

2016

 

 

2015

 

 

2014

 

Fixed maturities:

 

 

 

 

 

 

 

 

 

 

 

 

Gains

 

$

5,681

 

 

$

4,756

 

 

$

8,326

 

Losses

 

 

(4,271

)

 

 

(5,926

)

 

 

(2,610

)

Fixed maturities, net

 

$

1,410

 

 

$

(1,170

)

 

$

5,716

 

Short-term:

 

 

 

 

 

 

 

 

 

 

 

 

Gains

 

$

890

 

 

$

130

 

 

$

—

 

Losses

 

 

(1,552

)

 

 

(383

)

 

 

—

 

Short-term, net

 

$

(662

)

 

$

(253

)

 

$

—

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

Gains

 

$

9,096

 

 

$

14,331

 

 

$

9,447

 

Losses

 

 

(658

)

 

 

(4,535

)

 

 

(2,351

)

Equity securities, net

 

$

8,438

 

 

$

9,796

 

 

$

7,096

 

Net realized gains (losses)

 

$

9,186

 

 

$

8,373

 

 

$

12,812