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Investments (Tables)
 3 Months Ended
Mar. 31, 2017
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 March 31, 2017 and December 31, 2016 and include Other-than-temporary-impairment (“OTTI”) securities recognized within Accumulated other comprehensive income (“AOCI”):

 

 

 

March 31, 2017

 

 

 

 

 

 

 

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

 

$

270,009

 

 

$

2,110

 

 

$

(3,671

)

 

$

271,570

 

States, municipalities and political subdivisions

 

 

604,912

 

 

 

13,772

 

 

 

(3,353

)

 

 

594,493

 

Mortgage-backed and asset-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency mortgage-backed securities

 

 

468,255

 

 

 

3,858

 

 

 

(7,051

)

 

 

471,448

 

Residential mortgage obligations

 

 

16,970

 

 

 

439

 

 

 

(37

)

 

 

16,568

 

Asset-backed securities

 

 

331,567

 

 

 

1,470

 

 

 

(769

)

 

 

330,866

 

Commercial mortgage-backed securities

 

 

147,353

 

 

 

2,670

 

 

 

(1,843

)

 

 

146,526

 

Subtotal

 

$

964,145

 

 

$

8,437

 

 

$

(9,700

)

 

$

965,408

 

Corporate exposures

 

 

856,211

 

 

 

12,948

 

 

 

(3,741

)

 

 

847,004

 

Total fixed maturities

 

$

2,695,277

 

 

$

37,267

 

 

$

(20,465

)

 

$

2,678,475

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stocks

 

$

169,905

 

 

$

29,474

 

 

$

(652

)

 

$

141,083

 

Preferred stocks

 

 

192,309

 

 

 

7,702

 

 

 

(1,220

)

 

 

185,827

 

Total Equity securities

 

$

362,214

 

 

$

37,176

 

 

$

(1,872

)

 

$

326,910

 

Short-term investments

 

 

123,846

 

 

 

50

 

 

 

—

 

 

 

123,796

 

Total investments

 

$

3,181,337

 

 

$

74,493

 

 

$

(22,337

)

 

$

3,129,181

 

 

 

 

December 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

 

$

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 exposures

 

 

838,057

 

 

 

10,185

 

 

 

(5,528

)

 

 

833,400

 

Total fixed maturities

 

$

2,635,882

 

 

$

32,071

 

 

$

(24,414

)

 

$

2,628,225

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stocks

 

$

164,087

 

 

$

24,677

 

 

$

(964

)

 

$

140,374

 

Preferred stocks

 

 

185,055

 

 

 

2,339

 

 

 

(4,821

)

 

 

187,537

 

Total 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

 

 
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, 2017 are shown in the following table:

 

 

 

March 31, 2017

 

 

 

Fair

 

 

Amortized

 

amounts in thousands

 

Value

 

 

Cost

 

Due in one year or less

 

$

173,505

 

 

$

174,014

 

Due after one year through five years

 

 

732,625

 

 

 

730,523

 

Due after five years through ten years

 

 

321,037

 

 

 

315,580

 

Due after ten years

 

 

503,965

 

 

 

492,950

 

Mortgage-backed and asset-backed securities

 

 

964,145

 

 

 

965,408

 

Total

 

$

2,695,277

 

 

$

2,678,475

 

 
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, 2017 and December 31, 2016, 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, 2017

 

 

 

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

 

$

153,332

 

 

$

(2,275

)

 

$

11,844

 

 

$

(1,396

)

 

$

165,176

 

 

$

(3,671

)

States, municipalities and political subdivisions

 

 

120,372

 

 

 

(2,534

)

 

 

17,706

 

 

 

(819

)

 

 

138,078

 

 

 

(3,353

)

Mortgage-backed and asset-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency mortgage-backed securities

 

 

347,179

 

 

 

(6,622

)

 

 

11,810

 

 

 

(429

)

 

 

358,989

 

 

 

(7,051

)

Residential mortgage obligations

 

 

486

 

 

 

(5

)

 

 

1,204

 

 

 

(32

)

 

 

1,690

 

 

 

(37

)

Asset-backed securities

 

 

68,847

 

 

 

(708

)

 

 

17,944

 

 

 

(61

)

 

 

86,791

 

 

 

(769

)

Commercial mortgage-backed securities

 

 

51,336

 

 

 

(1,024

)

 

 

6,385

 

 

 

(819

)

 

 

57,721

 

 

 

(1,843

)

Subtotal

 

$

467,848

 

 

$

(8,359

)

 

$

37,343

 

 

$

(1,341

)

 

$

505,191

 

 

$

(9,700

)

Corporate exposures

 

 

269,427

 

 

 

(3,571

)

 

 

21,901

 

 

 

(170

)

 

 

291,328

 

 

 

(3,741

)

Total fixed maturities

 

$

1,010,979

 

 

$

(16,739

)

 

$

88,794

 

 

$

(3,726

)

 

$

1,099,773

 

 

$

(20,465

)

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stocks

 

$

28,586

 

 

$

(652

)

 

$

—

 

 

$

—

 

 

$

28,586

 

 

$

(652

)

Preferred Stocks

 

 

42,470

 

 

 

(1,128

)

 

 

2,557

 

 

 

(92

)

 

 

45,027

 

 

 

(1,220

)

Total Equity securities

 

$

71,056

 

 

$

(1,780

)

 

$

2,557

 

 

$

(92

)

 

$

73,613

 

 

$

(1,872

)

Total fixed maturities and equity securities

 

$

1,082,035

 

 

$

(18,519

)

 

$

91,351

 

 

$

(3,818

)

 

$

1,173,386

 

 

$

(22,337

)

 

 

 

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 exposures

 

 

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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stocks

 

$

31,272

 

 

$

(634

)

 

$

1,471

 

 

$

(330

)

 

$

32,743

 

 

$

(964

)

Preferred stocks

 

 

113,742

 

 

 

(4,785

)

 

 

523

 

 

 

(36

)

 

 

114,265

 

 

 

(4,821

)

Total 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

)

 
Net Investment Income

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

 

 

 

Three Months Ended March 31,

 

 

amounts in thousands

 

2017

 

 

2016

 

 

Fixed maturities

 

$

18,341

 

 

$

16,737

 

 

Equity securities

 

 

3,784

 

 

 

3,447

 

 

Short-term investments

 

 

212

 

 

 

210

 

 

Total investment income

 

$

22,337

 

 

$

20,394

 

 

Investment expenses

 

 

(889

)

 

 

(800

)

 

Net investment income

 

$

21,448

 

 

$

19,594

 

 

 
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

 

2017

 

 

2016

 

 

Fixed maturities:

 

 

 

 

 

 

 

 

 

Gains

 

$

468

 

 

$

2,548

 

 

Losses

 

 

(1,256

)

 

 

(1,127

)

 

Fixed maturities, net

 

$

(788

)

 

$

1,421

 

 

Short-term:

 

 

 

 

 

 

 

 

 

Gains

 

$

112

 

 

$

268

 

 

Losses

 

 

(191

)

 

 

(83

)

 

Short-term, net

 

$

(79

)

 

$

185

 

 

Equity securities:

 

 

 

 

 

 

 

 

 

Gains

 

$

1,916

 

 

$

609

 

 

Losses

 

 

—

 

 

 

(618

)

 

Equity securities, net

 

$

1,916

 

 

$

(9

)

 

Net realized gains

 

$

1,049

 

 

$

1,597