Investments (Tables)

6 Months Ended

Jun. 30, 2013

Investments Debt And Equity Securities [Abstract]

Summary of Amortized Cost and Estimated Fair Value of Fixed Maturities

The amortized cost and estimated fair values of our fixed maturities and equity securities at June 30, 2013 were as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(in thousands)
Held to Maturity
Obligations of states and political subdivisions	$	34,256	$	909	$	—	$	35,165
Residential mortgage-backed securities		115		7		—		122
Totals	$	34,371	$	916	$	—	$	35,287
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(in thousands)
Available for Sale
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	88,497	$	177	$	3,139	$	85,535
Obligations of states and political subdivisions		399,950		15,733		9,622		406,061
Corporate securities		66,530		1,583		1,203		66,910
Residential mortgage-backed securities		121,757		1,116		2,341		120,532
Fixed maturities		676,734		18,609		16,305		679,038
Equity securities		8,938		136		168		8,906
Totals	$	685,672	$	18,745	$	16,473	$	687,944

The amortized cost and estimated fair values of our fixed maturities and equity securities at December 31, 2012 were as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(in thousands)
Held to Maturity
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	1,000	$	12	$	—	$	1,012
Obligations of states and political subdivisions		40,909		1,609		—		42,518
Residential mortgage-backed securities		191		15		—		206
Totals	$	42,100	$	1,636	$	—	$	43,736
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(in thousands)
Available for Sale
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	70,254	$	1,101	$	44	$	71,311
Obligations of states and political subdivisions		385,372		32,221		606		416,987
Corporate securities		73,942		3,523		109		77,356
Residential mortgage-backed securities		125,606		3,316		66		128,856
Fixed maturities		655,174		40,161		825		694,510
Equity securities		8,663		201		107		8,757
Totals	$	663,837	$	40,362	$	932	$	703,267

Summary of Amortized Cost and Estimated Fair Value of Fixed Maturities by Contractual Maturity

We show below the amortized cost and estimated fair value of our fixed maturities at June 30, 2013 by contractual maturity. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized Cost		Estimated Fair Value
	(in thousands)
Held to maturity
Due in one year or less	$	500	$	500
Due after one year through five years		28,800		29,566
Due after five years through ten years		4,956		5,099
Due after ten years		—		—
Residential mortgage-backed securities		115		122
Total held to maturity	$	34,371	$	35,287
Available for sale
Due in one year or less	$	11,055	$	11,215
Due after one year through five years		55,883		56,907
Due after five years through ten years		216,350		219,694
Due after ten years		271,689		270,690
Residential mortgage-backed securities		121,757		120,532
Total available for sale	$	676,734	$	679,038

Summary of Gross Realized Gains and Losses from Investments before Applicable Income Taxes

Gross realized gains and losses from investments before applicable income taxes were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
	(in thousands)
Gross realized gains:
Fixed maturities	$	1,389	$	2,199	$	2,340	$	3,695
Equity securities		267		98		741		927
		1,656		2,297		3,081		4,622
Gross realized losses:
Fixed maturities		10		2		24		7
Equity securities		392		767		462		777
		402		769		486		784
Net realized gains	$	1,254	$	1,528	$	2,595	$	3,838

Summary of Fixed Maturities and Equity Securities with Unrealized Losses

We held fixed maturities and equity securities with unrealized losses representing declines that we considered temporary at June 30, 2013 as follows:

	Less Than 12 Months				More Than 12 Months
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(in thousands)
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	75,256	$	3,139	$	—	$	—
Obligations of states and political subdivisions		101,956		9,622		—		—
Corporate securities		20,838		1,203		—		—
Residential mortgage-backed securities		73,008		2,341		—		—
Equity securities		2,920		168		—		—
Totals	$	273,978	$	16,473	$	—	$	—

We held fixed maturities and equity securities with unrealized losses representing declines that we considered temporary at December 31, 2012 as follows:

	Less Than 12 Months				More Than 12 Months
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(in thousands)
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	12,308	$	44	$	—	$	—
Obligations of states and political subdivisions		22,134		606		—		—
Corporate securities		12,272		79		2,959		30
Residential mortgage-backed securities		22,492		66		—		—
Equity securities		2,226		107		—		—
Totals	$	71,432	$	902	$	2,959	$	30

Summary of Financial Information

The financial information of DFSC at June 30, 2013 and for the three and six months then ended is unaudited.

Balance sheets:

	June 30, 2013		December 31, 2012
	(in thousands)
Total assets	$	514,654	$	509,670
Total liabilities	$	440,762	$	433,490
Stockholders’ equity		73,892		76,180
Total liabilities and stockholders’ equity	$	514,654	$	509,670

Income statements:

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
	(in thousands)
Net income	$	1,401	$	2,303	$	3,659	$	4,739