Investments (Tables)

9 Months Ended

Sep. 30, 2014

Investments, Debt and Equity Securities [Abstract]

Summary of Amortized Cost and Estimated Fair Value of Fixed Maturities and Equity Securities

The amortized cost and estimated fair values of our fixed maturities and equity securities at September 30, 2014 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	$	53,509	$	870	$	27	$	54,352
Obligations of states and political subdivisions		108,931		9,067		42		117,956
Corporate securities		52,171		779		227		52,723
Mortgage-backed securities		94,330		966		345		94,951
Totals	$	308,941	$	11,682	$	641	$	319,982

	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	$	18,887	$	95	$	43	$	18,939
Obligations of states and political subdivisions		248,645		18,329		—		266,974
Corporate securities		58,209		967		41		59,135
Mortgage-backed securities		85,254		1,475		156		86,573
Fixed maturities		410,995		20,866		240		431,621
Equity securities		29,788		745		446		30,087
Totals	$	440,783	$	21,611	$	686	$	461,708

The amortized cost and estimated fair values of our fixed maturities and equity securities at December 31, 2013 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	$	47,946	$	—	$	870	$	47,076
Obligations of states and political subdivisions		108,435		465		446		108,454
Corporate securities		14,875		17		112		14,780
Mortgage-backed securities		69,114		33		667		68,480
Totals	$	240,370	$	515	$	2,095	$	238,790

	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	$	14,272	$	118	$	57	$	14,333
Obligations of states and political subdivisions		265,783		11,779		15		277,547
Corporate securities		39,940		775		43		40,672
Mortgage-backed securities		70,259		923		82		71,100
Fixed maturities		390,254		13,595		197		403,652
Equity securities		12,168		348		93		12,423
Totals	$	402,422	$	13,943	$	290	$	416,075

Summary of Reclassifications of Fixed Maturities at Fair Value

The following table summarizes the reclassifications by type of securities at November 30, 2013:

	Amortized Cost		Estimated Fair Value
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	50,627,225	$	47,914,311
Obligations of states and political subdivisions		88,456,842		79,866,801
Corporate securities		15,745,976		14,879,294
Mortgage-backed securities		72,465,250		69,567,883
Totals	$	227,295,293	$	212,228,289

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 September 30, 2014 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	$	3,621	$	3,633
Due after one year through five years		28,376		28,535
Due after five years through ten years		84,257		85,916
Due after ten years		98,357		106,947
Mortgage-backed securities		94,330		94,951
Total held to maturity	$	308,941	$	319,982
Available for sale
Due in one year or less	$	10,749	$	10,794
Due after one year through five years		67,063		68,322
Due after five years through ten years		119,805		126,944
Due after ten years		128,124		138,988
Mortgage-backed securities		85,254		86,573
Total available for sale	$	410,995	$	431,621

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 September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
	(in thousands)				(in thousands)
Gross realized gains:
Fixed maturities	$	19	$	390	$	1,367	$	2,730
Equity securities		407		352		1,059		1,093
		426		742		2,426		3,823
Gross realized losses:
Fixed maturities		33		304		34		328
Equity securities		42		89		95		551
		75		393		129		879
Net realized gains	$	351	$	349	$	2,297	$	2,944

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 September 30, 2014 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	$	15,007	$	60	$	2,254	$	10
Obligations of states and political subdivisions		8,119		42		—		—
Corporate securities		25,323		268		—		—
Mortgage-backed securities		34,106		210		13,535		291
Equity securities		8,319		446		—		—
Totals	$	90,874	$	1,026	$	15,789	$	301

We held fixed maturities and equity securities with unrealized losses representing declines that we considered temporary at December 31, 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	$	50,803	$	822	$	4,642	$	104
Obligations of states and political subdivisions		65,171		363		13,405		99
Corporate securities		16,694		84		6,852		72
Mortgage-backed securities		72,878		536		19,014		213
Equity securities		1,629		93		—		—
Totals	$	207,175	$	1,898	$	43,913	$	488

Summary of Financial Information

The financial information of DFSC at September 30, 2014 and for the three and nine months then ended is unaudited.

Balance sheets:	September 30, 2014		December 31, 2013
	(in thousands)
Total assets	$	510,549	$	512,578
Total liabilities	$	430,084	$	438,649
Stockholders’ equity		80,465		73,929
Total liabilities and stockholders’ equity	$	510,549	$	512,578

	Three Months Ended September 30,				Nine Months Ended September 30,
Income statements:	2014		2013		2014		2013
	(in thousands)				(in thousands)
Net income	$	989	$	1,525	$	2,561	$	5,184