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Investments
 6 Months Ended
Jun. 30, 2012
Investments [Abstract]  
Investments
(2) Investments:
 
The following is a summary of available-for-sale securities at June 30, 2012 and December 31, 2011:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net
 
 
 
 
 
Cost or
 
 
Gross
 
 
Gross
 
 
Unrealized
 
 
Fair
 
 
Amortized
 
 
Unrealized
 
 
Unrealized
 
 
Gains
 
 
Value
 
 
Cost
 
 
Gains
 
 
Losses
 
 
(Losses)
 
June 30, 2012:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   U.S. government obligations
 
$
69,433
 
 
$
69,433
 
 
$
52
 
 
$
(52
)
 
$
-
 
   Residential mortgage-backed securities
 
 
18,165
 
 
 
18,347
 
 
 
533
 
 
 
(715
)
 
 
(182
)
   Commercial mortgage-backed securities
 
 
15,153
 
 
 
14,821
 
 
 
490
 
 
 
(158
)
 
 
332
 
   States and municipal obligations
 
 
174,216
 
 
 
173,165
 
 
 
1,092
 
 
 
(41
)
 
 
1,051
 
   Corporate securities
 
 
112,182
 
 
 
111,368
 
 
 
1,844
 
 
 
(1,030
)
 
 
814
 
   Foreign government obligations
 
 
21,499
 
 
 
21,650
 
 
 
161
 
 
 
(312
)
 
 
(151
)
      Total fixed maturities
 
 
410,648
 
 
 
408,784
 
 
 
4,172
 
 
 
(2,308
)
 
 
1,864
 
   Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Financial institutions
 
 
10,121
 
 
 
5,012
 
 
 
5,260
 
 
 
(151
)
 
 
5,109
 
   Industrial & Miscellaneous
 
 
90,956
 
 
 
51,787
 
 
 
41,184
 
 
 
(2,015
)
 
 
39,169
 
      Total equity securities
 
 
101,077
 
 
 
56,799
 
 
 
46,444
 
 
 
(2,166
)
 
 
44,278
 
      Total available-for-sale securities
 
$
511,725
 
 
$
465,583
 
 
$
50,616
 
 
$
(4,474
)
 
 
46,142
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Applicable federal income taxes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(16,150
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains - net of tax
 
 
 
 
 
 
 
 
 
 
 
$
29,992
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2011:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   U.S. government obligations
 
$
73,137
 
 
$
73,009
 
 
$
139
 
 
$
(11
)
 
$
128
 
   Government sponsored entities
 
 
349
 
 
 
345
 
 
 
4
 
 
 
-
 
 
 
4
 
   Residential mortgage-backed securities
 
 
21,872
 
 
 
21,778
 
 
 
619
 
 
 
(525
)
 
 
94
 
   Commercial mortgage-backed securities
 
 
11,300
 
 
 
11,388
 
 
 
116
 
 
 
(204
)
 
 
(88
)
   States and municipal obligations
 
 
190,035
 
 
 
188,991
 
 
 
1,275
 
 
 
(231
)
 
 
1,044
 
   Corporate securities
 
 
91,646
 
 
 
91,949
 
 
 
1,429
 
 
 
(1,732
)
 
 
(303
)
   Foreign government obligations
 
 
21,121
 
 
 
21,483
 
 
 
168
 
 
 
(530
)
 
 
(362
)
      Total fixed maturities
 
 
409,460
 
 
 
408,943
 
 
 
3,750
 
 
 
(3,233
)
 
 
517
 
   Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Financial institutions
 
 
9,428
 
 
 
4,955
 
 
 
4,778
 
 
 
(305
)
 
 
4,473
 
   Industrial & Miscellaneous
 
 
78,657
 
 
 
42,736
 
 
 
36,921
 
 
 
(1,000
)
 
 
35,921
 
      Total equity securities
 
 
88,085
 
 
 
47,691
 
 
 
41,699
 
 
 
(1,305
)
 
 
40,394
 
      Total available-for-sale securities
 
$
497,545
 
 
$
456,634
 
 
$
45,449
 
 
$
(4,538
)
 
 
40,911
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Applicable federal income taxes
 
   
 
 
 
(14,319
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains - net of tax
 
   
 
 
$
26,592
 

The Company has five other-than-temporarily impaired fixed maturity securities at June 30, 2012.  The Company has three and one, other-than-temporary impairment losses relating to fixed maturity securities recognized in accumulated other comprehensive income as of June 30, 2012 and December 31, 2011, respectively.

The following table summarizes, for fixed maturity and equity security investments in an unrealized loss position at June 30, 2012 and December 31, 2011, respectively, the aggregate fair value and gross unrealized loss categorized by the duration those securities have been continuously in an unrealized loss position.
 
 
June 30, 2012
 
 
December 31, 2011
 
 
Number
of
Securities
 
 
Fair
Value
 
 
Gross
Unrealized
Loss
 
 
Number
of
Securities
 
 
Fair
 Value
 
 
Gross
Unrealized
Loss
 
Fixed maturity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
12 months or less
 
 
204
 
 
$
98,248
 
 
$
(1,978
)
 
 
206
 
 
$
86,470
 
 
$
(2,303
)
Greater than 12 months
 
 
35
 
 
 
14,548
 
 
 
(330
)
 
 
44
 
 
 
11,930
 
 
 
(930
)
Total fixed maturities
 
 
239
 
 
 
112,796
 
 
 
(2,308
)
 
 
250
 
 
 
98,400
 
 
 
(3,233
)
Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
12 months or less
 
 
33
 
 
 
11,244
 
 
 
(1,785
)
 
 
35
 
 
 
8,317
 
 
 
(1,275
)
Greater than 12 months
 
 
10
 
 
 
3,460
 
 
 
(381
)
 
 
4
 
 
 
216
 
 
 
(30
)
Total equity securities
 
 
43
 
 
 
14,704
 
 
 
(2,166
)
 
 
39
 
 
 
8,533
 
 
 
(1,305
)
Total fixed maturity and equity securities
 
 
282
 
 
$
127,500
 
 
$
(4,474
)
 
 
289
 
 
$
106,933
 
 
$
(4,538
)
 
The fair value and the cost or amortized cost of fixed maturity investments, at June 30, 2012, by contractual maturity, are shown below.  Actual maturities may ultimately differ from contractual maturities because borrowers have, in some cases, the right to call or prepay obligations with or without call or prepayment penalties. Pre-refunded municipal bonds are classified based on their pre-refunded call dates.

 
Fair
Value
 
 
Cost or
Amortized
Cost
 
 
 
 
 
 
 
One year or less
 
$
129,753
 
 
$
129,659
 
Excess of one year to five years
 
 
211,721
 
 
 
210,120
 
Excess of five years to ten years
 
 
22,174
 
 
 
22,204
 
Excess of ten years
 
 
3,155
 
 
 
3,036
 
   Total maturities
 
 
366,803
 
 
 
365,019
 
Asset-backed securities
 
 
43,845
 
 
 
43,765
 
 
$
410,648
 
 
$
408,784
 

Following is a summary of the components of net realized gains (losses) on investments for the periods presented in the accompanying statements of operations.

 
Three Months Ended
 
 
Six Months Ended
 
 
June 30
 
 
June 30
 
 
2012
 
 
2011
 
 
2012
 
 
2011
 
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
   Gross gains
 
$
792
 
 
$
1,161
 
 
$
1,342
 
 
$
2,158
 
   Gross losses
 
 
(1,181
)
 
 
(402
)
 
 
(2,152
)
 
 
(1,869
)
      Net gains (losses)
 
 
(389
)
 
 
759
 
 
 
(810
)
 
 
289
 
Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Gross gains
 
 
152
 
 
 
1,198
 
 
 
675
 
 
 
2,229
 
   Gross losses
 
 
(333
)
 
 
(283
)
 
 
(475
)
 
 
(773
)
      Net gains (losses)
 
 
(181
)
 
 
915
 
 
 
200
 
 
 
1,456
 
Limited partnerships - net gain (loss)
 
 
(4,883
)
 
 
(3,637
)
 
 
537
 
 
 
(5,177
)
      Total net losses
 
$
(5,453
)
 
$
(1,963
)
 
$
(73
)
 
$
(3,432
)

Gains and losses activity for investments, as shown in the previous table, are further detailed as follows:

 
Three Months Ended
 
 
Six Months Ended
 
 
June 30
 
 
June 30
 
 
2012
 
 
2011
 
 
2012
 
 
2011
 
 
 
 
 
 
 
 
 
 
 
 
 
Realized net gains (losses) on the disposal of securities
 
$
(109
)
 
$
1,636
 
 
$
(205
)
 
$
2,044
 
Mark-to-market adjustment
 
 
(369
)
 
 
156
 
 
 
(313
)
 
 
(645
)
Equity in (losses) of limited partnership investments - realized and unrealized
 
 
(4,883
)
 
 
(3,637
)
 
 
537
 
 
 
(5,177
)
Impairment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Write-downs based upon objective criteria
 
 
(345
)
 
 
(118
)
 
 
(345
)
 
 
(118
)
  Recovery of prior write-downs upon sale or disposal
 
 
253
 
 
 
-
 
 
 
253
 
 
 
464
 
Totals
 
$
(5,453
)
 
$
(1,963
)
 
$
(73
)
 
$
(3,432
)
 
The mark-to-market adjustments in the table above represent the changes in fair value of (1) options embedded in convertible debt securities and (2) insurance-linked securities held by the Company.

The income (loss) from limited partnerships for the quarter and year-to-date periods ending June 30, 2012 includes an estimated $1,670 net unrealized losses and $3,861 of net unrealized gains, respectively, reported to the Company as part of the underlying assets of the various limited partnerships.  The value of limited partnerships at June 30, 2012 includes approximately $306 of net unrealized losses reported to the Company as part of the underlying assets of the various limited partnerships. Shareholders' equity at June 30, 2012 includes approximately $15,877, net of deferred federal income taxes, of earnings undistributed by limited partnerships.