Investments in Debt and Equity Securities

9 Months Ended

Sep. 30, 2012

Investments in Debt and Equity Securities [Abstract]

Investments in debt and equity securities

NOTE 2

Investments in debt and equity securities. The amortized costs and fair values follow:

	September 30, 2012				December 31, 2011
	Amortized costs		Fair values		Amortized costs		Fair values
	($000 omitted)
Debt securities:
Municipal		16,903		17,892		26,721		27,801
Corporate and utilities		246,332		265,255		237,912		244,123
Foreign		169,834		171,026		162,384		164,268
U.S. Government		17,224		18,750		17,530		19,350
Equity securities		9,348		10,857		5,005		5,443
		459,641		483,780		449,552		460,985

Gross unrealized gains and losses were:

	September 30, 2012				December 31, 2011
	Gains		Losses		Gains		Losses
	($000 omitted)
Debt securities:
Municipal		998		9		1,080		—
Corporate and utilities		18,924		1		9,184		2,973
Foreign		1,494		302		1,937		53
U.S. Government		1,526		—		1,820		—
Equity securities		1,779		270		442		4
		24,721		582		14,463		3,030

Debt securities as of September 30, 2012 mature, according to their contractual terms, as follows (actual maturities may differ due to call or prepayment rights):

	Amortized costs		Fair values
	($000 omitted)
In one year or less		11,763		11,881
After one year through five years		223,740		228,916
After five years through ten years		188,765		203,619
After ten years		26,025		28,507
		450,293		472,923

As of September 30, 2012, gross unrealized losses on investments and the fair values of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were:

	Less than 12 months				More than 12 months				Total
	Losses		Fair values		Losses		Fair values		Losses		Fair values
	($000 omitted)
Debt securities:
Municipal		9		697		—		—		9		697
Corporate and utilities		1		653		—		—		1		653
Foreign		302		74,338		—		—		302		74,338
U.S. Government		—		—		—		—		—		—
Equity securities		245		1,783		25		1,106		270		2,889
		557		77,471		25		1,106		582		78,577

The number of investments in an unrealized loss position as of September 30, 2012 was 15. Since the Company does not intend to sell and will more-likely-than-not maintain each debt security until its anticipated recovery, and no significant credit risk is deemed to exist, these investments are not considered other-than-temporarily impaired.

As of December 31, 2011, gross unrealized losses on investments and the fair values of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were:

	Less than 12 months				More than 12 months				Total
	Losses		Fair values		Losses		Fair values		Losses		Fair values
	($000 omitted)
Debt securities:
Corporate and utilities		1,944		42,851		1,029		24,830		2,973		67,681
Foreign		53		59,708		—		—		53		59,708
Equity securities		4		1,247		—		—		4		1,247
		2,001		103,806		1,029		24,830		3,030		128,636

The Company believes its investment portfolio is diversified and expects no material loss to result from the failure to perform by issuers of the debt securities it holds. Investments made by the Company are not collateralized. Foreign debt securities primarily include Canadian government bonds and United Kingdom treasury bonds.