Investments in debt and equity securities

6 Months Ended

Jun. 30, 2013

Investments in debt and equity securities

NOTE 2

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

	June 30, 2013				December 31, 2012
	Amortized costs		Fair values		Amortized costs		Fair values
	($000 omitted)
Debt securities:
Municipal		38,945		38,296		18,012		19,011
Corporate and utilities		269,574		276,174		268,874		287,528
Foreign		161,417		160,167		168,084		169,009
U.S. Government		14,340		15,373		15,243		16,638
Equity securities		10,870		12,580		10,870		11,073
		495,146		502,590		481,083		503,259

Foreign debt securities primarily include Canadian government bonds, Canadian corporate bonds and United Kingdom treasury bonds.

Gross unrealized gains and losses were:

	June 30, 2013				December 31, 2012
	Gains		Losses		Gains		Losses
	($000 omitted)
Debt securities:
Municipal		250		899		1,006		7
Corporate and utilities		9,527		2,927		19,141		486
Foreign		298		1,548		1,210		286
U.S. Government		1,098		65		1,395		—
Equity securities		1,710		—		278		75
		12,883		5,439		23,030		854

Debt securities as of June 30, 2013 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		73,847		73,886
After one year through five years		169,797		173,354
After five years through ten years		206,461		208,608
After ten years		34,171		34,162
		484,276		490,010

As of June 30, 2013, 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		899		27,431		—		—		899		27,431
Corporate and utilities		2,927		78,759		—		—		2,927		78,759
U.S. Government		65		4,048		—		—		65		4,048
Foreign		1,358		89,224		190		62,852		1,548		152,076
Equity securities		—		—		—		—		—		—
		5,249		199,462		190		62,852		5,439		262,314

The number of investments in an unrealized loss position as of June 30, 2013 was 106. 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, 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		7		697		—		—		7		697
Corporate and utilities		486		30,538		—		—		486		30,538
Foreign		168		41,056		118		59,538		286		100,594
Equity securities:		75		2,197		—		—		75		2,197
		736		74,488		118		59,538		854		134,026

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.