Investments in debt and equity securities

9 Months Ended

Sep. 30, 2013

Investments in debt and equity securities

NOTE 2

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

	September 30, 2013				December 31, 2012
	Amortized costs		Fair values		Amortized costs		Fair values
	($000 omitted)
Debt securities:
Municipal		47,951		47,396		18,012		19,011
Corporate and utilities		277,619		285,356		268,874		287,528
Foreign		168,363		167,174		168,084		169,009
U.S. Government		14,339		15,327		15,243		16,638
Equity securities		15,247		17,171		10,870		11,073
		523,519		532,424		481,083		503,259

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

Gross unrealized gains and losses were:

	September 30, 2013				December 31, 2012
	Gains		Losses		Gains		Losses
	($000 omitted)
Debt securities:
Municipal		334		889		1,006		7
Corporate and utilities		10,279		2,542		19,141		486
Foreign		388		1,577		1,210		286
U.S. Government		1,034		46		1,395		—
Equity securities		2,036		112		278		75
		14,071		5,166		23,030		854

Debt securities as of September 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		67,127		67,161
After one year through five years		185,181		189,487
After five years through ten years		218,893		221,719
After ten years		37,071		36,886
		508,272		515,253

As of September 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		852		31,494		37		636		889		32,130
Corporate and utilities		2,542		61,939		—		—		2,542		61,939
U.S. Government		46		3,543		—		—		46		3,543
Foreign		1,229		75,931		348		71,491		1,577		147,422
Equity securities		112		2,152		—		—		112		2,152
		4,781		175,059		385		72,127		5,166		247,186

The number of investments in an unrealized loss position as of September 30, 2013 was 108. 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.