Investments in debt and equity securities

3 Months Ended

Mar. 31, 2014

Investments in debt and equity securities

NOTE 2

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

	March 31, 2014				December 31, 2013
	Amortized costs		Fair values		Amortized costs		Fair values
	($000 omitted)
Debt securities:
Municipal		58,110		58,111		47,808		47,252
Corporate		292,770		302,852		285,104		291,832
Foreign		161,203		161,192		164,146		162,367
U.S. Government		14,332		15,112		14,334		15,197
Equity securities		17,441		21,300		17,441		20,695
		543,856		558,567		528,833		537,343

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

Gross unrealized gains and losses were:

	March 31, 2014				December 31, 2013
	Gains		Losses		Gains		Losses
	($000 omitted)
Debt securities:
Municipal		561		560		258		813
Corporate		11,770		1,688		9,955		3,228
Foreign		862		873		363		2,142
U.S. Government		832		52		924		60
Equity securities		3,959		100		3,264		11
		17,984		3,273		14,764		6,254

Debt securities as of March 31, 2014 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		15,666		15,771
After one year through five years		298,735		305,191
After five years through ten years		184,351		187,722
After ten years		27,663		28,583
		526,415		537,267

As of March 31, 2014, 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		267		17,441		293		15,678		560		33,119
Corporate		243		26,204		1,445		30,146		1,688		56,350
Foreign		732		63,711		141		6,721		873		70,432
U.S. Government		52		3,782		—		—		52		3,782
Equity securities		100		1,150		—		—		100		1,150
		1,394		112,288		1,879		52,545		3,273		164,833

The number of investments in an unrealized loss position as of March 31, 2014 was 93. 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, 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		770		27,686		43		628		813		28,314
Corporate		1,682		66,776		1,546		21,710		3,228		88,486
Foreign		1,539		63,039		603		53,807		2,142		116,846
U.S. Government		60		3,772		—		—		60		3,772
Equity securities:		11		1,267		—		—		11		1,267
		4,062		162,540		2,192		76,145		6,254		238,685

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.