|
Investments (Tables)
|
9 Months Ended |
|
Sep. 30, 2012
|
| Investments [Abstract] |
|
| Available-For-Sale Investments |
The following tables summarize the Company’s available-for-sale investments.
| | | | | | | | | | | | | | | | | | | | | | September 30, 2012 | (dollars in thousands) | Amortized Cost | | Gross Unrealized Holding Gains | | Gross Unrealized Holding Losses | | Unrealized Other-Than- Temporary Impairment Losses | | Estimated Fair Value | Fixed maturities: | | | | | | | | | | U.S. Treasury securities and obligations of U.S. government agencies | $ | 300,491 |
| | $ | 21,462 |
| | $ | — |
| | $ | — |
| | $ | 321,953 |
| Obligations of states, municipalities and political subdivisions | 2,653,298 |
| | 257,461 |
| | (341 | ) | | — |
| | 2,910,418 |
| Foreign governments | 544,544 |
| | 57,673 |
| | (1 | ) | | — |
| | 602,216 |
| Residential mortgage-backed securities | 261,089 |
| | 19,515 |
| | (3 | ) | | (2,258 | ) | | 278,343 |
| Asset-backed securities | 14,332 |
| | 676 |
| | — |
| | — |
| | 15,008 |
| Public utilities | 56,432 |
| | 5,221 |
| | — |
| | — |
| | 61,653 |
| All other corporate bonds | 1,003,063 |
| | 94,765 |
| | (79 | ) | | (6,791 | ) | | 1,090,958 |
| Total fixed maturities | 4,833,249 |
| | 456,773 |
| | (424 | ) | | (9,049 | ) | | 5,280,549 |
| Equity securities: | | | | | | | | | | Insurance companies, banks and trusts | 442,119 |
| | 383,397 |
| | (1,798 | ) | | — |
| | 823,718 |
| Industrial, consumer and all other | 933,287 |
| | 590,506 |
| | (6,258 | ) | | — |
| | 1,517,535 |
| Total equity securities | 1,375,406 |
| | 973,903 |
| | (8,056 | ) | | — |
| | 2,341,253 |
| Short-term investments | 729,029 |
| | 15 |
| | (2 | ) | | — |
| | 729,042 |
| Investments, available-for-sale | $ | 6,937,684 |
| | $ | 1,430,691 |
| | $ | (8,482 | ) | | $ | (9,049 | ) | | $ | 8,350,844 |
|
| | | | | | | | | | | | | | | | | | | | | | December 31, 2011 | (dollars in thousands) | Amortized Cost | | Gross Unrealized Holding Gains | | Gross Unrealized Holding Losses | | Unrealized Other-Than- Temporary Impairment Losses | | Estimated Fair Value | Fixed maturities: | | | | | | | | | | U.S. Treasury securities and obligations of U.S. government agencies | $ | 299,413 |
| | $ | 22,789 |
| | $ | (9 | ) | | $ | — |
| | $ | 322,193 |
| Obligations of states, municipalities and political subdivisions | 2,729,838 |
| | 201,477 |
| | (794 | ) | | — |
| | 2,930,521 |
| Foreign governments | 572,253 |
| | 45,629 |
| | (1,068 | ) | | — |
| | 616,814 |
| Residential mortgage-backed securities | 366,859 |
| | 24,601 |
| | (18 | ) | | (2,258 | ) | | 389,184 |
| Asset-backed securities | 16,096 |
| | 731 |
| | (9 | ) | | — |
| | 16,818 |
| Public utilities | 63,965 |
| | 5,462 |
| | — |
| | — |
| | 69,427 |
| All other corporate bonds | 1,124,528 |
| | 78,053 |
| | (2,750 | ) | | (6,614 | ) | | 1,193,217 |
| Total fixed maturities | 5,172,952 |
| | 378,742 |
| | (4,648 | ) | | (8,872 | ) | | 5,538,174 |
| Equity securities: | | | | | | | | | | Insurance companies, banks and trusts | 389,421 |
| | 296,648 |
| | (1,366 | ) | | — |
| | 684,703 |
| Industrial, consumer and all other | 766,873 |
| | 425,131 |
| | (2,780 | ) | | — |
| | 1,189,224 |
| Total equity securities | 1,156,294 |
| | 721,779 |
| | (4,146 | ) | | — |
| | 1,873,927 |
| Short-term investments | 541,014 |
| | 4 |
| | (4 | ) | | — |
| | 541,014 |
| Investments, available-for-sale | $ | 6,870,260 |
| | $ | 1,100,525 |
| | $ | (8,798 | ) | | $ | (8,872 | ) | | $ | 7,953,115 |
|
|
| Summary Of Gross Unrealized Investment Losses By Length Of Time That Securities Have Continuously Been In An Unrealized Loss Position |
The following tables summarize gross unrealized investment losses by the length of time that securities have continuously been in an unrealized loss position.
| | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2012 | | Less than 12 months | | 12 months or longer | | Total | (dollars in thousands) | Estimated Fair Value | | Gross Unrealized Holding and Other-Than- Temporary Impairment Losses | | Estimated Fair Value | | Gross Unrealized Holding and Other-Than- Temporary Impairment Losses | | Estimated Fair Value | | Gross Unrealized Holding and Other-Than- Temporary Impairment Losses | Fixed maturities: | | | | | | | | | | | | Obligations of states, municipalities and political subdivisions | $ | 2,114 |
| | $ | (50 | ) | | $ | 3,873 |
| | $ | (291 | ) | | $ | 5,987 |
| | $ | (341 | ) | Foreign governments | 14,530 |
| | (1 | ) | | — |
| | — |
| | 14,530 |
| | (1 | ) | Residential mortgage-backed securities | 560 |
| | (2,259 | ) | | 249 |
| | (2 | ) | | 809 |
| | (2,261 | ) | All other corporate bonds | — |
| | (6,791 | ) | | 3,900 |
| | (79 | ) | | 3,900 |
| | (6,870 | ) | Total fixed maturities | 17,204 |
| | (9,101 | ) | | 8,022 |
| | (372 | ) | | 25,226 |
| | (9,473 | ) | Equity securities: | | | | | | | | | | | | Insurance companies, banks and trusts | 18,449 |
| | (1,798 | ) | | — |
| | — |
| | 18,449 |
| | (1,798 | ) | Industrial, consumer and all other | 64,568 |
| | (6,123 | ) | | 1,971 |
| | (135 | ) | | 66,539 |
| | (6,258 | ) | Total equity securities | 83,017 |
| | (7,921 | ) | | 1,971 |
| | (135 | ) | | 84,988 |
| | (8,056 | ) | Short-term investments | 160,991 |
| | (2 | ) | | — |
| | — |
| | 160,991 |
| | (2 | ) | Total | $ | 261,212 |
| | $ | (17,024 | ) | | $ | 9,993 |
| | $ | (507 | ) | | $ | 271,205 |
| | $ | (17,531 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2011 | | Less than 12 months | | 12 months or longer | | Total | (dollars in thousands) | Estimated Fair Value | | Gross Unrealized Holding and Other-Than- Temporary Impairment Losses | | Estimated Fair Value | | Gross Unrealized Holding and Other-Than- Temporary Impairment Losses | | Estimated Fair Value | | Gross Unrealized Holding and Other-Than- Temporary Impairment Losses | Fixed maturities: | | | | | | | | | | | | U.S. Treasury securities and obligations of U.S. government agencies | $ | 32,384 |
| | $ | (9 | ) | | $ | — |
| | $ | — |
| | $ | 32,384 |
| | $ | (9 | ) | Obligations of states, municipalities and political subdivisions | 1,016 |
| | (2 | ) | | 17,261 |
| | (792 | ) | | 18,277 |
| | (794 | ) | Foreign governments | 40,340 |
| | (1,068 | ) | | — |
| | — |
| | 40,340 |
| | (1,068 | ) | Residential mortgage-backed securities | 489 |
| | (2,263 | ) | | 2,045 |
| | (13 | ) | | 2,534 |
| | (2,276 | ) | Asset-backed securities | — |
| | — |
| | 32 |
| | (9 | ) | | 32 |
| | (9 | ) | All other corporate bonds | 74,812 |
| | (7,829 | ) | | 7,923 |
| | (1,535 | ) | | 82,735 |
| | (9,364 | ) | Total fixed maturities | 149,041 |
| | (11,171 | ) | | 27,261 |
| | (2,349 | ) | | 176,302 |
| | (13,520 | ) | Equity securities: | | | | | | | | | | | | Insurance companies, banks and trusts | 26,514 |
| | (1,366 | ) | | — |
| | — |
| | 26,514 |
| | (1,366 | ) | Industrial, consumer and all other | 70,555 |
| | (2,774 | ) | | 18,525 |
| | (6 | ) | | 89,080 |
| | (2,780 | ) | Total equity securities | 97,069 |
| | (4,140 | ) | | 18,525 |
| | (6 | ) | | 115,594 |
| | (4,146 | ) | Short-term investments | 295,991 |
| | (4 | ) | | — |
| | — |
| | 295,991 |
| | (4 | ) | Total | $ | 542,101 |
| | $ | (15,315 | ) | | $ | 45,786 |
| | $ | (2,355 | ) | | $ | 587,887 |
| | $ | (17,670 | ) |
|
| Schedule Of Amortized Cost And Estimated Fair Value Of Fixed Maturities By Contractual Maturity Date |
The amortized cost and estimated fair value of fixed maturities at September 30, 2012 are shown below by contractual maturity.
| | | | | | | | | (dollars in thousands) | Amortized Cost | | Estimated Fair Value | Due in one year or less | $ | 311,759 |
| | $ | 316,794 |
| Due after one year through five years | 1,282,826 |
| | 1,398,701 |
| Due after five years through ten years | 1,617,285 |
| | 1,773,272 |
| Due after ten years | 1,345,958 |
| | 1,498,431 |
| | 4,557,828 |
| | 4,987,198 |
| Residential mortgage-backed securities | 261,089 |
| | 278,343 |
| Asset-backed securities | 14,332 |
| | 15,008 |
| Total fixed maturities | $ | 4,833,249 |
| | $ | 5,280,549 |
|
|
| Summary Of Activity For Credit Losses |
The following table summarizes the activity for credit losses recognized in net income on fixed maturities where other-than-temporary impairment was identified and a portion of the other-than-temporary impairment was included in other comprehensive income (loss).
| | | | | | | | | | | | | | | | | | Quarter Ended September 30, | | Nine Months Ended September 30, | (dollars in thousands) | 2012 | | 2011 | | 2012 | | 2011 | Cumulative credit loss, beginning balance | $ | 21,370 |
| | $ | 15,167 |
| | $ | 21,370 |
| | $ | 10,307 |
| Additions: | | | | | | | | Other-than-temporary impairment losses not previously recognized | — |
| | 875 |
| | — |
| | 875 |
| Increases related to other-than-temporary impairment losses previously recognized | — |
| | 598 |
| | — |
| | 5,473 |
| Total additions | — |
| | 1,473 |
| | — |
| | 6,348 |
| Reductions: | | | | | | | | Sales of fixed maturities on which credit losses were recognized | — |
| | — |
| | — |
| | (15 | ) | Cumulative credit loss, ending balance | $ | 21,370 |
| | $ | 16,640 |
| | $ | 21,370 |
| | $ | 16,640 |
|
|
| Summary Of Net Realized Investment Gains And The Change In Net Unrealized Gains On Investments |
The following table presents net realized investment gains and the change in net unrealized gains on investments.
| | | | | | | | | | | | | | | | | | Quarter Ended September 30, | | Nine Months Ended September 30, | (dollars in thousands) | 2012 | | 2011 | | 2012 | | 2011 | Realized gains: | | | | | | | | Sales of fixed maturities | $ | 2,576 |
| | $ | 1,858 |
| | $ | 7,863 |
| | $ | 12,560 |
| Sales of equity securities | 10,403 |
| | 20,078 |
| | 25,865 |
| | 25,896 |
| Other | — |
| | 940 |
| | 655 |
| | 2,459 |
| Total realized gains | 12,979 |
| | 22,876 |
| | 34,383 |
| | 40,915 |
| Realized losses: | | | | | | | | Sales of fixed maturities | (118 | ) | | (53 | ) | | (457 | ) | | (633 | ) | Sales of equity securities | (383 | ) | | — |
| | (331 | ) | | — |
| Other-than-temporary impairments | (3,159 | ) | | (9,984 | ) | | (4,151 | ) | | (14,859 | ) | Other | (4,088 | ) | | — |
| | (4,088 | ) | | — |
| Total realized losses | (7,748 | ) | | (10,037 | ) | | (9,027 | ) | | (15,492 | ) | Net realized investment gains | $ | 5,231 |
| | $ | 12,839 |
| | $ | 25,356 |
| | $ | 25,423 |
| Change in net unrealized gains on investments: | | | | | | | | Fixed maturities | $ | 37,488 |
| | $ | 113,936 |
| | $ | 82,078 |
| | $ | 178,359 |
| Equity securities | 98,964 |
| | (262,264 | ) | | 248,214 |
| | (209,346 | ) | Short-term investments | 18 |
| | 1 |
| | 13 |
| | 22 |
| Net increase (decrease) | $ | 136,470 |
| | $ | (148,327 | ) | | $ | 330,305 |
| | $ | (30,965 | ) |
|
| Summary Of Other-Than-Temporary Impairment Losses Recognized In Net Income And In Net Realized Investment Gains By Investment Type |
The following table presents other-than-temporary impairment losses recognized in net income and included in net realized investment gains by investment type.
| | | | | | | | | | | | | | | | | | Quarter Ended September 30, | | Nine Months Ended September 30, | (dollars in thousands) | 2012 | | 2011 | | 2012 | | 2011 | Fixed maturities: | | | | | | | | Residential mortgage-backed securities | $ | — |
| | $ | (1,473 | ) | | $ | — |
| | $ | (6,348 | ) | Total fixed maturities | — |
| | (1,473 | ) | | — |
| | (6,348 | ) | Equity securities: | | | | | | | | Insurance companies, banks and trusts | (1,615 | ) | | (4,048 | ) | | (2,441 | ) | | (4,048 | ) | Industrial, consumer and all other | (1,544 | ) | | (4,463 | ) | | (1,710 | ) | | (4,463 | ) | Total equity securities | (3,159 | ) | | (8,511 | ) | | (4,151 | ) | | (8,511 | ) | Total | $ | (3,159 | ) | | $ | (9,984 | ) | | $ | (4,151 | ) | | $ | (14,859 | ) |
|