Investments (Tables)
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6 Months Ended |
Jun. 30, 2015 |
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| Investments, Debt and Equity Securities [Abstract] |
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| Available-For-Sale Investments |
The following tables summarize the Company's available-for-sale investments.
| | | | | | | | | | | | | | | | | | | | | | June 30, 2015 | (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 | $ | 638,848 |
| | $ | 10,695 |
| | $ | (3,855 | ) | | $ | — |
| | $ | 645,688 |
| Obligations of states, municipalities and political subdivisions | 3,862,159 |
| | 165,902 |
| | (17,030 | ) | | — |
| | 4,011,031 |
| Foreign governments | 1,343,152 |
| | 113,536 |
| | (1,056 | ) | | — |
| | 1,455,632 |
| Commercial mortgage-backed securities | 427,372 |
| | 3,530 |
| | (1,865 | ) | | — |
| | 429,037 |
| Residential mortgage-backed securities | 890,612 |
| | 23,564 |
| | (4,273 | ) | | (2,258 | ) | | 907,645 |
| Asset-backed securities | 65,752 |
| | 58 |
| | (510 | ) | | — |
| | 65,300 |
| Corporate bonds | 1,981,737 |
| | 45,276 |
| | (16,520 | ) | | (1,662 | ) | | 2,008,831 |
| Total fixed maturities | 9,209,632 |
| | 362,561 |
| | (45,109 | ) | | (3,920 | ) | | 9,523,164 |
| Equity securities: | | | | | | | | | | Insurance, banks and other financial institutions | 617,618 |
| | 735,581 |
| | (1,350 | ) | | — |
| | 1,351,849 |
| Industrial, consumer and all other | 1,578,072 |
| | 1,458,669 |
| | (13,429 | ) | | — |
| | 3,023,312 |
| Total equity securities | 2,195,690 |
| | 2,194,250 |
| | (14,779 | ) | | — |
| | 4,375,161 |
| Short-term investments | 2,185,228 |
| | 26 |
| | (5 | ) | | — |
| | 2,185,249 |
| Investments, available-for-sale | $ | 13,590,550 |
| | $ | 2,556,837 |
| | $ | (59,893 | ) | | $ | (3,920 | ) | | $ | 16,083,574 |
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| | | | | | | | | | | | | | | | | | | | | | December 31, 2014 | (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 | $ | 662,462 |
| | $ | 12,963 |
| | $ | (2,163 | ) | | $ | — |
| | $ | 673,262 |
| Obligations of states, municipalities and political subdivisions | 4,075,748 |
| | 245,158 |
| | (3,359 | ) | | — |
| | 4,317,547 |
| Foreign governments | 1,458,255 |
| | 154,707 |
| | (1,041 | ) | | — |
| | 1,611,921 |
| Commercial mortgage-backed securities | 427,904 |
| | 5,325 |
| | (2,602 | ) | | — |
| | 430,627 |
| Residential mortgage-backed securities | 954,263 |
| | 34,324 |
| | (3,482 | ) | | (2,258 | ) | | 982,847 |
| Asset-backed securities | 100,073 |
| | 99 |
| | (682 | ) | | — |
| | 99,490 |
| Corporate bonds | 2,250,432 |
| | 69,016 |
| | (10,441 | ) | | (1,819 | ) | | 2,307,188 |
| Total fixed maturities | 9,929,137 |
| | 521,592 |
| | (23,770 | ) | | (4,077 | ) | | 10,422,882 |
| Equity securities: | | | | | | | | | | Insurance, banks and other financial institutions | 523,739 |
| | 789,717 |
| | (1,531 | ) | | — |
| | 1,311,925 |
| Industrial, consumer and all other | 1,427,919 |
| | 1,403,566 |
| | (5,834 | ) | | — |
| | 2,825,651 |
| Total equity securities | 1,951,658 |
| | 2,193,283 |
| | (7,365 | ) | | — |
| | 4,137,576 |
| Short-term investments | 1,594,819 |
| | 36 |
| | (6 | ) | | — |
| | 1,594,849 |
| Investments, available-for-sale | $ | 13,475,614 |
| | $ | 2,714,911 |
| | $ | (31,141 | ) | | $ | (4,077 | ) | | $ | 16,155,307 |
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| 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.
| | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2015 | | 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 | $ | 97,844 |
| | $ | (2,842 | ) | | $ | 114,198 |
| | $ | (1,013 | ) | | $ | 212,042 |
| | $ | (3,855 | ) | Obligations of states, municipalities and political subdivisions | 654,959 |
| | (12,765 | ) | | 63,885 |
| | (4,265 | ) | | 718,844 |
| | (17,030 | ) | Foreign governments | 31,312 |
| | (542 | ) | | 44,756 |
| | (514 | ) | | 76,068 |
| | (1,056 | ) | Commercial mortgage-backed securities | 124,536 |
| | (703 | ) | | 97,983 |
| | (1,162 | ) | | 222,519 |
| | (1,865 | ) | Residential mortgage-backed securities | 112,947 |
| | (2,832 | ) | | 156,760 |
| | (3,699 | ) | | 269,707 |
| | (6,531 | ) | Asset-backed securities | 12,146 |
| | (11 | ) | | 46,122 |
| | (499 | ) | | 58,268 |
| | (510 | ) | Corporate bonds | 433,329 |
| | (9,696 | ) | | 356,992 |
| | (8,486 | ) | | 790,321 |
| | (18,182 | ) | Total fixed maturities | 1,467,073 |
| | (29,391 | ) | | 880,696 |
| | (19,638 | ) | | 2,347,769 |
| | (49,029 | ) | Equity securities: | | | | | | | | | | | | Insurance, banks and other financial institutions | 13,307 |
| | (578 | ) | | 8,040 |
| | (772 | ) | | 21,347 |
| | (1,350 | ) | Industrial, consumer and all other | 84,162 |
| | (11,641 | ) | | 18,108 |
| | (1,788 | ) | | 102,270 |
| | (13,429 | ) | Total equity securities | 97,469 |
| | (12,219 | ) | | 26,148 |
| | (2,560 | ) | | 123,617 |
| | (14,779 | ) | Short-term investments | 159,963 |
| | (5 | ) | | — |
| | — |
| | 159,963 |
| | (5 | ) | Total | $ | 1,724,505 |
| | $ | (41,615 | ) | | $ | 906,844 |
| | $ | (22,198 | ) | | $ | 2,631,349 |
| | $ | (63,813 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2014 | | 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 | $ | 108,250 |
| | $ | (62 | ) | | $ | 163,359 |
| | $ | (2,101 | ) | | $ | 271,609 |
| | $ | (2,163 | ) | Obligations of states, municipalities and political subdivisions | 58,583 |
| | (542 | ) | | 92,441 |
| | (2,817 | ) | | 151,024 |
| | (3,359 | ) | Foreign governments | 18,856 |
| | (386 | ) | | 56,217 |
| | (655 | ) | | 75,073 |
| | (1,041 | ) | Commercial mortgage-backed securities | 45,931 |
| | (210 | ) | | 147,558 |
| | (2,392 | ) | | 193,489 |
| | (2,602 | ) | Residential mortgage-backed securities | 9,613 |
| | (2,285 | ) | | 207,374 |
| | (3,455 | ) | | 216,987 |
| | (5,740 | ) | Asset-backed securities | 30,448 |
| | (20 | ) | | 45,160 |
| | (662 | ) | | 75,608 |
| | (682 | ) | Corporate bonds | 141,176 |
| | (2,263 | ) | | 621,821 |
| | (9,997 | ) | | 762,997 |
| | (12,260 | ) | Total fixed maturities | 412,857 |
| | (5,768 | ) | | 1,333,930 |
| | (22,079 | ) | | 1,746,787 |
| | (27,847 | ) | Equity securities: | | | | | | | | | | | | Insurance, banks and other financial institutions | 16,219 |
| | (1,531 | ) | | — |
| | — |
| | 16,219 |
| | (1,531 | ) | Industrial, consumer and all other | 86,062 |
| | (5,834 | ) | | — |
| | — |
| | 86,062 |
| | (5,834 | ) | Total equity securities | 102,281 |
| | (7,365 | ) | | — |
| | — |
| | 102,281 |
| | (7,365 | ) | Short-term investments | 181,964 |
| | (6 | ) | | — |
| | — |
| | 181,964 |
| | (6 | ) | Total | $ | 697,102 |
| | $ | (13,139 | ) | | $ | 1,333,930 |
| | $ | (22,079 | ) | | $ | 2,031,032 |
| | $ | (35,218 | ) |
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| 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 June 30, 2015 are shown below by contractual maturity.
| | | | | | | | | (dollars in thousands) | Amortized Cost | | Estimated Fair Value | Due in one year or less | $ | 599,532 |
| | $ | 603,525 |
| Due after one year through five years | 1,874,619 |
| | 1,923,716 |
| Due after five years through ten years | 1,785,413 |
| | 1,871,155 |
| Due after ten years | 3,566,332 |
| | 3,722,786 |
| | 7,825,896 |
| | 8,121,182 |
| Commercial mortgage-backed securities | 427,372 |
| | 429,037 |
| Residential mortgage-backed securities | 890,612 |
| | 907,645 |
| Asset-backed securities | 65,752 |
| | 65,300 |
| Total fixed maturities | $ | 9,209,632 |
| | $ | 9,523,164 |
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| Components Of Net Investment Income |
The following table presents the components of net investment income.
| | | | | | | | | | | | | | | | | | Quarter Ended June 30, | | Six Months Ended June 30, | (dollars in thousands) | 2015 | | 2014 | | 2015 | | 2014 | Interest: | | | | | | | | Municipal bonds (tax-exempt) | $ | 24,293 |
| | $ | 25,187 |
| | $ | 50,145 |
| | $ | 48,291 |
| Municipal bonds (taxable) | 14,150 |
| | 12,614 |
| | 28,250 |
| | 21,610 |
| Other taxable bonds | 34,013 |
| | 40,109 |
| | 69,151 |
| | 75,853 |
| Short-term investments, including overnight deposits | 1,116 |
| | 1,608 |
| | 2,367 |
| | 3,082 |
| Dividends on equity securities | 18,633 |
| | 14,508 |
| | 37,657 |
| | 31,364 |
| Income from equity method investments | 1,712 |
| | 1,458 |
| | 3,056 |
| | 5,041 |
| Other | 479 |
| | 523 |
| | 540 |
| | 1,702 |
| | 94,396 |
| | 96,007 |
| | 191,166 |
| | 186,943 |
| Investment expenses | (3,810 | ) | | (3,838 | ) | | (7,705 | ) | | (8,059 | ) | Net investment income | $ | 90,586 |
| | $ | 92,169 |
| | $ | 183,461 |
| | $ | 178,884 |
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| 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 June 30, | | Six Months Ended June 30, | (dollars in thousands) | 2015 | | 2014 | | 2015 | | 2014 | Realized gains: | | | | | | | | Sales of fixed maturities | $ | 770 |
| | $ | 1,642 |
| | $ | 2,338 |
| | $ | 5,643 |
| Sales of equity securities | 7,000 |
| | 14,051 |
| | 22,956 |
| | 26,094 |
| Other | 1,739 |
| | 4,405 |
| | 2,413 |
| | 14,315 |
| Total realized gains | 9,509 |
| | 20,098 |
| | 27,707 |
| | 46,052 |
| Realized losses: | | | | | | | | Sales of fixed maturities | (97 | ) | | (8,246 | ) | | (221 | ) | | (16,148 | ) | Sales of equity securities | (113 | ) | | (99 | ) | | (272 | ) | | (143 | ) | Other-than-temporary impairments | — |
| | (1,007 | ) | | (5,092 | ) | | (1,007 | ) | Other | (3,194 | ) | | (3,626 | ) | | (10,446 | ) | | (4,240 | ) | Total realized losses | (3,404 | ) | | (12,978 | ) | | (16,031 | ) | | (21,538 | ) | Net realized investment gains | $ | 6,105 |
| | $ | 7,120 |
| | $ | 11,676 |
| | $ | 24,514 |
| Change in net unrealized gains on investments: | | | | | | | | Fixed maturities | $ | (286,551 | ) | | $ | 147,439 |
| | $ | (180,213 | ) | | $ | 296,250 |
| Equity securities | (64,792 | ) | | 152,256 |
| | (6,447 | ) | | 218,709 |
| Short-term investments | 11 |
| | (3 | ) | | (9 | ) | | (2 | ) | Net increase (decrease) | $ | (351,332 | ) | | $ | 299,692 |
| | $ | (186,669 | ) | | $ | 514,957 |
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