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Investments | 12 Months Ended
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Dec. 31, 2016
Investments [Abstract] |
Investments | Investments The amortized cost, gross unrealized gains and losses and fair value of the investment portfolio as of December 31, 2016 and 2015 are shown below:
December 31, 2016
(In thousands) |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses (1) |  | Fair Value
U.S. Treasury securities and obligations of U.S. government corporations and agencies |  | $ | 73,847 |  |  | $ | 407 |  |  | $ | (724 | ) |  | $ | 73,530 |
Obligations of U.S. states and political subdivisions |  | 2,147,458 |  |  | 20,983 |  |  | (25,425 | ) |  | 2,143,016 |
Corporate debt securities |  | 1,756,461 |  |  | 6,059 |  |  | (18,610 | ) |  | 1,743,910 |
ABS |  | 59,519 |  |  | 74 |  |  | (28 | ) |  | 59,565 |
RMBS |  | 231,733 |  |  | 102 |  |  | (7,626 | ) |  | 224,209 |
CMBS |  | 327,042 |  |  | 769 |  |  | (7,994 | ) |  | 319,817 |
CLOs |  | 121,151 |  |  | 226 |  |  | (202 | ) |  | 121,175 |
Total debt securities |  | 4,717,211 |  |  | 28,620 |  |  | (60,609 | ) |  | 4,685,222 |
Equity securities |  | 7,144 |  |  | 8 |  |  | (24 | ) |  | 7,128 |
Total investment portfolio |  | $ | 4,724,355 |  |  | $ | 28,628 |  |  | $ | (60,633 | ) |  | $ | 4,692,350 |
December 31, 2015 |  |  |  |  |  |  |  |
(In thousands) |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses (1) |  | Fair Value
U.S. Treasury securities and obligations of U.S. government corporations and agencies |  | $ | 160,393 |  |  | $ | 2,133 |  |  | $ | (1,942 | ) |  | $ | 160,584 |
Obligations of U.S. states and political subdivisions |  | 1,766,407 |  |  | 33,410 |  |  | (7,290 | ) |  | 1,792,527 |
Corporate debt securities |  | 2,046,697 |  |  | 2,836 |  |  | (44,770 | ) |  | 2,004,763 |
ABS |  | 116,764 |  |  | 56 |  |  | (203 | ) |  | 116,617 |
RMBS |  | 265,879 |  |  | 161 |  |  | (8,392 | ) |  | 257,648 |
CMBS |  | 237,304 |  |  | 162 |  |  | (3,975 | ) |  | 233,491 |
CLOs |  | 61,345 |  |  | 3 |  |  | (1,148 | ) |  | 60,200 |
Debt securities issued by foreign sovereign governments |  | 29,359 |  |  | 2,474 |  |  | (102 | ) |  | 31,731 |
Total debt securities |  | 4,684,148 |  |  | 41,235 |  |  | (67,822 | ) |  | 4,657,561 |
Equity securities |  | 5,625 |  |  | 38 |  |  | (18 | ) |  | 5,645 |
Total investment portfolio |  | $ | 4,689,773 |  |  | $ | 41,273 |  |  | $ | (67,840 | ) |  | $ | 4,663,206 |
(1) | There were no OTTI losses recorded in other comprehensive (loss) income as of December 31, 2016 and 2015.
During the first quarter of 2016 we substantially liquidated our Australian entities and repatriated most assets, including proceeds from the monetization of our Australian investment portfolio. As of December 31, 2016 we held no investments in foreign sovereign governments. As of December 31, 2015 our foreign investments primarily consisted of Australian government and semi government securities. As discussed in Note 7 - "Debt" we are required to maintain collateral of at least 102% of the outstanding principal balance of the FHLB Advance. As of December 31, 2016 that collateral is included in our total investment portfolio amount shown above with a total fair value of $164.4 million. The amortized cost and fair values of debt securities as of December 31, 2016, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Because most asset-backed and mortgage-backed securities and collateralized loan obligations provide for periodic payments throughout their lives, they are listed below in separate categories.
December 31, 2016 |  |  |  |
(In thousands) |  | Amortized Cost |  | Fair Value
Due in one year or less |  | $ | 433,464 |  |  | $ | 433,770 |
Due after one year through five years |  | 1,211,034 |  |  | 1,212,650 |
Due after five years through ten years |  | 1,157,091 |  |  | 1,139,552 |
Due after ten years |  | 1,176,177 |  |  | 1,174,484 |
|  | 3,977,766 |  |  | 3,960,456 |
ABS |  | 59,519 |  |  | 59,565 |
RMBS |  | 231,733 |  |  | 224,209 |
CMBS |  | 327,042 |  |  | 319,817 |
CLOs |  | 121,151 |  |  | 121,175 |
Total as of December 31, 2016 |  | $ | 4,717,211 |  |  | $ | 4,685,222 |
At December 31, 2016 and 2015, the investment portfolio had gross unrealized losses of $61 million and $68 million, respectively. For those securities in an unrealized loss position, the length of time the securities were in such a position, as measured by their month-end fair values, is as follows:
December 31, 2016 |  | Less Than 12 Months |  | 12 Months or Greater |  | Total
(In thousands) |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
U.S. Treasury securities and obligations of U.S. government corporations and agencies |  | $ | 48,642 |  |  | $ | (724 | ) |  | $ | — |  |  | $ | — |  |  | $ | 48,642 |  |  | $ | (724 | )
Obligations of U.S. states and political subdivisions |  | 1,136,676 |  |  | (24,918 | ) |  | 13,681 |  |  | (507 | ) |  | 1,150,357 |  |  | (25,425 | )
Corporate debt securities |  | 915,777 |  |  | (16,771 | ) |  | 35,769 |  |  | (1,839 | ) |  | 951,546 |  |  | (18,610 | )
ABS |  | 3,366 |  |  | (28 | ) |  | 656 |  |  | — |  |  | 4,022 |  |  | (28 | )
RMBS |  | 46,493 |  |  | (857 | ) |  | 171,326 |  |  | (6,769 | ) |  | 217,819 |  |  | (7,626 | )
CMBS |  | 205,545 |  |  | (7,529 | ) |  | 38,587 |  |  | (465 | ) |  | 244,132 |  |  | (7,994 | )
CLOs |  | 13,278 |  |  | (73 | ) |  | 34,760 |  |  | (129 | ) |  | 48,038 |  |  | (202 | )
Equity securities |  | 568 |  |  | (15 | ) |  | 137 |  |  | (9 | ) |  | 705 |  |  | (24 | )
Total investment portfolio |  | $ | 2,370,345 |  |  | $ | (50,915 | ) |  | $ | 294,916 |  |  | $ | (9,718 | ) |  | $ | 2,665,261 |  |  | $ | (60,633 | )
December 31, 2015 |  | Less Than 12 Months |  | 12 Months or Greater |  | Total
(In thousands) |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
U.S. Treasury securities and obligations of U.S. government corporations and agencies |  | $ | 60,548 |  |  | $ | (1,467 | ) |  | $ | 1,923 |  |  | $ | (475 | ) |  | $ | 62,471 |  |  | $ | (1,942 | )
Obligations of U.S. states and political subdivisions |  | 417,615 |  |  | (6,404 | ) |  | 37,014 |  |  | (886 | ) |  | 454,629 |  |  | (7,290 | )
Corporate debt securities |  | 1,470,628 |  |  | (38,519 | ) |  | 114,982 |  |  | (6,251 | ) |  | 1,585,610 |  |  | (44,770 | )
ABS |  | 86,604 |  |  | (173 | ) |  | 5,546 |  |  | (30 | ) |  | 92,150 |  |  | (203 | )
RMBS |  | 35,064 |  |  | (312 | ) |  | 209,882 |  |  | (8,080 | ) |  | 244,946 |  |  | (8,392 | )
CMBS |  | 134,488 |  |  | (2,361 | ) |  | 69,927 |  |  | (1,614 | ) |  | 204,415 |  |  | (3,975 | )
CLOs |  | — |  |  | — |  |  | 51,750 |  |  | (1,148 | ) |  | 51,750 |  |  | (1,148 | )
Debt securities issued by foreign sovereign governments |  | 4,463 |  |  | (102 | ) |  | — |  |  | — |  |  | 4,463 |  |  | (102 | )
Equity securities |  | 355 |  |  | (8 | ) |  | 171 |  |  | (10 | ) |  | 526 |  |  | (18 | )
Total investment portfolio |  | $ | 2,209,765 |  |  | $ | (49,346 | ) |  | $ | 491,195 |  |  | $ | (18,494 | ) |  | $ | 2,700,960 |  |  | $ | (67,840 | )
The unrealized losses in all categories of our investments as of December 31, 2016 and 2015 were primarily caused by changes in interest rates between the time of purchase and the respective year end. There were 607 and 303 securities in an unrealized loss position as of December 31, 2016 and 2015, respectively. As of December 31, 2016, the fair value as a percent of amortized cost of the securities in an unrealized loss position was 98% and approximately 14% of the securities in an unrealized loss position were backed by the U.S. Government. There were no OTTI losses in earnings during 2016 and 2015. We recognized OTTI losses of $0.1 million during 2014. For the years ended December 31, 2016, 2015, and 2014, there were no credit losses recognized in earnings for which a portion of an OTTI loss was recognized in accumulated other comprehensive loss. The source of net investment income is as follows:
(In thousands) |  | 2016 |  | 2015 |  | 2014
Fixed income |  | $ | 112,513 |  |  | $ | 105,882 |  |  | $ | 89,437 |
Equity securities |  | 182 |  |  | 208 |  |  | 227 |
Cash equivalents |  | 754 |  |  | 191 |  |  | 179 |
Other |  | 433 |  |  | 455 |  |  | 711 |
Investment income |  | 113,882 |  |  | 106,736 |  |  | 90,554 |
Investment expenses |  | (3,216 | ) |  | (2,995 | ) |  | (2,907 | )
Net investment income |  | $ | 110,666 |  |  | $ | 103,741 |  |  | $ | 87,647 |
The net realized investment gains, including impairment losses, and change in net unrealized gains (losses) of investments are as follows:
(In thousands) |  | 2016 |  | 2015 |  | 2014
Net realized investment gains on investments: |  |  |  |  |  |
Fixed income |  | $ | 5,310 |  |  | $ | 28,335 |  |  | $ | 1,000 |
Equity securities |  | 3,622 |  |  | 26 |  |  | 356 |
Other |  | — |  |  | — |  |  | 1 |
Total net realized investment gains |  | $ | 8,932 |  |  | $ | 28,361 |  |  | $ | 1,357 |
Change in net unrealized gains (losses): |  |  |  |  |  |
Fixed income |  | $ | (5,403 | ) |  | $ | (33,687 | ) |  | $ | 91,718 |
Equity securities |  | (36 | ) |  | (32 | ) |  | 66 |
Other |  | 14 |  |  | 1 |  |  | (4 | )
Total (decrease) increase in net unrealized gains/losses |  | $ | (5,425 | ) |  | $ | (33,718 | ) |  | $ | 91,780 |
The gross realized gains, gross realized losses and impairment losses are as follows:
(In thousands) |  | 2016 |  | 2015 |  | 2014
Gross realized gains |  | $ | 11,909 |  |  | $ | 30,039 |  |  | $ | 4,966 |
Gross realized losses |  | (2,977 | ) |  | (1,678 | ) |  | (3,465 | )
Other-than-temporary-impairment losses |  | — |  |  | — |  |  | (144 | )
Net realized gains on securities |  | $ | 8,932 |  |  | $ | 28,361 |  |  | $ | 1,357 |
We had $13.6 million and $18.9 million of investments at fair value on deposit with various states as of December 31, 2016 and 2015, respectively, due to regulatory requirements of those state insurance departments.

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