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Fair Value Measurements (Tables) | 9 Months Ended
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Sep. 30, 2011
Fair Value Disclosures [Abstract] |
The Carrying Amounts and Estimated Fair Values of Financial Instruments |
|  | September 30, 2011 |  | December 31, 2010
|  | Carrying |  | Fair |  | Carrying |  | Fair
($ in thousands) |  | Amount |  | Value |  | Amount |  | Value
Financial Assets |  |  |  |  |  |  |  |
Fixed maturity securities: |  |  |  |  |  |  |  |
HTM | $ | 852,843 |  | 901,385 |  | 1,214,324 |  | 1,256,294
AFS |  | 2,772,348 |  | 2,772,348 |  | 2,342,742 |  | 2,342,742
Equity securities, AFS |  | 139,203 |  | 139,203 |  | 69,636 |  | 69,636
Short-term investments |  | 162,812 |  | 162,812 |  | 161,155 |  | 161,155
Receivable for proceeds related to sale of Selective |  |  |  |  |  |  |  |
HR Solutions ("Selective HR") |  | 3,375 |  | 3,375 |  | 5,002 |  | 5,002
Financial Liabilities |  |  |  |  |  |  |  |
Notes payable: |  |  |  |  |  |  |  |
7.25% Senior Notes |  | 49,907 |  | 58,589 |  | 49,904 |  | 55,190
6.70% Senior Notes |  | 99,446 |  | 110,604 |  | 99,429 |  | 90,097
7.50% Junior Notes |  | 100,000 |  | 98,664 |  | 100,000 |  | 99,840
2.90% borrowings from FHLBI |  | 13,000 |  | 13,780 |  | 13,000 |  | 13,389
Total notes payable | $ | 262,353 |  | 281,637 |  | 262,333 |  | 258,516
Quantitative Disclosures of Our Financial Assets That Were Measured At Fair Value |
September 30, 2011 |  |  | Fair Value Measurements Using
|  |  |  | Quoted Prices in |  |  |  |
|  | Assets |  | Active Markets for |  | Significant Other |  | Significant
|  | Measured at |  | Identical Assets/ |  | Observable |  | Unobservable
|  | Fair Value |  | Liabilities |  | Inputs |  | Inputs
($ in thousands) |  | at 9/30/11 |  | (Level 1) |  | (Level 2) |  | (Level 3)
Description |  |  |  |  |  |  |  |
Measured on a recurring basis: |  |  |  |  |  |  |  |
U.S. government and government agencies1 | $ | 380,031 |  | 122,701 |  | 257,330 |  | -
Foreign government |  | 32,912 |  | - |  | 32,912 |  | -
Obligations of states and political subdivisions |  | 561,515 |  | - |  | 561,515 |  | -
Corporate securities |  | 1,125,559 |  | - |  | 1,125,559 |  | -
ABS |  | 78,694 |  | - |  | 78,694 |  | -
CMBS |  | 112,891 |  | - |  | 112,561 |  | 330
RMBS |  | 480,746 |  | - |  | 480,746 |  | -
Total AFS fixed maturity securities |  | 2,772,348 |  | 122,701 |  | 2,649, 317 |  | 330
Equity securities |  | 139,203 |  | 139,203 |  | - |  | -
Short-term investments |  | 162,812 |  | 162,812 |  | - |  | -
Receivable for proceeds related to sale of Selective HR |  | 3,375 |  | - |  | - |  | 3,375
Total financial assets measured on a recurring basis | $ | 3,077,738 |  | 424,716 |  | 2,649,317 |  | 3,705
December 31, 2010 |  |  | Fair Value Measurements Using
|  |  |  | Quoted Prices in |  |  |  |
|  | Assets |  | Active Markets for |  | Significant Other |  | Significant
|  | Measured at |  | Identical Assets/ |  | Observable |  | Unobservable
|  | Fair Value |  | Liabilities |  | Inputs |  | Inputs
($ in thousands) |  | at 12/31/10 |  | (Level 1) |  | (Level 2) |  | (Level 3)
Description |  |  |  |  |  |  |  |
Measured on a recurring basis: |  |  |  |  |  |  |  |
U.S. government and government agencies1 | $ | 320,529 |  | 105,317 |  | 215,212 |  | -
Foreign government |  | 18,966 |  | - |  | 18,966 |  | -
Obligations of states and political subdivisions |  | 533,897 |  | - |  | 533,897 |  | -
Corporate securities |  | 993,725 |  | - |  | 993,725 |  | -
ABS |  | 48,733 |  | - |  | 48,733 |  | -
CMBS |  | 104,475 |  | - |  | 104,290 |  | 185
RMBS |  | 322,417 |  | - |  | 322,417 |  | -
Total AFS fixed maturity securities |  | 2,342,742 |  | 105,317 |  | 2,237,240 |  | 185
Equity securities |  | 69,636 |  | 69,636 |  | - |  | -
Short-term investments |  | 161,155 |  | 161,155 |  | - |  | -
Receivable for proceeds related to sale of Selective HR |  | 5,002 |  | - |  | - |  | 5,002
Total financial assets measured on a recurring basis | $ | 2,578,535 |  | 336,108 |  | 2,237,240 |  | 5,187
1 U.S. government includes corporate securities fully guaranteed by the FDIC.
Summary of the Changes in Fair Value of Securities Using Level 3 Inputs |
Nine Months 2011 ($ in thousands) |  | CMBS, AFS | Receivable for Proceeds Related to Sale of Selective HR | Total
Fair value, December 31, 2010 | $ | 185 | 5,002 | 5,187
Total net gains (losses) for the period included in: |  |  |  |
OCI1 |  | 425 | - | 425
Net income2, 3 |  | (269) | (708) | (977)
Purchases |  | - | - | -
Sales |  | - | - | -
Issuances |  | - | - | -
Settlements |  | (11) | (919) | (930)
Net transfers in and/or out of Level 3 |  | - | - | -
Fair value, September 30, 2011 | $ | 330 | 3,375 | 3,705
2010 ($ in thousands) |  | ABS, AFS | CMBS, AFS | Receivable for Proceeds Related to Sale of Selective HR | Total
Fair Value, December 31, 2009 | $ | - | - | 12,300 | 12,300
Total net (losses) gains for the period included in: |  |  |  |  |
OCI1 |  | (22) | 1,862 | - | 1,840
Net income2, 3 |  | - | 41 | (5,460) | (5,419)
Purchases, sales, issuances, and settlements (net) |  | 2,737 | (148) | (1,838) | 751
Net transfers in and/or out of Level 3 |  | (2,715) | (1,570) | - | (4,285)
Fair value, December 31, 2010 | $ | - | 185 | 5,002 | 5,187
1 | Amounts are reported in "Other net unrealized gains on investment securities, net of deferred income tax" on the Consolidated Statements of Stockholders' Equity.
2 | Amounts are reported in "Net realized investment gains (losses)" for realized gains and losses and "Net investment income earned" for amortization for the CMBS securities on the Consolidated Statements of Income.
3 | Amounts are reported in either "Loss on disposal of discontinued operations, net of tax" or "Other income" for the receivable related to sale of Selective HR on the Consolidated Statements of Income. Amounts in "Loss on disposal of discontinued operations, net of tax" relate to charges to reduce the fair value of our receivable and amounts in "Other income" reflect interest accretion on the receivable.

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- Definition Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring and/or nonrecurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19190-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 157 -Paragraph 32 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 157 -Paragraph 6 -Footnote 4 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a),(b) -URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income, and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issuances, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 157 -Paragraph 32 -Subparagraph c -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19279-110258 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13433-108611 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19207-110258 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 14 -Subparagraph a -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15 -Subparagraph b-d -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13476-108611 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 10 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13467-108611 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 45 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6447952&loc=d3e13220-108610 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 159 -Paragraph 18 -Subparagraph c(2), d, e, f -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 157 -Paragraph 32 -Subparagraph a, c(1), c(2), c(3), d -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 159 -Paragraph 19 -Subparagraph a, b, c(1), d(1) -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
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