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Investments (Tables)

3 Months Ended

Mar. 31, 2013

Investments [Abstract]

Summary of fair value and gross unrealized losses of fixed maturity securities and equity securities in an unrealized loss position


		12 Months or Less								More than 12 Months								Total
		Fair Value				Gross Unrealized Losses				Fair Value				Gross Unrealized Losses				Fair Value				Gross Unrealized Losses
March 31, 2013
Fixed maturity securities
U.S. government and federally sponsored agency obligations:
Mortgage-backed securities		$	11,913			$	438			$	48			$	1			$	11,961			$	439
Other			33,825				658				-				-				33,825				658
Municipal bonds			134,086				3,555				14,908				507				148,994				4,062
Foreign government bonds			1,966				17				-				-				1,966				17
Corporate bonds			100,923				678				22,637				3,526				123,560				4,204
Other mortgage-backed securities			118,824				1,113				29,298				1,402				148,122				2,515

Total fixed maturity securities			401,537				6,459				66,891				5,436				468,428				11,895
Equity securities (1)			4,564				283				1,033				424				5,597				707

Combined totals		$	406,101			$	6,742			$	67,924			$	5,860			$	474,025			$	12,602


Number of positions with a gross unrealized loss			138								41								179
Fair value as a percentage of total fixed maturities and equity securities fair value			6.5	%							1.1	%							7.6	%

December 31, 2012
Fixed maturity securities
U.S. government and federally sponsored agency obligations:
Mortgage-backed securities		$	11,006			$	124			$	50			$	1			$	11,056			$	125
Other			9,944				135				-				-				9,944				135
Municipal bonds			108,578				2,605				3,990				43				112,568				2,648
Foreign government bonds			-				-				-				-				-				-
Corporate bonds			56,481				875				26,725				4,075				83,206				4,950
Other mortgage-backed securities			58,218				621				25,014				1,411				83,232				2,032

Total fixed maturity securities			244,227				4,360				55,779				5,530				300,006				9,890
Equity securities (1)			19,344				1,288				9				2				19,353				1,290

Combined totals		$	263,571			$	5,648			$	55,788			$	5,532			$	319,359			$	11,180


Number of positions with a gross unrealized loss			156								43								199
Fair value as a percentage of total fixed maturities and equity securities fair value			4.4	%							0.9	%							5.3	%

(1)	Includes nonredeemable (perpetual) preferred stocks and common stocks.

Unrealized gains and losses on fixed maturities and equity securities


		Amortized Cost/Cost				Unrealized Gains				Unrealized Losses				Fair Value				OTTI in AOCI (2)
March 31, 2013
Fixed maturity securities
U.S. government and federally sponsored agency obligations (1):
Mortgage-backed securities		$	562,657			$	69,206			$	439			$	631,424			$	-
Other, including U.S. Treasury securities			415,050				34,127				658				448,519				-
Municipal bonds			1,422,405				185,899				4,062				1,604,242				-
Foreign government bonds			50,445				8,915				17				59,343				-
Corporate bonds			2,347,748				305,976				4,204				2,649,520				-
Other mortgage-backed securities			711,554				41,586				2,515				750,625				2,880

Totals		$	5,509,859			$	645,709			$	11,895			$	6,143,673			$	2,880


Equity securities		$	53,117			$	6,251			$	707			$	58,661			$	-


December 31, 2012
Fixed maturity securities
U.S. government and federally sponsored agency obligations (1):
Mortgage-backed securities		$	547,040			$	72,644			$	125			$	619,559			$	-
Other, including U.S. Treasury securities			371,706				37,857				135				409,428				-
Municipal bonds			1,402,424				186,261				2,648				1,586,037				-
Foreign government bonds			48,476				9,393				-				57,869				-
Corporate bonds			2,258,554				313,430				4,950				2,567,034				-
Other mortgage-backed securities			683,257				41,080				2,032				722,305				3,214

Totals		$	5,311,457			$	660,665			$	9,890			$	5,962,232			$	3,214


Equity securities		$	52,396			$	2,397			$	1,290			$	53,503			$	-

(1)

Fair value includes securities issued by Federal National Mortgage Association (“FNMA”) of $402,512 and $375,111; Federal Home Loan Mortgage Corporation (“FHLMC”) of $432,559 and $418,174; and Government National Mortgage Association (“GNMA”) of $133,930 and $136,998 as of March 31, 2013 and December 31, 2012, respectively.

(2)

Represents the amount of other-than-temporary impairment losses in AOCI which, beginning April 1, 2009, was not included in earnings under current accounting guidance. Amounts also include unrealized gains/losses on impaired securities relating to changes in the fair value of such securities subsequent to the impairment measurement date.

Summary of cumulative credit losses


		Three Months Ended March 31,
		2013				2012
Cumulative credit loss (1)
Beginning of period		$	2,877			$	3,957
New credit losses			-				-
Losses related to securities sold or paid down during the period			-				-

End of period		$	2,877			$	3,957

(1)	The cumulative credit loss amounts exclude other-than-temporary impairment losses on securities held as of the periods indicated that the Company intended to sell or it was more likely than not that the Company would be required to sell the security before the recovery of the amortized cost basis.

Distribution of the Company's fixed maturity portfolio by estimated expected maturity


		Percent of Total Fair Value								March 31, 2013
		March 31, 2013				December 31, 2012				Fair Value				Amortized Cost
Estimated expected maturity:
Due in 1 year or less			4.2	%			4.3	%		$	259,774			$	232,974
Due after 1 year through 5 years			20.3				20.8				1,246,044				1,117,496
Due after 5 years through 10 years			38.4				38.4				2,362,252				2,118,549
Due after 10 years through 20 years			19.4				18.7				1,189,199				1,066,515
Due after 20 years			17.7				17.8				1,086,404				974,325

Total			100.0	%			100.0	%		$	6,143,673			$	5,509,859


Average option-adjusted duration, in years			6.2				6.3

Proceeds received from sales of fixed maturities and equity securities


		Three Months Ended March 31,
		2013				2012
Fixed maturity securities
Proceeds received		$	99,182			$	158,292
Gross gains realized			4,512				8,892
Gross losses realized			(10	)			(9,145	)

Equity securities
Proceeds received		$	4,834			$	9
Gross gains realized			568				9
Gross losses realized			(215	)			-

Reconciliation of net unrealized investment gains (losses) on fixed maturity securities and equity securities


		Three Months Ended March 31,
		2013				2012
Net unrealized investment gains (losses) on fixed maturity securities, net of tax
Beginning of period		$	423,004			$	284,338
Change in unrealized investment gains and losses			(6,909	)			13,998
Reclassification of net realized investment (gains) losses to net income			(4,116	)			(240	)

End of period		$	411,979			$	298,096


Net unrealized investment gains (losses) on equity securities, net of tax
Beginning of period		$	720			$	2,408
Change in unrealized investment gains and losses			3,228				(155	)
Reclassification of net realized investment (gains) losses to net income			(344	)			(15	)

End of period		$	3,604			$	2,238

Tabular disclosure of the amount of other than temporary impairment (OTTI) related to credit losses recognized in earnings including: (a) the beginning balance of the amount related to credit losses on debt securities held by the investor at the beginning of the period for which a portion of an OTTI was recognized in other comprehensive income; (b) additions for the amount related to the credit loss for which an OTTI was not previously recognized; (c) reductions for securities sold during the period (realized); (d) reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the investor intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis; (e) additional increases to the amount related to the credit loss for which an OTTI was previously recognized when the investor does not intend to sell the security and it is not more likely than not that the investor will be required to sell the security before recovery of its amortized cost basis; (f) reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security; and (g) the ending balance of the amount related to credit losses on debt securities held by the entity at the end of the period for which a portion of an OTTI was recognized in other comprehensive income.

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