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Investments (Tables) | 3 Months Ended
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Mar. 31, 2017
Investments, Debt and Equity Securities [Abstract] |
Amortized cost and estimated fair value of available-for-sale fixed maturities and equity securities | Available-for-sale securities at March 31, 2017 and December 31, 2016 included the following:
| March 31, 2017
(In thousands) | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value
Fixed maturities |  |  |  |  |  |  |
U.S. Treasury obligations | $ | 147,826 |  |  | $ | 1,203 |  |  | $ | 818 |  |  | $ | 148,211 |
U.S. Government-sponsored enterprise obligations | 28,621 |  |  | 241 |  |  | 161 |  |  | 28,701 |
State and municipal bonds | 755,639 |  |  | 19,139 |  |  | 4,717 |  |  | 770,061 |
Corporate debt | 1,291,140 |  |  | 21,812 |  |  | 6,979 |  |  | 1,305,973 |
Residential mortgage-backed securities | 206,455 |  |  | 3,407 |  |  | 1,956 |  |  | 207,906 |
Agency commercial mortgage-backed securities | 12,727 |  |  | 63 |  |  | 102 |  |  | 12,688 |
Other commercial mortgage-backed securities | 19,650 |  |  | 153 |  |  | 106 |  |  | 19,697 |
Other asset-backed securities | 111,214 |  |  | 191 |  |  | 213 |  |  | 111,192 |
| $ | 2,573,272 |  |  | $ | 46,209 |  |  | $ | 15,052 |  |  | $ | 2,604,429 |
| December 31, 2016
(In thousands) | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value
Fixed maturities |  |  |  |  |  |  |
U.S. Treasury obligations | $ | 146,186 |  |  | $ | 1,264 |  |  | $ | 911 |  |  | $ | 146,539 |
U.S. Government-sponsored enterprise obligations | 30,038 |  |  | 388 |  |  | 191 |  |  | 30,235 |
State and municipal bonds | 790,154 |  |  | 17,261 |  |  | 6,952 |  |  | 800,463 |
Corporate debt | 1,264,812 |  |  | 22,659 |  |  | 8,480 |  |  | 1,278,991 |
Residential mortgage-backed securities | 216,285 |  |  | 3,667 |  |  | 2,046 |  |  | 217,906 |
Agency commercial mortgage-backed securities | 12,837 |  |  | 89 |  |  | 143 |  |  | 12,783 |
Other commercial mortgage-backed securities | 19,571 |  |  | 177 |  |  | 137 |  |  | 19,611 |
Other asset-backed securities | 106,938 |  |  | 207 |  |  | 267 |  |  | 106,878 |
| $ | 2,586,821 |  |  | $ | 45,712 |  |  | $ | 19,127 |  |  | $ | 2,613,406 |
Schedule of available for sale securities by contractual maturity | The recorded cost basis and estimated fair value of available-for-sale fixed maturities at March 31, 2017, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
(In thousands) | Amortized Cost |  | Due in one year or less |  | Due after one year through five years |  | Due after five years through ten years |  | Due after ten years |  | Total Fair Value
Fixed maturities, available for sale |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury obligations | $ | 147,826 |  |  | $ | 28,876 |  |  | $ | 98,304 |  |  | $ | 18,042 |  |  | $ | 2,989 |  |  | $ | 148,211 |
U.S. Government-sponsored enterprise obligations | 28,621 |  |  | 12,863 |  |  | 7,781 |  |  | 7,918 |  |  | 139 |  |  | 28,701 |
State and municipal bonds | 755,639 |  |  | 66,017 |  |  | 264,597 |  |  | 348,641 |  |  | 90,806 |  |  | 770,061 |
Corporate debt | 1,291,140 |  |  | 122,549 |  |  | 764,626 |  |  | 388,119 |  |  | 30,679 |  |  | 1,305,973 |
Residential mortgage-backed securities | 206,455 |  |  |  |  |  |  |  |  |  |  | 207,906 |
Agency commercial mortgage-backed securities | 12,727 |  |  |  |  |  |  |  |  |  |  | 12,688 |
Other commercial mortgage-backed securities | 19,650 |  |  |  |  |  |  |  |  |  |  | 19,697 |
Other asset-backed securities | 111,214 |  |  |  |  |  |  |  |  |  |  | 111,192 |
| $ | 2,573,272 |  |  |  |  |  |  |  |  |  |  | $ | 2,604,429 |
Unconsolidated subsidiaries | ProAssurance holds investments in unconsolidated subsidiaries, accounted for under the equity method. The investments include the following:
| Carrying Value
(In thousands) | March 31, 2017 |  | December 31, 2016
Investment in LPs/LLCs: |  |  |
Qualified affordable housing tax credit partnerships | $ | 99,005 |  |  | $ | 102,313 |
Other tax credit partnerships | 11,041 |  |  | 11,459 |
All other LPs/LLCs | 220,433 |  |  | 227,134 |
| $ | 330,479 |  |  | $ | 340,906 |
Other investments | Other investments at March 31, 2017 and December 31, 2016 were comprised as follows:
(In thousands) | March 31, 2017 |  | December 31, 2016
Investments in LPs/LLCs, at cost | $ | 47,164 |  |  | $ | 46,852 |
Convertible securities, at fair value | 29,978 |  |  | 31,501 |
Other, principally FHLB capital stock, at cost | 3,434 |  |  | 3,539 |
| $ | 80,576 |  |  | $ | 81,892 |
Investments held in an unrealized loss position | The following tables provide summarized information with respect to investments held in an unrealized loss position at March 31, 2017 and December 31, 2016, including the length of time the investment had been held in a continuous unrealized loss position.
| March 31, 2017
| Total |  | Less than 12 months |  | 12 months or longer
| Fair |  | Unrealized |  | Fair |  | Unrealized |  | Fair |  | Unrealized
(In thousands) | Value |  | Loss |  | Value |  | Loss |  | Value |  | Loss
Fixed maturities, available for sale |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury obligations | $ | 82,630 |  |  | $ | 818 |  |  | $ | 82,630 |  |  | $ | 818 |  |  | $ | — |  |  | $ | — |
U.S. Government-sponsored enterprise obligations | 10,507 |  |  | 161 |  |  | 10,507 |  |  | 161 |  |  | — |  |  | — |
State and municipal bonds | 167,434 |  |  | 4,717 |  |  | 160,343 |  |  | 4,132 |  |  | 7,091 |  |  | 585 |
Corporate debt | 416,640 |  |  | 6,979 |  |  | 382,246 |  |  | 4,361 |  |  | 34,394 |  |  | 2,618 |
Residential mortgage-backed securities | 97,495 |  |  | 1,956 |  |  | 95,381 |  |  | 1,922 |  |  | 2,114 |  |  | 34 |
Agency commercial mortgage-backed securities | 4,571 |  |  | 102 |  |  | 4,191 |  |  | 72 |  |  | 380 |  |  | 30 |
Other commercial mortgage-backed securities | 10,890 |  |  | 106 |  |  | 9,075 |  |  | 85 |  |  | 1,815 |  |  | 21 |
Other asset-backed securities | 46,008 |  |  | 213 |  |  | 42,018 |  |  | 207 |  |  | 3,990 |  |  | 6 |
| $ | 836,175 |  |  | $ | 15,052 |  |  | $ | 786,391 |  |  | $ | 11,758 |  |  | $ | 49,784 |  |  | $ | 3,294 |
| December 31, 2016
| Total |  | Less than 12 months |  | 12 months or longer
| Fair |  | Unrealized |  | Fair |  | Unrealized |  | Fair |  | Unrealized
(In thousands) | Value |  | Loss |  | Value |  | Loss |  | Value |  | Loss
Fixed maturities, available for sale |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury obligations | $ | 79,833 |  |  | $ | 911 |  |  | $ | 79,833 |  |  | $ | 911 |  |  | $ | — |  |  | $ | — |
U.S. Government-sponsored enterprise obligations | 11,746 |  |  | 191 |  |  | 11,746 |  |  | 191 |  |  | — |  |  | — |
State and municipal bonds | 224,884 |  |  | 6,952 |  |  | 219,276 |  |  | 6,444 |  |  | 5,608 |  |  | 508 |
Corporate debt | 469,632 |  |  | 8,480 |  |  | 424,721 |  |  | 5,662 |  |  | 44,911 |  |  | 2,818 |
Residential mortgage-backed securities | 103,680 |  |  | 2,046 |  |  | 100,542 |  |  | 1,982 |  |  | 3,138 |  |  | 64 |
Agency commercial mortgage-backed securities | 4,579 |  |  | 143 |  |  | 4,192 |  |  | 114 |  |  | 387 |  |  | 29 |
Other commercial mortgage-backed securities | 9,822 |  |  | 137 |  |  | 9,179 |  |  | 134 |  |  | 643 |  |  | 3 |
Other asset-backed securities | 44,343 |  |  | 267 |  |  | 39,079 |  |  | 256 |  |  | 5,264 |  |  | 11 |
| $ | 948,519 |  |  | $ | 19,127 |  |  | $ | 888,568 |  |  | $ | 15,694 |  |  | $ | 59,951 |  |  | $ | 3,433 |
Net Investment Income | Net investment income by investment category was as follows:
| Three Months Ended March 31
(In thousands) | 2017 |  | 2016
Fixed maturities | $ | 20,121 |  |  | $ | 22,575 |
Equities | 3,644 |  |  | 3,643 |
Short-term and Other investments | 801 |  |  | 405 |
BOLI | 455 |  |  | 460 |
Investment fees and expenses | (1,835 | ) |  | (1,643 | )
Net investment income | $ | 23,186 |  |  | $ | 25,440 |
Net realized investment gains (losses) | The following table provides detailed information regarding Net realized investment gains (losses):
| Three Months Ended March 31
(In thousands) | 2017 |  | 2016
Total OTTI losses: |  |  |
Corporate debt | $ | (419 | ) |  | $ | (7,604 | )
Other investments | — |  |  | (3,130 | )
Portion of OTTI losses recognized in other comprehensive income before taxes: |  |  |
Corporate debt | 248 |  |  | 1,068 |
Net impairment losses recognized in earnings | (171 | ) |  | (9,666 | )
Gross realized gains, available-for-sale securities | 1,853 |  |  | 3,185 |
Gross realized (losses), available-for-sale securities | (67 | ) |  | (4,647 | )
Net realized gains (losses), trading securities | 6,562 |  |  | 2,055 |
Net realized gains (losses), Other investments | 1,172 |  |  | 52 |
Change in unrealized holding gains (losses), trading securities | 3,616 |  |  | 733 |
Change in unrealized holding gains (losses), convertible securities, carried at fair value | 313 |  |  | (66 | )
Other | 2 |  |  | 2 |
Net realized investment gains (losses) | $ | 13,280 |  |  | $ | (8,352 | )
Other than temporary impairment, credit losses recognized in earnings | The following table presents a roll forward of cumulative credit losses recorded in earnings related to impaired debt securities for which a portion of the OTTI was recorded in OCI.
| Three Months Ended March 31
(In thousands) | 2017 |  | 2016
Balance beginning of period | $ | 1,158 |  |  | $ | 5,751 |
Additional credit losses recognized during the period, related to securities for which: |  |  |
No OTTI has been previously recognized | 171 |  |  | 2,398 |
OTTI has been previously recognized | — |  |  | 2,154 |
Reductions due to: |  |  |
Securities sold during the period (realized) | — |  |  | (3,744 | )
Balance March 31 | $ | 1,329 |  |  | $ | 6,559 |
Information regarding sales and purchases of available-for-sale securities | Other information regarding sales and purchases of available-for-sale securities is as follows:
| Three Months Ended March 31
(In millions) | 2017 |  | 2016
Proceeds from sales (exclusive of maturities and paydowns) | $ | 79.2 |  |  | $ | 109.9 |
Purchases | $ | 160.4 |  |  | $ | 199.6 |

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- Definition Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=73527792&loc=d3e27337-111563 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=73527792&loc=d3e27198-111563 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62586-112803 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=73527792&loc=d3e27161-111563 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=73527792&loc=d3e27357-111563 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=73527792&loc=d3e27290-111563 + Details
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- Definition 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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=73527792&loc=d3e27340-111563 + Details
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