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Investments (Tables)

6 Months Ended

Jun. 30, 2018

Investments, Debt and Equity Securities [Abstract]

Amortized cost and estimated fair value of available-for-sale fixed maturities and equity securities

Available-for-sale fixed maturities at June 30, 2018 and December 31, 2017 included the following:

	June 30, 2018
(In thousands)	Amortized Cost				Gross Unrealized Gains				Gross Unrealized Losses				Estimated Fair Value
Fixed maturities, available for sale
U.S. Treasury obligations	$	148,588			$	249			$	2,380			$	146,457
U.S. Government-sponsored enterprise obligations	32,331				21				650				31,702
State and municipal bonds	326,705				5,488				1,093				331,100
Corporate debt	1,213,362				4,655				22,390				1,195,627
Residential mortgage-backed securities	208,052				1,150				4,966				204,236
Agency commercial mortgage-backed securities	14,080				—				268				13,812
Other commercial mortgage-backed securities	33,105				47				437				32,715
Other asset-backed securities	171,917				20				1,665				170,272
	$	2,148,140			$	11,630			$	33,849			$	2,125,921
	December 31, 2017
(In thousands)	Amortized Cost				Gross Unrealized Gains				Gross Unrealized Losses				Estimated Fair Value
Fixed maturities, available for sale
U.S. Treasury obligations	$	134,323			$	485			$	1,181			$	133,627
U.S. Government-sponsored enterprise obligations	21,089				73				206				20,956
State and municipal bonds	618,414				14,248				419				632,243
Corporate debt	1,157,660				15,205				5,707				1,167,158
Residential mortgage-backed securities	196,741				2,438				1,335				197,844
Agency commercial mortgage-backed securities	10,827				23				108				10,742
Other commercial mortgage-backed securities	16,004				91				134				15,961
Other asset-backed securities	102,130				47				466				101,711
	$	2,257,188			$	32,610			$	9,556			$	2,280,242

Schedule of available for sale securities by contractual maturity

The recorded cost basis and estimated fair value of available-for-sale fixed maturities at June 30, 2018, 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	$	148,588			$	37,731			$	84,483			$	21,407			$	2,836			$	146,457
U.S. Government-sponsored enterprise obligations	32,331				206				11,647				19,715				134				31,702
State and municipal bonds	326,705				25,562				126,115				140,281				39,142				331,100
Corporate debt	1,213,362				116,559				666,434				374,029				38,605				1,195,627
Residential mortgage-backed securities	208,052																				204,236
Agency commercial mortgage-backed securities	14,080																				13,812
Other commercial mortgage-backed securities	33,105																				32,715
Other asset-backed securities	171,917																				170,272
	$	2,148,140																			$	2,125,921

Investments held in an unrealized loss position

The following tables provide summarized information with respect to investments held in an unrealized loss position at June 30, 2018 and December 31, 2017, including the length of time the investment had been held in a continuous unrealized loss position.

	June 30, 2018
	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	$	128,506			$	2,380			$	96,926			$	1,589			$	31,580			$	791
U.S. Government-sponsored enterprise obligations	30,769				650				23,960				397				6,809				253
State and municipal bonds	100,622				1,093				98,073				1,035				2,549				58
Corporate debt	919,141				22,390				801,410				17,525				117,731				4,865
Residential mortgage-backed securities	173,133				4,966				131,124				2,839				42,009				2,127
Agency commercial mortgage-backed securities	13,812				268				11,929				135				1,883				133
Other commercial mortgage-backed securities	26,251				437				24,311				390				1,940				47
Other asset-backed securities	155,165				1,665				141,632				1,474				13,533				191
	$	1,547,399			$	33,849			$	1,329,365			$	25,384			$	218,034			$	8,465

	December 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	$	110,788			$	1,181			$	67,135			$	554			$	43,653			$	627
U.S. Government-sponsored enterprise obligations	17,032				206				10,182				64				6,850				142
State and municipal bonds	23,122				419				15,168				102				7,954				317
Corporate debt	487,578				5,707				365,541				2,730				122,037				2,977
Residential mortgage-backed securities	109,659				1,335				64,121				402				45,538				933
Agency commercial mortgage-backed securities	4,423				108				2,458				34				1,965				74
Other commercial mortgage-backed securities	12,878				134				7,939				82				4,939				52
Other asset-backed securities	85,358				466				70,924				346				14,434				120
	$	850,838			$	9,556			$	603,468			$	4,314			$	247,370			$	5,242

Information regarding sales and purchases of available-for-sale securities

Other information regarding sales and purchases of fixed maturity available-for-sale securities is as follows:

	Three Months Ended June 30								Six Months Ended June 30
(In millions)	2018				2017				2018				2017
Proceeds from sales (exclusive of maturities and paydowns)	$	115.8			$	156.3			$	495.0			$	235.5
Purchases	$	184.6			$	198.7			$	552.5			$	359.1

Net Investment Income

Net investment income by investment category was as follows:

	Three Months Ended June 30								Six Months Ended June 30
(In thousands)	2018				2017				2018				2017
Fixed maturities	$	17,506			$	18,841			$	34,586			$	38,962
Equities	4,998				4,298				9,865				7,942
Short-term investments, including Other	1,332				978				2,639				1,778
BOLI	455				442				904				897
Investment fees and expenses	(1,907		)		(1,882		)		(3,583		)		(3,716		)
Net investment income	$	22,384			$	22,677			$	44,411			$	45,863

Investments in unconsolidated subsidiaries

ProAssurance's investment in unconsolidated subsidiaries were as follows:

	June 30, 2018			Carrying Value
(In thousands)	Percentage Ownership			June 30, 2018				December 31, 2017
Qualified affordable housing project tax credit partnerships	See below			$	74,895			$	84,607
Other tax credit partnerships	See below			4,980				6,118
All other investments, primarily investment fund LPs/LLCs	See below			310,339				239,866
				$	390,214			$	330,591

Equity in Earnings (Loss) of Unconsolidated Subsidiaries [Table Text Block]

Losses recorded and tax credits recognized related to ProAssurance's tax credit partnership investments were as follows:

	Three Months Ended June 30								Six Months Ended June 30
(In thousands)	2018				2017				2018				2017
Qualified affordable housing project tax credit partnerships
Losses recorded	$	5,612			$	3,964			$	9,712			$	7,272
Tax credits recognized	$	4,624			$	4,612			$	9,237			$	9,225
Historic tax credit partnerships
Losses recorded	$	1,506			$	2,350			$	3,382			$	2,766
Tax credits recognized	$	693			$	820			$	1,355			$	2,624

Net realized investment gains (losses)

Realized investment gains and losses are recognized on the first-in, first-out basis. The following table provides detailed information regarding net realized investment gains (losses):

	Three Months Ended June 30								Six Months Ended June 30
(In thousands)	2018				2017				2018				2017
Total OTTI losses:
Corporate debt	$	(404	)		$	—			$	(404	)		$	(419	)
Portion of OTTI losses recognized in other comprehensive income before taxes:
Corporate debt	—				—				—				248
Net impairment losses recognized in earnings	(404		)		—				(404		)		(171		)
Gross realized gains, available-for-sale fixed maturities	438				746				4,902				2,599
Gross realized (losses), available-for-sale fixed maturities	(1,725		)		(1,401		)		(3,772		)		(1,468		)
Net realized gains (losses), trading fixed maturities	(73		)		—				(73		)		—
Net realized gains (losses), equity investments	3,488				794				12,706				7,356
Net realized gains (losses), other investments	402				546				1,090				1,719
Change in unrealized holding gains (losses), trading fixed maturities	(170		)		—				(219		)		—
Change in unrealized holding gains (losses), equity investments	745				(3,191		)		(23,099		)		424
Change in unrealized holding gains (losses), convertible securities, carried at fair value	90				285				(864		)		598
Other	4				2				11				4
Net realized investment gains (losses)	$	2,795			$	(2,219	)		$	(9,722	)		$	11,061

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 June 30								Six Months Ended June 30
(In thousands)	2018				2017				2018				2017
Balance beginning of period	$	1,313			$	1,329			$	1,313			$	1,158
Additional credit losses recognized during the period, related to securities for which:
No OTTI has been previously recognized	—				—				—				171
Reductions due to:
Securities sold during the period (realized)	—				(16		)		—				(16		)
Balance June 30	$	1,313			$	1,313			$	1,313			$	1,313

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