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Investments | 12 Months Ended
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Dec. 31, 2011
Investments [Abstract] |
Investments |
2. | Investments
Short-term investments held at December 31, 2011 include $37.0 million of corporate bonds, certificates of deposit of $9.7 million and $0.3 million of municipal securities. All certificates of deposits are fully insured by the Federal Deposit Insurance Corporation. The gross unrealized gains and losses on, and the cost and fair value of, those investments classified as held-to-maturity at December 31, 2011 are summarized as follows:
|  | Cost or Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
|  | (In thousands) |
States and political subdivisions |  | $ | 441,273 |  |  | $ | 29,026 |  |  | $ | (360 | ) |  | $ | 469,939 |
Corporate bonds |  |  | 92,682 |  |  |  | 1,539 |  |  |  | (130 | ) |  |  | 94,091 |
Commercial mortgage-backed securities |  |  | 51,550 |  |  |  | 4,195 |  |  |  | — |  |  |  | 55,745 |
U.S. agency-based mortgage-backed securities |  |  | 46,096 |  |  |  | 4,162 |  |  |  | (44 | ) |  |  | 50,214 |
U.S. Treasury securities and obligations of U.S. Government agencies |  |  | 9,141 |  |  |  | 1,634 |  |  |  | — |  |  |  | 10,775 |
Asset-backed securities |  |  | 5,306 |  |  |  | 17 |  |  |  | (845 | ) |  |  | 4,478 |
Totals |  | $ | 646,048 |  |  | $ | 40,573 |  |  | $ | (1,379 | ) |  | $ | 685,242 |
The gross unrealized gains and losses on, and the cost and fair value of, those investments classified as available-for-sale at December 31, 2011 are summarized as follows:
|  | Cost or Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
|  | (In thousands) |
Fixed Maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
States and political subdivisions |  | $ | 55,275 |  |  | $ | 2,488 |  |  | $ | (1 | ) |  | $ | 57,762 |
Corporate bonds |  |  | 42,802 |  |  |  | 411 |  |  |  | (233 | ) |  |  | 42,980 |
Total Fixed Maturity |  |  | 98,077 |  |  |  | 2,899 |  |  |  | (234 | ) |  |  | 100,742 |
Equity securities |  |  | 11,776 |  |  |  | 661 |  |  |  | (197 | ) |  |  | 12,240 |
Totals |  | $ | 109,853 |  |  | $ | 3,560 |  |  | $ | (431 | ) |  | $ | 112,982 |
The gross unrealized gains and losses on, and the cost and fair value of, those investments classified as held-to-maturity at December 31, 2010 are summarized as follows:
|  | Cost or Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
|  | (In thousands) |
States and political subdivisions |  | $ | 466,898 |  |  | $ | 14,044 |  |  | $ | (1,797 | ) |  | $ | 479,145 |
U.S. agency-based mortgage-backed securities |  |  | 62,090 |  |  |  | 3,951 |  |  |  | (101 | ) |  |  | 65,940 |
Corporate bonds |  |  | 60,825 |  |  |  | 1,423 |  |  |  | (27 | ) |  |  | 62,221 |
Commercial mortgage-backed securities |  |  | 51,571 |  |  |  | 2,513 |  |  |  | — |  |  |  | 54,084 |
U.S. Treasury securities and obligations of U.S. Government agencies |  |  | 14,819 |  |  |  | 972 |  |  |  | — |  |  |  | 15,791 |
Asset-backed securities |  |  | 6,392 |  |  |  | 17 |  |  |  | (877 | ) |  |  | 5,532 |
Long-term certificates of deposit |  |  | 750 |  |  |  | — |  |  |  | — |  |  |  | 750 |
Totals |  | $ | 663,345 |  |  | $ | 22,920 |  |  | $ | (2,802 | ) |  | $ | 683,463 |
The gross unrealized gains and losses on, and the cost and fair value of, those investments classified as available-for-sale at December 31, 2010 are summarized as follows:
|  | Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
|  | (In thousands) |
Fixed Maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate bonds |  | $ | 15,946 |  |  | $ | 10 |  |  | $ | (147 | ) |  | $ | 15,809 |
U.S. Treasury securities and obligations of U.S. Government agencies |  |  | 5,919 |  |  |  | 16 |  |  |  | (95 | ) |  |  | 5,840 |
Total Fixed Maturity |  |  | 21,865 |  |  |  | 26 |  |  |  | (242 | ) |  |  | 21,649 |
Equity securities |  |  | 1,687 |  |  |  | 86 |  |  |  | — |  |  |  | 1,773 |
Totals |  | $ | 23,552 |  |  | $ | 112 |  |  | $ | (242 | ) |  | $ | 23,422 |
A summary of the cost or amortized cost and fair value of investments in fixed maturity securities, classified as held-to-maturity at December 31, 2011, by contractual maturity, is as follows:
|  | Cost or Amortized Cost |  |  | Fair Value |
|  | (In thousands) |
Maturity: |  |  |  |  |  |  |  |
Due in 2012 |  | $ | 107,892 |  |  | $ | 108,537 |
In 2013 through 2016 |  |  | 179,896 |  |  |  | 187,744 |
In 2017 through 2021 |  |  | 130,807 |  |  |  | 144,980 |
After 2021 |  |  | 124,501 |  |  |  | 133,544 |
U.S. agency-based mortgage-backed securities |  |  | 46,096 |  |  |  | 50,214 |
Commercial mortgage-backed securities |  |  | 51,550 |  |  |  | 55,745 |
Asset-backed securities |  |  | 5,306 |  |  |  | 4,478 |
Totals |  | $ | 646,048 |  |  | $ | 685,242 |
A summary of the cost or amortized cost and fair value of investments in fixed maturity securities, classified as available-for-sale at December 31, 2011, by contractual maturity, is as follows:
|  | Cost or Amortized Cost |  |  | Fair Value |
|  | (In thousands) |
Maturity: |  |  |  |  |  |  |  |
Due in 2012 |  | $ | 7,706 |  |  | $ | 7,749 |
In 2013 through 2016 |  |  | 23,355 |  |  |  | 23,324 |
In 2017 through 2021 |  |  | 15,664 |  |  |  | 15,943 |
After 2021 |  |  | 51,352 |  |  |  | 53,726 |
Totals |  | $ | 98,077 |  |  | $ | 100,742 |
At December 31, 2011, there were $18,889,134 of held-to-maturity investments on deposit with regulatory agencies of states in which the Company does business. A summary of the Company's realized gains and losses on sales, calls or redemptions of investments for 2011, 2010 and 2009 is as follows:
|  | Fixed Maturity Securities Available for Sale |  |  | Equity Securities |  |  | Other |  |  | Total |
|  | (In thousands) |
Year ended December 31, 2011 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Proceeds from sales |  | $ | 21,560 |  |  | $ | 14,769 |  |  | $ | — |  |  | $ | 36,329 |
Gross realized investment gains |  | $ | 815 |  |  | $ | 1,621 |  |  | $ | — |  |  | $ | 2,436 |
Gross realized investment (losses) |  |  | — |  |  |  | (98 | ) |  |  | (1 | ) |  |  | (99 | )
Net realized investment gain |  |  | 815 |  |  |  | 1,523 |  |  |  | (1 | ) |  |  | 2,337 |
Impairments |  |  | — |  |  |  | — |  |  |  | (169 | ) |  |  | (169 | )
Other, including gains on calls and redemptions |  |  | — |  |  |  | — |  |  |  | 60 |  |  |  | 60 |
Net realized investment gains |  | $ | 815 |  |  | $ | 1,523 |  |  | $ | (110 | ) |  | $ | 2,228 |
Year ended December 31, 2010 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Proceeds from sales |  | $ | 15,462 |  |  | $ | 14,695 |  |  | $ | — |  |  | $ | 30,157 |
Gross realized investment gains |  | $ | — |  |  | $ | 2,650 |  |  | $ | — |  |  | $ | 2,650 |
Gross realized investment (losses) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Net realized investment gain |  |  | — |  |  |  | 2,650 |  |  |  | — |  |  |  | 2,650 |
Impairments |  |  | — |  |  |  | (693 | ) |  |  | — |  |  |  | (693 | )
Other, including gains on calls and redemptions |  |  | 411 |  |  |  | — |  |  |  | 81 |  |  |  | 492 |
Net realized investment gains |  | $ | 411 |  |  | $ | 1,957 |  |  | $ | 81 |  |  | $ | 2,449 |
Year ended December 31, 2009 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Proceeds from sales |  | $ | — |  |  | $ | 12,229 |  |  | $ | — |  |  | $ | 12,229 |
Gross realized investment gains |  | $ | — |  |  | $ | 1,650 |  |  | $ | — |  |  | $ | 1,650 |
Gross realized investment (losses) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Net realized investment gain |  |  | — |  |  |  | 1,650 |  |  |  | — |  |  |  | 1,650 |
Impairments |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Other, including gains on calls and redemptions |  |  | — |  |  |  | — |  |  |  | 383 |  |  |  | 383 |
Net realized investment gains |  | $ | — |  |  | $ | 1,650 |  |  | $ | 383 |  |  | $ | 2,033 |
Major categories of the Company's net investment income are summarized as follows:
|  | Year Ended December 31, |
| 2011 |  |  | 2010 |  |  | 2009 |
|  | (In thousands) |
Gross investment income: |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturity securities |  | $ | 26,769 |  |  | $ | 26,571 |  |  | $ | 28,163 |
Short-term investments and cash and cash equivalents |  |  | 590 |  |  |  | 819 |  |  |  | 711 |
Equity securities |  |  | 181 |  |  |  | 71 |  |  |  | 477 |
Total gross investment income |  |  | 27,540 |  |  |  | 27,461 |  |  |  | 29,351 |
Investment expenses |  |  | (1,200 | ) |  |  | (1,219 | ) |  |  | (1,337 | )
Net investment income |  | $ | 26,340 |  |  | $ | 26,242 |  |  | $ | 28,014 |
The following table summarizes, as of December 31, 2011, the gross unrealized losses on securities that were at a loss for either less than twelve months or twelve months or longer:
|  | As of December 31, 2011 |
|  | Less Than 12 Months |  |  | 12 Months or Greater |  |  | Total |
|  | Fair Value of Investments with Unrealized Losses |  |  | Gross Unrealized Losses |  |  | Fair Value of Investments with Unrealized Losses |  |  | Gross Unrealized Losses |  |  | Fair Value of Investments with Unrealized Losses |  |  | Gross Unrealized Losses |
|  | (in thousands) |
Held-to-Maturity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate bonds |  | $ | 23,063 |  |  | $ | 130 |  |  | $ | — |  |  | $ | — |  |  | $ | 23,063 |  |  | $ | 130 |
States and political subdivisions |  |  | 2,291 |  |  |  | 3 |  |  |  | 5,718 |  |  |  | 357 |  |  |  | 8,009 |  |  |  | 360 |
U.S. agency-based mortgage-backed securities |  |  | — |  |  |  | — |  |  |  | 1,012 |  |  |  | 44 |  |  |  | 1,012 |  |  |  | 44 |
Asset-backed securities |  |  | 545 |  |  |  | 15 |  |  |  | 3,880 |  |  |  | 830 |  |  |  | 4,425 |  |  |  | 845 |
Total held-to-maturity securities |  |  | 25,899 |  |  |  | 148 |  |  |  | 10,610 |  |  |  | 1,231 |  |  |  | 36,509 |  |  |  | 1,379 |
Available-for Sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate bonds |  | $ | 14,301 |  |  | $ | 233 |  |  | $ | — |  |  | $ | — |  |  | $ | 14,301 |  |  | $ | 233 |
States and political subdivisions |  |  | 222 |  |  |  | 1 |  |  |  | — |  |  |  | — |  |  |  | 222 |  |  |  | 1 |
Equity Securities |  |  | 2,789 |  |  |  | 197 |  |  |  | — |  |  |  | — |  |  |  | 2,789 |  |  |  | 197 |
Total available-for-sale securities |  |  | 17,312 |  |  |  | 431 |  |  |  | — |  |  |  | — |  |  |  | 17,312 |  |  |  | 431 |
Total |  | $ | 43,211 |  |  | $ | 579 |  |  | $ | 10,610 |  |  | $ | 1,231 |  |  | $ | 53,821 |  |  | $ | 1,810 |
The following table summarizes, as of December 31, 2010, the gross unrealized losses on securities that were at a loss for either less than twelve months or twelve months or longer:
|  | As of December 31, 2010 |
|  | Less Than 12 Months |  |  | 12 Months or Greater |  |  | Total |
|  | Fair Value of Investments with Unrealized Losses |  |  | Gross Unrealized Losses |  |  | Fair Value of Investments with Unrealized Losses |  |  | Gross Unrealized Losses |  |  | Fair Value of Investments with Unrealized Losses |  |  | Gross Unrealized Losses |
|  | (in thousands) |
Held-to-Maturity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
States and political subdivisions |  | $ | 65,976 |  |  | $ | 1,200 |  |  | $ | 4,135 |  |  | $ | 597 |  |  | $ | 70,111 |  |  | $ | 1,797 |
Corporate bonds |  |  | 3,480 |  |  |  | 27 |  |  |  | — |  |  |  | — |  |  |  | 3,480 |  |  |  | 27 |
U.S. agency-based mortgage-backed securities |  |  | 1,016 |  |  |  | 5 |  |  |  | 3,289 |  |  |  | 96 |  |  |  | 4,305 |  |  |  | 101 |
Asset-backed securities |  |  | 715 |  |  |  | 43 |  |  |  | 4,761 |  |  |  | 834 |  |  |  | 5,476 |  |  |  | 877 |
Total held-to-maturity securities |  |  | 71,187 |  |  |  | 1,275 |  |  |  | 12,185 |  |  |  | 1,527 |  |  |  | 83,372 |  |  |  | 2,802 |
Available-for Sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate bonds |  | $ | 13,446 |  |  | $ | 147 |  |  | $ | — |  |  | $ | — |  |  | $ | 13,446 |  |  | $ | 147 |
U.S Treasury securities and obligations of U.S. government agencies |  |  | 2,010 |  |  |  | 95 |  |  |  | — |  |  |  | — |  |  |  | 2,010 |  |  |  | 95 |
Total available-for-sale securities |  |  | 15,456 |  |  |  | 242 |  |  |  | — |  |  |  | — |  |  |  | 15,456 |  |  |  | 242 |
Total |  | $ | 86,643 |  |  | $ | 1,517 |  |  | $ | 12,185 |  |  | $ | 1,527 |  |  | $ | 98,828 |  |  | $ | 3,044 |
The Company regularly reviews its investment portfolio to evaluate the necessity of recording impairment losses for other-than-temporary declines in the fair value of our investments. The Company considers various factors in determining if a decline in the fair value of an individual security is other-than-temporary. The key factors considered are:
| • |  | any reduction or elimination of dividends, or nonpayment of scheduled principal or interest payments;
| • |  | the financial condition and near-term prospects of the issuer of the applicable security, including any specific events that may affect its operations or earnings;
| • |  | how long and by how much the fair value of the security has been below its cost or amortized cost;
| • |  | any downgrades of the security by a rating agency;
| • |  | our intent not to sell the security for a sufficient time period for it to recover its value;
| • |  | the likelihood of being forced to sell the security before the recovery of its value; and
| • |  | an evaluation as to whether there are any credit losses on debt securities.
The Company reviewed all securities with unrealized losses in accordance with the impairment policy described above. The Company determined that the unrealized losses in the fixed maturity securities portfolio related primarily to changes in market interest rates since the date of purchase, current conditions in the capital markets and the impact of those conditions on market liquidity and prices generally, and the transfer of the investments from the available-for-sale classification to the held-to-maturity classification in January 2004. The Company expects to recover the carrying value of these securities since management does not intend to sell the securities and it is not more likely than not that the Company will be required to sell the security before the recovery of its amortized cost basis. In addition, none of the unrealized losses on debt securities are considered credit losses. In 2011, we recorded an impairment charge of $0.2 million related to one asset-backed security in our held-to-maturity investment portfolio. We impaired this security because, among other things, a loss of principal was anticipated based upon estimated future cash flows.

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- Definition Tabular disclosure of investments in certain debt and equity securities (and certain other trading assets) which include all debt and equity securities (other than those equity securities accounted for under the equity or cost methods of accounting) with readily determinable fair values. Other trading assets include assets that are carried on the balance sheet at fair value and held for trading purposes. A debt security represents a creditor relationship with an enterprise that is in the form of a security. Debt securities include, among other items, US Treasury securities, US government securities, municipal securities, corporate bonds, convertible debt, commercial paper, and all securitized debt instruments. An equity security represents an ownership interest in an enterprise or the right to acquire or dispose of an ownership interest in an enterprise at fixed or determinable prices. Equity securities include, among other things, common stock, certain preferred stock, warrant rights, call options, and put options, but do not include convertible debt. An entity may opt to provide the reader with additional narrative text to better understand the nature of investments in debt and equity securities (and other trading assets). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27405-111563 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6379141&loc=d3e15032-111544 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Equity Security -URI http://asc.fasb.org/extlink&oid=6511694 -Topic 320 Reference 4: 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=6872113&loc=d3e27161-111563 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Debt Security -URI http://asc.fasb.org/extlink&oid=6509901 -Topic 320 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 3, 19, 20, 21, 22, 137 -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 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27232-111563 Reference 8: 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=6872113&loc=d3e27357-111563 Reference 9: 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 10: 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=6872113&loc=d3e27290-111563 + Details
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