Investments (Tables)

6 Months Ended

Jun. 30, 2013

Cash And Cash Equivalents [Abstract]

Investment Holdings by Type of Instrument

The following table presents the Company’s investment holdings by type of instrument as of the periods presented (in thousands):


	As of June 30, 2013						As of December 31, 2012
	Cost or Amortized Cost		Fair Value		Carrying Value		Cost or Amortized Cost (4)		Fair Value			Carrying Value
Cash and cash equivalents (1)	$	180,857	$	180,857	$	180,857	$	347,392	$	347,392		$	347,392
Restricted cash and cash equivalents		2,653		2,653		2,653		33,009		33,009			33,009
Trading portfolio:
Fixed maturities:
U.S. government obligations and agencies		—		—		—		3,192		4,009			4,009
Equity securities: (4)
Common stock:
Metals and mining		—		—		—		31,113		26,130			26,130
Energy		—		—		—		12,053		10,868			10,868
Other		—		—		—		8,416		8,215			8,215
Exchange-traded and mutual funds:
Metals and mining		—		—		—		22,687		21,989			21,989
Agriculture		—		—		—		10,705		10,265			10,265
Energy		—		—		—		4,992		5,068			5,068
Indices		—		—		—		2,827		2,506			2,506
Non-hedging derivative asset (liability), net (2)		—		—		—		69		(21	)		(21	)
Other investments (3)		—		—		—		517		317			317

Total trading portfolio investments		—		—		—		96,571		89,346			89,346

Available for sale portfolio:
Fixed maturities:
U.S. government obligations and agencies		105,235		104,154		104,154		—		—			—
Corporate bonds		95,437		93,971		93,971		—		—			—
Mortgage-backed and asset-backed securities		91,544		91,263		91,263		—		—			—
Equity securities:
Common stock		11,999		11,625		11,625		—		—			—
Mutual funds		42,925		41,882		41,882		—		—			—

Total available for sale investments		347,140		342,895		342,895		—		—			—

Total investments	$	530,650	$	526,405	$	526,405	$	476,972	$	469,747		$	469,747

(1)	Cash and cash equivalents include short-term debt securities consisting of direct obligations of the U.S. Treasury or money-market accounts that invest in or are collateralized by direct obligations of the U.S. Treasury and other U.S. government guaranteed securities.

(2)	Derivatives are included in Other assets and Other liabilities and accrued expenses in the Consolidated Balance Sheets.

(3)	Other investments represent physical metals held by the Company and are included in Other assets in the Consolidated Balance Sheets.

(4)

The cost for equity securities as of December 31, 2012 has been restated from the amounts reported on Form 10-K for the year ended December 31, 2012. The amounts previously reported represented the cost determined under a statutory basis of accounting. The restatement does not affect any amounts reported in the consolidated financial statements including the carrying amount of equity securities reported in the consolidated balance sheet as of December 31, 2012 and unrealized gains and losses reported in the consolidated statement of income for the year ended December 31, 2012.

Investment Income (Expense) Comprised Primarily of Interest and Dividends

The following table presents the components of net investment income, comprised primarily of interest and dividends, for the periods presented (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Cash and cash equivalents (1)	$	122		$	60		$	242		$	239
Fixed maturities		(30	)		1			(30	)		11
Equity securities		279			160			367			219

Total investment income		371			221			579			469
Less investment expenses		(234	)		(237	)		(430	)		(521	)

Net investment (expense) income	$	137		$	(16	)	$	149		$	(52	)

(1)	Includes interest earned on restricted cash and cash equivalents.

Effect of Trading Activities by Type of Instrument and by Line Item in Condensed Consolidated Statements of Income

The following table provides the effect of trading activities on the Company’s results of operations for the periods presented by type of instrument and by line item in the consolidated statements of income (in thousands):


	Three Months Ended June 30,					Six Months Ended June 30,
	2013		2012			2013			2012
Realized gains (losses) on investments:
Fixed maturities	$	—	$	—		$	—		$	—
Equity securities		—		(1,836	)		(15,969	)		(9,429	)
Derivatives (non-hedging instruments) (1)		—		131			(68	)		275

Total realized gains (losses) on trading portfolio		—		(1,705	)		(16,037	)		(9,154	)
Change in unrealized gains (losses) on investments:
Fixed maturities		—		100			13			137
Equity securities		—		(5,817	)		7,758			3,172
Derivatives (non-hedging instruments) (1)		—		(30	)		89			117
Other		—		(41	)		14			(27	)

Total change in unrealized gains (losses) on trading portfolio		—		(5,788	)		7,874			3,399

Net gains (losses) recognized on trading portfolio	$	—	$	(7,493	)	$	(8,163	)	$	(5,755	)

(1)	This table provides the alternative quantitative disclosures permitted for derivatives that are not used as hedging instruments and are included in the trading portfolio.

Cost or Amortized Cost and Fair Value of Securities Available for Sale

The following table provides the cost or amortized cost and fair value of securities available for sale as of the period presented (in thousands):


	June 30, 2013
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Fixed Maturities:
US government and agency obligations	$	105,235	$	—	$	(1,081	)	$	104,154
Corporate bonds		95,437		1		(1,467	)		93,971
Mortgage-backed and asset-backed securities		91,544		40		(321	)		91,263
Equity Securities:
Common stock		11,999		101		(475	)		11,625
Mutual funds		42,925		107		(1,150	)		41,882

Total	$	347,140	$	249	$	(4,494	)	$	342,895

Summarized Fair Value and Gross Unrealized Losses on Securities Available for Sale

The following table summarizes the fair value and gross unrealized losses on securities available for sale, aggregated by major investment category and length of time that individual securities have been in a continuous unrealized loss position as of June 30, 2013 (in thousands):


	Less than 12 months							12 months or longer
	Number of issues		Fair value		Unrealized losses			Number of issues		Fair value		Unrealized losses
Fixed maturities:
US government and agency obligations		9	$	104,118	$	(1,081	)		—	$	—	$	—
Corporate bonds		77		92,771		(1,467	)		—		—		—
Mortgage-backed and asset-backed securities		14		61,831		(321	)		—		—		—
Equity securities:
Common stock		33		8,314		(475	)		—		—		—
Mutual funds		7		36,211		(1,150	)		—		—		—

Total		140	$	303,245	$	(4,494	)		—	$	—	$	—

Amortized Cost and Fair Value of Fixed Maturities Available for Sale by Contractual Maturity

The following table presents the amortized cost and fair value of fixed maturities available for sale by contractual maturity as of June 30, 2013 (in thousands):


	Fixed Maturities Securities Available for Sale
	Amortized Cost		Fair Value
Due in one year or less	$	5,903	$	5,893
Due after one year through five years		189,607		187,391
Due after five years through ten years		5,162		4,841
Due after ten years		—		—
Mortgage-backed and asset-backed securities		91,544		91,263

Total	$	292,216	$	289,388

Summary of Securities Available for Sale

The following table provides certain information related to securities available for sale during the periods presented (in thousands):


	Three Months Ended June 30, 2013			Six Months Ended June 30, 2013
Sales proceeds (fair value)	$	14		$	14
Gross realized gains	$	—		$	—
Gross realized losses	$	(1	)	$	(1	)
Other than temporary losses	$	—		$	—

- 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.

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- Definition

Tabular disclosure of the realized and unrealized gains and losses reported in the statement of income which have resulted from the sale and holding of marketable securities, respectively, as well as the sale or disposal of cost method investments. Such amounts would include realized gains and losses on the sale or disposal of trading, available-for-sale, and held-to-maturity securities, unrealized gains and losses on trading securities, unrealized gains and losses on available-for-sale and held-to-maturity securities transferred to the trading securities category, realized gains and losses on the sale or disposal of cost method investments, and losses recognized for other than temporary impairments (OTTI) of such investments.

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- Definition

Tabular disclosure of investment income, including, but not limited to, interest and dividend income and amortization of discount (premium) derived from debt and equity securities. Excludes realized and unrealized gain (loss) on investments.

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