v2.4.0.6
Investments (Tables)
 6 Months Ended
Jun. 30, 2012
Amortized Cost, Estimated Market Value and Gross Unrealized Appreciation and Depreciation of Available-for-sale Securities

The amortized cost, estimated market value and gross unrealized appreciation and depreciation of available-for-sale securities as of June 30, 2012, are presented in the table below:

 

(Amounts in Thousands)   Original or
amortized
cost		     Gross
unrealized
gains		     Gross
unrealized
losses		    

 

Market

value

  
Preferred stock   $ 5,091     $ 57     $ (289 )   $ 4,859  
Common stock     20,904       2,238       (2,171 )     20,971  
U.S. treasury securities     44,087       2,781       (5 )     46,863  
U.S. government agencies     53,619       762       —       54,381  
Municipal bonds     261,865       11,274       (87 )     273,052  
Corporate bonds:                                
Finance     744,393       26,438       (16,202 )     754,629  
Industrial     266,459       9,407       (3,105 )     272,761  
Utilities     38,227       2,003       (929 )     39,301  
Commercial mortgage backed securities     10,015       103       —       10,118  
Residential mortgage backed securities:                                
Agency backed     346,956       20,794       (320 )     367,430  
Non-agency backed     7,950       2       (728 )     7,224  
    $ 1,799,566     $ 75,859     $ (23,836 )   $ 1,851,589  
Summary of Available for Sale Fixed Securities by Contractual Maturity

A summary of the Company’s available-for-sale fixed securities as of June 30, 2012, by contractual maturity, is shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

 

(Amounts in Thousands)   Amortized
Cost		    

 

Fair Value

  
Due in one year or less   $ 14,363     $ 14,907  
Due after one through five years     373,115       364,853  
Due after five through ten years     763,908       794,965  
Due after ten years     257,264       266,262  
Mortgage backed securities     364,921       384,772  
Total fixed maturities   $ 1,773,571     $ 1,825,759  
Net Investment Income

Net investment income for the three and six months ended June 30, 2012 and 2011 was derived from the following sources:

 

    Three Months Ended June 30,     Six Months Ended June 30,  
(Amounts in Thousands)   2012     2011     2012     2011  
Fixed maturity securities   $ 16,059     $ 12,302     $ 29,723     $ 25,976  
Equity maturities     100       120       498       286  
Cash and short term investments     385       966       976       1,572  
      16,544       13,388       31,197       27,834  
Less:                                
Investment expenses and interest expense on securities sold under agreement to repurchase     200       221       335       475  
    $ 16,344     $ 13,167     $ 30,862     $ 27,359  
Summary of Gross Unrealized Losses of Fixed-maturities and Equity Securities

The table below summarizes the gross unrealized losses of our fixed maturity and equity securities by length of time the security has continuously been in an unrealized position as of June 30, 2012:

 

    Less Than 12 Months     12 Months or More     Total  
(Amounts in Thousands)   Fair
Market
Value		    

 

Unrealized
Losses

     No. of
Positions
Held		     Fair
Market
Value		    

 

Unrealized
Losses

     No. of
Positions
Held		     Fair
Market
Value		    

 

Unrealized
Losses

  
Common and preferred stock   $ 10,377     $ (2,428 )     26     $ 306     $ (32 )     1     $ 10,683     $ (2,460 )
U.S. treasury securities     3,160       (5 )     5       —       —       —       3,160       (5 )
U.S. government agencies     —       —       —       —       —       —       —       —  
Municipal bonds     56,538       (87 )     14       —       —       —       56,538       (87 )
Corporate bonds:                                                                
Finance     201,962       (6,063 )     48       86,509       (10,139 )     16       288,471       (16,202 )
Industrial     112,721       (2,551 )     32       2,813       (554 )     2       115,534       (3,105 )
Utilities     5,372       (443 )     2       5,677       (486 )     1       11,049       (929 )
Commercial Mortgage backed securities     —       —       —       —       —       —       —       —  
Residential mortgage backed securities:                                                                
Agency backed     17,571       (320 )     1       —       —       —       17,571       (320 )
Non-agency backed     7,138       (728 )     2       —       —       —       7,138       (728 )
Total temporarily impaired securities   $ 414,839     $ (12,625 )     130     $ 95,305     $ (11,211 )     20     $ 510,144     $ (23,836 )
Notional Amounts of Interest Rate Swaps by Remaining Maturity

The following table presents the notional amounts by remaining maturity of the Company’s interest rate swaps as of June 30, 2012: 

 

  Remaining Life of Notional Amount (1)  

 

(Amounts in Thousands)

   One
Year		     Two
Through
Five Years		     Six Through
Ten Years		     After Ten
years		    

 

Total

  
Interest rate swaps   $ —     $ 70,000     $ —     $ —     $ 70,000  

 

(1) Notional amount is not representative of either market risk or credit risk and is not recorded in the consolidated balance sheet.
Fair Values of Restricted Assets

The fair values of our restricted assets as of June 30, 2012 and December 31, 2011 are as follows:

 

(Amounts in Thousands)   2012     2011  
Restricted cash   $ 45,333     $ 23,104  
Restricted investments     280,866       187,227  
Total restricted cash and investments   $ 326,199     $ 210,331