Summary of Investments (Tables)

6 Months Ended

Jun. 30, 2018

A reconciliation of the amortized cost (cost for equity securities) to fair value of investments in held-to-maturity and available-for-sale fixed maturity and equity securities, presented on a consolidated basis, including both continuing and discontinued operations as of June 30, 2018 and December 31, 2017, is as follows:



June 30, 2018
Type of Investment	Cost or Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Fair Value
HELD-TO-MATURITY
Fixed maturities:
Bonds
Corporate bonds - financial services	$	150	$	—	$	—	$	150
Total Held-to-Maturity Fixed Maturities	$	150	$	—	$	—	$	150
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	$	120,272	$	23	$	341	$	119,954
U.S. government agency	196,348		633		2,712		194,269
States, municipalities and political subdivisions
General obligations:
Midwest	99,821		893		1,053		99,661
Northeast	40,913		385		187		41,111
South	119,745		612		2,040		118,317
West	110,147		916		1,492		109,571
Special revenue:
Midwest	143,606		1,368		1,208		143,766
Northeast	63,889		426		1,431		62,884
South	247,056		1,414		4,457		244,013
West	147,388		1,251		2,469		146,170
Foreign bonds	7,751		72		—		7,823
Public utilities	49,629		196		1,141		48,684
Corporate bonds
Energy	22,477		111		316		22,272
Industrials	42,286		143		486		41,943
Consumer goods and services	44,100		106		680		43,526
Health care	13,071		65		159		12,977
Technology, media and telecommunications	26,632		43		790		25,885
Financial services	73,501		182		1,746		71,937
Mortgage-backed securities	8,382		28		223		8,187
Collateralized mortgage obligations
Government national mortgage association	73,482		181		2,650		71,013
Federal home loan mortgage corporation	111,082		136		2,044		109,174
Federal national mortgage association	46,657		46		1,305		45,398
Asset-backed securities	3,238		325		79		3,484
Total Available-for-Sale Fixed Maturities	$	1,811,473	$	9,555	$	29,009	$	1,792,019



December 31, 2017
Type of Investment	Cost or Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Fair Value
HELD-TO-MATURITY
Fixed maturities:
Bonds
Corporate bonds - financial services	$	150	$	—	$	—	$	150
Mortgage-backed securities	34		—		—		34
Total Held-to-Maturity Fixed Maturities	$	184	$	—	$	—	$	184
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	$	17,073	$	4	$	186	$	16,891
U.S. government agency	121,574		1,311		717		122,168
States, municipalities and political subdivisions
General obligations:
Midwest	107,689		2,446		439		109,696
Northeast	47,477		1,174		10		48,641
South	139,870		2,462		813		141,519
West	111,123		2,351		463		113,011
Special revenue:
Midwest	155,475		3,620		351		158,744
Northeast	79,028		1,351		619		79,760
South	260,145		5,218		1,851		263,512
West	156,576		2,929		1,198		158,307
Foreign bonds	51,361		1,441		49		52,753
Public utilities	206,028		3,386		270		209,144
Corporate bonds
Energy	93,191		1,972		110		95,053
Industrials	218,067		3,881		241		221,707
Consumer goods and services	183,253		3,498		494		186,257
Health care	74,125		1,312		29		75,408
Technology, media and telecommunications	146,853		2,376		250		148,979
Financial services	277,824		5,769		442		283,151
Mortgage-backed securities	13,828		101		238		13,691
Collateralized mortgage obligations
Government national mortgage association	157,836		1,921		2,274		157,483
Federal home loan mortgage corporation	201,320		1,879		4,047		199,152
Federal national mortgage association	104,903		1,703		1,174		105,432
Asset-backed securities	4,282		362		8		4,636
Total Available-for-Sale Fixed Maturities	$	2,928,901	$	52,467	$	16,273	$	2,965,095
Equity securities:
Common stocks



Public utilities	$	6,394	$	16,075	$	30	$	22,439
Energy	6,514		8,171		120		14,565
Industrials	13,117		53,522		120		66,519
Consumer goods and services	10,110		15,742		164		25,688
Health care	7,763		32,340		—		40,103
Technology, media and telecommunications	6,067		11,556		115		17,508
Financial services	11,529		104,985		67		116,447
Nonredeemable preferred stocks	992		305		—		1,297
Total Available-for-Sale Equity Securities	$	62,486	$	242,696	$	616	$	304,566
Total Available-for-Sale Securities	$	2,991,387	$	295,163	$	16,889	$	3,269,661

The following table is a reconciliation of the amortized cost (cost for equity securities) to fair value of investments in held-to-maturity and available-for-sale fixed maturity and equity securities for continuing and discontinued operations by investment type at June 30, 2018 and December 31, 2017:



June 30, 2018
Type of Investment	Cost or Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Fair Value
HELD-TO-MATURITY
Fixed maturities:
Continuing operations	$	150	$	—	$	—	$	150
Discontinued operations	—		—		—		—
Total Held-to-Maturity Fixed Maturities	$	150	$	—	$	—	150
AVAILABLE-FOR-SALE
Fixed maturities:
Continuing operations	$	1,811,473	$	9,555	$	29,009	$	1,792,019
Discontinued operations	—		—		—		—
Total Available-for-Sale Fixed Maturities	$	1,811,473	$	9,555	$	29,009	$	1,792,019

Note: The sale of the life insurance business was completed on March 30, 2018.



December 31, 2017
Type of Investment	Cost or Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Fair Value
HELD-TO-MATURITY
Fixed maturities:
Continuing operations	$	150	$	—	$	—	$	150
Discontinued operations	34		—		—		34
Total Held-to-Maturity Fixed Maturities	$	184	$	—	$	—	$	184
AVAILABLE-FOR-SALE
Fixed maturities:
Continuing operations	$	1,516,610	$	27,412	$	8,952	$	1,535,070
Discontinued operations	1,412,291		25,055		7,321		1,430,025
Total Available-for-Sale Fixed Maturities	2,928,901		52,467		16,273		2,965,095
Equity securities:
Continuing operations	$	57,387	$	224,065	$	539	$	280,913
Discontinued operations	5,099		18,631		77		23,653
Total Available-for-Sale Equity Securities	62,486		242,696		616		304,566
Total Available-for-Sale Securities	$	2,991,387	$	295,163	$	16,889	$	3,269,661

Maturities

The amortized cost and fair value of held-to-maturity, available-for-sale and trading fixed maturity securities at June 30, 2018, by contractual maturity, are shown in the following tables. The table below includes investments from continuing operations. 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. Asset-backed securities, mortgage-backed securities and collateralized mortgage obligations may be subject to prepayment risk and are therefore not categorized by contractual maturity.



Maturities
	Held-To-Maturity				Available-For-Sale				Trading
June 30, 2018	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	—	$	—	$	80,163	$	80,314	$	1,807	$	1,871
Due after one year through five years	150		150		276,772		277,322		8,530		10,268
Due after five years through 10 years	—		—		481,651		479,036		1,100		1,020
Due after 10 years	—		—		730,046		718,091		1,267		1,546
Asset-backed securities	—		—		3,238		3,484		—		—
Mortgage-backed securities	—		—		8,382		8,187		—		—
Collateralized mortgage obligations	—		—		231,221		225,585		—		—
	$	150	$	150	$	1,811,473	$	1,792,019	$	12,704	$	14,705

Net Realized Investment Gains and Losses

A summary of the components of net realized investment gains (losses) is as follows:



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Net realized investment gains (losses) from continuing operations:
Fixed maturities:
Available-for-sale	$	(219	)	$	103		$	(193	)	$	527
Trading securities
Change in fair value	(148		)	176			(259		)	547
Sales	349			(11		)	905			46
Equity securities	1,315			524			(7,020		)	1,921
Real estate	—			289			—			289
Total net realized investment gains (losses) from continuing operations	$	1,297		$	1,081		$	(6,567	)	$	3,330
Total net realized investment gains (losses) from discontinued operations	—			1,599			(1,057		)	3,304
Total net realized investment gains (losses)	$	1,297		$	2,680		$	(7,624	)	$	6,634

Proceeds and Gross Realized Gains and Losses

The proceeds and gross realized gains on the sale of available-for-sale fixed maturity securities from continuing operations are as follows:



	Three Months Ended June 30,					Six Months Ended June 30,
	2018			2017		2018			2017
Proceeds from sales	$	23,994		$	—	$	23,994		$	1,096
Gross realized gains	140			—		140			1,046
Gross realized losses	(307		)	—		(307		)	—

The proceeds and gross realized gains on the sale of available-for-sale fixed maturity securities from discontinued operations are as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Proceeds from sales	$	—	$	—	$	—	$	3,963
Gross realized gains	—		—		—		1,254
Gross realized losses	—		—		—		(78		)

Note: The sale of the life insurance business was completed on March 30, 2018.

Unrealized Investment Appreciation

A summary of the changes in net unrealized investment appreciation during the reporting period is as follows:



	Six Months Ended June 30,
	2018			2017
Change in net unrealized investment appreciation
Available-for-sale fixed maturities	$	(65,127	)	$	32,132
Available-for-sale equity securities	—			11,861
Deferred policy acquisition costs	7,274			(3,753		)
Income tax effect	12,148			(14,084		)
Net unrealized investment depreciation of discontinued operations, sold	6,714			—
Cumulative change in accounting principles	(191,244		)	—
Total change in net unrealized investment appreciation, net of tax	$	(230,235	)	$	26,156

Investments in Unrealized Loss Position




June 30, 2018	Less than 12 months					12 months or longer					Total
Type of Investment	Number of Issues	Fair Value		Gross Unrealized Depreciation		Number of Issues	Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	7	$	65,396	$	201	2	$	4,687	$	140	$	70,083	$	341
U.S. government agency	26	126,009		2,357		2	7,644		355		133,653		2,712
States, municipalities and political subdivisions
General obligations
Midwest	13	19,600		140		3	19,177		913		38,777		1,053
Northeast	4	13,208		78		1	3,534		109		16,742		187
South	17	35,461		503		11	28,623		1,537		64,084		2,040
West	12	28,125		388		8	24,959		1,104		53,084		1,492
Special revenue
Midwest	18	33,830		356		7	18,510		852		52,340		1,208
Northeast	4	12,472		120		11	27,636		1,311		40,108		1,431
South	30	61,106		1,034		26	65,618		3,423		126,724		4,457
West	17	31,156		237		21	52,290		2,232		83,446		2,469
Public utilities	19	39,933		1,141		—	—		—		39,933		1,141
Corporate bonds
Energy	7	10,465		316		—	—		—		10,465		316
Industrials	8	22,206		486		—	—		—		22,206		486
Consumer goods and services	14	28,226		680		—	—		—		28,226		680
Health care	4	6,489		159		—	—		—		6,489		159
Technology, media and telecommunications	10	22,147		790		—	—		—		22,147		790
Financial services	21	49,917		1,440		1	5,293		306		55,210		1,746
Mortgage-backed securities	34	4,217		113		11	2,012		110		6,229		223
Collateralized mortgage obligations
Government national mortgage association	21	50,094		1,766		7	11,744		884		61,838		2,650
Federal home loan mortgage corporation	20	46,374		964		7	17,556		1,080		63,930		2,044
Federal national mortgage association	17	35,019		944		3	6,882		361		41,901		1,305
Asset-backed securities	1	2,846		79		—	—		—		2,846		79
Total Available-for-Sale Fixed Maturities	324	$	744,296	$	14,292	121	$	296,165	$	14,717	$	1,040,461	$	29,009




December 31, 2017	Less than 12 months					12 months or longer					Total
Type of Investment	Number of Issues	Fair Value		Gross Unrealized Depreciation		Number of Issues	Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	5	$	10,370	$	67	2	$	5,765	$	119	$	16,135	$	186
U.S. government agency	11	64,842		390		5	19,372		327		84,214		717
States, municipalities and political subdivisions
General obligations
Midwest	2	2,177		8		3	19,729		431		21,906		439
Northeast	—	—		—		1	3,644		10		3,644		10
South	3	7,959		32		11	29,545		781		37,504		813
West	2	5,944		18		8	25,755		445		31,699		463
Special revenue
Midwest	2	3,486		15		7	19,130		336		22,616		351
Northeast	1	4,471		37		11	28,476		582		32,947		619
South	8	7,749		107		27	69,917		1,744		77,666		1,851
West	3	5,424		16		22	56,753		1,182		62,177		1,198
Foreign bonds	1	857		49		—	—		—		857		49
Public utilities	8	19,186		79		5	8,446		191		27,632		270
Corporate bonds
Energy	1	2,236		13		1	1,606		97		3,842		110
Industrials	10	27,773		146		2	4,275		95		32,048		241
Consumer goods and services	14	32,781		248		3	6,813		246		39,594		494
Health care	4	9,947		29		—	—		—		9,947		29
Technology, media and telecommunications	12	35,319		122		3	10,413		128		45,732		250
Financial services	22	50,144		256		4	11,389		186		61,533		442
Mortgage-backed securities	10	2,458		18		10	6,641		220		9,099		238
Collateralized mortgage obligations
Government national mortgage association	20	49,764		629		17	46,969		1,645		96,733		2,274
Federal home loan mortgage corporation	11	37,543		577		20	75,679		3,470		113,222		4,047
Federal national mortgage association	11	31,958		342		11	20,123		832		52,081		1,174
Asset-backed securities	1	992		8		—	—		—		992		8
Total Available-for-Sale Fixed Maturities	162	$	413,380	$	3,206	173	$	470,440	$	13,067	$	883,820	$	16,273
Equity securities:
Common stocks
Public utilities	—	$	—	$	—	1	$	278	$	30	$	278	$	30
Energy	2	528		120		—	—		—		528		120
Industrials	1	99		13		5	193		107		292		120
Consumer goods and services	—	—		—		2	151		164		151		164
Technology, media and telecommunications	2	466		95		1	4		20		470		115
Financial services	2	193		55		1	9		12		202		67
Total Available-for-Sale Equity Securities	7	$	1,286	$	283	10	$	635	$	333	$	1,921	$	616
Total Available-for-Sale Securities	169	$	414,666	$	3,489	183	$	471,075	$	13,400	$	885,741	$	16,889

The tables on the following pages are a reconciliation for continuing and discontinued operations of our total fixed maturity and equity securities that were in an unrealized loss position at June 30, 2018 and December 31, 2017. The sale of our life insurance business was completed on March 30, 2018. The securities are presented by the length of time they have been continuously in an unrealized loss position:




June 30, 2018	Less than 12 months					12 months or longer					Total
Type of Investment	Number of Issues	Fair Value		Gross Unrealized Depreciation		Number of Issues	Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation
AVAILABLE-FOR-SALE
Fixed maturities:
Continuing operations	324	$	744,296	$	14,292	121	$	296,165	$	14,717	$	1,040,461	$	29,009
Discontinued operations	—	—		—		—	—		—		—		—
Total Available-for-Sale Fixed Maturities	324	$	744,296	$	14,292	121	$	296,165	$	14,717	$	1,040,461	$	29,009

Note: The sale of the life insurance business was completed on March 30, 2018.




December 31, 2017	Less than 12 months					12 months or longer					Total
Type of Investment	Number of Issues	Fair Value		Gross Unrealized Depreciation		Number of Issues	Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation
AVAILABLE-FOR-SALE
Fixed maturities:
Continuing operations	88	$	232,489	$	1,791	112	$	302,815	$	7,161	$	535,304	$	8,952
Discontinued operations	74	180,891		1,415		61	167,625		5,906		348,516		7,321
Total Available-for-Sale Fixed Maturities	162	$	413,380	$	3,206	173	$	470,440	$	13,067	$	883,820	$	16,273
Equity securities:
Continuing operations	5	$	1,129	$	236	6	$	385	$	303	$	1,514	$	539
Discontinued operations	2	157		47		4	250		30		407		77
Total Available-for-Sale Equity Securities	7	$	1,286	$	283	10	$	635	$	333	$	1,921	$	616
Total Available-for-Sale Securities	169	$	414,666	$	3,489	183	$	471,075	$	13,400	$	885,741	$	16,889