Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2016

Balances Of Assets And Liabilities Measured At Fair Value On A Recurring Basis

The following tables present the balances of assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy.



	June 30, 2016
(dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Investments available-for-sale:
Fixed maturities:
U.S. Treasury securities and obligations of U.S. government agencies	$	—	$	700,281	$	—	$	700,281
Obligations of states, municipalities and political subdivisions	—		4,561,049		—		4,561,049
Foreign governments	—		1,583,219		—		1,583,219
Commercial mortgage-backed securities	—		1,023,604		—		1,023,604
Residential mortgage-backed securities	—		859,944		—		859,944
Asset-backed securities	—		28,342		—		28,342
Corporate bonds	—		1,643,190		—		1,643,190
Total fixed maturities	—		10,399,629		—		10,399,629
Equity securities:
Insurance, banks and other financial institutions	1,408,485		—		183,523		1,592,008
Industrial, consumer and all other	2,803,561		—		—		2,803,561
Total equity securities	4,212,046		—		183,523		4,395,569
Short-term investments	1,877,297		118,194		—		1,995,491
Total investments available-for-sale	$	6,089,343	$	10,517,823	$	183,523	$	16,790,689



	December 31, 2015
(dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Investments available-for-sale:
Fixed maturities:
U.S. Treasury securities and obligations of U.S. government agencies	$	—	$	700,707	$	—	$	700,707
Obligations of states, municipalities and political subdivisions	—		4,013,213		—		4,013,213
Foreign governments	—		1,416,457		—		1,416,457
Commercial mortgage-backed securities	—		659,538		—		659,538
Residential mortgage-backed securities	—		854,247		—		854,247
Asset-backed securities	—		36,071		—		36,071
Corporate bonds	—		1,714,235		—		1,714,235
Total fixed maturities	—		9,394,468		—		9,394,468
Equity securities:
Insurance, banks and other financial institutions	1,334,722		—		—		1,334,722
Industrial, consumer and all other	2,739,753		—		—		2,739,753
Total equity securities	4,074,475		—		—		4,074,475
Short-term investments	1,529,924		112,337		—		1,642,261
Total investments available-for-sale	$	5,604,399	$	9,506,805	$	—	$	15,111,204

Summary Of Changes In Level 3 Investments Measured At Fair Value On A Recurring Basis

The following table summarizes changes in Level 3 investments measured at fair value on a recurring basis.



	Quarter Ended June 30,					Six Months Ended June 30,
(dollars in thousands)	2016			2015		2016			2015
Equity securities, beginning of period	$	176,942		$	—	$	—		$	—
Purchases	25,000			—		195,250			—
Sales	(25,000		)	—		(25,000		)	—
Total gains included in:
Net income	6,581			—		13,273			—
Other comprehensive income (loss)	—			—		—			—
Transfers into Level 3	—			—		—			—
Transfers out of Level 3	—			—		—			—
Equity securities, end of period	$	183,523		$	—	$	183,523		$	—
Net unrealized gains included in net income relating to assets held at June 30, 2016 and 2015⁽¹⁾	$	6,581		$	—	$	13,273		$	—

⁽¹⁾ Included in net realized investment gains in the consolidated statements of income and comprehensive income (loss).