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Investments
 6 Months Ended
Jun. 30, 2017
Investments, Debt and Equity Securities [Abstract]  
Investments
Investments

a)The following tables summarize the Company's available-for-sale investments. Commercial and residential mortgage-backed securities include securities issued by U.S. government-sponsored enterprises and U.S. government agencies.

 
June 30, 2017
(dollars in thousands)
Amortized
Cost
 
Gross
Unrealized
Holding
Gains
 
Gross
Unrealized
Holding
Losses
 
Unrealized
Other-Than-
Temporary
Impairment
Losses
 
Estimated
Fair
Value
Fixed maturities:
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
$
138,404

 
$
81

 
$
(844
)
 
$
—

 
$
137,641

U.S. government-sponsored enterprises
372,560

 
10,745

 
(1,426
)
 
—

 
381,879

Obligations of states, municipalities and political subdivisions
4,477,463

 
196,535

 
(20,632
)
 
—

 
4,653,366

Foreign governments
1,310,376

 
143,572

 
(2,231
)
 
—

 
1,451,717

Commercial mortgage-backed securities
1,188,439

 
8,014

 
(13,054
)
 
—

 
1,183,399

Residential mortgage-backed securities
830,679

 
21,786

 
(3,690
)
 
—

 
848,775

Asset-backed securities
37,856

 
25

 
(84
)
 
—

 
37,797

Corporate bonds
1,313,879

 
48,340

 
(3,301
)
 
—

 
1,358,918

Total fixed maturities
9,669,656

 
429,098

 
(45,262
)
 
—

 
10,053,492

Equity securities:
 
 
 
 
 
 
 
 
 
Insurance, banks and other financial institutions
888,805

 
976,110

 
(586
)
 
—

 
1,864,329

Industrial, consumer and all other
1,764,205

 
1,721,110

 
(8,817
)
 
—

 
3,476,498

Total equity securities
2,653,010

 
2,697,220

 
(9,403
)
 
—

 
5,340,827

Short-term investments
1,704,359

 
67

 
(10
)
 
—

 
1,704,416

Investments, available-for-sale
$
14,027,025

 
$
3,126,385

 
$
(54,675
)
 
$
—

 
$
17,098,735

 
December 31, 2016
(dollars in thousands)
Amortized
Cost
 
Gross
Unrealized
Holding
Gains
 
Gross
Unrealized
Holding
Losses
 
Unrealized
Other-Than-
Temporary
Impairment
Losses
 
Estimated
Fair
Value
Fixed maturities:
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
$
259,379

 
$
99

 
$
(894
)
 
$
—

 
$
258,584

U.S. government-sponsored enterprises
418,457

 
9,083

 
(4,328
)
 
—

 
423,212

Obligations of states, municipalities and political subdivisions
4,324,332

 
145,678

 
(41,805
)
 
—

 
4,428,205

Foreign governments
1,306,324

 
159,291

 
(2,153
)
 
—

 
1,463,462

Commercial mortgage-backed securities
1,055,947

 
3,953

 
(19,544
)
 
—

 
1,040,356

Residential mortgage-backed securities
779,503

 
18,749

 
(5,048
)
 
(2,258
)
 
790,946

Asset-backed securities
27,494

 
2

 
(158
)
 
—

 
27,338

Corporate bonds
1,420,298

 
49,146

 
(9,364
)
 
(673
)
 
1,459,407

Total fixed maturities
9,591,734

 
386,001

 
(83,294
)
 
(2,931
)
 
9,891,510

Equity securities:
 
 
 
 
 
 
 
 
 
Insurance, banks and other financial institutions
846,343

 
857,063

 
(5,596
)
 
—

 
1,697,810

Industrial, consumer and all other
1,635,105

 
1,421,080

 
(8,154
)
 
—

 
3,048,031

Total equity securities
2,481,448

 
2,278,143

 
(13,750
)
 
—

 
4,745,841

Short-term investments
2,336,100

 
57

 
(6
)
 
—

 
2,336,151

Investments, available-for-sale
$
14,409,282

 
$
2,664,201

 
$
(97,050
)
 
$
(2,931
)
 
$
16,973,502


b)The following tables summarize gross unrealized investment losses by the length of time that securities have continuously been in an unrealized loss position.

 
June 30, 2017
 
Less than 12 months
 
12 months or longer
 
Total
(dollars in thousands)
Estimated
Fair
Value
 
Gross
Unrealized
Holding and
Other-Than-
Temporary
Impairment
Losses
 
Estimated
Fair
Value
 
Gross
Unrealized
Holding and
Other-Than-
Temporary
Impairment
Losses
 
Estimated
Fair
Value
 
Gross
Unrealized
Holding and
Other-Than-
Temporary
Impairment
Losses
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
$
95,984

 
$
(741
)
 
$
7,427

 
$
(103
)
 
$
103,411

 
$
(844
)
U.S. government-sponsored enterprises
137,702

 
(1,426
)
 
—

 
—

 
137,702

 
(1,426
)
Obligations of states, municipalities and political subdivisions
706,155

 
(17,574
)
 
31,626

 
(3,058
)
 
737,781

 
(20,632
)
Foreign governments
122,855

 
(2,231
)
 
—

 
—

 
122,855

 
(2,231
)
Commercial mortgage-backed securities
536,397

 
(12,801
)
 
14,693

 
(253
)
 
551,090

 
(13,054
)
Residential mortgage-backed securities
123,791

 
(1,806
)
 
74,672

 
(1,884
)
 
198,463

 
(3,690
)
Asset-backed securities
22,992

 
(51
)
 
5,106

 
(33
)
 
28,098

 
(84
)
Corporate bonds
378,552

 
(2,351
)
 
74,071

 
(950
)
 
452,623

 
(3,301
)
Total fixed maturities
2,124,428

 
(38,981
)
 
207,595

 
(6,281
)
 
2,332,023

 
(45,262
)
Equity securities:
 
 
 
 
 
 
 
 
 
 
 
Insurance, banks and other financial institutions
955

 
(60
)
 
1,375

 
(526
)
 
2,330

 
(586
)
Industrial, consumer and all other
88,643

 
(5,877
)
 
9,288

 
(2,940
)
 
97,931

 
(8,817
)
Total equity securities
89,598

 
(5,937
)
 
10,663

 
(3,466
)
 
100,261

 
(9,403
)
Short-term investments
56,385

 
(10
)
 
—

 
—

 
56,385

 
(10
)
Total
$
2,270,411

 
$
(44,928
)
 
$
218,258

 
$
(9,747
)
 
$
2,488,669

 
$
(54,675
)


At June 30, 2017, the Company held 572 securities with a total estimated fair value of $2.5 billion and gross unrealized losses of $54.7 million. Of these 572 securities, 89 securities had been in a continuous unrealized loss position for one year or longer and had a total estimated fair value of $218.3 million and gross unrealized losses of $9.7 million. Of these securities, 73 securities were fixed maturities and 16 were equity securities. The Company does not intend to sell or believe it will be required to sell these fixed maturities before recovery of their amortized cost. The Company has the ability and intent to hold these equity securities for a period of time sufficient to allow for the anticipated recovery of their fair value.

 
December 31, 2016
 
Less than 12 months
 
12 months or longer
 
Total
(dollars in thousands)
Estimated
Fair
Value
 
Gross
Unrealized
Holding and
Other-Than-
Temporary
Impairment
Losses
 
Estimated
Fair
Value
 
Gross
Unrealized
Holding and
Other-Than-
Temporary
Impairment
Losses
 
Estimated
Fair
Value
 
Gross
Unrealized
Holding and
Other-Than-
Temporary
Impairment
Losses
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
$
122,950

 
$
(894
)
 
$
—

 
$
—

 
$
122,950

 
$
(894
)
U.S. government-sponsored enterprises
220,333

 
(4,324
)
 
7,618

 
(4
)
 
227,951

 
(4,328
)
Obligations of states, municipalities and political subdivisions
1,004,947

 
(37,685
)
 
31,723

 
(4,120
)
 
1,036,670

 
(41,805
)
Foreign governments
68,887

 
(2,145
)
 
5,005

 
(8
)
 
73,892

 
(2,153
)
Commercial mortgage-backed securities
749,889

 
(19,091
)
 
29,988

 
(453
)
 
779,877

 
(19,544
)
Residential mortgage-backed securities
181,557

 
(4,987
)
 
79,936

 
(2,319
)
 
261,493

 
(7,306
)
Asset-backed securities
14,501

 
(106
)
 
5,869

 
(52
)
 
20,370

 
(158
)
Corporate bonds
494,573

 
(8,357
)
 
93,790

 
(1,680
)
 
588,363

 
(10,037
)
Total fixed maturities
2,857,637

 
(77,589
)
 
253,929

 
(8,636
)
 
3,111,566

 
(86,225
)
Equity securities:
 
 
 
 
 
 
 
 
 
 
 
Insurance, banks and other financial institutions
8,808

 
(410
)
 
37,973

 
(5,186
)
 
46,781

 
(5,596
)
Industrial, consumer and all other
98,406

 
(4,772
)
 
29,650

 
(3,382
)
 
128,056

 
(8,154
)
Total equity securities
107,214

 
(5,182
)
 
67,623

 
(8,568
)
 
174,837

 
(13,750
)
Short-term investments
504,211

 
(6
)
 
—

 
—

 
504,211

 
(6
)
Total
$
3,469,062

 
$
(82,777
)
 
$
321,552

 
$
(17,204
)
 
$
3,790,614

 
$
(99,981
)


At December 31, 2016, the Company held 654 securities with a total estimated fair value of $3.8 billion and gross unrealized losses of $100.0 million. Of these 654 securities, 109 securities had been in a continuous unrealized loss position for one year or longer and had a total estimated fair value of $321.6 million and gross unrealized losses of $17.2 million. Of these securities, 93 securities were fixed maturities and 16 were equity securities.

The Company completes a detailed analysis each quarter to assess whether the decline in the fair value of any investment below its cost basis is deemed other-than-temporary. All securities with unrealized losses are reviewed. The Company considers many factors in completing its quarterly review of securities with unrealized losses for other-than-temporary impairment, including the length of time and the extent to which fair value has been below cost and the financial condition and near-term prospects of the issuer. For equity securities, the ability and intent to hold the security for a period of time sufficient to allow for anticipated recovery is considered. For fixed maturities, the Company considers whether it intends to sell the security or if it is more likely than not that it will be required to sell the security before recovery, the implied yield-to-maturity, the credit quality of the issuer and the ability to recover all amounts outstanding when contractually due.

For equity securities, a decline in fair value that is considered to be other-than-temporary is recognized in net income based on the fair value of the security at the time of assessment, resulting in a new cost basis for the security. For fixed maturities where the Company intends to sell the security or it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost, a decline in fair value is considered to be other-than-temporary and is recognized in net income based on the fair value of the security at the time of assessment, resulting in a new cost basis for the security. If the decline in fair value of a fixed maturity below its amortized cost is considered to be other-than-temporary based upon other considerations, the Company compares the estimated present value of the cash flows expected to be collected to the amortized cost of the security. The extent to which the estimated present value of the cash flows expected to be collected is less than the amortized cost of the security represents the credit-related portion of the other-than-temporary impairment, which is recognized in net income, resulting in a new cost basis for the security. Any remaining decline in fair value represents the non-credit portion of the other-than-temporary impairment, which is recognized in other comprehensive income. The discount rate used to calculate the estimated present value of the cash flows expected to be collected is the effective interest rate implicit for the security at the date of purchase.

When assessing whether it intends to sell a fixed maturity or if it is likely to be required to sell a fixed maturity before recovery of its amortized cost, the Company evaluates facts and circumstances including decisions to reposition the investment portfolio, potential sales of investments to meet cash flow needs and, ultimately, current market prices.

c)The amortized cost and estimated fair value of fixed maturities at June 30, 2017 are shown below by contractual maturity.

(dollars in thousands)
Amortized
Cost
 
Estimated
Fair Value
Due in one year or less
$
455,586

 
$
457,635

Due after one year through five years
1,224,123

 
1,267,114

Due after five years through ten years
1,568,950

 
1,645,516

Due after ten years
4,364,023

 
4,613,256

 
7,612,682

 
7,983,521

Commercial mortgage-backed securities
1,188,439

 
1,183,399

Residential mortgage-backed securities
830,679

 
848,775

Asset-backed securities
37,856

 
37,797

Total fixed maturities
$
9,669,656

 
$
10,053,492



d)The following table presents the components of net investment income.

 
Quarter Ended June 30,
 
Six Months Ended June 30,
(dollars in thousands)
2017
 
2016
 
2017
 
2016
Interest:
 
 
 
 
 
 
 
Municipal bonds (tax-exempt)
$
22,758

 
$
22,563

 
$
45,130

 
$
44,485

Municipal bonds (taxable)
17,793

 
16,222

 
35,298

 
32,110

Other taxable bonds
36,296

 
36,959

 
71,184

 
72,278

Short-term investments, including overnight deposits
5,834

 
2,654

 
10,783

 
4,945

Dividends on equity securities
19,017

 
16,758

 
39,623

 
34,410

Income from equity method investments
1,802

 
3,921

 
6,395

 
3,668

Other
24

 
190

 
(205
)
 
2,674

 
103,524

 
99,267

 
208,208

 
194,570

Investment expenses
(4,225
)
 
(4,271
)
 
(8,541
)
 
(8,280
)
Net investment income
$
99,299

 
$
94,996

 
$
199,667

 
$
186,290



e)The following table presents net realized investment gains and the change in net unrealized gains on investments. 

 
Quarter Ended June 30,
 
Six Months Ended June 30,
(dollars in thousands)
2017
 
2016
 
2017
 
2016
Realized gains:
 
 
 
 
 
 
 
Sales of fixed maturities
$
554

 
$
699

 
$
757

 
$
967

Sales of equity securities
1,295

 
17,798

 
16,533

 
45,526

Other
4,259

 
353

 
4,826

 
773

Total realized gains
6,108

 
18,850

 
22,116

 
47,266

Realized losses:
 
 
 
 
 
 
 
Sales of fixed maturities
(412
)
 
(142
)
 
(602
)
 
(555
)
Sales of equity securities
(786
)
 
(1,780
)
 
(1,216
)
 
(2,498
)
Other-than-temporary impairments
(604
)
 
(3,675
)
 
(3,817
)
 
(12,080
)
Other
(81
)
 
(718
)
 
(286
)
 
(2,996
)
Total realized losses
(1,883
)
 
(6,315
)
 
(5,921
)
 
(18,129
)
Gains on securities measured at fair value through net income
13,402

 
4,706

 
22,297

 
9,283

Net realized investment gains
$
17,627

 
$
17,241

 
$
38,492

 
$
38,420

Change in net unrealized gains on investments included in other comprehensive income:
 
 
 
 
 
 
 
Fixed maturities
$
79,413

 
$
213,026

 
$
84,060

 
$
452,982

Equity securities
204,372

 
42,786

 
423,424

 
139,744

Short-term investments
133

 
32

 
6

 
(35
)
Net increase
$
283,918

 
$
255,844

 
$
507,490

 
$
592,691