(5)	Investments

The Company invests primarily in fixed maturity securities, which totaled 82.1% of total investments and cash and cash equivalents at March 31, 2012.

	March 31, 2012				December 31, 2011
	Carrying Value		% of Total Carrying Value		Carrying Value		% of Total Carrying Value
	(In thousands)				(In thousands)

Fixed maturity securities	$	737,017		82.1	$	741,753		85.0
Equity securities		46,723		5.2		46,137		5.3
Mortgage loans		1,546		0.2		1,557		0.2
Policy loans		40,170		4.5		39,090		4.5
Real estate and other long-term investments		8,686		1.0		8,644		1.0
Short-term investments		2,030		0.2		2,048		0.2
Cash and cash equivalents		61,096		6.8		33,255		3.8
Total cash, cash equivalents and investments	$	897,268		100.0	$	872,484		100.0

The following tables represent the cost, gross unrealized gains and losses and fair value for fixed maturities and equity securities as of the periods indicated.

	March 31, 2012
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
Fixed maturities:
Fixed maturities available-for-sale:
U.S. Treasury securities	$	10,213		3,226		-		13,439
U.S. Government-sponsored enterprises		94,839		2,800		28		97,611
States of the United States and political subdivisions of the states		154,747		11,932		794		165,885
Foreign governments		105		33		-		138
Corporate		199,092		14,773		1,348		212,517
Securities not due at a single maturity date		7,832		559		4		8,387
Total available-for-sale securities		466,828		33,323		2,174		497,977

Held-to-maturity securities:
U.S. Government-sponsored enterprises		154,425		542		226		154,741
States of the United States and political subdivisions of the states		58,293		2,808		29		61,072
Corporate		26,322		293		45		26,570
Total held-to-maturity securities		239,040		3,643		300		242,383
Total fixed maturities	$	705,868		36,966		2,474		740,360

Equity securities:
Stock mutual funds	$	12,686		656		97		13,245
Bond mutual funds		31,504		267		59		31,712
Common stock		17		4		-		21
Preferred stock		1,190		555		-		1,745
Total equity securities	$	45,397		1,482		156		46,723

	December 31, 2011
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
Fixed maturities:
Available-for-sale securities:
U.S. Treasury securities	$	10,228		3,730		-		13,958
U.S. Government-sponsored enterprises		143,684		3,198		65		146,817
States of the United States and political subdivisions of the states		151,058		10,275		1,391		159,942
Foreign governments		105		37		-		142
Corporate		171,462		14,576		1,493		184,545
Securities not due at a single maturity date		8,272		585		8		8,849
Total available-for-sale securities		484,809		32,401		2,957		514,253

Held-to-maturity securities:
U.S. Government-sponsored enterprises		160,411		742		12		161,141
States of the United States and political subdivisions of the states		56,260		1,941		84		58,117
Corporate		10,829		49		43		10,835
Total held-to-maturity securities		227,500		2,732		139		230,093
Total fixed maturity securities	$	712,309		35,133		3,096		744,346

Equity securities:
Stock mutual funds	$	12,686		415		376		12,725
Bond mutual funds		31,504		27		117		31,414
Common stock		17		7		-		24
Preferred stock		1,392		582		-		1,974
Total equity securities	$	45,599		1,031		493		46,137

At March 31, 2012, the Company had $7.8 million of mortgage-backed security holdings based on amortized cost, of which $7.2 million, or 91.3%, were residential U.S. Government-sponsored issues. Mortgage-backed securities are also referred to as securities not due at a single maturity date throughout this report. The majority of the Company's equity securities are diversified stock and bond mutual funds.

Valuation of Investments in Fixed Maturity and Equity Securities

Held-to-maturity securities are reported in the financial statements at amortized cost and available-for-sale securities are reported at fair value.

The Company monitors all debt and equity securities on an on-going basis relative to changes in credit ratings, market prices, earnings trends and financial performance, in addition to specific region or industry reviews. The assessment of whether impairments have occurred is based on a case-by-case evaluation of underlying reasons for the decline in fair value. The Company determines other-than-temporary impairment by reviewing relevant evidence related to the specific security issuer as well as the Company's intent to sell the security, or if it is more likely than not that the Company would be required to sell a security before recovery of its amortized cost.

When an other-than-temporary impairment has occurred, the amount of the other-than-temporary impairment recognized in earnings depends on whether the Company intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis. If the Company intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis, the other-than-temporary impairment is recognized in earnings equal to the entire difference between the investment's cost and its fair value at the balance sheet date. If the Company does not intend to sell the security and it is more likely than not that the Company will not be required to sell the security before recovery of its amortized cost basis, the other-than-temporary impairment is separated into the following: (a) the amount representing the credit loss; and (b) the amount related to all other factors. The amount of the total other-than-temporary impairment related to the credit loss is recognized in earnings. The amount of the total other-than-temporary impairment related to other factors is recognized in other comprehensive income, net of applicable taxes. The previous amortized cost basis less the other-than-temporary impairment recognized in earnings becomes the new amortized cost basis of the investment. The new amortized cost basis is not adjusted for subsequent recoveries in fair value.

The Company evaluates whether a credit impairment exists for debt securities by considering primarily the following factors: (a) changes in the financial condition of the security's underlying collateral; (b) whether the issuer is current on contractually obligated interest and principal payments; (c) changes in the financial condition, credit rating and near-term prospects of the issuer; (d) the extent to which the fair value has been less than the amortized cost of the security; and (e) the payment structure of the security. The Company's best estimate of expected future cash flows used to determine the credit loss amount is a quantitative and qualitative process. Quantitative review includes information received from third party sources such as financial statements, pricing and rating changes, liquidity and other statistical information. Qualitative factors include judgments related to business strategies, economic impacts on the issuer and overall judgment related to estimates and industry factors. The Company's best estimate of future cash flows involves assumptions including, but not limited to, various performance indicators, such as historical and projected default and recovery rates, credit ratings, and current delinquency rates. These assumptions require the use of significant management judgment and include the probability of issuer default and estimates regarding timing and amount of expected recoveries, which may include estimating the underlying collateral value. In addition, projections of expected future debt security cash flows may change based upon new information regarding the performance of the issuer.

The primary factors considered in evaluating whether an impairment exists for an equity security include, but are not limited to: (a) the length of time and the extent to which the fair value has been less than the cost of the security; (b) changes in the financial condition, credit rating and near-term prospects of the issuer; (c) whether the issuer is current on contractually obligated payments; and (d) the intent and ability of the Company to retain the investment for a period of time sufficient to allow for recovery.

The Company did not recognize any other-than-temporary impairments ("OTTI") during the three months ended March 31, 2012 and 2011.

The following tables present the fair values and gross unrealized losses of fixed maturities and equity securities that have remained in a continuous unrealized loss position for the periods indicated.

	March 31, 2012
	Less than 12 months						Greater than 12 months						Total
	Fair Value		Unrealized Losses		# of Securities		Fair Value		Unrealized Losses		# of Securities		Fair Value		Unrealized Losses		# of Securities
	(In thousands, except for # of securities)

Fixed maturities:
Available-for-sale securities:
U.S. Government-sponsored enterprises	$	6,233		26		5		1,001		2		1		7,234		28		6
States of the United States and political subdivisions of the states		8,192		91		9		6,417		703		3		14,609		794		12
Corporate		46,239		503		34		8,544		845		6		54,783		1,348		40
Securities not due at a single maturity date		237		1		1		66		3		2		303		4		3
Total available-for-sale securities		60,901		621		49		16,028		1,553		12		76,929		2,174		61
Held-to-maturity securities:
U.S. Government-sponsored enterprises		53,043		215		27		1,112		11		1		54,155		226		28
States of the United States and political subdivisions of the states		7,462		29		5		-		-		-		7,462		29		5
Corporate		12,458		45		9		-		-		-		12,458		45		9
Total held-to-maturity securities		72,963		289		41		1,112		11		1		74,075		300		42
Total fixed maturities	$	133,864		910		90		17,140		1,564		13		151,004		2,474		103

Equity securities:
Stock mutual funds	$	7,437		97		2		-		-		-		7,437		97		2
Bond mutual funds		6,364		59		3		-		-		-		6,364		59		3
Total equities	$	13,801		156		5		-		-		-		13,801		156		5

As of March 31, 2012, the Company had 12 available-for-sale securities and 1 held-to-maturity security that were in an unrealized loss position for greater than 12 months. These securities consisted of U.S. Government-sponsored enterprises, municipals, corporate and mortgage-backed securities.

	December 31, 2011
	Less than 12 months						Greater than 12 months						Total
	Fair Value		Unrealized Losses		# of Securities		Fair Value		Unrealized Losses		# of Securities		Fair Value		Unrealized Losses		# of Securities
	(In thousands, except for # of securities)

Fixed maturities:
Available-for-sale securities:
U.S. Government-sponsored enterprises	$	-		-		-		3,718		65		2		3,718		65		2
States of the United States and political subdivisions of the states		1,965		29		4		11,777		1,362		9		13,742		1,391		13
Corporate		27,239		976		30		8,886		517		6		36,125		1,493		36
Securities not due at a single maturity date		536		4		1		67		4		2		603		8		3
Total available-for-sale securities		29,740		1,009		35		24,448		1,948		19		54,188		2,957		54
Held-to-maturity securities:
U.S. Government-sponsored enterprises		6,997		2		4		1,121		10		1		8,118		12		5
States of the United States and political subdivisions of the states		8,345		84		7		-		-		-		8,345		84		7
Corporate		6,706		43		4		-		-		-		6,706		43		4
Total held-to-maturity securities		22,048		129		15		1,121		10		1		23,169		139		16
Total fixed maturities	$	51,788		1,138		50		25,569		1,958		20		77,357		3,096		70

Equity securities:
Stock mutual funds	$	7,158		376		2		-		-		-		7,158		376		2
Bond mutual funds		25,387		117		10		-		-		-		25,387		117		10
Total equities	$	32,545		493		12		-		-		-		32,545		493		12

We have reviewed these securities for the periods ended March 31, 2012 and December 31, 2011 and determined that no other-than-temporary impairment exists based on our evaluation of the credit worthiness of the issuers and the fact that we do not intend to sell the investments nor is it likely that we will be required to sell the securities before recovery of their amortized cost bases which may be maturity. We continue to monitor all securities on an on-going basis, and future information may become available which could result in impairments being recorded.

The amortized cost and fair value of fixed maturity securities at March 31, 2012 by contractual maturity are shown in the table below. 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.

	March 31, 2012
	Amortized Cost		Fair Value
	(In thousands)
Available-for-sale securities:
Due in one year or less	$	7,339		7,450
Due after one year through five years		52,579		54,785
Due after five years through ten years		108,692		115,135
Due after ten years		290,386		312,220
Total available-for-sale securities		458,996		489,590
Held-to-maturity securities:
Due in one year or less		4,975		4,969
Due after one year through five years		15,091		15,129
Due after five years through ten years		35,939		37,418
Due after ten years		183,035		184,867
Total held-to-maturity securities		239,040		242,383
Securities not due at a single maturity date		7,832		8,387
Total fixed maturities	$	705,868		740,360

The securities not due at a single maturity date are primarily mortgage-backed obligations of U.S. Government-sponsored enterprises and corporate securities.

The Company uses the specific identification method of the individual security to determine the cost basis used in the calculation of realized gains and losses related to security sales. Proceeds and gross realized gains from sales of securities for the three months ended March 31, 2012 and 2011 are summarized as follows.

	Three Months Ended March 31,
	Fixed Maturities Available-for-Sale				Equity Securities
	2012		2011		2012		2011
	(In thousands)

Proceeds	$	503		-		-		-
Gross realized gains	$	1		-		-		-

During the three months ended March 31, 2012 and 2011, no securities were sold for realized losses nor were there any securities sold from the held-to-maturity portfolio.