INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2018


NET INVESTMENT INCOME
(in thousands)	2018		2017		2016
Interest on fixed income securities	$	54,491	$	48,343	$	46,834
Dividends on equity securities		9,814		10,506		10,929
Interest on cash, short-term investments and other invested assets		2,309		945		120
Gross investment income	$	66,614	$	59,794	$	57,883
Less investment expenses		(4,529)		(4,918)		(4,808)
Net investment income	$	62,085	$	54,876	$	53,075

Schedule of pretax net realized investment gains (losses) and net changes in unrealized gains (losses) on investments


REALIZED/UNREALIZED GAINS
(in thousands)	2018		2017		2016
Net realized gains (losses):
Fixed income:
Available-for-sale	$	(2,018)	$	859	$	4,314
Available-for-sale OTTI		(217)		(2,559)		(95)
Equity securities		69,868		10,282		38,709
Other		(4,226)		(4,171)		(8,283)
Total	$	63,407	$	4,411	$	34,645

Net changes in unrealized gains (losses) on investments:
Fixed income:
Available-for-sale	$	(41,778)	$	16,846	$	(10,972)
Equity securities		(98,380)		36,844		8,659
Other invested assets		(355)		29		—
Investment in unconsolidated investees		(1,257)		604		522
Total	$	(141,770)	$	54,323	$	(1,791)
Net realized gains (losses) and changes in unrealized gains (losses) on investments	$	(78,363)	$	58,734	$	32,854

Schedule of disposition of fixed maturities and equities


							Net
SALES	Proceeds		Gross Realized				Realized
(in thousands)	From Sales		Gains		Losses		Gain (Loss)
2018
Available-for-sale	$	394,318	$	3,131	$	(5,349)	$	(2,218)
Equities		147,838		71,065		(1,197)		69,868
2017
Available-for-sale	$	169,002	$	2,406	$	(1,670)	$	736
Equities		36,573		13,178		(2,896)		10,282
2016
Available-for-sale	$	329,091	$	7,158	$	(3,287)	$	3,871
Equities		89,909		39,668		(959)		38,709


							Net
CALLS/MATURITIES			Gross Realized				Realized
(in thousands)	Proceeds		Gains		Losses		Gain (Loss)
2018
Available-for-sale	$	187,380	$	311	$	(111)	$	200
2017
Available-for-sale	$	195,617	$	262	$	(139)	$	123
2016
Available-for-sale	$	141,255	$	445	$	(2)	$	443

Schedule of assets measured at fair value on recurring basis

Assets measured at fair value on a recurring basis as of December 31, 2018, are summarized below:


			Significant
	Quoted in Active		Other		Significant
	Markets for		Observable		Unobservable
	Identical Assets		Inputs		Inputs
(in thousands)	(Level 1)		(Level 2)		(Level 3)		Total
Fixed income securities - available-for-sale
U.S. government	$	—	$	200,229	$	—	$	200,229
U.S. agency		—		31,904		—		31,904
Non-U.S. govt. & agency		—		7,639		—		7,639
Agency MBS		—		395,253		—		395,253
ABS/CMBS*		—		136,723		—		136,723
Corporate		—		668,679		—		668,679
Municipal		—		320,088		—		320,088
Total fixed income securities - available-for-sale	$	—	$	1,760,515	$	—	$	1,760,515
Equity securities		339,985		498		—		340,483
Total	$	339,985	$	1,761,013	$	—	$	2,100,998

*Non-agency asset-backed & commercial mortgage-backed

Assets measured at fair value on a recurring basis as of December 31, 2017, are summarized below:


			Significant
	Quoted in Active		Other		Significant
	Markets for		Observable		Unobservable
	Identical Assets		Inputs		Inputs
(in thousands)	(Level 1)		(Level 2)		(Level 3)		Total
Fixed income securities - available-for-sale
U.S. government	$	—	$	91,689	$	—	$	91,689
U.S. agency		—		18,778		—		18,778
Non-U.S. govt. & agency		—		7,588		—		7,588
Agency MBS		—		328,471		—		328,471
ABS/CMBS*		—		70,526		—		70,526
Corporate		—		519,022		—		519,022
Municipal		—		636,165		—		636,165
Total fixed income securities - available-for-sale	$	—	$	1,672,239	$	—	$	1,672,239
Equity securities		400,492		—		—		400,492
Total	$	400,492	$	1,672,239	$	—	$	2,072,731

*Non-agency asset-backed & commercial mortgage-backed

Schedule of contractual maturity of securities

The amortized cost and estimated fair value of fixed income securities at December 31, 2018, by contractual maturity, are shown as follows:


(in thousands)	Amortized Cost		Fair Value
Available-for-sale
Due in one year or less	$	41,319	$	41,333
Due after one year through five years		411,153		410,680
Due after five years through 10 years		615,061		608,115
Due after 10 years		168,716		168,412
Mtge/ABS/CMBS*		540,216		531,975
Total available-for-sale	$	1,776,465	$	1,760,515

*Mortgage-backed, asset-backed & commercial mortgage-backed

Schedule of amortized cost and fair value of available-for-sale securities

In addition, the following table is a schedule of amortized costs and estimated fair values of investments in fixed income securities as of December 31, 2018 and 2017:


2018	Amortized				Gross Unrealized
(in thousands)	Cost		Fair Value		Gains		Losses
Available-for-sale
U.S. government	$	199,982	$	200,229	$	1,232	$	(985)
U.S. agency		31,716		31,904		403		(215)
Non-U.S. govt. & agency		8,170		7,639		—		(531)
Agency MBS		402,992		395,253		1,709		(9,448)
ABS/CMBS*		137,224		136,723		375		(876)
Corporate		681,909		668,679		2,894		(16,124)
Municipal		314,472		320,088		6,926		(1,310)
Total fixed income	$	1,776,465	$	1,760,515	$	13,539	$	(29,489)


2017	Amortized				Gross Unrealized
(in thousands)	Cost		Fair Value		Gains		Losses
Available-for-sale
U.S. government	$	92,561	$	91,689	$	23	$	(895)
U.S. agency		18,541		18,778		347		(110)
Non-U.S. govt. & agency		7,501		7,588		143		(56)
Agency MBS		329,129		328,471		3,420		(4,078)
ABS/CMBS*		70,405		70,526		436		(315)
Corporate		508,128		519,022		12,575		(1,681)
Municipal		620,146		636,165		17,272		(1,253)
Total fixed income	$	1,646,411	$	1,672,239	$	34,216	$	(8,388)

*Non-agency asset-backed & commercial mortgage-backed

Schedule of securities in an unrealized loss position segregated by type and length of time in an unrealized loss position


	December 31, 2018						December 31, 2017
			12 Mos.						12 Mos.
(in thousands)	< 12 Mos.		& Greater		Total		< 12 Mos.		& Greater		Total
U.S. Government
Fair value	$	7,249	$	76,073	$	83,322	$	58,009	$	30,888	$	88,897
Amortized cost		7,270		77,037		84,307		58,443		31,349		89,792
Unrealized Loss	$	(21)	$	(964)	$	(985)	$	(434)	$	(461)	$	(895)

U.S. Agency
Fair value	$	—	$	8,843	$	8,843	$	10,917	$	—	$	10,917
Amortized cost		—		9,058		9,058		11,027		—		11,027
Unrealized Loss	$	—	$	(215)	$	(215)	$	(110)	$	—	$	(110)

Non-U.S. Government
Fair value	$	5,432	$	2,207	$	7,639	$	—	$	1,840	$	1,840
Amortized cost		5,571		2,599		8,170		—		1,896		1,896
Unrealized Loss	$	(139)	$	(392)	$	(531)	$	—	$	(56)	$	(56)

Agency MBS
Fair value	$	25,345	$	261,325	$	286,670	$	122,130	$	111,306	$	233,436
Amortized cost		25,486		270,632		296,118		123,559		113,955		237,514
Unrealized Loss	$	(141)	$	(9,307)	$	(9,448)	$	(1,429)	$	(2,649)	$	(4,078)

ABS/CMBS*
Fair value	$	46,918	$	32,137	$	79,055	$	23,406	$	21,587	$	44,993
Amortized cost		47,146		32,785		79,931		23,491		21,817		45,308
Unrealized Loss	$	(228)	$	(648)	$	(876)	$	(85)	$	(230)	$	(315)

Corporate
Fair value	$	306,177	$	147,751	$	453,928	$	86,946	$	28,600	$	115,546
Amortized cost		315,428		154,624		470,052		87,736		29,491		117,227
Unrealized Loss	$	(9,251)	$	(6,873)	$	(16,124)	$	(790)	$	(891)	$	(1,681)

Municipal
Fair value	$	6,036	$	55,681	$	61,717	$	71,059	$	60,049	$	131,108
Amortized cost		6,052		56,975		63,027		71,534		60,827		132,361
Unrealized Loss	$	(16)	$	(1,294)	$	(1,310)	$	(475)	$	(778)	$	(1,253)

Total fixed income
Fair value	$	397,157	$	584,017	$	981,174	$	372,467	$	254,270	$	626,737
Amortized cost		406,953		603,710		1,010,663		375,790		259,335		635,125
Unrealized Loss	$	(9,796)	$	(19,693)	$	(29,489)	$	(3,323)	$	(5,065)	$	(8,388)

*Non-agency asset-backed & commercial mortgage-backed