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INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2019


NET INVESTMENT INCOME
(in thousands)	2019		2018		2017
Interest on fixed income securities	$	60,364	$	54,491	$	48,343
Dividends on equity securities		9,950		9,814		10,506
Interest on cash, short-term investments and other invested assets		3,674		2,309		945
Gross investment income	$	73,988	$	66,614	$	59,794
Less investment expenses		(5,118)		(4,529)		(4,918)
Net investment income	$	68,870	$	62,085	$	54,876

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


REALIZED/UNREALIZED GAINS (LOSSES)
(in thousands)	2019		2018		2017
Net realized gains (losses):
Fixed income:
Available-for-sale	$	3,184	$	(2,018)	$	859
Equity securities		14,445		69,868		10,282
Other		(109)		(4,226)		(4,171)
Total net realized gains (losses)	$	17,520	$	63,624	$	6,970

Other-than-temporary-impairment losses on investments	$	—	$	(217)	$	(2,559)

Net changes in unrealized gains (losses) on investments:
Equity securities	$	78,389	$	(98,380)	$	—
Other invested assets		(299)		(355)		—
Total unrealized gains (losses) on equity securities recognized in net earnings	$	78,090	$	(98,735)	$	—

Fixed income:
Available-for-sale	$	83,758	$	(41,778)	$	16,846
Equity securities		—		—		36,844
Other invested assets		—		—		29
Investment in unconsolidated investees		1,109		(1,257)		604
Total unrealized gains (losses) recognized in other comprehensive earnings	$	84,867	$	(43,035)	$	54,323
Net realized gains (losses) and changes in unrealized gains (losses) on investments	$	180,477	$	(78,363)	$	58,734

Schedule of disposition of fixed maturities and equities


							Net
SALES			Gross Realized				Realized
(in thousands)	Proceeds		Gains		Losses		Gain (Loss)
2019
Available-for-sale	$	196,799	$	4,368	$	(2,167)	$	2,201
Equities		62,172		16,938		(2,493)		14,445
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


							Net
CALLS/MATURITIES			Gross Realized				Realized
(in thousands)	Proceeds		Gains		Losses		Gain (Loss)
2019
Available-for-sale	$	201,698	$	1,004	$	(21)	$	983
2018
Available-for-sale	$	187,380	$	311	$	(111)	$	200
2017
Available-for-sale	$	195,617	$	262	$	(139)	$	123

Fair Value, Assets Measured on Recurring Basis

Assets measured at fair value on a recurring basis as of December 31, 2019, are summarized below:


	Quoted in Active		Significant 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	$	—	$	193,661	$	—	$	193,661
U.S. agency		—		38,855		—		38,855
Non-U.S. government & agency		—		7,628		—		7,628
Agency MBS		—		420,165		—		420,165
ABS/CMBS/MBS*		—		224,870		—		224,870
Corporate		—		690,297		1,770		692,067
Municipal		—		405,840		—		405,840
Total fixed income securities - available-for-sale	$	—	$	1,981,316	$	1,770	$	1,983,086
Equity securities		460,630		—		—		460,630
Total	$	460,630	$	1,981,316	$	1,770	$	2,443,716

*Non-agency asset-backed, commercial mortgage-backed and mortgage-backed

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


	Quoted in Active		Significant 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. government & agency		—		7,639		—		7,639
Agency MBS		—		395,253		—		395,253
ABS/CMBS/MBS*		—		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 and mortgage-backed

Schedule of contractual maturity of securities

The amortized cost and estimated fair value of fixed income securities at December 31, 2019, by contractual maturity, are shown as follows:


(in thousands)	Amortized Cost		Fair Value
Available-for-sale
Due in one year or less	$	49,951	$	50,170
Due after one year through five years		395,056		407,007
Due after five years through 10 years		580,310		613,099
Due after 10 years		255,321		267,775
Mtge/ABS/CMBS*		634,640		645,035
Total available-for-sale	$	1,915,278	$	1,983,086

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

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

The following table is a schedule of amortized costs and estimated fair values of investments in fixed income securities as of December 31, 2019 and 2018:


2019	Amortized				Gross Unrealized
(in thousands)	Cost		Fair Value		Gains		Losses
Available-for-sale
U.S. government	$	186,699	$	193,661	$	6,994	$	(32)
U.S. agency		36,535		38,855		2,362		(42)
Non-U.S. government & agency		7,333		7,628		295		—
Agency MBS		411,808		420,165		8,920		(563)
ABS/CMBS/MBS*		222,832		224,870		2,514		(476)
Corporate		659,640		692,067		33,245		(818)
Municipal		390,431		405,840		16,131		(722)
Total fixed income	$	1,915,278	$	1,983,086	$	70,461	$	(2,653)

*Non-agency asset-backed, commercial mortgage-backed and mortgage-backed


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. government & agency		8,170		7,639		—		(531)
Agency MBS		402,992		395,253		1,709		(9,448)
ABS/CMBS/MBS*		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)

*Non-agency asset-backed, commercial mortgage-backed and mortgage-backed

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


	December 31, 2019						December 31, 2018
			12 Mos.						12 Mos.
(in thousands)	< 12 Mos.		& Greater		Total		< 12 Mos.		& Greater		Total
U.S. government
Fair value	$	2,505	$	8,463	$	10,968	$	7,249	$	76,073	$	83,322
Amortized cost		2,506		8,494		11,000		7,270		77,037		84,307
Unrealized loss	$	(1)	$	(31)	$	(32)	$	(21)	$	(964)	$	(985)

U.S. agency
Fair value	$	6,794	$	—	$	6,794	$	—	$	8,843	$	8,843
Amortized cost		6,836		—		6,836		—		9,058		9,058
Unrealized loss	$	(42)	$	—	$	(42)	$	—	$	(215)	$	(215)

Non-U.S. government & agency
Fair value	$	—	$	—	$	—	$	5,432	$	2,207	$	7,639
Amortized cost		—		—		—		5,571		2,599		8,170
Unrealized loss	$	—	$	—	$	—	$	(139)	$	(392)	$	(531)

Agency MBS
Fair value	$	21,548	$	41,718	$	63,266	$	25,345	$	261,325	$	286,670
Amortized cost		21,664		42,165		63,829		25,486		270,632		296,118
Unrealized loss	$	(116)	$	(447)	$	(563)	$	(141)	$	(9,307)	$	(9,448)

ABS/CMBS/MBS*
Fair value	$	74,968	$	18,036	$	93,004	$	46,918	$	32,137	$	79,055
Amortized cost		75,332		18,148		93,480		47,146		32,785		79,931
Unrealized loss	$	(364)	$	(112)	$	(476)	$	(228)	$	(648)	$	(876)

Corporate
Fair value	$	16,478	$	9,348	$	25,826	$	306,177	$	147,751	$	453,928
Amortized cost		16,950		9,694		26,644		315,428		154,624		470,052
Unrealized loss	$	(472)	$	(346)	$	(818)	$	(9,251)	$	(6,873)	$	(16,124)

Municipal
Fair value	$	47,018	$	—	$	47,018	$	6,036	$	55,681	$	61,717
Amortized cost		47,740		—		47,740		6,052		56,975		63,027
Unrealized loss	$	(722)	$	—	$	(722)	$	(16)	$	(1,294)	$	(1,310)

Total fixed income
Fair value	$	169,311	$	77,565	$	246,876	$	397,157	$	584,017	$	981,174
Amortized cost		171,028		78,501		249,529		406,953		603,710		1,010,663
Unrealized loss	$	(1,717)	$	(936)	$	(2,653)	$	(9,796)	$	(19,693)	$	(29,489)

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