INVESTMENTS (Tables)

9 Months Ended

Sep. 30, 2011

INVESTMENTS

Schedule of investment positions with unrealized losses segmented by type and period of continuous unrealized loss

Investment Positions with Unrealized Losses

Segmented by Type and Period of Continuous

Unrealized Loss at September 30, 2011

(dollars in thousands)	< 12 Mos.			12 Mos. & Greater			Total
Treasuries
Fair value	$	6,317		$	—		$	6,317
Cost or Amortized Cost	6,339			—			6,339
Unrealized Loss	(22		)	—			(22		)
Agencies
Fair value	$	35,364		$	17,997		$	53,361
Cost or Amortized Cost	35,489			18,039			53,528
Unrealized Loss	(125		)	(42		)	(167		)
Mortgage-backed
Fair value	$	—		$	—		$	—
Cost or Amortized Cost	—			—			—
Unrealized Loss	—			—			—
ABS/CMO*
Fair value	$	2,305		$	—		$	2,305
Cost or Amortized Cost	2,341			—			2,341
Unrealized Loss	(36		)	—			(36		)
Corporate
Fair value	$	83,711		$	20,383		$	104,094
Cost or Amortized Cost	86,809			21,155			107,964
Unrealized Loss	(3,098		)	(772		)	(3,870		)
Municipals
Fair value	$	17,132		$	1,862		$	18,994
Cost or Amortized Cost	17,266			1,872			19,138
Unrealized Loss	(134		)	(10		)	(144		)
Subtotal, debt securities
Fair value	$	144,829		$	40,242		$	185,071
Cost or Amortized Cost	148,244			41,066			189,310
Unrealized Loss	(3,415		)	(824		)	(4,239		)
Common Stock
Fair value	$	42,769		$	—		$	42,769
Cost or Amortized Cost	50,013			—			50,013
Unrealized Loss	(7,244		)	—			(7,244		)
Total
Fair value	$	187,598		$	40,242		$	227,840
Cost or Amortized Cost	198,257			41,066			239,323
Unrealized Loss	(10,659		)	(824		)	(11,483		)

* Asset-backed & collateralized mortgage obligations.

This table excludes securities with a fair value of less than $0.1 million classified as trading.

Investment Positions with Unrealized Losses

Segmented by Type and Period of Continuous

Unrealized Loss at December 31, 2010

(dollars in thousands)	< 12 Mos.			12 Mos. & Greater			Total
Treasuries
Fair value	$	5,689		$	—		$	5,689
Cost or Amortized Cost	5,880			—			5,880
Unrealized Loss	(191		)	—			(191		)
Agencies
Fair value	$	295,897		$	—		$	295,897
Cost or Amortized Cost	304,374			—			304,374
Unrealized Loss	(8,477		)	—			(8,477		)
Mortgage-backed
Fair value	$	43,852		$	—		$	43,852
Cost or Amortized Cost	44,659			—			44,659
Unrealized Loss	(807		)	—			(807		)
ABS/CMO *
Fair value	$	2,160		$	—		$	2,160
Cost or Amortized Cost	2,196			—			2,196
Unrealized Loss	(36		)	—			(36		)
Corporate
Fair value	$	110,772		$	1,951		$	112,723
Cost or Amortized Cost	113,813			2,012			115,825
Unrealized Loss	(3,041		)	(61		)	(3,102		)
Municipals
Fair value	$	80,465		$	996		$	81,461
Cost or Amortized Cost	82,652			1,050			83,702
Unrealized Loss	(2,187		)	(54		)	(2,241		)
Subtotal, debt securities
Fair value	$	538,835		$	2,947		$	541,782
Cost or Amortized Cost	553,574			3,062			556,636
Unrealized Loss	(14,739		)	(115		)	(14,854		)
Common Stock
Fair value	$	6,078		$	—		$	6,078
Cost or Amortized Cost	6,372			—			6,372
Unrealized Loss	(294		)	—			(294		)
Total
Fair value	$	544,913		$	2,947		$	547,860
Cost or Amortized Cost	559,946			3,062			563,008
Unrealized Loss	(15,033		)	(115		)	(15,148		)

* Asset-backed & collateralized mortgage obligations.

This table excludes securities with a fair value of $0.1 million, classified as trading.

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

Available-for-sale

(in thousands)

	9/30/2011
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
Asset Class	Cost		Gains		Losses			Value
Agencies	$	165,399	$	1,274	$	(56	)	$	166,617
Corporates	433,662		30,167		(3,470		)	460,359
Mortgage-backed	239,596		16,477		—			256,073
ABS/CMO*	60,598		2,022		(36		)	62,584
Treasuries	21,511		486		(22		)	21,975
Municipals	234,459		9,836		(144		)	244,151
Total Fixed Income	$	1,155,225	$	60,262	$	(3,728	)	$	1,211,759

Available-for-sale

(in thousands)

	12/31/2010
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
Asset Class	Cost		Gains		Losses			Value
Agencies	$	103,133	$	869	$	(1,789	)	$	102,213
Corporates	449,651		26,259		(2,977		)	472,933
Mortgage-backed	243,364		11,584		(807		)	254,141
ABS/CMO*	47,494		2,457		(36		)	49,915
Treasuries	15,771		244		(191		)	15,824
Municipals	234,456		4,823		(2,241		)	237,038
Total Fixed Income	$	1,093,869	$	46,236	$	(8,041	)	$	1,132,064

*Asset-backed and collateralized mortgage obligations

Schedule of contractual maturity of available-for-sale securities

	9/30/2011				12/31/2010
AFS	Amortized		Fair		Amortized		Fair
(in thousands)	Cost		Value		Cost		Value
Agencies
Due within 1 year	$	503	$	503	$	2,004	$	2,021
After 1 but within 5 years	4,728		4,981		4,796		5,026
After 5 but within 10 years	93,295		93,756		39,988		39,712
After 10 years*	66,873		67,377		56,345		55,454
Total	165,399		166,617		103,133		102,213
Corporates
Due within 1 year	$	—	$	—	$	1,001	$	1,010
After 1 but within 5 years	101,114		107,229		96,768		101,864
After 5 but within 10 years	311,732		332,629		327,171		345,049
After 10 years	20,816		20,501		24,711		25,010
Total	433,662		460,359		449,651		472,933
Mortgage-backed
Due within 1 year	$	—	$	—	$	—	$	—
After 1 but within 5 years	—		—		—		—
After 5 but within 10 years	3,402		3,645		2,521		2,677
After 10 years*	236,194		252,428		240,843		251,464
Total	239,596		256,073		243,364		254,141
Asset-backed
Due within 1 year	$	—	$	—	$	—	$	—
After 1 but within 5 years	3,147		3,262		4,882		5,137
After 5 but within 10 years	4,099		4,584		4,099		4,567
After 10 years*	53,352		54,738		38,513		40,211
Total	60,598		62,584		47,494		49,915
Treasuries
Due within 1 year	$	6,097	$	6,143	$	3,865	$	3,915
After 1 but within 5 years	15,414		15,832		7,012		7,192
After 5 but within 10 years	—		—		4,894		4,717
After 10 years*	—		—		—		—
Total	21,511		21,975		15,771		15,824
Municipals
Due within 1 year	$	8,336	$	8,470	$	14,004	$	14,113
After 1 but within 5 years	18,607		19,334		25,177		26,303
After 5 but within 10 years	100,602		105,654		74,770		77,028
After 10 years*	106,914		110,693		120,505		119,594
Total	234,459		244,151		234,456		237,038
TOTAL	$	1,155,225	$	1,211,759	$	1,093,869	$	1,132,064

* Investments with no stated maturities are included as contractual maturities of greater than 10 years.  Actual maturities may differ due to call or prepayment rights.

Schedule of carrying value and fair value of held-to-maturity securities

Held-to-maturity

(in thousands)

	9/30/2011
			Gross		Gross
	Amortized Cost/		Unrecognized		Unrecognized			Fair
Asset Class	Carrying Value**		Gains		Losses			Value
Agencies	$	299,554	$	1,137	$	(111	)	$	300,580
Corporates	15,000		—		(400		)	14,600
Mortgage-backed	—		—		—			—
ABS/CMO*	—		—		—			—
Treasuries	—		—		—			—
Municipals	3,874		160		—			4,034
Total Fixed Income	$	318,428	$	1,297	$	(511	)	$	319,214

Held-to-maturity

(in thousands)

	12/31/2010
			Gross		Gross
	Amortized Cost/		Unrecognized		Unrecognized			Fair
Asset Class	Carrying Value**		Gains		Losses			Value
Agencies	$	288,407	$	607	$	(6,688	)	$	282,326
Corporates	15,000		100		(125		)	14,975
Mortgage-backed	—		—		—			—
ABS/CMO*	—		—		—			—
Treasuries	—		—		—			—
Municipals	5,851		232		—			6,083
Total Fixed Income	$	309,258	$	939	$	(6,813	)	$	303,384

*Asset-backed and collateralized mortgage obligations

** Held-to-maturity securities are carried on the unaudited condensed consolidated balance sheets at amortized cost and changes in the fair value of these securities, other than impairment charges, are not reported on the financial statements.

Schedule of contractual maturity of held-to-maturity debt securities

	9/30/2011				12/31/2010
HTM	Amortized		Fair		Amortized		Fair
(in thousands)	Cost		Value		Cost		Value
Agencies
Due within 1 year	$	2,001	$	2,078	$	4,086	$	4,117
After 1 but within 5 years	1,972		2,158		3,960		4,351
After 5 but within 10 years	35,771		35,924		18,994		18,812
After 10 years*	259,810		260,420		261,367		255,046
Total	299,554		300,580		288,407		282,326
Corporates
Due within 1 year	$	—	$	—	$	—	$	—
After 1 but within 5 years	—		—		—		—
After 5 but within 10 years	—		—		—		—
After 10 years	15,000		14,600		15,000		14,975
Total	15,000		14,600		15,000		14,975
Mortgage-backed
Due within 1 year	$	—	$	—	$	—	$	—
After 1 but within 5 years	—		—		—		—
After 5 but within 10 years	—		—		—		—
After 10 years*	—		—		—		—
Total	—		—		—		—
Asset-backed
Due within 1 year	$	—	$	—	$	—	$	—
After 1 but within 5 years	—		—		—		—
After 5 but within 10 years	—		—		—		—
After 10 years*	—		—		—		—
Total	—		—		—		—
Treasuries
Due within 1 year	$	—	$	—	$	—	$	—
After 1 but within 5 years	—		—		—		—
After 5 but within 10 years	—		—		—		—
After 10 years*	—		—		—		—
Total	—		—		—		—
Municipals
Due within 1 year	$	800	$	803	$	2,631	$	2,685
After 1 but within 5 years	3,074		3,231		3,220		3,398
After 5 but within 10 years	—		—		—		—
After 10 years*	—		—		—		—
Total	3,874		4,034		5,851		6,083
TOTAL	$	318,428	$	319,214	$	309,258	$	303,384

*Investments with no stated maturities are included as contractual maturities of greater than 10 years.  Actual maturities may differ due to call or prepayment rights.

Schedule of credit quality indicators for investments in unrealized loss positions

	Equivalent	Equivalent	(dollars in thousands)
NAIC	S&P	Moody’s					Unrealized			Percent
Rating	Rating	Rating	Book Value		Fair Value		Loss			to Total
1	AAA/AA/A	Aaa/Aa/A	$	168,065	$	164,460	$	(3,605	)	85.0	%
2	BBB	Baa	21,245		20,611		(634		)	15.0	%
3	BB	Ba	—		—		—			—
4	B	B	—		—		—			—
5	CCC or lower	Caa or lower	—		—		—			—
6			—		—		—			—
		Total	$	189,310	$	185,071	$	(4,239	)	100.0	%