INVESTMENTS (Tables)

3 Months Ended

Mar. 31, 2012

INVESTMENTS

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

Investment Positions with Unrealized Losses

Segmented by Type and Period of Continuous

Unrealized Loss at March 31, 2012

(dollars in thousands)	< 12 Mos.			12 Mos. & Greater			Total
U.S. Government
Fair value	$	5,009		$	—		$	5,009
Cost or Amortized Cost	5,028			—			5,028
Unrealized Loss	(19		)	—			(19		)
U.S. Agency
Fair value	$	115,302		$	—		$	115,302
Cost or Amortized Cost	117,151			—			117,151
Unrealized Loss	(1,849		)	—			(1,849		)
Non-U.S. govt. & agency
Fair value	$	1,946		$	—		$	1,946
Cost or Amortized Cost	1,952			—			1,952
Unrealized Loss	(6		)	—			(6		)
Mortgage-backed
Fair value	$	—		$	—		$	—
Cost or Amortized Cost	—			—			—
Unrealized Loss	—			—			—
ABS/CMO*
Fair value	$	13,055		$	—		$	13,055
Cost or Amortized Cost	13,106			—			13,106
Unrealized Loss	(51		)	—			(51		)
Corporate
Fair value	$	102,435		$	21,273		$	123,708
Cost or Amortized Cost	104,539			22,040			126,579
Unrealized Loss	(2,104		)	(767		)	(2,871		)
States, political subdivisions and revenues
Fair value	$	49,916		$	1,066		$	50,982
Cost or Amortized Cost	51,130			1,067			52,197
Unrealized Loss	(1,214		)	(1		)	(1,215		)
Subtotal, debt securities
Fair value	$	287,663		$	22,339		$	310,002
Cost or Amortized Cost	292,906			23,107			316,013
Unrealized Loss	(5,243		)	(768		)	(6,011		)
Common Stock
Fair value	$	14,392		$	—		$	14,392
Cost or Amortized Cost	15,874			—			15,874
Unrealized Loss	(1,482		)	—			(1,482		)
Total
Fair value	$	302,055		$	22,339		$	324,394
Cost or Amortized Cost	308,780			23,107			331,887
Unrealized Loss	(6,725		)	(768		)	(7,493		)

* 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, 2011

(dollars in thousands)	< 12 Mos.			12 Mos. & Greater			Total
U.S. Government
Fair value	$	5,023		$	—		$	5,023
Cost or Amortized Cost	5,031			—			5,031
Unrealized Loss	(8		)	—			(8		)
U.S. Agency
Fair value	$	—		$	—		$	—
Cost or Amortized Cost	—			—			—
Unrealized Loss	—			—			—
Mortgage-backed
Fair value	$	—		$	—		$	—
Cost or Amortized Cost	—			—			—
Unrealized Loss	—			—			—
ABS/CMO *
Fair value	$	—		$	—		$	—
Cost or Amortized Cost	—			—			—
Unrealized Loss	—			—			—
Corporate
Fair value	$	49,464		$	28,698		$	78,162
Cost or Amortized Cost	51,894			30,351			82,245
Unrealized Loss	(2,430		)	(1,653		)	(4,083		)
States, political subdivisions and revenues
Fair value	$	—		$	1,050		$	1,050
Cost or Amortized Cost	—			1,068			1,068
Unrealized Loss	—			(18		)	(18		)
Subtotal, debt securities
Fair value	$	54,487		$	29,748		$	84,235
Cost or Amortized Cost	56,925			31,419			88,344
Unrealized Loss	(2,438		)	(1,671		)	(4,109		)
Common Stock
Fair value	$	25,952		$	—		$	25,952
Cost or Amortized Cost	28,496			—			28,496
Unrealized Loss	(2,544		)	—			(2,544		)
Total
Fair value	$	80,439		$	29,748		$	110,187
Cost or Amortized Cost	85,421			31,419			116,840
Unrealized Loss	(4,982		)	(1,671		)	(6,653		)

* 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)

	3/31/2012
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
Asset Class	Cost		Gains		Losses			Value
U.S. agencies	$	73,125	$	471	$	(165	)	$	73,431
Corporates	493,373		29,409		(2,382		)	520,400
Mortgage-backed	251,932		15,718		—			267,650
ABS/CMO*	71,770		2,677		(51		)	74,396
Non-U.S. govt. & agency	8,406		298		(6		)	8,698
U.S. government	15,712		381		(19		)	16,074
States, political subdivisions and revenues	279,811		12,206		(1,215		)	290,802
Total Fixed Income	$	1,194,129	$	61,160	$	(3,838	)	$	1,251,451

Available-for-sale

(in thousands)

	12/31/2011
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
Asset Class	Cost		Gains		Losses			Value
U.S. agencies	$	112,975	$	844	$	—		$	113,819
Corporates	439,079		31,640		(3,619		)	467,100
Mortgage-backed	233,134		15,852		—			248,986
ABS/CMO*	54,325		2,628		—			56,953
Non-U.S. govt. & agency	6,403		294		—			6,697
U.S. government	15,721		459		(8		)	16,172
States, political subdivisions and revenues	224,091		12,517		(18		)	236,590
Total Fixed Income	$	1,085,728	$	64,234	$	(3,645	)	$	1,146,317

*Asset-backed and collateralized mortgage obligations

Schedule of contractual maturity of available-for-sale securities

	3/31/2012
AFS	Amortized		Fair
(in thousands)	Cost		Value
Due in one year or less	$	7,792	$	7,892
Due after one year through five years	106,241		112,624
Due after five years through 10 years	565,573		594,238
Due after 10 years	190,821		194,651
Mtge/ABS/CMO*	323,702		342,046
Total available-for-sale	$	1,194,129	$	1,251,451

*Mortgage-backed, asset-backed & collateralized mortgage obligations

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

Held-to-maturity

(in thousands)

	3/31/2012
			Gross		Gross
	Amortized Cost/		Unrecognized		Unrecognized			Fair
Asset Class	Carrying Value**		Gains		Losses			Value
U.S. agencies	$	145,102	$	271	$	(1,684	)	$	143,689
Corporates	15,000		—		(489		)	14,511
Mortgage-backed	—		—		—			—
ABS/CMO*	—		—		—			—
Non-U.S. govt. & agency	—		—		—			—
U.S. government	—		—		—			—
States, political subdivisions and revenues	1,654		121		—			1,775
Total Fixed Income	$	161,756	$	392	$	(2,173	)	$	159,975

Held-to-maturity

(in thousands)

	12/31/2011
			Gross		Gross
	Amortized Cost/		Unrecognized		Unrecognized			Fair
Asset Class	Carrying Value**		Gains		Losses			Value
U.S. agencies	$	243,571	$	1,085	$	—		$	244,656
Corporates	15,000		—		(464		)	14,536
Mortgage-backed	—		—		—			—
ABS/CMO*	—		—		—			—
U.S. government	—		—		—			—
States, political subdivisions and revenues	1,655		134		—			1,789
Total Fixed Income	$	260,226	$	1,219	$	(464	)	$	260,981

*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

	3/31/2012
HTM	Amortized		Fair
(in thousands)	Cost		Value
Due in one year or less	$	4,984	$	5,182
Due after one year through five years	652		740
Due after five years through 10 years	—		—
Due after 10 years	156,120		154,053
Mtge/ABS/CMO*	—		—
Total held-to-maturity	$	161,756	$	159,975

*Mortgage-backed, asset-backed & collateralized mortgage obligations

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	$	300,444	$	294,680	$	(5,764	)	95.9	%
2	BBB	Baa	15,569		15,322		(247		)	4.1	%
3	BB	Ba	—		—		—			—
4	B	B	—		—		—			—
5	CCC or lower	Caa or lower	—		—		—			—
6			—		—		—			—
		Total	$	316,013	$	310,002	$	(6,011	)	100.0	%