INVESTMENTS (Tables)

9 Months Ended

Sep. 30, 2012

INVESTMENTS

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

Available-for-sale

(in thousands)

	9/30/2012
	Cost or		Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
Asset Class	Cost		Gains		Losses			Value
U.S. agencies	$	19,632	$	182	$	—		$	19,814
Corporates	543,236		48,063		(229		)	591,070
Mortgage-backed	253,610		18,665		—			272,275
ABS/CMO*	82,752		4,949		—			87,701
Non-U.S. govt. & agency	8,408		880		—			9,288
U.S. government	16,359		393		—			16,752
States, political subdivisions and revenues	418,092		18,022		(45		)	436,069
Total Fixed Income	$	1,342,089	$	91,154	$	(274	)	$	1,432,969
Equities	$	254,428	$	148,720	$	(1,049	)	$	402,099

Available-for-sale

(in thousands)

	12/31/2011
	Cost or		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
Equities	$	269,400	$	121,833	$	(2,544	)	$	388,689

*Asset-backed and collateralized mortgage obligations

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

Held-to-maturity

(in thousands)

	9/30/2012
			Gross		Gross
	Amortized Cost/		Unrecognized		Unrecognized		Fair
Asset Class	Carrying Value**		Gains		Losses		Value
U.S. agencies	$	10,071	$	135	$	—	$	10,206
Corporates	—		—		—		—
Mortgage-backed	—		—		—		—
ABS/CMO*	—		—		—		—
Non-U.S. govt. & agency	—		—		—		—
U.S. government	—		—		—		—
States, political subdivisions and revenues	1,653		87		—		1,740
Total Fixed Income	$	11,724	$	222	$	—	$	11,946

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 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 September 30, 2012

(dollars in thousands)	< 12 Mos.			12 Mos. & Greater			Total
U.S. Government
Fair value	$	—		$	—		$	—
Cost or Amortized Cost	—			—			—
Unrealized Loss	—			—			—
U.S. Agency
Fair value	$	—		$	—		$	—
Cost or Amortized Cost	—			—			—
Unrealized Loss	—			—			—
Non-U.S. govt. & agency
Fair value	$	—		$	—		$	—
Cost or Amortized Cost	—			—			—
Unrealized Loss	—			—			—
Mortgage-backed
Fair value	$	—		$	—		$	—
Cost or Amortized Cost	—			—			—
Unrealized Loss	—			—			—
ABS/CMO*
Fair value	$	27		$	—		$	27
Cost or Amortized Cost	27			—			27
Unrealized Loss	—			—			—
Corporate
Fair value	$	22,504		$	3,760		$	26,264
Cost or Amortized Cost	22,536			3,957			26,493
Unrealized Loss	(32		)	(197		)	(229		)
States, political subdivisions and revenues
Fair value	$	20,530		$	—		$	20,530
Cost or Amortized Cost	20,575			—			20,575
Unrealized Loss	(45		)	—			(45		)
Subtotal, debt securities
Fair value	$	43,061		$	3,760		$	46,821
Cost or Amortized Cost	43,138			3,957			47,095
Unrealized Loss	(77		)	(197		)	(274		)
Common Stock
Fair value	$	21,425		$	—		$	21,425
Cost or Amortized Cost	22,474			—			22,474
Unrealized Loss	(1,049		)	—			(1,049		)
Total
Fair value	$	64,486		$	3,760		$	68,246
Cost or Amortized Cost	65,612			3,957			69,569
Unrealized Loss	(1,126		)	(197		)	(1,323		)

* 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	—			—			—
Non-U.S. govt. & 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 credit quality indicators for investments in unrealized loss positions

	Equivalent	Equivalent	(dollars in thousands)
NAIC	S&P	Moody’s	Amortized				Unrealized			Percent
Rating	Rating	Rating	Cost		Fair Value		Loss			to Total
1	AAA/AA/A	Aaa/Aa/A	$	47,095	$	46,821	$	(274	)	100.0	%
2	BBB	Baa	—		—		—			—
3	BB	Ba	—		—		—			—
4	B	B	—		—		—			—
5	CCC or lower	Caa or lower	—		—		—			—
6			—		—		—			—
		Total	$	47,095	$	46,821	$	(274	)	100.0	%

Available-for-sale

INVESTMENTS

Schedule of contractual maturity of securities

	9/30/2012
AFS	Amortized		Fair
(in thousands)	Cost		Value
Due in one year or less	$	25,304	$	25,393
Due after one year through five years	127,050		133,778
Due after five years through 10 years	662,829		714,560
Due after 10 years	190,544		199,262
Mtge/ABS/CMO*	336,362		359,976
Total available-for-sale	$	1,342,089	$	1,432,969

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

Held-to-maturity

INVESTMENTS

Schedule of contractual maturity of securities

	9/30/2012
HTM	Amortized		Fair
(in thousands)	Cost		Value
Due in one year or less	$	2,992	$	3,065
Due after one year through five years	652		727
Due after five years through 10 years	—		—
Due after 10 years	8,080		8,154
Mtge/ABS/CMO*	—		—
Total held-to-maturity	$	11,724	$	11,946

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