INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2012

INVESTMENTS

Schedule of net investment income

NET INVESTMENT INCOME

(in thousands)	2012			2011			2010
Interest on fixed income securities	$	50,646		$	58,294		$	62,806
Dividends on equity securities	12,848			9,957			8,192
Interest on cash and short-term investments	15			47			170
Gross investment income	63,509			68,298			71,168
Less investment expenses	(4,678		)	(4,617		)	(4,369		)
Net investment income	$	58,831		$	63,681		$	66,799

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

REALIZED/UNREALIZED GAINS

(in thousands)	2012			2011			2010
Net realized investment gains (losses):
Fixed income
Available-for-sale	$	12,965		$	10,892		$	15,590
Held-to-maturity	247			201			120
Trading	—			—			28
Equity securities	16,245			6,129			7,443
Equity securities OTTI	(1,156		)	(257		)	—
Other	(2,929		)	71			62
Total	$	25,372		$	17,036		$	23,243
Net changes in unrealized gains (losses) on investments:
Fixed income:
Available-for-sale	$	23,643		$	22,393		$	4,879
Equity securities	16,212			10,462			23,816
Total	$	39,855		$	32,855		$	28,695
Net realized investment gains (losses) and changes in unrealized gains (losses) on investments	$	65,227		$	49,891		$	51,938

Schedule of disposition of fixed maturities and equities

SALES

								Net
	Proceeds		Gross Realized					Realized
(in thousands)	From Sales		Gains		Losses			Gain (Loss)
2012
Available-for-sale	$	181,338	$	11,208	$	(43	)	$	11,165
Held-to-maturity	—		—		—			—
Trading	—		—		—			—
Equities	78,315		19,755		(3,510		)	16,245
2011
Available-for-sale	$	383,664	$	11,333	$	(487	)	$	10,846
Held-to-maturity	—		—		—			—
Trading	—		—		—			—
Equities	40,092		8,483		(2,354		)	6,129
2010
Available-for-sale	$	323,887	$	15,017	$	(59	)	$	14,958
Held-to-maturity	—		—		—			—
Trading	1,006		28		—			28
Equities	35,559		8,525		(1,082		)	7,443

CALLS/MATURITIES

								Net
			Gross Realized					Realized
(in thousands)	Proceeds		Gains		Losses			Gain (Loss)
2012
Available-for-sale	$	248,134	$	1,806	$	(6	)	$	1,800
Held-to-maturity	273,816		247		—			247
Trading	—		—		—			—
2011
Available-for-sale	$	261,654	$	63	$	(17	)	$	46
Held-to-maturity	258,493		201		—			201
Trading	6		—		—			—
2010
Available-for-sale	$	382,456	$	636	$	(4	)	$	632
Held-to-maturity	249,927		120		—			120
Trading	3		—		—			—

Schedule of assets measured at fair value on recurring basis

Assets measured at fair value on a recurring basis as of December 31, 2012, are summarized below:

	Quoted in		Significant
	Active Markets		Other		Significant
	for Identical		Observable		Unobservable
	Assets		Inputs		Inputs
(in thousands)	(Level 1)		(Level 2)		(Level 3)		Total
Trading securities:
Corporate	$	—	$	—	$	—	$	—
Mortgage-backed	—		7		—		7
ABS/CMO*	—		—		—		—
U.S. government	—		—		—		—
Total trading securities	$	—	$	7	$	—	$	7
Available-for-sale securities:
U.S. agency	$	—	$	11,759	$	—	$	11,759
Corporate	—		580,708		—		580,708
Mortgage-backed	—		250,387		—		250,387
ABS/CMO*	—		77,329		—		77,329
Non-U.S. govt. & agency	—		9,367		—		9,367
U.S. government	—		16,713		—		16,713
Municipal	—		432,319		—		432,319
Equity	375,788		—		—		375,788
Total available-for-sale securities	$	375,788	$	1,378,582	$	—	$	1,754,370
Total	$	375,788	$	1,378,589	$	—	$	1,754,377

*Asset-backed & collateralized mortgage obligations

Assets measured at fair value on a recurring basis as of December 31, 2011, are summarized below:

	Quoted in		Significant
	Active Markets		Other		Significant
	for Identical		Observable		Unobservable
	Assets		Inputs		Inputs
(in thousands)	(Level 1)		(Level 2)		(Level 3)		Total
Trading securities:
Corporate	$	—	$	—	$	—	$	—
Mortgage-backed	—		7		—		7
ABS/CMO*	—		—		—		—
U.S. government	—		—		—		—
Total trading securities	$	—	$	7	$	—	$	7
Available-for-sale securities:
U.S. agency	$	—	$	113,819	$	—	$	113,819
Corporate	—		467,100		—		467,100
Mortgage-backed	—		248,986		—		248,986
ABS/CMO*	—		56,953		—		56,953
Non-U.S. govt. & agency	—		6,697		—		6,697
U.S. government	—		16,172		—		16,172
Municipal	—		236,590		—		236,590
Equity	388,689		—		—		388,689
Total available-for-sale securities	$	388,689	$	1,146,317	$	—	$	1,535,006
Total	$	388,689	$	1,146,324	$	—	$	1,535,013

*Asset-backed & collateralized mortgage obligations

Schedule of amortized costs and estimated fair values of investments in fixed income and equity securities

2012	Amortized				Gross Unrealized
(in thousands)	Cost		Fair Value		Gains		Losses
Available-for-sale:
U.S. government	$	16,358	$	16,713	$	355	$	—
U.S. agency	11,609		11,759		150		—
Non-U.S. govt. & agency	8,410		9,367		957		—
Mtge/ABS/CMO*	307,310		327,716		20,406		—
Corporate	535,437		580,708		45,497		(226		)
Municipal	415,226		432,319		17,250		(157		)
Fixed maturities	$	1,294,350	$	1,378,582	$	84,615	$	(383	)
Equity securities	240,287		375,788		136,376		(875		)
Total available-for-sale	$	1,534,637	$	1,754,370	$	220,991	$	(1,258	)
Held-to-maturity:
U.S. agency	$	10,076	$	10,150	$	74	$	—
Corporate	—		—		—		—
Municipal	1,652		1,718		66		—
Total held-to-maturity	$	11,728	$	11,868	$	140	$	—
Trading**:
U.S. government	$	—	$	—	$	—	$	—
U.S. agency	—		—		—		—
Mtge/ABS/CMO*	6		7		—		—
Corporate	—		—		—		—
Municipal	—		—		—		—
Total trading	$	6	$	7	$	—	$	—
Total	$	1,546,371	$	1,766,245	$	221,131	$	(1,258	)

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

**Trading securities are carried at fair value with unrealized gains (losses) included in earnings.

2011	Amortized				Gross Unrealized
(in thousands)	Cost		Fair Value		Gains		Losses
Available-for-sale:
U.S. government	$	15,721	$	16,172	$	459	$	(8	)
U.S. agency	112,975		113,819		844		—
Non-U.S. govt. & agency	6,403		6,697		294		—
Mtge/ABS/CMO*	287,459		305,939		18,480		—
Corporate	439,079		467,100		31,640		(3,619		)
Municipal	224,091		236,590		12,517		(18		)
Fixed maturities	$	1,085,728	$	1,146,317	$	64,234	$	(3,645	)
Equity securities	269,400		388,689		121,833		(2,544		)
Total available-for-sale	$	1,355,128	$	1,535,006	$	186,067	$	(6,189	)
Held-to-maturity:
U.S. agency	$	243,571	$	244,656	$	1,085	$	—
Corporate	15,000		14,536		—		(464		)
Municipal	1,655		1,789		134		—
Total held-to-maturity	$	260,226	$	260,981	$	1,219	$	(464	)
Trading**:
U.S. government	$	—	$	—	$	—	$	—
U.S. agency	—		—		—		—
Mtge/ABS/CMO*	7		7		—		—
Corporate	—		—		—		—
Municipal	—		—		—		—
Total trading	$	7	$	7	$	—	$	—
Total	$	1,615,361	$	1,795,994	$	187,286	$	(6,653	)

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

**Trading securities are carried at fair value with unrealized gains (losses) included in earnings.

Schedule of contractual maturity of securities

(in thousands)	Amortized Cost		Fair Value
Available-for-sale:
Due in one year or less	$	19,901	$	19,896
Due after one year through five years	123,942		131,681
Due after five years through 10 years	659,318		707,490
Due after 10 years	183,879		191,799
Mtge/ABS/CMO*	307,310		327,716
Total available-for-sale	$	1,294,350	$	1,378,582
Held-to-maturity:
Due in one year or less	$	2,996	$	3,023
Due after one year through five years	651		718
Due after five years through 10 years	—		—
Due after 10 years	8,081		8,127
Total held-to-maturity	$	11,728	$	11,868
Trading:
Due in one year or less	$	—	$	—
Due after one year through five years	—		—
Due after five years through 10 years	—		—
Due after 10 years	—		—
Mtge/ABS/CMO*	6		7
Total trading	$	6	$	7
Total fixed income:
Due in one year or less	$	.22,897	$	.22,919
Due after one year through five years	124,593		132,399
Due after five years through 10 years	659,318		707,490
Due after 10 years	191,960		199,926
Mtge/ABS/CMO*	307,316		327,723
Grand total	$	1,306,084	$	1,390,457

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

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

December 31, 2012				12 Mos.
(in thousands)	<12 Mos.			& Greater			Total
U.S. Government:
Fair value	$	749		$	—		$	749
Cost or amortized cost	749			—			749
Unrealized loss	$	—		$	—		$	—
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	$	18		$	—		$	18
Cost or amortized cost	18			—			18
Unrealized loss	$	—		$	—		$	—
Corporate:
Fair value	$	35,969		$	960		$	36,929
Cost or amortized cost	36,162			993			37,155
Unrealized loss	$	(193	)	$	(33	)	$	(226	)
Municipal:
Fair value	$	35,064		$	—		$	35,064
Cost or amortized cost	35,221			—			35,221
Unrealized loss	$	(157	)	$	—		$	(157	)
Subtotal, debt securities:
Fair value	$	71,800		$	960		$	72,760
Cost or amortized cost	72,150			993			73,143
Unrealized loss	$	(350	)	$	(33	)	$	(383	)
Equity securities:
Fair value	$	16,207		$	—		$	16,207
Cost or amortized cost	17,082			—			17,082
Unrealized loss	$	(875	)	$	—		$	(875	)
Total:
Fair value	$	88,007		$	960		$	88,967
Cost or amortized cost	89,232			993			90,225
Unrealized loss	$	(1,225	)	$	(33	)	$	(1,258	)

*Asset-backed & collateralized mortgage obligations

December 31, 2011				12 Mos.
(in thousands)	<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	)
Municipal:
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	)
Equity securities:
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