INVESTMENTS (Tables)

3 Months Ended

Mar. 31, 2013

INVESTMENTS

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

Available-for-sale

(in thousands)

	3/31/2013
	Cost or		Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
Asset Class	Cost		Gains		Losses			Value
U.S. agency	$	11,585	$	118	$	—		$	11,703
Corporate	538,511		42,304		(632		)	580,183
Mortgage-backed	251,591		13,359		(177		)	264,773
ABS/CMO*	84,226		3,743		(193		)	87,776
Non-U.S. govt. & agency	8,411		833		—			9,244
U.S. government	16,997		330		—			17,327
Municipal	427,903		14,934		(273		)	442,564
Total Fixed Income	$	1,339,224	$	75,621	$	(1,275	)	$	1,413,570
Equity	$	235,195	$	172,775	$	(290	)	$	407,680

Available-for-sale

(in thousands)

	12/31/2012
	Cost or		Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
Asset Class	Cost		Gains		Losses			Value
U.S. agency	$	11,609	$	150	$	—		$	11,759
Corporate	535,437		45,497		(226		)	580,708
Mortgage-backed	234,629		15,758		—			250,387
ABS/CMO*	72,681		4,648		—			77,329
Non-U.S. govt. & agency	8,410		957		—			9,367
U.S. government	16,358		355		—			16,713
Municipal	415,226		17,250		(157		)	432,319
Total Fixed Income	$	1,294,350	$	84,615	$	(383	)	$	1,378,582
Equity	$	240,287	$	136,376	$	(875	)	$	375,788

*Asset-backed and collateralized mortgage obligations

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

Held-to-maturity

(in thousands)

	3/31/2013
			Gross		Gross
	Amortized Cost/		Unrecognized		Unrecognized		Fair
Asset Class	Carrying Value**		Gains		Losses		Value
U.S. agency	$	5,085	$	10	$	—	$	5,095
Corporate	—		—		—		—
Mortgage-backed	—		—		—		—
ABS/CMO*	—		—		—		—
Non-U.S. govt. & agency	—		—		—		—
U.S. government	—		—		—		—
Municipal	651		60		—		711
Total Fixed Income	$	5,736	$	70	$	—	$	5,806

Held-to-maturity

(in thousands)

	12/31/2012
			Gross		Gross
	Amortized Cost/		Unrecognized		Unrecognized		Fair
Asset Class	Carrying Value**		Gains		Losses		Value
U.S. agency	$	10,076	$	74	$	—	$	10,150
Corporate	—		—		—		—
Mortgage-backed	—		—		—		—
ABS/CMO*	—		—		—		—
U.S. government	—		—		—		—
Municipal	1,652		66		—		1,718
Total Fixed Income	$	11,728	$	140	$	—	$	11,868

*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 March 31, 2013

(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	$	28,234		$	—		$	28,234
Cost or Amortized Cost	28,411			—			28,411
Unrealized Loss	(177		)	—			(177		)
ABS/CMO*
Fair value	$	14,612		$	—		$	14,612
Cost or Amortized Cost	14,805			—			14,805
Unrealized Loss	(193		)	—			(193		)
Corporate
Fair value	$	68,943		$	976		$	69,919
Cost or Amortized Cost	69,558			993			70,551
Unrealized Loss	(615		)	(17		)	(632		)
Municipal
Fair value	$	52,178		$	—		$	52,178
Cost or Amortized Cost	52,451			—			52,451
Unrealized Loss	(273		)	—			(273		)
Subtotal, debt securities
Fair value	$	163,967		$	976		$	164,943
Cost or Amortized Cost	165,225			993			166,218
Unrealized Loss	(1,258		)	(17		)	(1,275		)
Equity securities
Fair value	$	2,379		$	—		$	2,379
Cost or Amortized Cost	2,669			—			2,669
Unrealized Loss	(290		)	—			(290		)
Total
Fair value	$	166,346		$	976		$	167,322
Cost or Amortized Cost	167,894			993			168,887
Unrealized Loss	(1,548		)	(17		)	(1,565		)

* 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, 2012

(in thousands)	< 12 Mos.			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	—			—			—
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	$	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.

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	$	158,976	$	157,730	$	(1,246	)	97.7	%
2	BBB	Baa	7,242		7,213		(29		)	2.3	%
3	BB	Ba	—		—		—			—
4	B	B	—		—		—			—
5	CCC or lower	Caa or lower	—		—		—			—
6			—		—		—			—
		Total	$	166,218	$	164,943	$	(1,275	)	100.0	%

Available-for-sale

INVESTMENTS

Schedule of contractual maturity of securities

	3/31/2013
AFS	Amortized		Fair
(in thousands)	Cost		Value
Due in one year or less	$	25,339	$	25,448
Due after one year through five years	140,966		150,519
Due after five years through 10 years	680,044		722,419
Due after 10 years	157,058		162,635
Mtge/ABS/CMO*	335,817		352,549
Total available-for-sale	$	1,339,224	$	1,413,570

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

Held-to-maturity

INVESTMENTS

Schedule of contractual maturity of securities

	3/31/2013
HTM	Amortized		Fair
(in thousands)	Cost		Value
Due in one year or less	$	—	$	—
Due after one year through five years	651		711
Due after five years through 10 years	—		—
Due after 10 years	5,085		5,095
Mtge/ABS/CMO*	—		—
Total held-to-maturity	$	5,736	$	5,806

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