INVESTMENTS (Tables)

6 Months Ended

Jun. 30, 2013

INVESTMENTS

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

Available-for-sale

(in thousands)

	6/30/2013
	Cost or		Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
Asset Class	Cost		Gains		Losses			Value
U.S. agency	$	8,561	$	80	$	(53	)	$	8,588
Corporate	493,568		23,612		(7,429		)	509,751
Mortgage-backed	257,996		8,640		(3,181		)	263,455
ABS/CMBS*	94,050		1,561		(2,190		)	93,421
Non-U.S. govt. & agency	8,412		437		—			8,849
U.S. government	16,994		263		(2		)	17,255
Municipal	501,193		8,237		(11,239		)	498,191
Total Fixed Income	$	1,380,774	$	42,830	$	(24,094	)	$	1,399,510
Equity	$	240,066	$	177,104	$	(356	)	$	416,814

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/CMBS*	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 commercial mortgage-backed

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

Held-to-maturity

(in thousands)

	6/30/2013
			Gross		Gross
	Amortized Cost/		Unrecognized		Unrecognized		Fair
Asset Class	Carrying Value**		Gains		Losses		Value
U.S. agency	$	—	$	—	$	—	$	—
Corporate	—		—		—		—
Mortgage-backed	—		—		—		—
ABS/CMBS*	—		—		—		—
Non-U.S. govt. & agency	—		—		—		—
U.S. government	—		—		—		—
Municipal	651		50		—		701
Total Fixed Income	$	651	$	50	$	—	$	701

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/CMBS*	—		—		—		—
U.S. government	—		—		—		—
Municipal	1,652		66		—		1,718
Total Fixed Income	$	11,728	$	140	$	—	$	11,868

*Asset-backed and commercial mortgage-backed

** 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 June 30, 2013

(in thousands)	< 12 Mos.			12 Mos. & Greater		Total
U.S. Government
Fair value	$	2,244		$	—	$	2,244
Cost or Amortized Cost	2,246			—		2,246
Unrealized Loss	(2		)	—		(2		)
U.S. Agency
Fair value	$	3,943		$	—	$	3,943
Cost or Amortized Cost	3,996			—		3,996
Unrealized Loss	(53		)	—		(53		)
Non-U.S. govt. & agency
Fair value	$	—		$	—	$	—
Cost or Amortized Cost	—			—		—
Unrealized Loss	—			—		—
Mortgage-backed
Fair value	$	94,673		$	—	$	94,673
Cost or Amortized Cost	97,854			—		97,854
Unrealized Loss	(3,181		)	—		(3,181		)
ABS/CMBS*
Fair value	$	48,449		$	—	$	48,449
Cost or Amortized Cost	50,639			—		50,639
Unrealized Loss	(2,190		)	—		(2,190		)
Corporate
Fair value	$	184,781		$	—	$	184,781
Cost or Amortized Cost	192,210			—		192,210
Unrealized Loss	(7,429		)	—		(7,429		)
Municipal
Fair value	$	282,492		$	—	$	282,492
Cost or Amortized Cost	293,731			—		293,731
Unrealized Loss	(11,239		)	—		(11,239		)
Subtotal, debt securities
Fair value	$	616,582		$	—	$	616,582
Cost or Amortized Cost	640,676			—		640,676
Unrealized Loss	(24,094		)	—		(24,094		)
Equity securities
Fair value	$	2,313		$	—	$	2,313
Cost or Amortized Cost	2,669			—		2,669
Unrealized Loss	(356		)	—		(356		)
Total
Fair value	$	618,895		$	—	$	618,895
Cost or Amortized Cost	643,345			—		643,345
Unrealized Loss	(24,450		)	—		(24,450		)

* Asset-backed & commercial mortgage-backed.

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/CMBS*
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 & commercial mortgage-backed.

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	$	618,529	$	595,416	$	(23,113	)	95.9	%
2	BBB	Baa	22,147		21,166		(981		)	4.1	%
3	BB	Ba	—		—		—			—
4	B	B	—		—		—			—
5	CCC or lower	Caa or lower	—		—		—			—
6			—		—		—			—
		Total	$	640,676	$	616,582	$	(24,094	)	100.0	%

Available-for-sale

INVESTMENTS

Schedule of contractual maturity of securities

	6/30/2013
AFS	Amortized		Fair
(in thousands)	Cost		Value
Due in one year or less	$	7,482	$	7,598
Due after one year through five years	149,229		157,574
Due after five years through 10 years	639,502		649,586
Due after 10 years	232,515		227,876
Mtge/ABS/CMBS*	352,046		356,876
Total available-for-sale	$	1,380,774	$	1,399,510

*Mortgage-backed, asset-backed & commercial mortgage-backed

Held-to-maturity

INVESTMENTS

Schedule of contractual maturity of securities

	6/30/2013
HTM	Amortized		Fair
(in thousands)	Cost		Value
Due in one year or less	$	—	$	—
Due after one year through five years	651		701
Due after five years through 10 years	—		—
Due after 10 years	—		—
Mtge/ABS/CMBS*	—		—
Total held-to-maturity	$	651	$	701

*Mortgage-backed, asset-backed & commercial mortgage-backed