INVESTMENTS (Tables)

9 Months Ended

Sep. 30, 2013

INVESTMENTS

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

Available-for-sale

(in thousands)

	9/30/2013
	Cost or		Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
Asset Class	Cost		Gains		Losses			Value
U.S. agency	$	8,537	$	52	$	(130	)	$	8,459
Corporate	474,628		23,746		(6,850		)	491,524
Mortgage-backed	247,317		7,722		(3,475		)	251,564
ABS/CMBS*	94,123		1,609		(1,725		)	94,007
Non-U.S. govt. & agency	11,414		469		(16		)	11,867
U.S. government	17,090		253		—			17,343
Municipal	506,834		8,079		(10,665		)	504,248
Total Fixed Income	$	1,359,943	$	41,930	$	(22,861	)	$	1,379,012
Equity	$	218,656	$	173,861	$	(361	)	$	392,156

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)

	9/30/2013
			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		44		—		695
Total Fixed Income	$	651	$	44	$	—	$	695

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 September 30, 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	$	3,866		$	—		$	3,866
Cost or Amortized Cost	3,996			—			3,996
Unrealized Loss	(130		)	—			(130		)
Non-U.S. govt. & agency
Fair value	$	2,985		$	—		$	2,985
Cost or Amortized Cost	3,001			—			3,001
Unrealized Loss	(16		)	—			(16		)
Mortgage-backed
Fair value	$	92,321		$	—		$	92,321
Cost or Amortized Cost	95,796			—			95,796
Unrealized Loss	(3,475		)	—			(3,475		)
ABS/CMBS*
Fair value	$	50,376		$	—		$	50,376
Cost or Amortized Cost	52,101			—			52,101
Unrealized Loss	(1,725		)	—			(1,725		)
Corporate
Fair value	$	175,314		$	—		$	175,314
Cost or Amortized Cost	182,164			—			182,164
Unrealized Loss	(6,850		)	—			(6,850		)
Municipal
Fair value	$	283,155		$	946		$	284,101
Cost or Amortized Cost	293,809			957			294,766
Unrealized Loss	(10,654		)	(11		)	(10,665		)
Subtotal, debt securities
Fair value	$	608,017		$	946		$	608,963
Cost or Amortized Cost	630,867			957			631,824
Unrealized Loss	(22,850		)	(11		)	(22,861		)
Equity securities
Fair value	$	7,041		$	—		$	7,041
Cost or Amortized Cost	7,402			—			7,402
Unrealized Loss	(361		)	—			(361		)
Total
Fair value	$	615,058		$	946		$	616,004
Cost or Amortized Cost	638,269			957			639,226
Unrealized Loss	(23,211		)	(11		)	(23,222		)

* 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	$	597,964	$	576,292	$	(21,672	)	94.8	%
2	BBB	Baa	32,870		31,703		(1,167		)	5.1	%
3	BB	Ba	990		968		(22		)	0.1	%
4	B	B	—		—		—			—
5	CCC or lower	Caa or lower	—		—		—			—
6			—		—		—			—
		Total	$	631,824	$	608,963	$	(22,861	)	100.0	%

Available-For-Sale Securities

INVESTMENTS

Schedule of contractual maturity of securities

	9/30/2013
AFS	Amortized		Fair
(in thousands)	Cost		Value
Due in one year or less	$	12,910	$	13,014
Due after one year through five years	146,264		155,143
Due after five years through 10 years	616,368		627,254
Due after 10 years	242,961		238,030
Mtge/ABS/CMBS*	341,440		345,571
Total available-for-sale	$	1,359,943	$	1,379,012

Held-to-Maturity Securities

INVESTMENTS

Schedule of contractual maturity of securities

	9/30/2013
HTM	Amortized		Fair
(in thousands)	Cost		Value
Due in one year or less	$	—	$	—
Due after one year through five years	651		695
Due after five years through 10 years	—		—
Due after 10 years	—		—
Mtge/ABS/CMBS*	—		—
Total held-to-maturity	$	651	$	695

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