INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2013

NET INVESTMENT INCOME

(in thousands)	2013			2012			2011
Interest on fixed income securities	$	45,870		$	50,646		$	58,294
Dividends on equity securities	11,865			12,848			9,957
Interest on cash and short-term investments	23			15			47
Gross investment income	57,758			63,509			68,298
Less investment expenses	(4,995		)	(4,678		)	(4,617		)
Net investment income	$	52,763		$	58,831		$	63,681

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

REALIZED/UNREALIZED GAINS

(in thousands)	2013			2012			2011
Net realized investment gains (losses)
Fixed income
Available-for-sale	$	1,338		$	12,965		$	10,892
Available-for-sale OTTI	—			—			—
Held-to-maturity	9			247			201
Trading	—			—			—
Equity securities	21,533			16,245			6,129
Equity securities OTTI	—			(1,156		)	(257		)
Other	(844		)	(2,929		)	71
Total	$	22,036		$	25,372		$	17,036
Net changes in unrealized gains
(losses) on investments
Fixed income
Available-for-sale	$	(75,228	)	$	23,643		$	22,393
Equity securities	64,305			16,212			10,462
Total	$	(10,923	)	$	39,855		$	32,855
Net realized investment gains (losses) and changes in unrealized gains (losses) on investments	$	11,113		$	65,227		$	49,891

Schedule of disposition of fixed maturities and equities

								Net
SALES	Proceeds		Gross Realized					Realized
(in thousands)	From Sales		Gains		Losses			Gain (Loss)
2013
Available-for-sale	$	173,694	$	3,561	$	(2,597	)	$	964
Held-to-maturity	—		—		—			—
Trading	5		—		—			—
Equities	73,982		21,542		(9		)	21,533
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

								Net
CALLS/MATURITIES			Gross Realized					Realized
(in thousands)	Proceeds		Gains		Losses			Gain (Loss)
2013
Available-for-sale	$	224,620	$	379	$	(5	)	$	374
Held-to-maturity	11,090		9		—			9
Trading	1		—		—			—
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		—		—			—

Schedule of assets measured at fair value on recurring basis

Assets measured at fair value on a recurring basis as of December 31, 2013, are summarized below:

			Significant
	Quoted in Active		Other		Significant
	Markets for		Observable		Unobservable
	Identical Assets		Inputs		Inputs
(in thousands)	(Level 1)		(Level 2)		(Level 3)		Total
Trading securities	$	—	$	—	$	—	$	—
Available-for-sale securities:
U.S. agency	$	—	$	10,298	$	—	$	10,298
Corporate	—		526,038		—		526,038
Mortgage-backed	—		244,416		—		244,416
ABS/CMBS*	—		106,309		—		106,309
Non-U.S. govt. & agency	—		13,678		—		13,678
U.S. government	—		17,303		—		17,303
Municipal	—		522,010		—		522,010
Equity	418,654		—		—		418,654
Total available-for-sale securities	$	418,654	$	1,440,052	$	—	$	1,858,706
Total	$	418,654	$	1,440,052	$	—	$	1,858,706

*Asset-backed & commercial mortgage-backed

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

			Significant
	Quoted in Active		Other		Significant
	Markets for		Observable		Unobservable
	Identical Assets		Inputs		Inputs
(in thousands)	(Level 1)		(Level 2)		(Level 3)		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/CMBS*	—		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 & commercial mortgage-backed

Schedule of contractual maturity of securities

(in thousands)	Amortized Cost		Fair Value

Available-for-sale
Due in one year or less	$	12,048	$	12,102
Due after one year through five years	150,049		158,587
Due after five years through 10 years	668,637		675,290
Due after 10 years	250,127		243,348
Mtge/ABS/CMBS*	350,188		350,725
Total available-for-sale	$	1,431,049	$	1,440,052

Held-to-maturity:
Due in one year or less	$	—	$	—
Due after one year through five years	651		687
Due after five years through 10 years	—		—
Due after 10 years	—		—
Total held-to-maturity	$	651	$	687

Trading	$	—	$	—

Total fixed income
Due in one year or less	$	12,048	$	12,102
Due after one year through five years	150,700		159,274
Due after five years through 10 years	668,637		675,290
Due after 10 years	250,127		243,348
Mtge/ABS/CMBS*	350,188		350,725
Total fixed income	$	1,431,700	$	1,440,739

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

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

2013	Amortized				Gross Unrealized
(in thousands)	Cost		Fair Value		Gains		Losses
Available-for-sale:
U.S. government	$	17,086	$	17,303	$	217	$	—
U.S. agency	10,513		10,298		22		(237		)
Non-U.S. govt. & agency	13,306		13,678		437		(65		)
Mtge/ABS/CMBS*	350,187		350,725		8,188		(7,650		)
Corporate	511,748		526,038		22,302		(8,012		)
Municipal	528,209		522,010		6,495		(12,694		)
Total fixed income	$	1,431,049	$	1,440,052	$	37,661	$	(28,658	)
Equity securities	218,848		418,654		200,081		(275		)
Total available-for-sale	$	1,649,897	$	1,858,706	$	237,742	$	(28,933	)

Held-to-maturity:
U.S. agency	$	—	$	—	$	—	$	—
Corporate	—		—		—		—
Municipal	651		687		36		—
Total held-to-maturity	$	651	$	687	$	36	$	—

Trading**	$	—	$	—	$	—	$	—
Total	$	1,650,548	$	1,859,393	$	237,778	$	(28,933	)

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

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

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/CMBS*	307,310		327,716		20,406		—
Corporate	535,437		580,708		45,497		(226		)
Municipal	415,226		432,319		17,250		(157		)
Total fixed income	$	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**	$	6	$	7	$	—	$	—
Total	$	1,546,371	$	1,766,245	$	221,131	$	(1,258	)

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

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

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

	December 31, 2013									December 31, 2012
(in thousands)	< 12 Mos.			12 Mos. & Greater			Total			< 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	$	5,760		$	—		$	5,760		$	—		$	—		$	—
Cost or amortized cost	5,997			—			5,997			—			—			—
Unrealized Loss	$	(237	)	$	—		$	(237	)	$	—		$	—		$	—

Non-U.S. Government
Fair value	$	1,825		$	—		$	1,825		$	—		$	—		$	—
Cost or amortized cost	1,890			—			1,890			—			—			—
Unrealized Loss	$	(65	)	$	—		$	(65	)	$	—		$	—		$	—

Mortgage-backed
Fair value	$	118,283		$	—		$	118,283		$	—		$	—		$	—
Cost or amortized cost	124,034			—			124,034			—			—			—
Unrealized Loss	$	(5,751	)	$	—		$	(5,751	)	$	—		$	—		$	—

ABS/CMBS*
Fair value	$	54,115		$	—		$	54,115		$	18		$	—		$	18
Cost or amortized cost	56,014			—			56,014			18			—			18
Unrealized Loss	$	(1,899	)	$	—		$	(1,899	)	$	—		$	—		$	—

Corporate
Fair value	$	190,470		$	2,245		$	192,715		$	35,969		$	960		$	36,929
Cost or amortized cost	198,250			2,477			200,727			36,162			993			37,155
Unrealized Loss	$	(7,780	)	$	(232	)	$	(8,012	)	$	(193	)	$	(33	)	$	(226	)

Municipal
Fair value	$	309,407		$	943		$	310,350		$	35,064		$	—		$	35,064
Cost or amortized cost	322,095			949			323,044			35,221			—			35,221
Unrealized Loss	$	(12,688	)	$	(6	)	$	(12,694	)	$	(157	)	$	—		$	(157	)

Subtotal, fixed income
Fair value	$	679,860		$	3,188		$	683,048		$	71,800		$	960		$	72,760
Cost or amortized cost	708,280			3,426			711,706			72,150			993			73,143
Unrealized Loss	$	(28,420	)	$	(238	)	$	(28,658	)	$	(350	)	$	(33	)	$	(383	)

Equity securities
Fair value	$	2,394		$	—		$	2,394		$	16,207		$	—		$	16,207
Cost or amortized cost	2,669			—			2,669			17,082			—			17,082
Unrealized Loss	$	(275	)	$	—		$	(275	)	$	(875	)	$	—		$	(875	)

Total
Fair value	$	682,254		$	3,188		$	685,442		$	88,007		$	960		$	88,967
Cost or amortized cost	710,949			3,426			714,375			89,232			993			90,225
Unrealized Loss	$	(28,695	)	$	(238	)	$	(28,933	)	$	(1,225	)	$	(33	)	$	(1,258	)

*Asset-backed & commercial mortgage-backed

- Definition

Tabular disclosure of the realized and unrealized gains and losses reported in the statement of income which have resulted from the sale and holding of marketable securities, respectively, as well as the sale or disposal of cost method investments. Such amounts would include realized gains and losses on the sale or disposal of trading, available-for-sale, and held-to-maturity securities, unrealized gains and losses on trading securities, unrealized gains and losses on available-for-sale and held-to-maturity securities transferred to the trading securities category, realized gains and losses on the sale or disposal of cost method investments, and losses recognized for other than temporary impairments (OTTI) of such investments.

+ References+ Details

- Definition

Tabular disclosure of investment income, including, but not limited to, interest and dividend income and amortization of discount (premium) derived from debt and equity securities. Excludes realized and unrealized gain (loss) on investments.

+ References+ Details