INVESTMENTS (Tables)

3 Months Ended

Mar. 31, 2014

INVESTMENTS

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

Available-for-sale

(in thousands)

	3/31/2014
	Cost or		Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
Asset Class	Cost		Gains		Losses			Value
U.S. agency	$	2,000	$	—	$	(3	)	$	1,997
Corporate	543,143		25,241		(2,803		)	565,581
Mtge/ABS/CMBS*	341,781		8,581		(5,408		)	344,954
Non-U.S. govt. & agency	13,852		736		—			14,588
U.S. government	18,205		190		—			18,395
Municipal	518,642		9,171		(6,046		)	521,767
Total Fixed Income	$	1,437,623	$	43,919	$	(14,260	)	$	1,467,282
Equity	$	220,292	$	206,744	$	(356	)	$	426,680

Available-for-sale

(in thousands)

	12/31/2013
	Cost or		Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
Asset Class	Cost		Gains		Losses			Value
U.S. agency	$	10,513	$	22	$	(237	)	$	10,298
Corporate	511,748		22,302		(8,012		)	526,038
Mtge/ABS/CMBS*	350,187		8,188		(7,650		)	350,725
Non-U.S. govt. & agency	13,306		437		(65		)	13,678
U.S. government	17,086		217		—			17,303
Municipal	528,209		6,495		(12,694		)	522,010
Total Fixed Income	$	1,431,049	$	37,661	$	(28,658	)	$	1,440,052
Equity	$	218,848	$	200,081	$	(275	)	$	418,654

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

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

	March 31, 2014									December 31, 2013
(in thousands)	< 12 Mos.			12 Mos. & Greater			Total			< 12 Mos.			12 Mos. & Greater			Total
U.S. Agency
Fair value	$	1,997		$	—		$	1,997		$	5,760		$	—		$	5,760
Cost or amortized cost	2,000			—			2,000			5,997			—			5,997
Unrealized Loss	$	(3	)	$	—		$	(3	)	$	(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	$	98,902		$	7,737		$	106,639		$	118,283		$	—		$	118,283
Cost or amortized cost	102,619			8,199			110,818			124,034			—			124,034
Unrealized Loss	$	(3,717	)	$	(462	)	$	(4,179	)	$	(5,751	)	$	—		$	(5,751	)
ABS/CMBS*
Fair value	$	33,089		$	7,668		$	40,757		$	54,115		$	—		$	54,115
Cost or amortized cost	33,777			8,209			41,986			56,014			—			56,014
Unrealized Loss	$	(688	)	$	(541	)	$	(1,229	)	$	(1,899	)	$	—		$	(1,899	)
Corporate
Fair value	$	159,687		$	—		$	159,687		$	190,470		$	2,245		$	192,715
Cost or amortized cost	162,490			—			162,490			198,250			2,477			200,727
Unrealized Loss	$	(2,803	)	$	—		$	(2,803	)	$	(7,780	)	$	(232	)	$	(8,012	)
Municipal
Fair value	$	249,856		$	—		$	249,856		$	309,407		$	943		$	310,350
Cost or amortized cost	255,902			—			255,902			322,095			949			323,044
Unrealized Loss	$	(6,046	)	$	—		$	(6,046	)	$	(12,688	)	$	(6	)	$	(12,694	)
Subtotal, fixed income
Fair value	$	543,531		$	15,405		$	558,936		$	679,860		$	3,188		$	683,048
Cost or amortized cost	556,788			16,408			573,196			708,280			3,426			711,706
Unrealized Loss	$	(13,257	)	$	(1,003	)	$	(14,260	)	$	(28,420	)	$	(238	)	$	(28,658	)
Equity securities
Fair value	$	3,275		$	2,472		$	5,747		$	2,394		$	—		$	2,394
Cost or amortized cost	3,434			2,669			6,103			2,669			—			2,669
Unrealized Loss	$	(159	)	$	(197	)	$	(356	)	$	(275	)	$	—		$	(275	)
Total
Fair value	$	546,806		$	17,877		$	564,683		$	682,254		$	3,188		$	685,442
Cost or amortized cost	560,222			19,077			579,299			710,949			3,426			714,375
Unrealized Loss	$	(13,416	)	$	(1,200	)	$	(14,616	)	$	(28,695	)	$	(238	)	$	(28,933	)

*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	$	521,155	$	507,536	$	(13,619	)	95.6	%
2	BBB	Baa	24,881		24,418		(463		)	3.2	%
3	BB	Ba	20,571		20,427		(144		)	1.0	%
4	B	B	6,589		6,555		(34		)	0.2	%
5	CCC or lower	Caa or lower	—		—		—			—
6			—		—		—			—
		Total	$	573,196	$	558,936	$	(14,260	)	100.0	%

Available-For-Sale Securities

INVESTMENTS

Schedule of contractual maturity of securities

	3/31/2014
AFS	Amortized		Fair
(in thousands)	Cost		Value
Due in one year or less	$	11,988	$	12,080
Due after one year through five years	176,091		184,885
Due after five years through 10 years	652,781		669,893
Due after 10 years	254,982		255,470
Mtge/ABS/CMBS*	341,781		344,954
Total available-for-sale	$	1,437,623	$	1,467,282

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