INVESTMENTS (Tables)

6 Months Ended

Jun. 30, 2014

INVESTMENTS

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

Available-for-sale

(in thousands)

	6/30/2014
	Cost or		Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
Asset Class	Cost		Gains		Losses			Value
U.S. agency	$	3,883	$	99	$	(1	)	$	3,981
Corporate	550,687		28,919		(797		)	578,809
Mtge/ABS/CMBS*	375,116		11,242		(2,918		)	383,440
Non-U.S. govt. & agency	13,853		1,064		—			14,917
U.S. government	31,571		168		(10		)	31,729
Municipal	510,516		13,111		(1,881		)	521,746
Total Fixed Income	$	1,485,626	$	54,603	$	(5,607	)	$	1,534,622
Equity	$	218,797	$	217,731	$	(66	)	$	436,462

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

	June 30, 2014									December 31, 2013
(in thousands)	< 12 Mos.			12 Mos. & Greater			Total			< 12 Mos.			12 Mos. & Greater			Total
U.S. Government
Fair value	$	4,423		$	—		$	4,423		$	—		$	—		$	—
Cost or amortized cost	4,433			—			4,433			—			—			—
Unrealized Loss	$	(10	)	$	—		$	(10	)	$	—		$	—		$	—
U.S. Agency
Fair value	$	1,883		$	—		$	1,883		$	5,760		$	—		$	5,760
Cost or amortized cost	1,884			—			1,884			5,997			—			5,997
Unrealized Loss	$	(1	)	$	—		$	(1	)	$	(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	$	7,349		$	79,004		$	86,353		$	118,283		$	—		$	118,283
Cost or amortized cost	7,392			81,396			88,788			124,034			—			124,034
Unrealized Loss	$	(43	)	$	(2,392	)	$	(2,435	)	$	(5,751	)	$	—		$	(5,751	)
ABS/CMBS*
Fair value	$	16,557		$	16,457		$	33,014		$	54,115		$	—		$	54,115
Cost or amortized cost	16,659			16,838			33,497			56,014			—			56,014
Unrealized Loss	$	(102	)	$	(381	)	$	(483	)	$	(1,899	)	$	—		$	(1,899	)
Corporate
Fair value	$	51,213		$	32,233		$	83,446		$	190,470		$	2,245		$	192,715
Cost or amortized cost	51,414			32,829			84,243			198,250			2,477			200,727
Unrealized Loss	$	(201	)	$	(596	)	$	(797	)	$	(7,780	)	$	(232	)	$	(8,012	)
Municipal
Fair value	$	22,079		$	117,639		$	139,718		$	309,407		$	943		$	310,350
Cost or amortized cost	22,132			119,467			141,599			322,095			949			323,044
Unrealized Loss	$	(53	)	$	(1,828	)	$	(1,881	)	$	(12,688	)	$	(6	)	$	(12,694	)
Subtotal, fixed income
Fair value	$	103,504		$	245,333		$	348,837		$	679,860		$	3,188		$	683,048
Cost or amortized cost	103,914			250,530			354,444			708,280			3,426			711,706
Unrealized Loss	$	(410	)	$	(5,197	)	$	(5,607	)	$	(28,420	)	$	(238	)	$	(28,658	)
Equity securities
Fair value	$	9,372		$	—		$	9,372		$	2,394		$	—		$	2,394
Cost or amortized cost	9,438			—			9,438			2,669			—			2,669
Unrealized Loss	$	(66	)	$	—		$	(66	)	$	(275	)	$	—		$	(275	)
Total
Fair value	$	112,876		$	245,333		$	358,209		$	682,254		$	3,188		$	685,442
Cost or amortized cost	113,352			250,530			363,882			710,949			3,426			714,375
Unrealized Loss	$	(476	)	$	(5,197	)	$	(5,673	)	$	(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	$	321,030	$	315,595	$	(5,435	)	96.9	%
2	BBB	Baa	9,251		9,226		(25		)	0.4	%
3	BB	Ba	15,137		15,048		(89		)	1.6	%
4	B	B	8,371		8,316		(55		)	1.0	%
5	CCC or lower	Caa or lower	655		652		(3		)	0.1	%
6			—		—		—			—
		Total	$	354,444	$	348,837	$	(5,607	)	100.0	%

Available-For-Sale Securities

INVESTMENTS

Schedule of contractual maturity of securities

	6/30/2014
AFS	Amortized		Fair
(in thousands)	Cost		Value
Due in one year or less	$	11,557	$	11,628
Due after one year through five years	211,437		221,664
Due after five years through 10 years	618,409		642,994
Due after 10 years	269,107		274,896
Mtge/ABS/CMBS*	375,116		383,440
Total available-for-sale	$	1,485,626	$	1,534,622

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