INVESTMENTS (Tables)

9 Months Ended

Sep. 30, 2014

INVESTMENTS

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

	September 30,  2014						December 31,  2013
(in thousands)	< 12 Mos.		12 Mos. &  Greater		Total		< 12 Mos.		12 Mos. &  Greater		Total
U.S. Government
Fair value	$	18,556	$	—	$	18,556	$	—	$	—	$	—
Cost or amortized cost		18,595		—		18,595		—		—		—
Unrealized Loss	$	(39)	$	—	$	(39)	$	—	$	—	$	—
U.S. Agency
Fair value	$	1,871	$	—	$	1,871	$	5,760	$	—	$	5,760
Cost or amortized cost		1,885		—		1,885		5,997		—		5,997
Unrealized Loss	$	(14)	$	—	$	(14)	$	(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	$	27,741	$	70,754	$	98,495	$	118,283	$	—	$	118,283
Cost or amortized cost		27,848		73,223		101,071		124,034		—		124,034
Unrealized Loss	$	(107)	$	(2,469)	$	(2,576)	$	(5,751)	$	—	$	(5,751)
ABS/CMBS*
Fair value	$	46,758	$	19,100	$	65,858	$	54,115	$	—	$	54,115
Cost or amortized cost		47,038		19,538		66,576		56,014		—		56,014
Unrealized Loss	$	(280)	$	(438)	$	(718)	$	(1,899)	$	—	$	(1,899)
Corporate
Fair value	$	157,718	$	22,591	$	180,309	$	190,470	$	2,245	$	192,715
Cost or amortized cost		159,729		23,183		182,912		198,250		2,477		200,727
Unrealized Loss	$	(2,011)	$	(592)	$	(2,603)	$	(7,780)	$	(232)	$	(8,012)
Municipal
Fair value	$	30,321	$	49,615	$	79,936	$	309,407	$	943	$	310,350
Cost or amortized cost		30,378		50,203		80,581		322,095		949		323,044
Unrealized Loss	$	(57)	$	(588)	$	(645)	$	(12,688)	$	(6)	$	(12,694)
Subtotal, fixed income
Fair value	$	282,965	$	162,060	$	445,025	$	679,860	$	3,188	$	683,048
Cost or amortized cost		285,473		166,147		451,620		708,280		3,426		711,706
Unrealized Loss	$	(2,508)	$	(4,087)	$	(6,595)	$	(28,420)	$	(238)	$	(28,658)
Equity securities
Fair value	$	11,635	$	—	$	11,635	$	2,394	$	—	$	2,394
Cost or amortized cost		12,105		—		12,105		2,669		—		2,669
Unrealized Loss	$	(470)	$	—	$	(470)	$	(275)	$	—	$	(275)
Total
Fair value	$	294,600	$	162,060	$	456,660	$	682,254	$	3,188	$	685,442
Cost or amortized cost		297,578		166,147		463,725		710,949		3,426		714,375
Unrealized Loss	$	(2,978)	$	(4,087)	$	(7,065)	$	(28,695)	$	(238)	$	(28,933)

* Asset-backed and 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	$	354,379	$	349,481	$	(4,898)	74.3	%
2	BBB	Baa		37,566		37,081		(485)	7.4	%
3	BB	Ba		35,807		35,139		(668)	10.1	%
4	B	B		22,598		22,120		(478)	7.2	%
5	CCC orlower	Caa or lower		1,270		1,204		(66)	1.0	%
6				—		—		—	—
		Total	$	451,620	$	445,025	$	(6,595)	100.0	%

Available for sale securities

INVESTMENTS

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

Available-for-sale
(in thousands)
	9/30/2014
	Cost or		Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
Asset Class	Cost		Gains		Losses		Value
U.S. agency	$	6,383	$	147	$	(14)	$	6,516
Corporate		563,120		23,639		(2,603)		584,156
Mtge/ABS/CMBS*		392,687		9,627		(3,294)		399,020
Non-U.S. govt. & agency		9,861		696		-		10,557
U.S. government		32,082		120		(39)		32,163
Municipal		498,371		15,392		(645)		513,118
Total Fixed Income	$	1,502,504	$	49,621	$	(6,595)	$	1,545,530
Equity	$	214,239	$	205,253	$	(470)	$	419,022
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 contractual maturity of securities

	9/30/2014
AFS	Amortized		Fair
(in thousands)	Cost		Value
Due in one year or less	$	17,680	$	17,855
Due after one year through five years		242,863		253,882
Due after five years through 10 years		594,841		612,167
Due after 10 years		254,433		262,606
Mtge/ABS/CMBS*		392,687		399,020
Total available-for-sale	$	1,502,504	$	1,545,530

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