INVESTMENTS (Tables) - 10K

12 Months Ended

Dec. 31, 2014

Dec. 31, 2013


NET INVESTMENT INCOME
(in thousands)	2014		2013		2012
Interest on fixed income securities	$	48,757	$	45,870	$	50,646
Dividends on equity securities		11,962		11,865		12,848
Interest on cash and short-term investments		7		23		15
Gross investment income		60,726		57,758		63,509
Less investment expenses		(5,118)		(4,995)		(4,678)
Net investment income	$	55,608	$	52,763	$	58,831

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


REALIZED/UNREALIZED GAINS
(in thousands)	2014		2013		2012
Net realized investment gains (losses):
Fixed income:
Available-for-sale	$	3,955	$	1,338	$	12,965
Available-for-sale OTTI		—		—		—
Held-to-maturity		4		9		247
Trading		—		—		—
Equity securities		29,468		21,533		16,245
Equity securities OTTI		—		—		(1,156)
Other		(1,245)		(844)		(2,929)
Total	$	32,182	$	22,036	$	25,372

Net changes in unrealized gains(losses) on investments:
Fixed income:
Available-for-sale	$	37,880	$	(75,228)	$	23,643
Equity securities		17,300		64,305		16,212
Total	$	55,180	$	(10,923)	$	39,855
Net realized investment gains (losses) and changes in unrealized gains (losses) on investments	$	87,362	$	11,113	$	65,227

Schedule of disposition of fixed maturities and equities


							Net
SALES	Proceeds		Gross Realized				Realized
(in thousands)	From Sales		Gains		Losses		Gain (Loss)
2014
Available-for-sale	$	342,308	$	7,208	$	(3,664)	$	3,544
Held-to-maturity		654		4		—		4
Trading		—		—		—		—
Equities		72,869		29,794		(326)		29,468
2013
Available-for-sale	$	173,694	$	3,561	$	(2,597)	$	964
Held-to-maturity		—		—		—		—
Trading		—		—		—		—
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


							Net
CALLS/MATURITIES			Gross Realized				Realized
(in thousands)	Proceeds		Gains		Losses		Gain (Loss)
2014
Available-for-sale	$	101,517	$	414	$	(3)	$	411
Held-to-maturity		—		—		—		—
Trading		—		—		—		—
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		—		—		—		—

Schedule of assets measured at fair value on recurring basis

Assets measured at fair value on a recurring basis as of December 31, 2014, 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
Available-for-sale securities:
U.S. agency	$	—	$	6,747	$	—	$	6,747
Corporate		—		562,690		—		562,690
Agency MBS		—		264,468		—		264,468
ABS/CMBS*		—		135,304		—		135,304
Non-U.S. govt. & agency		—		10,665		—		10,665
U.S. government		—		33,788		—		33,788
Municipal		—		481,425		—		481,425
Equity		410,642		—		—		410,642
Total available-for-sale securities	$	410,642	$	1,495,087	$	—	$	1,905,729

*Non-agency asset-backed & commercial mortgage-backed

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
Available-for-sale securities:
U.S. agency	$	—	$	10,298	$	—	$	10,298
Corporate		—		526,038		—		526,038
Agency MBS		—		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

*Non-agency asset-backed & commercial mortgage-backed

Schedule of contractual maturity of securities

The amortized cost and estimated fair value of fixed income securities at December 31, 2014, by contractual maturity, are shown as follows:


(in thousands)	Amortized Cost		Fair Value
Available-for-sale
Due in one year or less	$	19,147	$	19,368
Due after one year through five years		219,567		229,146
Due after five years through 10 years		570,196		587,807
Due after 10 years		248,956		258,994
Mtge/ABS/CMBS*		390,338		399,772
Total available-for-sale	$	1,448,204	$	1,495,087

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

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

2014	Amortized				Gross Unrealized
(in thousands)	Cost		Fair Value		Gains		Losses
Available-for-sale:
U.S. government	$	33,668	$	33,788	$	131	$	(11)
U.S. agency		6,385		6,747		362		—
Non-U.S. govt. & agency		9,862		10,665		803		—
Mtge/ABS/CMBS*		390,337		399,772		11,222		(1,787)
Corporate		543,183		562,690		23,697		(4,190)
Municipal		464,769		481,425		16,789		(133)
Total fixed income	$	1,448,204	$	1,495,087	$	53,004	$	(6,121)
Equity securities		193,535		410,642		218,105		(998)
Total available-for-sale	$	1,641,739	$	1,905,729	$	271,109	$	(7,119)

Held-to-maturity:
Municipal	$	—	$	—	$	—	$	—
Total held-to-maturity	$	—	$	—	$	—	$	—

Trading**	$	—	$	—	$	—	$	—
Total	$	1,641,739	$	1,905,729	$	271,109	$	(7,119)

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

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

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:
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

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


	December 31, 2014						December 31, 2013
			12 Mos.						12 Mos. &
(in thousands)	< 12 Mos.		& Greater		Total		< 12 Mos.		Greater		Total
U.S. Government
Fair value	$	4,416	$	—	$	4,416	$	—	$	—	$	—
Cost or amortized cost		4,427		—		4,427		—		—		—
Unrealized Loss	$	(11)	$	—	$	(11)	$	—	$	—	$	—

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)

Agency MBS
Fair value	$	12,840	$	61,534	$	74,374	$	118,283	$	—	$	118,283
Cost or amortized cost		12,947		62,803		75,750		124,034		—		124,034
Unrealized Loss	$	(107)	$	(1,269)	$	(1,376)	$	(5,751)	$	—	$	(5,751)

ABS/CMBS*
Fair value	$	63,782	$	11,616	$	75,398	$	54,115	$	—	$	54,115
Cost or amortized cost		64,084		11,725		75,809		56,014		—		56,014
Unrealized Loss	$	(302)	$	(109)	$	(411)	$	(1,899)	$	—	$	(1,899)

Corporate
Fair value	$	123,617	$	14,488	$	138,105	$	190,470	$	2,245	$	192,715
Cost or amortized cost		127,634		14,661		142,295		198,250		2,477		200,727
Unrealized Loss	$	(4,017)	$	(173)	$	(4,190)	$	(7,780)	$	(232)	$	(8,012)

Municipal
Fair value	$	12,382	$	19,019	$	31,401	$	309,407	$	943	$	310,350
Cost or amortized cost		12,411		19,123		31,534		322,095		949		323,044
Unrealized Loss	$	(29)	$	(104)	$	(133)	$	(12,688)	$	(6)	$	(12,694)

Subtotal, fixed income
Fair value	$	217,037	$	106,657	$	323,694	$	679,860	$	3,188	$	683,048
Cost or amortized cost		221,503		108,312		329,815		708,280		3,426		711,706
Unrealized Loss	$	(4,466)	$	(1,655)	$	(6,121)	$	(28,420)	$	(238)	$	(28,658)

Equity securities
Fair value	$	10,837	$	—	$	10,837	$	2,394	$	—	$	2,394
Cost or amortized cost		11,835		—		11,835		2,669		—		2,669
Unrealized Loss	$	(998)	$	—	$	(998)	$	(275)	$	—	$	(275)

Total
Fair value	$	227,874	$	106,657	$	334,531	$	682,254	$	3,188	$	685,442
Cost or amortized cost		233,338		108,312		341,650		710,949		3,426		714,375
Unrealized Loss	$	(5,464)	$	(1,655)	$	(7,119)	$	(28,695)	$	(238)	$	(28,933)

*Non-agency 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.

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- 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.

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