Investments and Fair values (Tables)

12 Months Ended

May 31, 2014

Investments And Fair Values Tables

Investments by security type classified as available-for-sale and carried at fair value

The Company held the following investments, by security type, that were classified as available-for-sale and carried at fair value at May 31, 2014:

	Amortized   Cost			Gross Unrealized Gains			Gross Unrealized Losses			Fair Value
State and municipal securities	$	2,793,365		$	45,878		$	25,204		$	2,814,039
Equity securities		817,452			53,636			22,414			848,674
Derivatives		(27,084	)		(5,219	)		(89	)		(32,214	)
Mortgage Backed Securities		3,398,913			97,190			5,036			3,491,067
	$	6,982,646		$	191,485		$	52,565		$	7,121,566

The Company held the following investments, by security type, that have been classified as available-for-sale and carried at fair value at May 31, 2013:

	Amortized   Cost			Gross Unrealized Gains			Gross Unrealized Losses			Fair Value
State and municipal securities	$	1,760,341		$	5,293		$	36,627		$	1,729,007
Equity securities		474,311			52,190			21,979			504,522
Derivatives		(18,603	)		(31,442	)		(162	)		(49,883	)
Foreign Obligations		200,750			—			6,913			193,837
Mortgage Backed Securities		3,413,161			145,390			9,279			3,549,272
	$	5,829,960		$	171,431		$	74,636		$	5,926,755

Assets measured at fair value on a recurring basis

Assets measured at fair value on a recurring basis are summarized below:

	May 31, 2014
		Fair Value Measurements Using
		Level 1		Level 2		Level 3		Assets At Fair Value
Assets:
Fixed income securities at fair value	$	—	$	6,305,106	$	—	$	6,305,106
Equity securities at fair value (includes derivatives)		816,460		—		—		816,460
Short-term investments at fair value		2,038,614		—		—		2,038,614
Total Assets	$	2,855,074	$	6,305,106	$	—	$	9,160,180

	May 31, 2013
		Fair Value Measurements Using
		Level 1		Level 2		Level 3		Assets At Fair Value
Assets:
Fixed income securities at fair value	$	—	$	5,472,116	$	—	$	5,472,116
Equity securities at fair value (includes derivatives)		454,639		—		—		454,639
Short-term investments at fair value		1,255,234		—		—		1,255,234
Total Assets	$	1,709,873	$	5,472,116	$	—	$	7,181,989

Principal repayments and mortgage-backed securities

Principal repayments on U.S. government agency mortgage-backed securities held by the Company as of May 31, 2014 are estimated as follows:

	Amortized   Cost		Fair Market Value
Due in one year or less	$	863,666	$	887,464
Due after one year through five years		1,277,857		1,323,043
Due after five years through ten years		903,255		925,697
Due after ten years		354,135		354,863
	$	3,398,913	$	3,491,067

Schedule of analysis of net investment income Table Text Block

An analysis of net investment income follows:

	2014		2013
Bonds – fixed maturities	$	102,480	$	85,761
Mortgage-backed securities		97,135		117,696
Equity investments		14,569		15,929
Short-term investments		103		88
Other investment income		50,398		20,175
Total investment income		264,685		239,649
Investment expense		38,493		9,276
Net investment income	$	226,192	$	230,373

Schedule of changes in unrealized appreciation of investments Table Text Block

The unrealized appreciation (depreciation) of investments were as follows:

	2014			2013
Bonds-fixed maturities	$	58,921		$	(58,185	)
Mortgage-backed securities		(43,958	)		(47,164	)
Equity securities		27,161			33,776
Increase (decrease) in unrealized appreciation	$	42,124		$	(71,573	)

Realized Gain (Loss) on Investments

Gains and losses are calculated based on sales proceeds received less the cost of the security sold, which is determined by specific identification for each investment. The gross gains and gross losses realized on available-for-sale securities were as follows:

	Gross Proceeds		Gross Realized Gains		Gross Realized Losses
2014
Bonds-fixed maturities	$	1,158,222	$	—	$	(57,091	)
Mortgage-backed securities		382,804		533		(9,404	)
Equity securities		509,560		21,567		(5,155	)
Derivatives (equity securities)		91,403		29,710		(25,366	)
Total	$	2,141,989	$	51,810	$	(97,016	)
2013
Bonds-fixed maturities	$	1,487,611	$	22,940	$	(7,512	)
Mortgage-backed securities		28,581		—		(1,627	)
Equity securities		381,580		14,833		(5,054	)
Derivatives (equity securities)		72,967		27,695		(8,036	)
Total	$	1,970,739	$	65,468	$	(22,229	)

Unrealized Gain (Loss) on Investments

The following table summarizes the gross unrealized losses and fair value on investment securities aggregated by major investment category and length of time that individual securities have been in a continuous loss position at May 31, 2014 and May 31, 2013.

	Less than 12 Months				12 Months or More				Total
	Cost (a)		Unrealized Losses		Cost (a)		Unrealized Losses		Fair Value		Unrealized Losses
2014
Equity securities	$	278,689	$	13,171	$	37,209	$	9,243	$	293,484	$	22,414
Bonds- Fixed Maturities		413,440		6,075		759,956		19,129		1,148,191		25,204
Mortgage-backed securities		313,082		1,951		319,102		3,085		627,148		5,036
Total	$	1,005,211	$	21,197	$	1,116,267	$	31,457	$	2,068,823	$	52,654
2013
Equity securities	$	71,398	$	1,665	$	89,751	$	20,314	$	139,171	$	21,979
Bonds- Fixed Maturities		856,467		20,752		836,301		22,788		1,649,229		43,540
Mortgage-backed securities		488,878		5,440		142,854		3,838		622,454		9,278
Total	$	1,416,743	$	27,857	$	1,068,906	$	46,940	$	2,410,854	$	74,797

(a) For bonds-fixed maturities and mortgage-backed securities, represents amortized costs.