Investments (Tables)

9 Months Ended

Sep. 30, 2015

Amortized cost, gross unrealized gains and losses and fair value of investments portfolio

The amortized cost, gross unrealized gains and losses and fair value of the investment portfolio at September 30, 2015 and December 31, 2014 are shown below.



September 30, 2015	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses (1)			Fair Value
	(In thousands)
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	104,419	$	2,287	$	(1,740	)	$	104,966
Obligations of U.S. states and political subdivisions	1,595,458		24,306		(7,243		)	1,612,521
Corporate debt securities	2,142,500		7,722		(29,650		)	2,120,572
Asset-backed securities	132,271		346		(80		)	132,537
Residential mortgage-backed securities	278,737		275		(7,541		)	271,471
Commercial mortgage-backed securities	253,143		1,048		(1,504		)	252,687
Collateralized loan obligations	61,342		—		(1,056		)	60,286
Debt securities issued by foreign sovereign governments	30,477		2,876		(62		)	33,291
Total debt securities	4,598,347		38,860		(48,876		)	4,588,331
Equity securities	5,595		52		(13		)	5,634

Total investment portfolio	$	4,603,942	$	38,912	$	(48,889	)	$	4,593,965



December 31, 2014	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses (1)			Fair Value
	(In thousands)
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	349,153	$	2,752	$	(5,130	)	$	346,775
Obligations of U.S. states and political subdivisions	844,942		12,961		(2,761		)	855,142
Corporate debt securities	2,418,991		16,325		(10,035		)	2,425,281
Asset-backed securities	286,260		535		(140		)	286,655
Residential mortgage-backed securities	329,983		254		(9,000		)	321,237
Commercial mortgage-backed securities	276,215		1,221		(2,158		)	275,278
Collateralized loan obligations	61,340		—		(1,264		)	60,076
Debt securities issued by foreign sovereign governments	35,630		3,540		—			39,170
Total debt securities	4,602,514		37,588		(30,488		)	4,609,614
Equity securities	3,003		61		(9		)	3,055

Total investment portfolio	$	4,605,517	$	37,649	$	(30,497	)	$	4,612,669


(1)	At September 30, 2015 and December 31, 2014, there were no other-than-temporary impairment losses recorded in other comprehensive income.

Amortized cost and fair values of debt securities by contractual maturity

The amortized cost and fair values of debt securities at September 30, 2015, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Because most asset-backed and mortgage-backed securities and collateralized loan obligations provide for periodic payments throughout their lives, they are listed below in separate categories.



September 30, 2015	Amortized Cost		Fair Value
	(In thousands)
Due in one year or less	$	191,371	$	192,007
Due after one year through five years	1,611,819		1,622,178
Due after five years through ten years	1,130,625		1,113,217
Due after ten years	939,039		943,948

	$	3,872,854	$	3,871,350

Asset-backed securities	132,271		132,537
Residential mortgage-backed securities	278,737		271,471
Commercial mortgage-backed securities	253,143		252,687
Collateralized loan obligations	61,342		60,286

Total at September 30, 2015	$	4,598,347	$	4,588,331

Aging of the fair values of securities in an unrealized loss position

For those securities in an unrealized loss position, the length of time the securities were in such a position, as measured by their month-end fair values, is as follows:



	Less Than 12 Months				12 Months or Greater				Total
September 30, 2015	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	25,781	$	295	$	15,534	$	1,445	$	41,315	$	1,740
Obligations of U.S. states and political subdivisions	231,647		6,626		43,865		617		275,512		7,243
Corporate debt securities	1,045,477		27,190		140,995		2,460		1,186,472		29,650
Asset-backed securities	36,920		64		5,567		16		42,487		80
Residential mortgage-backed securities	39,870		414		201,435		7,127		241,305		7,541
Commercial mortgage-backed securities	74,403		698		79,411		806		153,814		1,504
Collateralized loan obligations	—		—		60,286		1,056		60,286		1,056
Foreign government securities	2,177		62		—		—		2,177		62
Equity securities	319		4		173		9		492		13

Total	$	1,456,594	$	35,353	$	547,266	$	13,536	$	2,003,860	$	48,889



	Less Than 12 Months				12 Months or Greater				Total
December 31, 2014	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	58,166	$	138	$	232,351	$	4,992	$	290,517	$	5,130
Obligations of U.S. states and political subdivisions	166,408		1,066		114,465		1,695		280,873		2,761
Corporate debt securities	816,555		5,259		243,208		4,776		1,059,763		10,035
Asset-backed securities	54,491		80		11,895		60		66,386		140
Residential mortgage-backed securities	24,168		34		263,002		8,966		287,170		9,000
Commercial mortgage-backed securities	89,301		810		110,652		1,348		199,953		2,158
Collateralized loan obligations	—		—		60,076		1,264		60,076		1,264
Equity securities	167		1		235		8		402		9

Total	$	1,209,256	$	7,388	$	1,035,884	$	23,109	$	2,245,140	$	30,497

Net realized investment gains (losses) and OTTI on investments

The net realized investment gains (losses) on the investment portfolio are as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
	(In thousands)

Realized investment gains (losses) on investments:
Fixed maturities	$	638	$	629	$	27,123	$	755
Equity securities	2		3		10		168
Net realized investment gains	$	640	$	632	$	27,133	$	923



	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
	(In thousands)

Realized investment gains (losses) on investments:
Gains on sales	$	720		$	1,161		$	28,711		$	3,273
Losses on sales	(80		)	(529		)	(1,578		)	(2,350		)
Net realized investment gains	$	640		$	632		$	27,133		$	923