Investments (Tables)

9 Months Ended

Sep. 30, 2011

Investments, Debt and Equity Securities [Abstract]

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

The amortized cost, gross unrealized gains and losses and fair value of the investment portfolio at September 30, 2011 and December 31, 2010 are shown below.

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
September 30, 2011	Cost		Gains		Losses (1)			Value
	(In thousands)
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	744,560	$	32,365	$	(671	)	$	776,254
Obligations of U.S. states and political subdivisions		2,888,541		128,230		(17,139	)		2,999,632
Corporate debt securities		2,247,489		53,439		(7,822	)		2,293,106
Commercial mortgage-backed securities		194,795		1,859		(1,621	)		195,033
Residential mortgage-backed securities		47,182		2,653		-			49,835
Debt securities issued by foreign sovereign governments		133,250		8,415		(4	)		141,661
Total debt securities	$	6,255,817	$	226,961	$	(27,257	)	$	6,455,521

Equity securities		2,624		76		(1	)		2,699

Total investment portfolio	$	6,258,441	$	227,037	$	(27,258	)	$	6,458,220

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
December 31, 2010	Cost		Gains		Losses (1)			Value
	(In thousands)

U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	1,092,890	$	16,718	$	(6,822	)	$	1,102,786
Obligations of U.S. states and political subdivisions		3,549,355		85,085		(54,374	)		3,580,066
Corporate debt securities		2,521,275		54,975		(11,291	)		2,564,959
Residential mortgage-backed securities		53,845		3,255		-			57,100
Debt securities issued by foreign sovereign governments		149,443		1,915		(1,031	)		150,327
Total debt securities	$	7,366,808	$	161,948	$	(73,518	)	$	7,455,238

Equity securities		3,049		40		(45	)		3,044

Total investment portfolio	$	7,369,857	$	161,988	$	(73,563	)	$	7,458,282

(1) At September 30, 2011 and December 31, 2010, there were no other-than-temporary impairment losses recorded in other comprehensive income.

Amortized cost and fair values of debt securities by contractual maturity

	Amortized		Fair
September 30, 2011	Cost		Value
	(In thousands)

Due in one year or less	$	1,113,140	$	1,118,319
Due after one year through five years		2,659,868		2,739,392
Due after five years through ten years		905,459		975,609
Due after ten years		1,035,075		1,091,339
	$	5,713,542	$	5,924,659

Commercial mortgage-backed securities		194,795		195,033
Residential mortgage-backed securities		47,182		49,835
Auction rate securities (1)		300,298		285,994

Total at September 30, 2011	$	6,255,817	$	6,455,521

(1) At September 30, 2011, approximately 97% of auction rate securities had a contractual maturity greater than 10 years.

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
	Fair			Unrealized			Fair			Unrealized			Fair			Unrealized
September 30, 2011	Value			Losses			Value			Losses			Value			Losses
	(In thousands)
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	72,954		$	671		$	-		$	-		$	72,954		$	671
Obligations of U.S. states and political subdivisions			222,494			2,635			260,374			14,504			482,868			17,139
Corporate debt securities			694,931			6,901			24,564			921			719,495			7,822
Commercial mortgage-backed securities			77,131			1,621			-			-			77,131			1,621
Residential mortgage-backed securities			-			-			-			-			-			-
Debt issued by foreign sovereign governments			376			4			-			-			376			4
Equity securities			58			1			-			-			58			1
Total investment portfolio		$	1,067,944		$	11,833		$	284,938		$	15,425		$	1,352,882		$	27,258

	Less Than 12 Months						12 Months or Greater						Total
	Fair			Unrealized			Fair			Unrealized			Fair			Unrealized
December 31, 2010	Value			Losses			Value			Losses			Value			Losses
	(In thousands)
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	258,235		$	6,822		$	-		$	-		$	258,235		$	6,822
Obligations of U.S. states and political subdivisions			1,160,877			32,415			359,629			21,959			1,520,506			54,374
Corporate debt securities			817,471			9,921			28,630			1,370			846,101			11,291
Residential mortgage-backed securities			-			-			-			-			-			-
Debt issued by foreign sovereign governments			105,724			1,031			-			-			105,724			1,031
Equity securities			2,723			45			-			-			2,723			45
Total investment portfolio		$	2,345,030		$	50,234		$	388,259		$	23,329		$	2,733,289		$	73,563

Rollforward of the amount related to credit losses recognized in earnings for which a portion of an OTTI was recognized in accumulated other comprehensive income (loss)

The following table provides a rollforward of the amount related to credit losses recognized in earnings for which a portion of an OTTI was recognized in accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2010.

	Three Months		Nine Months
	Ended		Ended
	September 30, 2010
	(In thousands)

Beginning balance	$	-	$	1,021
Addition for the amount related to the credit loss for which an OTTI was not previously recognized		-		-
Additional increases to the amount related to the credit loss for which an OTTI was previously recognized		-		-
Reductions for securities sold during the period (realized)		-		(1,021	)
Ending balance	$	-	$	-

Net realized investment gains (losses) and OTTI on the investment portfolio, investment type

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

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2011		2010		2011		2010
	(In thousands)
Net realized investment gains (losses) and OTTI on investments:
Fixed maturities		$	10,263	$	24,503	$	37,741	$	82,819
Equity securities			12		15		51		72
Other			877		6		855		237

		$	11,152	$	24,524	$	38,647	$	83,128

Net realized investment gains (losses) and OTTI on the investment portfolio, sales/impairments

		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2011			2010			2011			2010
	(In thousands)
Net realized investment gains (losses) and OTTI on investments:
Gains on sales		$	12,007		$	26,305		$	43,952		$	98,893
Losses on sales			(602	)		(1,781	)		(5,052	)		(9,713	)
Impairment losses			(253	)		-			(253	)		(6,052	)

		$	11,152		$	24,524		$	38,647		$	83,128

- Definition

Tabular disclosure of the amount of other than temporary impairment (OTTI) related to credit losses recognized in earnings including: (a) the beginning balance of the amount related to credit losses on debt securities held by the investor at the beginning of the period for which a portion of an OTTI was recognized in other comprehensive income; (b) additions for the amount related to the credit loss for which an OTTI was not previously recognized; (c) reductions for securities sold during the period (realized); (d) reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the investor intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis; (e) additional increases to the amount related to the credit loss for which an OTTI was previously recognized when the investor does not intend to sell the security and it is not more likely than not that the investor will be required to sell the security before recovery of its amortized cost basis; (f) reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security; and (g) the ending balance of the amount related to credit losses on debt securities held by the entity at the end of the period for which a portion of an OTTI was recognized in other comprehensive income.

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