Fair value measurements (Tables)

9 Months Ended

Sep. 30, 2011

Fair value measurements for items measured at fair value

Fair value measurements for assets measured at fair value included the following as of September 30, 2011 and December 31, 2010:

	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
September 30, 2011

U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	776,254	$	776,254	$	-	$	-
Obligations of U.S. states and political subdivisions		2,999,632		-		2,778,425		221,207
Corporate debt securities		2,293,106		2,476		2,220,340		70,290
Commercial mortgage-backed securities		195,033		-		195,033		-
Residential mortgage-backed securities		49,835		-		49,835		-
Debt securities issued by foreign sovereign governments		141,661		132,382		9,279		-
Total debt securities		6,455,521		911,112		5,252,912		291,497
Equity securities		2,699		2,378		-		321
Total investments	$	6,458,220	$	913,490	$	5,252,912	$	291,818

Real estate acquired (1)	$	2,324	$	-	$	-	$	2,324

December 31, 2010

U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	1,102,786	$	1,102,786	$	-	$	-
Obligations of U.S. states and political subdivisions		3,580,066		-		3,284,376		295,690
Corporate debt securities		2,564,959		2,563		2,492,343		70,053
Residential mortgage-backed securities		57,100		-		57,100		-
Debt securities issued by foreign sovereign governments		150,327		135,457		14,870		-
Total debt securities		7,455,238		1,240,806		5,848,689		365,743
Equity securities		3,044		2,723		-		321
Total investments	$	7,458,282	$	1,243,529	$	5,848,689	$	366,064

Real estate acquired (1)	$	6,220	$	-	$	-	$	6,220

(1) Real estate acquired through claim settlement, which is held for sale, is reported in Other Assets on the consolidated balance sheet.

Reconciliation of beginning and ending balance for assets measured at fair value with significant unobservable inputs (level 3)

For assets measured at fair value using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances for the three and nine months ended September 30, 2011 and 2010 is as follows:

	Obligations of U.S. States and Political Subdivisions			Corporate Debt Securities			Equity Securities		Total Investments			Real Estate Acquired
	(In thousands)
Balance at June 30, 2011	$	223,402		$	70,039		$	321	$	293,762		$	2,828
Total realized/unrealized gains (losses):
Included in earnings and reported as net impairment losses recognized in earnings		-			(200	)		-		(200	)		-

Included in earnings and reported as losses incurred, net		-			-			-		-			(85	)

Included in other comprehensive income		342			451			-		793			-

Purchases		-			-			-		-			1,148
Sales		(2,537	)		-			-		(2,537	)		(1,567	)
Transfers into Level 3		-			-			-		-			-
Transfers out of Level 3		-			-			-		-			-
Balance at September 30, 2011	$	221,207		$	70,290		$	321	$	291,818		$	2,324

Amount of total losses included in earnings for the three months ended September 30, 2011 attributable to the change in unrealized losses on assets still held at September 30, 2011	$	-		$	-		$	-	$	-		$	-

	Obligations of U.S. States and Political Subdivisions			Corporate Debt Securities			Equity Securities		Total Investments			Real Estate Acquired
	(In thousands)
Balance at December 31, 2010	$	295,690		$	70,053		$	321	$	366,064		$	6,220
Total realized/unrealized gains (losses):
Included in earnings and reported as net impairment losses recognized in earnings		-			(200	)		-		(200	)		-

Included in earnings and reported as losses incurred, net		-			-			-		-			(180	)

Included in other comprehensive income		(845	)		437			-		(408	)		-

Purchases		-			-			-		-			3,944
Sales		(73,638	)		-			-		(73,638	)		(7,660	)
Transfers into Level 3		-			-			-		-			-
Transfers out of Level 3		-			-			-		-			-
Balance at September 30, 2011	$	221,207		$	70,290		$	321	$	291,818		$	2,324

Amount of total losses included in earnings for the nine months ended September 30, 2011 attributable to the change in unrealized losses on assets still held at September 30, 2011	$	-		$	-		$	-	$	-		$	-

	Obligations of U.S. States and Political Subdivisions			Corporate Debt Securities			Equity Securities		Total Investments			Real Estate Acquired
	(In thousands)
Balance at June 30, 2010	$	321,050		$	94,564		$	321	$	415,935		$	5,671
Total realized/unrealized gains (losses):
Included in earnings and reported as realized investment losses, net		-			(1,057	)		-		(1,057	)		-

Included in earnings and reported as losses incurred, net		-			-			-		-			(701	)

Included in other comprehensive income		3,504			2,528			-		6,032			-

Purchases, issuances and settlements		(12,858	)		(15,793	)		-		(28,651	)		1,893
Transfers in and/or out of Level 3		-			-			-		-			-
Balance at September 30, 2010	$	311,696		$	80,242		$	321	$	392,259		$	6,863

Amount of total losses included in earnings for the three months ended September 30, 2010 attributable to the change in unrealized losses on assets still held at September 30, 2010	$	-		$	-		$	-	$	-		$	-

	Obligations of U.S. States and Political Subdivisions			Corporate Debt Securities			Equity Securities		Total Investments			Real Estate Acquired
	(In thousands)
Balance at December 31, 2009	$	370,341		$	129,338		$	321	$	500,000		$	3,830
Total realized/unrealized gains (losses):
Included in earnings and reported as realized investment losses, net		-			(2,455	)		-		(2,455	)		-

Included in earnings and reported as losses incurred, net		-			-			-		-			(1,635	)

Included in other comprehensive income		3,547			2,854			-		6,401			-

Purchases, issuances and settlements		(62,192	)		(49,495	)		-		(111,687	)		4,668
Transfers in and/or out of Level 3		-			-			-		-			-
Balance at September 30, 2010	$	311,696		$	80,242		$	321	$	392,259		$	6,863

Amount of total losses included in earnings for the nine months ended September 30, 2010 attributable to the change in unrealized losses on assets still held at September 30, 2010	$	-		$	-		$	-	$	-		$	-

- Definition

Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References+ Details

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income, and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issuances, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References+ Details