Investments (Tables)

12 Months Ended

Dec. 31, 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 December 31, 2011 and 2010 are shown below.

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
December 31, 2011:	Cost		Gains		Losses (1)			Value
	(In thousands)
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	592,108	$	4,965	$	(36	)	$	597,037
Obligations of U.S. states and political subdivisions		2,255,192		74,918		(6,639	)		2,323,471
Corporate debt securities		2,007,720		32,750		(7,619	)		2,032,851
Residential mortgage-backed securities		441,589		4,113		(285	)		445,417
Commercial mortgage-backed securities		257,530		7,404		-			264,934
Debt securities issued by foreign sovereign governments		146,755		10,441		(6	)		157,190
Total debt securities		5,700,894		134,591		(14,585	)		5,820,900
Equity securities		2,666		82		(1	)		2,747
Total investment portfolio	$	5,703,560	$	134,673	$	(14,586	)	$	5,823,647

			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) There were no other-than-temporary impairment losses recorded in other comprehensive income at December 31, 2011 and 2010.

Amortized cost and fair values of debt securities by contractual maturity

The amortized cost and fair values of debt securities at December 31, 2011, 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 auction rate and mortgage-backed securities provide for periodic payments throughout their lives, they are listed below in separate categories.

	Amortized		Fair
December 31, 2011	Cost		Value
	(In thousands)
Due in one year or less	$	1,238,386	$	1,240,917
Due after one year through five years		1,860,588		1,900,400
Due after five years through ten years		897,967		942,561
Due after ten years		828,573		856,774
		4,825,514		4,940,652
Residential mortgage-backed securities		441,589		445,417
Commercial mortgage-backed securities		257,530		264,934
Auction rate securities (1)		176,261		169,897
Total at December 31, 2011	$	5,700,894	$	5,820,900

(1) At December 31, 2011, 100% of auction rate securities had a contractual maturity greater than 10 years.

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

At December 31, 2011 and 2010, the investment portfolio had gross unrealized losses of $14.6 million and $73.6 million, respectively. 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
December 31, 2011	Value			Losses			Value			Losses			Value			Losses
	(In thousands)
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	78,546		$	36		$	-		$	-		$	78,546		$	36
Obligations of U.S. states and political subdivisions			188,879			837			137,965			5,802			326,844			6,639
Corporate debt securities			689,396			6,709			28,174			910			717,570			7,619
Residential mortgage- backed securities			120,405			285			-			-			120,405			285
Debt securities issued by foreign sovereign governments			484			6			-			-			484			6
Equity securities			-			-			33			1			33			1
Total investment portfolio		$	1,077,710		$	7,873		$	166,172		$	6,713		$	1,243,882		$	14,586

	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
Debt securities 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

Roll forward 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 loss was recognized in accumulated other comprehensive income (loss) for the years ended December 31, 2011 and 2010.

	2011		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 investment income

Net investment income is comprised of the following:

	2011			2010			2009
	(In thousands)
Fixed maturities	$	202,301		$	236,734		$	291,304
Equity securities		330			315			819
Cash equivalents		496			1,526			3,056
Interest on Sherman note		-			10,796			11,323
Other		926			1,081			1,389
Investment income		204,053			250,452			307,891
Investment expenses		(2,783	)		(3,199	)		(3,213	)
Net investment income	$	201,270		$	247,253		$	304,678

Net realized investment gains (losses), including impairment losses, and change in net unrealized appreciation (depreciation) of investments

The net realized investment gains (losses), including impairment losses, and change in net unrealized appreciation (depreciation) of investments are as follows:

	2011		2010			2009
	(In thousands)
Net realized investment gains (losses) on investments:
Fixed maturities	$	142,284	$	93,017		$	51,109
Equity securities		330		151			116
Joint ventures		-		(466	)		-
Other		101		235			709
	$	142,715	$	92,937		$	51,934
Change in net unrealized appreciation (depreciation):
Fixed maturities	$	31,576	$	(71,304	)	$	237,521
Equity securities		86		(4	)		144
Other		-		-			(2,263	)
	$	31,662	$	(71,308	)	$	235,402

Reclassification adjustment relating to the change in unrealized investment gains and losses

The reclassification adjustment relating to the change in unrealized investment gains and losses is as follows:

	2011		2010			2009
	(In thousands)
Net unrealized holding gains (losses) arising during the period, net of tax, included in accumulated other comprehensive income	$	68,822	$	(7,534	)	$	143,378
Less: net gains (losses) reclassified out of accumulated other comprehensive income into earnings for the period		47,765		61,540			(9,216	)
Change in unrealized investment gains (losses), net of tax	$	21,057	$	(69,074	)	$	152,594

Gross realized gains, gross realized losses and impairment losses

The gross realized gains, gross realized losses and impairment losses are as follows:

	2011			2010			2009
	(In thousands)
Gross realized gains	$	158,659		$	119,325		$	112,148
Gross realized losses		(15,229	)		(16,278	)		(19,274	)
Impairment losses		(715	)		(9,644	)		(40,940	)
Net realized gains on securities	$	142,715		$	93,403		$	51,934
Loss from joint ventures		-			(466	)		-
Total net realized gains	$	142,715		$	92,937		$	51,934