Investments (Tables)

3 Months Ended

Mar. 31, 2012

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 March 31, 2012 and December 31, 2011 are shown below.

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
March 31, 2012	Cost		Gains		Losses (1)			Value
	(In thousands)

U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	234,151	$	3,787	$	(889	)	$	237,049
Obligations of U.S. states and political subdivisions		1,617,383		45,848		(4,762	)		1,658,469
Corporate debt securities		2,756,698		24,414		(8,665	)		2,772,447
Residential mortgage-backed securities		457,756		984		(1,589	)		457,151
Commercial mortgage-backed securities		254,442		7,935		(441	)		261,936
Debt securities issued by foreign sovereign governments		139,972		6,456		(14	)		146,414
Total debt securities		5,460,402		89,424		(16,360	)		5,533,466
Equity securities		2,687		97		(1	)		2,783

Total investment portfolio	$	5,463,089	$	89,521	$	(16,361	)	$	5,536,249

			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

(1) At March 31, 2012 and December 31, 2011, 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 March 31, 2012, 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
March 31, 2012	Cost		Value
	(In thousands)

Due in one year or less	$	819,437	$	821,597
Due after one year through five years		2,334,380		2,372,280
Due after five years through ten years		936,995		959,983
Due after ten years		510,918		518,264

	$	4,601,730	$	4,672,124

Commercial mortgage-backed securities		254,442		261,936
Residential mortgage-backed securities		457,756		457,151
Auction rate securities (1)		146,474		142,255

Total at March 31, 2012	$	5,460,402	$	5,533,466

(1) At March 31, 2012, all of the auction rate securities had a contractual maturity greater than 10 years.

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

At March 31, 2012 and December 31, 2011, the investment portfolio had gross unrealized losses of $16.4 million and $14.6 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
March 31, 2012	Value		Losses		Value		Losses		Value		Losses
	(In thousands)

U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	107,486	$	889	$	-	$	-	$	107,486	$	889
Obligations of U.S. states and political subdivisions		190,607		1,309		77,335		3,453		267,942		4,762
Corporate debt securities		1,081,295		7,996		24,768		669		1,106,063		8,665
Residential mortgage-backed securities		318,878		1,589		-		-		318,878		1,589
Commercial mortgage-backed securities		64,971		441		-		-		64,971		441
Debt securities issued by foreign sovereign governments		482		14		-		-		482		14
Equity securities		42		-		22		1		64		1
Total investment portfolio	$	1,763,761	$	12,238	$	102,125	$	4,123	$	1,865,886	$	16,361

	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

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
		March 31,
		2012		2011
	(In thousands)

Net realized investment gains (losses) and OTTI on investments:
Fixed maturities		$	75,339	$	5,729
Equity securities			382		32
Other			1,840		-

		$	77,561	$	5,761

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

		Three Months Ended
		March 31,
		2012			2011
	(In thousands)

Net realized investment gains (losses) and OTTI on investments:
Gains on sales		$	80,035		$	8,392
Losses on sales			(2,474	)		(2,631	)
Impairment losses			-			-

		$	77,561		$	5,761