Fair value measurements (Tables)

3 Months Ended

Mar. 31, 2012

Fair value measurements [Abstract]

Fair value measurements for items measured at fair value

Fair value measurements for assets measured at fair value included the following as of March 31, 2012 and December 31, 2011:

	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)
March 31, 2012
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	237,049	$	237,049	$	-	$	-
Obligations of U.S. states and political subdivisions		1,658,469		-		1,562,953		95,516
Corporate debt securities		2,772,447		-		2,721,329		51,118
Residential mortgage-backed securities		457,151		-		457,151		-
Commercial mortgage-backed securities		261,936		-		261,936		-
Debt securities issued by foreign sovereign governments		146,414		146,414		-		-
Total debt securities		5,533,466		383,463		5,003,369		146,634
Equity securities		2,783		2,462		-		321
Total investments	$	5,536,249	$	385,925	$	5,003,369	$	146,955
Real estate acquired (1)	$	2,340	$	-	$	-	$	2,340
December 31, 2011
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	597,037	$	597,037	$	-	$	-
Obligations of U.S. states and political subdivisions		2,323,471		-		2,209,245		114,226
Corporate debt securities		2,032,851		1,455		1,971,168		60,228
Residential mortgage-backed securities		445,417		-		445,417		-
Commercial mortgage-backed securities		264,934		-		264,934		-
Debt securities issued by foreign sovereign governments		157,190		147,976		9,214		-
Total debt securities		5,820,900		746,468		4,899,978		174,454
Equity securities		2,747		2,426		-		321
Total investments	$	5,823,647	$	748,894	$	4,899,978	$	174,775
Real estate acquired (1)	$	1,621	$	-	$	-	$	1,621

(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 months ended March 31, 2012 and 2011 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 December 31, 2011	$	114,226		$	60,228		$	321	$	174,775		$	1,621
Total realized/unrealized gains (losses):
Included in earnings and reported as realized investment gains (losses), net		(1,950	)		(381	)		-		(2,331	)		-
Included in earnings and reported as losses incurred, net		-			-			-		-			(316	)
Included in other comprehensive income		1,869			277			-		2,146			-
Purchases		27			-			-		27			2,082
Sales		(18,656	)		(9,006	)		-		(27,662	)		(1,047	)
Transfers into Level 3		-			-			-		-			-
Transfers out of Level 3		-			-			-		-			-
Balance at March 31, 2012	$	95,516		$	51,118		$	321	$	146,955		$	2,340
Amount of total losses included in earnings for the three months ended March 31, 2012 attributable to the change in unrealized losses on assets still held at March 31, 2012	$	-		$	-		$	-	$	-		$	-

	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 losses incurred, net		-			-		-		-			7
Included in other comprehensive income		533			220		-		753			-
Purchases		-			-		-		-			1,369
Sales		(25,492	)		-		-		(25,492	)		(2,720	)
Transfers into Level 3		-			-		-		-			-
Transfers out of Level 3		-			-		-		-			-
Balance at March 31, 2011	$	270,731		$	70,273	$	321	$	341,325		$	4,876
Amount of total losses included in earnings for the three months ended March 31, 2011 attributable to the change in unrealized losses on assets still held at March 31, 2011	$	-		$	-	$	-	$	-		$	-