Investments (Tables)

12 Months Ended

Dec. 31, 2014

Investments [Abstract]

Amortized cost, gross unrealized gains and losses and fair value of investment portfolio

The amortized cost, gross unrealized gains and losses and fair value of the investment portfolio at December 31, 2014 and 2013 are shown below:

December 31, 2014	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses (1)			Fair Value
	(In thousands)
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	349,153	$	2,752	$	(5,130	)	$	346,775
Obligations of U.S. states and political subdivisions		844,942		12,961		(2,761	)		855,142
Corporate debt securities		2,418,991		16,325		(10,035	)		2,425,281
Asset-backed securities		286,260		535		(140	)		286,655
Residential mortgage-backed securities		329,983		254		(9,000	)		321,237
Commercial mortgage-backed securities		276,215		1,221		(2,158	)		275,278
Collateralized loan obligations		61,340		-		(1,264	)		60,076
Debt securities issued by foreign sovereign governments		35,630		3,540		-			39,170
Total debt securities		4,602,514		37,588		(30,488	)		4,609,614
Equity securities		3,003		61		(9	)		3,055
Total investment portfolio	$	4,605,517	$	37,649	$	(30,497	)	$	4,612,669

December 31, 2013	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses (1)			Fair Value
	(In thousands)
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	663,642	$	1,469	$	(25,521	)	$	639,590
Obligations of U.S. states and political subdivisions		932,922		5,865		(17,420	)		921,367
Corporate debt securities		2,190,095		6,313		(24,993	)		2,171,415
Asset-backed securities		399,839		1,100		(453	)		400,486
Residential mortgage-backed securities		383,368		146		(24,977	)		358,537
Commercial mortgage-backed securities		277,920		131		(6,668	)		271,383
Collateralized loan obligations		61,337		-		(1,042	)		60,295
Debt securities issued by foreign sovereign governments		39,420		1,722		(290	)		40,852
Total debt securities		4,948,543		16,746		(101,364	)		4,863,925
Equity securities		2,908		9		(23	)		2,894
Total investment portfolio	$	4,951,451	$	16,755	$	(101,387	)	$	4,866,819

(1) There were no other-than-temporary impairment losses recorded in other comprehensive income (loss) at December 31, 2014 and 2013.

Amortized cost and fair values of debt securities by contractual maturity

The amortized cost and fair values of debt securities at December 31, 2014, 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 asset-backed and mortgage-backed securities and collateralized loan obligations provide for periodic payments throughout their lives, they are listed below in separate categories.

December 31, 2014	Amortized Cost		Fair Value
	(In thousands)
Due in one year or less	$	330,602	$	330,982
Due after one year through five years		1,903,661		1,909,422
Due after five years through ten years		1,063,679		1,069,433
Due after ten years		350,774		356,531
		3,648,716		3,666,368
Asset-backed securities		286,260		286,655
Residential mortgage-backed securities		329,983		321,237
Commercial mortgage-backed securities		276,215		275,278
Collateralized loan obligations		61,340		60,076
Total at December 31, 2014	$	4,602,514	$	4,609,614

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

At December 31, 2014 and 2013, the investment portfolio had gross unrealized losses of $30.5 million and $101.4 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
December 31, 2014	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	58,166	$	138	$	232,351	$	4,992	$	290,517	$	5,130
Obligations of U.S. states and political subdivisions		166,408		1,066		114,465		1,695		280,873		2,761
Corporate debt securities		816,555		5,259		243,208		4,776		1,059,763		10,035
Asset-backed securities		54,491		80		11,895		60		66,386		140
Residential mortgage-backed securities		24,168		34		263,002		8,966		287,170		9,000
Commercial mortgage-backed securities		89,301		810		110,652		1,348		199,953		2,158
Collateralized loan obligations		-		-		60,076		1,264		60,076		1,264
Debt securities issued by foreign sovereign governments		-		-		-		-		-		-
Equity securities		167		1		235		8		402		9
Total investment portfolio	$	1,209,256	$	7,388	$	1,035,884	$	23,109	$	2,245,140	$	30,497

	Less Than 12 Months				12 Months or Greater				Total
December 31, 2013	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	465,975	$	24,980	$	4,103	$	541	$	470,078	$	25,521
Obligations of U.S. states and political subdivisions		503,967		17,370		4,226		50		508,193		17,420
Corporate debt securities		1,238,211		20,371		81,593		4,622		1,319,804		24,993
Asset-backed securities		126,991		387		7,114		66		134,105		453
Residential mortgage-backed securities		91,534		3,886		265,827		21,091		357,361		24,977
Commercial mortgage-backed securities		192,440		6,239		43,095		429		235,535		6,668
Collateralized loan obligations		60,295		1,042		-		-		60,295		1,042
Debt securities issued by foreign sovereign governments		7,203		290		-		-		7,203		290
Equity securities		1,012		18		75		5		1,087		23
Total investment portfolio	$	2,687,628	$	74,583	$	406,033	$	26,804	$	3,093,661	$	101,387

Net investment income

Net investment income is comprised of the following:

	2014			2013			2012
	(In thousands)
Fixed maturities	$	89,437		$	82,168		$	122,886
Equity securities		227			229			200
Cash equivalents		179			353			333
Other		711			675			782
Investment income		90,554			83,425			124,201
Investment expenses		(2,907	)		(2,686	)		(2,561	)
Net investment income	$	87,647		$	80,739		$	121,640

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 gains (losses) of investments are as follows:

	2014		2013			2012
	(In thousands)
Net realized investment gains (losses) on investments:
Fixed maturities	$	1,000	$	3,274		$	195,652
Equity securities		356		1,068			487
Other		1		1,389			(730	)
Total net realized investment gains	$	1,357	$	5,731		$	195,409
Change in net unrealized gains (losses):
Fixed maturities	$	91,718	$	(126,020	)	$	(78,604	)
Equity securities		66		(153	)		58
Other		-		-			-
Total increase (decrease) in net unrealized gains/losses	$	91,784	$	(126,173	)	$	(78,546	)

Gross realized gains, gross realized losses and impairment losses

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

	2014			2013			2012
	(In thousands)
Gross realized gains	$	4,966		$	11,043		$	213,827
Gross realized losses		(3,465	)		(4,984	)		(16,108	)
Impairment losses		(144	)		(328	)		(2,310	)
Net realized gains on securities	$	1,357		$	5,731		$	195,409