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Investments
 6 Months Ended
Jun. 30, 2013
Investment [Abstract]  
Investments

(2)  Investments

The cost or amortized cost, gross unrealized gain or loss, and fair value of our available for sale fixed maturity and equity securities were as follows:

 

  Cost or Gross Gross    
  amortized unrealized unrealized    
  cost gain loss Fair value 
June 30, 2013            
              
U.S. government and government agency securities $120,951 $3,076 $(363) $123,664 
Fixed maturity securities of states, municipalities and             
 political subdivisions 974,153  60,281  (4,617)  1,029,817 
Special purpose revenue bonds of states, municipalities and            
 political subdivisions 2,218,302  91,093  (37,775)  2,271,620 
Corporate securities  1,215,761  34,077  (13,193)  1,236,645 
Residential mortgage-backed securities  601,437  17,204  (13,146)  605,495 
Commercial mortgage-backed securities  529,714  19,377  (12,892)  536,199 
Asset-backed securities  54,478  219  (406)  54,291 
Foreign government securities  228,364  9,755  (1,210)  236,909 
 Total fixed maturity securities $5,943,160 $235,082 $(83,602) $6,094,640 
              
Equity securities $323,249 $31,169 $(6,578) $347,840 

  Cost or Gross Gross    
  amortized unrealized unrealized    
  cost gain loss Fair value 
December 31, 2012            
              
U.S. government and government agency securities $195,049 $4,560 $(2) $199,607 
Fixed maturity securities of states, municipalities and political            
 subdivisions 969,966  96,027  (182)  1,065,811 
Special purpose revenue bonds of states, municipalities and            
 political subdivisions 2,033,947  168,772  (2,388)  2,200,331 
Corporate securities  1,247,282  69,243  (1,355)  1,315,170 
Residential mortgage-backed securities  632,665  32,560  (338)  664,887 
Commercial mortgage-backed securities  482,808  41,748  (267)  524,289 
Asset-backed securities  32,801  474  0  33,275 
Foreign government securities  261,914  16,515  (18)  278,411 
 Total fixed maturity securities $5,856,432 $429,899 $(4,550) $6,281,781 
              
Equity securities $275,827 $13,768 $(4,956) $284,639 

Substantially all of our fixed maturity securities are investment grade. The following table displays the gross unrealized losses and fair value of all available for sale securities that were in a continuous unrealized loss position for the periods indicated.

    Less than 12 months  12 months or more  Total  
      Unrealized   Unrealized   Unrealized 
     Fair value  losses Fair value  losses  Fair value  losses 
June 30, 2013                  
                      
Fixed maturity securities                  
 U.S. government and government agency                   
   securities$20,667 $(363) $0 $0 $20,667 $(363) 
 Fixed maturity securities of states,                   
  municipalities and political subdivisions  97,408  (4,617)  0  0  97,408  (4,617) 
 Special purpose revenue bonds of states,                   
  municipalities and political subdivisions  648,672  (37,753)  1,197  (22)  649,869  (37,775) 
 Corporate securities  419,283  (12,406)  12,534  (787)  431,817  (13,193) 
 Residential mortgage-backed securities  278,062  (13,146)  0  0  278,062  (13,146) 
 Commercial mortgage-backed securities  224,294  (12,892)  0  0  224,294  (12,892) 
 Asset-backed securities  18,066  (406)  0  0  18,066  (406) 
 Foreign government securities  67,832  (1,210)  0  0  67,832  (1,210) 
Equity securities  98,086  (6,237)  2,832  (341)  100,918  (6,578) 
   Total $1,872,370 $(89,030) $16,563 $(1,150) $1,888,933 $(90,180) 

    Less than 12 months  12 months or more  Total  
      Unrealized   Unrealized   Unrealized 
     Fair value  losses Fair value  losses  Fair value  losses 
December 31, 2012                  
                      
Fixed maturity securities                  
 U.S. government and government agency                   
  securities$55,034 $(2) $0 $0 $55,034 $(2) 
 Fixed maturity securities of states,                   
  municipalities and political subdivisions  14,162  (182)  0  0  14,162  (182) 
 Special purpose revenue bonds of states,                   
  municipalities and political subdivisions  155,902  (2,388)  0  0  155,902  (2,388) 
 Corporate securities  85,245  (1,220)  2,616  (135)  87,861  (1,355) 
 Residential mortgage-backed securities  49,486  (338)  0  0  49,486  (338) 
 Commercial mortgage-backed securities  26,263  (267)  0  0  26,263  (267) 
 Foreign government securities  7,007  (18)  0  0  7,007  (18) 
Equity securities  103,647  (4,956)  0  0  103,647  (4,956) 
   Total $496,746 $(9,371) $2,616 $(135) $499,362 $(9,506) 

A security has an impairment loss when its fair value is less than its cost or amortized cost at the balance sheet date. We evaluate our securities for possible other-than-temporary impairment losses at each quarter end. Our reviews cover all impaired securities where the loss exceeds $0.5 million and the loss either exceeds 10% of cost or the security had been in a loss position for longer than twelve consecutive months. We recognized no other-than-temporary impairment losses in the first six months of 2013 and $0.4 million in the first six months and second quarter of 2012.

 

We do not consider the $90.2 million of gross unrealized losses on fixed maturity and equity securities in our portfolio at June 30, 2013 to be other-than-temporary impairments because: 1) as of June 30, 2013, we have received substantially all contractual interest and principal payments on the fixed maturity securities, 2) we do not intend to sell the securities, 3) it is more likely than not that we will not be required to sell the securities before recovery of their amortized cost or cost bases and 4) the unrealized loss primarily relates to non-credit factors, such as interest rate changes and market conditions that occurred in the second quarter of 2013.

The amortized cost and fair value of our fixed maturity securities at June 30, 2013, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The weighted-average life of our mortgage-backed and asset-backed securities was 6.2 years at June 30, 2013.

   Cost or amortized cost Fair value  
Due in 1 year or less  $217,012 $219,433 
Due after 1 year through 5 years   1,062,230  1,098,261 
Due after 5 years through 10 years   1,456,485  1,524,386 
Due after 10 years through 15 years   1,020,759  1,045,896 
Due after 15 years   1,001,045  1,010,679 
 Securities with contractual maturities   4,757,531  4,898,655 
Mortgage-backed and asset-backed securities   1,185,629  1,195,985 
 Total fixed maturity securities  $5,943,160 $6,094,640 

The sources of net investment income were as follows:

    Six months ended June 30, Three months ended June 30, 
    2013 2012 2013 2012 
Fixed maturity securities             
 Taxable $51,022 $58,218 $25,062 $27,103 
 Exempt from U.S. income taxes  56,075  52,872  28,186  26,260 
  Total fixed maturity securities  107,097  111,090  53,248  53,363 
Equity securities  7,808  993  4,228  993 
Short-term investments  80  102  68  40 
Other investment income  319  868  366  401 
 Total investment income  115,304  113,053  57,910  54,797 
Investment expense  (3,871)  (2,753)  (2,242)  (1,507) 
 Net investment income $111,433 $110,300 $55,668 $53,290