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Investments
 3 Months Ended
Mar. 31, 2014
Investment [Abstract]  
Investments

(2)  Investments

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

 

  Cost or Gross Gross    
  amortized unrealized unrealized    
  cost gain loss Fair value 
March 31, 2014            
              
U.S. government and government agency securities $ 90,628 $ 1,869 $ (400) $ 92,097 
Fixed maturity securities of states, municipalities             
 and political subdivisions  934,057   57,121   (2,361)   988,817 
Special purpose revenue bonds of states, municipalities            
 and political subdivisions  2,242,766   98,757   (20,207)   2,321,316 
Corporate securities   1,172,614   45,490   (6,917)   1,211,187 
Residential mortgage-backed securities   636,192   15,990   (14,893)   637,289 
Commercial mortgage-backed securities   507,570   17,770   (8,808)   516,532 
Asset-backed securities   235,420   419   (1,576)   234,263 
Foreign government securities   90,791   3,542   (208)   94,125 
 Total fixed maturity securities $ 5,910,038 $ 240,958 $ (55,370) $ 6,095,626 
              
Equity securities $ 391,779 $ 41,779 $ (7,469) $ 426,089 

  Cost or Gross Gross    
  amortized unrealized unrealized    
  cost gain loss Fair value 
December 31, 2013            
              
U.S. government and government agency securities $91,047 $2,157 $(495) $92,709 
Fixed maturity securities of states, municipalities             
 and political subdivisions 941,580  50,885  (5,979)  986,486 
Special purpose revenue bonds of states, municipalities            
 and political subdivisions 2,240,412  71,541  (46,758)  2,265,195 
Corporate securities  1,195,387  40,860  (11,009)  1,225,238 
Residential mortgage-backed securities  622,766  15,289  (19,936)  618,119 
Commercial mortgage-backed securities  502,069  16,155  (13,336)  504,888 
Asset-backed securities  183,660  319  (1,587)  182,392 
Foreign government securities  144,566  3,237  (357)  147,446 
 Total fixed maturity securities $5,921,487 $200,443 $(99,457) $6,022,473 
              
Equity securities $464,388 $58,842 $(5,764) $517,466 

Substantially all of our fixed maturity securities are investment grade. The following tables display 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 
March 31, 2014                  
                      
Fixed maturity securities                  
 U.S. government and government agency                   
   securities$ 25,035 $ (400) $ - $ - $ 25,035 $ (400) 
 Fixed maturity securities of states,                   
  municipalities and political subdivisions   76,962   (1,924)   9,219   (437)   86,181   (2,361) 
 Special purpose revenue bonds of states,                   
  municipalities and political subdivisions   472,150   (14,315)   102,936   (5,892)   575,086   (20,207) 
 Corporate securities   247,972   (5,160)   36,873   (1,757)   284,845   (6,917) 
 Residential mortgage-backed securities   283,429   (10,749)   41,796   (4,144)   325,225   (14,893) 
 Commercial mortgage-backed securities   171,448   (7,196)   20,371   (1,612)   191,819   (8,808) 
 Asset-backed securities   158,396   (1,576)   -   -   158,396   (1,576) 
 Foreign government securities   29,280   (208)   -   -   29,280   (208) 
Equity securities   99,429   (7,459)   252   (10)   99,681   (7,469) 
   Total $ 1,564,101 $ (48,987) $ 211,447 $ (13,852) $ 1,775,548 $ (62,839) 

    Less than 12 months  12 months or more  Total  
      Unrealized   Unrealized   Unrealized 
     Fair value  losses Fair value  losses  Fair value  losses 
December 31, 2013                  
                      
Fixed maturity securities                  
 U.S. government and government agency                   
  securities$23,717 $(495) $0 $0 $23,717 $(495) 
 Fixed maturity securities of states,                   
  municipalities and political subdivisions  136,160  (5,277)  8,997  (702)  145,157  (5,979) 
 Special purpose revenue bonds of states,                   
  municipalities and political subdivisions  684,560  (35,832)  83,228  (10,926)  767,788  (46,758) 
 Corporate securities  277,853  (8,202)  35,437  (2,807)  313,290  (11,009) 
 Residential mortgage-backed securities  306,874  (15,861)  31,687  (4,075)  338,561  (19,936) 
 Commercial mortgage-backed securities  203,347  (12,611)  4,915  (725)  208,262  (13,336) 
 Asset-backed securities  126,922  (1,587)  0  0  126,922  (1,587) 
 Foreign government securities  78,182  (357)  0  0  78,182  (357) 
Equity securities  75,620  (5,437)  7,016  (327)  82,636  (5,764) 
   Total $1,913,235 $(85,659) $171,280 $(19,562) $2,084,515 $(105,221) 

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 $1.0 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 quarter of 2014 and 2013.

 

At March 31, 2014, we held approximately 2,750 fixed maturity and equity securities, of which 28% included at least one lot in an unrealized loss position.  The related gross unrealized losses of $62.8 million in our portfolio relate to non-credit factors, such as interest rate changes and market conditions.  We do not consider these gross unrealized losses to be other-than-temporary impairments at March 31, 2014 because: 1) as of that date, we have received all contractual interest and principal payments on the fixed maturity securities, 2) we do not intend to sell the securities and 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.

The amortized cost and fair value of our fixed maturity securities at March 31, 2014, 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 5.7 years at March 31, 2014.

   Cost or amortized cost Fair value  
         
Due in 1 year or less  $ 184,280 $ 188,085 
Due after 1 year through 5 years    1,010,609   1,056,776 
Due after 5 years through 10 years    1,427,804   1,497,909 
Due after 10 years through 15 years    993,477   1,029,110 
Due after 15 years    914,686   935,662 
 Securities with contractual maturities    4,530,856   4,707,542 
Mortgage-backed and asset-backed securities    1,379,182   1,388,084 
 Total fixed maturity securities  $ 5,910,038 $ 6,095,626 

Realized pretax gains (losses) on the sale of investments included the following:

   Three months ended March 31, 
   2014 2013 
Gains      
 Fixed maturity securities$2,015 $4,591 
 Equity securities 24,438  1,340 
 Other investments 0  4,528 
  Total gains 26,453  10,459 
         
Losses      
 Fixed maturity securities (3,038)  (1,775) 
 Equity securities (3,169)  (114) 
  Total losses (6,207)  (1,889) 
         
Net      
 Fixed maturity securities (1,023)  2,816 
 Equity securities 21,269  1,226 
 Other investments 0  4,528 
  Net realized investment gain$20,246 $8,570