Investment in Securities (Tables)

9 Months Ended

Sep. 30, 2015

Investments, Debt and Equity Securities [Abstract]

The cost or amortized cost and fair value of investments in securities are shown below (in thousands):


	September 30, 2015
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
Fixed maturity securities, bonds held-to-maturity
U.S. states and political subdivisions	$	324,191	$	26,068	$	—		$	350,259
Foreign governments		4,111		975		—			5,086
Corporate debt securities		7,055,332		344,616		(90,276	)		7,309,672
Residential mortgage-backed securities		288,223		22,236		(913	)		309,546
Collateralized debt securities		1,928		127		—			2,055
Other debt securities		15,766		620		—			16,386

Total bonds held-to-maturity		7,689,551		394,642		(91,189	)		7,993,004

Fixed maturity securities, bonds available-for-sale
U.S. treasury and government		24,025		814		—			24,839
U.S. states and political subdivisions		925,948		34,206		(1,834	)		958,320
Foreign governments		5,000		1,929		—			6,929
Corporate debt securities		4,196,262		160,179		(51,382	)		4,305,059
Residential mortgage-backed securities		28,452		1,648		(259	)		29,841
Collateralized debt securities		9,051		658		(41	)		9,668

Total bonds available-for-sale		5,188,738		199,434		(53,516	)		5,334,656

Equity securities
Common stock		755,546		655,360		(23,857	)		1,387,049
Preferred stock		13,487		10,100		—			23,587

Total equity securities		769,033		665,460		(23,857	)		1,410,636

Total investments in securities	$	13,647,322	$	1,259,536	$	(168,562	)	$	14,738,296


	December 31, 2014
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
Fixed maturity securities, bonds held-to-maturity
U.S. states and political subdivisions	$	323,053	$	26,800	$	(93	)	$	349,760
Foreign governments		29,130		1,293		—			30,423
Corporate debt securities		7,517,195		424,845		(47,315	)		7,894,725
Residential mortgage-backed securities		336,853		22,317		(1,535	)		357,635
Collateralized debt securities		2,232		238		—			2,470
Other debt securities		16,587		1,313		—			17,900

Total bonds held-to-maturity		8,225,050		476,806		(48,943	)		8,652,913

Fixed maturity securities, bonds available-for-sale
U.S. treasury and government		22,415		825		(7	)		23,233
U.S. states and political subdivisions		802,846		36,151		(1,381	)		837,616
Foreign governments		5,000		2,021		—			7,021
Corporate debt securities		3,812,771		203,048		(15,770	)		4,000,049
Residential mortgage-backed securities		40,988		1,903		(492	)		42,399
Collateralized debt securities		10,696		863		(70	)		11,489

Total bonds available-for-sale		4,694,716		244,811		(17,720	)		4,921,807

Equity securities
Common stock		719,651		774,650		(7,176	)		1,487,125
Preferred stock		19,733		10,121		(1	)		29,853

Total equity securities		739,384		784,771		(7,177	)		1,516,978

Total investments in securities	$	13,659,150	$	1,506,388	$	(73,840	)	$	15,091,698

Maturities of Investments

The amortized cost and fair value, by contractual maturity, of fixed maturity securities are shown below (in thousands):


	September 30, 2015
	Bonds Held-to-Maturity				Bonds Available-for-Sale
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	394,934	$	401,042	$	357,147	$	361,475
Due after one year through five years		2,348,115		2,535,513		1,015,790		1,083,981
Due after five years through ten years		4,556,548		4,641,818		3,208,405		3,267,070
Due after ten years		384,104		409,531		602,396		617,155
Without single maturity date		5,850		5,100		5,000		4,975

Total	$	7,689,551	$	7,993,004	$	5,188,738	$	5,334,656

Proceeds from Available for Sale Securities and Realized Gain Loss

Proceeds from sales of available-for-sale securities, with the related gross realized gains and losses, are shown below (in thousands):


	Three months ended September 30,				Nine months ended September 30,
	2015		2014		2015			2014
Proceeds from sales of available-for-sale securities	$	8,876	$	2,671	$	48,352		$	139,137
Gross realized gains		3,982		228		17,991			24,994
Gross realized losses		—		—		(65	)		(2,123	)

Change in Net Unrealized Gains (Losses) on Available-for-Sale Securities

The components of the change in net unrealized gains (losses) on securities are shown below (in thousands):


	Nine months ended September 30,
	2015			2014
Bonds available-for-sale	$	(81,173	)	$	82,701
Equity securities		(135,991	)		79,211

Change in net unrealized gains (losses) on securities during the year		(217,164	)		161,912
Adjustments for
Deferred policy acquisition costs		30,491			(17,175	)
Participating policyholders’ interest		7,222			(8,526	)
Deferred federal income tax benefit (expense)		62,248			(47,160	)

Change in net unrealized gains (losses) on securities, net of tax	$	(117,203	)	$	89,051

Gross Unrealized Losses and Fair Value of Investment Securities

The gross unrealized losses and fair value of the investment securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are shown below (in thousands):


	September 30, 2015
	Less than 12 months					12 Months or more					Total
	Unrealized (Losses)			Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)			Fair Value
Fixed maturity securities, bonds held-to-maturity
U.S. states and political subdivisions	$	—		$	—	$	—		$	—	$	—		$	—
Corporate debt securities		(62,176	)		1,484,022		(28,100	)		205,613		(90,276	)		1,689,635
Residential mortgage-backed securities		(146	)		21,304		(767	)		16,697		(913	)		38,001

Total bonds held-to-maturity		(62,322	)		1,505,326		(28,867	)		222,310		(91,189	)		1,727,636

Fixed maturity securities, bonds available-for-sale
U.S. treasury and government		—			3,876		—			—		—			3,876
U.S. states and political subdivisions		(1,758	)		172,536		(76	)		2,059		(1,834	)		174,595
Corporate debt securities		(43,045	)		1,195,908		(8,337	)		62,378		(51,382	)		1,258,286
Residential mortgage-backed securities		(82	)		13,772		(177	)		6,217		(259	)		19,989
Collateralized debt securities		(36	)		1,986		(5	)		292		(41	)		2,278

Total bonds available-for-sale		(44,921	)		1,388,078		(8,595	)		70,946		(53,516	)		1,459,024

Equity securities
Common stock		(23,857	)		112,392		—			—		(23,857	)		112,392
Preferred stock		—			—		—			—		—			—

Total equity securities		(23,857	)		112,392		—			—		(23,857	)		112,392

Total	$	(131,100	)	$	3,005,796	$	(37,462	)	$	293,256	$	(168,562	)	$	3,299,052


	December 31, 2014
	Less than 12 months					12 Months or more					Total
	Unrealized (Losses)			Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)			Fair Value
Fixed maturity securities, bonds held-to-maturity
U.S. states and political subdivisions	$	(37	)	$	3,388	$	(56	)	$	2,465	$	(93	)	$	5,853
Corporate debt securities		(20,575	)		523,766		(26,740	)		662,362		(47,315	)		1,186,128
Residential mortgage-backed securities		(232	)		12,186		(1,303	)		31,163		(1,535	)		43,349

Total bonds held-to-maturity		(20,844	)		539,340		(28,099	)		695,990		(48,943	)		1,235,330

Fixed maturity securities, bonds available-for-sale
U.S. treasury and government		(7	)		14,552		—			—		(7	)		14,552
U.S. states and political subdivisions		(166	)		27,719		(1,215	)		78,851		(1,381	)		106,570
Corporate debt securities		(8,852	)		384,451		(6,918	)		288,808		(15,770	)		673,259
Residential mortgage-backed securities		(170	)		9,386		(322	)		14,042		(492	)		23,428
Collateralized debt securities		(63	)		2,033		(7	)		339		(70	)		2,372

Total bonds available-for-sale		(9,258	)		438,141		(8,462	)		382,040		(17,720	)		820,181

Equity securities
Common stock		(7,176	)		43,907		—			—		(7,176	)		43,907
Preferred stock		(1	)		—		—			—		(1	)		—

Total equity securities		(7,177	)		43,907		—			—		(7,177	)		43,907

Total	$	(37,279	)	$	1,021,388	$	(36,561	)	$	1,078,030	$	(73,840	)	$	2,099,418

Bond by Credit Quality Rating Distribution

Bonds distributed by credit quality rating, using both Standard & Poor’s and Moody’s ratings, are shown below:


	September 30, 2015			December 31, 2014
AAA		5.4	%		5.0	%
AA		12.2			12.8
A		38.1			39.4
BBB		41.3			39.5
BB and below		3.0			3.3

Total		100.0	%		100.0	%

Equity Securities by Market Sector Distribution

Equity securities by market sector distribution are shown below:


	September 30, 2015			December 31, 2014
Consumer goods		21.4	%		20.4	%
Energy and utilities		10.8			13.3
Financials		19.1			19.1
Healthcare		14.9			14.0
Industrials		8.1			8.4
Information technology		17.3			16.2
Other		8.4			8.6

Total		100.0	%		100.0	%