Fair Value (Tables)

9 Months Ended

Sep. 30, 2014

Fair Value Measurement Levels For All Assets, Recorded At Fair And Market Value

The following table presents the fair value measurement levels for all assets, which the Company has recorded at fair value (fair and market value) as of the period indicated:

			Fair Value Measurement Using:
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
			Assets		Inputs		Inputs
(Dollars in thousands)	September 30, 2014		(Level 1)		(Level 2)		(Level 3)
Assets:
Fixed maturities, market value
U.S. Treasury securities and obligations of
U.S. government agencies and corporations	$	519,771	$	-	$	519,771	$	-
Obligations of U.S. States and political subdivisions		834,723		-		834,723		-
Corporate securities		2,030,599		-		2,029,283		1,316
Asset-backed securities		92,317		-		72,041		20,276
Mortgage-backed securities
Commercial		43,684		-		43,684		-
Agency residential		626,542		-		626,542		-
Non-agency residential		358		-		358		-
Foreign government securities		567,131		-		567,131		-
Foreign corporate securities		1,102,991		-		1,099,427		3,564
Total fixed maturities, market value		5,818,116		-		5,792,960		25,156

Fixed maturities, fair value		18,426		-		18,426		-
Equity securities, market value		16		16		-		-
Equity securities, fair value		1,195,257		1,086,016		109,241		-
Other invested assets, fair value		1,574,733		1,574,733		-		-

There were no transfers between Level 1 and Level 2 for the nine months ended September 30, 2014.

The following table presents the fair value measurement levels for all assets, which the Company has recorded at fair value (fair and market value) as of the period indicated:

			Fair Value Measurement Using:
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
			Assets		Inputs		Inputs
(Dollars in thousands)	December 31, 2013		(Level 1)		(Level 2)		(Level 3)
Assets:
Fixed maturities, market value
U.S. Treasury securities and obligations of
U.S. government agencies and corporations	$	71,685	$	-	$	71,685	$	-
Obligations of U.S. States and political subdivisions		1,002,528		-		1,002,528		-
Corporate securities		1,702,415		-		1,702,415		-
Asset-backed securities		39,609		-		36,076		3,533
Mortgage-backed securities
Commercial		38,666		-		38,666		-
Agency residential		697,399		-		697,399		-
Non-agency residential		939		-		935		4
Foreign government securities		674,827		-		674,827		-
Foreign corporate securities		973,853		-		973,372		481
Total fixed maturities, market value		5,201,921		-		5,197,903		4,018

Fixed maturities, fair value		19,388		-		19,388		-
Equity securities, market value		13		13		-		-
Equity securities, fair value		1,298,940		1,179,139		119,801		-
Other invested assets, fair value		1,515,052		1,515,052		-		-

Activity Under Level 3, Fair Value Measurements Using Significant Unobservable Inputs By Asset Type

	Three Months Ended September 30, 2014														Nine Months Ended September 30, 2014
	Corporate		Asset-backed			Foreign			Non-agency						Corporate		Asset-backed			Foreign			Non-agency
(Dollars in thousands)	Securities		Securities			Corporate			RMBS			Total			Securities		Securities			Corporate			RMBS			Total
Beginning balance	$	-	$	2,528		$	-		$	4		$	2,532		$	-	$	3,533		$	481		$	4		$	4,018
Total gains or (losses) (realized/unrealized)
Included in earnings		-		1,235			-			2			1,237			-		1,291			18			3			1,312
Included in other comprehensive income (loss)		42		(284	)		(50	)		(3	)		(295	)		42		(191	)		(70	)		(3	)		(222	)
Purchases, issuances and settlements		1,274		17,898			3,614			(3	)		22,783			1,274		16,744			3,135			(4	)		21,149
Transfers in and/or (out) of Level 3		-		(1,101	)		-			-			(1,101	)		-		(1,101	)		-			-			(1,101	)
Ending balance	$	1,316	$	20,276		$	3,564		$	-		$	25,156		$	1,316	$	20,276		$	3,564		$	-		$	25,156

The amount of total gains or losses for the period included
in earnings (or changes in net assets) attributable to the
change in unrealized gains or losses relating to assets
still held at the reporting date	$	-	$	-		$	-		$	-		$	-		$	-	$	-		$	-		$	-		$	-

(Some amounts may not reconcile due to rounding.)

	Three Months Ended September 30, 2013														Nine Months Ended September 30, 2013
	Asset-backed			Foreign			Non-agency			Agency					Asset-backed			Foreign			Non-agency			Agency
(Dollars in thousands)	Securities			Corporate			RMBS			RMBS		Total			Securities			Corporate			RMBS			RMBS			Total
Beginning balance	$	4,832		$	7,225		$	323		$	-	$	12,380		$	4,849		$	11,421		$	5		$	29,398		$	45,673
Total gains or (losses) (realized/unrealized)
Included in earnings		58			(4	)		1			-		55			74			(655	)		3			-			(578	)
Included in other comprehensive income (loss)		(186	)		51			-			-		(135	)		(515	)		(371	)		(25	)		-			(911	)
Purchases, issuances and settlements		(377	)		(1,751	)		(1	)		-		(2,129	)		(397	)		1,086			(72	)		-			617
Transfers in and/or (out) of Level 3		-			(5,039	)		(319	)		-		(5,358	)		316			(10,999	)		93			(29,398	)		(39,988	)
Ending balance	$	4,327		$	482		$	4		$	-	$	4,813		$	4,327		$	482		$	4		$	-		$	4,813

The amount of total gains or losses for the period included
in earnings (or changes in net assets) attributable to the
change in unrealized gains or losses relating to assets
still held at the reporting date	$	-		$	-		$	-		$	-	$	-		$	-		$	-		$	-		$	-		$	-

(Some amounts may not reconcile due to rounding.)

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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