Investments (Tables)
 3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Investments, Debt and Equity Securities [Abstract]    
Summary of information of investment portfolio
Summarized information for the major categories of our investment portfolio follows ($ in thousands):
March 31, 2018
Amortized
Cost or Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
 
OTTI
Recognized in
Accumulated
OCI(1)
Fixed maturities:
 
 
 
 
 
 
 
 
 
U.S. government
$
125,887

 
$
58

 
$
(1,188
)
 
$
124,757

 
$
0

State and municipal
297,994

 
1,031

 
(2,211
)
 
296,814

 
0

Mortgage-backed securities:

 

 

 
 
 
 
Residential
372,319

 
669

 
(7,981
)
 
365,007

 
(72
)
Commercial
63,053

 
23

 
(1,016
)
 
62,061

 
0

Total mortgage-backed securities
435,372

 
693

 
(8,996
)
 
427,068

 
(72
)
Asset-backed securities
129,010

 
104

 
(630
)
 
128,484

 
0

Corporates
524,676

 
1,726

 
(5,595
)
 
520,807

 
0

Total fixed maturities
1,512,939

 
3,612

 
(18,621
)
 
1,497,930

 
(72
)
Short-term investments
0

 
0

 
0

 
0

 
0

Total
$
1,512,939

 
$
3,612

 
$
(18,621
)
 
$
1,497,930

 
$
(72
)
 
 
 
 
 
 
 
 
 
 
December 31, 2017
 
 
 
 
 
 
 
 
 
Fixed maturities:
 
 
 
 
 
 
 
 
 
U.S. government
$
61,196

 
$
0

 
$
(668
)
 
$
60,528

 
$
0

State and municipal
492,442

 
2,768

 
(999
)
 
494,211

 
(46
)
Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
Residential
353,277

 
1,812

 
(4,097
)
 
350,992

 
(1,479
)
Commercial
31,204

 
18

 
(653
)
 
30,569

 
0

Total mortgage-backed securities
384,481

 
1,830

 
(4,750
)
 
381,561

 
(1,479
)
Asset-backed securities
62,552

 
62

 
(196
)
 
62,418

 
(8
)
Corporates
439,208

 
4,610

 
(1,429
)
 
442,390

 
(31
)
Total fixed maturities
1,439,878

 
9,271

 
(8,042
)
 
1,441,107

 
(1,564
)
Equity securities
68,812

 
27,192

 
0

 
96,004

 
0

Short-term investments
2,541

 
0

 
0

 
2,541

 
0

Total
$
1,511,232

 
$
36,463

 
$
(8,042
)
 
$
1,539,653

 
$
(1,564
)
 
 
 
 
 
 
 
 
 
 
(1) The total non-credit portion of OTTI recognized in Accumulated OCI reflecting the original non-credit loss at the time the credit impairment was determined.
The portion of unrealized gains and losses recorded during the three months ended March 31, 2018, that relate to equities still held at the end of the reporting date are as follows ($ in thousands):
Net losses recognized during the period on equity securities
$
(726
)
Less: Net gains recognized during the period on equity securities sold
(1,881
)
Unrealized losses recognized during the period on equity securities still held at the reporting date
$
(2,607
)
Unrealized loss by investment category and length of time
The following tables set forth the amount of unrealized loss by investment category and length of time that individual securities have been in a continuous unrealized loss position ($ in thousands):
 
Less than 12 Months
 
12 Months or More
March 31, 2018
Number of
Securities
with
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Unrealized
Losses as
% of Cost
 
Number of
Securities
with
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Unrealized
Losses as
% of Cost
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government
28
 
$
48,202

 
$
(881
)
 
1.8
%
 
16

 
$
12,743

 
$
(307
)
 
2.4
%
State and municipal
99
 
184,046

 
(2,147
)
 
1.2
%
 
4

 
4,573

 
(64
)
 
1.4
%
Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential
263
 
144,098

 
(2,250
)
 
1.5
%
 
272

 
119,273

 
(5,730
)
 
4.6
%
Commercial
15
 
30,658

 
(177
)
 
0.6
%
 
8

 
23,206

 
(839
)
 
3.5
%
Total mortgage-backed securities
278
 
174,756

 
(2,427
)
 
1.4
%
 
280

 
142,480

 
(6,569
)
 
4.4
%
Asset-backed securities
43
 
74,670

 
(628
)
 
0.8
%
 
1

 
1,458

 
(2
)
 
0.1
%
Corporates
232
 
367,660

 
(5,168
)
 
1.4
%
 
15

 
18,126

 
(427
)
 
2.3
%
Total fixed maturities
680
 
849,333

 
(11,252
)
 
1.3
%
 
316

 
179,380

 
(7,369
)
 
3.9
%
Short-term investments
0
 
0

 
0

 
0.0
%
 
0

 
0

 
0

 
0.0
%
Total
680
 
$
849,333

 
$
(11,252
)
 
1.3
%
 
316

 
$
179,380

 
$
(7,369
)
 
3.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government
25
 
$
46,160

 
$
(422
)
 
0.9
%
 
16

 
$
14,368

 
$
(246
)
 
1.7
%
State and municipal
82
 
163,997

 
(939
)
 
0.6
%
 
5

 
10,529

 
(60
)
 
0.6
%
Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential
154
 
81,841

 
(453
)
 
0.6
%
 
279

 
127,317

 
(3,644
)
 
2.8
%
Commercial
2
 
3,578

 
(30
)
 
0.8
%
 
9

 
23,066

 
(623
)
 
2.6
%
Total mortgage-backed securities
156
 
85,419

 
(483
)
 
0.6
%
 
288

 
150,383

 
(4,267
)
 
2.8
%
Asset-backed securities
31
 
35,407

 
(193
)
 
0.5
%
 
2

 
1,561

 
(3
)
 
0.2
%
Corporates
104
 
158,788

 
(1,197
)
 
0.7
%
 
13

 
16,468

 
(232
)
 
1.4
%
Total fixed maturities
398
 
489,771

 
(3,233
)
 
0.7
%
 
324

 
193,309

 
(4,809
)
 
2.4
%
Equity securities
0
 
0

 
0

 
0.0
%
 
0

 
0

 
0

 
0.0
%
Short-term investments
0
 
0

 
0

 
0.0
%
 
0

 
0

 
0

 
0.0
%
Total
398
 
$
489,771

 
$
(3,233
)
 
0.7
%
 
324

 
$
193,309

 
$
(4,809
)
 
2.4
%
  
Summary of unrealized gains or losses
The following table summarizes those securities with unrealized gains or losses (2018 includes fixed maturity securities only):
 
March 31, 2018
 
December 31, 2017
Number of positions held with unrealized:
 
 
 
Gains
302

 
496

Losses
996

 
722

Number of positions held that individually exceed unrealized:
 
 
 
Gains of $500,000
0

 
2

Losses of $500,000
0

 
0

Percentage of positions held with unrealized:
 
 
 
Gains that were investment grade
84
%
 
81
%
Losses that were investment grade
94
%
 
97
%
Percentage of fair value held with unrealized:
 
 
 
Gains that were investment grade
88
%
 
81
%
Losses that were investment grade
93
%
 
95
%
  
Unrealized loss by age and severity
The following table sets forth the amount of unrealized losses by age and severity at March 31, 2018, ($ in thousands):
Age of Unrealized Losses
Fair Value of
Securities with
Unrealized
Losses
 
Total Gross
Unrealized
Losses
 
Less  Than 5%*
 
5% - 10%*
 
Total Gross Greater
Than 10%*
Three months or less
$
454,565

 
$
(3,506
)
 
$
(3,394
)
 
$
(112
)
 
$
0

Four months through six months
247,851

 
(4,193
)
 
(4,007
)
 
(185
)
 
0

Seven months through nine months
139,484

 
(3,392
)
 
(3,392
)
 
0

 
0

Ten months through twelve months
7,432

 
(161
)
 
(161
)
 
0

 
0

Greater than twelve months
179,380

 
(7,369
)
 
(4,846
)
 
(2,523
)
 
0

Total
$
1,028,713

 
$
(18,621
)
 
$
(15,801
)
 
$
(2,820
)
 
$
0

* As a percentage of amortized cost or cost.
  
Change in unrealized gains (losses) on marketable securities
The change in unrealized gains (losses) on marketable securities recognized through accumulated other comprehensive income included the following ($ in thousands):
 
Pre-tax
 
 
 
 
Three months ended March 31, 2018
Fixed
Maturities
 
Short-Term Investments
 
Tax
Effects
 
Net
Unrealized holding (losses) gains on securities arising during the period
$
(18,346
)
 
$
1

 
3,852

 
(14,492
)
Realized losses (gains) on securities sold
519

 
(1
)
 
(109
)
 
409

Impairment loss recognized in earnings
1,588

 
0

 
(334
)
 
1,255

Change in unrealized, net
$
(16,238
)
 
$
0

 
$
3,410

 
$
(12,828
)

 
Pre-tax
 
 
 
 
Three months ended March 31, 2017
Fixed
Maturities
 
Equity
Securities
 
Short-Term Investments
 
Tax
Effects
 
Net
Unrealized holding gains on securities arising during the period
$
4,368

 
$
6,294

 
$
3

 
$
(3,733
)
 
$
6,932

Realized losses (gains) on securities sold
52

 
(569
)
 
(1
)
 
182

 
(337
)
Impairment loss recognized in earnings
10

 
0

 
0

 
(3
)
 
6

Change in unrealized, net
$
4,429

 
$
5,725

 
$
1

 
$
(3,554
)
 
$
6,601

  
Progression of credit losses on fixed maturity securities
The following table is a progression of credit losses on fixed maturity securities that were bifurcated between a credit and non-credit component ($ in thousands):
 
Three months ended March 31,
 
2018
 
2017
Beginning balance
$
753

 
$
557

Additions for:
 
 
 
Previously impaired securities
278

 
0

Newly impaired securities
7

 
10

Reductions for:
 
 
 
Securities sold and paid down
(41
)
 
(24
)
Ending balance
$
996

 
$
542

  
Scheduled maturities of fixed maturity securities
The table below sets forth the scheduled maturities of fixed maturity securities at March 31, 2018, based on their fair values ($ in thousands). We report securities that do not have a single maturity date at average maturity. Actual maturities may differ from contractual maturities because certain securities may be called or prepaid by the issuers.
 
Fair Value
 
Amortized
Cost
Maturity
Securities with Unrealized Gains
 
Securities with Unrealized Losses
 
Securities with No Unrealized Gains or Losses
 
All Fixed Maturity Securities
 
All Fixed Maturity Securities
One year or less
$
9,473

 
$
24,024

 
$
1,353

 
$
34,850

 
$
34,848

After one year through five years
188,968

 
453,537

 
7,187

 
649,692

 
653,913

After five years through ten years
68,219

 
157,207

 
649

 
226,075

 
228,286

After ten years
31,179

 
582

 
0

 
31,761

 
31,510

Mortgage- and asset-backed securities
143,210

 
393,363

 
18,979

 
555,552

 
564,382

Total
$
441,049

 
$
1,028,713

 
$
28,168

 
$
1,497,930

 
$
1,512,939