Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended |
Sep. 30, 2013 | |
Document Information [Line Items] | ' |
Document Type | '10-Q |
Amendment Flag | 'false |
Document Period End Date | 30-Sep-13 |
Document Fiscal Year Focus | '2013 |
Document Fiscal Period Focus | 'Q3 |
Entity Registrant Name | 'SELECTIVE INSURANCE GROUP INC |
Entity Central Index Key | '0000230557 |
Current Fiscal Year End Date | '--12-31 |
Entity Filer Category | 'Large Accelerated Filer |
Entity Common Stock , Shares Outstanding | 55,774,851 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Fixed maturity securities, held-to-maturity – at carrying value (fair value: $448,529 – 2013; $594,661 – 2012) | $421,962 | $554,069 |
Fixed maturity securities, available-for-sale – at fair value (amortized cost: $3,573,751– 2013 ; $3,130,683 – 2012) | 3,633,432 | 3,296,013 |
Equity securities, available-for-sale – at fair value (cost: $158,323 – 2013; $132,441 – 2012) | 180,506 | 151,382 |
Short-term investments (at cost which approximates fair value) | 172,087 | 214,479 |
Other investments | 108,073 | 114,076 |
Total investments | 4,516,060 | 4,330,019 |
Cash | 177 | 210 |
Interest and dividends due or accrued | 36,044 | 35,984 |
Premiums receivable, net of allowance for uncollectible accounts of: $4,513 – 2013; $3,906 – 2012 | 569,214 | 484,388 |
Reinsurance recoverables, net | 555,579 | 1,421,109 |
Prepaid reinsurance premiums | 149,182 | 132,637 |
Current federal income tax | 1,551 | 2,569 |
Deferred federal income tax | 131,603 | 119,136 |
Property and equipment – at cost, net of accumulated depreciation and amortization of: $176,718 – 2013; $169,428 – 2012 | 50,020 | 47,131 |
Deferred policy acquisition costs | 177,211 | 155,523 |
Goodwill | 7,849 | 7,849 |
Other assets | 71,855 | 57,661 |
Total assets | 6,266,345 | 6,794,216 |
Liabilities And Stockholders' Equity | ' | ' |
Reserve for loss and loss expenses | 3,316,291 | 4,068,941 |
Unearned premiums | 1,111,539 | 974,706 |
Notes payable | 392,407 | 307,387 |
Accrued salaries and benefits | 116,682 | 152,396 |
Other liabilities | 205,217 | 200,194 |
Total liabilities | 5,142,136 | 5,703,624 |
Stockholders' Equity: | ' | ' |
Preferred stock of $0 par value per share: Authorized shares: 5,000,000; no shares issued or outstanding | 0 | 0 |
Common stock of $2 par value per share Authorized shares: 360,000,000 Issued: 98,957,182 – 2013; 98,194,224 – 2012 | 197,914 | 196,388 |
Additional paid-in capital | 284,067 | 270,654 |
Retained earnings | 1,184,084 | 1,125,154 |
Accumulated other comprehensive income | 17,083 | 54,040 |
Treasury stock - at cost (shares: 43,182,331 – 2013; 43,030,776 – 2012) | -558,939 | -555,644 |
Total stockholders' equity | 1,124,209 | 1,090,592 |
Commitments and contingencies | ' | ' |
Total liabilities and stockholders' equity | $6,266,345 | $6,794,216 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Fixed maturity securities, held-to-maturity, fair value | $448,529 | $594,661 |
Fixed maturity securities, available-for-sale, amortized cost | 3,573,751 | 3,130,683 |
Equity securities, available-for-sale, cost | 158,323 | 132,441 |
Premiums receivable, allowance for uncollectible accounts | 4,513 | 3,906 |
Property and equipment, accumulated depreciation and amortization | $176,718 | $169,428 |
Preferred stock, par value per share | $0 | $0 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value per share | $2 | $2 |
Common stock, shares authorized | 360,000,000 | 360,000,000 |
Common stock, shares issued | 98,957,182 | 98,194,224 |
Treasury stock, shares | 43,182,331 | 43,030,776 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues: | ' | ' | ' | ' |
Net premiums earned | $437,568 | $406,225 | $1,284,760 | $1,177,266 |
Net investment income earned | 32,457 | 30,650 | 99,330 | 97,284 |
Net realized gains (losses): | ' | ' | ' | ' |
Net realized investment gains (losses) | 14,111 | 1,856 | 25,124 | 6,907 |
Other-than-temporary impairments | -680 | -921 | -3,107 | -1,218 |
Other-than-temporary impairments on fixed maturity securities recognized in other comprehensive income | 0 | -2,023 | -77 | -2,241 |
Total net realized gains (losses) | 13,431 | -1,088 | 21,940 | 3,448 |
Other income | 3,357 | 1,085 | 9,677 | 7,129 |
Total revenues | 486,813 | 436,872 | 1,415,707 | 1,285,127 |
Expenses: | ' | ' | ' | ' |
Loss and loss expense incurred | 283,317 | 272,251 | 832,760 | 813,060 |
Policy acquisition costs | 145,314 | 131,849 | 428,570 | 391,026 |
Interest expense | 5,570 | 4,725 | 16,971 | 14,148 |
Other expenses | 8,127 | 7,733 | 27,852 | 24,080 |
Total expenses | 442,328 | 416,558 | 1,306,153 | 1,242,314 |
Income from continuing operations before federal income tax | 44,485 | 20,314 | 109,554 | 42,813 |
Federal income tax expense (benefit): | ' | ' | ' | ' |
Current | 6,367 | -5,088 | 20,041 | 1,590 |
Deferred | 5,465 | 7,128 | 7,433 | 4,568 |
Total federal income tax expense | 11,832 | 2,040 | 27,474 | 6,158 |
Net income from continuing operations | 32,653 | 18,274 | 82,080 | 36,655 |
Loss on disposal of discontinued operations, net of tax $(538) | 0 | 0 | -997 | 0 |
Net income | $32,653 | $18,274 | $81,083 | $36,655 |
Earnings per share: | ' | ' | ' | ' |
Basic net income from continuing operations | $0.59 | $0.33 | $1.48 | $0.67 |
Basic net loss from discontinued operations | $0 | $0 | ($0.02) | $0 |
Basic net income | $0.59 | $0.33 | $1.46 | $0.67 |
Diluted net income from continuing operations | $0.57 | $0.33 | $1.45 | $0.66 |
Diluted net loss from discontinued operations | $0 | $0 | ($0.02) | $0 |
Diluted net income | $0.57 | $0.33 | $1.43 | $0.66 |
Dividends to stockholders | $0.13 | $0.13 | $0.39 | $0.39 |
Consolidated_Statements_of_Inc1
Consolidated Statements of Income Parenthetical (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Tax effect of loss on disposal of discontinued operations | $538 |
Consolidation_Statements_of_Co
Consolidation Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net income | $32,653 | $18,274 | $81,083 | $36,655 |
Unrealized holding gains (losses) during period | 6,383 | 23,803 | -50,576 | 41,777 |
Non-credit portion of other-than-temporary impairments recognized in other comprehensive income | 0 | 1,315 | 50 | 1,457 |
HTM Securities | -307 | -219 | -1,172 | -1,236 |
Realized (gains) losses on available for sale securities | -8,785 | 674 | -16,107 | -2,243 |
Total unrealized (losses) gains on Investment Securities | -2,708 | 25,579 | -67,796 | 39,932 |
Amount reclassified into Net Income: Net actuarial loss | 513 | 904 | 2,222 | 2,712 |
Amount reclassified into Net Income: Prior service cost | 0 | 24 | 6 | 73 |
Amount reclassified into Net Income: Curtailment expense | 0 | 0 | 11 | 0 |
Total defined benefit pension and post-retirement plans | 513 | 928 | 30,839 | 2,785 |
Comprehensive income | 30,458 | 44,781 | 44,126 | 79,372 |
Accumulated Defined Benefit Plans Adjustment [Member] | ' | ' | ' | ' |
Net actuarial gain | 0 | 0 | 28,600 | 0 |
Total defined benefit pension and post-retirement plans | ' | ' | 2,239 | ' |
Accumulated Other-than-Temporary Impairment [Member] | ' | ' | ' | ' |
Amounts reclassified into Net Income: Non-credit other-than-temporary impairment | 1 | 6 | 9 | 177 |
Other comprehensive (loss) income | ' | ' | 59 | ' |
Accumulated other comprehensive income [Member] | ' | ' | ' | ' |
Amounts reclassified into Net Income: Non-credit other-than-temporary impairment | ' | ' | -15,031 | ' |
Other comprehensive (loss) income | ($2,195) | $26,507 | ($36,957) | $42,717 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common stock [Member] | Additional paid-in capital [Member] | Retained earnings [Member] | Accumulated other comprehensive income [Member] | Treasury stock [Member] |
In Thousands | ||||||
Beginning of year at Dec. 31, 2011 | ' | $194,494 | $257,370 | $1,116,319 | $42,294 | ($552,149) |
Dividend reinvestment plan (shares:49,694 – 2013; 68,640 - 2012) | ' | 137 | 1,064 | ' | ' | ' |
Stock purchase and compensation plans (shares: 712,994 - 2013; 698,723 - 2012) | ' | 1,397 | 9,093 | ' | ' | ' |
Net income | 36,655 | ' | ' | 36,655 | ' | ' |
Dividends to stockholders ($0.39 per share - 2013 and 2012) | ' | ' | ' | -21,859 | ' | ' |
Other comprehensive (loss) income | ' | ' | ' | ' | 42,717 | ' |
Acquisition of treasury stock (shares: 151,5555- 2013; 176,513 - 2012) | ' | ' | ' | ' | ' | -3,154 |
End of period at Sep. 30, 2012 | 1,124,378 | 196,028 | 267,527 | 1,131,115 | 85,011 | -555,303 |
Beginning of year at Jun. 30, 2012 | ' | ' | ' | ' | ' | ' |
Net income | 18,274 | ' | ' | ' | ' | ' |
Other comprehensive (loss) income | ' | ' | ' | ' | 26,507 | ' |
End of period at Sep. 30, 2012 | 1,124,378 | ' | ' | ' | 85,011 | ' |
Beginning of year at Dec. 31, 2012 | 1,090,592 | 196,388 | 270,654 | 1,125,154 | 54,040 | -555,644 |
Dividend reinvestment plan (shares:49,694 – 2013; 68,640 - 2012) | ' | 100 | 1,052 | ' | ' | ' |
Stock purchase and compensation plans (shares: 712,994 - 2013; 698,723 - 2012) | ' | 1,426 | 12,361 | ' | ' | ' |
Net income | 81,083 | ' | ' | 81,083 | ' | ' |
Dividends to stockholders ($0.39 per share - 2013 and 2012) | ' | ' | ' | -22,153 | ' | ' |
Other comprehensive (loss) income | ' | ' | ' | ' | -36,957 | ' |
Acquisition of treasury stock (shares: 151,5555- 2013; 176,513 - 2012) | ' | ' | ' | ' | ' | -3,295 |
End of period at Sep. 30, 2013 | 1,124,209 | 197,914 | 284,067 | 1,184,084 | 17,083 | -558,939 |
Beginning of year at Jun. 30, 2013 | ' | ' | ' | ' | ' | ' |
Net income | 32,653 | ' | ' | ' | ' | ' |
Other comprehensive (loss) income | ' | ' | ' | ' | -2,195 | ' |
End of period at Sep. 30, 2013 | $1,124,209 | ' | ' | ' | $17,083 | ' |
Consolidated_Statements_of_Sto1
Consolidated Statements of Stockholders' Equity (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Dividend reinvestment plan, shares | ' | ' | 49,964 | 68,640 |
Stock purchase and compensation plans, shares | ' | ' | 712,994 | 698,723 |
Dividends to stockholders, per share | $0.13 | $0.13 | $0.39 | $0.39 |
Acquisition of treasury stock, shares | ' | ' | 151,555 | 176,513 |
Preferred stock, par value per share | $0 | $0 | $0 | $0 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 | 0 | 0 |
Series A Preferred Stock [Member] | ' | ' | ' | ' |
Preferred stock, par value per share | $0 | $0 | $0 | $0 |
Preferred stock, shares authorized | 300,000 | 300,000 | 300,000 | 300,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flow (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Operating Activities | ' | ' |
Net income | $81,083 | $36,655 |
Adjustments to Reconcile Net Income to net Cash Provided by Operating Activities [Abstract] | ' | ' |
Depreciation and amortization | 32,861 | 29,386 |
Loss on disposal of discontinued operations | 997 | 0 |
Stock-based compensation expense | 7,428 | 6,263 |
Undistributed losses of equity method investments | 248 | 1,090 |
Net realized gains | -21,940 | -3,448 |
Retirement income plan curtailment expense | 16 | 0 |
Changes in assets and liabilities: | ' | ' |
Increase in reserve for loss and loss expenses, net of reinsurance recoverables | 112,876 | 37,463 |
Increase in unearned premiums, net of prepaid reinsurance and advance premiums | 120,667 | 119,269 |
Decrease (increase) in net federal income taxes | 8,990 | -1,050 |
Increase in premiums receivable | -84,826 | -53,659 |
Increase in deferred policy acquisition costs | -21,688 | -25,744 |
(Decrease) Increase in interest and dividends due or accrued | -45 | 721 |
Increase in accrued salaries and benefits | 8,286 | 5,365 |
Increase in accrued insurance expenses | 6,895 | 299 |
Other-net | -13,859 | 15,144 |
Net adjustments | 156,906 | 131,099 |
Net Cash Provided by Operating Activities | 237,989 | 167,754 |
Investing Activities | ' | ' |
Purchase of fixed maturity securities, available-for-sale | -838,634 | -676,408 |
Purchase of equity securities, available-for-sale | -112,742 | -41,004 |
Purchase of other investments | -7,864 | -9,050 |
Purchase of short-term investments | -1,619,948 | -1,231,519 |
Purchase of subsidiary | 0 | 255 |
Sale of subsidiary | 1,225 | 600 |
Sale of fixed maturity securities, available-for-sale | 6,851 | 92,170 |
Sale of short-term investments | 1,662,340 | 1,263,684 |
Redemption and maturities of fixed maturity securities, held-to-maturity | 87,952 | 91,665 |
Redemption and maturities of fixed maturity securities, available-for-sale | 413,722 | 297,980 |
Sale of equity securities, available-for-sale | 109,399 | 58,749 |
Distributions from other investments | 10,546 | 13,910 |
Sale of Other Investments | 0 | 1 |
Purchase of property and equipment | -10,493 | -9,382 |
Net Cash Used in Investing Activities | -297,646 | -148,349 |
Financing Activities | ' | ' |
Dividends to stockholders | -20,532 | -20,188 |
Acquisition of treasury stock | -3,295 | -3,154 |
Net proceeds from stock purchase and compensation plans | 4,305 | 2,586 |
Proceeds from issuance of notes payable, net of debt issuance costs | 178,435 | 0 |
Repayment of notes payable | -100,000 | 0 |
Excess tax benefits from share-based payment arrangements | 1,479 | 904 |
Repayments of capital lease obligations | -768 | 0 |
Net cash provided by (used in) financing activities | 59,624 | -19,852 |
Net decrease in cash | -33 | -447 |
Cash, beginning of year | 210 | 762 |
Cash, end of period | $177 | $315 |
Organization
Organization | 9 Months Ended | |
Sep. 30, 2013 | ||
Organization [Abstract] | ' | |
Organization | ' | |
Organization | ||
Selective Insurance Group, Inc., through its subsidiaries, (collectively referred to as “we,” “us,” or “our”) offers standard and excess and surplus lines (“E&S”) property and casualty insurance products. Selective Insurance Group, Inc. (referred to as the “Parent”) was incorporated in New Jersey in 1977 and its main offices are located in Branchville, New Jersey. The Parent’s common stock is publicly traded on the NASDAQ Global Select Market under the symbol “SIGI.” | ||
We classify our business into three operating segments: | ||
• | Our Standard Insurance Operations segment, which is comprised of both commercial lines ("Commercial Lines") and personal lines ("Personal Lines") business, sells property and casualty insurance products and services in the standard market, including flood insurance through the National Flood Insurance Program's ("NFIP") write-your-own ("WYO") program; | |
• | Our E&S Insurance Operations segment, which is comprised of Commercial Lines property and casualty insurance products and services that are unavailable in the standard market due to market conditions or characteristics of the insured that are caused by the insured's claim history or the characteristics of their business; and | |
• | Our Investments segment, which invests the premiums collected by our Standard and E&S Insurance Operations, as well as amounts generated through our capital management strategies, which may include the issuance of debt and equity securities. |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Basis of Presentation [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
These interim unaudited consolidated financial statements (“Financial Statements”) include the accounts of the Parent and its subsidiaries, and have been prepared in conformity with: (i) U.S. generally accepted accounting principles (“GAAP”); and (ii) the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The preparation of the Financial Statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported financial statement balances, as well as the disclosure of contingent assets and liabilities. Actual results could differ from those estimates. All significant intercompany accounts and transactions between the Parent and its subsidiaries are eliminated in consolidation. | |
Certain amounts in our prior years' Financial Statements and related notes have been reclassified to conform to the 2013 presentation. Such reclassifications had no effect on our net income, stockholders' equity, or cash flows. | |
These Financial Statements reflect all adjustments that, in our opinion, are normal, recurring, and necessary for a fair presentation of our results of operations and financial condition. The Financial Statements cover the third quarters ended September 30, 2013 (“Third Quarter 2013”) and September 30, 2012 (“Third Quarter 2012”) and the nine-month periods ended September 30, 2013 ("Nine Months 2013") and September 30, 2012 ("Nine Months 2012"). The Financial Statements do not include all of the information and disclosures required by GAAP and the SEC for audited annual financial statements. Results of operations for any interim period are not necessarily indicative of results for a full year. Consequently, the Financial Statements should be read in conjunction with the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2012 (“2012 Annual Report”). |
Adoption_of_Accounting_Pronoun
Adoption of Accounting Pronouncements | 9 Months Ended | |
Sep. 30, 2013 | ||
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' | |
Adoption Of Accounting Pronouncements | ' | |
Adoption of Accounting Pronouncements | ||
In February 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income ("ASU 2013-02"), which adds new disclosure requirements for items reclassified out of Accumulated Other Comprehensive Income ("AOCI"). ASU 2013-02 requires entities to disclose additional information about reclassification adjustments, including: (i) changes in AOCI balances by component; and (ii) significant items reclassified out of AOCI. Prospective application of ASU 2013-02 was effective for fiscal years, and interim periods within those years, beginning after December 15, 2012. We have included the disclosures required by ASU 2013-02 in the notes to our Financial Statements, as required. | ||
In July 2013, the FASB issued ASU No. 2013-11, Income Taxes, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force) ("ASU 2013-11"). ASU 2013-11 applies to all entities with unrecognized tax benefits that also have tax loss or tax credit carryforwards in the same tax jurisdiction as of the reporting date. An unrecognized tax benefit is the difference between a tax position taken or expected to be taken in a tax return and the benefit that is more likely than not sustainable under examination. Under ASU 2013-11, an entity must net an unrecognized tax benefit, or a portion of an unrecognized tax benefit, against deferred tax assets for a net operating loss ("NOL") carryforward, a similar tax loss, or a tax credit carryforward except when: | ||
• | An NOL carryforward, a similar tax loss, or a tax credit carryfoward is not available as of the reporting date under the governing tax law to settle taxes that would result from the disallowance of the tax position; or | |
• | The entity does not intend to use the deferred tax asset for this purpose. | |
If either of these conditions exists, an entity should present an unrecognized tax benefit in the financial statements as a liability and should not net the unrecognized tax benefit with a deferred tax asset. | ||
ASU 2013-11 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this guidance will not impact our financial condition or results of operation. |
Statements_of_Cash_Flow
Statements of Cash Flow | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Supplemental Cash Flow Information [Abstract] | ' | |||||||
Statements of Cash Flow | ' | |||||||
Statements of Cash Flow | ||||||||
Cash paid during Nine Months 2013 and 2012 for interest and federal income taxes was as follows: | ||||||||
Nine Months ended September 30, | ||||||||
($ in thousands) | 2013 | 2012 | ||||||
Cash paid during the period for: | ||||||||
Interest | $ | 13,325 | 11,504 | |||||
Federal income tax | 17,000 | 6,300 | ||||||
At September 30, 2013, included in "Other assets" on the Consolidated Balance Sheets was $7.0 million of cash received from the NFIP, which is restricted to pay flood claims under the WYO program. |
Investments
Investments | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Investments [Abstract] | ' | |||||||||||||||||||
Investments | ' | |||||||||||||||||||
Investments | ||||||||||||||||||||
(a) The amortized cost, net unrealized gains and losses, carrying value, unrecognized holding gains and losses, and fair value of held-to-maturity (“HTM”) fixed maturity securities as of September 30, 2013 and December 31, 2012 were as follows: | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
($ in thousands) | Amortized Cost | Net | Carrying | Unrecognized | Unrecognized Holding | Fair | ||||||||||||||
Unrealized Gains | Value | Holding | Losses | Value | ||||||||||||||||
(Losses) | Gains | |||||||||||||||||||
Foreign government | $ | 5,292 | 151 | 5,443 | 122 | — | 5,565 | |||||||||||||
Obligations of state and political subdivisions | 372,281 | 4,065 | 376,346 | 19,297 | — | 395,643 | ||||||||||||||
Corporate securities | 29,228 | (466 | ) | 28,762 | 3,015 | — | 31,777 | |||||||||||||
Asset-backed securities (“ABS”) | 5,890 | (755 | ) | 5,135 | 776 | — | 5,911 | |||||||||||||
Commercial mortgage-backed securities (“CMBS”) | 7,241 | (965 | ) | 6,276 | 3,357 | — | 9,633 | |||||||||||||
Total HTM fixed maturity securities | $ | 419,932 | 2,030 | 421,962 | 26,567 | — | 448,529 | |||||||||||||
December 31, 2012 | ||||||||||||||||||||
($ in thousands) | Amortized Cost | Net | Carrying | Unrecognized | Unrecognized Holding | Fair | ||||||||||||||
Unrealized Gains | Value | Holding | Losses | Value | ||||||||||||||||
(Losses) | Gains | |||||||||||||||||||
Foreign government | $ | 5,292 | 212 | 5,504 | 367 | — | 5,871 | |||||||||||||
Obligations of state and political subdivisions | 491,180 | 6,769 | 497,949 | 28,996 | (23 | ) | 526,922 | |||||||||||||
Corporate securities | 38,285 | (812 | ) | 37,473 | 4,648 | — | 42,121 | |||||||||||||
ABS | 6,980 | (1,052 | ) | 5,928 | 1,170 | — | 7,098 | |||||||||||||
CMBS | 8,406 | (1,191 | ) | 7,215 | 5,434 | — | 12,649 | |||||||||||||
Total HTM fixed maturity securities | $ | 550,143 | 3,926 | 554,069 | 40,615 | (23 | ) | 594,661 | ||||||||||||
Unrecognized holding gains and losses of HTM securities are not reflected in the Financial Statements, as they represent fair value fluctuations from the later of: (i) the date a security is designated as HTM; or (ii) the date that an other-than-temporary impairment (“OTTI”) charge is recognized on an HTM security, through the date of the balance sheet. Our HTM securities had an average duration of 2.3 years as of September 30, 2013. | ||||||||||||||||||||
During Nine Months 2013, 16 securities with a carrying value of $39.6 million and a net unrecognized gain position of $1.4 million, were reclassified from an HTM designation to an available-for-sale (“AFS”) designation due to credit rating downgrades by Moody’s Investors Services ("Moody's") and/or Standard and Poor's Financial Services (“S&P”). These unexpected rating downgrades raised concerns about the issuers’ credit worthiness, which changed our intention to hold these securities to maturity. | ||||||||||||||||||||
(b) The cost/amortized cost, unrealized gains and losses, and fair value of AFS securities as of September 30, 2013 and December 31, 2012 were as follows: | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
($ in thousands) | Cost/ | Unrealized | Unrealized | Fair | ||||||||||||||||
Amortized | Gains | Losses | Value | |||||||||||||||||
Cost | ||||||||||||||||||||
U.S. government and government agencies | $ | 169,163 | 11,953 | (330 | ) | 180,786 | ||||||||||||||
Foreign government | 28,797 | 996 | (84 | ) | 29,709 | |||||||||||||||
Obligations of states and political subdivisions | 918,403 | 27,705 | (16,610 | ) | 929,498 | |||||||||||||||
Corporate securities | 1,629,698 | 47,932 | (14,479 | ) | 1,663,151 | |||||||||||||||
ABS | 150,179 | 1,063 | (476 | ) | 150,766 | |||||||||||||||
CMBS1 | 152,464 | 2,747 | (3,263 | ) | 151,948 | |||||||||||||||
Residential mortgage-backed | 525,047 | 8,932 | (6,405 | ) | 527,574 | |||||||||||||||
securities (“RMBS”)2 | ||||||||||||||||||||
AFS fixed maturity securities | 3,573,751 | 101,328 | (41,647 | ) | 3,633,432 | |||||||||||||||
AFS equity securities | 158,323 | 24,061 | (1,878 | ) | 180,506 | |||||||||||||||
Total AFS securities | $ | 3,732,074 | 125,389 | (43,525 | ) | 3,813,938 | ||||||||||||||
December 31, 2012 | ||||||||||||||||||||
($ in thousands) | Cost/ | Unrealized | Unrealized | Fair | ||||||||||||||||
Amortized | Gains | Losses | Value | |||||||||||||||||
Cost | ||||||||||||||||||||
U.S. government and government agencies | $ | 241,874 | 17,219 | (1 | ) | 259,092 | ||||||||||||||
Foreign government | 28,813 | 1,540 | (124 | ) | 30,229 | |||||||||||||||
Obligations of states and political subdivisions | 773,953 | 44,398 | (327 | ) | 818,024 | |||||||||||||||
Corporate securities | 1,368,954 | 81,696 | (402 | ) | 1,450,248 | |||||||||||||||
ABS | 126,330 | 2,319 | (9 | ) | 128,640 | |||||||||||||||
CMBS1 | 133,763 | 4,572 | (1,216 | ) | 137,119 | |||||||||||||||
RMBS2 | 456,996 | 15,961 | (296 | ) | 472,661 | |||||||||||||||
AFS fixed maturity securities | 3,130,683 | 167,705 | (2,375 | ) | 3,296,013 | |||||||||||||||
AFS equity securities | 132,441 | 19,400 | (459 | ) | 151,382 | |||||||||||||||
Total AFS securities | $ | 3,263,124 | 187,105 | (2,834 | ) | 3,447,395 | ||||||||||||||
1 CMBS includes government guaranteed agency securities with a fair value of $35.5 million at September 30, 2013 and $48.9 million at December 31, 2012. | ||||||||||||||||||||
2 RMBS includes government guaranteed agency securities with a fair value of $61.4 million at September 30, 2013 and $91.0 million at December 31, 2012. | ||||||||||||||||||||
Unrealized gains and losses of AFS securities represent fair value fluctuations from the later of: (i) the date a security is designated as AFS; or (ii) the date that an OTTI charge is recognized on an AFS security, through the date of the balance sheet. These unrealized gains and losses are recorded in AOCI on the Consolidated Balance Sheets. | ||||||||||||||||||||
(c) The following tables summarize, for all securities in a net unrealized/unrecognized loss position at September 30, 2013 and December 31, 2012, the fair value and gross pre-tax net unrealized/unrecognized loss by asset class and by length of time those securities have been in a net loss position: | ||||||||||||||||||||
September 30, 2013 | Less than 12 months | 12 months or longer | ||||||||||||||||||
($ in thousands) | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||||||||||
Losses1 | Losses1 | |||||||||||||||||||
AFS securities | ||||||||||||||||||||
U.S. government and government agencies | $ | 13,173 | (327 | ) | 510 | (3 | ) | |||||||||||||
Foreign government | 1,056 | (12 | ) | 2,925 | (72 | ) | ||||||||||||||
Obligations of states and political subdivisions | 417,866 | (16,610 | ) | — | — | |||||||||||||||
Corporate securities | 422,816 | (14,200 | ) | 3,837 | (279 | ) | ||||||||||||||
ABS | 87,786 | (471 | ) | 302 | (5 | ) | ||||||||||||||
CMBS | 69,322 | (2,771 | ) | 2,030 | (492 | ) | ||||||||||||||
RMBS | 202,428 | (6,231 | ) | 1,579 | (174 | ) | ||||||||||||||
Total fixed maturity securities | 1,214,447 | (40,622 | ) | 11,183 | (1,025 | ) | ||||||||||||||
Equity securities | 35,275 | (1,878 | ) | — | — | |||||||||||||||
Subtotal | $ | 1,249,722 | (42,500 | ) | 11,183 | (1,025 | ) | |||||||||||||
Less than 12 months | 12 months or longer | |||||||||||||||||||
($ in thousands) | Fair | Unrealized | Unrecognized | Fair | Unrealized | Unrecognized | ||||||||||||||
Value | Losses1 | Gains2 | Value | Losses1 | Gains2 | |||||||||||||||
HTM securities | ||||||||||||||||||||
Obligations of states and political subdivisions | $ | 492 | (20 | ) | 19 | 571 | (24 | ) | 17 | |||||||||||
ABS | — | — | — | 2,476 | (690 | ) | 642 | |||||||||||||
Subtotal | $ | 492 | (20 | ) | 19 | 3,047 | (714 | ) | 659 | |||||||||||
Total AFS and HTM | $ | 1,250,214 | (42,520 | ) | 19 | 14,230 | (1,739 | ) | 659 | |||||||||||
December 31, 2012 | Less than 12 months | 12 months or longer | ||||||||||||||||||
($ in thousands) | Fair | Unrealized | Fair Value | Unrealized | ||||||||||||||||
Value | Losses1 | Losses1 | ||||||||||||||||||
AFS securities | ||||||||||||||||||||
U.S. government and government agencies | $ | 518 | (1 | ) | — | — | ||||||||||||||
Foreign government | — | — | 2,871 | (124 | ) | |||||||||||||||
Obligations of states and political subdivisions | 32,383 | (327 | ) | — | — | |||||||||||||||
Corporate securities | 50,880 | (402 | ) | — | — | |||||||||||||||
ABS | 9,137 | (9 | ) | — | — | |||||||||||||||
CMBS | 7,637 | (19 | ) | 11,830 | (1,197 | ) | ||||||||||||||
RMBS | 8,710 | (59 | ) | 5,035 | (237 | ) | ||||||||||||||
Total fixed maturity securities | 109,265 | (817 | ) | 19,736 | (1,558 | ) | ||||||||||||||
Equity securities | 15,901 | (459 | ) | — | — | |||||||||||||||
Subtotal | $ | 125,166 | (1,276 | ) | 19,736 | (1,558 | ) | |||||||||||||
Less than 12 months | 12 months or longer | |||||||||||||||||||
($ in thousands) | Fair | Unrealized | Unrecognized | Fair | Unrealized | Unrecognized | ||||||||||||||
Value | Losses1 | Gains2 | Value | Losses1 | Gains2 | |||||||||||||||
HTM securities | ||||||||||||||||||||
Obligations of states and political subdivisions | $ | 1,218 | (33 | ) | 29 | 1,108 | (47 | ) | 38 | |||||||||||
ABS | — | — | — | 2,860 | (840 | ) | 753 | |||||||||||||
Subtotal | 1,218 | (33 | ) | 29 | 3,968 | (887 | ) | 791 | ||||||||||||
Total AFS and HTM | $ | 126,384 | (1,309 | ) | 29 | 23,704 | (2,445 | ) | 791 | |||||||||||
1 Gross unrealized losses include non-OTTI unrealized amounts and OTTI losses recognized in AOCI. In addition, this column includes remaining unrealized gain or loss amounts on securities that were transferred to an HTM designation in the first quarter of 2009 for those securities that are in a net unrealized/unrecognized loss position. | ||||||||||||||||||||
2 Unrecognized gains represent fair value fluctuations from the later of: (i) the date a security is designated as HTM; or (ii) the date that an OTTI charge is recognized on an HTM security. | ||||||||||||||||||||
As evidenced by the table below, our net unrealized/unrecognized loss positions increased by $40.6 million as of September 30, 2013 compared to December 31, 2012 as follows: | ||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||
Number of | % of Market/Book | Unrealized/ | Number of | % of | Unrealized/ | |||||||||||||||
Issues | Unrecognized Loss | Issues | Market/Book | Unrecognized | ||||||||||||||||
Loss | ||||||||||||||||||||
501 | 80% - 99% | $ | 43,295 | 100 | 80% - 99% | $ | 2,701 | |||||||||||||
— | 60% - 79% | — | 1 | 60% - 79% | 233 | |||||||||||||||
1 | 40% - 59% | 286 | — | 40% - 59% | — | |||||||||||||||
— | 20% - 39% | — | — | 20% - 39% | — | |||||||||||||||
— | 0% - 19% | — | — | 0% - 19% | — | |||||||||||||||
$ | 43,581 | $ | 2,934 | |||||||||||||||||
We have reviewed the securities in the tables above in accordance with our OTTI policy, as described in Note 2. “Summary of Significant Accounting Policies” in Item 8. “Financial Statements and Supplementary Data.” of our 2012 Annual Report. | ||||||||||||||||||||
At September 30, 2013, we had 502 securities in an aggregate unrealized/unrecognized loss position of $43.6 million, $1.1 million of which have been in a loss position for more than 12 months. At December 31, 2012, we had 101 securities in an aggregate unrealized/unrecognized loss position of $2.9 million, $1.7 million of which had been in a loss position for more than 12 months. During Nine Months 2013, interest rates on the 10-year U.S. Treasury Note rose by 85 basis points. This interest rate movement has negatively impacted our fixed maturity securities portfolio's valuation, thus increasing the number of securities in a loss position and the corresponding dollar amount of unrealized losses. The increase in the unrealized losses does not correspond to any issuer specific credit concerns; however, it does reflect an expected reduction in market value due to higher market interest rates. For a discussion regarding the sensitivity of interest rate movements and the related impacts on the fixed maturity securities portfolio, refer to Item 7A. "Quantitative and Qualitative Disclosures About Market Risk" in our 2012 Annual Report. | ||||||||||||||||||||
We do not intend to sell any securities in an unrealized/unrecognized loss position, nor do we believe we will be required to sell these securities, and therefore we have concluded that they are temporarily impaired as of September 30, 2013. This conclusion reflects our current judgment as to the financial position and future prospects of the entity that issued the investment security and underlying collateral. If our judgment about an individual security changes in the future, we may ultimately record a credit loss after having originally concluded that one did not exist, which could have a material impact on our net income and financial position in future periods. | ||||||||||||||||||||
(d) Fixed maturity securities at September 30, 2013, by contractual maturity, are shown below. Mortgage-backed securities ("MBS") are included in the maturity tables using the estimated average life of each security. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations, with or without call or prepayment penalties. | ||||||||||||||||||||
Listed below are HTM fixed maturity securities at September 30, 2013: | ||||||||||||||||||||
($ in thousands) | Carrying Value | Fair Value | ||||||||||||||||||
Due in one year or less | $ | 72,099 | 74,953 | |||||||||||||||||
Due after one year through five years | 312,318 | 331,927 | ||||||||||||||||||
Due after five years through 10 years | 34,747 | 38,176 | ||||||||||||||||||
Due after 10 years | 2,798 | 3,473 | ||||||||||||||||||
Total HTM fixed maturity securities | $ | 421,962 | 448,529 | |||||||||||||||||
Listed below are AFS fixed maturity securities at September 30, 2013: | ||||||||||||||||||||
($ in thousands) | Fair Value | |||||||||||||||||||
Due in one year or less | $ | 324,743 | ||||||||||||||||||
Due after one year through five years | 1,951,770 | |||||||||||||||||||
Due after five years through 10 years | 1,329,795 | |||||||||||||||||||
Due after 10 years | 27,124 | |||||||||||||||||||
Total AFS fixed maturity securities | $ | 3,633,432 | ||||||||||||||||||
(e) The following table summarizes our other investment portfolio by strategy and the remaining commitment amount associated with each strategy: | ||||||||||||||||||||
Other Investments | Carrying Value | September 30, | ||||||||||||||||||
2013 | ||||||||||||||||||||
($ in thousands) | September 30, | December 31, | Remaining Commitment | |||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Alternative Investments | ||||||||||||||||||||
Secondary private equity | $ | 25,954 | 28,032 | 7,703 | ||||||||||||||||
Private equity | 18,951 | 18,344 | 10,502 | |||||||||||||||||
Energy/power generation | 17,049 | 18,640 | 7,076 | |||||||||||||||||
Mezzanine financing | 12,921 | 12,692 | 18,796 | |||||||||||||||||
Real estate | 12,385 | 11,751 | 10,205 | |||||||||||||||||
Distressed debt | 11,911 | 12,728 | 2,964 | |||||||||||||||||
Venture capital | 7,018 | 7,477 | 400 | |||||||||||||||||
Total alternative investments | 106,189 | 109,664 | 57,646 | |||||||||||||||||
Other securities | 1,884 | 4,412 | 1,289 | |||||||||||||||||
Total other investments | $ | 108,073 | 114,076 | 58,935 | ||||||||||||||||
For a description of our seven alternative investment strategies, as well as information regarding redemption, restrictions, and fund liquidations, refer to Note 5. “Investments” in Item 8. “Financial Statements and Supplementary Data.” of our 2012 Annual Report. | ||||||||||||||||||||
The following table sets forth aggregated summarized financial information for our other investments portfolio that is carried under the equity method of accounting. The last line of the table below reflects our share of the aggregate income, which is the portion included in our Financial Statements. As the majority of these investments report results to us on a quarter lag, the summarized financial statement information for the nine-month periods ended June 30 is as follows: | ||||||||||||||||||||
Income Statement Information | Quarter ended June 30, | Nine Months ended June 30, | ||||||||||||||||||
($ in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Net investment income | $ | 97.8 | 80 | 352.8 | 170.1 | |||||||||||||||
Realized gains | 162.8 | 19.6 | 762.5 | 1,004.90 | ||||||||||||||||
Net change in unrealized depreciation | 104.8 | (117.1 | ) | 85.9 | (551.1 | ) | ||||||||||||||
Net income (loss) | $ | 365.4 | (17.5 | ) | 1,201.20 | 623.9 | ||||||||||||||
Selective’s insurance subsidiaries’ other investments income | $ | 2.6 | 0.5 | 10.1 | 5.5 | |||||||||||||||
(f) At September 30, 2013, we had fixed maturity securities, with a carrying value of $61.9 million, that were pledged as collateral for our outstanding borrowing of $58.0 million with the Federal Home Loan Bank of Indianapolis (“FHLBI”). This outstanding borrowing is included in “Notes payable” on the Consolidated Balance Sheets. In accordance with the terms of our agreement with the FHLBI, we retain all rights regarding these securities, which are included in the “U.S. government and government agencies,” “RMBS,” and “CMBS” classifications of our AFS fixed maturity securities portfolio. | ||||||||||||||||||||
Also at September 30, 2013, we had fixed maturity securities, with a carrying value of $21.3 million, and short-term investments with a carrying value of $1.7 million, that collateralize reinsurance obligations related to our 2011 acquisition of our E&S book of business. Similar to the FHLBI collateral discussion above, we retain all rights regarding these investments. These fixed maturity securities are included in the "Municipal," "Corporate," "U.S. government and government agencies," "RMBS," and "ABS" classifications of our AFS fixed maturity securities portfolio. | ||||||||||||||||||||
In addition, fixed maturity securities with a carrying value of $27.0 million were on deposit with various state and regulatory agencies to comply with insurance laws. We retain all rights regarding these securities, which are primarily included in the "U.S. government and government agencies" classification of our AFS fixed maturity securities portfolio. | ||||||||||||||||||||
(g) The components of net investment income earned for the periods indicated were as follows: | ||||||||||||||||||||
Quarter ended September 30, | Nine Months ended September 30, | |||||||||||||||||||
($ in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Fixed maturity securities | $ | 30,569 | 30,839 | 90,956 | 93,948 | |||||||||||||||
Equity securities | 1,341 | 1,268 | 4,422 | 3,785 | ||||||||||||||||
Short-term investments | 21 | 36 | 102 | 103 | ||||||||||||||||
Other investments | 2,639 | 497 | 10,110 | 5,460 | ||||||||||||||||
Miscellaneous income | — | 41 | — | 105 | ||||||||||||||||
Investment expenses | (2,113 | ) | (2,031 | ) | (6,260 | ) | (6,117 | ) | ||||||||||||
Net investment income earned | $ | 32,457 | 30,650 | 99,330 | 97,284 | |||||||||||||||
Net investment income before tax increased in both Third Quarter and Nine Months 2013 compared to the same periods last year, primarily due to higher income from our alternative investments. Partially offsetting this increase in Nine Months 2013 is a decrease in fixed maturity securities income due to lower investment yields than in the prior year period. | ||||||||||||||||||||
(h) The following tables summarize OTTI by asset type for the periods indicated: | ||||||||||||||||||||
Third Quarter 2013 | Gross | Included in Other | Recognized in | |||||||||||||||||
Comprehensive | Earnings | |||||||||||||||||||
($ in thousands) | Income (“OCI”) | |||||||||||||||||||
Equity securities | $ | 680 | — | 680 | ||||||||||||||||
OTTI losses | $ | 680 | — | 680 | ||||||||||||||||
Third Quarter 2012 | Gross | Included in OCI | Recognized in Earnings | |||||||||||||||||
($ in thousands) | ||||||||||||||||||||
AFS fixed maturity securities | ||||||||||||||||||||
ABS | $ | 36 | — | 36 | ||||||||||||||||
CMBS | (1,504 | ) | (2,023 | ) | 519 | |||||||||||||||
Total AFS fixed maturities | (1,468 | ) | (2,023 | ) | 555 | |||||||||||||||
Equity securities | 2,389 | — | 2,389 | |||||||||||||||||
OTTI losses | $ | 921 | (2,023 | ) | 2,944 | |||||||||||||||
Nine Months 2013 | Gross | Included in OCI | Recognized in | |||||||||||||||||
($ in thousands) | Earnings | |||||||||||||||||||
HTM fixed maturity securities: | ||||||||||||||||||||
ABS | $ | (44 | ) | (47 | ) | 3 | ||||||||||||||
Total HTM fixed maturity securities | (44 | ) | (47 | ) | 3 | |||||||||||||||
AFS fixed maturity securities: | ||||||||||||||||||||
RMBS | (22 | ) | (30 | ) | 8 | |||||||||||||||
Total AFS fixed maturity securities | (22 | ) | (30 | ) | 8 | |||||||||||||||
Equity securities | 1,326 | — | 1,326 | |||||||||||||||||
Total AFS securities | 1,304 | (30 | ) | 1,334 | ||||||||||||||||
Other investments | 1,847 | — | 1,847 | |||||||||||||||||
OTTI losses | $ | 3,107 | (77 | ) | 3,184 | |||||||||||||||
Nine Months 2012 | Gross | Included in OCI | Recognized in | |||||||||||||||||
($ in thousands) | Earnings | |||||||||||||||||||
AFS fixed maturity securities | ||||||||||||||||||||
ABS | $ | 98 | — | 98 | ||||||||||||||||
CMBS | (1,396 | ) | (2,023 | ) | 627 | |||||||||||||||
RMBS | (44 | ) | (218 | ) | 174 | |||||||||||||||
Total AFS fixed maturity securities | (1,342 | ) | (2,241 | ) | 899 | |||||||||||||||
Equity securities | 2,560 | — | 2,560 | |||||||||||||||||
OTTI losses | $ | 1,218 | (2,241 | ) | 3,459 | |||||||||||||||
The majority of the OTTI charges in Nine Months 2013 relate to an investment in a limited liability company within our other investments portfolio that has sustained significant losses for which we do not anticipate recovery. In addition, OTTI charges on our equity portfolio include: (i) $0.7 million recorded in Third Quarter 2013 on securities that we did not believe would recover in the near term; and (ii) $0.6 million recorded within the first half of 2013 primarily related to securities for which we had the intent to sell. For a discussion of our evaluation for OTTI of fixed maturity securities, short-term investments, equity securities and other investments, refer to Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data" of our 2012 Annual Report. | ||||||||||||||||||||
The following tables set forth, for the periods indicated, credit loss impairments on fixed maturity securities for which a portion of the OTTI charge was recognized in OCI, and the corresponding changes in such amounts: | ||||||||||||||||||||
Quarter ended September 30, | ||||||||||||||||||||
($ in thousands) | 2013 | 2012 | ||||||||||||||||||
Balance, beginning of period | $ | 7,488 | 6,775 | |||||||||||||||||
Addition for the amount related to credit loss for which an OTTI was not previously recognized | — | — | ||||||||||||||||||
Reductions for securities sold during the period | — | — | ||||||||||||||||||
Reductions for securities for which the amount previously recognized in OCI was recognized in earnings because of intention or potential requirement to sell before recovery of amortized cost | — | — | ||||||||||||||||||
Reductions for securities for which the entire amount previously recognized in OCI was recognized in earnings due to a decrease in cash flows expected | — | — | ||||||||||||||||||
Additional increases to the amount related to credit loss for which an OTTI was previously recognized | — | 519 | ||||||||||||||||||
Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected | — | — | ||||||||||||||||||
Balance, end of period | $ | 7,488 | 7,294 | |||||||||||||||||
Nine Months ended September 30, | ||||||||||||||||||||
($ in thousands) | 2013 | 2012 | ||||||||||||||||||
Balance, beginning of period | $ | 7,477 | 6,602 | |||||||||||||||||
Addition for the amount related to credit loss for which an OTTI was not previously recognized | — | — | ||||||||||||||||||
Reductions for securities sold during the period | — | — | ||||||||||||||||||
Reductions for securities for which the amount previously recognized in OCI was recognized in earnings because of intention or potential requirement to sell before recovery of amortized cost | — | — | ||||||||||||||||||
Reductions for securities for which the entire amount previously recognized in OCI was recognized in earnings due to a decrease in cash flows expected | — | — | ||||||||||||||||||
Additional increases to the amount related to credit loss for which an OTTI was previously recognized | 11 | 692 | ||||||||||||||||||
Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected | — | — | ||||||||||||||||||
Balance, end of period | $ | 7,488 | 7,294 | |||||||||||||||||
(i) The components of net realized gains, excluding OTTI charges, for the periods indicated were as follows: | ||||||||||||||||||||
Quarter ended September 30, | Nine Months ended September 30, | |||||||||||||||||||
($ in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
HTM fixed maturity securities | ||||||||||||||||||||
Gains | $ | 32 | 40 | 35 | 195 | |||||||||||||||
Losses | (37 | ) | (90 | ) | (86 | ) | (196 | ) | ||||||||||||
AFS fixed maturity securities | ||||||||||||||||||||
Gains | 662 | 2,168 | 2,580 | 2,941 | ||||||||||||||||
Losses | (31 | ) | (262 | ) | (330 | ) | (379 | ) | ||||||||||||
AFS equity securities | ||||||||||||||||||||
Gains | 13,801 | — | 24,272 | 4,775 | ||||||||||||||||
Losses | (236 | ) | — | (407 | ) | (428 | ) | |||||||||||||
Short-term investments | ||||||||||||||||||||
Losses | — | — | — | (2 | ) | |||||||||||||||
Other Investments | ||||||||||||||||||||
Gains | — | — | — | 1 | ||||||||||||||||
Losses | (80 | ) | — | (940 | ) | — | ||||||||||||||
Total other net realized investment gains | 14,111 | 1,856 | 25,124 | 6,907 | ||||||||||||||||
Total OTTI charges recognized in earnings | (680 | ) | (2,944 | ) | (3,184 | ) | (3,459 | ) | ||||||||||||
Total net realized gains (losses) | $ | 13,431 | (1,088 | ) | 21,940 | 3,448 | ||||||||||||||
Realized gains and losses on the sale of investments are determined on the basis of the cost of the specific investments sold. Of the $14.1 million and $25.1 million in net realized gains in Third Quarter and Nine Months 2013, $13.5 million and $19.1 million, respectively, were related to the sale of AFS equity securities due to the rebalancing of our high-dividend yield strategy holdings within our equity portfolio. In addition, $4.7 million in net realized gains in Nine Months 2013 related to the sale of a private equity security. Of the $6.9 million of net realized gains in Nine Months 2012, $4.3 million were related to the sale of AFS equity securities due to the rebalancing of our high dividend yield strategy holdings within our equity portfolio. | ||||||||||||||||||||
Proceeds from the sale of AFS securities were $67.2 million in Third Quarter 2013 and $116.3 million in Nine Months 2013, and $55.0 million and $150.9 million in the same periods a year ago. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||
The following table presents the carrying amounts and estimated fair values of our financial instruments as of September 30, 2013 and December 31, 2012: | |||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||
($ in thousands) | Carrying Amount | Fair | Carrying Amount | Fair | |||||||||||||||||||
Value | Value | ||||||||||||||||||||||
Financial Assets | |||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||
HTM | $ | 421,962 | 448,529 | 554,069 | 594,661 | ||||||||||||||||||
AFS | 3,633,432 | 3,633,432 | 3,296,013 | 3,296,013 | |||||||||||||||||||
Equity securities, AFS | 180,506 | 180,506 | 151,382 | 151,382 | |||||||||||||||||||
Short-term investments | 172,087 | 172,087 | 214,479 | 214,479 | |||||||||||||||||||
Receivable for proceeds related to sale of Selective HR Solution (“Selective HR”) | — | — | 2,705 | 2,705 | |||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||
Notes payable: | |||||||||||||||||||||||
2.90% borrowings from FHLBI | 13,000 | 13,392 | 13,000 | 13,595 | |||||||||||||||||||
1.25% borrowings from FHLBI | 45,000 | 45,171 | 45,000 | 45,590 | |||||||||||||||||||
7.50% Junior Notes | — | — | 100,000 | 101,480 | |||||||||||||||||||
6.70% Senior Notes | 99,492 | 100,200 | 99,475 | 107,707 | |||||||||||||||||||
7.25% Senior Notes | 49,915 | 51,858 | 49,912 | 52,689 | |||||||||||||||||||
5.875% Senior Notes | 185,000 | 153,550 | — | — | |||||||||||||||||||
Total notes payable | $ | 392,407 | 364,171 | 307,387 | 321,061 | ||||||||||||||||||
The fair values of our financial assets and liabilities are generated using various valuation techniques and are placed into the fair value hierarchy considering the following: (i) the highest priority is given to quoted prices in active markets for identical assets (Level 1); (ii) the next highest priority is given to quoted prices in markets that are not active or inputs that are observable either directly or indirectly, including quoted prices for similar assets in markets that are not active and other inputs that can be derived principally from, or corroborated by, observable market data for substantially the full term of the assets (Level 2); and (iii) the lowest priority is given to unobservable inputs supported by little or no market activity and that reflect our assumptions about the exit price, including assumptions that market participants would use in pricing the asset (Level 3). An asset or liability's classification within the fair value hierarchy is based on the lowest level of significant input to its valuation. Transfers between levels in the fair value hierarchy are recognized at the end of the reporting period. | |||||||||||||||||||||||
For a discussion of the techniques used to value the majority of our financial assets and liabilities, refer to Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2012 Annual Report. The 5.875% Senior Notes were valued based on a quoted market price (Level 1). The fair value at September 30, 2013 of the 6.70% Senior Notes due November 1, 2035 is based on a matrix pricing model prepared by an external pricing service due to the availability and nature of the pricing at the valuation date (Level 2). | |||||||||||||||||||||||
The following tables provide quantitative disclosures of our financial assets that were measured at fair value at September 30, 2013 and December 31, 2012: | |||||||||||||||||||||||
September 30, 2013 | Fair Value Measurements Using | ||||||||||||||||||||||
($ in thousands) | Assets | Quoted Prices in | Significant Other | Significant Unobservable | |||||||||||||||||||
Measured at | Active Markets for | Observable | Inputs | ||||||||||||||||||||
Fair Value | Identical Assets/ | Inputs | (Level 3) | ||||||||||||||||||||
at 9/30/13 | Liabilities (Level 1)1 | (Level 2)1 | |||||||||||||||||||||
Description | |||||||||||||||||||||||
Measured on a recurring basis: | |||||||||||||||||||||||
AFS: | |||||||||||||||||||||||
U.S. government and government agencies | $ | 180,786 | 50,871 | 129,915 | — | ||||||||||||||||||
Foreign government | 29,709 | — | 29,709 | — | |||||||||||||||||||
Obligations of states and political subdivisions | 929,498 | — | 929,498 | — | |||||||||||||||||||
Corporate securities | 1,663,151 | — | 1,663,151 | — | |||||||||||||||||||
ABS | 150,766 | — | 144,804 | 5,962 | |||||||||||||||||||
CMBS | 151,948 | — | 150,339 | 1,609 | |||||||||||||||||||
RMBS | 527,574 | — | 527,574 | — | |||||||||||||||||||
Total AFS fixed maturity securities | 3,633,432 | 50,871 | 3,574,990 | 7,571 | |||||||||||||||||||
Equity securities | 180,506 | 177,606 | — | 2,900 | |||||||||||||||||||
Short-term investments | 172,087 | 172,087 | — | — | |||||||||||||||||||
Total assets | $ | 3,986,025 | 400,564 | 3,574,990 | 10,471 | ||||||||||||||||||
1 | There were no transfers of securities between Level 1 and Level 2. | ||||||||||||||||||||||
December 31, 2012 | Fair Value Measurements Using | ||||||||||||||||||||||
($ in thousands) | Assets | Quoted Prices in | Significant | Significant Unobservable | |||||||||||||||||||
Measured at | Active Markets for | Other Observable | Inputs | ||||||||||||||||||||
Fair Value | Identical Assets/Liabilities | Inputs | (Level 3) | ||||||||||||||||||||
at 12/31/12 | (Level 1)1 | (Level 2)1 | |||||||||||||||||||||
Description | |||||||||||||||||||||||
Measured on a recurring basis: | |||||||||||||||||||||||
AFS: | |||||||||||||||||||||||
U.S. government and government agencies | $ | 259,092 | 115,861 | 123,442 | 19,789 | ||||||||||||||||||
Foreign government | 30,229 | — | 30,229 | — | |||||||||||||||||||
Obligations of states and political subdivisions | 818,024 | — | 818,024 | — | |||||||||||||||||||
Corporate securities | 1,450,247 | — | 1,447,301 | 2,946 | |||||||||||||||||||
ABS | 128,640 | — | 122,572 | 6,068 | |||||||||||||||||||
CMBS | 137,119 | — | 129,957 | 7,162 | |||||||||||||||||||
RMBS | 472,662 | — | 472,662 | — | |||||||||||||||||||
Total AFS fixed maturity securities | 3,296,013 | 115,861 | 3,144,187 | 35,965 | |||||||||||||||||||
Equity securities | 151,382 | 147,775 | — | 3,607 | |||||||||||||||||||
Short-term investments | 214,479 | 214,479 | — | — | |||||||||||||||||||
Receivable for proceeds related to sale of Selective HR | 2,705 | — | — | 2,705 | |||||||||||||||||||
Total assets | $ | 3,664,579 | 478,115 | 3,144,187 | 42,277 | ||||||||||||||||||
1 | There were no transfers of securities between Level 1 and Level 2. | ||||||||||||||||||||||
The following tables provide a summary of the changes in the fair value of securities measured using Level 3 inputs and related quantitative information for the periods ended September 30, 2013 and December 31, 2012: | |||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||
($ in thousands) | Government | Corporate | ABS | CMBS | Equity | Receivable for | Total | ||||||||||||||||
Proceeds | |||||||||||||||||||||||
Related to Sale | |||||||||||||||||||||||
of Selective HR | |||||||||||||||||||||||
Fair value, December 31, 2012 | $ | 19,789 | 2,946 | 6,068 | 7,162 | 3,607 | 2,705 | 42,277 | |||||||||||||||
Total net (losses) gains for the period included in: | |||||||||||||||||||||||
OCI1 | (537 | ) | (7 | ) | (106 | ) | 681 | 3,935 | — | 3,966 | |||||||||||||
Net income2,3 | (76 | ) | — | — | 354 | — | (1,480 | ) | (1,202 | ) | |||||||||||||
Purchases | — | — | — | — | — | — | — | ||||||||||||||||
Sales | — | — | — | — | — | — | — | ||||||||||||||||
Issuances | — | — | — | — | — | — | — | ||||||||||||||||
Settlements | (1,847 | ) | (168 | ) | — | (1,603 | ) | — | (225 | ) | (3,843 | ) | |||||||||||
Transfers into Level 3 | — | — | — | — | — | — | — | ||||||||||||||||
Transfers out of Level 3 | (17,329 | ) | (2,771 | ) | — | (4,985 | ) | (4,642 | ) | (1,000 | ) | (30,727 | ) | ||||||||||
Fair value, September 30, 2013 | $ | — | — | 5,962 | 1,609 | 2,900 | — | 10,471 | |||||||||||||||
1 Amounts are reported in “Unrealized holding gains (losses) arising during period” on the Unaudited Consolidated Statements of Comprehensive Income. | |||||||||||||||||||||||
2 Amounts are reported in “Net realized gains (losses)” for realized gains and “Net investment income earned” for amortization of securities on the Unaudited Consolidated Statements of Income. | |||||||||||||||||||||||
3 For the receivable related to the sale of Selective HR, amounts in “Loss on disposal of discontinued operations, net of tax” relate to an impairment charge and amounts in “Other income” relate to interest accretion on the Unaudited Consolidated Statements of Income. | |||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||
($ in thousands) | Government | Corporate | ABS | CMBS | Equity | Receivable for | Total | ||||||||||||||||
Proceeds | |||||||||||||||||||||||
Related to Sale | |||||||||||||||||||||||
of Selective HR | |||||||||||||||||||||||
Fair value, December 31, 2011 | $ | 21,741 | 2,603 | — | 354 | — | 3,212 | 27,910 | |||||||||||||||
Total net (losses) gains for the period included in: | |||||||||||||||||||||||
OCI1 | (22 | ) | 185 | 68 | 858 | — | — | 1,089 | |||||||||||||||
Net income2,3 | (193 | ) | — | — | (51 | ) | — | 244 | — | ||||||||||||||
Purchases | — | — | 7,300 | 5,611 | — | — | 12,911 | ||||||||||||||||
Sales | — | — | — | — | — | — | — | ||||||||||||||||
Issuances | — | — | — | — | — | — | — | ||||||||||||||||
Settlements | (1,737 | ) | (630 | ) | — | (624 | ) | — | (751 | ) | (3,742 | ) | |||||||||||
Transfers into Level 3 | — | 788 | — | 8,247 | 3,607 | — | 12,642 | ||||||||||||||||
Transfers out of Level 3 | — | — | (1,300 | ) | (7,233 | ) | — | — | (8,533 | ) | |||||||||||||
Fair value, December 31, 2012 | $ | 19,789 | 2,946 | 6,068 | 7,162 | 3,607 | 2,705 | 42,277 | |||||||||||||||
1 Amounts are reported in “Unrealized holding gains arising during period” on the Consolidated Statements of Comprehensive Income in our 2012 Annual Report. | |||||||||||||||||||||||
2 Amounts are reported in “Net realized gains (losses)” for realized gains and losses and “Net investment income earned” for amortization for the CMBS securities on the Consolidated Statements of Income in our 2012 Annual Report. | |||||||||||||||||||||||
3 Amounts are reported in “Other income” for the receivable related to the sale of Selective HR on the Consolidated Statements of Income in our 2012 Annual Report and are related to interest accretion on the receivable. | |||||||||||||||||||||||
As discussed in Note 2. "Summary of Significant Accounting Policies," in Item 8. "Financial Statements and Supplementary Data." in our 2012 Annual Report, the fair value of our Level 3 fixed maturity securities is typically obtained through non-binding broker quotes based on unobservable inputs, which we review for reasonableness. At September 30, 2013 and December 31, 2012, fixed maturity securities with aggregate fair values of $7.6 million and $36.0 million, respectively, were measured using Level 3 inputs primarily due to the availability and nature of the pricing used at the valuation dates. | |||||||||||||||||||||||
During Nine Months 2013, fixed maturity securities with an aggregate fair value of $25.1 million were transferred out of Level 3 due to the availability of Level 2 pricing that was not available previously. | |||||||||||||||||||||||
In 2012, fixed maturity securities with a fair value of $9.0 million were transferred into Level 3 during the year. These transfers were primarily related to securities that had been previously priced using Level 2 inputs, but due to the availability and nature of the pricing used at the valuation dates, were priced using Level 3 inputs at December 31, 2012. In addition, certain of these transfers related to securities that had previously been classified as HTM, and therefore not measured at fair value, for which available pricing at December 31, 2012 used Level 3 inputs. Securities with a fair value of $8.5 million were transferred out of Level 3 due to the availability of Level 2 pricing at December 31, 2012 that was not available previously. | |||||||||||||||||||||||
Equity securities with fair values of $2.9 million and $3.6 million were measured using Level 3 inputs at September 30, 2013 and December 31, 2012, respectively. During 2012, two non-publicly traded equity securities were transferred into Level 3 due to the nature of the quotes used at the valuation date. One of these securities was transferred out of Level 3 and into Level 2 at March 31, 2013, as the pricing as of that date was based on a quoted price in an inactive market. This security was subsequently sold in the second quarter of 2013 for an amount that approximated the March 31, 2013 value. At each reporting date, we review the fair value of the remaining Level 3 security for reasonableness. | |||||||||||||||||||||||
At December 31, 2012, the receivable related to the sale of Selective HR was contingent on the purchaser's ability to retain business subsequent to the sale. At that time, the fair value of this receivable was measured using unobservable inputs, the most significant of which was our assumption regarding the retention of business. In the first quarter of 2013, we reached an agreement with the purchaser to settle this receivable for an aggregate of $1.0 million, which was paid in two installments. As a result, the receivable was transferred out of Level 3. See Note 12. "Discontinued Operations" of this Form 10-Q for a discussion of the impairment charge that was recorded on this receivable in the first quarter of 2013. | |||||||||||||||||||||||
The following tables provide quantitative information regarding our financial assets and liabilities that were disclosed at fair value at September 30, 2013 and December 31, 2012: | |||||||||||||||||||||||
September 30, 2013 | Fair Value Measurements Using | ||||||||||||||||||||||
($ in thousands) | Assets/ | Quoted Prices in | Significant Other | Significant | |||||||||||||||||||
Liabilities | Active Markets for | Observable | Unobservable | ||||||||||||||||||||
Disclosed at | Identical Assets/ | Inputs | Inputs | ||||||||||||||||||||
Fair Value at 9/30/2013 | Liabilities | (Level 2) | (Level 3) | ||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||
Financial Assets | |||||||||||||||||||||||
HTM: | |||||||||||||||||||||||
Foreign government | $ | 5,565 | — | 5,565 | — | ||||||||||||||||||
Obligations of states and political subdivisions | 395,643 | — | 395,643 | — | |||||||||||||||||||
Corporate securities | 31,777 | — | 31,777 | — | |||||||||||||||||||
ABS | 5,911 | — | 4,854 | 1,057 | |||||||||||||||||||
CMBS | 9,633 | — | 9,633 | — | |||||||||||||||||||
Total HTM fixed maturity securities | $ | 448,529 | — | 447,472 | 1,057 | ||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||
Notes payable: | |||||||||||||||||||||||
2.90% borrowings from FHLBI | $ | 13,392 | — | 13,392 | — | ||||||||||||||||||
1.25% borrowings from FHLBI | 45,171 | — | 45,171 | — | |||||||||||||||||||
6.70% Senior Notes | 100,200 | — | 100,200 | — | |||||||||||||||||||
7.25% Senior Notes | 51,858 | — | 51,858 | — | |||||||||||||||||||
5.875% Senior Notes | 153,550 | 153,550 | — | — | |||||||||||||||||||
Total notes payable | $ | 364,171 | 153,550 | 210,621 | — | ||||||||||||||||||
December 31, 2012 | Fair Value Measurements Using | ||||||||||||||||||||||
($ in thousands) | Assets/ | Quoted Prices in | Significant Other | Significant | |||||||||||||||||||
Liabilities | Active Markets for | Observable | Unobservable | ||||||||||||||||||||
Disclosed at | Identical Assets/ | Inputs | Inputs | ||||||||||||||||||||
Fair Value at 12/31/2012 | Liabilities | (Level 2) | (Level 3) | ||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||
Financial Assets | |||||||||||||||||||||||
HTM: | |||||||||||||||||||||||
Foreign government | $ | 5,871 | — | 5,871 | — | ||||||||||||||||||
Obligations of states and political subdivisions | 526,922 | — | 526,922 | — | |||||||||||||||||||
Corporate securities | 42,121 | — | 37,289 | 4,832 | |||||||||||||||||||
ABS | 7,097 | — | 5,698 | 1,399 | |||||||||||||||||||
CMBS | 12,650 | — | 12,650 | — | |||||||||||||||||||
Total HTM fixed maturity securities | $ | 594,661 | — | 588,430 | 6,231 | ||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||
Notes payable: | |||||||||||||||||||||||
2.90% borrowings from FHLBI | $ | 13,595 | — | 13,595 | — | ||||||||||||||||||
1.25% borrowings from FHLBI | 45,590 | — | 45,590 | — | |||||||||||||||||||
7.50% Junior Notes | 101,480 | 101,480 | — | — | |||||||||||||||||||
6.70% Senior Notes | 107,707 | 107,707 | — | — | |||||||||||||||||||
7.25% Senior Notes | 52,689 | — | 52,689 | — | |||||||||||||||||||
Total notes payable | $ | 321,061 | 209,187 | 111,874 | — | ||||||||||||||||||
Reinsurance
Reinsurance | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Reinsurance Disclosures [Abstract] | ' | |||||||||||||
Reinsurance | ' | |||||||||||||
Reinsurance | ||||||||||||||
The following table contains a listing of direct, assumed, and ceded reinsurance amounts for premiums written, premiums earned, and loss and loss expenses incurred for the periods indicated. For more information concerning reinsurance, refer to Note 8. “Reinsurance” in Item 8. “Financial Statements and Supplementary Data.” of our 2012 Annual Report. | ||||||||||||||
Quarter ended September 30, | Nine Months ended September 30, | |||||||||||||
($ in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Premiums written: | ||||||||||||||
Direct | $ | 570,849 | 520,943 | 1,650,855 | 1,504,429 | |||||||||
Assumed | 22,053 | 17,976 | 34,913 | 44,712 | ||||||||||
Ceded | (100,154 | ) | (88,401 | ) | (280,719 | ) | (252,888 | ) | ||||||
Net | $ | 492,748 | 450,518 | 1,405,049 | 1,296,253 | |||||||||
Premiums earned: | ||||||||||||||
Direct | $ | 518,307 | 474,055 | 1,516,454 | 1,389,373 | |||||||||
Assumed | 11,066 | 18,595 | 32,480 | 49,683 | ||||||||||
Ceded | (91,805 | ) | (86,425 | ) | (264,174 | ) | (261,790 | ) | ||||||
Net | $ | 437,568 | 406,225 | 1,284,760 | 1,177,266 | |||||||||
Loss and loss expense incurred: | ||||||||||||||
Direct | $ | 350,648 | 327,883 | 1,055,248 | 881,537 | |||||||||
Assumed | 7,264 | 13,970 | 22,758 | 35,039 | ||||||||||
Ceded | (74,595 | ) | (69,602 | ) | (245,246 | ) | (103,516 | ) | ||||||
Net | $ | 283,317 | 272,251 | 832,760 | 813,060 | |||||||||
The growth in direct premium written ("DPW") for our ten insurance subsidiaries ("Insurance Subsidiaries") in both Third Quarter and Nine Months 2013 compared to Third Quarter and Nine Months 2012 reflects: (i) pure price increases that we have achieved in our Standard Insurance Operations; and (ii) strong retention in our Standard Insurance Operations. | ||||||||||||||
Direct premiums earned increases in Third Quarter and Nine Months 2013 were consistent with the fluctuation in DPW for the twelve-month period ended September 30, 2013 as compared to the twelve-month period ended September 30, 2012. | ||||||||||||||
Assumed premiums written for Nine Months 2013 decreased compared to the same period last year as E&S business, which was previously written through a reinsurance fronting agreement, is now written directly by our Insurance Subsidiaries. Decreases in assumed premiums earned in Third Quarter and Nine Months 2013 compared to Third Quarter and Nine Months 2012 were driven by the E&S premiums. | ||||||||||||||
Direct loss and loss expense incurred in Nine Months 2013 included an increase of approximately $128 million related to flood losses covered under the NFIP for Hurricane Sandy, which occurred in October 2012. Total estimated gross flood losses covered by the Insurance Subsidiaries' WYO policies under the NFIP program for this storm were $1,179 million at September 30, 2013 and $1,052 million at December 31, 2012, of which approximately $1,148 million was paid through September 30, 2013. | ||||||||||||||
As all flood losses are fully ceded under the NFIP, the increase in direct loss and loss expense drives the corresponding increase in our ceded losses. | ||||||||||||||
The ceded premiums and losses related to our participation in the NFIP, under which 100% of our flood premiums, losses, and loss expenses are ceded to the NFIP, are as follows: | ||||||||||||||
NFIP | Quarter ended September 30, | Nine Months ended September 30, | ||||||||||||
($ in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Ceded premiums written | $ | (64,196 | ) | (58,923 | ) | (183,364 | ) | (171,172 | ) | |||||
Ceded premiums earned | (57,920 | ) | (53,222 | ) | (169,697 | ) | (157,895 | ) | ||||||
Ceded loss and loss expense incurred | (34,879 | ) | (32,702 | ) | (162,780 | ) | (24,534 | ) |
Segment_Information
Segment Information | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||
Segment Information | ' | |||||||||||||
Segment Information | ||||||||||||||
The results of our three operating segments are used by senior management to manage our operations. These segments are evaluated based on the following: | ||||||||||||||
• | Our Standard Insurance Operations segment and our E&S Insurance Operations segment are evaluated based on statutory underwriting results (net premiums earned, incurred loss and loss expenses, policyholders dividends, policy acquisition costs, and other underwriting expenses), and statutory combined ratios; and | |||||||||||||
• | Our Investments segment is evaluated based on net investment income and net realized gains and losses. | |||||||||||||
In computing the results of each segment, we do not make adjustments for interest expense, net general corporate expenses, or federal income taxes. We do not maintain separate investment portfolios for the segments and therefore, do not allocate assets to the segments. | ||||||||||||||
The following summaries present revenues from continuing operations (net investment income and net realized gains on investments in the case of the Investments segment) and pre-tax income from continuing operations for the individual segments: | ||||||||||||||
Revenue by Segment | Quarter ended September 30, | Nine Months ended September 30, | ||||||||||||
($ in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Standard Insurance Operations: | ||||||||||||||
Net premiums earned: | ||||||||||||||
Commercial automobile | $ | 79,138 | 72,758 | 230,191 | 214,782 | |||||||||
Workers compensation | 66,510 | 65,592 | 197,449 | 198,064 | ||||||||||
General liability | 100,925 | 93,763 | 298,394 | 276,538 | ||||||||||
Commercial property | 57,004 | 52,197 | 165,356 | 151,945 | ||||||||||
Businessowners’ policies | 19,629 | 17,749 | 56,794 | 51,872 | ||||||||||
Bonds | 4,705 | 4,713 | 14,244 | 14,076 | ||||||||||
Other | 3,051 | 2,921 | 9,036 | 9,202 | ||||||||||
Total standard Commercial Lines | 330,962 | 309,693 | 971,464 | 916,479 | ||||||||||
Personal automobile | 38,513 | 38,295 | 115,432 | 113,648 | ||||||||||
Homeowners | 32,374 | 29,919 | 95,211 | 86,685 | ||||||||||
Other | 3,827 | 3,591 | 10,655 | 10,037 | ||||||||||
Total standard Personal Lines | 74,714 | 71,805 | 221,298 | 210,370 | ||||||||||
Total Standard Insurance Operations net premiums earned | 405,676 | 381,498 | 1,192,762 | 1,126,849 | ||||||||||
Miscellaneous income | 3,342 | 1,009 | 9,590 | 6,904 | ||||||||||
Total Standard Insurance Operations revenue | 409,018 | 382,507 | 1,202,352 | 1,133,753 | ||||||||||
E&S Insurance Operations: | ||||||||||||||
Net premiums earned | 31,892 | 24,727 | 91,998 | 50,417 | ||||||||||
Investments: | ||||||||||||||
Net investment income | 32,457 | 30,650 | 99,330 | 97,284 | ||||||||||
Net realized investment gains (losses) | 13,431 | (1,088 | ) | 21,940 | 3,448 | |||||||||
Total investment revenues | 45,888 | 29,562 | 121,270 | 100,732 | ||||||||||
Total all segments | 486,798 | 436,796 | 1,415,620 | 1,284,902 | ||||||||||
Other income | 15 | 76 | 87 | 225 | ||||||||||
Total revenues from continuing operations | $ | 486,813 | 436,872 | 1,415,707 | 1,285,127 | |||||||||
Income from Continuing Operations before Federal Income Tax | Quarter ended September 30, | Nine Months ended September 30, | ||||||||||||
($ in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Standard Insurance Operations: | ||||||||||||||
Commercial Lines underwriting gain (loss) | $ | 8,776 | (651 | ) | 24,621 | (14,666 | ) | |||||||
Personal Lines underwriting gain | 1,362 | 7,220 | 4,360 | 2,903 | ||||||||||
Total Standard Insurance Operations underwriting gain (loss), before federal income tax | 10,138 | 6,569 | 28,981 | (11,763 | ) | |||||||||
GAAP combined ratio | 97.5 | % | 98.3 | 97.6 | 101 | |||||||||
Statutory combined ratio | 96 | % | 96.9 | 96.6 | 100.1 | |||||||||
E&S Insurance Operations: | ||||||||||||||
Underwriting gain (loss) | 13 | (5,708 | ) | (2,186 | ) | (15,701 | ) | |||||||
GAAP combined ratio | 100 | % | 123.1 | 102.4 | 131.1 | |||||||||
Statutory combined ratio | 100.5 | % | 121.6 | 101.9 | 120.3 | |||||||||
Investments: | ||||||||||||||
Net investment income | 32,457 | 30,650 | 99,330 | 97,284 | ||||||||||
Net realized investment gains (losses) | 13,431 | (1,088 | ) | 21,940 | 3,448 | |||||||||
Total investment income, before federal income tax | 45,888 | 29,562 | 121,270 | 100,732 | ||||||||||
Total all segments | 56,039 | 30,423 | 148,065 | 73,268 | ||||||||||
Interest expense | (5,570 | ) | (4,725 | ) | (16,971 | ) | (14,148 | ) | ||||||
General corporate and other expenses | (5,984 | ) | (5,384 | ) | (21,540 | ) | (16,307 | ) | ||||||
Income from continuing operations before federal income tax | $ | 44,485 | 20,314 | 109,554 | 42,813 | |||||||||
Indebtedness
Indebtedness | 9 Months Ended | ||
Sep. 30, 2013 | |||
Debt Disclosure [Abstract] | ' | ||
Indebtedness | ' | ||
Indebtedness | |||
(a) Notes Payable | |||
In the first quarter of 2013, we issued $185 million of 5.875% Senior Notes due 2043. The Senior Notes pay interest on February 15, May 15, August 15, and November 15 of each year, beginning on May 15, 2013, and at maturity. The notes are callable by us on or after February 8, 2018, at a price equal to 100% of their principal outstanding amount, plus accrued and unpaid interest to, but excluding, the date of redemption. A portion of the proceeds from this debt issuance was used to fully redeem the $100 million aggregate principal amount of our 7.5% Junior Subordinated Notes due 2066, which had an associated $3.3 million pre-tax write-off for the remaining capitalized debt issuance costs on these notes. Of the remaining net proceeds, $57.1 million was used to make capital contributions to the Insurance Subsidiaries, while the balance was used for general corporate purposes. | |||
(b) Short-Term Debt | |||
Our line of credit ("Line of Credit") with Wells Fargo Bank, National Association, as administrative agent, and Branch Banking and Trust Company (BB&T), was renewed effective September 26, 2013 with a borrowing capacity of $30 million, which can be increased to $50 million with the approval of both lending partners. The Line of Credit provides the Parent with an additional source of short-term liquidity. The interest rate on our Line of Credit varies and is based on, among other factors, the Parent’s debt ratings. The Line of Credit expires on September 26, 2017. There have been no balances outstanding under this Line of Credit or the previous credit facility at September 30, 2013 or at any time during Nine Months 2013. | |||
The Line of Credit agreement contains representations, warranties, and covenants that are customary for credit facilities of this type, including, without limitation, financial covenants under which we are obligated to maintain a minimum consolidated net worth, minimum combined statutory surplus, and maximum ratio of consolidated debt to total capitalization, as well as covenants limiting our ability to: (i) merge or liquidate; (ii) incur debt or liens; (iii) dispose of assets; (iv) make certain investments and acquisitions; and (v) engage in transactions with affiliates. The Line of Credit permits collateralized borrowings by the two Insurance Subsidiaries domiciled in Indiana ("Indiana Subsidiaries") from the FHLBI so long as the aggregate amount borrowed does not exceed 10% of the respective Indiana Subsidiary’s admitted assets from the preceding calendar year. | |||
The table below outlines information regarding certain of the covenants in the Line of Credit: | |||
Required as of | Actual as of | ||
30-Sep-13 | 30-Sep-13 | ||
Consolidated net worth | $785 million | $1.1 billion | |
Statutory surplus | Not less than $750 million | $1.2 billion | |
Debt-to-capitalization ratio1 | Not to exceed 35% | 26.00% | |
A.M. Best financial strength rating | Minimum of A- | A | |
1Calculated in accordance with the Line of Credit agreement. | |||
For additional information related to all our outstanding debt, refer to Note 10. "Indebtedness" in Item 8. "Financial Statements and Supplementary Data." of our 2012 Annual Report. |
Retirement_Plans
Retirement Plans | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||
Retirement Plans | ' | |||||||||||||
Retirement Plans | ||||||||||||||
The Retirement Income Plan for Selective Insurance Company of America and the Supplemental Excess Retirement Plan (jointly referred to as the "Retirement Income Plan") were amended in the first quarter of 2013 to curtail the accrual of additional benefits for all employees eligible to participate in the plans after March 31, 2016. The curtailment of the plans resulted in a net actuarial gain recognized in OCI of $44.0 million on a pre-tax basis. | ||||||||||||||
As a result of the curtailment, the Retirement Income Plan was re-measured as of March 31, 2013. When determining the most appropriate discount rate to be used in the valuation, we considered, among other factors, our expected payout patterns of the Retirement Income Plan's obligations, as well as our investment strategy. We ultimately selected the rate that we believe best represents our estimate of the inherent interest rate at which the Retirement Income Plan's liabilities can be effectively settled. The expected rate of return on plan assets at March 31, 2013 remained at 7.40%, consistent with our December 31, 2012 assumption. For re-measurement, we determined that the most appropriate discount rate was 4.66%, up slightly from 4.42% determined as of December 31, 2012. | ||||||||||||||
Eligible employees impacted by the curtailment of the Retirement Income Plan began receiving, on April 5, 2013, an enhanced company contribution to the Selective Insurance Retirement Savings Plan of 4% of base salary, which is the enhanced company contribution currently provided to all employees not eligible to participate in the Retirement Income Plan. | ||||||||||||||
The funded status of the Retirement Income Plan recognized in the Consolidated Balance Sheets as of September 30, 2013, the valuation of which was updated as of March 31, 2013 as a result of the first quarter curtailment discussed above, and December 31, 2012, was as follows: | ||||||||||||||
Retirement Income Plan | ||||||||||||||
($ in thousands) | 30-Sep-13 | 31-Dec-12 | ||||||||||||
Change in Benefit Obligation: | ||||||||||||||
Benefit obligation, beginning of year | $ | 302,647 | 254,009 | |||||||||||
Service cost | 2,449 | 8,091 | ||||||||||||
Interest cost | 3,303 | 12,981 | ||||||||||||
Actuarial (gain) losses | (11,485 | ) | 33,596 | |||||||||||
Benefits paid | (1,598 | ) | (6,030 | ) | ||||||||||
Impact of curtailment | (29,603 | ) | — | |||||||||||
Benefit obligation, end of period | $ | 265,713 | 302,647 | |||||||||||
Change in Fair Value of Assets: | ||||||||||||||
Fair value of assets, beginning of year | $ | 207,150 | 182,614 | |||||||||||
Actual return on plan assets, net of expenses | 6,760 | 21,896 | ||||||||||||
Contribution by employer to funded plans | 2,650 | 8,550 | ||||||||||||
Contribution by employer to unfunded plans | 30 | 120 | ||||||||||||
Benefits paid | (1,598 | ) | (6,030 | ) | ||||||||||
Fair value of assets, end of period | $ | 214,992 | 207,150 | |||||||||||
Funded status | $ | (50,721 | ) | (95,497 | ) | |||||||||
Amount Recognized in Consolidated Balance Sheet: | ||||||||||||||
Liabilities | $ | (50,721 | ) | (95,497 | ) | |||||||||
Net pension liability, end of period | $ | (50,721 | ) | (95,497 | ) | |||||||||
Amount Recognized in AOCI: | ||||||||||||||
Prior service cost | $ | — | 26 | |||||||||||
Net actuarial loss | 57,543 | 103,365 | ||||||||||||
Total | $ | 57,543 | 103,391 | |||||||||||
Other Information: | ||||||||||||||
Accumulated benefit obligation | $ | 257,412 | 265,899 | |||||||||||
Weighted-Average Liability Assumptions: | ||||||||||||||
Discount Rate | 4.66 | % | 4.42 | |||||||||||
Rate of compensation increase | 4 | % | 4 | |||||||||||
The following table shows the cost of the Retirement Income Plan and the life insurance benefit ("Retirement Life Plan") for the quarterly and nine month periods ended September 30, 2013 and September 30, 2012: | ||||||||||||||
Retirement Income Plan | Retirement Life Plan | |||||||||||||
Quarter ended September 30, | Quarter ended September 30, | |||||||||||||
($ in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Components of Net Periodic Benefit Cost and Other Amounts Recognized in OCI: | ||||||||||||||
Net Periodic Benefit Cost: | ||||||||||||||
Service cost | $ | 1,857 | 2,154 | — | — | |||||||||
Interest cost | 3,053 | 3,230 | 69 | 73 | ||||||||||
Expected return on plan assets | (3,986 | ) | (3,547 | ) | — | — | ||||||||
Amortization of unrecognized prior service cost | — | 38 | — | — | ||||||||||
Amortization of unrecognized net actuarial loss | 772 | 1,383 | 18 | 8 | ||||||||||
Total net periodic cost | $ | 1,696 | 3,258 | 87 | 81 | |||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in OCI: | ||||||||||||||
Reversal of amortization of net actuarial loss | $ | (772 | ) | (1,383 | ) | (18 | ) | (8 | ) | |||||
Reversal of amortization of prior service cost | — | (38 | ) | — | — | |||||||||
Total recognized in OCI | $ | (772 | ) | (1,421 | ) | (18 | ) | (8 | ) | |||||
Total recognized in net periodic benefit cost and OCI | $ | 924 | 1,837 | 69 | 73 | |||||||||
Retirement Income Plan | Retirement Life Plan | |||||||||||||
Nine Months ended September 30, | Nine Months ended September 30, | |||||||||||||
($ in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Components of Net Periodic Benefit Cost and Other Amounts Recognized in OCI: | ||||||||||||||
Net Periodic Benefit Cost: | ||||||||||||||
Service cost | $ | 6,163 | 6,462 | — | — | |||||||||
Interest cost | 9,407 | 9,690 | 208 | 221 | ||||||||||
Expected return on plan assets | (11,819 | ) | (10,641 | ) | — | — | ||||||||
Amortization of unrecognized prior service cost | 10 | 113 | — | — | ||||||||||
Amortization of unrecognized net actuarial loss | 3,366 | 4,149 | 53 | 23 | ||||||||||
Curtailment expense | 16 | — | — | — | ||||||||||
Total net periodic cost | $ | 7,143 | 9,773 | 261 | 244 | |||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in OCI: | ||||||||||||||
Net actuarial gain due to curtailment | $ | (44,000 | ) | — | — | — | ||||||||
Reversal of amortization of net actuarial loss | (3,366 | ) | (4,149 | ) | (53 | ) | (23 | ) | ||||||
Reversal of amortization of prior service cost | (10 | ) | (113 | ) | — | — | ||||||||
Curtailment expense | (16 | ) | — | — | — | |||||||||
Total recognized in OCI | $ | (47,392 | ) | (4,262 | ) | (53 | ) | (23 | ) | |||||
Total recognized in net periodic benefit cost and OCI | $ | (40,249 | ) | 5,511 | 208 | 221 | ||||||||
The amortization of prior service cost related to the Retirement Income Plan is determined using a straight-line amortization of the cost over the average remaining service period of employees expected to receive benefits under the Retirement Income Plan. | ||||||||||||||
The estimated net actuarial loss for the Retirement Income Plan that will be amortized from AOCI into net periodic benefit cost during the 2013 fiscal year is $4.1 million. | ||||||||||||||
Retirement Income Plan | Retirement Life Plan | |||||||||||||
Nine Months ended September 30, | Nine Months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Weighted-Average Expense Assumptions: | ||||||||||||||
Discount rate | 4.66 | % | 5.16 | 4.42 | % | 5.16 | ||||||||
Expected return on plan assets | 7.4 | 7.75 | — | — | ||||||||||
Rate of compensation increase | 4 | 4 | — | — | ||||||||||
The following table presents future benefit payments expected under the Retirement Income Plan: | ||||||||||||||
($ in thousands) | Retirement Income Plan | |||||||||||||
Benefits Expected to be Paid in Future Years | ||||||||||||||
Fiscal Years: | ||||||||||||||
2013 | $ | 7,586 | ||||||||||||
2014 | 8,384 | |||||||||||||
2015 | 9,148 | |||||||||||||
2016 | 9,942 | |||||||||||||
2017 | 10,810 | |||||||||||||
2018-2022 | 67,447 | |||||||||||||
For additional information regarding our retirement plans, refer to Note 15. "Retirement Plans" included in Item 8. "Financial Statements and Supplementary Data." of our 2012 Annual Report. |
Comprehensive_Income
Comprehensive Income | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ' | |||||||||||||||||||
Comprehensive Income | ' | |||||||||||||||||||
Comprehensive Income | ||||||||||||||||||||
The components of comprehensive income, both gross and net of tax, for Third Quarter and Nine Months 2013 and 2012 are as follows: | ||||||||||||||||||||
Third Quarter 2013 | ||||||||||||||||||||
($ in thousands) | Gross | Tax | Net | |||||||||||||||||
Net income | $ | 44,485 | 11,832 | 32,653 | ||||||||||||||||
Components of OCI: | ||||||||||||||||||||
Unrealized losses on investment securities: | ||||||||||||||||||||
Unrealized gains during the period | 9,820 | 3,437 | 6,383 | |||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
HTM securities | (472 | ) | (165 | ) | (307 | ) | ||||||||||||||
Non-credit OTTI | 1 | — | 1 | |||||||||||||||||
Realized gains on AFS securities | (13,516 | ) | (4,731 | ) | (8,785 | ) | ||||||||||||||
Net unrealized losses | (4,167 | ) | (1,459 | ) | (2,708 | ) | ||||||||||||||
Defined benefit pension and post-retirement plans: | ||||||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
Net actuarial loss | 790 | 277 | 513 | |||||||||||||||||
Defined benefit pension and post-retirement plans | 790 | 277 | 513 | |||||||||||||||||
Other comprehensive loss | (3,377 | ) | (1,182 | ) | (2,195 | ) | ||||||||||||||
Comprehensive income | $ | 41,108 | 10,650 | 30,458 | ||||||||||||||||
Third Quarter 2012 | ||||||||||||||||||||
($ in thousands) | Gross | Tax | Net | |||||||||||||||||
Net income | $ | 20,314 | 2,040 | 18,274 | ||||||||||||||||
Components of OCI: | ||||||||||||||||||||
Unrealized gains on investment securities: | ||||||||||||||||||||
Unrealized holding gains during the period | 36,620 | 12,817 | 23,803 | |||||||||||||||||
Non-credit OTTI recognized in OCI | 2,023 | 708 | 1,315 | |||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
HTM securities | (336 | ) | (117 | ) | (219 | ) | ||||||||||||||
Non-credit OTTI | 9 | 3 | 6 | |||||||||||||||||
Realized losses on AFS securities | 1,037 | 363 | 674 | |||||||||||||||||
Net unrealized gains | 39,353 | 13,774 | 25,579 | |||||||||||||||||
Defined benefit pension and post-retirement plans: | ||||||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
Net actuarial loss | 1,391 | 487 | 904 | |||||||||||||||||
Prior service cost | 38 | 14 | 24 | |||||||||||||||||
Defined benefit pension and post-retirement plans | 1,429 | 501 | 928 | |||||||||||||||||
Other comprehensive income | 40,782 | 14,275 | 26,507 | |||||||||||||||||
Comprehensive income | $ | 61,096 | 16,315 | 44,781 | ||||||||||||||||
Nine Months 2013 | ||||||||||||||||||||
($ in thousands) | Gross | Tax | Net | |||||||||||||||||
Net income | $ | 108,019 | 26,936 | 81,083 | ||||||||||||||||
Components of OCI: | ||||||||||||||||||||
Unrealized losses on investment securities: | ||||||||||||||||||||
Unrealized holding losses during the period | (77,810 | ) | (27,234 | ) | (50,576 | ) | ||||||||||||||
Non-credit OTTI recognized in OCI | 77 | 27 | 50 | |||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
HTM securities | (1,803 | ) | (631 | ) | (1,172 | ) | ||||||||||||||
Non-credit OTTI | 14 | 5 | 9 | |||||||||||||||||
Realized gains on AFS securities | (24,780 | ) | (8,673 | ) | (16,107 | ) | ||||||||||||||
Net unrealized losses | (104,302 | ) | (36,506 | ) | (67,796 | ) | ||||||||||||||
Defined benefit pension and post-retirement plans: | ||||||||||||||||||||
Net actuarial gain | 44,000 | 15,400 | 28,600 | |||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
Net actuarial loss | 3,419 | 1,197 | 2,222 | |||||||||||||||||
Prior service cost | 10 | 4 | 6 | |||||||||||||||||
Curtailment expense | 16 | 5 | 11 | |||||||||||||||||
Defined benefit pension and post-retirement plans | 47,445 | 16,606 | 30,839 | |||||||||||||||||
Other comprehensive loss | (56,857 | ) | (19,900 | ) | (36,957 | ) | ||||||||||||||
Comprehensive income | $ | 51,162 | 7,036 | 44,126 | ||||||||||||||||
Nine Months 2012 | ||||||||||||||||||||
($ in thousands) | Gross | Tax | Net | |||||||||||||||||
Net income | $ | 42,813 | 6,158 | 36,655 | ||||||||||||||||
Components of OCI: | ||||||||||||||||||||
Unrealized gains on investment securities: | ||||||||||||||||||||
Unrealized holding gains during the period | 64,273 | 22,496 | 41,777 | |||||||||||||||||
Non-credit OTTI recognized in OCI | 2,241 | 784 | 1,457 | |||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
HTM securities | (1,901 | ) | (665 | ) | (1,236 | ) | ||||||||||||||
Non-credit OTTI | 272 | 95 | 177 | |||||||||||||||||
Realized gains on AFS securities | (3,451 | ) | (1,208 | ) | (2,243 | ) | ||||||||||||||
Net unrealized gains | 61,434 | 21,502 | 39,932 | |||||||||||||||||
Defined benefit pension and post-retirement plans: | ||||||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
Net actuarial loss | 4,172 | 1,460 | 2,712 | |||||||||||||||||
Prior service cost | 113 | 40 | 73 | |||||||||||||||||
Defined benefit pension and post-retirement plans | 4,285 | 1,500 | 2,785 | |||||||||||||||||
Other comprehensive income | 65,719 | 23,002 | 42,717 | |||||||||||||||||
Comprehensive income | $ | 108,532 | 29,160 | 79,372 | ||||||||||||||||
The balances of, and changes in, each component of AOCI (net of taxes) as of September 30, 2013 are as follows: | ||||||||||||||||||||
September 30, 2013 | Net Unrealized (Loss) Gain on Investment Securities | |||||||||||||||||||
($ in thousands) | OTTI | HTM | All | Investments | Defined Benefit | Total AOCI | ||||||||||||||
Related | Related | Other | Subtotal | Pension and Post-Retirement Plans | ||||||||||||||||
Balance, December 31, 2012 | $ | (1,658 | ) | 2,594 | 121,391 | 122,327 | (68,287 | ) | 54,040 | |||||||||||
OCI before reclassifications | 50 | (103 | ) | (50,473 | ) | (50,526 | ) | 28,600 | (21,926 | ) | ||||||||||
Amounts reclassified from AOCI | 9 | (1,172 | ) | (16,107 | ) | (17,270 | ) | 2,239 | (15,031 | ) | ||||||||||
Net current period OCI | 59 | (1,275 | ) | (66,580 | ) | (67,796 | ) | 30,839 | (36,957 | ) | ||||||||||
Balance, September 30, 2013 | $ | (1,599 | ) | 1,319 | 54,811 | 54,531 | (37,448 | ) | 17,083 | |||||||||||
The reclassifications out of AOCI for Third Quarter and Nine Months 2013 are as follows: | ||||||||||||||||||||
Amount Reclassified from AOCI | Affected Line Item in the Unaudited Consolidated Statement of Income | |||||||||||||||||||
($ in thousands) | Quarter ended September 30, 2013 | Nine Months ended September 30, 2013 | ||||||||||||||||||
OTTI related | ||||||||||||||||||||
Amortization of non-credit OTTI losses on HTM securities | ||||||||||||||||||||
$ | 1 | 14 | Net investment income earned | |||||||||||||||||
1 | 14 | Income (loss) from continuing operations, before federal income tax | ||||||||||||||||||
— | (5 | ) | Total federal income tax expense (benefit) | |||||||||||||||||
1 | 9 | Net income | ||||||||||||||||||
HTM related | ||||||||||||||||||||
Unrealized gains and losses on HTM disposals | (19 | ) | (170 | ) | Net realized investment gains | |||||||||||||||
Amortization of net unrealized gains on HTM securities | (453 | ) | (1,633 | ) | Net investment income earned | |||||||||||||||
(472 | ) | (1,803 | ) | Income (loss) from continuing operations, before federal income tax | ||||||||||||||||
165 | 631 | Total federal income tax expense (benefit) | ||||||||||||||||||
(307 | ) | (1,172 | ) | Net income | ||||||||||||||||
Realized gains and losses on AFS | ||||||||||||||||||||
Realized gains and losses on AFS disposals | (13,516 | ) | (24,780 | ) | Net realized investments gains | |||||||||||||||
(13,516 | ) | (24,780 | ) | Income (loss) from continuing operations, before federal income tax | ||||||||||||||||
4,731 | 8,673 | Total federal income tax expense (benefit) | ||||||||||||||||||
(8,785 | ) | (16,107 | ) | Net income | ||||||||||||||||
Defined benefit pension and post-retirement life plans | ||||||||||||||||||||
Net actuarial loss | 159 | 717 | Loss and loss expense incurred | |||||||||||||||||
631 | 2,702 | Policy acquisition costs | ||||||||||||||||||
790 | 3,419 | Income (loss) from continuing operations, before federal income tax | ||||||||||||||||||
Prior service cost | — | 7 | Loss and loss expense incurred | |||||||||||||||||
— | 3 | Policy acquisition costs | ||||||||||||||||||
— | 10 | Income (loss) from continuing operations, before federal income tax | ||||||||||||||||||
Curtailment expense | — | 16 | Policy acquisition costs | |||||||||||||||||
— | 16 | Income (loss) from continuing operations, before federal income tax | ||||||||||||||||||
Total defined benefit pension and post-retirement life | 790 | 3,445 | Income (loss) from continuing operations, before federal income tax | |||||||||||||||||
(277 | ) | (1,206 | ) | Total federal income tax expense (benefit) | ||||||||||||||||
513 | 2,239 | Net income | ||||||||||||||||||
Total reclassifications for the period | $ | (8,578 | ) | $ | (15,031 | ) | Net income |
Discontinued_Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2013 | |
Discontinued Operations and Disposal Groups [Abstract] | ' |
Discontinued Operations | ' |
Discontinued Operations | |
In the fourth quarter of 2009, we sold 100% of our interest in Selective HR for proceeds to be received over a 10-year period. These proceeds were based on the ability of the purchaser to retain and generate new worksite lives though the independent agents who distribute the products. We settled the remaining receivable for an aggregate of $1.0 million, which was received in two installments during the second quarter of 2013, in full and final settlement of the contingent purchase price. An impairment of $1.5 million was recorded in the first quarter of 2013 and is included in "Loss on disposal of discontinued operations, net of tax" in the Unaudited Consolidated Statements of Income. |
Litigation
Litigation | 9 Months Ended |
Sep. 30, 2013 | |
Loss Contingency, Information about Litigation Matters [Abstract] | ' |
Litigation | ' |
Litigation | |
In the ordinary course of conducting business, we are named as defendants in various legal proceedings. Most of these proceedings are claims litigation involving our Insurance Subsidiaries as either: (a) liability insurers defending or providing indemnity for third-party claims brought against insureds; or (b) insurers defending first-party coverage claims brought against them. We account for such activity through the establishment of unpaid loss and loss expense reserves. We expect that the ultimate liability, if any, with respect to such ordinary course claims litigation, after consideration of provisions made for potential losses and costs of defense, will not be material to our consolidated financial condition, results of operations, or cash flows. | |
Our Insurance Subsidiaries are also from time to time involved in other legal actions, some of which assert claims for substantial amounts. These actions include, among others, putative class actions seeking certification of a state or national class. Such putative class actions have alleged, for example, improper reimbursement of medical providers paid under workers compensation and personal and commercial automobile insurance policies. Our Insurance Subsidiaries also are involved from time to time in individual actions in which extra-contractual damages, punitive damages, or penalties are sought, such as claims alleging bad faith in the handling of insurance claims. We believe that we have valid defenses to these cases. We expect that the ultimate liability, if any, with respect to such lawsuits, after consideration of provisions made for estimated losses, will not be material to our consolidated financial condition. Nonetheless, given the large or indeterminate amounts sought in certain of these actions, and the inherent unpredictability of litigation, an adverse outcome in certain matters could, from time to time, have a material adverse effect on our consolidated results of operations or cash flows in particular quarterly or annual periods. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
At September 30, 2013, we had contractual obligations that expire at various dates through 2026 to invest up to an additional $58.9 million in alternative and other investments. There is no certainty that all of such additional investments will be required. |
Statements_of_Cash_Flow_Tables
Statements of Cash Flow (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Supplemental Cash Flow Information [Abstract] | ' | |||||||
Schedule of Cash Flow, Supplemental Disclosures | ' | |||||||
Nine Months ended September 30, | ||||||||
($ in thousands) | 2013 | 2012 | ||||||
Cash paid during the period for: | ||||||||
Interest | $ | 13,325 | 11,504 | |||||
Federal income tax | 17,000 | 6,300 | ||||||
Investments_Tables
Investments (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Investments [Line Items] | ' | |||||||||||||||||||
Schedule of Held-to-maturity Securities | ' | |||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
($ in thousands) | Amortized Cost | Net | Carrying | Unrecognized | Unrecognized Holding | Fair | ||||||||||||||
Unrealized Gains | Value | Holding | Losses | Value | ||||||||||||||||
(Losses) | Gains | |||||||||||||||||||
Foreign government | $ | 5,292 | 151 | 5,443 | 122 | — | 5,565 | |||||||||||||
Obligations of state and political subdivisions | 372,281 | 4,065 | 376,346 | 19,297 | — | 395,643 | ||||||||||||||
Corporate securities | 29,228 | (466 | ) | 28,762 | 3,015 | — | 31,777 | |||||||||||||
Asset-backed securities (“ABS”) | 5,890 | (755 | ) | 5,135 | 776 | — | 5,911 | |||||||||||||
Commercial mortgage-backed securities (“CMBS”) | 7,241 | (965 | ) | 6,276 | 3,357 | — | 9,633 | |||||||||||||
Total HTM fixed maturity securities | $ | 419,932 | 2,030 | 421,962 | 26,567 | — | 448,529 | |||||||||||||
December 31, 2012 | ||||||||||||||||||||
($ in thousands) | Amortized Cost | Net | Carrying | Unrecognized | Unrecognized Holding | Fair | ||||||||||||||
Unrealized Gains | Value | Holding | Losses | Value | ||||||||||||||||
(Losses) | Gains | |||||||||||||||||||
Foreign government | $ | 5,292 | 212 | 5,504 | 367 | — | 5,871 | |||||||||||||
Obligations of state and political subdivisions | 491,180 | 6,769 | 497,949 | 28,996 | (23 | ) | 526,922 | |||||||||||||
Corporate securities | 38,285 | (812 | ) | 37,473 | 4,648 | — | 42,121 | |||||||||||||
ABS | 6,980 | (1,052 | ) | 5,928 | 1,170 | — | 7,098 | |||||||||||||
CMBS | 8,406 | (1,191 | ) | 7,215 | 5,434 | — | 12,649 | |||||||||||||
Total HTM fixed maturity securities | $ | 550,143 | 3,926 | 554,069 | 40,615 | (23 | ) | 594,661 | ||||||||||||
Schedule Of Available For Sale Securities | ' | |||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
($ in thousands) | Cost/ | Unrealized | Unrealized | Fair | ||||||||||||||||
Amortized | Gains | Losses | Value | |||||||||||||||||
Cost | ||||||||||||||||||||
U.S. government and government agencies | $ | 169,163 | 11,953 | (330 | ) | 180,786 | ||||||||||||||
Foreign government | 28,797 | 996 | (84 | ) | 29,709 | |||||||||||||||
Obligations of states and political subdivisions | 918,403 | 27,705 | (16,610 | ) | 929,498 | |||||||||||||||
Corporate securities | 1,629,698 | 47,932 | (14,479 | ) | 1,663,151 | |||||||||||||||
ABS | 150,179 | 1,063 | (476 | ) | 150,766 | |||||||||||||||
CMBS1 | 152,464 | 2,747 | (3,263 | ) | 151,948 | |||||||||||||||
Residential mortgage-backed | 525,047 | 8,932 | (6,405 | ) | 527,574 | |||||||||||||||
securities (“RMBS”)2 | ||||||||||||||||||||
AFS fixed maturity securities | 3,573,751 | 101,328 | (41,647 | ) | 3,633,432 | |||||||||||||||
AFS equity securities | 158,323 | 24,061 | (1,878 | ) | 180,506 | |||||||||||||||
Total AFS securities | $ | 3,732,074 | 125,389 | (43,525 | ) | 3,813,938 | ||||||||||||||
December 31, 2012 | ||||||||||||||||||||
($ in thousands) | Cost/ | Unrealized | Unrealized | Fair | ||||||||||||||||
Amortized | Gains | Losses | Value | |||||||||||||||||
Cost | ||||||||||||||||||||
U.S. government and government agencies | $ | 241,874 | 17,219 | (1 | ) | 259,092 | ||||||||||||||
Foreign government | 28,813 | 1,540 | (124 | ) | 30,229 | |||||||||||||||
Obligations of states and political subdivisions | 773,953 | 44,398 | (327 | ) | 818,024 | |||||||||||||||
Corporate securities | 1,368,954 | 81,696 | (402 | ) | 1,450,248 | |||||||||||||||
ABS | 126,330 | 2,319 | (9 | ) | 128,640 | |||||||||||||||
CMBS1 | 133,763 | 4,572 | (1,216 | ) | 137,119 | |||||||||||||||
RMBS2 | 456,996 | 15,961 | (296 | ) | 472,661 | |||||||||||||||
AFS fixed maturity securities | 3,130,683 | 167,705 | (2,375 | ) | 3,296,013 | |||||||||||||||
AFS equity securities | 132,441 | 19,400 | (459 | ) | 151,382 | |||||||||||||||
Total AFS securities | $ | 3,263,124 | 187,105 | (2,834 | ) | 3,447,395 | ||||||||||||||
1 CMBS includes government guaranteed agency securities with a fair value of $35.5 million at September 30, 2013 and $48.9 million at December 31, 2012. | ||||||||||||||||||||
2 RMBS includes government guaranteed agency securities with a fair value of $61.4 million at September 30, 2013 and $91.0 million at December 31, 2012. | ||||||||||||||||||||
Schedule of Fair Value and Gross Pre-Tax Net Unrealized/Unrecognized Loss of Securities by Length of Time | ' | |||||||||||||||||||
September 30, 2013 | Less than 12 months | 12 months or longer | ||||||||||||||||||
($ in thousands) | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||||||||||
Losses1 | Losses1 | |||||||||||||||||||
AFS securities | ||||||||||||||||||||
U.S. government and government agencies | $ | 13,173 | (327 | ) | 510 | (3 | ) | |||||||||||||
Foreign government | 1,056 | (12 | ) | 2,925 | (72 | ) | ||||||||||||||
Obligations of states and political subdivisions | 417,866 | (16,610 | ) | — | — | |||||||||||||||
Corporate securities | 422,816 | (14,200 | ) | 3,837 | (279 | ) | ||||||||||||||
ABS | 87,786 | (471 | ) | 302 | (5 | ) | ||||||||||||||
CMBS | 69,322 | (2,771 | ) | 2,030 | (492 | ) | ||||||||||||||
RMBS | 202,428 | (6,231 | ) | 1,579 | (174 | ) | ||||||||||||||
Total fixed maturity securities | 1,214,447 | (40,622 | ) | 11,183 | (1,025 | ) | ||||||||||||||
Equity securities | 35,275 | (1,878 | ) | — | — | |||||||||||||||
Subtotal | $ | 1,249,722 | (42,500 | ) | 11,183 | (1,025 | ) | |||||||||||||
Less than 12 months | 12 months or longer | |||||||||||||||||||
($ in thousands) | Fair | Unrealized | Unrecognized | Fair | Unrealized | Unrecognized | ||||||||||||||
Value | Losses1 | Gains2 | Value | Losses1 | Gains2 | |||||||||||||||
HTM securities | ||||||||||||||||||||
Obligations of states and political subdivisions | $ | 492 | (20 | ) | 19 | 571 | (24 | ) | 17 | |||||||||||
ABS | — | — | — | 2,476 | (690 | ) | 642 | |||||||||||||
Subtotal | $ | 492 | (20 | ) | 19 | 3,047 | (714 | ) | 659 | |||||||||||
Total AFS and HTM | $ | 1,250,214 | (42,520 | ) | 19 | 14,230 | (1,739 | ) | 659 | |||||||||||
December 31, 2012 | Less than 12 months | 12 months or longer | ||||||||||||||||||
($ in thousands) | Fair | Unrealized | Fair Value | Unrealized | ||||||||||||||||
Value | Losses1 | Losses1 | ||||||||||||||||||
AFS securities | ||||||||||||||||||||
U.S. government and government agencies | $ | 518 | (1 | ) | — | — | ||||||||||||||
Foreign government | — | — | 2,871 | (124 | ) | |||||||||||||||
Obligations of states and political subdivisions | 32,383 | (327 | ) | — | — | |||||||||||||||
Corporate securities | 50,880 | (402 | ) | — | — | |||||||||||||||
ABS | 9,137 | (9 | ) | — | — | |||||||||||||||
CMBS | 7,637 | (19 | ) | 11,830 | (1,197 | ) | ||||||||||||||
RMBS | 8,710 | (59 | ) | 5,035 | (237 | ) | ||||||||||||||
Total fixed maturity securities | 109,265 | (817 | ) | 19,736 | (1,558 | ) | ||||||||||||||
Equity securities | 15,901 | (459 | ) | — | — | |||||||||||||||
Subtotal | $ | 125,166 | (1,276 | ) | 19,736 | (1,558 | ) | |||||||||||||
Less than 12 months | 12 months or longer | |||||||||||||||||||
($ in thousands) | Fair | Unrealized | Unrecognized | Fair | Unrealized | Unrecognized | ||||||||||||||
Value | Losses1 | Gains2 | Value | Losses1 | Gains2 | |||||||||||||||
HTM securities | ||||||||||||||||||||
Obligations of states and political subdivisions | $ | 1,218 | (33 | ) | 29 | 1,108 | (47 | ) | 38 | |||||||||||
ABS | — | — | — | 2,860 | (840 | ) | 753 | |||||||||||||
Subtotal | 1,218 | (33 | ) | 29 | 3,968 | (887 | ) | 791 | ||||||||||||
Total AFS and HTM | $ | 126,384 | (1,309 | ) | 29 | 23,704 | (2,445 | ) | 791 | |||||||||||
1 Gross unrealized losses include non-OTTI unrealized amounts and OTTI losses recognized in AOCI. In addition, this column includes remaining unrealized gain or loss amounts on securities that were transferred to an HTM designation in the first quarter of 2009 for those securities that are in a net unrealized/unrecognized loss position. | ||||||||||||||||||||
2 Unrecognized gains represent fair value fluctuations from the later of: (i) the date a security is designated as HTM; or (ii) the date that an OTTI charge is recognized on an HTM security. | ||||||||||||||||||||
Schedule Of The Number Of Securities In An Unrealized Unrecognized Loss Position | ' | |||||||||||||||||||
($ in thousands) | ||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||
Number of | % of Market/Book | Unrealized/ | Number of | % of | Unrealized/ | |||||||||||||||
Issues | Unrecognized Loss | Issues | Market/Book | Unrecognized | ||||||||||||||||
Loss | ||||||||||||||||||||
501 | 80% - 99% | $ | 43,295 | 100 | 80% - 99% | $ | 2,701 | |||||||||||||
— | 60% - 79% | — | 1 | 60% - 79% | 233 | |||||||||||||||
1 | 40% - 59% | 286 | — | 40% - 59% | — | |||||||||||||||
— | 20% - 39% | — | — | 20% - 39% | — | |||||||||||||||
— | 0% - 19% | — | — | 0% - 19% | — | |||||||||||||||
$ | 43,581 | $ | 2,934 | |||||||||||||||||
Schedule Of Other Investment Portfolio By Strategy And Remaining Commitment Amount Associated With Each Strategy | ' | |||||||||||||||||||
Other Investments | Carrying Value | September 30, | ||||||||||||||||||
2013 | ||||||||||||||||||||
($ in thousands) | September 30, | December 31, | Remaining Commitment | |||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Alternative Investments | ||||||||||||||||||||
Secondary private equity | $ | 25,954 | 28,032 | 7,703 | ||||||||||||||||
Private equity | 18,951 | 18,344 | 10,502 | |||||||||||||||||
Energy/power generation | 17,049 | 18,640 | 7,076 | |||||||||||||||||
Mezzanine financing | 12,921 | 12,692 | 18,796 | |||||||||||||||||
Real estate | 12,385 | 11,751 | 10,205 | |||||||||||||||||
Distressed debt | 11,911 | 12,728 | 2,964 | |||||||||||||||||
Venture capital | 7,018 | 7,477 | 400 | |||||||||||||||||
Total alternative investments | 106,189 | 109,664 | 57,646 | |||||||||||||||||
Other securities | 1,884 | 4,412 | 1,289 | |||||||||||||||||
Total other investments | $ | 108,073 | 114,076 | 58,935 | ||||||||||||||||
Schedule Of Aggregated Summarized Income Statement Financial Information For Partnerhips In Our Alternative Investment Portfolio | ' | |||||||||||||||||||
Income Statement Information | Quarter ended June 30, | Nine Months ended June 30, | ||||||||||||||||||
($ in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Net investment income | $ | 97.8 | 80 | 352.8 | 170.1 | |||||||||||||||
Realized gains | 162.8 | 19.6 | 762.5 | 1,004.90 | ||||||||||||||||
Net change in unrealized depreciation | 104.8 | (117.1 | ) | 85.9 | (551.1 | ) | ||||||||||||||
Net income (loss) | $ | 365.4 | (17.5 | ) | 1,201.20 | 623.9 | ||||||||||||||
Selective’s insurance subsidiaries’ other investments income | $ | 2.6 | 0.5 | 10.1 | 5.5 | |||||||||||||||
Schedule of Net Investment Income earned | ' | |||||||||||||||||||
Quarter ended September 30, | Nine Months ended September 30, | |||||||||||||||||||
($ in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Fixed maturity securities | $ | 30,569 | 30,839 | 90,956 | 93,948 | |||||||||||||||
Equity securities | 1,341 | 1,268 | 4,422 | 3,785 | ||||||||||||||||
Short-term investments | 21 | 36 | 102 | 103 | ||||||||||||||||
Other investments | 2,639 | 497 | 10,110 | 5,460 | ||||||||||||||||
Miscellaneous income | — | 41 | — | 105 | ||||||||||||||||
Investment expenses | (2,113 | ) | (2,031 | ) | (6,260 | ) | (6,117 | ) | ||||||||||||
Net investment income earned | $ | 32,457 | 30,650 | 99,330 | 97,284 | |||||||||||||||
OTTI By Asset Type | ' | |||||||||||||||||||
Third Quarter 2013 | Gross | Included in Other | Recognized in | |||||||||||||||||
Comprehensive | Earnings | |||||||||||||||||||
($ in thousands) | Income (“OCI”) | |||||||||||||||||||
Equity securities | $ | 680 | — | 680 | ||||||||||||||||
OTTI losses | $ | 680 | — | 680 | ||||||||||||||||
Third Quarter 2012 | Gross | Included in OCI | Recognized in Earnings | |||||||||||||||||
($ in thousands) | ||||||||||||||||||||
AFS fixed maturity securities | ||||||||||||||||||||
ABS | $ | 36 | — | 36 | ||||||||||||||||
CMBS | (1,504 | ) | (2,023 | ) | 519 | |||||||||||||||
Total AFS fixed maturities | (1,468 | ) | (2,023 | ) | 555 | |||||||||||||||
Equity securities | 2,389 | — | 2,389 | |||||||||||||||||
OTTI losses | $ | 921 | (2,023 | ) | 2,944 | |||||||||||||||
Nine Months 2013 | Gross | Included in OCI | Recognized in | |||||||||||||||||
($ in thousands) | Earnings | |||||||||||||||||||
HTM fixed maturity securities: | ||||||||||||||||||||
ABS | $ | (44 | ) | (47 | ) | 3 | ||||||||||||||
Total HTM fixed maturity securities | (44 | ) | (47 | ) | 3 | |||||||||||||||
AFS fixed maturity securities: | ||||||||||||||||||||
RMBS | (22 | ) | (30 | ) | 8 | |||||||||||||||
Total AFS fixed maturity securities | (22 | ) | (30 | ) | 8 | |||||||||||||||
Equity securities | 1,326 | — | 1,326 | |||||||||||||||||
Total AFS securities | 1,304 | (30 | ) | 1,334 | ||||||||||||||||
Other investments | 1,847 | — | 1,847 | |||||||||||||||||
OTTI losses | $ | 3,107 | (77 | ) | 3,184 | |||||||||||||||
Nine Months 2012 | Gross | Included in OCI | Recognized in | |||||||||||||||||
($ in thousands) | Earnings | |||||||||||||||||||
AFS fixed maturity securities | ||||||||||||||||||||
ABS | $ | 98 | — | 98 | ||||||||||||||||
CMBS | (1,396 | ) | (2,023 | ) | 627 | |||||||||||||||
RMBS | (44 | ) | (218 | ) | 174 | |||||||||||||||
Total AFS fixed maturity securities | (1,342 | ) | (2,241 | ) | 899 | |||||||||||||||
Equity securities | 2,560 | — | 2,560 | |||||||||||||||||
OTTI losses | $ | 1,218 | (2,241 | ) | 3,459 | |||||||||||||||
Gross Credit Loss Impairments on Fixed Maturity Securities for Which a Portion of the OTTI Charge was Recognized in OCI | ' | |||||||||||||||||||
Quarter ended September 30, | ||||||||||||||||||||
($ in thousands) | 2013 | 2012 | ||||||||||||||||||
Balance, beginning of period | $ | 7,488 | 6,775 | |||||||||||||||||
Addition for the amount related to credit loss for which an OTTI was not previously recognized | — | — | ||||||||||||||||||
Reductions for securities sold during the period | — | — | ||||||||||||||||||
Reductions for securities for which the amount previously recognized in OCI was recognized in earnings because of intention or potential requirement to sell before recovery of amortized cost | — | — | ||||||||||||||||||
Reductions for securities for which the entire amount previously recognized in OCI was recognized in earnings due to a decrease in cash flows expected | — | — | ||||||||||||||||||
Additional increases to the amount related to credit loss for which an OTTI was previously recognized | — | 519 | ||||||||||||||||||
Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected | — | — | ||||||||||||||||||
Balance, end of period | $ | 7,488 | 7,294 | |||||||||||||||||
Nine Months ended September 30, | ||||||||||||||||||||
($ in thousands) | 2013 | 2012 | ||||||||||||||||||
Balance, beginning of period | $ | 7,477 | 6,602 | |||||||||||||||||
Addition for the amount related to credit loss for which an OTTI was not previously recognized | — | — | ||||||||||||||||||
Reductions for securities sold during the period | — | — | ||||||||||||||||||
Reductions for securities for which the amount previously recognized in OCI was recognized in earnings because of intention or potential requirement to sell before recovery of amortized cost | — | — | ||||||||||||||||||
Reductions for securities for which the entire amount previously recognized in OCI was recognized in earnings due to a decrease in cash flows expected | — | — | ||||||||||||||||||
Additional increases to the amount related to credit loss for which an OTTI was previously recognized | 11 | 692 | ||||||||||||||||||
Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected | — | — | ||||||||||||||||||
Balance, end of period | $ | 7,488 | 7,294 | |||||||||||||||||
Components of Net Realized Gains Excluding OTTI Charges | ' | |||||||||||||||||||
Quarter ended September 30, | Nine Months ended September 30, | |||||||||||||||||||
($ in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
HTM fixed maturity securities | ||||||||||||||||||||
Gains | $ | 32 | 40 | 35 | 195 | |||||||||||||||
Losses | (37 | ) | (90 | ) | (86 | ) | (196 | ) | ||||||||||||
AFS fixed maturity securities | ||||||||||||||||||||
Gains | 662 | 2,168 | 2,580 | 2,941 | ||||||||||||||||
Losses | (31 | ) | (262 | ) | (330 | ) | (379 | ) | ||||||||||||
AFS equity securities | ||||||||||||||||||||
Gains | 13,801 | — | 24,272 | 4,775 | ||||||||||||||||
Losses | (236 | ) | — | (407 | ) | (428 | ) | |||||||||||||
Short-term investments | ||||||||||||||||||||
Losses | — | — | — | (2 | ) | |||||||||||||||
Other Investments | ||||||||||||||||||||
Gains | — | — | — | 1 | ||||||||||||||||
Losses | (80 | ) | — | (940 | ) | — | ||||||||||||||
Total other net realized investment gains | 14,111 | 1,856 | 25,124 | 6,907 | ||||||||||||||||
Total OTTI charges recognized in earnings | (680 | ) | (2,944 | ) | (3,184 | ) | (3,459 | ) | ||||||||||||
Total net realized gains (losses) | $ | 13,431 | (1,088 | ) | 21,940 | 3,448 | ||||||||||||||
Held To Maturity Fixed Maturity Securities [Member] | ' | |||||||||||||||||||
Investments [Line Items] | ' | |||||||||||||||||||
Schedule Of Fixed Maturity Securities By Contractual Maturities | ' | |||||||||||||||||||
($ in thousands) | Carrying Value | Fair Value | ||||||||||||||||||
Due in one year or less | $ | 72,099 | 74,953 | |||||||||||||||||
Due after one year through five years | 312,318 | 331,927 | ||||||||||||||||||
Due after five years through 10 years | 34,747 | 38,176 | ||||||||||||||||||
Due after 10 years | 2,798 | 3,473 | ||||||||||||||||||
Total HTM fixed maturity securities | $ | 421,962 | 448,529 | |||||||||||||||||
AFS Fixed Maturity Securities [Member] | ' | |||||||||||||||||||
Investments [Line Items] | ' | |||||||||||||||||||
Schedule Of Fixed Maturity Securities By Contractual Maturities | ' | |||||||||||||||||||
($ in thousands) | Fair Value | |||||||||||||||||||
Due in one year or less | $ | 324,743 | ||||||||||||||||||
Due after one year through five years | 1,951,770 | |||||||||||||||||||
Due after five years through 10 years | 1,329,795 | |||||||||||||||||||
Due after 10 years | 27,124 | |||||||||||||||||||
Total AFS fixed maturity securities | $ | 3,633,432 | ||||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ||||||||||||||||||||||
The Carrying Amounts and Estimated Fair Values of Financial Instruments | ' | ||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||
($ in thousands) | Carrying Amount | Fair | Carrying Amount | Fair | |||||||||||||||||||
Value | Value | ||||||||||||||||||||||
Financial Assets | |||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||
HTM | $ | 421,962 | 448,529 | 554,069 | 594,661 | ||||||||||||||||||
AFS | 3,633,432 | 3,633,432 | 3,296,013 | 3,296,013 | |||||||||||||||||||
Equity securities, AFS | 180,506 | 180,506 | 151,382 | 151,382 | |||||||||||||||||||
Short-term investments | 172,087 | 172,087 | 214,479 | 214,479 | |||||||||||||||||||
Receivable for proceeds related to sale of Selective HR Solution (“Selective HR”) | — | — | 2,705 | 2,705 | |||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||
Notes payable: | |||||||||||||||||||||||
2.90% borrowings from FHLBI | 13,000 | 13,392 | 13,000 | 13,595 | |||||||||||||||||||
1.25% borrowings from FHLBI | 45,000 | 45,171 | 45,000 | 45,590 | |||||||||||||||||||
7.50% Junior Notes | — | — | 100,000 | 101,480 | |||||||||||||||||||
6.70% Senior Notes | 99,492 | 100,200 | 99,475 | 107,707 | |||||||||||||||||||
7.25% Senior Notes | 49,915 | 51,858 | 49,912 | 52,689 | |||||||||||||||||||
5.875% Senior Notes | 185,000 | 153,550 | — | — | |||||||||||||||||||
Total notes payable | $ | 392,407 | 364,171 | 307,387 | 321,061 | ||||||||||||||||||
Quantitative Disclosures of Our Financial Assets That Were Measured At Fair Value | ' | ||||||||||||||||||||||
September 30, 2013 | Fair Value Measurements Using | ||||||||||||||||||||||
($ in thousands) | Assets | Quoted Prices in | Significant Other | Significant Unobservable | |||||||||||||||||||
Measured at | Active Markets for | Observable | Inputs | ||||||||||||||||||||
Fair Value | Identical Assets/ | Inputs | (Level 3) | ||||||||||||||||||||
at 9/30/13 | Liabilities (Level 1)1 | (Level 2)1 | |||||||||||||||||||||
Description | |||||||||||||||||||||||
Measured on a recurring basis: | |||||||||||||||||||||||
AFS: | |||||||||||||||||||||||
U.S. government and government agencies | $ | 180,786 | 50,871 | 129,915 | — | ||||||||||||||||||
Foreign government | 29,709 | — | 29,709 | — | |||||||||||||||||||
Obligations of states and political subdivisions | 929,498 | — | 929,498 | — | |||||||||||||||||||
Corporate securities | 1,663,151 | — | 1,663,151 | — | |||||||||||||||||||
ABS | 150,766 | — | 144,804 | 5,962 | |||||||||||||||||||
CMBS | 151,948 | — | 150,339 | 1,609 | |||||||||||||||||||
RMBS | 527,574 | — | 527,574 | — | |||||||||||||||||||
Total AFS fixed maturity securities | 3,633,432 | 50,871 | 3,574,990 | 7,571 | |||||||||||||||||||
Equity securities | 180,506 | 177,606 | — | 2,900 | |||||||||||||||||||
Short-term investments | 172,087 | 172,087 | — | — | |||||||||||||||||||
Total assets | $ | 3,986,025 | 400,564 | 3,574,990 | 10,471 | ||||||||||||||||||
1 | There were no transfers of securities between Level 1 and Level 2. | ||||||||||||||||||||||
December 31, 2012 | Fair Value Measurements Using | ||||||||||||||||||||||
($ in thousands) | Assets | Quoted Prices in | Significant | Significant Unobservable | |||||||||||||||||||
Measured at | Active Markets for | Other Observable | Inputs | ||||||||||||||||||||
Fair Value | Identical Assets/Liabilities | Inputs | (Level 3) | ||||||||||||||||||||
at 12/31/12 | (Level 1)1 | (Level 2)1 | |||||||||||||||||||||
Description | |||||||||||||||||||||||
Measured on a recurring basis: | |||||||||||||||||||||||
AFS: | |||||||||||||||||||||||
U.S. government and government agencies | $ | 259,092 | 115,861 | 123,442 | 19,789 | ||||||||||||||||||
Foreign government | 30,229 | — | 30,229 | — | |||||||||||||||||||
Obligations of states and political subdivisions | 818,024 | — | 818,024 | — | |||||||||||||||||||
Corporate securities | 1,450,247 | — | 1,447,301 | 2,946 | |||||||||||||||||||
ABS | 128,640 | — | 122,572 | 6,068 | |||||||||||||||||||
CMBS | 137,119 | — | 129,957 | 7,162 | |||||||||||||||||||
RMBS | 472,662 | — | 472,662 | — | |||||||||||||||||||
Total AFS fixed maturity securities | 3,296,013 | 115,861 | 3,144,187 | 35,965 | |||||||||||||||||||
Equity securities | 151,382 | 147,775 | — | 3,607 | |||||||||||||||||||
Short-term investments | 214,479 | 214,479 | — | — | |||||||||||||||||||
Receivable for proceeds related to sale of Selective HR | 2,705 | — | — | 2,705 | |||||||||||||||||||
Total assets | $ | 3,664,579 | 478,115 | 3,144,187 | 42,277 | ||||||||||||||||||
1 | There were no transfers of securities between Level 1 and Level 2. | ||||||||||||||||||||||
Summary of the Changes in Fair Value of Securities measured Using Level 3 Inputs | ' | ||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||
($ in thousands) | Government | Corporate | ABS | CMBS | Equity | Receivable for | Total | ||||||||||||||||
Proceeds | |||||||||||||||||||||||
Related to Sale | |||||||||||||||||||||||
of Selective HR | |||||||||||||||||||||||
Fair value, December 31, 2012 | $ | 19,789 | 2,946 | 6,068 | 7,162 | 3,607 | 2,705 | 42,277 | |||||||||||||||
Total net (losses) gains for the period included in: | |||||||||||||||||||||||
OCI1 | (537 | ) | (7 | ) | (106 | ) | 681 | 3,935 | — | 3,966 | |||||||||||||
Net income2,3 | (76 | ) | — | — | 354 | — | (1,480 | ) | (1,202 | ) | |||||||||||||
Purchases | — | — | — | — | — | — | — | ||||||||||||||||
Sales | — | — | — | — | — | — | — | ||||||||||||||||
Issuances | — | — | — | — | — | — | — | ||||||||||||||||
Settlements | (1,847 | ) | (168 | ) | — | (1,603 | ) | — | (225 | ) | (3,843 | ) | |||||||||||
Transfers into Level 3 | — | — | — | — | — | — | — | ||||||||||||||||
Transfers out of Level 3 | (17,329 | ) | (2,771 | ) | — | (4,985 | ) | (4,642 | ) | (1,000 | ) | (30,727 | ) | ||||||||||
Fair value, September 30, 2013 | $ | — | — | 5,962 | 1,609 | 2,900 | — | 10,471 | |||||||||||||||
1 Amounts are reported in “Unrealized holding gains (losses) arising during period” on the Unaudited Consolidated Statements of Comprehensive Income. | |||||||||||||||||||||||
2 Amounts are reported in “Net realized gains (losses)” for realized gains and “Net investment income earned” for amortization of securities on the Unaudited Consolidated Statements of Income. | |||||||||||||||||||||||
3 For the receivable related to the sale of Selective HR, amounts in “Loss on disposal of discontinued operations, net of tax” relate to an impairment charge and amounts in “Other income” relate to interest accretion on the Unaudited Consolidated Statements of Income. | |||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||
($ in thousands) | Government | Corporate | ABS | CMBS | Equity | Receivable for | Total | ||||||||||||||||
Proceeds | |||||||||||||||||||||||
Related to Sale | |||||||||||||||||||||||
of Selective HR | |||||||||||||||||||||||
Fair value, December 31, 2011 | $ | 21,741 | 2,603 | — | 354 | — | 3,212 | 27,910 | |||||||||||||||
Total net (losses) gains for the period included in: | |||||||||||||||||||||||
OCI1 | (22 | ) | 185 | 68 | 858 | — | — | 1,089 | |||||||||||||||
Net income2,3 | (193 | ) | — | — | (51 | ) | — | 244 | — | ||||||||||||||
Purchases | — | — | 7,300 | 5,611 | — | — | 12,911 | ||||||||||||||||
Sales | — | — | — | — | — | — | — | ||||||||||||||||
Issuances | — | — | — | — | — | — | — | ||||||||||||||||
Settlements | (1,737 | ) | (630 | ) | — | (624 | ) | — | (751 | ) | (3,742 | ) | |||||||||||
Transfers into Level 3 | — | 788 | — | 8,247 | 3,607 | — | 12,642 | ||||||||||||||||
Transfers out of Level 3 | — | — | (1,300 | ) | (7,233 | ) | — | — | (8,533 | ) | |||||||||||||
Fair value, December 31, 2012 | $ | 19,789 | 2,946 | 6,068 | 7,162 | 3,607 | 2,705 | 42,277 | |||||||||||||||
1 Amounts are reported in “Unrealized holding gains arising during period” on the Consolidated Statements of Comprehensive Income in our 2012 Annual Report. | |||||||||||||||||||||||
2 Amounts are reported in “Net realized gains (losses)” for realized gains and losses and “Net investment income earned” for amortization for the CMBS securities on the Consolidated Statements of Income in our 2012 Annual Report. | |||||||||||||||||||||||
3 Amounts are reported in “Other income” for the receivable related to the sale of Selective HR on the Consolidated Statements of Income in our 2012 Annual Report and are related to interest accretion on the receivable. | |||||||||||||||||||||||
Quantitative Information of Our Financial Assets and Liabilities That Were Disclosed at Fair Value | ' | ||||||||||||||||||||||
: | |||||||||||||||||||||||
September 30, 2013 | Fair Value Measurements Using | ||||||||||||||||||||||
($ in thousands) | Assets/ | Quoted Prices in | Significant Other | Significant | |||||||||||||||||||
Liabilities | Active Markets for | Observable | Unobservable | ||||||||||||||||||||
Disclosed at | Identical Assets/ | Inputs | Inputs | ||||||||||||||||||||
Fair Value at 9/30/2013 | Liabilities | (Level 2) | (Level 3) | ||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||
Financial Assets | |||||||||||||||||||||||
HTM: | |||||||||||||||||||||||
Foreign government | $ | 5,565 | — | 5,565 | — | ||||||||||||||||||
Obligations of states and political subdivisions | 395,643 | — | 395,643 | — | |||||||||||||||||||
Corporate securities | 31,777 | — | 31,777 | — | |||||||||||||||||||
ABS | 5,911 | — | 4,854 | 1,057 | |||||||||||||||||||
CMBS | 9,633 | — | 9,633 | — | |||||||||||||||||||
Total HTM fixed maturity securities | $ | 448,529 | — | 447,472 | 1,057 | ||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||
Notes payable: | |||||||||||||||||||||||
2.90% borrowings from FHLBI | $ | 13,392 | — | 13,392 | — | ||||||||||||||||||
1.25% borrowings from FHLBI | 45,171 | — | 45,171 | — | |||||||||||||||||||
6.70% Senior Notes | 100,200 | — | 100,200 | — | |||||||||||||||||||
7.25% Senior Notes | 51,858 | — | 51,858 | — | |||||||||||||||||||
5.875% Senior Notes | 153,550 | 153,550 | — | — | |||||||||||||||||||
Total notes payable | $ | 364,171 | 153,550 | 210,621 | — | ||||||||||||||||||
December 31, 2012 | Fair Value Measurements Using | ||||||||||||||||||||||
($ in thousands) | Assets/ | Quoted Prices in | Significant Other | Significant | |||||||||||||||||||
Liabilities | Active Markets for | Observable | Unobservable | ||||||||||||||||||||
Disclosed at | Identical Assets/ | Inputs | Inputs | ||||||||||||||||||||
Fair Value at 12/31/2012 | Liabilities | (Level 2) | (Level 3) | ||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||
Financial Assets | |||||||||||||||||||||||
HTM: | |||||||||||||||||||||||
Foreign government | $ | 5,871 | — | 5,871 | — | ||||||||||||||||||
Obligations of states and political subdivisions | 526,922 | — | 526,922 | — | |||||||||||||||||||
Corporate securities | 42,121 | — | 37,289 | 4,832 | |||||||||||||||||||
ABS | 7,097 | — | 5,698 | 1,399 | |||||||||||||||||||
CMBS | 12,650 | — | 12,650 | — | |||||||||||||||||||
Total HTM fixed maturity securities | $ | 594,661 | — | 588,430 | 6,231 | ||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||
Notes payable: | |||||||||||||||||||||||
2.90% borrowings from FHLBI | $ | 13,595 | — | 13,595 | — | ||||||||||||||||||
1.25% borrowings from FHLBI | 45,590 | — | 45,590 | — | |||||||||||||||||||
7.50% Junior Notes | 101,480 | 101,480 | — | — | |||||||||||||||||||
6.70% Senior Notes | 107,707 | 107,707 | — | — | |||||||||||||||||||
7.25% Senior Notes | 52,689 | — | 52,689 | — | |||||||||||||||||||
Total notes payable | $ | 321,061 | 209,187 | 111,874 | — | ||||||||||||||||||
Reinsurance_Tables
Reinsurance (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Reinsurance Disclosures [Abstract] | ' | |||||||||||||
List Of Direct, Assumed, And Ceded Reinsurance Amounts | ' | |||||||||||||
Quarter ended September 30, | Nine Months ended September 30, | |||||||||||||
($ in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Premiums written: | ||||||||||||||
Direct | $ | 570,849 | 520,943 | 1,650,855 | 1,504,429 | |||||||||
Assumed | 22,053 | 17,976 | 34,913 | 44,712 | ||||||||||
Ceded | (100,154 | ) | (88,401 | ) | (280,719 | ) | (252,888 | ) | ||||||
Net | $ | 492,748 | 450,518 | 1,405,049 | 1,296,253 | |||||||||
Premiums earned: | ||||||||||||||
Direct | $ | 518,307 | 474,055 | 1,516,454 | 1,389,373 | |||||||||
Assumed | 11,066 | 18,595 | 32,480 | 49,683 | ||||||||||
Ceded | (91,805 | ) | (86,425 | ) | (264,174 | ) | (261,790 | ) | ||||||
Net | $ | 437,568 | 406,225 | 1,284,760 | 1,177,266 | |||||||||
Loss and loss expense incurred: | ||||||||||||||
Direct | $ | 350,648 | 327,883 | 1,055,248 | 881,537 | |||||||||
Assumed | 7,264 | 13,970 | 22,758 | 35,039 | ||||||||||
Ceded | (74,595 | ) | (69,602 | ) | (245,246 | ) | (103,516 | ) | ||||||
Net | $ | 283,317 | 272,251 | 832,760 | 813,060 | |||||||||
Ceded Premiums and Losses Related to Flood Operations | ' | |||||||||||||
NFIP | Quarter ended September 30, | Nine Months ended September 30, | ||||||||||||
($ in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Ceded premiums written | $ | (64,196 | ) | (58,923 | ) | (183,364 | ) | (171,172 | ) | |||||
Ceded premiums earned | (57,920 | ) | (53,222 | ) | (169,697 | ) | (157,895 | ) | ||||||
Ceded loss and loss expense incurred | (34,879 | ) | (32,702 | ) | (162,780 | ) | (24,534 | ) |
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||
Revenue from Continuing Operations By Segment | ' | |||||||||||||
Revenue by Segment | Quarter ended September 30, | Nine Months ended September 30, | ||||||||||||
($ in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Standard Insurance Operations: | ||||||||||||||
Net premiums earned: | ||||||||||||||
Commercial automobile | $ | 79,138 | 72,758 | 230,191 | 214,782 | |||||||||
Workers compensation | 66,510 | 65,592 | 197,449 | 198,064 | ||||||||||
General liability | 100,925 | 93,763 | 298,394 | 276,538 | ||||||||||
Commercial property | 57,004 | 52,197 | 165,356 | 151,945 | ||||||||||
Businessowners’ policies | 19,629 | 17,749 | 56,794 | 51,872 | ||||||||||
Bonds | 4,705 | 4,713 | 14,244 | 14,076 | ||||||||||
Other | 3,051 | 2,921 | 9,036 | 9,202 | ||||||||||
Total standard Commercial Lines | 330,962 | 309,693 | 971,464 | 916,479 | ||||||||||
Personal automobile | 38,513 | 38,295 | 115,432 | 113,648 | ||||||||||
Homeowners | 32,374 | 29,919 | 95,211 | 86,685 | ||||||||||
Other | 3,827 | 3,591 | 10,655 | 10,037 | ||||||||||
Total standard Personal Lines | 74,714 | 71,805 | 221,298 | 210,370 | ||||||||||
Total Standard Insurance Operations net premiums earned | 405,676 | 381,498 | 1,192,762 | 1,126,849 | ||||||||||
Miscellaneous income | 3,342 | 1,009 | 9,590 | 6,904 | ||||||||||
Total Standard Insurance Operations revenue | 409,018 | 382,507 | 1,202,352 | 1,133,753 | ||||||||||
E&S Insurance Operations: | ||||||||||||||
Net premiums earned | 31,892 | 24,727 | 91,998 | 50,417 | ||||||||||
Investments: | ||||||||||||||
Net investment income | 32,457 | 30,650 | 99,330 | 97,284 | ||||||||||
Net realized investment gains (losses) | 13,431 | (1,088 | ) | 21,940 | 3,448 | |||||||||
Total investment revenues | 45,888 | 29,562 | 121,270 | 100,732 | ||||||||||
Total all segments | 486,798 | 436,796 | 1,415,620 | 1,284,902 | ||||||||||
Other income | 15 | 76 | 87 | 225 | ||||||||||
Total revenues from continuing operations | $ | 486,813 | 436,872 | 1,415,707 | 1,285,127 | |||||||||
Income From Continuing Operations, Before Federal Income Tax | ' | |||||||||||||
Income from Continuing Operations before Federal Income Tax | Quarter ended September 30, | Nine Months ended September 30, | ||||||||||||
($ in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Standard Insurance Operations: | ||||||||||||||
Commercial Lines underwriting gain (loss) | $ | 8,776 | (651 | ) | 24,621 | (14,666 | ) | |||||||
Personal Lines underwriting gain | 1,362 | 7,220 | 4,360 | 2,903 | ||||||||||
Total Standard Insurance Operations underwriting gain (loss), before federal income tax | 10,138 | 6,569 | 28,981 | (11,763 | ) | |||||||||
GAAP combined ratio | 97.5 | % | 98.3 | 97.6 | 101 | |||||||||
Statutory combined ratio | 96 | % | 96.9 | 96.6 | 100.1 | |||||||||
E&S Insurance Operations: | ||||||||||||||
Underwriting gain (loss) | 13 | (5,708 | ) | (2,186 | ) | (15,701 | ) | |||||||
GAAP combined ratio | 100 | % | 123.1 | 102.4 | 131.1 | |||||||||
Statutory combined ratio | 100.5 | % | 121.6 | 101.9 | 120.3 | |||||||||
Investments: | ||||||||||||||
Net investment income | 32,457 | 30,650 | 99,330 | 97,284 | ||||||||||
Net realized investment gains (losses) | 13,431 | (1,088 | ) | 21,940 | 3,448 | |||||||||
Total investment income, before federal income tax | 45,888 | 29,562 | 121,270 | 100,732 | ||||||||||
Total all segments | 56,039 | 30,423 | 148,065 | 73,268 | ||||||||||
Interest expense | (5,570 | ) | (4,725 | ) | (16,971 | ) | (14,148 | ) | ||||||
General corporate and other expenses | (5,984 | ) | (5,384 | ) | (21,540 | ) | (16,307 | ) | ||||||
Income from continuing operations before federal income tax | $ | 44,485 | 20,314 | 109,554 | 42,813 | |||||||||
Indebtedness_Indebtedness_Tabl
Indebtedness Indebtedness (Tables) | 9 Months Ended | ||
Sep. 30, 2013 | |||
Debt Disclosure [Abstract] | ' | ||
Convenants in the Line of Credit | ' | ||
Required as of | Actual as of | ||
30-Sep-13 | 30-Sep-13 | ||
Consolidated net worth | $785 million | $1.1 billion | |
Statutory surplus | Not less than $750 million | $1.2 billion | |
Debt-to-capitalization ratio1 | Not to exceed 35% | 26.00% | |
A.M. Best financial strength rating | Minimum of A- | A | |
1Calculated in accordance with the Line of Credit agreement. |
Retirement_Plans_Table
Retirement Plans (Table) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||
Funded Status Of Retirement Income Plan | ' | |||||||||||||
Retirement Income Plan | ||||||||||||||
($ in thousands) | 30-Sep-13 | 31-Dec-12 | ||||||||||||
Change in Benefit Obligation: | ||||||||||||||
Benefit obligation, beginning of year | $ | 302,647 | 254,009 | |||||||||||
Service cost | 2,449 | 8,091 | ||||||||||||
Interest cost | 3,303 | 12,981 | ||||||||||||
Actuarial (gain) losses | (11,485 | ) | 33,596 | |||||||||||
Benefits paid | (1,598 | ) | (6,030 | ) | ||||||||||
Impact of curtailment | (29,603 | ) | — | |||||||||||
Benefit obligation, end of period | $ | 265,713 | 302,647 | |||||||||||
Change in Fair Value of Assets: | ||||||||||||||
Fair value of assets, beginning of year | $ | 207,150 | 182,614 | |||||||||||
Actual return on plan assets, net of expenses | 6,760 | 21,896 | ||||||||||||
Contribution by employer to funded plans | 2,650 | 8,550 | ||||||||||||
Contribution by employer to unfunded plans | 30 | 120 | ||||||||||||
Benefits paid | (1,598 | ) | (6,030 | ) | ||||||||||
Fair value of assets, end of period | $ | 214,992 | 207,150 | |||||||||||
Funded status | $ | (50,721 | ) | (95,497 | ) | |||||||||
Schedule of Amounts Recognized in Balance Sheet | ' | |||||||||||||
Amount Recognized in Consolidated Balance Sheet: | ||||||||||||||
Liabilities | $ | (50,721 | ) | (95,497 | ) | |||||||||
Net pension liability, end of period | $ | (50,721 | ) | (95,497 | ) | |||||||||
Amounts recognized in AOCI | ' | |||||||||||||
Amount Recognized in AOCI: | ||||||||||||||
Prior service cost | $ | — | 26 | |||||||||||
Net actuarial loss | 57,543 | 103,365 | ||||||||||||
Total | $ | 57,543 | 103,391 | |||||||||||
Other Information | ' | |||||||||||||
Other Information: | ||||||||||||||
Accumulated benefit obligation | $ | 257,412 | 265,899 | |||||||||||
Weighted-Average Liability Assumptions | ' | |||||||||||||
Weighted-Average Liability Assumptions: | ||||||||||||||
Discount Rate | 4.66 | % | 4.42 | |||||||||||
Rate of compensation increase | 4 | % | 4 | |||||||||||
Components Of Net Periodic Benefit Cost And Other Amounts Recognized In Other Comprehensive Income | ' | |||||||||||||
Retirement Income Plan | Retirement Life Plan | |||||||||||||
Quarter ended September 30, | Quarter ended September 30, | |||||||||||||
($ in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Components of Net Periodic Benefit Cost and Other Amounts Recognized in OCI: | ||||||||||||||
Net Periodic Benefit Cost: | ||||||||||||||
Service cost | $ | 1,857 | 2,154 | — | — | |||||||||
Interest cost | 3,053 | 3,230 | 69 | 73 | ||||||||||
Expected return on plan assets | (3,986 | ) | (3,547 | ) | — | — | ||||||||
Amortization of unrecognized prior service cost | — | 38 | — | — | ||||||||||
Amortization of unrecognized net actuarial loss | 772 | 1,383 | 18 | 8 | ||||||||||
Total net periodic cost | $ | 1,696 | 3,258 | 87 | 81 | |||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in OCI: | ||||||||||||||
Reversal of amortization of net actuarial loss | $ | (772 | ) | (1,383 | ) | (18 | ) | (8 | ) | |||||
Reversal of amortization of prior service cost | — | (38 | ) | — | — | |||||||||
Total recognized in OCI | $ | (772 | ) | (1,421 | ) | (18 | ) | (8 | ) | |||||
Total recognized in net periodic benefit cost and OCI | $ | 924 | 1,837 | 69 | 73 | |||||||||
Retirement Income Plan | Retirement Life Plan | |||||||||||||
Nine Months ended September 30, | Nine Months ended September 30, | |||||||||||||
($ in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Components of Net Periodic Benefit Cost and Other Amounts Recognized in OCI: | ||||||||||||||
Net Periodic Benefit Cost: | ||||||||||||||
Service cost | $ | 6,163 | 6,462 | — | — | |||||||||
Interest cost | 9,407 | 9,690 | 208 | 221 | ||||||||||
Expected return on plan assets | (11,819 | ) | (10,641 | ) | — | — | ||||||||
Amortization of unrecognized prior service cost | 10 | 113 | — | — | ||||||||||
Amortization of unrecognized net actuarial loss | 3,366 | 4,149 | 53 | 23 | ||||||||||
Curtailment expense | 16 | — | — | — | ||||||||||
Total net periodic cost | $ | 7,143 | 9,773 | 261 | 244 | |||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in OCI: | ||||||||||||||
Net actuarial gain due to curtailment | $ | (44,000 | ) | — | — | — | ||||||||
Reversal of amortization of net actuarial loss | (3,366 | ) | (4,149 | ) | (53 | ) | (23 | ) | ||||||
Reversal of amortization of prior service cost | (10 | ) | (113 | ) | — | — | ||||||||
Curtailment expense | (16 | ) | — | — | — | |||||||||
Total recognized in OCI | $ | (47,392 | ) | (4,262 | ) | (53 | ) | (23 | ) | |||||
Total recognized in net periodic benefit cost and OCI | $ | (40,249 | ) | 5,511 | 208 | 221 | ||||||||
Schedule Of Weighted-Average Expense Assumption | ' | |||||||||||||
Retirement Income Plan | Retirement Life Plan | |||||||||||||
Nine Months ended September 30, | Nine Months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Weighted-Average Expense Assumptions: | ||||||||||||||
Discount rate | 4.66 | % | 5.16 | 4.42 | % | 5.16 | ||||||||
Expected return on plan assets | 7.4 | 7.75 | — | — | ||||||||||
Rate of compensation increase | 4 | 4 | — | — | ||||||||||
Schedule of Expected Benefit Payments | ' | |||||||||||||
($ in thousands) | Retirement Income Plan | |||||||||||||
Benefits Expected to be Paid in Future Years | ||||||||||||||
Fiscal Years: | ||||||||||||||
2013 | $ | 7,586 | ||||||||||||
2014 | 8,384 | |||||||||||||
2015 | 9,148 | |||||||||||||
2016 | 9,942 | |||||||||||||
2017 | 10,810 | |||||||||||||
2018-2022 | 67,447 | |||||||||||||
Comprehensive_Income_Tables
Comprehensive Income (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ' | |||||||||||||||||||
Components of Comprehensive Income-Gross and Net of Tax | ' | |||||||||||||||||||
Nine Months 2013 | ||||||||||||||||||||
($ in thousands) | Gross | Tax | Net | |||||||||||||||||
Net income | $ | 108,019 | 26,936 | 81,083 | ||||||||||||||||
Components of OCI: | ||||||||||||||||||||
Unrealized losses on investment securities: | ||||||||||||||||||||
Unrealized holding losses during the period | (77,810 | ) | (27,234 | ) | (50,576 | ) | ||||||||||||||
Non-credit OTTI recognized in OCI | 77 | 27 | 50 | |||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
HTM securities | (1,803 | ) | (631 | ) | (1,172 | ) | ||||||||||||||
Non-credit OTTI | 14 | 5 | 9 | |||||||||||||||||
Realized gains on AFS securities | (24,780 | ) | (8,673 | ) | (16,107 | ) | ||||||||||||||
Net unrealized losses | (104,302 | ) | (36,506 | ) | (67,796 | ) | ||||||||||||||
Defined benefit pension and post-retirement plans: | ||||||||||||||||||||
Net actuarial gain | 44,000 | 15,400 | 28,600 | |||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
Net actuarial loss | 3,419 | 1,197 | 2,222 | |||||||||||||||||
Prior service cost | 10 | 4 | 6 | |||||||||||||||||
Curtailment expense | 16 | 5 | 11 | |||||||||||||||||
Defined benefit pension and post-retirement plans | 47,445 | 16,606 | 30,839 | |||||||||||||||||
Other comprehensive loss | (56,857 | ) | (19,900 | ) | (36,957 | ) | ||||||||||||||
Comprehensive income | $ | 51,162 | 7,036 | 44,126 | ||||||||||||||||
Nine Months 2012 | ||||||||||||||||||||
($ in thousands) | Gross | Tax | Net | |||||||||||||||||
Net income | $ | 42,813 | 6,158 | 36,655 | ||||||||||||||||
Components of OCI: | ||||||||||||||||||||
Unrealized gains on investment securities: | ||||||||||||||||||||
Unrealized holding gains during the period | 64,273 | 22,496 | 41,777 | |||||||||||||||||
Non-credit OTTI recognized in OCI | 2,241 | 784 | 1,457 | |||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
HTM securities | (1,901 | ) | (665 | ) | (1,236 | ) | ||||||||||||||
Non-credit OTTI | 272 | 95 | 177 | |||||||||||||||||
Realized gains on AFS securities | (3,451 | ) | (1,208 | ) | (2,243 | ) | ||||||||||||||
Net unrealized gains | 61,434 | 21,502 | 39,932 | |||||||||||||||||
Defined benefit pension and post-retirement plans: | ||||||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
Net actuarial loss | 4,172 | 1,460 | 2,712 | |||||||||||||||||
Prior service cost | 113 | 40 | 73 | |||||||||||||||||
Defined benefit pension and post-retirement plans | 4,285 | 1,500 | 2,785 | |||||||||||||||||
Other comprehensive income | 65,719 | 23,002 | 42,717 | |||||||||||||||||
Comprehensive income | $ | 108,532 | 29,160 | 79,372 | ||||||||||||||||
Third Quarter 2013 | ||||||||||||||||||||
($ in thousands) | Gross | Tax | Net | |||||||||||||||||
Net income | $ | 44,485 | 11,832 | 32,653 | ||||||||||||||||
Components of OCI: | ||||||||||||||||||||
Unrealized losses on investment securities: | ||||||||||||||||||||
Unrealized gains during the period | 9,820 | 3,437 | 6,383 | |||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
HTM securities | (472 | ) | (165 | ) | (307 | ) | ||||||||||||||
Non-credit OTTI | 1 | — | 1 | |||||||||||||||||
Realized gains on AFS securities | (13,516 | ) | (4,731 | ) | (8,785 | ) | ||||||||||||||
Net unrealized losses | (4,167 | ) | (1,459 | ) | (2,708 | ) | ||||||||||||||
Defined benefit pension and post-retirement plans: | ||||||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
Net actuarial loss | 790 | 277 | 513 | |||||||||||||||||
Defined benefit pension and post-retirement plans | 790 | 277 | 513 | |||||||||||||||||
Other comprehensive loss | (3,377 | ) | (1,182 | ) | (2,195 | ) | ||||||||||||||
Comprehensive income | $ | 41,108 | 10,650 | 30,458 | ||||||||||||||||
Third Quarter 2012 | ||||||||||||||||||||
($ in thousands) | Gross | Tax | Net | |||||||||||||||||
Net income | $ | 20,314 | 2,040 | 18,274 | ||||||||||||||||
Components of OCI: | ||||||||||||||||||||
Unrealized gains on investment securities: | ||||||||||||||||||||
Unrealized holding gains during the period | 36,620 | 12,817 | 23,803 | |||||||||||||||||
Non-credit OTTI recognized in OCI | 2,023 | 708 | 1,315 | |||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
HTM securities | (336 | ) | (117 | ) | (219 | ) | ||||||||||||||
Non-credit OTTI | 9 | 3 | 6 | |||||||||||||||||
Realized losses on AFS securities | 1,037 | 363 | 674 | |||||||||||||||||
Net unrealized gains | 39,353 | 13,774 | 25,579 | |||||||||||||||||
Defined benefit pension and post-retirement plans: | ||||||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
Net actuarial loss | 1,391 | 487 | 904 | |||||||||||||||||
Prior service cost | 38 | 14 | 24 | |||||||||||||||||
Defined benefit pension and post-retirement plans | 1,429 | 501 | 928 | |||||||||||||||||
Other comprehensive income | 40,782 | 14,275 | 26,507 | |||||||||||||||||
Comprehensive income | $ | 61,096 | 16,315 | 44,781 | ||||||||||||||||
Components of Accumulated Other Comprehensive Income | ' | |||||||||||||||||||
September 30, 2013 | Net Unrealized (Loss) Gain on Investment Securities | |||||||||||||||||||
($ in thousands) | OTTI | HTM | All | Investments | Defined Benefit | Total AOCI | ||||||||||||||
Related | Related | Other | Subtotal | Pension and Post-Retirement Plans | ||||||||||||||||
Balance, December 31, 2012 | $ | (1,658 | ) | 2,594 | 121,391 | 122,327 | (68,287 | ) | 54,040 | |||||||||||
OCI before reclassifications | 50 | (103 | ) | (50,473 | ) | (50,526 | ) | 28,600 | (21,926 | ) | ||||||||||
Amounts reclassified from AOCI | 9 | (1,172 | ) | (16,107 | ) | (17,270 | ) | 2,239 | (15,031 | ) | ||||||||||
Net current period OCI | 59 | (1,275 | ) | (66,580 | ) | (67,796 | ) | 30,839 | (36,957 | ) | ||||||||||
Balance, September 30, 2013 | $ | (1,599 | ) | 1,319 | 54,811 | 54,531 | (37,448 | ) | 17,083 | |||||||||||
Reclassification Out Of Accumulated Other Comprehensive Income | ' | |||||||||||||||||||
Amount Reclassified from AOCI | Affected Line Item in the Unaudited Consolidated Statement of Income | |||||||||||||||||||
($ in thousands) | Quarter ended September 30, 2013 | Nine Months ended September 30, 2013 | ||||||||||||||||||
OTTI related | ||||||||||||||||||||
Amortization of non-credit OTTI losses on HTM securities | ||||||||||||||||||||
$ | 1 | 14 | Net investment income earned | |||||||||||||||||
1 | 14 | Income (loss) from continuing operations, before federal income tax | ||||||||||||||||||
— | (5 | ) | Total federal income tax expense (benefit) | |||||||||||||||||
1 | 9 | Net income | ||||||||||||||||||
HTM related | ||||||||||||||||||||
Unrealized gains and losses on HTM disposals | (19 | ) | (170 | ) | Net realized investment gains | |||||||||||||||
Amortization of net unrealized gains on HTM securities | (453 | ) | (1,633 | ) | Net investment income earned | |||||||||||||||
(472 | ) | (1,803 | ) | Income (loss) from continuing operations, before federal income tax | ||||||||||||||||
165 | 631 | Total federal income tax expense (benefit) | ||||||||||||||||||
(307 | ) | (1,172 | ) | Net income | ||||||||||||||||
Realized gains and losses on AFS | ||||||||||||||||||||
Realized gains and losses on AFS disposals | (13,516 | ) | (24,780 | ) | Net realized investments gains | |||||||||||||||
(13,516 | ) | (24,780 | ) | Income (loss) from continuing operations, before federal income tax | ||||||||||||||||
4,731 | 8,673 | Total federal income tax expense (benefit) | ||||||||||||||||||
(8,785 | ) | (16,107 | ) | Net income | ||||||||||||||||
Defined benefit pension and post-retirement life plans | ||||||||||||||||||||
Net actuarial loss | 159 | 717 | Loss and loss expense incurred | |||||||||||||||||
631 | 2,702 | Policy acquisition costs | ||||||||||||||||||
790 | 3,419 | Income (loss) from continuing operations, before federal income tax | ||||||||||||||||||
Prior service cost | — | 7 | Loss and loss expense incurred | |||||||||||||||||
— | 3 | Policy acquisition costs | ||||||||||||||||||
— | 10 | Income (loss) from continuing operations, before federal income tax | ||||||||||||||||||
Curtailment expense | — | 16 | Policy acquisition costs | |||||||||||||||||
— | 16 | Income (loss) from continuing operations, before federal income tax | ||||||||||||||||||
Total defined benefit pension and post-retirement life | 790 | 3,445 | Income (loss) from continuing operations, before federal income tax | |||||||||||||||||
(277 | ) | (1,206 | ) | Total federal income tax expense (benefit) | ||||||||||||||||
513 | 2,239 | Net income | ||||||||||||||||||
Total reclassifications for the period | $ | (8,578 | ) | $ | (15,031 | ) | Net income |
Organization_Narrative_Details
Organization (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2013 | |
Number of Operating Segments | 3 |
Statements_of_Cash_Flow_Cash_F
Statements of Cash Flow (Cash Flow Supplemental Disclosures) (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Interest | $13,325,000 | $11,504,000 |
Federal income tax | 17,000,000 | 6,300,000 |
National Flood Insurance Program [Member] | ' | ' |
Restricted Cash | $7,000,000 | ' |
Investments_HeldToMaturity_Sec
Investments (Held-To-Maturity Securities Disclosure) (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
Securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized Cost | $419,932,000 | $550,143,000 |
Net Unrealized Gains (Losses) | 2,030,000 | 3,926,000 |
Carrying Value | 421,962,000 | 554,069,000 |
Unrecognized Holding Gains | 26,567,000 | 40,615,000 |
Unrecognized Holding Losses | 0 | -23,000 |
Fixed maturity securities, held-to-maturity, fair value | 448,529,000 | 594,661,000 |
Held To Maturity securities average duration | '2 years 3 months 18 days | ' |
Number of held to maturity securities transferred to available-for-sale | 16 | ' |
Securities reclassified from the HTM category to AFS carrying value | 39,600,000 | ' |
Securities reclassified from the HTM category to AFS net unrecognized gain | 1,400,000 | ' |
Foreign Government [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized Cost | 5,292,000 | 5,292,000 |
Net Unrealized Gains (Losses) | 151,000 | 212,000 |
Carrying Value | 5,443,000 | 5,504,000 |
Unrecognized Holding Gains | 122,000 | 367,000 |
Unrecognized Holding Losses | 0 | 0 |
Fixed maturity securities, held-to-maturity, fair value | 5,565,000 | 5,871,000 |
Obligations of States and Political Subdivisions [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized Cost | 372,281,000 | 491,180,000 |
Net Unrealized Gains (Losses) | 4,065,000 | 6,769,000 |
Carrying Value | 376,346,000 | 497,949,000 |
Unrecognized Holding Gains | 19,297,000 | 28,996,000 |
Unrecognized Holding Losses | 0 | -23,000 |
Fixed maturity securities, held-to-maturity, fair value | 395,643,000 | 526,922,000 |
Corporate Securities [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized Cost | 29,228,000 | 38,285,000 |
Net Unrealized Gains (Losses) | -466,000 | -812,000 |
Carrying Value | 28,762,000 | 37,473,000 |
Unrecognized Holding Gains | 3,015,000 | 4,648,000 |
Unrecognized Holding Losses | 0 | 0 |
Fixed maturity securities, held-to-maturity, fair value | 31,777,000 | 42,121,000 |
Asset-backed Securities [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized Cost | 5,890,000 | 6,980,000 |
Net Unrealized Gains (Losses) | -755,000 | -1,052,000 |
Carrying Value | 5,135,000 | 5,928,000 |
Unrecognized Holding Gains | 776,000 | 1,170,000 |
Unrecognized Holding Losses | 0 | 0 |
Fixed maturity securities, held-to-maturity, fair value | 5,911,000 | 7,098,000 |
Commercial Mortgage-backed Securities (CMBS) [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized Cost | 7,241,000 | 8,406,000 |
Net Unrealized Gains (Losses) | -965,000 | -1,191,000 |
Carrying Value | 6,276,000 | 7,215,000 |
Unrecognized Holding Gains | 3,357,000 | 5,434,000 |
Unrecognized Holding Losses | 0 | 0 |
Fixed maturity securities, held-to-maturity, fair value | $9,633,000 | $12,649,000 |
Investments_AvailableForSale_S
Investments (Available-For-Sale Securities Disclosure) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Cost/Amortized Cost | $3,732,074,000 | $3,263,124,000 | ||
Unrealized gains | 125,389,000 | 187,105,000 | ||
Unrealized Losses | -43,525,000 | -2,834,000 | ||
Fair Value | 3,813,938,000 | 3,447,395,000 | ||
AFS Fixed Maturity Securities [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Cost/Amortized Cost | 3,573,751,000 | 3,130,683,000 | ||
Unrealized gains | 101,328,000 | 167,705,000 | ||
Unrealized Losses | -41,647,000 | -2,375,000 | ||
Fair Value | 3,633,432,000 | 3,296,013,000 | ||
AFS Fixed Maturity Securities [Member] | U.S. Government and Government Agencies [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Cost/Amortized Cost | 169,163,000 | 241,874,000 | ||
Unrealized gains | 11,953,000 | 17,219,000 | ||
Unrealized Losses | -330,000 | -1,000 | ||
Fair Value | 180,786,000 | 259,092,000 | ||
AFS Fixed Maturity Securities [Member] | Foreign Government [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Cost/Amortized Cost | 28,797,000 | 28,813,000 | ||
Unrealized gains | 996,000 | 1,540,000 | ||
Unrealized Losses | -84,000 | -124,000 | ||
Fair Value | 29,709,000 | 30,229,000 | ||
AFS Fixed Maturity Securities [Member] | Obligations of States and Political Subdivisions [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Cost/Amortized Cost | 918,403,000 | 773,953,000 | ||
Unrealized gains | 27,705,000 | 44,398,000 | ||
Unrealized Losses | -16,610,000 | -327,000 | ||
Fair Value | 929,498,000 | 818,024,000 | ||
AFS Fixed Maturity Securities [Member] | Corporate Securities [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Cost/Amortized Cost | 1,629,698,000 | 1,368,954,000 | ||
Unrealized gains | 47,932,000 | 81,696,000 | ||
Unrealized Losses | -14,479,000 | -402,000 | ||
Fair Value | 1,663,151,000 | 1,450,248,000 | ||
AFS Fixed Maturity Securities [Member] | Asset-backed Securities [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Cost/Amortized Cost | 150,179,000 | 126,330,000 | ||
Unrealized gains | 1,063,000 | 2,319,000 | ||
Unrealized Losses | -476,000 | -9,000 | ||
Fair Value | 150,766,000 | 128,640,000 | ||
AFS Fixed Maturity Securities [Member] | Commercial Mortgage-backed Securities (CMBS) [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Cost/Amortized Cost | 152,464,000 | [1] | 133,763,000 | [1] |
Unrealized gains | 2,747,000 | [1] | 4,572,000 | [1] |
Unrealized Losses | -3,263,000 | [1] | -1,216,000 | [1] |
Fair Value | 151,948,000 | [1] | 137,119,000 | [1] |
Government guaranteed agency securities fair value | 35,500,000 | 48,900,000 | ||
AFS Fixed Maturity Securities [Member] | Residential Mortgage Backed Securities (RMBS) [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Cost/Amortized Cost | 525,047,000 | [2] | 456,996,000 | [2] |
Unrealized gains | 8,932,000 | [2] | 15,961,000 | [2] |
Unrealized Losses | -6,405,000 | [2] | -296,000 | [2] |
Fair Value | 527,574,000 | [2] | 472,661,000 | [2] |
Government guaranteed agency securities fair value | 61,400,000 | 91,000,000 | ||
Equity Securities [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Cost/Amortized Cost | 158,323,000 | 132,441,000 | ||
Unrealized gains | 24,061,000 | 19,400,000 | ||
Unrealized Losses | -1,878,000 | -459,000 | ||
Fair Value | $180,506,000 | $151,382,000 | ||
[1] | CMBS includes government guaranteed agency securities with a fair value of $35.5 million at September 30, 2013 and $48.9 million at December 31, 2012. | |||
[2] | RMBS includes government guaranteed agency securities with a fair value of $61.4 million at September 30, 2013 and $91.0 million at December 31, 2012. |
Investments_Fair_Value_and_Gro
Investments (Fair Value and Gross Pre-Tax Net Unrealized Unrecognized Loss of Securities By Length of Time) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
AFS Fair Value, Less than 12 months | $1,249,722 | $125,166 | ||
AFS Unrealized Losses, Less than 12 months | -42,500 | [1] | -1,276 | [1] |
AFS Fair Value, 12 months or longer | 11,183 | 19,736 | ||
AFS Unrealized Losses, 12 months or longer | -1,025 | [1] | -1,558 | [1] |
HTM Fair Value, Less than 12 months | 492 | 1,218 | ||
HTM Unrealized Losses, Less than 12 months | -20 | [1] | -33 | [1] |
HTM Unrecognized Gains, Less than 12 months | 19 | [2] | 29 | [2] |
HTM Fair Value, 12 months or longer | 3,047 | 3,968 | ||
HTM Unrealized Losses, 12 months or longer | -714 | [1] | -887 | [1] |
HTM Unrecognized Gains, 12 months or longer | 659 | [2] | 791 | [2] |
Total AFS and HTM Fair Value, Less than 12 months | 1,250,214 | 126,384 | ||
Total AFS and HTM Unrealized Losses, Less than 12 months | -42,520 | [1] | -1,309 | [1] |
Total AFS and HTM Fair Value, 12 months or longer | 14,230 | 23,704 | ||
Total AFS and HTM Unrealized Losses, 12 months or longer | -1,739 | [1] | -2,445 | [1] |
Obligations of States and Political Subdivisions [Member] | ' | ' | ||
HTM Fair Value, Less than 12 months | 492 | 1,218 | ||
HTM Unrealized Losses, Less than 12 months | -20 | [1] | -33 | [1] |
HTM Unrecognized Gains, Less than 12 months | 19 | [2] | 29 | [2] |
HTM Fair Value, 12 months or longer | 571 | 1,108 | ||
HTM Unrealized Losses, 12 months or longer | -24 | [1] | -47 | [1] |
HTM Unrecognized Gains, 12 months or longer | 17 | [2] | 38 | [2] |
Asset-backed Securities [Member] | ' | ' | ||
HTM Fair Value, Less than 12 months | 0 | 0 | ||
HTM Unrealized Losses, Less than 12 months | 0 | [1] | 0 | [1] |
HTM Unrecognized Gains, Less than 12 months | 0 | [2] | 0 | [2] |
HTM Fair Value, 12 months or longer | 2,476 | 2,860 | ||
HTM Unrealized Losses, 12 months or longer | -690 | [1] | -840 | [1] |
HTM Unrecognized Gains, 12 months or longer | 642 | [2] | 753 | [2] |
AFS Fixed Maturity Securities [Member] | ' | ' | ||
AFS Fair Value, Less than 12 months | 1,214,447 | 109,265 | ||
AFS Unrealized Losses, Less than 12 months | -40,622 | [1] | -817 | [1] |
AFS Fair Value, 12 months or longer | 11,183 | 19,736 | ||
AFS Unrealized Losses, 12 months or longer | -1,025 | [1] | -1,558 | [1] |
AFS Fixed Maturity Securities [Member] | U.S. Government and Government Agencies [Member] | ' | ' | ||
AFS Fair Value, Less than 12 months | 13,173 | 518 | ||
AFS Unrealized Losses, Less than 12 months | -327 | [1] | -1 | [1] |
AFS Fair Value, 12 months or longer | 510 | 0 | ||
AFS Unrealized Losses, 12 months or longer | -3 | [1] | 0 | [1] |
AFS Fixed Maturity Securities [Member] | Foreign Government [Member] | ' | ' | ||
AFS Fair Value, Less than 12 months | 1,056 | 0 | ||
AFS Unrealized Losses, Less than 12 months | -12 | [1] | 0 | [1] |
AFS Fair Value, 12 months or longer | 2,925 | 2,871 | ||
AFS Unrealized Losses, 12 months or longer | -72 | [1] | -124 | [1] |
AFS Fixed Maturity Securities [Member] | Obligations of States and Political Subdivisions [Member] | ' | ' | ||
AFS Fair Value, Less than 12 months | 417,866 | 32,383 | ||
AFS Unrealized Losses, Less than 12 months | -16,610 | [1] | -327 | [1] |
AFS Fair Value, 12 months or longer | 0 | 0 | ||
AFS Unrealized Losses, 12 months or longer | 0 | [1] | 0 | [1] |
AFS Fixed Maturity Securities [Member] | Corporate Securities [Member] | ' | ' | ||
AFS Fair Value, Less than 12 months | 422,816 | 50,880 | ||
AFS Unrealized Losses, Less than 12 months | -14,200 | [1] | -402 | [1] |
AFS Fair Value, 12 months or longer | 3,837 | 0 | ||
AFS Unrealized Losses, 12 months or longer | -279 | [1] | 0 | [1] |
AFS Fixed Maturity Securities [Member] | Asset-backed Securities [Member] | ' | ' | ||
AFS Fair Value, Less than 12 months | 87,786 | 9,137 | ||
AFS Unrealized Losses, Less than 12 months | -471 | [1] | -9 | [1] |
AFS Fair Value, 12 months or longer | 302 | 0 | ||
AFS Unrealized Losses, 12 months or longer | -5 | [1] | 0 | [1] |
AFS Fixed Maturity Securities [Member] | Commercial Mortgage-backed Securities (CMBS) [Member] | ' | ' | ||
AFS Fair Value, Less than 12 months | 69,322 | 7,637 | ||
AFS Unrealized Losses, Less than 12 months | -2,771 | [1] | -19 | [1] |
AFS Fair Value, 12 months or longer | 2,030 | 11,830 | ||
AFS Unrealized Losses, 12 months or longer | -492 | [1] | -1,197 | [1] |
AFS Fixed Maturity Securities [Member] | Residential Mortgage Backed Securities (RMBS) [Member] | ' | ' | ||
AFS Fair Value, Less than 12 months | 202,428 | 8,710 | ||
AFS Unrealized Losses, Less than 12 months | -6,231 | [1] | -59 | [1] |
AFS Fair Value, 12 months or longer | 1,579 | 5,035 | ||
AFS Unrealized Losses, 12 months or longer | -174 | [1] | -237 | [1] |
Equity Securities [Member] | ' | ' | ||
AFS Fair Value, Less than 12 months | 35,275 | 15,901 | ||
AFS Unrealized Losses, Less than 12 months | -1,878 | [1] | -459 | [1] |
AFS Fair Value, 12 months or longer | 0 | 0 | ||
AFS Unrealized Losses, 12 months or longer | $0 | [1] | $0 | [1] |
[1] | Gross unrealized losses include non-OTTI unrealized amounts and OTTI losses recognized in AOCI. In addition, this column includes remaining unrealized gain or loss amounts on securities that were transferred to an HTM designation in the first quarter of 2009 for those securities that are in a net unrealized/unrecognized loss position. | |||
[2] | Unrecognized gains represent fair value fluctuations from the later of: (i) the date a security is designated as HTM; or (ii) the date that an OTTI charge is recognized on an HTM security. |
Investments_Number_of_Securiti
Investments (Number of Securities in an Unrealized Unrecognized Loss Position) (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
Securities | Securities | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Unrealized Unrecognized Losses Period Increase | ($40,600,000) | ' |
Number of securities in an unrealized/unrecognized loss position | 502 | 101 |
Securities In Unrealized Unrecognized Loss Position For More Than Twelve Months | 1,100,000 | 1,700,000 |
Unrealized Unrecognized Loss | 43,581,000 | 2,934,000 |
Eighty Percent to Ninety-Nine Percent [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Number of securities in an unrealized/unrecognized loss position | 501 | 100 |
Unrealized Unrecognized Loss | 43,295,000 | 2,701,000 |
Sixty Percent to Seventy-Nine Percent [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Number of securities in an unrealized/unrecognized loss position | 0 | 1 |
Unrealized Unrecognized Loss | 0 | 233,000 |
Forty Percent to Fifty-Nine Percent [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Number of securities in an unrealized/unrecognized loss position | 1 | 0 |
Unrealized Unrecognized Loss | 286,000 | 0 |
Twenty Percent to Thirty-Nine Percent [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Number of securities in an unrealized/unrecognized loss position | 0 | 0 |
Unrealized Unrecognized Loss | 0 | 0 |
Zero Percent to Nineteen Percent [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Number of securities in an unrealized/unrecognized loss position | 0 | 0 |
Unrealized Unrecognized Loss | $0 | $0 |
10 year U.S. Treasury Note [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Debt Instruments, Interest Rate, Increase (Decrease) | 85 | ' |
Investments_HTM_Fixed_Maturity
Investments (HTM Fixed Maturity Securities by Contractual Maturity) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Investments [Abstract] | ' | ' |
Due in one year or less Carrying Value | $72,099 | ' |
Due after one year through five years Carrying Value | 312,318 | ' |
Due after five years through 10 years Carrying Value | 34,747 | ' |
Due after 10 years Carrying Value | 2,798 | ' |
Total HTM fixed maturity securities Carrying Value | 421,962 | 554,069 |
Due in one year or less Fair Value | 74,953 | ' |
Due after one year through five years Fair Value | 331,927 | ' |
Due after five years through 10 years Fair Value | 38,176 | ' |
Due after 10 years Fair Value | 3,473 | ' |
Total HTM fixed maturity securities Fair Value | $448,529 | $594,661 |
Investments_AFS_Fixed_Maturity
Investments (AFS Fixed Maturity Securities by Contractual Maturity) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Investments [Abstract] | ' | ' |
Due in one year or less fair value | $324,743 | ' |
Due after one year through five years fair value | 1,951,770 | ' |
Due after five years through 10 years fair value | 1,329,795 | ' |
Due after 10 years fair value | 27,124 | ' |
Total AFS fixed maturity securities | $3,633,432 | $3,296,013 |
Investments_Other_Investment_P
Investments (Other Investment Portfolio by Strategy and the Remaining Commitment Amount Associated With Each Strategy) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Carrying Value | $108,073 | $114,076 |
Other Investments [Member] | ' | ' |
Carrying Value | 108,073 | 114,076 |
Remaining Commitment | 58,935 | ' |
Alternative Investments [Member] | ' | ' |
Carrying Value | 106,189 | 109,664 |
Remaining Commitment | 57,646 | ' |
Secondary Private Equity Member | Alternative Investments [Member] | ' | ' |
Carrying Value | 25,954 | 28,032 |
Remaining Commitment | 7,703 | ' |
Private Equity [Member] | Alternative Investments [Member] | ' | ' |
Carrying Value | 18,951 | 18,344 |
Remaining Commitment | 10,502 | ' |
Energy Power Generation [Member] | Alternative Investments [Member] | ' | ' |
Carrying Value | 17,049 | 18,640 |
Remaining Commitment | 7,076 | ' |
Mezzanine Financing [Member] | Alternative Investments [Member] | ' | ' |
Carrying Value | 12,921 | 12,692 |
Remaining Commitment | 18,796 | ' |
Real Estate Strategy [Member] | Alternative Investments [Member] | ' | ' |
Carrying Value | 12,385 | 11,751 |
Remaining Commitment | 10,205 | ' |
Distressed Debt [Member] | Alternative Investments [Member] | ' | ' |
Carrying Value | 11,911 | 12,728 |
Remaining Commitment | 2,964 | ' |
Venture Capital [Member] | Alternative Investments [Member] | ' | ' |
Carrying Value | 7,018 | 7,477 |
Remaining Commitment | 400 | ' |
Other Securities [Member] | ' | ' |
Carrying Value | 1,884 | 4,412 |
Remaining Commitment | $1,289 | ' |
Investments_Aggregated_Income_
Investments (Aggregated Income Statement Summarized Financial Information for Partnerhips in our Alternative Investment Portfolio) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | |
Alternative Investments [Member] | Alternative Investments [Member] | Alternative Investments [Member] | Alternative Investments [Member] | Investments accounted for under the equity method [Member] | Investments accounted for under the equity method [Member] | Investments accounted for under the equity method [Member] | Investments accounted for under the equity method [Member] | |||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net investment income | ' | ' | ' | ' | ' | ' | ' | ' | $97,800,000 | $80,000,000 | $352,800,000 | $170,100,000 |
Realized (losses) gains | ' | ' | ' | ' | ' | ' | ' | ' | 162,800,000 | 19,600,000 | 762,500,000 | 1,004,900,000 |
Net change in unrealized depreciation | ' | ' | ' | ' | ' | ' | ' | ' | 104,800,000 | -117,100,000 | 85,900,000 | -551,100,000 |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | 365,400,000 | -17,500,000 | 1,201,200,000 | 623,900,000 |
Net investment income earned | $32,457,000 | $30,650,000 | $99,330,000 | $97,284,000 | $2,600,000 | $500,000 | $10,100,000 | $5,500,000 | ' | ' | ' | ' |
Investments_Investments_Pledge
Investments (Investments Pledged as Collateral) (Details) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Schedule of Available-for-sale Securities [Line Items] | ' |
Fixed maturity security pledged at carrying value | $61.90 |
Outstanding borrowing with the Federal Home Loan Bank of Indianapolis | 58 |
Carrying Value Bonds On Deposit With Various State and Regulatory Agencies | 27 |
Short-term Investments [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Securities pledged as collateral | 1.7 |
Fixed Maturity Securities [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Securities pledged as collateral | $21.30 |
Investments_Net_Investment_Inc
Investments (Net Investment Income) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net investment income earned | $32,457 | $30,650 | $99,330 | $97,284 |
Fixed Maturity Securities [Member] | ' | ' | ' | ' |
Net investment income earned | 30,569 | 30,839 | 90,956 | 93,948 |
Equity Securities [Member] | ' | ' | ' | ' |
Net investment income earned | 1,341 | 1,268 | 4,422 | 3,785 |
Short-term Investments [Member] | ' | ' | ' | ' |
Net investment income earned | 21 | 36 | 102 | 103 |
Other Investment Portfolio [Member] | ' | ' | ' | ' |
Net investment income earned | 2,639 | 497 | 10,110 | 5,460 |
Miscellaneous Investment Income [Member] | ' | ' | ' | ' |
Net investment income earned | 0 | 41 | 0 | 105 |
Investment Expenses [Member] | ' | ' | ' | ' |
Net investment income earned | ($2,113) | ($2,031) | ($6,260) | ($6,117) |
Investments_OTTI_by_Asset_Type
Investments (OTTI by Asset Type) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 |
Equity Securities [Member] | Equity Securities [Member] | Equity Securities [Member] | Equity Securities [Member] | Other Investments [Member] | AFS Fixed Maturity Securities [Member] | AFS Fixed Maturity Securities [Member] | AFS Fixed Maturity Securities [Member] | AFS Fixed Maturity Securities [Member] | AFS Fixed Maturity Securities [Member] | AFS Fixed Maturity Securities [Member] | AFS Fixed Maturity Securities [Member] | AFS Fixed Maturity Securities [Member] | AFS Fixed Maturity Securities [Member] | Held To Maturity Fixed Maturity Securities [Member] | Held To Maturity Fixed Maturity Securities [Member] | Securities which will not recover in near term [Member] | Securities with the intent to sell [Member] | |||||
Asset-backed Securities [Member] | Asset-backed Securities [Member] | Commercial Mortgage-backed Securities (CMBS) [Member] | Commercial Mortgage-backed Securities (CMBS) [Member] | Residential Mortgage Backed Securities (RMBS) [Member] | Residential Mortgage Backed Securities (RMBS) [Member] | Asset-backed Securities [Member] | Equity Securities [Member] | Equity Securities [Member] | ||||||||||||||
OTTI Losses Gross | $680 | $921 | $3,107 | $1,218 | $680 | $2,389 | $1,326 | $2,560 | $1,847 | ($1,468) | $1,304 | ($1,342) | $36 | $98 | ($1,504) | ($1,396) | ($22) | ($44) | ($44) | ($44) | ' | ' |
Other-than-temporary impairments on fixed maturity securities recognized in other comprehensive income | 0 | -2,023 | -77 | -2,241 | 0 | 0 | 0 | 0 | 0 | -2,023 | -30 | -2,241 | 0 | 0 | -2,023 | -2,023 | -30 | -218 | -47 | -47 | ' | ' |
OTTI Losses Recognized in Earnings | $680 | $2,944 | $3,184 | $3,459 | $680 | $2,389 | $1,326 | $2,560 | $1,847 | $555 | $1,334 | $899 | $36 | $98 | $519 | $627 | $8 | $174 | $3 | $3 | $700 | $600 |
Investments_Gross_Credit_Loss_
Investments (Gross Credit Loss Impairments of Fixed Maturity Securities for Which a Portion of the OTTI Charge was Recognized in OCI) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Investments [Abstract] | ' | ' | ' | ' |
Balance, beginning of period | $7,488 | $6,775 | $7,477 | $6,602 |
Addition for the amount related to credit loss for which an OTTI was not previously recognized | 0 | 0 | 0 | 0 |
Reductions for securities sold during the period | 0 | 0 | 0 | 0 |
Reductions for securities for which the amount previously recognized in OCI was recognized in earnings because of intention or potential requirement to sell before recovery of amortized cost | 0 | 0 | 0 | 0 |
Reductions for securities for which the entire amount previously recognized in OCI was recognized in earnings due to a decrease in cash flows expected | 0 | 0 | 0 | 0 |
Additional increases to the amount related to credit loss for which an OTTI was previously recognized | 0 | 519 | 11 | 692 |
Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected | 0 | 0 | 0 | 0 |
Balance, end of period | $7,488 | $7,294 | $7,488 | $7,294 |
Investments_Components_Of_Net_
Investments (Components Of Net Realized Gains, Excluding OTTI Charges) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
HTM fixed maturity securities Gains | $32,000 | $40,000 | $35,000 | $195,000 |
HTM fixed maturity securities Losses | -37,000 | -90,000 | -86,000 | -196,000 |
Short-term investments Losses | 0 | 0 | 0 | -2,000 |
Other investments realized gains | 0 | 0 | 0 | 1,000 |
Other Investments Losses | -80,000 | 0 | -940,000 | 0 |
Total other net realized investment gains (losses) | 14,111,000 | 1,856,000 | 25,124,000 | 6,907,000 |
Total OTTI charges recognized in earnings | -680,000 | -2,944,000 | -3,184,000 | -3,459,000 |
Total net realized gains (losses) | 13,431,000 | -1,088,000 | 21,940,000 | 3,448,000 |
Proceeds From Sale Of Available For Sale Securities | 67,200,000 | 55,000,000 | 116,300,000 | 150,900,000 |
Fixed Maturity Securities [Member] | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
AFS securities Gains | 662,000 | 2,168,000 | 2,580,000 | 2,941,000 |
AFS securities losses | -31,000 | -262,000 | -330,000 | -379,000 |
Proceeds Due To Rebalancing Of Equity Securities Portfolio [Member] | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Total net realized gains (losses) | 13,500,000 | ' | 19,100,000 | 4,300,000 |
Realized Gain on Sale of Private Equity Security [Member] | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Total net realized gains (losses) | ' | ' | 4,700,000 | ' |
Equity Securities [Member] | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
AFS securities Gains | 13,801,000 | 0 | 24,272,000 | 4,775,000 |
AFS securities losses | ($236,000) | $0 | ($407,000) | ($428,000) |
Fair_Value_Measurements_Carryi
Fair Value Measurements (Carrying Value and Estimated Fair Value of Financial Instruments) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Held-to-maturity Securities | $421,962 | $554,069 |
Available-for-sale Secuities | 3,633,432 | 3,296,013 |
Equity securities, AFS | 180,506 | 151,382 |
Short-term investments | 172,087 | 214,479 |
Notes payable | 392,407 | 307,387 |
Carrying Amount [Member] | ' | ' |
Held-to-maturity Securities | 421,962 | 554,069 |
Available-for-sale Secuities | 3,633,432 | 3,296,013 |
Equity securities, AFS | 180,506 | 151,382 |
Short-term investments | 172,087 | 214,479 |
Receivable for proceeds related to sale of Selective HR | 0 | 2,705 |
Notes payable | 392,407 | 307,387 |
Carrying Amount [Member] | Two Point Ninety Percent Borrowing From Federal Home Loan Bank [Member] | ' | ' |
Notes payable | 13,000 | 13,000 |
Carrying Amount [Member] | One Point Twenty Five Percent Borrowing From Federal Home Loan Bank [Member] | ' | ' |
Notes payable | 45,000 | 45,000 |
Carrying Amount [Member] | Seven Point Fifty Percent Junior Notes [Member] | ' | ' |
Notes payable | 0 | 100,000 |
Carrying Amount [Member] | Six Point Seventy Percent Senior Notes [Member] | ' | ' |
Notes payable | 99,492 | 99,475 |
Carrying Amount [Member] | Seven Point Twenty Five Percent Senior Notes [Member] | ' | ' |
Notes payable | 49,915 | 49,912 |
Carrying Amount [Member] | Five Point Eight Hundred Seventy Five Senior Notes [Member] | ' | ' |
Notes payable | 185,000 | 0 |
Fair Value [Member] | ' | ' |
Held-to-maturity Securities | 448,529 | 594,661 |
Available-for-sale Secuities | 3,633,432 | 3,296,013 |
Equity securities, AFS | 180,506 | 151,382 |
Short-term investments | 172,087 | 214,479 |
Receivable for proceeds related to sale of Selective HR | 0 | 2,705 |
Notes payable | 364,171 | 321,061 |
Fair Value [Member] | Two Point Ninety Percent Borrowing From Federal Home Loan Bank [Member] | ' | ' |
Notes payable | 13,392 | 13,595 |
Fair Value [Member] | One Point Twenty Five Percent Borrowing From Federal Home Loan Bank [Member] | ' | ' |
Notes payable | 45,171 | 45,590 |
Fair Value [Member] | Seven Point Fifty Percent Junior Notes [Member] | ' | ' |
Notes payable | 0 | 101,480 |
Fair Value [Member] | Six Point Seventy Percent Senior Notes [Member] | ' | ' |
Notes payable | 100,200 | 107,707 |
Fair Value [Member] | Seven Point Twenty Five Percent Senior Notes [Member] | ' | ' |
Notes payable | 51,858 | 52,689 |
Fair Value [Member] | Five Point Eight Hundred Seventy Five Senior Notes [Member] | ' | ' |
Notes payable | $153,550 | $0 |
Fair_Value_Measurements_Quanti
Fair Value Measurements (Quantitative Disclosures of Fair Value Assets) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Available-for-sale Secuities | $3,633,432 | $3,296,013 | ||
Equity securities, AFS | 180,506 | 151,382 | ||
Short-term investments | 172,087 | 214,479 | ||
Fair Value [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Available-for-sale Secuities | 3,633,432 | 3,296,013 | ||
Equity securities, AFS | 180,506 | 151,382 | ||
Short-term investments | 172,087 | 214,479 | ||
Receivable for proceeds related to sale of Selective HR | ' | 2,705 | ||
Total assets | 3,986,025 | 3,664,579 | ||
Fair Value [Member] | US Government and Government Agencies and Authorities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Available-for-sale Secuities | 180,786 | 259,092 | ||
Fair Value [Member] | Foreign Government [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Available-for-sale Secuities | 29,709 | 30,229 | ||
Fair Value [Member] | Obligations of States and Political Subdivisions [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Available-for-sale Secuities | 929,498 | 818,024 | ||
Fair Value [Member] | Corporate Securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Available-for-sale Secuities | 1,663,151 | 1,450,247 | ||
Fair Value [Member] | Asset-backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Available-for-sale Secuities | 150,766 | 128,640 | ||
Fair Value [Member] | Commercial Mortgage-backed Securities (CMBS) [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Available-for-sale Secuities | 151,948 | 137,119 | ||
Fair Value [Member] | Residential Mortgage Backed Securities (RMBS) [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Available-for-sale Secuities | 527,574 | 472,662 | ||
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Available-for-sale Secuities | 50,871 | [1] | 115,861 | [1] |
Equity securities, AFS | 177,606 | [1] | 147,775 | [1] |
Short-term investments | 172,087 | [1] | 214,479 | [1] |
Receivable for proceeds related to sale of Selective HR | ' | 0 | [1] | |
Total assets | 400,564 | [1] | 478,115 | [1] |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | US Government and Government Agencies and Authorities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Available-for-sale Secuities | 50,871 | [1] | 115,861 | [1] |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Foreign Government [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Available-for-sale Secuities | 0 | [1] | 0 | [1] |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Obligations of States and Political Subdivisions [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Available-for-sale Secuities | 0 | [1] | 0 | [1] |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Corporate Securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Available-for-sale Secuities | 0 | [1] | 0 | [1] |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Asset-backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Available-for-sale Secuities | 0 | [1] | 0 | [1] |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Commercial Mortgage-backed Securities (CMBS) [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Available-for-sale Secuities | 0 | [1] | 0 | [1] |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Residential Mortgage Backed Securities (RMBS) [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Available-for-sale Secuities | 0 | [1] | 0 | [1] |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Available-for-sale Secuities | 3,574,990 | [1] | 3,144,187 | [1] |
Equity securities, AFS | 0 | [1] | 0 | [1] |
Short-term investments | 0 | [1] | 0 | [1] |
Receivable for proceeds related to sale of Selective HR | ' | 0 | [1] | |
Total assets | 3,574,990 | [1] | 3,144,187 | [1] |
Significant Other Observable Inputs (Level 2) [Member] | US Government and Government Agencies and Authorities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Available-for-sale Secuities | 129,915 | [1] | 123,442 | [1] |
Significant Other Observable Inputs (Level 2) [Member] | Foreign Government [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Available-for-sale Secuities | 29,709 | [1] | 30,229 | [1] |
Significant Other Observable Inputs (Level 2) [Member] | Obligations of States and Political Subdivisions [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Available-for-sale Secuities | 929,498 | [1] | 818,024 | [1] |
Significant Other Observable Inputs (Level 2) [Member] | Corporate Securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Available-for-sale Secuities | 1,663,151 | [1] | 1,447,301 | [1] |
Significant Other Observable Inputs (Level 2) [Member] | Asset-backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Available-for-sale Secuities | 144,804 | [1] | 122,572 | [1] |
Significant Other Observable Inputs (Level 2) [Member] | Commercial Mortgage-backed Securities (CMBS) [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Available-for-sale Secuities | 150,339 | [1] | 129,957 | [1] |
Significant Other Observable Inputs (Level 2) [Member] | Residential Mortgage Backed Securities (RMBS) [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Available-for-sale Secuities | 527,574 | [1] | 472,662 | [1] |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Available-for-sale Secuities | 7,571 | 35,965 | ||
Equity securities, AFS | 2,900 | 3,607 | ||
Short-term investments | 0 | 0 | ||
Receivable for proceeds related to sale of Selective HR | ' | 2,705 | ||
Total assets | 10,471 | 42,277 | ||
Significant Unobservable Inputs (Level 3) [Member] | US Government and Government Agencies and Authorities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Available-for-sale Secuities | 0 | 19,789 | ||
Significant Unobservable Inputs (Level 3) [Member] | Foreign Government [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Available-for-sale Secuities | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | Obligations of States and Political Subdivisions [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Available-for-sale Secuities | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | Corporate Securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Available-for-sale Secuities | 0 | 2,946 | ||
Significant Unobservable Inputs (Level 3) [Member] | Asset-backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Available-for-sale Secuities | 5,962 | 6,068 | ||
Significant Unobservable Inputs (Level 3) [Member] | Commercial Mortgage-backed Securities (CMBS) [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Available-for-sale Secuities | 1,609 | 7,162 | ||
Significant Unobservable Inputs (Level 3) [Member] | Residential Mortgage Backed Securities (RMBS) [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Available-for-sale Secuities | $0 | $0 | ||
[1] | 1Â There were no transfers of securities between Level 1 and Level 2. |
Fair_Value_Measurements_Change
Fair Value Measurements (Changes in Fair Value of Securities Using Level 3 Inputs) (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Dec. 31, 2012 | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ||
Fair value, Beginning balance | $42,277,000 | $27,910,000 | ||
Total net (losses) gains for the period included in OCI | 3,966,000 | [1] | 1,089,000 | [2] |
Total net (losses) gains for the period included in net income | -1,202,000 | [3],[4] | 0 | [5],[6] |
Purchases | 0 | 12,911,000 | ||
Sales | 0 | 0 | ||
Issuances | 0 | 0 | ||
Settlements | -3,843,000 | -3,742,000 | ||
Transfers into Level 3 | 0 | 12,642,000 | ||
Transfers out of Level 3 | -30,727,000 | -8,533,000 | ||
Fair value, Ending balance | 10,471,000 | 42,277,000 | ||
Receivable amount related to sale of subsidiary | 1,000,000 | ' | ||
Equity Securities [Member] | ' | ' | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ||
Fair value, Beginning balance | 3,607,000 | 0 | ||
Total net (losses) gains for the period included in OCI | 3,935,000 | [1] | 0 | [2] |
Total net (losses) gains for the period included in net income | 0 | [3],[4] | 0 | [5],[6] |
Purchases | 0 | 0 | ||
Sales | 0 | 0 | ||
Issuances | 0 | 0 | ||
Settlements | 0 | 0 | ||
Transfers into Level 3 | 0 | 3,607,000 | ||
Transfers out of Level 3 | -4,642,000 | 0 | ||
Fair value, Ending balance | 2,900,000 | 3,607,000 | ||
AFS Fixed Maturity Securities [Member] | ' | ' | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ||
Fair value, Ending balance | 7,600,000 | 36,000,000 | ||
AFS Fixed Maturity Securities [Member] | U.S. Government and Government Agencies [Member] | ' | ' | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ||
Fair value, Beginning balance | 19,789,000 | 21,741,000 | ||
Total net (losses) gains for the period included in OCI | -537,000 | [1] | -22,000 | [2] |
Total net (losses) gains for the period included in net income | -76,000 | [3],[4] | -193,000 | [5],[6] |
Purchases | 0 | 0 | ||
Sales | 0 | 0 | ||
Issuances | 0 | 0 | ||
Settlements | -1,847,000 | -1,737,000 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | -17,329,000 | 0 | ||
Fair value, Ending balance | 0 | 19,789,000 | ||
AFS Fixed Maturity Securities [Member] | Corporate Securities [Member] | ' | ' | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ||
Fair value, Beginning balance | 2,946,000 | 2,603,000 | ||
Total net (losses) gains for the period included in OCI | -7,000 | [1] | 185,000 | [2] |
Total net (losses) gains for the period included in net income | 0 | [3],[4] | 0 | [5],[6] |
Purchases | 0 | 0 | ||
Sales | 0 | 0 | ||
Issuances | 0 | 0 | ||
Settlements | -168,000 | -630,000 | ||
Transfers into Level 3 | 0 | 788,000 | ||
Transfers out of Level 3 | -2,771,000 | 0 | ||
Fair value, Ending balance | 0 | 2,946,000 | ||
AFS Fixed Maturity Securities [Member] | Asset-backed Securities [Member] | ' | ' | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ||
Fair value, Beginning balance | 6,068,000 | 0 | ||
Total net (losses) gains for the period included in OCI | -106,000 | [1] | 68,000 | [2] |
Total net (losses) gains for the period included in net income | 0 | [3],[4] | 0 | [5],[6] |
Purchases | 0 | 7,300,000 | ||
Sales | 0 | 0 | ||
Issuances | 0 | 0 | ||
Settlements | 0 | 0 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | -1,300,000 | ||
Fair value, Ending balance | 5,962,000 | 6,068,000 | ||
AFS Fixed Maturity Securities [Member] | Commercial Mortgage-backed Securities (CMBS) [Member] | ' | ' | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ||
Fair value, Beginning balance | 7,162,000 | 354,000 | ||
Total net (losses) gains for the period included in OCI | 681,000 | [1] | 858,000 | [2] |
Total net (losses) gains for the period included in net income | 354,000 | [3],[4] | -51,000 | [5],[6] |
Purchases | 0 | 5,611,000 | ||
Sales | 0 | 0 | ||
Issuances | 0 | 0 | ||
Settlements | -1,603,000 | -624,000 | ||
Transfers into Level 3 | 0 | 8,247,000 | ||
Transfers out of Level 3 | -4,985,000 | -7,233,000 | ||
Fair value, Ending balance | 1,609,000 | 7,162,000 | ||
Receivable For Proceeds From Divestiture Of Business [Member] | ' | ' | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ||
Fair value, Beginning balance | 2,705,000 | 3,212,000 | ||
Total net (losses) gains for the period included in OCI | 0 | [1] | 0 | [2] |
Total net (losses) gains for the period included in net income | -1,480,000 | [3],[4] | 244,000 | [5],[6] |
Purchases | 0 | 0 | ||
Sales | 0 | 0 | ||
Issuances | 0 | 0 | ||
Settlements | -225,000 | -751,000 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | -1,000,000 | 0 | ||
Fair value, Ending balance | 0 | 2,705,000 | ||
Fair Value, Inputs, Level 3 [Member] | AFS Fixed Maturity Securities [Member] | ' | ' | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ||
Transfers into Level 3 | ' | 9,000,000 | ||
Transfers out of Level 3 | $25,100,000 | ' | ||
[1] | Amounts are reported in “Unrealized holding gains (losses) arising during period†on the Unaudited Consolidated Statements of Comprehensive Income. | |||
[2] | Amounts are reported in “Unrealized holding gains arising during period†on the Consolidated Statements of Comprehensive Income in our 2012 Annual Report. | |||
[3] | Amounts are reported in “Net realized gains (losses)†for realized gains and “Net investment income earned†for amortization of securities on the Unaudited Consolidated Statements of Income. | |||
[4] | For the receivable related to the sale of Selective HR, amounts in “Loss on disposal of discontinued operations, net of tax†relate to an impairment charge and amounts in “Other income†relate to interest accretion on the Unaudited Consolidated Statements of Income. | |||
[5] | Amounts are reported in “Net realized gains (losses)†for realized gains and losses and “Net investment income earned†for amortization for the CMBS securities on the Consolidated Statements of Income in our 2012 Annual Report. | |||
[6] | Amounts are reported in “Other income†for the receivable related to the sale of Selective HR on the Consolidated Statements of Income in our 2012 Annual Report and are related to interest accretion on the receivable. |
Fair_Value_Measurements_Quanti1
Fair Value Measurements (Quantitative Information of Our Financial Assets and Liabilities That Were Disclosed at Fair Value) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Held-to-maturity Securities | $421,962 | $554,069 |
Notes payable | 392,407 | 307,387 |
Fair Value [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Held-to-maturity Securities | 448,529 | 594,661 |
Notes payable | 364,171 | 321,061 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Held-to-maturity Securities | 0 | 0 |
Notes payable | 153,550 | 209,187 |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Held-to-maturity Securities | 447,472 | 588,430 |
Notes payable | 210,621 | 111,874 |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Held-to-maturity Securities | 1,057 | 6,231 |
Notes payable | 0 | 0 |
Foreign Government [Member] | Fair Value [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Held-to-maturity Securities | 5,565 | 5,871 |
Foreign Government [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Held-to-maturity Securities | 0 | 0 |
Foreign Government [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Held-to-maturity Securities | 5,565 | 5,871 |
Foreign Government [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Held-to-maturity Securities | 0 | 0 |
Obligations of States and Political Subdivisions [Member] | Fair Value [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Held-to-maturity Securities | 395,643 | 526,922 |
Obligations of States and Political Subdivisions [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Held-to-maturity Securities | 0 | 0 |
Obligations of States and Political Subdivisions [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Held-to-maturity Securities | 395,643 | 526,922 |
Obligations of States and Political Subdivisions [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Held-to-maturity Securities | 0 | 0 |
Corporate Securities [Member] | Fair Value [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Held-to-maturity Securities | 31,777 | 42,121 |
Corporate Securities [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Held-to-maturity Securities | 0 | 0 |
Corporate Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Held-to-maturity Securities | 31,777 | 37,289 |
Corporate Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Held-to-maturity Securities | 0 | 4,832 |
Asset-backed Securities [Member] | Fair Value [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Held-to-maturity Securities | 5,911 | 7,097 |
Asset-backed Securities [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Held-to-maturity Securities | 0 | 0 |
Asset-backed Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Held-to-maturity Securities | 4,854 | 5,698 |
Asset-backed Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Held-to-maturity Securities | 1,057 | 1,399 |
Commercial Mortgage-backed Securities (CMBS) [Member] | Fair Value [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Held-to-maturity Securities | 9,633 | 12,650 |
Commercial Mortgage-backed Securities (CMBS) [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Held-to-maturity Securities | 0 | 0 |
Commercial Mortgage-backed Securities (CMBS) [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Held-to-maturity Securities | 9,633 | 12,650 |
Commercial Mortgage-backed Securities (CMBS) [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Held-to-maturity Securities | 0 | 0 |
Two Point Ninety Percent Borrowing From Federal Home Loan Bank [Member] | Fair Value [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Notes payable | 13,392 | 13,595 |
Two Point Ninety Percent Borrowing From Federal Home Loan Bank [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Notes payable | 0 | 0 |
Two Point Ninety Percent Borrowing From Federal Home Loan Bank [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Notes payable | 13,392 | 13,595 |
Two Point Ninety Percent Borrowing From Federal Home Loan Bank [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Notes payable | 0 | 0 |
One Point Twenty Five Percent Borrowing From Federal Home Loan Bank [Member] | Fair Value [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Notes payable | 45,171 | 45,590 |
One Point Twenty Five Percent Borrowing From Federal Home Loan Bank [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Notes payable | 0 | 0 |
One Point Twenty Five Percent Borrowing From Federal Home Loan Bank [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Notes payable | 45,171 | 45,590 |
One Point Twenty Five Percent Borrowing From Federal Home Loan Bank [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Notes payable | 0 | 0 |
Seven Point Fifty Percent Junior Notes [Member] | Fair Value [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Notes payable | ' | 101,480 |
Seven Point Fifty Percent Junior Notes [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Notes payable | ' | 101,480 |
Seven Point Fifty Percent Junior Notes [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Notes payable | ' | 0 |
Seven Point Fifty Percent Junior Notes [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Notes payable | ' | 0 |
Six Point Seventy Percent Senior Notes [Member] | Fair Value [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Notes payable | 100,200 | 107,707 |
Six Point Seventy Percent Senior Notes [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Notes payable | 0 | 107,707 |
Six Point Seventy Percent Senior Notes [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Notes payable | 100,200 | 0 |
Six Point Seventy Percent Senior Notes [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Notes payable | 0 | 0 |
Seven Point Twenty Five Percent Senior Notes [Member] | Fair Value [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Notes payable | 51,858 | 52,689 |
Seven Point Twenty Five Percent Senior Notes [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Notes payable | 0 | 0 |
Seven Point Twenty Five Percent Senior Notes [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Notes payable | 51,858 | 52,689 |
Seven Point Twenty Five Percent Senior Notes [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Notes payable | 0 | 0 |
Five Point Eight Hundred Seventy Five Senior Notes [Member] | Fair Value [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Notes payable | 153,550 | ' |
Five Point Eight Hundred Seventy Five Senior Notes [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Notes payable | 153,550 | ' |
Five Point Eight Hundred Seventy Five Senior Notes [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Notes payable | 0 | ' |
Five Point Eight Hundred Seventy Five Senior Notes [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Notes payable | $0 | ' |
Reinsurance_List_of_Direct_Ass
Reinsurance (List of Direct, Assumed, and Ceded Reinsurance Amounts) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | |
Hurricane Sandy [Member] | Hurricane Sandy [Member] | National Flood Insurance Program [Member] | |||||
Hurricane Sandy [Member] | |||||||
Premiums written: | ' | ' | ' | ' | ' | ' | ' |
Direct | $570,849,000 | $520,943,000 | $1,650,855,000 | $1,504,429,000 | ' | ' | ' |
Assumed | 22,053,000 | 17,976,000 | 34,913,000 | 44,712,000 | ' | ' | ' |
Ceded premiums written | -100,154,000 | -88,401,000 | -280,719,000 | -252,888,000 | ' | ' | ' |
Net | 492,748,000 | 450,518,000 | 1,405,049,000 | 1,296,253,000 | ' | ' | ' |
Premiums earned: | ' | ' | ' | ' | ' | ' | ' |
Direct | 518,307,000 | 474,055,000 | 1,516,454,000 | 1,389,373,000 | ' | ' | ' |
Assumed | 11,066,000 | 18,595,000 | 32,480,000 | 49,683,000 | ' | ' | ' |
Ceded premiums earned | -91,805,000 | -86,425,000 | -264,174,000 | -261,790,000 | ' | ' | ' |
Net | 437,568,000 | 406,225,000 | 1,284,760,000 | 1,177,266,000 | ' | ' | ' |
Loss and loss expense incurred: | ' | ' | ' | ' | ' | ' | ' |
Direct | 350,648,000 | 327,883,000 | 1,055,248,000 | 881,537,000 | 128,000,000 | ' | ' |
Assumed | 7,264,000 | 13,970,000 | 22,758,000 | 35,039,000 | ' | ' | ' |
Ceded loss and loss expense incurred | -74,595,000 | -69,602,000 | -245,246,000 | -103,516,000 | ' | ' | ' |
Net | 283,317,000 | 272,251,000 | 832,760,000 | 813,060,000 | ' | ' | ' |
Number of insurance subsidiaries | ' | ' | 10 | ' | ' | ' | ' |
Estimated flood gross losses | ' | ' | ' | ' | 1,179,000,000 | 1,052,000,000 | ' |
Percentage of unpaid NFIP claims ceded by federal government | ' | ' | 100.00% | ' | ' | ' | ' |
Flood Losses Paid | ' | ' | ' | ' | ' | ' | $1,148,000,000 |
Reinsurance_Ceded_Premiums_and
Reinsurance (Ceded Premiums and Losses Related to Flood Operations) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Ceded premiums written | ($100,154) | ($88,401) | ($280,719) | ($252,888) |
Ceded premiums earned | -91,805 | -86,425 | -264,174 | -261,790 |
Ceded loss and loss expense incurred | -74,595 | -69,602 | -245,246 | -103,516 |
National Flood Insurance Program [Member] | ' | ' | ' | ' |
Ceded premiums written | -64,196 | -58,923 | -183,364 | -171,172 |
Ceded premiums earned | -57,920 | -53,222 | -169,697 | -157,895 |
Ceded loss and loss expense incurred | ($34,879) | ($32,702) | ($162,780) | ($24,534) |
Segment_Information_Narrative_
Segment Information Narrative (Details) | 9 Months Ended |
Sep. 30, 2013 | |
Number of Operating Segments | 3 |
Segment_Information_Revenue_Fr
Segment Information (Revenue From Continuing Operations by Segment) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total net premiums earned | $437,568 | $406,225 | $1,284,760 | $1,177,266 |
Other income | 3,357 | 1,085 | 9,677 | 7,129 |
Net investment income | 32,457 | 30,650 | 99,330 | 97,284 |
Net realized investment gains | 13,431 | -1,088 | 21,940 | 3,448 |
Total investment revenues | 45,888 | 29,562 | 121,270 | 100,732 |
Total all segments | 486,798 | 436,796 | 1,415,620 | 1,284,902 |
Total revenues | 486,813 | 436,872 | 1,415,707 | 1,285,127 |
Commercial Automobile [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total net premiums earned | 79,138 | 72,758 | 230,191 | 214,782 |
Workers Compensation [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total net premiums earned | 66,510 | 65,592 | 197,449 | 198,064 |
General Liability [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total net premiums earned | 100,925 | 93,763 | 298,394 | 276,538 |
Commercial Property [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total net premiums earned | 57,004 | 52,197 | 165,356 | 151,945 |
Business Owners' Policies [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total net premiums earned | 19,629 | 17,749 | 56,794 | 51,872 |
Bonds Segment [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total net premiums earned | 4,705 | 4,713 | 14,244 | 14,076 |
Other Commercial [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total net premiums earned | 3,051 | 2,921 | 9,036 | 9,202 |
Total standard Commercial Lines [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total net premiums earned | 330,962 | 309,693 | 971,464 | 916,479 |
Personal Automobile [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total net premiums earned | 38,513 | 38,295 | 115,432 | 113,648 |
Homeowners [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total net premiums earned | 32,374 | 29,919 | 95,211 | 86,685 |
Other Personal [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total net premiums earned | 3,827 | 3,591 | 10,655 | 10,037 |
Total standard Personal Lines [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total net premiums earned | 74,714 | 71,805 | 221,298 | 210,370 |
Total Standard Insurance Operations [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total net premiums earned | 405,676 | 381,498 | 1,192,762 | 1,126,849 |
Total insurance operations revenues | 409,018 | 382,507 | 1,202,352 | 1,133,753 |
Miscellaneous Income [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Other income | 3,342 | 1,009 | 9,590 | 6,904 |
Excess And Surplus Operations [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total net premiums earned | 31,892 | 24,727 | 91,998 | 50,417 |
Other Income [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Other income | $15 | $76 | $87 | $225 |
Segment_Information_Income_Fro
Segment Information (Income From Continuing Operations, Before Federal Income Tax) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net investment income | $32,457 | $30,650 | $99,330 | $97,284 |
Net realized investment gains | 13,431 | -1,088 | 21,940 | 3,448 |
Total investment revenues | 45,888 | 29,562 | 121,270 | 100,732 |
Total all segments | 56,039 | 30,423 | 148,065 | 73,268 |
Interest expense | -5,570 | -4,725 | -16,971 | -14,148 |
General corporate and other expenses | -5,984 | -5,384 | -21,540 | -16,307 |
Income from continuing operations before federal income tax | 44,485 | 20,314 | 109,554 | 42,813 |
Total standard Commercial Lines [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Underwriting gain (loss), before federal income tax | 8,776 | -651 | 24,621 | -14,666 |
Total standard Personal Lines [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Underwriting gain (loss), before federal income tax | 1,362 | 7,220 | 4,360 | 2,903 |
Total Standard Insurance Operations [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Underwriting gain (loss), before federal income tax | 10,138 | 6,569 | 28,981 | -11,763 |
GAAP combined ratio | 97.50% | 98.30% | 97.60% | 101.00% |
Statutory combined ratio | 96.00% | 96.90% | 96.60% | 100.10% |
Excess And Surplus Operations [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Underwriting gain (loss), before federal income tax | $13 | ($5,708) | ($2,186) | ($15,701) |
GAAP combined ratio | 100.00% | 123.10% | 102.40% | 131.10% |
Statutory combined ratio | 100.50% | 121.60% | 101.90% | 120.30% |
Indebtedness_Narrative_Details
Indebtedness (Narrative) (Details) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Sep. 30, 2013 |
In Millions, unless otherwise specified | Five Point Eight Hundred Seventy Five Senior Notes due 2043 [Member] | Redemption of Seven Point Fifty Percent Junior Notes [Member] | Line of Credit expires September 26,2017 [Member] | |
Aggregate principal of notes | ' | $185 | $100 | ' |
Pre-tax write-off of remaining capitalized debt issuance costs | ' | ' | 3.3 | ' |
Bond Proceeds | ' | 57.1 | ' | ' |
Line of Credit Facility, Current Borrowing Capacity | ' | ' | ' | 30 |
Line of Credit Facility, Maximum Borrowing Capacity | ' | ' | ' | $50 |
Line Of Credit Federal Home Loan Bank Maximum Borrowing Percentage Permitted | 10.00% | ' | ' | ' |
Indebtedness_Covenants_in_the_
Indebtedness (Covenants in the line of credit) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | |
Consolidated net worth,required | $785,000,000 | ' | ' | |
Consolidated net worth, actual | 1,124,209,000 | 1,090,592,000 | 1,124,378,000 | |
Statutory Surplus, required | 750,000,000 | ' | ' | |
Staturtory Surplus, actual | $1,194,797,000 | ' | ' | |
Debt-to-capitalization ratio,required | 35.00% | [1] | ' | ' |
Debt-to-capitalization ratio,actual | 26.00% | [1] | ' | ' |
[1] | Calculated in accordance with the Line of Credit agreement. |
Retirement_Plans_Funded_Status
Retirement Plans (Funded Status of Retirement Income Plan) (Details) (USD $) | Apr. 05, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | Retirement Income Plan [Member] | Retirement Income Plan [Member] | Retirement Income Plan [Member] | Retirement Income Plan [Member] | Retirement Income Plan [Member] | Retirement Income Plan [Member] | Retirement Income Plan [Member] | |
Funded Status of Retirement Income Plan [Member] | Funded Status of Retirement Income Plan [Member] | |||||||
Enhanced company contribtion to the Retirement Savings Plan | 4.00% | ' | ' | ' | ' | ' | ' | ' |
Change In Benefit Obligation [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Benefit Obligation, beginning of year | ' | ' | ' | ' | ' | ' | $302,647 | $254,009 |
Service cost | ' | 1,857 | 2,154 | 6,163 | 6,462 | ' | 2,449 | 8,091 |
Interest cost | ' | 3,053 | 3,230 | 9,407 | 9,690 | ' | 3,303 | 12,981 |
Actuarial (gain) losses | ' | ' | ' | ' | ' | ' | -11,485 | 33,596 |
Benefits paid | ' | ' | ' | ' | ' | ' | -1,598 | -6,030 |
Impact of curtailment | ' | ' | ' | ' | ' | ' | -29,603 | 0 |
Benefit Obligation, end of year | ' | ' | ' | ' | ' | ' | 265,713 | 302,647 |
Change In Fair Value Of Assets Abstract | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value of assets, beginning of year | ' | ' | ' | ' | ' | ' | 207,150 | 182,614 |
Actual return on plan assets, net of expenses | ' | ' | ' | ' | ' | ' | 6,760 | 21,896 |
Contributions by the employer to funded plans | ' | ' | ' | ' | ' | ' | 2,650 | 8,550 |
Contributions by the employer to unfunded plans | ' | ' | ' | ' | ' | ' | 30 | 120 |
Benefits paid fair value | ' | ' | ' | ' | ' | ' | -1,598 | -6,030 |
Fair value of assets, end of period | ' | ' | ' | ' | ' | ' | 214,992 | 207,150 |
Funded Status | ' | ' | ' | ' | ' | ' | -50,721 | -95,497 |
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Liabilities | ' | -50,721 | ' | -50,721 | ' | -95,497 | ' | ' |
Net pension liability, end of period | ' | -50,721 | ' | -50,721 | ' | -95,497 | ' | ' |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Prior serrvice cost | ' | 0 | ' | 0 | ' | 26 | ' | ' |
Net actuarial loss | ' | 57,543 | ' | 57,543 | ' | 103,365 | ' | ' |
Total | ' | 57,543 | ' | 57,543 | ' | 103,391 | ' | ' |
Accumulated benefit obligation | ' | $257,412 | ' | $257,412 | ' | $265,899 | ' | ' |
Weighted-Average Assumptions [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Discount Rate | ' | 4.66% | ' | 4.66% | ' | 4.42% | ' | ' |
Rate of Compensation Increase | ' | 4.00% | ' | 4.00% | ' | 4.00% | ' | ' |
Retirement_Plans_Components_of
Retirement Plans (Components of Net Periodic Benefit Cost and Other Amount Recognized in Other Comprehensive Income) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Curtailment expense | ' | ' | $16,000 | $0 |
Reversal of amortization of net actuarial loss | 790,000 | 1,391,000 | 3,419,000 | 4,172,000 |
Prior service cost | ' | 38,000 | 10,000 | 113,000 |
Retirement Income Plan [Member] | ' | ' | ' | ' |
Service cost | 1,857,000 | 2,154,000 | 6,163,000 | 6,462,000 |
Interest cost | 3,053,000 | 3,230,000 | 9,407,000 | 9,690,000 |
Expected return on plan assets | -3,986,000 | -3,547,000 | -11,819,000 | -10,641,000 |
Amortization of unrecognized prior service cost | 0 | 38,000 | 10,000 | 113,000 |
Amortization of unrecognized net actuarial loss | 772,000 | 1,383,000 | 3,366,000 | 4,149,000 |
Curtailment expense | ' | ' | 16,000 | 0 |
Total net periodic cost | 1,696,000 | 3,258,000 | 7,143,000 | 9,773,000 |
Net actuarial gain | ' | ' | -44,000,000 | 0 |
Reversal of amortization of net actuarial loss | -772,000 | -1,383,000 | -3,366,000 | -4,149,000 |
Prior service cost | 0 | -38,000 | -10,000 | -113,000 |
Curtailment expense | ' | ' | -16,000 | 0 |
Total recognized in OCI | -772,000 | -1,421,000 | -47,392,000 | -4,262,000 |
Total recognized in net periodic benefit cost and OCI | 924,000 | 1,837,000 | -40,249,000 | 5,511,000 |
Estimated net actuarial loss that will be amortized from AOCI into net periodic benefit cost | ' | ' | 4,100,000 | ' |
Retirement Life Plan [Member] | ' | ' | ' | ' |
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 69,000 | 73,000 | 208,000 | 221,000 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of unrecognized prior service cost | 0 | 0 | 0 | 0 |
Amortization of unrecognized net actuarial loss | 18,000 | 8,000 | 53,000 | 23,000 |
Curtailment expense | ' | ' | 0 | 0 |
Total net periodic cost | 87,000 | 81,000 | 261,000 | 244,000 |
Net actuarial gain | ' | ' | 0 | 0 |
Reversal of amortization of net actuarial loss | -18,000 | -8,000 | -53,000 | -23,000 |
Prior service cost | 0 | 0 | 0 | 0 |
Curtailment expense | ' | ' | 0 | 0 |
Total recognized in OCI | -18,000 | -8,000 | -53,000 | -23,000 |
Total recognized in net periodic benefit cost and OCI | $69,000 | $73,000 | $208,000 | $221,000 |
Retirement_Plans_WeightedAvera
Retirement Plans (Weighted-Average Expense Assumptions) (Details) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Retirement Income Plan [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Discount rate | 4.66% | 5.16% |
Expected return on plan assets | 7.40% | 7.75% |
Rate of compensation increase | 4.00% | 4.00% |
Retirement Life Plan [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Discount rate | 4.42% | 5.16% |
Expected return on plan assets | 0.00% | 0.00% |
Rate of compensation increase | 0.00% | 0.00% |
Retirement_Plans_Retirement_Pl
Retirement Plans Retirement Plans (Benefit Payments) (Details) (Retirement Income Plan [Member], USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Retirement Income Plan [Member] | ' |
2013 | $7,586 |
2014 | 8,384 |
2015 | 9,148 |
2016 | 9,942 |
2017 | 10,810 |
2018-2022 | $67,447 |
Comprehensive_Income_Component
Comprehensive Income (Components of Comprehensive Income-Gross and Net of Tax) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net income, Gross | $44,485 | $20,314 | $109,554 | $42,813 |
Net Income, Gross (Including discontinued operations) | ' | ' | 108,019 | ' |
Unrealized holding gains (losses) during the period, Gross | 9,820 | 36,620 | -77,810 | 64,273 |
Non-credit portion of other-than-temporary impairment losses recognized in other comprehensive income, Gross | ' | 2,023 | 77 | 2,241 |
HTM securties, Gross | -472 | -336 | -1,803 | -1,901 |
Realized (gains) losses on AFS securities, Gross | -13,516 | 1,037 | -24,780 | -3,451 |
Net unrealized gains (losses), Gross | -4,167 | 39,353 | -104,302 | 61,434 |
Amount reclassified into Net Income: Net actuarial loss, Gross | 790 | 1,391 | 3,419 | 4,172 |
Amount reclassified into Net Income: Prior service cost, Gross | ' | 38 | 10 | 113 |
Amount reclassified into Net Income: Curtailment expense, Gross | ' | ' | 16 | ' |
Defined pension and other post-retirement benefit plans, gross | 790 | 1,429 | 47,445 | 4,285 |
Comprehensive income, Gross | 41,108 | 61,096 | 51,162 | 108,532 |
Net income, Tax | 11,832 | 2,040 | 27,474 | 6,158 |
Net Income, tax (Including discontinued operations) | ' | ' | 26,936 | ' |
Unrealized holding gains (losses) during the period, Tax | 3,437 | 12,817 | -27,234 | 22,496 |
Non-credit portion of other-than-temporary impairment losses recognized in other comprehensive income, Tax | ' | 708 | 27 | 784 |
HTM securities, Tax | -165 | -117 | -631 | -665 |
Realized (gains) losses on AFS securities, Tax | -4,731 | 363 | -8,673 | -1,208 |
Net unrealized gains (losses), Tax | -1,459 | 13,774 | -36,506 | 21,502 |
Amount reclassified into Net Income: Net actuarial loss, Tax | 277 | 487 | 1,197 | 1,460 |
Amount reclassified into Net Income: Prior service cost, Tax | ' | 14 | 4 | 40 |
Amount reclassified into Net Income: Curtailment expense, tax | ' | ' | 5 | ' |
Defined pension and other post-retirement benefit plans, tax | 277 | 501 | 16,606 | 1,500 |
Comprehensive income, Tax | 10,650 | 16,315 | 7,036 | 29,160 |
Net income | 32,653 | 18,274 | 81,083 | 36,655 |
Unrealized holding gains (losses) during period | 6,383 | 23,803 | -50,576 | 41,777 |
Non-credit portion of other-than-temporary impairments recognized in other comprehensive income | 0 | 1,315 | 50 | 1,457 |
HTM Securities | -307 | -219 | -1,172 | -1,236 |
Realized (gains) losses on available for sale securities | -8,785 | 674 | -16,107 | -2,243 |
Net unrealized (losses) gains on Investment Securities | -2,708 | 25,579 | -67,796 | 39,932 |
Amount reclassified into Net Income: Net actuarial loss | 513 | 904 | 2,222 | 2,712 |
Amount reclassified into Net Income: Prior service cost | 0 | 24 | 6 | 73 |
Amount reclassified into Net Income: Curtailment expense | 0 | 0 | 11 | 0 |
Total defined benefit pension and post-retirement plans | 513 | 928 | 30,839 | 2,785 |
Comprehensive income | 30,458 | 44,781 | 44,126 | 79,372 |
Accumulated Other-than-Temporary Impairment [Member] | ' | ' | ' | ' |
Non-credit OTTI, Gross | 1 | 9 | 14 | 272 |
Non-credit OTTI, Tax | 0 | 3 | 5 | 95 |
Amounts reclassified from AOCI | 1 | 6 | 9 | 177 |
Other Comprehensive Income (Loss), Net of Tax | ' | ' | 59 | ' |
Accumulated other comprehensive income [Member] | ' | ' | ' | ' |
Other comprehensive loss, Gross | -3,377 | 40,782 | -56,857 | 65,719 |
Other comprehensive income (loss), Tax | -1,182 | 14,275 | -19,900 | 23,002 |
Amounts reclassified from AOCI | ' | ' | -15,031 | ' |
Other Comprehensive Income (Loss), Net of Tax | -2,195 | 26,507 | -36,957 | 42,717 |
Accumulated Defined Benefit Plans Adjustment [Member] | ' | ' | ' | ' |
Net actuarial gain (loss), Gross | ' | ' | 44,000 | ' |
Net actuarial gains (losses),Tax | ' | ' | 15,400 | ' |
Net actuarial gain | 0 | 0 | 28,600 | 0 |
Total defined benefit pension and post-retirement plans | ' | ' | $2,239 | ' |
Comprehensive_Income_Component1
Comprehensive Income (Components of Accumulated Other Comprehensive Income) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Beginning Balance,December 31, 2012 | ' | ' | $54,040 | ' |
Amounts reclassified from AOCI, HTM Related | -307 | -219 | -1,172 | -1,236 |
Amounts reclassified from AOCI, All Other | -8,785 | 674 | -16,107 | -2,243 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | 513 | 928 | 30,839 | 2,785 |
Ending Balance, September 30, 2013 | 17,083 | ' | 17,083 | ' |
Available-for-sale Securities [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Beginning Balance,December 31, 2012 | ' | ' | 121,391 | ' |
OCI before reclassifications | ' | ' | -50,473 | ' |
Other comprehensive (loss) income | ' | ' | -66,580 | ' |
Ending Balance, September 30, 2013 | 54,811 | ' | 54,811 | ' |
Investments [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Beginning Balance,December 31, 2012 | ' | ' | 122,327 | ' |
OCI before reclassifications | ' | ' | -50,526 | ' |
Amounts reclassified from AOCI | ' | ' | -17,270 | ' |
Other comprehensive (loss) income | ' | ' | -67,796 | ' |
Ending Balance, September 30, 2013 | 54,531 | ' | 54,531 | ' |
Accumulated Other-than-Temporary Impairment [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Beginning Balance,December 31, 2012 | ' | ' | -1,658 | ' |
OCI before reclassifications | ' | ' | 50 | ' |
Amounts reclassified from AOCI | 1 | 6 | 9 | 177 |
Other comprehensive (loss) income | ' | ' | 59 | ' |
Ending Balance, September 30, 2013 | -1,599 | ' | -1,599 | ' |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Held To Maturity Fixed Maturity Securities [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Beginning Balance,December 31, 2012 | ' | ' | 2,594 | ' |
OCI before reclassifications | ' | ' | -103 | ' |
Other comprehensive (loss) income | ' | ' | -1,275 | ' |
Ending Balance, September 30, 2013 | 1,319 | ' | 1,319 | ' |
Accumulated Defined Benefit Plans Adjustment [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Beginning Balance,December 31, 2012 | ' | ' | -68,287 | ' |
OCI before reclassifications, Defined Benefit Pension and Post Retirement Plans | 0 | 0 | 28,600 | 0 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | ' | ' | 2,239 | ' |
Ending Balance, September 30, 2013 | -37,448 | ' | -37,448 | ' |
Accumulated other comprehensive income [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Beginning Balance,December 31, 2012 | ' | ' | 54,040 | ' |
OCI before reclassifications | ' | ' | -21,926 | ' |
Amounts reclassified from AOCI | ' | ' | -15,031 | ' |
Other comprehensive (loss) income | -2,195 | 26,507 | -36,957 | 42,717 |
Ending Balance, September 30, 2013 | $17,083 | ' | $17,083 | ' |
Comprehensive_Income_Reclassif
Comprehensive Income (Reclassification out of AOCI) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Total HTM Related, Tax | ($165) | ($117) | ($631) | ($665) |
Amounts reclassified from AOCI, HTM Related | -307 | -219 | -1,172 | -1,236 |
Total unrealized gains and losses on AFS, Gross | -13,516 | 1,037 | -24,780 | -3,451 |
Total unrealized gains and losses on AFS, Tax | -4,731 | 363 | -8,673 | -1,208 |
Realized (gains) losses on available for sale securities | -8,785 | 674 | -16,107 | -2,243 |
Amount reclassified into Net Income: Net actuarial loss, Gross | 790 | 1,391 | 3,419 | 4,172 |
Prior service cost | ' | 38 | 10 | 113 |
Curtailment expense | ' | ' | 16 | ' |
Total defined benefit pension and post-retirement life, Gross | 790 | 1,429 | 47,445 | 4,285 |
Total defined benefit pension and post-retirement life,Tax | 277 | 501 | 16,606 | 1,500 |
Total defined benefit pension and post-retirement plans | 513 | 928 | 30,839 | 2,785 |
Accumulated Other-than-Temporary Impairment [Member] | ' | ' | ' | ' |
Amounts reclassified from AOCI | 1 | 6 | 9 | 177 |
Net Realized Investment Gains [Member] | ' | ' | ' | ' |
Unrealized gains and losses on HTM disposals | -19 | ' | -170 | ' |
Total unrealized gains and losses on AFS, Gross | -13,516 | ' | -24,780 | ' |
Net Investment Income Earned [Member] | ' | ' | ' | ' |
HTM Related, Gross | -453 | ' | -1,633 | ' |
Net Investment Income Earned [Member] | Accumulated Other-than-Temporary Impairment [Member] | ' | ' | ' | ' |
Amortization of non-credit OTTI losses on HTM securities | 1 | ' | 14 | ' |
Income From Continuing Operations Before Federal Income Tax [Member] | ' | ' | ' | ' |
HTM Related, Gross | -472 | ' | -1,803 | ' |
Total unrealized gains and losses on AFS, Gross | -13,516 | ' | -24,780 | ' |
Amount reclassified into Net Income: Net actuarial loss, Gross | 790 | ' | 3,419 | ' |
Prior service cost | 0 | ' | 10 | ' |
Curtailment expense | 0 | ' | 16 | ' |
Total defined benefit pension and post-retirement life, Gross | 790 | ' | 3,445 | ' |
Income From Continuing Operations Before Federal Income Tax [Member] | Accumulated Other-than-Temporary Impairment [Member] | ' | ' | ' | ' |
Amortization of non-credit OTTI losses on HTM securities | 1 | ' | 14 | ' |
Total Federal Income Tax Expense [Member] | ' | ' | ' | ' |
Total HTM Related, Tax | 165 | ' | 631 | ' |
Total unrealized gains and losses on AFS, Tax | 4,731 | ' | 8,673 | ' |
Total defined benefit pension and post-retirement life,Tax | -277 | ' | -1,206 | ' |
Total Federal Income Tax Expense [Member] | Accumulated Other-than-Temporary Impairment [Member] | ' | ' | ' | ' |
Amortization of non-credit OTTI losses on HTM securities, tax | 0 | ' | -5 | ' |
Net Income Financial Statement [Member] | ' | ' | ' | ' |
Amounts reclassified from AOCI | -8,578 | ' | -15,031 | ' |
Amounts reclassified from AOCI, HTM Related | -307 | ' | -1,172 | ' |
Realized (gains) losses on available for sale securities | -8,785 | ' | -16,107 | ' |
Net Income Financial Statement [Member] | Accumulated Other-than-Temporary Impairment [Member] | ' | ' | ' | ' |
Amounts reclassified from AOCI | 1 | ' | 9 | ' |
Net Income Financial Statement [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | ' | ' | ' | ' |
Total defined benefit pension and post-retirement plans | 513 | ' | 2,239 | ' |
Loss and loss expense incurred [Member] | ' | ' | ' | ' |
Amount reclassified into Net Income: Net actuarial loss, Gross | 159 | ' | 717 | ' |
Prior service cost | 0 | ' | 7 | ' |
Policy acquisition costs [Member] | ' | ' | ' | ' |
Amount reclassified into Net Income: Net actuarial loss, Gross | 631 | ' | 2,702 | ' |
Prior service cost | 0 | ' | 3 | ' |
Curtailment expense | $0 | ' | $16 | ' |
Discontinued_Operations_Narrat
Discontinued Operations (Narrative) (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2009 |
Percentage Of Interest Sold In Subsidiary | ' | ' | 100.00% |
Receivable amount related to sale of subsidiary | ' | $1 | ' |
Discontinued gain (loss) from disposal of discontinued operation, before federal income tax | ($1.50) | ' | ' |
Commitments_and_Contingencies_
Commitments and Contingencies (Narrative) (Details) (Other Investments [Member], USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Other Investments [Member] | ' |
Remaining Commitment | $58,935 |