Mercury Insurance 2011 Annual Report Download - page 101

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MERCURY GENERAL CORPORATION AND SUBSIDIARIES
NOTES STATEMENTS TO CONSOLIDATED FINANCIAL—(Continued)
December 31, 2010
Level 1 Level 2 Level 3 Total
(Amounts in thousands)
Assets
Fixed maturity securities:
U.S. government bonds and agencies ................. $ 8,805 $ 0 $ 0 $ 8,805
Municipal securities .............................. 0 2,433,589 1,624 2,435,213
Mortgage-backed securities ........................ 0 57,367 0 57,367
Corporate securities ............................... 0 95,203 0 95,203
Collateralized debt obligations ...................... 0 0 55,692 55,692
Equity securities:
Common stock:
Public utilities ............................... 27,214 0 0 27,214
Banks, trusts and insurance companies ............ 20,521 0 0 20,521
Industrial and other ........................... 302,103 0 0 302,103
Non-redeemable preferred stock ..................... 0 9,768 0 9,768
Short-term bonds ..................................... 0 17,043 0 17,043
Money market instruments ............................. 126,328 0 0 126,328
Interest rate swap agreements ........................... 0 4,240 0 4,240
Total assets at fair value ................... $484,971 $2,617,210 $57,316 $3,159,497
Liabilities
Equity contracts ...................................... $ 2,776 $ 0 $ 0 $ 2,776
Interest rate swap agreements ........................... 0 3,042 0 3,042
Total liabilities at fair value ................ $ 2,776 $ 3,042 $ 0 $ 5,818
The following table presents a summary of changes in fair value of Level 3 financial assets and financial
liabilities held at fair value at December 31:
2011 2010
Municipal
Securities
Collateralized
Debt
Obligations
Partnership
Interest in a
Private Credit
Fund
Municipal
Securities
Collateralized
Debt
Obligations
(Amounts in thousands)
Beginning Balance .......................... $1,624 $55,692 $ 0 $ 3,322 $47,473
Realized gains (losses) included in earnings . . . 39 (9,300) 8 (108) 13,388
Purchase .............................. 0 0 10,000 0 0
Sales ................................. (1,663) 0 0 (1,590) 0
Issuances .............................. 0 0 0 0 0
Settlements ............................ 0 1,111 0 0 (5,169)
Ending Balance ............................. $ 0 $47,503 $10,008 $ 1,624 $55,692
The amount of total (losses) gains for the period
included in earnings attributable to assets still
held at December 31 ....................... $ 0 $(8,189) $ 8 $ (83) $12,810
81