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67
For additional disclosures regarding methods and assumptions used in estimating fair values, see Note 4. Fair Value
Measurement.
3. Investments
The following table presents (losses) gains due to changes in fair value of investments that are measured at fair value
pursuant to application of the fair value option:
Year Ended December 31,
2015 2014 2013
(Amounts in thousands)
Fixed maturity securities $(39,304) $ 77,208 $ (100,703)
Equity securities (22,988)(32,922)56,822
Short-term investments 561 (527)(156)
Total $ (61,731) $ 43,759 $ (44,037)
The following table presents gross gains (losses) realized on the sales of investments:
Year Ended December 31,
2015 2014 2013
(Amounts in thousands)
Gross
Realized
Gains
Gross
Realized
Losses Net
Gross
Realized
Gains
Gross
Realized
Losses Net
Gross
Realized
Gains
Gross
Realized
Losses Net
Fixed maturity securities $ 631 $ (495) $ 136 $ 7,015 $ (9,734) $ (2,719) $ 9,320 $ (3,842) $ 5,478
Equity securities 41,305 (58,764) (17,459) 59,342 (17,705) 41,637 82,385 (58,297) 24,088
Short-term investments — (1,396) (1,396) — (1,943) (1,943) — (903) (903)
Contractual Maturity
At December 31, 2015, fixed maturity holdings rated below investment grade and non-rated comprised 1.3% of total
investments at fair value. Additionally, the Company owns securities that are credit enhanced by financial guarantors that are
subject to uncertainty related to market perception of the guarantors’ ability to perform. Determining the estimated fair value of
municipal bonds could become more difficult should markets for these securities become illiquid.
The following table presents the estimated fair values of the Company's fixed maturity securities at December 31, 2015 by
contractual maturity. Expected maturities will differ from contractual maturities because borrowers may have the right to call or
prepay obligations with or without call or prepayment penalties.
Estimated Fair Value
(Amounts in thousands)
Fixed maturity securities:
Due in one year or less $ 108,775
Due after one year through five years 394,240
Due after five years through ten years 609,243
Due after ten years 1,767,745
Total $ 2,880,003