All of our property and casualty insurance subsidiaries, with the exception of Texas General Indemnity Company, and our affiliate are members of an intercompany reinsurance pooling arrangement. Pooling arrangements permit the participating companies to rely on the capacity of the entire pool's capital and surplus, rather than being limited to policy exposures of a size commensurate with each participant's own surplus level.
In 2014, 2013 and 2012, we did not exceed our catastrophe reinsurance retention level of $20.0 million.
Our invested assets at December 31, 2014 totaled $3.2 billion, compared to $3.1 billion at December 31, 2013, an increase of $120.8 million. At December 31, 2014, fixed maturity securities and equity securities comprised 90.2 percent and 7.9 percent of our investment portfolio, respectively. Because the primary purpose of the investment portfolio is to fund future claims payments, we utilize a conservative investment philosophy, investing in a diversified portfolio of high-quality, intermediate-term taxable corporate bonds, taxable U.S. government and government agency bonds and tax-exempt U.S. municipal bonds. Our overall investment strategy is to stay fully invested (i.e., minimize cash balances). If additional cash is needed we have an ability to borrow funds available under our revolving credit facility.
As of December 31, 2014, net unrealized investment gains, after tax, totaled $149.6 million, compared to $116.6 million and $144.1 million as of December 31, 2013 and 2012, respectively. The increase in unrealized gains in 2014 resulted from an increase in the fair value of both the fixed maturity portfolio and the equity portfolio. The decrease in unrealized gains in 2013 resulted from a decrease in the fair value of the fixed maturity portfolio partially offset by an increase in the equity portfolio.
Dividends paid to shareholders totaled $19.7 million, $17.5 million and $15.3 million in 2014, 2013 and 2012, respectively. Our practice has been to pay quarterly cash dividends, which we have paid every quarter since March 1968.
If no event of default has occurred or is continuing to occur, and certain other conditions are satisfied, during the term of this credit facility, we have the right to increase the total facility from $100.0 million up to $125.0 million. The credit facility is available for general corporate purposes, including working capital, acquisitions and liquidity purposes. Principal of the credit facility is due in full at maturity, on December 22, 2015. The interest rate is based
The following table shows our contractual obligations and commitments, including our estimated payments due by period, at December 31, 2014:
The DAC asset recorded in connection with our non-traditional business is also adjusted with respect to estimated expected gross profits as a result of changes in the net unrealized gains or losses on available-for-sale fixed maturity securities allocated to support the block of deferred annuities and universal life policies. That is, because we carry available-for-sale fixed maturity securities at fair value, we make an adjustment to the DAC asset equal to the change in amortization that would have been recorded if we had sold such securities at their stated fair value and reinvested the proceeds at current yields. We include this adjustment, which is called "shadow" DAC, net of tax, as a component of accumulated other comprehensive income. At December 31, 2014 and 2013, the "shadow" DAC adjustment decreased our DAC asset by $13.4 million and increased our DAC asset by $3.4 million, respectively.
United Fire Group, Inc. ("United Fire", the "Registrant", the "Company","we," "us," or "our") and its consolidated subsidiaries and affiliates are engaged in the business of writing property and casualty insurance and life insurance and selling annuities through a network of independent agencies. We report our operations in two business segments: property and casualty insurance and life insurance. Our insurance company subsidiaries are licensed as a property and casualty insurer in 43 states, plus the District of Columbia, and as a life insurer in 37 states.
United Real Estate Holdings, LLC, formed in 2013, is a wholly owned subsidiary of United Fire & Casualty Company and is organized as an Iowa Limited Liability Corporation, an unincorporated association formed for the purpose of holding United Fire & Casualty Company's ownership in commercial real estate.
There were no sales of held-to-maturity securities in 2014, 2013 and 2012.
Pursuant to an agreement with one of our limited liability partnership investments, we are contractually committed through December 31, 2023 to make capital contributions upon request of the partnership. Our remaining potential contractual obligation was $11,830 at December 31, 2014.
The following tables present the categorization for our financial instruments measured at fair value on a recurring basis in our Consolidated Balance Sheets at December 31, 2014 and 2013:
For the year ended December 31, 2014, the change in our available-for-sale securities categorized as Level 1 and Level 2 is the result of investment purchases that were made using funds held in our money market accounts, disposals and the change in unrealized gains on both fixed maturities and equity securities. During the twelve month period ended December 31, 2014, there was one nonredeemable preferred stock security with a fair value of $1,228 transferred between Level 1 and Level 2 because the security was delisted and is no longer actively traded on a major exchange. During the twelve month period ended December 31, 2013, there were no transfers of securities between Level 1 and Level 2.
the benefit of the NOLs can be realized, and, if so, the decrease in the valuation allowance is recorded as a reduction to current federal income tax expense. If NOLs expire during the year, the decrease in the valuation allowance is offset with a corresponding decrease to the deferred income tax asset. The valuation allowance was reduced by $548 during 2014 due to the realization of $1,565 in NOLs. No portion of the NOLs expired in 2014 or will expire in 2015. At December 31, 2014, we had no alternative minimum tax ("AMT") credit carryforwards.
The following is a summary of the pension plan's actual and target asset allocations at December 31, 2014 and 2013 by asset category:
We anticipate amortization of the net actuarial losses for our pension plan in 2015 to be $4,546. We anticipate amortization of the net actuarial losses for our postretirement benefit plan in 2015 to be $2,920.
The activity in the Stock Plan is displayed in the following table:
As of December 31, 2014, we had $5,371 in stock-based compensation expense that has yet to be recognized through our results of operations. We expect this compensation to be recognized in subsequent years according to the following table, except with respect to awards that are accelerated by the Board of Directors, in which case we will recognize any remaining compensation expense in the period in which the awards are accelerated.
The components of basic and diluted earnings per share were as follows: