XML 42 R29.htm IDEA: XBRL DOCUMENT v3.20.2
Investments (Tables)
 6 Months Ended
Jun. 30, 2020
Investments [Abstract]  
Summary Of Unrealized Appreciation (Depreciation) Of Available For Sale, Fixed Maturity And Equity Security Investments

 

 

At June 30, 2020

 

 

Amortized

 

Allowance for

 

Unrealized

 

Unrealized

 

Market

(Dollars in thousands)

Cost

 

Credit Losses

 

Appreciation

 

Depreciation

 

Value

Fixed maturity securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities and obligations of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government agencies and corporations

$

1,355,970

 

$

-

 

$

79,243

 

$

(282)

 

$

1,434,931

 

Obligations of U.S. states and political subdivisions

 

508,478

 

 

-

 

 

27,597

 

 

(3,794)

 

 

532,281

 

Corporate securities

 

6,349,631

 

 

(22,253)

 

 

356,702

 

 

(66,292)

 

 

6,617,788

 

Asset-backed securities

 

1,076,648

 

 

-

 

 

16,728

 

 

(23,818)

 

 

1,069,558

 

Mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

850,616

 

 

-

 

 

71,017

 

 

(1,837)

 

 

919,796

 

Agency residential

 

2,016,481

 

 

-

 

 

74,813

 

 

(2,043)

 

 

2,089,251

 

Non-agency residential

 

3,153

 

 

-

 

 

-

 

 

(42)

 

 

3,111

 

Foreign government securities

 

1,461,380

 

 

(92)

 

 

73,849

 

 

(33,937)

 

 

1,501,200

 

Foreign corporate securities

 

2,769,881

 

 

(3,492)

 

 

158,296

 

 

(37,342)

 

 

2,887,343

Total fixed maturity securities

$

16,392,238

 

 

(25,837)

 

$

858,245

 

$

(169,387)

 

$

17,055,259

 

 

At December 31, 2019

 

 

Amortized

 

Unrealized

 

Unrealized

 

Market

 

OTTI in AOCI

(Dollars in thousands)

Cost

 

Appreciation

 

Depreciation

 

Value

 

(a)

Fixed maturity securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities and obligations of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government agencies and corporations

$

1,489,660

 

$

28,357

 

$

(2,214)

 

$

1,515,803

 

$

-

 

Obligations of U.S. states and political subdivisions

 

507,353

 

 

29,651

 

 

(89)

 

 

536,915

 

 

-

 

Corporate securities

 

6,227,661

 

 

185,052

 

 

(37,767)

 

 

6,374,946

 

 

469

 

Asset-backed securities

 

892,373

 

 

6,818

 

 

(1,858)

 

 

897,333

 

 

-

 

Mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

814,570

 

 

31,236

 

 

(1,249)

 

 

844,557

 

 

-

 

Agency residential

 

2,173,099

 

 

36,361

 

 

(10,879)

 

 

2,198,581

 

 

-

 

Non-agency residential

 

5,723

 

 

-

 

 

(20)

 

 

5,703

 

 

-

 

Foreign government securities

 

1,492,315

 

 

47,148

 

 

(33,513)

 

 

1,505,950

 

 

71

 

Foreign corporate securities

 

2,870,737

 

 

107,999

 

 

(33,580)

 

 

2,945,156

 

 

447

Total fixed maturity securities

$

16,473,491

 

$

472,622

 

$

(121,169)

 

$

16,824,944

 

$

987

(a) Represents the amount of OTTI recognized in AOCI. Amount includes unrealized gains and losses on impaired securities relating to changes in the value of such securities subsequent to the impairment measurement date.
Summary Of Amortized Cost And Market Value Of Fixed Maturity Securities, By Contractual Maturity

 

At June 30, 2020

 

At December 31, 2019

 

Amortized

 

Market

 

Amortized

 

Market

(Dollars in thousands)

Cost

 

Value

 

Cost

 

Value

Fixed maturity securities – available for sale:

 

 

 

 

 

 

 

 

 

 

 

Due in one year or less

$

1,401,446

 

$

1,413,299

 

$

1,456,960

 

$

1,457,919

Due after one year through five years

 

6,415,691

 

 

6,636,170

 

 

6,757,107

 

 

6,869,359

Due after five years through ten years

 

3,712,330

 

 

3,987,207

 

 

3,471,370

 

 

3,609,816

Due after ten years

 

915,873

 

 

936,867

 

 

902,289

 

 

941,676

Asset-backed securities

 

1,076,648

 

 

1,069,558

 

 

892,373

 

 

897,333

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

850,616

 

 

919,796

 

 

814,570

 

 

844,557

Agency residential

 

2,016,481

 

 

2,089,251

 

 

2,173,099

 

 

2,198,581

Non-agency residential

 

3,153

 

 

3,111

 

 

5,723

 

 

5,703

Total fixed maturity securities

$

16,392,238

 

$

17,055,259

 

$

16,473,491

 

$

16,824,944
Summary Of Changes In Net Unrealized Appreciation (Depreciation) For The Company's Investments

 

Three Months Ended

 

Six Months Ended

 

June 30,

 

June 30,

(Dollars in thousands)

2020

 

2019

 

2020

 

2019

Increase (decrease) during the period between the market value and cost

 

 

 

 

 

 

 

 

 

 

 

of investments carried at market value, and deferred taxes thereon:

 

 

 

 

 

 

 

 

 

 

 

Fixed maturity securities

$

614,077

 

$

227,266

 

$

337,053

 

$

481,160

Fixed maturity securities, other-than-temporary impairment

 

-

 

 

(1,499)

 

 

-

 

 

(1,743)

Change in unrealized appreciation (depreciation), pre-tax

 

614,077

 

 

225,767

 

 

337,053

 

 

479,417

Deferred tax benefit (expense)

 

(69,581)

 

 

(29,954)

 

 

(40,557)

 

 

(52,431)

Deferred tax benefit (expense), other-than-temporary impairment

 

-

 

 

77

 

 

-

 

 

147

Change in unrealized appreciation (depreciation),

 

 

 

 

 

 

 

 

 

 

 

net of deferred taxes, included in shareholders’ equity

$

544,496

 

$

195,890

 

$

296,496

 

$

427,133
Summary Of Aggregate Market Value And Gross Unrealized Depreciation Of Fixed Maturity And Equity Securities, By Security Type

 

 

Duration of Unrealized Loss at June 30, 2020 By Security Type

 

Less than 12 months

 

Greater than 12 months

 

Total

 

 

 

 

Gross

 

 

 

 

Gross

 

 

 

 

Gross

 

 

 

 

Unrealized

 

 

 

 

Unrealized

 

 

 

 

Unrealized

(Dollars in thousands)

Market Value

 

Depreciation

 

Market Value

 

Depreciation

 

Market Value

 

Depreciation

Fixed maturity securities - available for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities and obligations of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government agencies and corporations

$

28,192

 

$

(282)

 

$

-

 

$

-

 

$

28,192

 

$

(282)

Obligations of U.S. states and political subdivisions

 

71,054

 

 

(3,569)

 

 

3,331

 

 

(225)

 

 

74,385

 

 

(3,794)

Corporate securities

 

712,066

 

 

(28,954)

 

 

170,908

 

 

(37,338)

 

 

882,974

 

 

(66,292)

Asset-backed securities

 

457,430

 

 

(16,504)

 

 

138,272

 

 

(7,314)

 

 

595,702

 

 

(23,818)

Mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

47,046

 

 

(1,196)

 

 

6,017

 

 

(641)

 

 

53,063

 

 

(1,837)

Agency residential

 

137,030

 

 

(1,067)

 

 

90,425

 

 

(976)

 

 

227,455

 

 

(2,043)

Non-agency residential

 

213

 

 

(3)

 

 

2,898

 

 

(39)

 

 

3,111

 

 

(42)

Foreign government securities

 

112,183

 

 

(6,363)

 

 

201,603

 

 

(27,574)

 

 

313,786

 

 

(33,937)

Foreign corporate securities

 

401,754

 

 

(10,593)

 

 

217,672

 

 

(26,749)

 

 

619,426

 

 

(37,342)

Total fixed maturity securities

$

1,966,968

 

$

(68,531)

 

$

831,126

 

$

(100,856)

 

$

2,798,094

 

$

(169,387)

 

 

Duration of Unrealized Loss at December 31, 2019 By Security Type

 

Less than 12 months

 

Greater than 12 months

 

Total

 

 

 

 

Gross

 

 

 

 

Gross

 

 

 

 

Gross

 

 

 

 

Unrealized

 

 

 

 

Unrealized

 

 

 

 

Unrealized

(Dollars in thousands)

Market Value

 

Depreciation

 

Market Value

 

Depreciation

 

Market Value

 

Depreciation

Fixed maturity securities - available for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities and obligations of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government agencies and corporations

$

85,527

 

$

(1,005)

 

$

249,371

 

$

(1,209)

 

$

334,898

 

$

(2,214)

Obligations of U.S. states and political subdivisions

 

4,600

 

 

(38)

 

 

5,522

 

 

(51)

 

 

10,122

 

 

(89)

Corporate securities

 

547,120

 

 

(9,877)

 

 

395,369

 

 

(27,890)

 

 

942,489

 

 

(37,767)

Asset-backed securities

 

176,222

 

 

(1,027)

 

 

94,190

 

 

(831)

 

 

270,412

 

 

(1,858)

Mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

83,127

 

 

(689)

 

 

23,063

 

 

(560)

 

 

106,190

 

 

(1,249)

Agency residential

 

344,267

 

 

(1,834)

 

 

488,680

 

 

(9,045)

 

 

832,947

 

 

(10,879)

Non-agency residential

 

332

 

 

-

 

 

3,976

 

 

(20)

 

 

4,308

 

 

(20)

Foreign government securities

 

210,766

 

 

(4,770)

 

 

283,648

 

 

(28,743)

 

 

494,414

 

 

(33,513)

Foreign corporate securities

 

278,403

 

 

(7,553)

 

 

365,808

 

 

(26,027)

 

 

644,211

 

 

(33,580)

Total fixed maturity securities

$

1,730,364

 

$

(26,793)

 

$

1,909,627

 

$

(94,376)

 

$

3,639,991

 

$

(121,169)
Summary Of Aggregate Market Value And Gross Unrealized Depreciation Of Fixed Maturity And Equity Securities, By Contractual Maturity

 

 

Duration of Unrealized Loss at June 30, 2020 By Maturity

 

Less than 12 months

 

Greater than 12 months

 

Total

 

 

 

 

Gross

 

 

 

 

Gross

 

 

 

 

Gross

 

 

 

 

Unrealized

 

 

 

 

Unrealized

 

 

 

 

Unrealized

(Dollars in thousands)

Market Value

 

Depreciation

 

Market Value

 

Depreciation

 

Market Value

 

Depreciation

Fixed maturity securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Due in one year or less

$

74,911

 

$

(897)

 

$

154,772

 

$

(24,782)

 

$

229,683

 

$

(25,679)

Due in one year through five years

 

738,690

 

 

(23,176)

 

 

325,533

 

 

(32,475)

 

 

1,064,223

 

 

(55,651)

Due in five years through ten years

 

368,721

 

 

(16,989)

 

 

51,998

 

 

(8,556)

 

 

420,719

 

 

(25,545)

Due after ten years

 

142,927

 

 

(8,699)

 

 

61,211

 

 

(26,073)

 

 

204,138

 

 

(34,772)

Asset-backed securities

 

457,430

 

 

(16,504)

 

 

138,272

 

 

(7,314)

 

 

595,702

 

 

(23,818)

Mortgage-backed securities

 

184,289

 

 

(2,266)

 

 

99,340

 

 

(1,656)

 

 

283,629

 

 

(3,922)

Total fixed maturity securities

$

1,966,968

 

$

(68,531)

 

$

831,126

 

$

(100,856)

 

$

2,798,094

 

$

(169,387)

 

 

Duration of Unrealized Loss at December 31, 2019 By Maturity

 

Less than 12 months

 

Greater than 12 months

 

Total

 

 

 

 

Gross

 

 

 

 

Gross

 

 

 

 

Gross

 

 

 

 

Unrealized

 

 

 

 

Unrealized

 

 

 

 

Unrealized

(Dollars in thousands)

Market Value

 

Depreciation

 

Market Value

 

Depreciation

 

Market Value

 

Depreciation

Fixed maturity securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Due in one year or less

$

67,879

 

$

(1,237)

 

$

416,583

 

$

(23,004)

 

$

484,462

 

$

(24,241)

Due in one year through five years

 

464,753

 

 

(7,960)

 

 

689,195

 

 

(38,138)

 

 

1,153,948

 

 

(46,098)

Due in five years through ten years

 

495,741

 

 

(12,388)

 

 

103,612

 

 

(11,100)

 

 

599,353

 

 

(23,488)

Due after ten years

 

98,043

 

 

(1,658)

 

 

90,328

 

 

(11,678)

 

 

188,371

 

 

(13,336)

Asset-backed securities

 

176,222

 

 

(1,027)

 

 

94,190

 

 

(831)

 

 

270,412

 

 

(1,858)

Mortgage-backed securities

 

427,726

 

 

(2,523)

 

 

515,719

 

 

(9,625)

 

 

943,445

 

 

(12,148)

Total fixed maturity securities

$

1,730,364

 

$

(26,793)

 

$

1,909,627

 

$

(94,376)

 

$

3,639,991

 

$

(121,169)
Summary Of Components Of Net Investment Income

 

Three Months Ended

 

Six Months Ended

 

June 30,

 

June 30,

(Dollars in thousands)

2020

 

2019

 

2020

 

2019

Fixed maturities

$

133,918

 

$

126,593

 

$

271,842

 

$

253,301

Equity securities

 

3,662

 

 

4,596

 

 

7,183

 

 

8,103

Short-term investments and cash

 

1,687

 

 

5,393

 

 

3,862

 

 

9,598

Other invested assets

 

 

 

 

 

 

 

 

 

 

 

Limited partnerships

 

(88,254)

 

 

48,243

 

 

(66,686)

 

 

56,540

Other

 

(2,962)

 

 

3,299

 

 

(16,033)

 

 

6,279

Gross investment income before adjustments

 

48,051

 

 

188,124

 

 

200,168

 

 

333,821

Funds held interest income (expense)

 

2,021

 

 

1,422

 

 

10,237

 

 

7,390

Future policy benefit reserve income (expense)

 

(303)

 

 

(359)

 

 

(514)

 

 

(593)

Gross investment income

 

49,769

 

 

189,187

 

 

209,891

 

 

340,618

Investment expenses

 

(11,686)

 

 

(10,159)

 

 

(24,008)

 

 

(20,614)

Net investment income

$

38,083

 

$

179,028

 

$

185,883

 

$

320,004
Summary Of Components Of Net Realized Capital Gains (Losses)

 

Three Months Ended

 

Six Months Ended

 

June 30,

 

June 30,

(Dollars in thousands)

2020

 

 

2019

 

2020

 

 

2019

Fixed maturity securities, market value:

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses

$

(4,063)

 

$

-

 

$

(25,837)

 

$

-

Other-than-temporary impairments

 

-

 

 

(5,157)

 

 

-

 

 

(8,090)

Gains (losses) from sales

 

9,619

 

 

6,097

 

 

(4,457)

 

 

11,370

Fixed maturity securities, fair value:

 

 

 

 

 

 

 

 

 

 

 

Gains (losses) from sales

 

-

 

 

356

 

 

-

 

 

356

Gains (losses) from fair value adjustments

 

(272)

 

 

-

 

 

(1,395)

 

 

13

Equity securities, fair value:

 

 

 

 

 

 

 

 

 

 

 

Gains (losses) from sales

 

16,274

 

 

(1,315)

 

 

(11,325)

 

 

3,733

Gains (losses) from fair value adjustments

 

161,694

 

 

30,362

 

 

17,691

 

 

114,803

Other invested assets

 

1,293

 

 

(153)

 

 

(1,034)

 

 

243

Short-term investments gain (loss)

 

103

 

 

82

 

 

417

 

 

76

Total net realized capital gains (losses)

$

184,648

 

$

30,272

 

$

(25,940)

 

$

122,504

 

Roll Forward of Alowance for Credit Losses

 

Three Months Eded June 30, 2020

 

Six Months Ended June 30, 2020

 

 

 

 

Foreign

 

Foreign

 

 

 

 

 

 

 

Foreign

 

Foreign

 

 

 

 

Corporate

 

Government

 

Corporate

 

 

 

 

Corporate

 

Government

 

Corporate

 

 

 

 

Securities

 

Securities

 

Securities

 

Total

 

Securities

 

Securities

 

Securities

 

Total

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning Balance

$

(17,305)

 

$

(519)

 

$

(3,950)

 

$

(21,774)

 

$

-

 

$

-

 

$

-

 

$

-

Credit losses on securities where credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

losses were not previously recorded

 

(10,355)

 

 

-

 

 

(605)

 

 

(10,960)

 

 

(27,660)

 

 

(519)

 

 

(4,555)

 

 

(32,734)

Increases in allowance on previously

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

impaired securities

 

(782)

 

 

-

 

 

(300)

 

 

(1,082)

 

 

(782)

 

 

-

 

 

(300)

 

 

(1,082)

Decreases in allowance on previously

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

impaired securities

 

3,431

 

 

212

 

 

693

 

 

4,336

 

 

3,431

 

 

212

 

 

693

 

 

4,336

Reduction in allowance due to disposals

 

2,758

 

 

215

 

 

670

 

 

3,643

 

 

2,758

 

 

215

 

 

670

 

 

3,643

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of June 30, 2020

$

(22,253)

 

$

(92)

 

$

(3,492)

 

$

(25,837)

 

$

(22,253)

 

$

(92)

 

$

(3,492)

 

$

(25,837)
Summary Of Gross Gains (Losses) From Sales Of Fixed Maturity And Equity Securities

 

Three Months Ended

 

Six Months Ended

 

June 30,

 

June 30,

(Dollars in thousands)

2020

 

2019

 

2020

 

2019

Proceeds from sales of fixed maturity securities

$

488,320

 

$

522,687

 

$

990,273

 

$

2,320,913

Gross gains from sales

 

21,355

 

 

11,908

 

 

35,356

 

 

28,046

Gross losses from sales

 

(11,736)

 

 

(5,455)

 

 

(39,813)

 

 

(16,320)

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from sales of equity securities

$

100,344

 

$

79,733

 

$

213,185

 

$

149,233

Gross gains from sales

 

18,172

 

 

2,576

 

 

20,756

 

 

8,251

Gross losses from sales

 

(1,898)

 

 

(3,891)

 

 

(32,081)

 

 

(4,518)