XML 89 R31.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Investments (Tables)
 12 Months Ended
Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]  
Available-For-Sale Investments The following tables summarize the Company's available-for-sale investments. Commercial and residential mortgage-backed securities include securities issued by U.S. government-sponsored enterprises and U.S. government agencies. The net unrealized holding gains in the tables below are presented before taxes and any reserve deficiency adjustments for life and annuity benefit reserves. See note 12.

 
December 31, 2019
(dollars in thousands)
Amortized
Cost
 
Gross
Unrealized
Holding
Gains
 
Gross
Unrealized
Holding
Losses
 
Estimated
Fair
Value
Fixed maturities:
 
 
 
 
 
 
 
U.S. Treasury securities
$
282,305

 
$
2,883

 
$
(402
)
 
$
284,786

U.S. government-sponsored enterprises
318,831

 
23,949

 
(200
)
 
342,580

Obligations of states, municipalities and political subdivisions
3,954,779

 
235,915

 
(812
)
 
4,189,882

Foreign governments
1,415,639

 
135,763

 
(9,398
)
 
1,542,004

Commercial mortgage-backed securities
1,761,777

 
57,450

 
(1,382
)
 
1,817,845

Residential mortgage-backed securities
855,641

 
32,949

 
(517
)
 
888,073

Asset-backed securities
11,042

 
28

 
(22
)
 
11,048

Corporate bonds
848,826

 
47,551

 
(1,686
)
 
894,691

Total fixed maturities
9,448,840

 
536,488

 
(14,419
)
 
9,970,909

Short-term investments
1,194,953

 
1,355

 
(60
)
 
1,196,248

Investments, available-for-sale
$
10,643,793

 
$
537,843

 
$
(14,479
)
 
$
11,167,157

 
 
 
 
 
 
 
 
 
December 31, 2018
(dollars in thousands)
Amortized
Cost
 
Gross
Unrealized
Holding
Gains
 
Gross
Unrealized
Holding
Losses
 
Estimated
Fair
Value
Fixed maturities:
 
 
 
 
 
 
 
U.S. Treasury securities
$
248,286

 
$
308

 
$
(1,952
)
 
$
246,642

U.S. government-sponsored enterprises
357,765

 
5,671

 
(4,114
)
 
359,322

Obligations of states, municipalities and political subdivisions
4,285,068

 
96,730

 
(28,868
)
 
4,352,930

Foreign governments
1,482,826

 
98,356

 
(21,578
)
 
1,559,604

Commercial mortgage-backed securities
1,691,572

 
3,154

 
(44,527
)
 
1,650,199

Residential mortgage-backed securities
886,501

 
6,170

 
(12,499
)
 
880,172

Asset-backed securities
19,614

 
7

 
(213
)
 
19,408

Corporate bonds
979,141

 
13,234

 
(17,464
)
 
974,911

Total fixed maturities
9,950,773

 
223,630

 
(131,215
)
 
10,043,188

Short-term investments
1,080,027

 
443

 
(2,774
)
 
1,077,696

Investments, available-for-sale
$
11,030,800

 
$
224,073

 
$
(133,989
)
 
$
11,120,884
Summary Of Gross Unrealized Investment Losses By Length Of Time That Securities Have Continuously Been In An Unrealized Loss Position The following tables summarize gross unrealized investment losses on available-for-sale investments by the length of time that securities have continuously been in an unrealized loss position.

 
December 31, 2019
 
Less than 12 months
 
12 months or longer
 
Total
(dollars in thousands)
Estimated
Fair
Value
 
Gross 
Unrealized
Holding
Losses
 
Estimated
Fair
Value
 
Gross 
Unrealized
Holding
Losses
 
Estimated
Fair
Value
 
Gross 
Unrealized
Holding
Losses
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
$
36,862

 
$
(361
)
 
$
46,518

 
$
(41
)
 
$
83,380

 
$
(402
)
U.S. government-sponsored enterprises
24,148

 
(197
)
 
2,868

 
(3
)
 
27,016

 
(200
)
Obligations of states, municipalities and political subdivisions
127,836

 
(702
)
 
6,830

 
(110
)
 
134,666

 
(812
)
Foreign governments
162,907

 
(3,393
)
 
159,888

 
(6,005
)
 
322,795

 
(9,398
)
Commercial mortgage-backed securities
202,530

 
(1,126
)
 
33,853

 
(256
)
 
236,383

 
(1,382
)
Residential mortgage-backed securities
11,706

 
(66
)
 
58,162

 
(451
)
 
69,868

 
(517
)
Asset-backed securities
—

 
—

 
3,632

 
(22
)
 
3,632

 
(22
)
Corporate bonds
41,847

 
(1,287
)
 
40,274

 
(399
)
 
82,121

 
(1,686
)
Total fixed maturities
607,836

 
(7,132
)
 
352,025

 
(7,287
)
 
959,861

 
(14,419
)
Short-term investments
3,316

 
(60
)
 
—

 
—

 
3,316

 
(60
)
Total
$
611,152

 
$
(7,192
)
 
$
352,025

 
$
(7,287
)
 
$
963,177

 
$
(14,479
)

 
December 31, 2018
 
Less than 12 months
 
12 months or longer
 
Total
(dollars in thousands)
Estimated
Fair
Value
 
Gross 
Unrealized
Holding
Losses
 
Estimated
Fair
Value
 
Gross 
Unrealized
Holding
Losses
 
Estimated
Fair
Value
 
Gross 
Unrealized
Holding
Losses
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
$
2,922

 
$
(83
)
 
$
156,352

 
$
(1,869
)
 
$
159,274

 
$
(1,952
)
U.S. government-sponsored enterprises
88,854

 
(1,923
)
 
96,337

 
(2,191
)
 
185,191

 
(4,114
)
Obligations of states, municipalities and political subdivisions
656,573

 
(12,455
)
 
453,736

 
(16,413
)
 
1,110,309

 
(28,868
)
Foreign governments
419,764

 
(14,461
)
 
84,776

 
(7,117
)
 
504,540

 
(21,578
)
Commercial mortgage-backed securities
653,410

 
(10,128
)
 
709,971

 
(34,399
)
 
1,363,381

 
(44,527
)
Residential mortgage-backed securities
276,777

 
(3,685
)
 
242,949

 
(8,814
)
 
519,726

 
(12,499
)
Asset-backed securities
1,645

 
(11
)
 
17,030

 
(202
)
 
18,675

 
(213
)
Corporate bonds
313,164

 
(10,965
)
 
222,761

 
(6,499
)
 
535,925

 
(17,464
)
Total fixed maturities
2,413,109

 
(53,711
)
 
1,983,912

 
(77,504
)
 
4,397,021

 
(131,215
)
Short-term investments
197,643

 
(2,774
)
 
—

 
—

 
197,643

 
(2,774
)
Total
$
2,610,752

 
$
(56,485
)
 
$
1,983,912

 
$
(77,504
)
 
$
4,594,664

 
$
(133,989
)
Schedule Of Amortized Cost And Estimated Fair Value Of Fixed Maturities By Contractual Maturity The amortized cost and estimated fair value of fixed maturities at December 31, 2019 are shown below by contractual maturity.

(dollars in thousands)
Amortized
Cost
 
Estimated
Fair Value
Due in one year or less
$
337,917

 
$
333,759

Due after one year through five years
1,256,079

 
1,289,760

Due after five years through ten years
2,157,624

 
2,274,569

Due after ten years
3,068,760

 
3,355,855

 
6,820,380

 
7,253,943

Commercial mortgage-backed securities
1,761,777

 
1,817,845

Residential mortgage-backed securities
855,641

 
888,073

Asset-backed securities
11,042

 
11,048

Total fixed maturities
$
9,448,840

 
$
9,970,909
Components Of Net Investment Income The following table presents the components of net investment income.

 
Years Ended December 31,
(dollars in thousands)
2019
 
2018
 
2017
Interest:
 
 
 
 
 
Municipal bonds (tax-exempt)
$
71,351

 
$
80,016

 
$
87,768

Municipal bonds (taxable)
72,818

 
73,058

 
70,771

Other taxable bonds
162,861

 
159,329

 
145,085

Short-term investments, including overnight deposits
50,425

 
48,765

 
26,772

Dividends on equity securities
100,222

 
90,840

 
82,096

Income (loss) from equity method investments
4,368

 
(1,924
)
 
11,076

Other
5,338

 
881

 
(828
)
 
467,383

 
450,965

 
422,740

Investment expenses
(15,495
)
 
(16,750
)
 
(17,031
)
Net investment income
$
451,888

 
$
434,215

 
$
405,709
Summary Of Net Realized Investment Gains (Losses) And The Change In Net Unrealized Gains On Investments The following table presents net investment gains (losses) and the change in net unrealized gains included in other comprehensive income (loss).

 
Years Ended December 31,
(dollars in thousands)
2019
 
2018
 
2017
Realized gains:
 
 
 
 
 
Sales and maturities of fixed maturities
$
6,851

 
$
4,221

 
$
5,525

Sales of equity securities (1)
—

 
—

 
40,113

Sales and maturities of short-term investments
1,457

 
1,604

 
—

Other
400

 
1,281

 
6,644

Total realized gains
8,708

 
7,106

 
52,282

Realized losses:
 
 
 
 
 
Sales and maturities of fixed maturities
(2,848
)
 
(5,768
)
 
(1,983
)
Sales of equity securities (1)
—

 
—

 
(1,830
)
Sales and maturities of short-term investments
(2,999
)
 
(10,545
)
 
(699
)
Other-than-temporary impairments
—

 
—

 
(7,589
)
Other
(4,343
)
 
(2,767
)
 
(596
)
Total realized losses
(10,190
)
 
(19,080
)
 
(12,697
)
Net realized investment gains (losses)
(1,482
)
 
(11,974
)
 
39,585

Change in fair value of equity securities: (1)
 
 
 
 
 
Equity securities sold during the period
38,291

 
20,177

 
6,989

Equity securities held at the end of the period
1,564,913

 
(445,799
)
 
(51,877
)
Change in fair value of equity securities (1)
1,603,204

 
(425,622
)
 
(44,888
)
Net investment gains (losses)
$
1,601,722

 
$
(437,596
)
 
$
(5,303
)
Change in net unrealized gains included in other comprehensive income (loss):
 
 
 
 
 
Fixed maturities
$
429,654

 
$
(297,158
)
 
$
89,741

Equity securities (1)
—

 
—

 
1,035,793

Short-term investments
3,626

 
(2,288
)
 
(94
)
Reserve deficiency adjustment for life and annuity benefit reserves (see note 12)
(51,390
)
 
—

 
—

Net increase (decrease)
$
381,890

 
$
(299,446
)
 
$
1,125,440


(1) 
Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, equity securities are no longer classified as available-for-sale with unrealized gains and losses recognized in other comprehensive income; rather, all changes in the fair value of equity securities are now recognized in net income. Prior periods have not been restated to conform to the current presentation. Prior to adopting ASU No. 2016-01, the Company recorded certain investments in equity securities at estimated fair value with changes in fair value recorded in net income.
Schedule of Restricted Assets [Table Text Block] Total restricted assets are included on the Company's consolidated balance sheets as follows.

 
December 31,
(dollars in thousands)
2019
 
2018
Investments
$
4,134,164

 
$
4,781,566

Restricted cash and cash equivalents
427,546

 
382,264

Total
$
4,561,710

 
$
5,163,830
Components Of Restricted Assets
The following table presents the components of restricted assets.

 
December 31,
(dollars in thousands)
2019
 
2018
Assets held in trust or on deposit to support underwriting activities
$
4,155,621

 
$
4,780,613

Assets pledged as security for letters of credit
406,089

 
383,217

Total
$
4,561,710

 
$
5,163,830