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Investments (Tables)
9 Months Ended
Sep. 30, 2022
Investments  
Gross unrealized gains and losses on investments in securities

As of September 30, 2022

    

Cost or

    

Allowance for

    

Gross Unrealized

    

Estimated

Amortized

Expected Credit

Fair

Cost

Losses

Gains

Losses (3)

Value

U.S. Treasury securities

$

1,826

$

$

$

(169)

$

1,657

Obligations of states and political subdivisions

 

70,753

 

 

251

 

(4,242)

 

66,762

Residential mortgage-backed securities (1)

 

249,892

 

 

133

 

(29,290)

 

220,735

Commercial mortgage-backed securities

 

151,852

 

 

 

(15,114)

 

136,738

Other asset-backed securities

 

74,623

 

 

 

(5,148)

 

69,475

Corporate and other securities

 

605,557

 

(898)

 

202

 

(61,126)

 

543,735

Subtotal, fixed maturity securities 

 

1,154,503

 

(898)

 

586

 

(115,089)

 

1,039,102

Equity securities (2)

 

229,153

 

 

27,064

 

(30,250)

 

225,967

Other invested assets

 

107,070

 

 

 

 

107,070

Totals

$

1,490,726

$

(898)

$

27,650

$

(145,339)

$

1,372,139

As of December 31, 2021

    

Cost or

    

Allowance for

    

Gross Unrealized

    

Estimated

Amortized

Expected Credit

Fair

Cost

Losses

Gains

Losses (3)

Value

U.S. Treasury securities

$

318

$

$

6

$

$

324

Obligations of states and political subdivisions

 

111,578

 

 

4,847

 

(123)

 

116,302

Residential mortgage-backed securities (1)

 

237,026

 

 

5,941

 

(1,503)

 

241,464

Commercial mortgage-backed securities

 

146,318

 

 

5,007

 

(442)

 

150,883

Other asset-backed securities

 

83,376

 

 

475

 

(255)

 

83,596

Corporate and other securities

 

609,241

 

(691)

 

20,647

 

(3,487)

 

625,710

Subtotal, fixed maturity securities 

 

1,187,857

 

(691)

 

36,923

 

(5,810)

 

1,218,279

Equity securities (2)

 

211,848

 

 

54,861

 

(1,764)

 

264,945

Other invested assets

 

87,911

 

 

 

 

87,911

Totals

$

1,487,616

$

(691)

$

91,784

$

(7,574)

$

1,571,135

(1)Residential mortgage-backed securities consisted primarily of obligations of U.S. Government agencies including collateralized mortgage obligations issued, guaranteed and/or insured by the following issuers: Government National Mortgage Association (GNMA), Federal Home Loan Mortgage Corporation (FHLMC), Federal National Mortgage Association (FNMA) and the Federal Home Loan Bank (FHLB).
(2)Equity securities included common stock, preferred stock, mutual funds and interests in mutual funds held to fund the Company’s executive deferred compensation plan.
(3)The Company’s investment portfolio included 1,274 and 444 securities in an unrealized loss position at September 30, 2022 and December 31, 2021, respectively.
Amortized cost and the estimated fair value of fixed maturity securities, by maturity

As of September 30, 2022

    

Amortized

    

Estimated

Cost

Fair Value

Due in one year or less

$

34,116

$

33,818

Due after one year through five years

 

287,121

 

266,167

Due after five years through ten years

 

315,613

 

275,781

Due after ten years through twenty years

 

39,878

 

35,118

Due after twenty years

 

1,408

 

1,270

Asset-backed securities

 

476,367

 

426,948

Totals

$

1,154,503

$

1,039,102

Gross realized gains and losses on sales of investments

Three Months Ended September 30, 

    

Nine Months Ended September 30, 

    

2022

    

2021

 

2022

    

2021

Gross realized gains

Fixed maturity securities

$

302

$

527

$

1,295

$

2,660

Equity securities

 

2,029

 

1,826

 

9,443

 

6,978

Gross realized losses

Fixed maturity securities

 

(1,044)

 

(31)

 

(2,040)

 

(941)

Equity securities

 

(36)

 

(96)

 

(85)

 

(190)

Net realized gains on investments

$

1,251

$

2,226

$

8,613

$

8,507

Gross unrealized losses included in the Company's investment portfolio and the fair value of those securities

As of September 30, 2022

Less than 12 Months

12 Months or More

Total

    

Estimated

    

Unrealized

    

Estimated

    

Unrealized

    

Estimated

    

Unrealized

Fair Value

Losses

Fair Value

Losses

Fair Value

Losses

U.S. Treasury securities

$

1,657

$

169

$

$

$

1,657

$

169

Obligations of states and political subdivisions

 

44,270

 

3,425

 

2,154

 

817

 

46,424

 

4,242

Residential mortgage-backed securities

 

193,570

 

24,470

 

22,269

 

4,820

 

215,839

 

29,290

Commercial mortgage-backed securities

 

128,526

 

12,991

 

8,212

 

2,123

 

136,738

 

15,114

Other asset-backed securities

 

65,183

4,955

4,292

193

69,475

5,148

Corporate and other securities

 

444,137

 

42,759

 

90,967

 

18,367

 

535,104

 

61,126

Subtotal, fixed maturity securities

 

877,343

 

88,769

 

127,894

 

26,320

 

1,005,237

 

115,089

Equity securities

 

128,994

 

28,203

 

3,409

 

2,047

 

132,403

 

30,250

Total temporarily impaired securities

$

1,006,337

$

116,972

$

131,303

$

28,367

$

1,137,640

$

145,339

As of December 31, 2021

Less than 12 Months

12 Months or More

Total

    

Estimated

    

Unrealized

    

Estimated

    

Unrealized

    

Estimated

    

Unrealized

Fair Value

Losses

Fair Value

Losses

Fair Value

Losses

U.S. Treasury securities

$

$

$

$

$

$

Obligations of states and political subdivisions

 

2,985

 

85

 

1,012

 

38

 

3,997

 

123

Residential mortgage-backed securities

 

97,116

 

1,502

 

11

 

1

 

97,127

 

1,503

Commercial mortgage-backed securities

 

29,660

 

442

 

 

 

29,660

 

442

Other asset-backed securities

 

39,266

255

 

39,266

 

255

Corporate and other securities

 

181,470

 

3,140

 

11,436

 

347

 

192,906

 

3,487

Subtotal, fixed maturity securities

 

350,497

 

5,424

 

12,459

 

386

 

362,956

 

5,810

Equity securities

 

19,457

 

1,559

 

1,029

 

205

 

20,486

 

1,764

Total temporarily impaired securities

$

369,954

$

6,983

$

13,488

$

591

$

383,442

$

7,574

Reconciliation of beginning and ending balances of allowance for expected credit losses on fixed maturities classified as available for sale

Three Months Ended September 30, 

Nine Months Ended September 30, 

2022

2021

2022

    

2021

Balance, beginning of period

$

691

$

680

$

691

$

1,054

Credit losses on securities with no previously recorded credit losses

193

193

9

Net increases (decreases) in allowance on previously impaired securities

 

98

51

 

98

 

(172)

Reduction due to sales

 

(84)

(2)

(84)

(162)

Writeoffs charged against allowance

 

 

 

Recoveries of amounts previously written off

 

 

 

Balance, end of period

$

898

$

729

$

898

$

729

Components of net investment income

Three Months Ended September 30, 

 

Nine Months Ended September 30, 

    

2022

    

2021

    

2022

    

2021

Interest on fixed maturity securities

$

10,074

$

9,636

$

28,925

$

27,320

Dividends on equity securities

 

1,442

 

1,327

 

4,198

 

3,746

Equity in earnings of other invested assets

 

379

 

987

 

2,644

 

3,834

Interest on other assets

 

23

 

6

 

38

 

17

Total investment income 

 

11,918

 

11,956

 

35,805

 

34,917

Investment expenses

 

806

 

844

 

2,468

 

2,499

Net investment income 

$

11,112

$

11,112

$

33,337

$

32,418

Fair value measurements for investments

As of September 30, 2022

    

Total

    

Level 1 Inputs

    

Level 2 Inputs

    

Level 3 Inputs

U.S. Treasury securities

$

1,657

$

$

1,657

$

Obligations of states and political subdivisions

 

66,762

 

 

66,762

 

Residential mortgage-backed securities

 

220,735

 

 

220,735

 

Commercial mortgage-backed securities

 

136,738

 

 

136,738

 

Other asset-backed securities

 

69,475

 

 

69,475

 

Corporate and other securities

 

543,735

 

 

543,735

 

Equity securities

 

183,666

 

181,611

 

 

2,055

Total investment securities

$

1,222,768

$

181,611

$

1,039,102

$

2,055

As of December 31, 2021

    

Total

    

Level 1 Inputs

    

Level 2 Inputs

    

Level 3 Inputs

U.S. Treasury securities

$

324

$

$

324

$

Obligations of states and political subdivisions

 

116,302

 

 

116,302

 

Residential mortgage-backed securities

 

241,464

 

 

241,464

 

Commercial mortgage-backed securities

 

150,883

 

 

150,883

 

Other asset-backed securities

 

83,596

 

 

83,596

 

Corporate and other securities

 

625,710

 

 

625,710

 

Equity securities

 

226,375

 

224,677

 

 

1,698

Total investment securities

$

1,444,654

$

224,677

$

1,218,279

$

1,698

Changes in the Company's Level 3 fair value securities

Three Months Ended September 30, 

 

Nine Months Ended September 30, 

    

2022

    

2021

    

2022

    

2021

Level 3

Level 3

 

Level 3

Level 3

Fair Value

Fair Value

 

Fair Value

Fair Value

Securities

Securities

 

Securities

Securities

Balance at beginning of period

$

2,055

$

1,698

$

1,698

$

1,698

Net gains and losses included in earnings

 

 

 

 

Net gains included in other comprehensive income

 

 

 

 

Purchases

 

 

 

357

 

Sales

Transfers into Level 3

 

 

 

Transfers out of Level 3

 

 

 

 

Balance at end of period

$

2,055

$

1,698

$

2,055

$

1,698

Amount of total losses included in earnings attributable to the change in unrealized losses related to assets still held at end of period

$

$

$

$