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Investments (Tables)
 12 Months Ended
Dec. 31, 2022
Investments Debt And Equity Securities [Abstract]  
Schedule of AFS Securities Reconciliation The period-end cost or amortized cost, gross unrealized gains and losses, and fair value of AFS fixed-maturity securities were as follows:

 

 

 

December 31, 2022

 

 

 

Amortized cost

 

 

Gross unrealized gains

 

 

Gross unrealized losses

 

 

Fair value

 

 

 

(In thousands)

 

Securities available-for-sale, carried at fair value:

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-maturity securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agencies

 

$

31,217

 

 

$

18

 

 

$

(767

)

 

$

30,468

 

Foreign government

 

 

163,725

 

 

 

780

 

 

 

(11,590

)

 

 

152,915

 

States and political subdivisions

 

 

142,189

 

 

 

112

 

 

 

(20,056

)

 

 

122,245

 

Corporates

 

 

1,665,962

 

 

 

2,439

 

 

 

(171,552

)

 

 

1,496,849

 

Residential mortgage-backed securities

 

 

473,309

 

 

 

370

 

 

 

(71,949

)

 

 

401,730

 

Commercial mortgage-backed securities

 

 

139,306

 

 

 

3

 

 

 

(16,342

)

 

 

122,967

 

Other asset-backed securities

 

 

185,707

 

 

 

108

 

 

 

(17,533

)

 

 

168,282

 

Total fixed-maturity securities

 

$

2,801,415

 

 

$

3,830

 

 

$

(309,789

)

 

$

2,495,456

 

Short-term investments

 

 

69,393

 

 

 

20

 

 

 

(7

)

 

 

69,406

 

Total fixed-maturity and short-term investments

 

$

2,870,808

 

 

$

3,850

 

 

$

(309,796

)

 

$

2,564,862

 

 

 

 

December 31, 2021

 

 

 

Amortized cost

 

 

Gross unrealized gains

 

 

Gross unrealized losses

 

 

Fair value

 

 

 

(In thousands)

 

Securities available-for-sale, carried at fair value:

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-maturity securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agencies

 

$

32,292

 

 

$

187

 

 

$

(79

)

 

$

32,400

 

Foreign government

 

 

147,288

 

 

 

6,283

 

 

 

(595

)

 

 

152,976

 

States and political subdivisions

 

 

147,455

 

 

 

6,326

 

 

 

(254

)

 

 

153,527

 

Corporates

 

 

1,649,334

 

 

 

72,418

 

 

 

(8,068

)

 

 

1,713,684

 

Residential mortgage-backed securities

 

 

373,753

 

 

 

5,108

 

 

 

(3,230

)

 

 

375,631

 

Commercial mortgage-backed securities

 

 

142,631

 

 

 

3,314

 

 

 

(420

)

 

 

145,525

 

Other asset-backed securities

 

 

128,635

 

 

 

1,409

 

 

 

(1,220

)

 

 

128,824

 

Total fixed-maturity securities

 

$

2,621,388

 

 

$

95,045

 

 

$

(13,866

)

 

$

2,702,567

 

Short-term investments

 

 

85,246

 

 

 

1

 

 

 

(4

)

 

 

85,243

 

Total fixed-maturity and short-term investments

 

$

2,706,634

 

 

$

95,046

 

 

$

(13,870

)

 

$

2,787,810

 
Fixed-maturity Securities Classified by Contractual Maturity Securities Date

The scheduled maturity distribution of the AFS fixed-maturity securities portfolio as of December 31, 2022 was as follows:

 

 

 

Amortized cost

 

 

Fair value

 

 

 

(In thousands)

 

Due in one year or less

 

$

165,117

 

 

 

163,831

 

Due after one year through five years

 

 

783,376

 

 

 

740,167

 

Due after five years through 10 years

 

 

763,273

 

 

 

658,194

 

Due after 10 years

 

 

291,327

 

 

 

240,285

 

 

 

 

2,003,093

 

 

 

1,802,477

 

Mortgage- and asset-backed securities

 

 

798,322

 

 

 

692,979

 

Total AFS fixed-maturity securities

 

$

2,801,415

 

 

$

2,495,456

 
Costs and Fair Values of Fixed-Maturity Securities Classified as Trading Securities The costs and fair values of the fixed-maturity securities classified as trading securities were as follows:

 

 

 

December 31, 2022

 

 

December 31, 2021

 

 

 

Cost

 

 

Fair value

 

 

Cost

 

 

Fair value

 

 

 

(In thousands)

 

Fixed-maturity securities

 

$

4,229

 

 

$

3,698

 

 

$

24,769

 

 

$

24,355

 
Net Investment Income The components of net investment income were as follows:

 

 

 

Year ended December 31,

 

 

 

 

2022

 

 

2021

 

 

2020

 

 

 

 

(In thousands)

Fixed-maturity securities (available-for-sale)

 

$

90,975

 

 

$

80,362

 

 

$

82,805

 

 

Fixed-maturity security (held-to-maturity)

 

 

63,922

 

 

 

62,207

 

 

 

57,473

 

 

Equity securities

 

 

1,509

 

 

 

1,632

 

 

 

1,751

 

 

Policy loans and other invested assets

 

 

1,046

 

 

 

1,019

 

 

 

1,244

 

 

Cash, cash equivalent and short-term investments

 

 

5,943

 

 

 

456

 

 

 

1,202

 

 

Total return on deposit asset underlying 10% coinsurance
  agreement(1)

 

 

(65

)

 

 

1,875

 

 

 

4,253

 

 

Gross investment income

 

 

163,330

 

 

 

147,551

 

 

 

148,728

 

 

Investment expenses

 

 

(6,343

)

 

 

(4,756

)

 

 

(7,441

)

 

Investment income net of investment expenses

 

 

156,987

 

 

 

142,795

 

 

 

141,287

 

 

Interest expense on surplus note

 

 

(63,922

)

 

 

(62,207

)

 

 

(57,473

)

 

Net investment income

 

$

93,065

 

 

$

80,588

 

 

$

83,814

 

 

 

(1)
Includes $(3.8) million, $(2.5) million, and $2.0 million of net gains (losses) recognized for the change in fair value of the deposit asset underlying the 10% coinsurance agreement for the years ended December 31, 2022, 2021, and 2020, respectively.
Schedule of Investment Gains and Losses

The components of investment gains (losses), as well as details on gross realized investment gains (losses) and other investment gains (losses) were as follows:

 

 

 

Year ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

 

 

(In thousands)

 

Realized investment gains (losses):

 

 

 

 

 

 

 

 

 

Gross gains from sales of available-for-sale fixed maturity securities

 

$

2,036

 

 

$

7,060

 

 

$

2,595

 

Gross gains from sales of equity securities

 

 

-

 

 

 

-

 

 

 

12

 

Gross losses from sales of available-for-sale fixed maturity securities

 

 

(592

)

 

 

(2,395

)

 

 

(955

)

Gross losses from sales of equity securities

 

 

-

 

 

 

-

 

 

 

(293

)

Net realized investment gains (losses):

 

 

1,444

 

 

 

4,665

 

 

 

1,359

 

Other investment gains (losses):

 

 

 

 

 

 

 

 

 

Credit losses impairment of available-for-sale securities

 

 

(57

)

 

 

(816

)

 

 

(4,254

)

Market gains (losses) recognized in net income during the period on equity securities

 

 

(2,375

)

 

 

2,362

 

 

 

(2,154

)

Gains (losses) from bifurcated options

 

 

-

 

 

 

(57

)

 

 

57

 

Gains (losses) on trading securities

 

 

(7

)

 

 

(282

)

 

 

(4

)

Other investment gains (losses):

 

 

(2,439

)

 

 

1,207

 

 

 

(6,355

)

Investment gains (losses)

 

$

(995

)

 

$

5,872

 

 

$

(4,996

)
Schedule of Proceeds from Sales or Other Redemptions of Available-for-Sale Securities

The proceeds from sales or other redemptions of available-for-sale securities were as follows:

 

 

 

Year ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

 

 

(In thousands)

 

Proceeds from sales or other redemptions

 

$

496,898

 

 

$

676,153

 

 

$

496,907

 
Schedule of Securities in Unrealized Loss Position The following tables summarizes all AFS securities in an unrealized loss position for which an allowance for credit losses has not been recorded as of December 31, 2022, aggregated by major security type and by length of time such securities have continuously been in an unrealized loss position:

 

 

 

December 31, 2022

 

 

 

Less than 12 months

12 months or longer

 

 

 

Fair value

 

 

Unrealized losses

 

 

Fair value

 

 

Unrealized losses

 

 

 

(Dollars in thousands)

 

Fixed-maturity securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agencies

 

$

4,927

 

 

$

(204

)

 

$

25,209

 

 

$

(563

)

Foreign government

 

 

97,094

 

 

 

(4,430

)

 

 

38,085

 

 

 

(7,160

)

States and political subdivisions

 

 

71,131

 

 

 

(10,666

)

 

 

44,324

 

 

 

(9,390

)

Corporates

 

 

974,931

 

 

 

(69,726

)

 

 

452,541

 

 

 

(101,826

)

Residential mortgage-backed securities

 

 

187,158

 

 

 

(22,171

)

 

 

201,595

 

 

 

(49,778

)

Commercial mortgage-backed securities

 

 

65,165

 

 

 

(5,069

)

 

 

56,799

 

 

 

(11,273

)

Other asset-backed securities

 

 

81,907

 

 

 

(5,807

)

 

 

72,977

 

 

 

(11,726

)

Total fixed-maturity securities

 

 

1,482,313

 

 

 

(118,073

)

 

 

891,530

 

 

 

(191,716

)

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agencies

 

 

28,379

 

 

 

(5

)

 

 

-

 

 

 

-

 

Foreign government

 

 

1,744

 

 

 

(2

)

 

 

-

 

 

 

-

 

Total Short Term Bonds

 

 

30,123

 

 

 

(7

)

 

 

-

 

 

 

-

 

Total fixed-maturity and Short Term securities

 

$

1,512,436

 

 

$

(118,080

)

 

$

891,530

 

 

$

(191,716

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2021

 

 

 

Less than 12 months

12 months or longer

 

 

 

Fair value

 

 

Unrealized losses

 

 

Fair value

 

 

Unrealized losses

 

 

 

(Dollars in thousands)

 

Fixed-maturity securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agencies

 

$

24,928

 

 

$

(45

)

 

$

1,557

 

 

$

(34

)

Foreign government

 

 

18,894

 

 

 

(384

)

 

 

3,335

 

 

 

(211

)

States and political subdivisions

 

 

15,909

 

 

 

(254

)

 

 

-

 

 

 

-

 

Corporates

 

 

341,963

 

 

 

(5,035

)

 

 

59,414

 

 

 

(3,033

)

Residential mortgage-backed securities

 

 

234,911

 

 

 

(3,131

)

 

 

2,707

 

 

 

(99

)

Commercial mortgage-backed securities

 

 

47,220

 

 

 

(419

)

 

 

117

 

 

 

(1

)

Other asset-backed securities

 

 

80,509

 

 

 

(1,037

)

 

 

3,779

 

 

 

(183

)

Total fixed-maturity securities

 

$

764,334

 

 

$

(10,305

)

 

$

70,909

 

 

$

(3,561

)

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agencies

 

 

34,967

 

 

*

 

 

 

-

 

 

 

-

 

Foreign government

 

 

4,995

 

 

*

 

 

 

-

 

 

 

-

 

States and political subdivisions

 

 

11,394

 

 

 

(1

)

 

 

-

 

 

 

-

 

Corporates

 

 

23,891

 

 

 

(3

)

 

 

-

 

 

 

-

 

Total Short Term Bonds

 

 

75,247

 

 

 

(4

)

 

 

-

 

 

 

-

 

Total fixed-maturity and Short Term securities

 

$

839,581

 

 

$

(10,309

)

 

$

70,909

 

 

$

(3,561

)

* Less than $1 thousand

Rollforward of Allowance for Credit Losses on Available-for-sale Securities

The rollforward of the allowance for credit losses on available-for-sale securities was as follows:

 

 

Year ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

 

 

(In thousands)

 

Allowance for credit losses, beginning of period

 

$

816

 

 

$

-

 

 

$

-

 

Additions to the allowance for credit losses on securities for which credit losses were not previously recorded

 

 

-

 

 

 

821

 

 

 

525

 

Additional increases (or decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period

 

 

(81

)

 

 

(5

)

 

 

(51

)

Write-offs charged against the allowance, if any

 

 

(735

)

 

 

-

 

 

 

(474

)

Allowance for credit losses, end of period

 

$

-

 

 

$

816

 

 

$

-