XML 40 R28.htm IDEA: XBRL DOCUMENT v3.23.1
Investments (Tables)
 3 Months Ended
Mar. 31, 2023
Investments Debt And Equity Securities [Abstract]  
Schedule of Available-for-sale Securities The period-end amortized cost, gross unrealized gains and losses, and fair value of available-for-sale securities were as follows:

 

 

March 31, 2023

 

 

 

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

 

$

9,976

 

 

$

26

 

 

$

(571

)

 

$

9,431

 

Foreign government

 

 

157,424

 

 

 

1,234

 

 

 

(9,053

)

 

 

149,605

 

States and political subdivisions

 

 

138,835

 

 

 

239

 

 

 

(15,799

)

 

 

123,275

 

Corporates

 

 

1,701,254

 

 

 

5,056

 

 

 

(148,291

)

 

 

1,558,019

 

Residential mortgage-backed securities

 

 

476,070

 

 

 

456

 

 

 

(67,980

)

 

 

408,546

 

Commercial mortgage-backed securities

 

 

142,789

 

 

 

43

 

 

 

(15,114

)

 

 

127,718

 

Other asset-backed securities

 

 

196,648

 

 

 

410

 

 

 

(15,026

)

 

 

182,032

 

Total fixed-maturity securities

 

 

2,822,996

 

 

 

7,464

 

 

 

(271,834

)

 

 

2,558,626

 

Short-term investments

 

 

70,185

 

 

 

7

 

 

 

(5

)

 

 

70,187

 

Total fixed-maturity and short-term investments

 

$

2,893,181

 

 

$

7,471

 

 

$

(271,839

)

 

$

2,628,813

 

 

 

 

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

 
Fixed-maturity Securities Classified by Contractual Maturity Date

The scheduled maturity distribution of the available-for-sale (“AFS”) fixed-maturity portfolio as of March 31, 2023 was as follows:

 

 

 

Amortized cost

 

 

Fair value

 

 

 

(In thousands)

 

Due in one year or less

 

$

154,148

 

 

$

152,676

 

Due after one year through five years

 

 

770,897

 

 

 

733,708

 

Due after five years through 10 years

 

 

783,681

 

 

 

697,131

 

Due after 10 years

 

 

298,763

 

 

 

256,815

 

 

 

 

2,007,489

 

 

 

1,840,330

 

Mortgage- and asset-backed securities

 

 

815,507

 

 

 

718,296

 

  Total AFS fixed-maturity securities

 

$

2,822,996

 

 

$

2,558,626

 
Costs and Fair Value of Securities Classified as Trading Securities The cost and fair value of the securities classified as trading securities were as follows:

 

 

March 31, 2023

 

 

December 31, 2022

 

 

 

Cost

 

 

Fair value

 

 

Cost

 

 

Fair value

 

 

 

(In thousands)

 

Fixed-maturity securities

 

$

19,033

 

 

$

18,497

 

 

$

4,229

 

 

$

3,698

 
Net Investment Income

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

 

 

Three months ended March 31,

 

 

 

2023

 

 

2022

 

 

 

(In thousands)

 

Fixed-maturity securities (available-for-sale)

 

$

25,806

 

 

$

20,889

 

Fixed-maturity security (held-to-maturity)

 

 

16,435

 

 

 

15,515

 

Equity securities

 

 

380

 

 

 

387

 

Policy loans and other invested assets

 

 

(71

)

 

 

102

 

Cash and cash equivalents

 

 

5,128

 

 

 

125

 

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

 

 

2,049

 

 

 

(1,510

)

  Gross investment income

 

 

49,727

 

 

 

35,508

 

Investment expenses

 

 

(2,227

)

 

 

(1,088

)

   Investment income net of investment expenses

 

 

47,500

 

 

 

34,420

 

Interest expense on surplus note

 

 

(16,435

)

 

 

(15,515

)

    Net investment income

 

$

31,065

 

 

$

18,905

 

 

(1)
Includes ($0.3) million and $(2.1) million of net gains (losses) recognized for the change in fair value of the deposit asset underlying the 10% coinsurance agreement for the three months ended March 31, 2023 and 2022, respectively.
Schedule of Components of Investment Gains (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:

 

 

Three months ended March 31,

 

 

 

2023

 

 

2022

 

 

 

(In thousands)

 

Realized investment gains (losses):

 

 

 

 

 

 

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

 

$

49

 

 

$

602

 

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

 

 

(1,034

)

 

 

(25

)

Net realized investment gains (losses):

 

 

(985

)

 

 

577

 

Other investment gains (losses):

 

 

 

 

 

 

Credit losses impairment of available-for-sale securities

 

 

(2,160

)

 

 

81

 

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

 

 

(1,475

)

 

 

115

 

Gains (losses) from bifurcated options

 

 

8

 

 

 

-

 

Gains (losses) on trading securities

 

 

4

 

 

 

(22

)

Other investment gains (losses):

 

 

(3,623

)

 

 

174

 

Investment gains (losses)

 

$

(4,608

)

 

$

751

 
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:

 

 

Three months ended March 31,

 

 

 

2023

 

 

2022

 

 

 

(In thousands)

 

Proceeds from sales or other redemptions

 

$

85,430

 

 

$

139,113

 
Schedule of Securities in Unrealized Loss Position The following table summarizes all available-for-sale securities in an unrealized loss position for which an allowance for credit losses has not been recorded as of March 31, 2023, aggregated by major security type and length of time such securities have continuously been in an unrealized loss position:

 

 

March 31, 2023

 

 

 

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

 

$

3,920

 

 

$

(99

)

 

$

5,173

 

 

$

(472

)

Foreign government

 

 

30,377

 

 

 

(399

)

 

 

91,887

 

 

 

(8,654

)

States and political subdivisions

 

 

10,178

 

 

 

(277

)

 

 

102,623

 

 

 

(15,522

)

Corporates

 

 

457,448

 

 

 

(12,678

)

 

 

926,057

 

 

 

(135,613

)

Residential mortgage-backed securities

 

 

40,398

 

 

 

(3,342

)

 

 

348,490

 

 

 

(64,638

)

Commercial mortgage-backed securities

 

 

27,240

 

 

 

(884

)

 

 

95,244

 

 

 

(14,230

)

Other asset-backed securities

 

 

29,901

 

 

 

(1,243

)

 

 

117,076

 

 

 

(13,783

)

 Total fixed-maturity securities

 

 

599,462

 

 

 

(18,922

)

 

 

1,686,550

 

 

 

(252,912

)

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agencies

 

 

15,835

 

 

 

(4

)

 

 

-

 

 

 

-

 

Foreign government

 

 

1,756

 

 

 

(1

)

 

 

-

 

 

 

-

 

Total short-term investments

 

 

17,591

 

 

 

(5

)

 

 

-

 

 

 

-

 

Total fixed-maturity securities and short-term investments

 

$

617,053

 

 

$

(18,927

)

 

$

1,686,550

 

 

$

(252,912

)

 

 

 

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 investments

 

 

30,123

 

 

 

(7

)

 

 

-

 

 

 

-

 

Total fixed-maturity securities and short-term investments

 

$

1,512,436

 

 

$

(118,080

)

 

$

891,530

 

 

$

(191,716

)
Schedule of Securities in Allowance for Credit Losses

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

 

 

Three months ended March 31,

 

 

 

2023

 

 

2022

 

 

 

(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

 

 

-

 

 

 

-

 

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

 

 

-

 

 

 

(81

)

Write-offs charged against the allowance, if any

 

 

-

 

 

 

-

 

Allowance for credit losses, end of period

 

$

-

 

 

$

735