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Investments (Tables)
 6 Months Ended
Jun. 30, 2024
Investments, Debt and Equity Securities [Abstract]  
Schedule of AFS Securities Reconciliation The amortized cost, gross unrealized gains and losses, and fair value of available-for-sale (“AFS”) securities were as follows:

 

 

June 30, 2024

 

 

 

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

 

$

10,368

 

 

$

9

 

 

$

(480

)

 

$

9,897

 

Foreign government

 

 

168,743

 

 

 

638

 

 

 

(10,050

)

 

 

159,331

 

States and political subdivisions

 

 

136,350

 

 

 

101

 

 

 

(14,983

)

 

 

121,468

 

Corporates

 

 

1,845,728

 

 

 

8,267

 

 

 

(130,992

)

 

 

1,723,003

 

Residential mortgage-backed securities

 

 

504,580

 

 

 

546

 

 

 

(69,523

)

 

 

435,603

 

Commercial mortgage-backed securities

 

 

118,240

 

 

 

93

 

 

 

(12,637

)

 

 

105,696

 

Other asset-backed securities

 

 

249,905

 

 

 

1,111

 

 

 

(9,984

)

 

 

241,032

 

Total fixed-maturity securities

 

$

3,033,914

 

 

$

10,765

 

 

$

(248,649

)

 

$

2,796,030

 

 

 

 

December 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

 

$

9,974

 

 

$

18

 

 

$

(476

)

 

$

9,516

 

Foreign government

 

 

170,354

 

 

 

1,616

 

 

 

(8,588

)

 

 

163,382

 

States and political subdivisions

 

 

145,779

 

 

 

891

 

 

 

(14,681

)

 

 

131,989

 

Corporates

 

 

1,723,023

 

 

 

14,787

 

 

 

(120,286

)

 

 

1,617,524

 

Residential mortgage-backed securities

 

 

499,771

 

 

 

1,688

 

 

 

(63,928

)

 

 

437,531

 

Commercial mortgage-backed securities

 

 

127,454

 

 

 

156

 

 

 

(15,443

)

 

 

112,167

 

Other asset-backed securities

 

 

258,857

 

 

 

763

 

 

 

(12,262

)

 

 

247,358

 

Total fixed-maturity securities

 

 

2,935,212

 

 

 

19,919

 

 

 

(235,664

)

 

 

2,719,467

 

Short-term investments

 

 

276

 

 

 

-

 

 

 

-

 

 

 

276

 

Total fixed-maturity and short-term investments

 

$

2,935,488

 

 

$

19,919

 

 

$

(235,664

)

 

$

2,719,743

 
Fixed-maturity Securities Classified by Contractual Maturity Securities Date

The scheduled maturity distribution of the AFS fixed-maturity securities portfolio as of June 30, 2024 was as follows:

 

 

 

Amortized cost

 

 

Fair value

 

 

 

(In thousands)

 

Due in one year or less

 

$

183,824

 

 

$

182,161

 

Due after one year through five years

 

 

745,364

 

 

 

716,707

 

Due after five years through 10 years

 

 

819,934

 

 

 

741,336

 

Due after 10 years

 

 

412,067

 

 

 

373,495

 

 

 

 

2,161,189

 

 

 

2,013,699

 

Mortgage- and asset-backed securities

 

 

872,725

 

 

 

782,331

 

  Total AFS fixed-maturity securities

 

$

3,033,914

 

 

$

2,796,030

 
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:

 

 

June 30, 2024

 

 

December 31, 2023

 

 

 

Cost

 

 

Fair value

 

 

Cost

 

 

Fair value

 

 

 

(In thousands)

 

Fixed-maturity securities

 

$

3,719

 

 

$

3,158

 

 

$

18,761

 

 

$

18,383

 
Net Investment Income

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

 

 

Three months ended June 30,

 

 

Six months ended June 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

(In thousands)

 

Fixed-maturity securities (available-for-sale)

 

$

30,618

 

 

$

26,357

 

 

$

60,554

 

 

$

52,163

 

Fixed-maturity security (held-to-maturity)

 

 

15,659

 

 

 

16,608

 

 

 

31,444

 

 

 

33,042

 

Equity securities

 

 

323

 

 

 

380

 

 

 

712

 

 

 

760

 

Policy loans and other invested assets

 

 

543

 

 

 

352

 

 

 

1,005

 

 

 

281

 

Cash, cash equivalents and short-term investments

 

 

6,640

 

 

 

5,840

 

 

 

13,621

 

 

 

10,968

 

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

 

 

2,400

 

 

 

1,636

 

 

 

4,574

 

 

 

3,685

 

  Gross investment income

 

 

56,183

 

 

 

51,173

 

 

 

111,910

 

 

 

100,899

 

Investment expenses

 

 

(2,072

)

 

 

(2,167

)

 

 

(4,208

)

 

 

(4,395

)

   Investment income net of investment expenses

 

 

54,111

 

 

 

49,006

 

 

 

107,702

 

 

 

96,504

 

Interest expense on surplus note

 

 

(15,659

)

 

 

(16,608

)

 

 

(31,444

)

 

 

(33,042

)

    Net investment income

 

$

38,452

 

 

$

32,398

 

 

$

76,258

 

 

$

63,462

 
(1)
Includes $0.2 million and $0.1 million of net gains (losses) recognized for the change in fair value of the deposit asset underlying the 10% coinsurance agreement for the three and six months ended June 30, 2024, respectively. Includes $(0.9) million and $(1.2) million of net gains (losses) recognized for the change in fair value of the deposit asset underlying the 10% coinsurance agreement for the three and six months ended June 30, 2023, 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 June 30,

 

 

Six months ended June 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

(In thousands)

 

Realized investment gains (losses):

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

673

 

 

$

442

 

 

$

680

 

 

$

492

 

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

 

 

(108

)

 

 

(105

)

 

 

(108

)

 

 

(1,140

)

Net realized investment gains (losses):

 

 

565

 

 

 

337

 

 

 

572

 

 

 

(648

)

Other investment gains (losses):

 

 

 

 

 

 

 

 

 

 

 

 

Credit losses impairment of available-for-sale securities

 

 

-

 

 

 

(6

)

 

 

-

 

 

 

(2,167

)

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

 

 

(675

)

 

 

(656

)

 

 

620

 

 

 

(2,130

)

Gains (losses) from bifurcated options

 

 

3

 

 

 

(8

)

 

 

(1

)

 

 

-

 

Gains (losses) on trading securities

 

 

8

 

 

 

5

 

 

 

15

 

 

 

9

 

Other investment gains (losses):

 

 

(664

)

 

 

(665

)

 

 

634

 

 

 

(4,288

)

Investment gains (losses)

 

$

(99

)

 

$

(328

)

 

$

1,206

 

 

$

(4,936

)

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

The proceeds from sales or other redemptions of AFS securities were as follows:

 

 

Three months ended June 30,

 

 

Six months ended June 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

(In thousands)

 

Proceeds from sales or other redemptions

 

$

130,676

 

 

$

151,962

 

 

$

217,094

 

 

$

237,392

 
Schedule of Securities in Unrealized Loss Position The following tables summarize all AFS securities in an unrealized loss position for which an allowance for credit losses has not been recorded as of June 30, 2024 and December 31, 2023, aggregated by major security type and by length of time such securities have continuously been in an unrealized loss position:

 

 

June 30, 2024

 

 

 

Less than 12 months

 

 

12 months or longer

 

 

 

Fair value

 

 

Unrealized losses

 

 

Fair value

 

 

Unrealized losses

 

 

 

(In thousands)

 

Fixed-maturity securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agencies

 

$

1,870

 

 

$

(25

)

 

$

7,710

 

 

$

(455

)

Foreign government

 

 

25,329

 

 

 

(394

)

 

 

111,584

 

 

 

(9,656

)

States and political subdivisions

 

 

9,142

 

 

 

(220

)

 

 

107,243

 

 

 

(14,763

)

Corporates

 

 

307,078

 

 

 

(4,606

)

 

 

1,149,479

 

 

 

(126,386

)

Residential mortgage-backed securities

 

 

35,393

 

 

 

(388

)

 

 

352,139

 

 

 

(69,135

)

Commercial mortgage-backed securities

 

 

7,997

 

 

 

(64

)

 

 

92,915

 

 

 

(12,573

)

Other asset-backed securities

 

 

25,046

 

 

 

(55

)

 

 

132,387

 

 

 

(9,929

)

 Total fixed-maturity securities

 

$

411,855

 

 

$

(5,752

)

 

$

1,953,457

 

 

$

(242,897

)

 

 

 

December 31, 2023

 

 

 

Less than 12 months

 

 

12 months or longer

 

 

 

Fair value

 

 

Unrealized losses

 

 

Fair value

 

 

Unrealized losses

 

 

 

(In thousands)

 

Fixed-maturity securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agencies

 

$

-

 

 

$

-

 

 

$

9,188

 

 

$

(476

)

Foreign government

 

 

17,209

 

 

 

(62

)

 

 

104,827

 

 

 

(8,526

)

States and political subdivisions

 

 

4,883

 

 

 

(46

)

 

 

107,021

 

 

 

(14,635

)

Corporates

 

 

39,783

 

 

 

(907

)

 

 

1,231,694

 

 

 

(119,379

)

Residential mortgage-backed securities

 

 

14,872

 

 

 

(142

)

 

 

360,987

 

 

 

(63,786

)

Commercial mortgage-backed securities

 

 

4,721

 

 

 

(107

)

 

 

97,417

 

 

 

(15,336

)

Other asset-backed securities

 

 

41,417

 

 

 

(159

)

 

 

136,841

 

 

 

(12,103

)

Total fixed-maturity securities

 

$

122,885

 

 

$

(1,423

)

 

$

2,047,975

 

 

$

(234,241

)