XML 30 R20.htm IDEA: XBRL DOCUMENT v3.22.2.2
Investments (Tables)
 6 Months Ended
Jun. 30, 2022
Investments, Debt and Equity Securities [Abstract]  
Schedule of Fixed Maturities

The amortized cost, gross unrealized gains, gross unrealized losses, fair value, and OTTI loss included in accumulated other comprehensive income (AOCI) of fixed maturities available-for-sale are as follows:

 

 

 

June 30, 2022

 

Fixed maturities

 

Amortized
Cost

 

 

Unrealized
Gains

 

 

Unrealized
Losses

 

 

Fair
Value

 

 

OTTI
Losses

 

U.S. government and agencies

 

$

9,292

 

 

$

757

 

 

$

(226

)

 

$

9,823

 

 

$

—

 

U.S. agency mortgage-backed

 

 

8,322

 

 

 

124

 

 

 

(375

)

 

 

8,071

 

 

 

—

 

State and political subdivisions

 

 

57,360

 

 

 

233

 

 

 

(7,888

)

 

 

49,705

 

 

 

—

 

Corporate and miscellaneous

 

 

169,939

 

 

 

3,112

 

 

 

(11,716

)

 

 

161,335

 

 

 

—

 

Foreign government

 

 

130

 

 

 

6

 

 

-

 

 

 

136

 

 

 

—

 

Residential mortgage-backed

 

 

5,584

 

 

 

132

 

 

 

(197

)

 

 

5,519

 

 

 

(431

)

Commercial mortgage-backed

 

 

20,206

 

 

 

—

 

 

 

(1,032

)

 

 

19,174

 

 

 

—

 

Asset-backed

 

 

47,273

 

 

 

13

 

 

 

(2,671

)

 

 

44,615

 

 

 

—

 

Total fixed maturities

 

$

318,106

 

 

$

4,377

 

 

$

(24,105

)

 

$

298,378

 

 

$

(431

)

 

 

 

December 31, 2021

 

Fixed maturities

 

Amortized
Cost

 

 

Unrealized
Gains

 

 

Unrealized
Losses

 

 

Fair
Value

 

 

OTTI
Losses

 

U.S. government and agencies

 

$

9,825

 

 

$

2,076

 

 

$

—

 

 

$

11,901

 

 

$

—

 

U.S. agency mortgage-backed

 

 

12,889

 

 

 

795

 

 

 

(5

)

 

 

13,679

 

 

 

—

 

State and political subdivisions

 

 

58,170

 

 

 

2,696

 

 

 

(396

)

 

 

60,470

 

 

 

—

 

Corporate and miscellaneous

 

 

164,823

 

 

 

20,023

 

 

 

(348

)

 

 

184,498

 

 

 

—

 

Foreign government

 

 

378

 

 

 

36

 

 

 

—

 

 

 

414

 

 

 

—

 

Residential mortgage-backed

 

 

5,880

 

 

 

222

 

 

 

(33

)

 

 

6,069

 

 

 

(412

)

Commercial mortgage-backed

 

 

20,003

 

 

 

848

 

 

 

(36

)

 

 

20,815

 

 

 

—

 

Asset-backed

 

 

54,623

 

 

 

330

 

 

 

(416

)

 

 

54,537

 

 

 

—

 

Total fixed maturities

 

$

326,591

 

 

$

27,026

 

 

$

(1,234

)

 

$

352,383

 

 

$

(412

)
Schedule of Amortized Cost and Fair Value of Fixed Maturities Available-for-sale by Contractual Maturity The amortized cost and fair value of fixed maturities available-for-sale by contractual maturity, are presented in the following table:

 

 

 

June 30, 2022

 

 

 

Amortized
Cost

 

 

Fair
Value

 

Due in one year or less

 

$

6,317

 

 

$

6,340

 

Due after one year through five years

 

 

29,203

 

 

 

28,652

 

Due after five years through ten years

 

 

72,210

 

 

 

69,547

 

Due after ten years

 

 

128,990

 

 

 

116,461

 

Securities not due at a single maturity date — primarily mortgage and
   asset-backed

 

 

81,386

 

 

 

77,378

 

Total fixed maturities

 

$

318,106

 

 

$

298,378

 
Schedule of Mortgage Loan Holdings Diversified by Geography and Property Mortgage loan holdings are diversified by geography and property type as follows:

 

 

 

June 30, 2022

 

 

December 31, 2021

 

 

 

Gross Carrying
Value

 

 

% of Total

 

 

Gross Carrying
Value

 

 

% of Total

 

Property Type:

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

$

14,855

 

 

 

31.1

%

 

$

15,257

 

 

 

32.1

%

Office

 

 

11,525

 

 

 

24.2

%

 

 

11,627

 

 

 

24.4

%

Industrial

 

 

8,848

 

 

 

18.6

%

 

 

8,234

 

 

 

17.3

%

Mixed use

 

 

5,367

 

 

 

11.3

%

 

 

5,327

 

 

 

11.2

%

Apartments

 

 

2,999

 

 

 

6.3

%

 

 

2,880

 

 

 

6.1

%

Medical office

 

 

3,120

 

 

 

6.5

%

 

 

3,078

 

 

 

6.5

%

Other

 

 

930

 

 

 

2.0

%

 

 

1,153

 

 

 

2.4

%

Gross carrying value of mortgage loans

 

 

47,644

 

 

 

100.0

%

 

 

47,556

 

 

 

100.0

%

Valuation allowance

 

 

(97

)

 

 

 

 

 

(69

)

 

 

 

Net carrying value of mortgage loans

 

$

47,547

 

 

 

 

 

$

47,487

 

 

 

 

 

 

 

June 30, 2022

 

 

December 31, 2021

 

 

 

Gross Carrying
Value

 

 

% of Total

 

 

Gross Carrying
Value

 

 

% of Total

 

U.S. Region:

 

 

 

 

 

 

 

 

 

 

 

 

West South Central

 

$

11,797

 

 

 

24.9

%

 

$

12,017

 

 

 

25.3

%

East North Central

 

 

12,931

 

 

 

27.1

%

 

 

12,439

 

 

 

26.3

%

South Atlantic

 

 

9,590

 

 

 

20.1

%

 

 

9,337

 

 

 

19.6

%

West North Central

 

 

3,334

 

 

 

7.0

%

 

 

3,065

 

 

 

6.4

%

Mountain

 

 

3,044

 

 

 

6.4

%

 

 

3,393

 

 

 

7.1

%

Middle Atlantic

 

 

2,352

 

 

 

4.9

%

 

 

2,392

 

 

 

5.0

%

East South Central

 

 

3,594

 

 

 

7.5

%

 

 

3,445

 

 

 

7.2

%

New England

 

 

77

 

 

 

0.2

%

 

 

82

 

 

 

0.2

%

Pacific

 

 

925

 

 

 

1.9

%

 

 

1,386

 

 

 

2.9

%

Gross carrying value of mortgage loans

 

 

47,644

 

 

 

100.0

%

 

 

47,556

 

 

 

100.0

%

Valuation allowance

 

 

(97

)

 

 

 

 

 

(69

)

 

 

 

Net carrying value of mortgage loans

 

$

47,547

 

 

 

 

 

$

47,487

 

 

 

 
Schedule of Changes in Valuation Allowance for Commercial Mortgage Loans

The changes in the valuation allowance for commercial mortgage loans were as follows:

 

 

 

Six Months Ended June 30, 2022

 

 

Year Ended December 31, 2021

 

Beginning balance

 

$

69

 

 

$

141

 

Net (decrease) increase in valuation allowance

 

 

28

 

 

 

(72

)

Ending balance

 

$

97

 

 

$

69

 
Schedule of Net Investment Income

The sources of net investment income are as follows:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Income from:

 

 

 

 

 

 

 

 

 

 

 

 

Fixed maturities

 

$

3,481

 

 

$

3,066

 

 

$

6,623

 

 

$

5,980

 

Policyholder loans

 

 

94

 

 

 

35

 

 

 

182

 

 

 

127

 

Mortgage loans

 

 

568

 

 

 

796

 

 

 

1,236

 

 

 

1,422

 

Cash, cash equivalents and restricted cash

 

 

2

 

 

 

1

 

 

 

2

 

 

 

5

 

Dividends on equity securities

 

 

—

 

 

 

89

 

 

 

—

 

 

 

179

 

Gross investment income

 

 

4,145

 

 

 

3,987

 

 

 

8,043

 

 

 

7,713

 

Investment expenses

 

 

(347

)

 

 

(377

)

 

 

(779

)

 

 

(849

)

Net investment income

 

$

3,798

 

 

$

3,610

 

 

$

7,264

 

 

$

6,864

 
Schedule of Net Investment Gains (Losses)

The sources of net investment gains (losses) are as follows:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Investment gains (losses) from sales:

 

 

 

 

 

 

 

 

 

 

 

 

Fixed maturities

 

$

(185

)

 

$

228

 

 

$

(131

)

 

$

488

 

Mortgage loans

 

 

(16

)

 

 

48

 

 

 

26

 

 

 

53

 

Investment expenses

 

 

—

 

 

 

(7

)

 

 

—

 

 

 

(19

)

Gains (losses) from sales

 

 

(201

)

 

 

269

 

 

 

(105

)

 

 

522

 

Valuation change of Other invested assets - appreciation (decline):

 

 

312

 

 

 

281

 

 

 

1,867

 

 

 

889

 

Valuation change of Equity securities - appreciation (decline):

 

 

—

 

 

 

747

 

 

 

—

 

 

 

1,402

 

Total net gains (losses) on investments

 

$

111

 

 

$

1,297

 

 

$

1,762

 

 

$

2,813

 
Rollforward of Cumulative Credit Losses on Fixed Maturities

A roll-forward of the cumulative credit losses on fixed maturities are as follows:

 

 

 

June 30,

 

 

December 31,

 

 

 

2022

 

 

2021

 

Beginning balance of credit losses on fixed maturities

 

$

837

 

 

$

833

 

Additional credit losses for OTTI

 

 

103

 

 

 

4

 

Reduction of credit losses related to securities sold during period

 

 

(16

)

 

 

—

 

Ending balance of credit losses on fixed maturities

 

$

924

 

 

$

837

 
Fair Value and Gross Unrealized Losses for Fixed Maturities Available-for-sale in Continuous Gross Unrealized Loss Position

The Company’s fair value and gross unrealized losses for fixed maturities available-for-sale, aggregated by investment category and length of time that individual securities have been in a continuous gross unrealized loss position are as follows:

 

 

 

12 months or less

 

 

Longer than 12 months

 

 

Total

 

June 30, 2022

 

Estimated
Fair Value

 

 

Gross
Unrealized
Losses

 

 

Estimated
Fair Value

 

 

Gross
Unrealized
Losses

 

 

Estimated
Fair Value

 

 

Gross
Unrealized
Losses

 

Fixed maturities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agencies

 

$

2,998

 

 

$

(226

)

 

$

—

 

 

$

—

 

 

$

2,998

 

 

$

(226

)

U.S. agency mortgage-backed

 

 

5,697

 

 

 

(362

)

 

 

89

 

 

 

(13

)

 

 

5,786

 

 

 

(375

)

State and political subdivisions

 

 

40,539

 

 

 

(7,690

)

 

 

842

 

 

 

(198

)

 

 

41,381

 

 

 

(7,888

)

Corporate and miscellaneous

 

 

95,370

 

 

 

(11,257

)

 

 

1,386

 

 

 

(459

)

 

 

96,756

 

 

 

(11,716

)

Residential mortgage-backed

 

 

3,548

 

 

 

(138

)

 

 

630

 

 

 

(59

)

 

 

4,178

 

 

 

(197

)

Commercial mortgage-backed

 

 

19,075

 

 

 

(1,030

)

 

 

98

 

 

 

(2

)

 

 

19,173

 

 

 

(1,032

)

Asset-backed

 

 

35,779

 

 

 

(2,203

)

 

 

6,665

 

 

 

(468

)

 

 

42,444

 

 

 

(2,671

)

Total fixed maturities

 

$

203,006

 

 

$

(22,906

)

 

$

9,710

 

 

$

(1,199

)

 

$

212,716

 

 

$

(24,105

)

 

 

 

12 months or less

 

 

Longer than 12 months

 

 

Total

 

December 31, 2021

 

Estimated
Fair Value

 

 

Gross
Unrealized
Losses

 

 

Estimated
Fair Value

 

 

Gross
Unrealized
Losses

 

 

Estimated
Fair Value

 

 

Gross
Unrealized
Losses

 

Fixed maturities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. agency mortgage-backed

 

$

294

 

 

$

(5

)

 

$

11

 

 

$

—

 

 

$

305

 

 

$

(5

)

State and political subdivisions

 

 

20,439

 

 

 

(377

)

 

 

231

 

 

 

(19

)

 

 

20,670

 

 

 

(396

)

Corporate and miscellaneous

 

 

11,913

 

 

 

(312

)

 

 

727

 

 

 

(36

)

 

 

12,640

 

 

 

(348

)

Foreign Government

 

 

247

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

247

 

 

 

—

 

Residential mortgage-backed

 

 

1,983

 

 

 

(13

)

 

 

427

 

 

 

(20

)

 

 

2,410

 

 

 

(33

)

Commercial mortgage-backed

 

 

3,870

 

 

 

(36

)

 

 

—

 

 

 

—

 

 

 

3,870

 

 

 

(36

)

Asset-backed

 

 

29,487

 

 

 

(315

)

 

 

8,798

 

 

 

(101

)

 

 

38,285

 

 

 

(416

)

Total fixed maturities

 

$

68,233

 

 

$

(1,058

)

 

$

10,194

 

 

$

(176

)

 

$

78,427

 

 

$

(1,234

)
Schedule of Number of Fixed Maturities in Unrealized Loss Position and Percentage Investment Grade

Information and concentrations related to fixed maturities in an unrealized loss position are included below. The tables below include fixed maturities and number of securities in an unrealized loss position for greater than and less than 12 months and the percentage that were investment grade at June 30, 2022.

 

 

Fair Value with Securities with Unrealized Losses 12 months or less

 

 

 

Total

 

 

Impairment is
Less than
10% of
Amortized
Cost

 

 

Impairment
is Between
10% and
20% of
Amortized
Cost

 

 

Impairment
is Greater
than 20% of
Amortized
Cost

 

 

Percent
Investment
Grade

 

Fixed maturities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agencies

 

$

2,998

 

 

$

2,998

 

 

$

—

 

 

$

—

 

 

 

100

%

U.S. agency mortgage-backed

 

 

5,697

 

 

 

5,223

 

 

 

474

 

 

 

—

 

 

 

100

%

State and political subdivisions

 

 

40,539

 

 

 

8,811

 

 

 

20,140

 

 

 

11,588

 

 

 

99

%

Corporate and miscellaneous

 

 

95,370

 

 

 

48,090

 

 

 

38,575

 

 

 

8,705

 

 

 

62

%

Residential mortgage-backed

 

 

3,548

 

 

 

3,260

 

 

 

288

 

 

 

—

 

 

 

89

%

Commercial mortgage-backed

 

 

19,075

 

 

 

18,543

 

 

 

532

 

 

 

—

 

 

 

96

%

Asset-backed

 

 

35,779

 

 

 

29,123

 

 

 

6,577

 

 

 

79

 

 

 

86

%

Total fixed maturities

 

$

203,006

 

 

$

116,048

 

 

$

66,586

 

 

$

20,372

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total number of fixed maturities

 

707

 

 

 

345

 

 

 

260

 

 

 

102

 

 

 

 

 

 

Fair Value with Securities with Unrealized Losses greater than 12 months

 

 

 

Total

 

 

Impairment is
Less than
10% of
Amortized
Cost

 

 

Impairment
is Between
10% and
20% of
Amortized
Cost

 

 

Impairment
is Greater
than 20% of
Amortized
Cost

 

 

Percent
Investment
Grade

 

Fixed maturities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. agency mortgage-backed

 

$

89

 

 

$

10

 

 

$

79

 

 

$

—

 

 

 

100

%

State and political subdivisions

 

 

842

 

 

 

—

 

 

 

455

 

 

 

387

 

 

 

100

%

Corporate and miscellaneous

 

 

1,386

 

 

 

—

 

 

 

418

 

 

 

968

 

 

 

80

%

Residential mortgage-backed

 

 

630

 

 

 

505

 

 

 

26

 

 

 

99

 

 

 

78

%

Commercial mortgage-backed

 

 

6,763

 

 

 

5,216

 

 

 

1,414

 

 

 

133

 

 

 

75

%

Total fixed maturities

 

$

9,710

 

 

$

5,731

 

 

$

2,392

 

 

$

1,587

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total number of fixed maturities

 

44

 

 

 

18

 

 

 

9

 

 

 

17