XML 38 R27.htm IDEA: XBRL DOCUMENT v3.20.2
Investments (Tables)
 6 Months Ended
Jun. 30, 2020
Investments, Debt and Equity Securities [Abstract]  
Realized investment gains and losses, excluding impairment losses The table below presents realized gains and losses, excluding impairment losses, for the periods indicated.
Three Months Ended June 30,Six Months Ended June 30,
 2020201920202019
 (In thousands)
Available for sale debt securities:    
Realized gains on disposal$1,730  1,168  2,491  2,351  
Realized losses on disposal—  —  —  (84) 
Held to maturity debt securities:
Realized gains on disposal1,395  924  4,119  951  
Realized losses on disposal—  —  —  —  
Equity securities realized gains (losses)—  —  —  —  
Real estate gains (losses)—  3,385  —  6,888  
Mortgage loans write-downs—  —  —  —  
Other—  —  —  —  
Totals$3,125  5,477  6,610  10,106  
Schedule of held-to-maturity securities
The table below presents amortized costs and fair values of debt securities held to maturity at June 30, 2020.

 Debt Securities Held to Maturity
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value		Allowance for Credit Losses
 (In thousands)
U.S. agencies$81,855  3,501  —  85,356  (4) 
U.S. Treasury3,792  190  —  3,982  —  
States and political subdivisions401,264  23,915  (57) 425,122  (65) 
Foreign governments1,133  154  —  1,287  —  
Public utilities854,139  64,981  —  919,120  (879) 
Corporate4,559,466  378,165  (7,068) 4,930,563  (3,992) 
Commercial mortgage-backed3,024  52  —  3,076  —  
Residential mortgage-backed996,802  65,045  —  1,061,847  —  
Asset-backed2,307  42  —  2,349  —  
Totals$6,903,782  536,045  (7,125) 7,432,702  (4,940) 
The table below presents amortized costs and fair values of debt securities held to maturity at December 31, 2019.

 Debt Securities Held to Maturity
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
 (In thousands)
U.S. agencies$100,910  1,686  —  102,596  
U.S. Treasury3,782  140  —  3,922  
States and political subdivisions431,433  19,440  (84) 450,789  
Foreign governments1,144  55  —  1,199  
Public utilities888,444  36,638  (83) 924,999  
Corporate4,607,826  212,281  (718) 4,819,389  
Commercial mortgage-backed3,032  52  —  3,084  
Residential mortgage-backed1,066,899  32,706  (716) 1,098,889  
Asset-backed2,775  62  (1) 2,836  
Totals$7,106,245  303,060  (1,602) 7,407,703  
Schedule of debt securities, available-for-sale securities
The table below presents amortized costs and fair values of debt securities available for sale at June 30, 2020.

 Debt Securities Available for Sale
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value		Allowance for Credit Losses
 (In thousands)
States and political subdivisions$89,288  7,192  (5) 96,475  —  
Foreign governments9,988  312  —  10,300  —  
Public utilities64,407  4,915  —  69,322  —  
Corporate2,905,567  218,647  (26,288) 3,097,926  —  
Commercial mortgage-backed27,137  613  (319) 27,431  —  
Residential mortgage-backed11,381  1,319  (159) 12,541  —  
Asset-backed58,438  1,341  (661) 59,118  —  
Totals$3,166,206  234,339  (27,432) 3,373,113  —  
The table below presents amortized costs and fair values of debt securities available for sale at December 31, 2019.

 Debt Securities Available for Sale
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
 (In thousands)
States and political subdivisions$98,037  4,495  (3) 102,529  
Foreign governments9,983  203  —  10,186  
Public utilities67,895  3,476  —  71,371  
Corporate2,921,431  141,705  (2,479) 3,060,657  
Commercial mortgage-backed28,871  1,071  —  29,942  
Residential mortgage-backed12,815  1,077  (117) 13,775  
Asset-backed67,088  1,397  —  68,485  
Totals$3,206,120  153,424  (2,599) 3,356,945  
Schedule of gross unrealized losses and fair values of held-to-maturity investments, continuous unrealized loss position
The following table shows the gross unrealized losses and fair values of the Company's held to maturity debt securities by investment category and length of time the individual securities have been in a continuous unrealized loss position at June 30, 2020.
 Debt Securities Held to Maturity
 Less than 12 Months12 Months or GreaterTotal
Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
 (In thousands)
States and political subdivisions$—  —  1,749  (57) 1,749  (57) 
Public utilities—  —  —  —  —  —  
Corporate157,752  (7,068) —  —  157,752  (7,068) 
Commercial mortgage-backed—  —  —  —  —  —  
Residential mortgage-backed—  —  —  —  —  —  
Asset-backed—  —  —  —  —  —  
Totals$157,752  (7,068) 1,749  (57) 159,501  (7,125) 
The following table shows the gross unrealized losses and fair values of the Company's held to maturity debt securities by investment category and length of time the individual securities have been in a continuous unrealized loss position at December 31, 2019.

 Debt Securities Held to Maturity
 Less than 12 Months12 Months or GreaterTotal
Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
 (In thousands)
States and political subdivisions$5,013  (33) 1,712  (51) 6,725  (84) 
Public utilities2,345  (83) —  —  2,345  (83) 
Corporate31,419  (337) 17,191  (381) 48,610  (718) 
Residential mortgage-backed25,859  (63) 43,498  (653) 69,357  (716) 
Asset-backed1,349  (1) —  —  1,349  (1) 
Totals$65,985  (517) 62,401  (1,085) 128,386  (1,602) 
Schedule of gross unrealized losses and fair values of debt securities, available-for-sale investments, continuous unrealized loss position
The following table shows the gross unrealized losses and fair values of the Company's available for sale debt securities by investment category and length of time the individual securities have been in a continuous unrealized loss position at June 30, 2020.

 Debt Securities Available for Sale
 Less than 12 Months12 Months or GreaterTotal
Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
 (In thousands)
States and political subdivisions$558  (4) 464  (1) 1,022  (5) 
Public utilities—  —  —  —  —  —  
Corporate217,451  (23,582) 28,249  (2,706) 245,700  (26,288) 
Commercial mortgage-backed8,772  (319) —  —  8,772  (319) 
Residential mortgage-backed—  —  594  (159) 594  (159) 
Asset-backed22,656  (661) —  —  22,656  (661) 
Totals$249,437  (24,566) 29,307  (2,866) 278,744  (27,432) 
The following table shows the gross unrealized losses and fair values of the Company's available for sale debt securities by investment category and length of time that the individual securities have been in a continuous unrealized loss position at December 31, 2019.

 Debt Securities Available for Sale
 Less than 12 Months12 Months or GreaterTotal
Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
 (In thousands)
States and political subdivisions$470  (3) —  —  470  (3) 
Public utilities—  —  —  —  —  —  
Corporate40,080  (105) 28,582  (2,374) 68,662  (2,479) 
Residential mortgage-backed—  —  710  (117) 710  (117) 
Totals$40,550  (108) 29,292  (2,491) 69,842  (2,599) 
Investments classified by contractual maturity date
The amortized cost and fair value of investments in debt securities at June 30, 2020, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

 Debt Securities Available for SaleDebt Securities Held to Maturity
 Amortized CostFair ValueAmortized CostFair Value
 (In thousands)
Due in 1 year or less$168,818  171,286  581,153  590,157  
Due after 1 year through 5 years1,370,814  1,447,182  3,018,245  3,203,154  
Due after 5 years through 10 years1,231,850  1,321,137  1,587,587  1,763,367  
Due after 10 years297,768  334,418  714,664  808,752  
 3,069,250  3,274,023  5,901,649  6,365,430  
Mortgage and asset-backed securities96,956  99,090  1,002,133  1,067,272  
Totals before allowance for credit losses3,166,206  3,373,113  6,903,782  7,432,702  
Allowance for credit losses—  —  (4,940) —  
Totals$3,166,206  3,373,113  6,898,842  7,432,702  
Allowance for debt securities held to maturity The following table presents the allowance for credit losses for the three and six months ended June 30, 2020 and 2019.
Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
 Debt Securities Held to MaturityDebt Securities Available for SaleDebt Securities Held to MaturityDebt Securities Available for Sale
 (In thousands)
Balance, beginning of period$6,039  —  —  —  
Provision January 1, 2020 for adoption of new accounting guidance—  —  3,334  —  
(Releases)/provision during period(1,099) —  1,606  —  
 
Balance, end of period$4,940  —  4,940  —  
In the table below, held to maturity securities and their corresponding allowance for credit losses are represented according to credit ratings by nationally recognized statistical rating organizations.

Debt Securities Held to Maturity
Amortized CostAllowance for Credit LossesCarrying Value
(In thousands)
 AAA $93,438  —  93,438  
 AA 1,739,557  (56) 1,739,501  
 A 2,234,460  (985) 2,233,475  
 BBB 2,733,811  (3,580) 2,730,231  
 BB and other below investment 102,516  (319) 102,197  
 Bonds Total $6,903,782  (4,940) 6,898,842  
Allowance for debt securities available for sale The following table presents the allowance for credit losses for the three and six months ended June 30, 2020 and 2019.
Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
 Debt Securities Held to MaturityDebt Securities Available for SaleDebt Securities Held to MaturityDebt Securities Available for Sale
 (In thousands)
Balance, beginning of period$6,039  —  —  —  
Provision January 1, 2020 for adoption of new accounting guidance—  —  3,334  —  
(Releases)/provision during period(1,099) —  1,606  —  
 
Balance, end of period$4,940  —  4,940  —  
Schedule of mortgage loans by loan-to-value ratio
The following table represents the mortgage loan portfolio by loan-to-value ratio.

June 30, 2020December 31, 2019
Amount%Amount%
(In thousands)(In thousands)
Mortgage Loans by Loan-to-Value Ratio (1):
Less than 50%$52,852  19.2  $52,778  19.3  
50% to 60%50,261  18.2  56,929  20.8  
60% to 70%126,960  46.0  117,377  43.0  
70% to 80%45,855  16.6  46,013  16.9  
80% to 90%—  —  —  —  
Greater than 90%—  —  —  —  
Gross balance275,928  100.0  273,097  100.0  
Allowance for credit losses(2,227) (0.8) (675) (0.2) 
Totals$273,701  99.2  $272,422  99.8  

(1) Loan-to-Value Ratio is determined using the most recent appraised value. Appraisals are required at the time of funding and may be updated if a material change occurs from the original loan agreement.
Schedule of allowance for mortgage loans
The following table represents the mortgage loan allowance for credit losses.
Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
 (In thousands)
Balance, beginning of the period$1,885  675  675  675  
Provision January 1, 2020 for adoption of new accounting guidance—  —  504  —  
Provision during the period342  —  1,048  —  
Releases—  —  —  —  
Total ending allowance for credit losses$2,227  675  2,227  675