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Investments (Tables)

12 Months Ended

Dec. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Summary of Fixed Maturities and Equity Securities Available for Sale by Component

Summaries of fixed maturities available for sale by amortized cost, fair value, and allowance for credit losses at December 31, 2022 and 2021, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) are as follows. Redeemable preferred stock is included within "Corporates, by sector."


	At December 31, 2022
	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value(1)		% of Total Fixed Maturities(2)
Fixed maturities available for sale:
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	394,439	$	—	$	27	$	(38,968)	$	355,498	2
States, municipalities, and political subdivisions	2,791,030		—		24,328		(505,447)		2,309,911		14
Foreign governments	55,164		—		6		(12,706)		42,464		—
Corporates, by sector:
Financial	4,907,794		—		63,126		(504,489)		4,466,431		27
Utilities	1,924,190		—		36,670		(125,713)		1,835,147		11
Energy	1,436,598		—		22,637		(101,923)		1,357,312		8
Other corporate sectors	6,667,043		—		78,903		(738,772)		6,007,174		37
Total corporates	14,935,625		—		201,336		(1,470,897)		13,666,064		83
Collateralized debt obligations	37,098		—		13,266		—		50,364		—
Other asset-backed securities	88,336		—		4		(9,276)		79,064		1
Total fixed maturities	$	18,301,692	$	—	$	238,967	$	(2,037,294)	$	16,503,365	100

(1)Amount reported in the balance sheet.

(2)At fair value.


	At December 31, 2021
	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value(1)		% of Total Fixed Maturities(2)
Fixed maturities available for sale:
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	383,083	$	—	$	64,513	$	(164)	$	447,432	2
States, municipalities, and political subdivisions	2,252,997		—		239,135		(2,907)		2,489,225		12
Foreign governments	59,861		—		900		(5,132)		55,629		—
Corporates, by sector:
Financial	4,569,160		(387)		907,741		(9,349)		5,467,165		26
Utilities	1,931,391		—		490,119		(1,012)		2,420,498		11
Energy	1,587,892		—		346,780		(1,683)		1,932,989		9
Other corporate sectors	6,879,459		—		1,454,464		(13,362)		8,320,561		39
Total corporates	14,967,902		(387)		3,199,104		(25,406)		18,141,213		85
Collateralized debt obligations	36,468		—		27,037		—		63,505		—
Other asset-backed securities	104,998		—		3,715		(430)		108,283		1
Total fixed maturities	$	17,805,309	$	(387)	$	3,534,404	$	(34,039)	$	21,305,287	100

(1)Amount reported in the balance sheet.

(2)At fair value.

Schedule of Fixed Maturities by Contractual Maturity

A schedule of fixed maturities available for sale by contractual maturity date at December 31, 2022, is shown below on an amortized cost basis, net of allowance for credit losses, and on a fair value basis. Actual disposition dates could differ from contractual maturities due to call or prepayment provisions.


	At December 31, 2022
	Amortized Cost, net		Fair Value
Fixed maturities available for sale:
Due in one year or less	$	164,857	$	165,085
Due after one year through five years	1,068,265		1,067,454
Due after five years through ten years	1,670,440		1,664,710
Due after ten years through twenty years	7,785,675		7,349,267
Due after twenty years	7,486,945		6,127,343
Mortgage-backed and asset-backed securities	125,510		129,506
	$	18,301,692	$	16,503,365

Schedule of Analysis of Investment Operations

"Net investment income" for the three years ended December 31, 2022, is summarized as follows:


	Year Ended December 31,
	2022		2021		2020
Fixed maturities available for sale	$	910,284	$	892,421	$	873,352
Policy loans	46,586		45,318		44,801
Other long-term investments(1)	50,556		35,838		26,196
Short-term investments	2,156		24		545
	1,009,582		973,601		944,894
Less investment expense	(22,083)		(21,154)		(17,832)
Net investment income	$	987,499	$	952,447	$	927,062

(1)For the years ended 2022, 2021 and 2020, the investment funds, accounted for under the fair value option method, recorded $40.3 million, $26.7 million, and $15.3 million, respectively, in net investment income.

Schedule of Realized Gains (Losses) on Investments

An analysis of "realized gains (losses)" is as follows:


	Year Ended December 31,
	2022		2021		2020
Realized investment gains (losses):
Fixed maturities available for sale:
Sales and other(1)	$	(32,552)	$	34,916	$	(22,999)
Provision for credit losses	387		2,959		(3,346)
Investment funds—fair value option	(29,353)		22,918		1,045
Other investments	(15,030)		7,840		21,563
Realized gains (losses) from investments	(76,548)		68,633		(3,737)

Realized loss on redemption of debt(2)	—		(9,314)		(634)
	(76,548)		59,319		(4,371)
Applicable tax	16,075		(12,457)		1,955
Realized gains (losses), net of tax	$	(60,473)	$	46,862	$	(2,416)

(1)For the years ended 2022, 2021 and 2020, the Company recorded $147.6 million, $109.2 million, and $219.8 million of exchanges of fixed maturities (noncash transactions) that resulted in $1.9 million, $25.2 million, and $7.9 million, respectively, in realized gains (losses).

(2)Refer to Note 11—Debt for further discussion.

Selected information about sales of fixed maturities available for sale is as follows:


	Year Ended December 31,
	2022		2021		2020
Fixed maturities available for sale:
Proceeds from sales(1)	$	390,392	$	116,656	$	52,681
Gross realized gains	1,296		1,848		2,642
Gross realized losses	(57,996)		(12,101)		(39,153)

(1)There were no unsettled sales in the periods ended December 31, 2022, 2021 and 2020.

Schedule of Unrealized Gain (Loss) on Investments

An analysis of the net change in unrealized investment gains (losses) is as follows:


	Year Ended December 31,
	2022		2021		2020
Change in unrealized investment gains (losses) on:
Fixed maturities available for sale	$	(5,298,692)	$	(519,345)	$	1,528,339

Schedule of Fair Value of Fixed Maturities Measured on a Recurring Basis

The following tables represent the fair value of fixed maturities measured on a recurring basis at December 31, 2022 and 2021:


	Fair Value Measurement at December 31, 2022:
	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Fixed maturities available for sale
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	—		$	355,498		$	—		$	355,498
States, municipalities, and political subdivisions	—			2,309,911			—			2,309,911
Foreign governments	—			42,464			—			42,464
Corporates, by sector:
Financial	—			4,332,495			133,936			4,466,431
Utilities	—			1,723,832			111,315			1,835,147
Energy	—			1,346,212			11,100			1,357,312
Other corporate sectors	—			5,785,442			221,732			6,007,174
Total corporates	—			13,187,981			478,083			13,666,064
Collateralized debt obligations	—			—			50,364			50,364
Other asset-backed securities	—			79,064			—			79,064
Total fixed maturities	$	—		$	15,974,918		$	528,447		$	16,503,365
Percentage of total	—		%	97		%	3		%	100		%


	Fair Value Measurement at December 31, 2021:
	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Fixed maturities available for sale
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	—		$	447,432		$	—		$	447,432
States, municipalities, and political subdivisions	—			2,489,225			—			2,489,225
Foreign governments	—			55,629			—			55,629
Corporates, by sector:
Financial	—			5,303,547			163,618			5,467,165
Utilities	—			2,266,231			154,267			2,420,498
Energy	—			1,919,416			13,573			1,932,989
Other corporate sectors	—			8,010,331			310,230			8,320,561
Total corporates	—			17,499,525			641,688			18,141,213
Collateralized debt obligations	—			—			63,505			63,505
Other asset-backed securities	—			108,283			—			108,283
Total fixed maturities	$	—		$	20,600,094		$	705,193		$	21,305,287
Percentage of total	—		%	97		%	3		%	100		%

The following tables disclose unrealized investment losses by class and major sector of fixed maturities available for sale at December 31, 2022 and December 31, 2021.

Analysis of Gross Unrealized Investment Losses


	At December 31, 2022
	Less than Twelve Months				Twelve Months or Longer				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Fixed maturities available for sale:
Investment grade securities:
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	349,887	$	(38,218)	$	3,424	$	(750)	$	353,311	$	(38,968)
States, municipalities, and political subdivisions	1,767,624		(453,149)		95,124		(52,298)		1,862,748		(505,447)
Foreign governments	6,297		(201)		25,134		(12,505)		31,431		(12,706)
Corporates, by sector:
Financial	2,837,918		(426,132)		109,784		(42,173)		2,947,702		(468,305)
Utilities	1,088,219		(116,272)		21,636		(6,268)		1,109,855		(122,540)
Energy	855,853		(91,755)		—		—		855,853		(91,755)
Other corporate sectors	4,155,986		(665,831)		94,299		(42,344)		4,250,285		(708,175)
Total corporates	8,937,976		(1,299,990)		225,719		(90,785)		9,163,695		(1,390,775)
Collateralized debt obligations	—		—		—		—		—		—
Other asset-backed securities	60,157		(5,223)		7,960		(2,435)		68,117		(7,658)
Total investment grade securities	11,121,941		(1,796,781)		357,361		(158,773)		11,479,302		(1,955,554)

Below investment grade securities:
States, municipalities, and political subdivisions	—		—		—		—		—		—

Corporates, by sector:
Financial	120,377		(18,901)		38,348		(17,283)		158,725		(36,184)
Utilities	27,722		(3,173)		—		—		27,722		(3,173)
Energy	14,480		(2,182)		20,075		(7,986)		34,555		(10,168)
Other corporate sectors	166,159		(25,962)		6,670		(4,635)		172,829		(30,597)
Total corporates	328,738		(50,218)		65,093		(29,904)		393,831		(80,122)
Collateralized debt obligations	—		—		—		—		—		—
Other asset-backed securities	—		—		10,874		(1,618)		10,874		(1,618)
Total below investment grade securities	328,738		(50,218)		75,967		(31,522)		404,705		(81,740)
Total fixed maturities	$	11,450,679	$	(1,846,999)	$	433,328	$	(190,295)	$	11,884,007	$	(2,037,294)

Analysis of Gross Unrealized Investment Losses


	At December 31, 2021
	Less than Twelve Months				Twelve Months or Longer				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Fixed maturities available for sale:
Investment grade securities:
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	118	$	(1)	$	3,867	$	(163)	$	3,985	$	(164)
States, municipalities, and political subdivisions	141,310		(2,824)		2,436		(83)		143,746		(2,907)
Foreign governments	12,567		(561)		23,144		(4,571)		35,711		(5,132)
Corporates, by sector:
Financial	133,654		(1,507)		52,864		(1,932)		186,518		(3,439)
Utilities	25,447		(692)		2,372		(320)		27,819		(1,012)
Energy	6,519		(238)		—		—		6,519		(238)
Other corporate sectors	115,444		(3,566)		40,249		(3,670)		155,693		(7,236)
Total corporates	281,064		(6,003)		95,485		(5,922)		376,549		(11,925)
Collateralized debt obligations	—		—		—		—		—		—
Other asset-backed securities	10,489		(16)		1		—		10,490		(16)
Total investment grade securities	445,548		(9,405)		124,933		(10,739)		570,481		(20,144)

Below investment grade securities:
States, municipalities, and political subdivisions	—		—		—		—		—		—

Corporates, by sector:
Financial	15,695		(272)		56,897		(5,638)		72,592		(5,910)
Utilities	—		—		—		—		—		—
Energy	—		—		26,639		(1,445)		26,639		(1,445)
Other corporate sectors	700		(11)		26,581		(6,115)		27,281		(6,126)
Total corporates	16,395		(283)		110,117		(13,198)		126,512		(13,481)
Collateralized debt obligations	—		—		—		—		—		—
Other asset-backed securities	—		—		13,043		(414)		13,043		(414)
Total below investment grade securities	16,395		(283)		123,160		(13,612)		139,555		(13,895)
Total fixed maturities	$	461,943	$	(9,688)	$	248,093	$	(24,351)	$	710,036	$	(34,039)

Schedule of Fair Value, Assets Measured on Recurring Basis Using Significant Unobservable Inputs

The following tables represent changes in fixed maturities measured at fair value on a recurring basis using significant unobservable inputs (Level 3):


	Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Asset- backed Securities		Collateralized Debt Obligations		Corporates		Total
Balance at January 1, 2020	$	13,177	$	74,104	$	672,128	$	759,409

Included in realized gains/losses	—		—		1,579		1,579
Included in other comprehensive income	(173)		(2,523)		17,082		14,386
Acquisitions(1)	—		—		67,820		67,820
Sales	—		—		—		—
Amortization	—		4,551		12		4,563
Other(2)	(134)		(4,534)		(44,116)		(48,784)
Transfers into Level 3(3)	—		—		—		—
Transfers out of Level 3(3)	—		—		—		—
Balance at December 31, 2020	12,870		71,598		714,505		798,973

Included in realized gains/losses	(82)		(6,787)		3,275		(3,594)
Included in other comprehensive income	63		12,447		(20,818)		(8,308)
Acquisitions(1)	—		—		25,000		25,000
Sales	(12,851)		(13,213)		—		(26,064)
Amortization	—		4,505		9		4,514
Other(2)	—		(5,045)		(80,283)		(85,328)
Transfers into Level 3(3)	—		—		—		—
Transfers out of Level 3(3)	—		—		—		—
Balance at December 31, 2021	—		63,505		641,688		705,193

Included in realized gains/losses	—		—		—		—
Included in other comprehensive income	—		(13,771)		(91,385)		(105,156)
Acquisitions(1)	—		—		—		—
Sales	—		—		—		—
Amortization	—		4,519		7		4,526
Other(2)	—		(3,889)		(72,227)		(76,116)
Transfers into Level 3(3)	—		—		—		—
Transfers out of Level 3(3)	—		—		—		—
Balance at December 31, 2022	$	—	$	50,364	$	478,083	$	528,447

Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period:
	Asset- backed Securities		Collateralized Debt Obligations		Corporates		Total
2020	$	(173)	$	(2,523)	$	17,082	$	14,386
2021	63		12,447		(20,818)		(8,308)
2022	—		(13,771)		(91,385)		(105,156)

(1)Acquisitions of Level 3 investments in each of the years 2020 through 2022 are comprised of private placement fixed maturities and equities.

(2)Includes capitalized interest, foreign exchange adjustments, and principal repayments.

(3)Considered to be transferred at the end of the period.

Schedule of Fair Value Measurement Inputs and Valuation Techniques

The following table represents quantitative information about Level 3 fair value measurements:

Quantitative Information about Level 3 Fair Value Measurements

As of December 31, 2022

Fair Value

Valuation
Techniques

Significant Unobservable
Input

Range

Weighted-

Average(1)

Private placement fixed maturities

395,037

Determination of credit spread

Credit rating

A+ to B-

BBB-

Other corporate bonds

83,046

Discounted Cash Flows

Discount rate

6.35%

Collateralized debt obligations

50,364

Discounted Cash Flows

Discount rate

10.25%

528,447

(1)Unobservable inputs were weighted by the relative fair value of the instruments.

Schedule of Additional Information about Investments in Unrealized Loss Position

The following table discloses information about fixed maturities available for sale in an unrealized loss position.


	Less than Twelve Months	Twelve Months or Longer	Total
Number of issues (CUSIPs) held:
As of December 31, 2022	1,819	157	1,976
As of December 31, 2021	138	42	180

Schedule of Fixed Maturities, Allowance for Credit Loss

A summary of the activity in the allowance for credit losses is as follows. Refer to Note 1 for factors considered in the recording of the allowance for credit losses.


	Year Ended December 31,
	2022		2021
Allowance for credit losses beginning balance	$	387	$	3,346
Additions to allowance for which credit losses were not previously recorded	—		387
Additions (reductions) to allowance for fixed maturities that previously had an allowance	—		—
Reduction of allowance for which the Company intends to sell or more likely than not will be required to sell or sold during the period	(387)		(3,346)
Allowance for credit losses ending balance	$	—	$	387

Schedule of Percentages Of Investments By Major Components At Fair Value

At December 31, 2022, the investment portfolio, at fair value, consisted of the following:


Investment grade fixed maturities:
Corporates	73	%
States, municipalities, and political subdivisions	13
U.S. Government direct, guaranteed, and government-sponsored enterprises	2
Other	1

Below investment grade fixed maturities:
Corporates	2
States, municipalities, and political subdivisions	—
U.S. Government direct, guaranteed, and government-sponsored enterprises	—
Other	—
	91

Other
Policy loans, which are secured by the underlying insurance policy values	3
Other investments	6
	100	%

Schedule Of Industry Concentrations Held In Corporate Portfolio

Below are the ten largest industry concentrations held in the portfolio of corporate fixed maturities at December 31, 2022, based on fair value:


Insurance	16	%
Electric utilities	10
Banks	9
Oil and natural gas pipelines	6
Chemicals	4
Transportation	4
Food	3
Telecommunications	3
Real estate investment trusts	3
Gas utilities	3

Schedule of Other Long-Term Investments

Other long-term investments consist of the following assets:


	December 31,
	2022		2021
Investment funds	$	768,689	$	640,263
Commercial mortgage loan participations	181,305		141,843
Other	26,022		11,819
Total	$	976,016	$	793,925

Schedule of Investment Funds

The following table presents additional information about the Company's investment funds as of December 31, 2022 and December 31, 2021 at fair value:


	December 31,
	Fair Value				Unfunded Commitments
Investment Category	2022		2021		2022		Redemption Term/Notice




Commercial mortgage loans	$	431,405	$	423,776	$	345,780	Fully redeemable and non-redeemable with varying terms.
Opportunistic credit	158,524		178,215		—		Initial 2 year lock on each new investment/semi-annual withdrawals thereafter/full redemption within 36 month period.


Infrastructure	159,534		22,664		20,988		Fully redeemable and non-redeemable with varying terms.


Other	19,226		15,608		120,097
Total investment funds	$	768,689	$	640,263	$	486,865

Summary of Commercial Mortgage Loan Participations

Summaries of commercial mortgage loans at December 31, 2022 and 2021 are as follows:


	2022			2021
	Carrying Value		% of Total	Carrying Value		% of Total
Property type:
Mixed use	$	62,375	34	$	57,996	41
Multi-family	42,232		23	14,872		11
Hospitality	27,796		15	23,186		16
Industrial	27,248		15	17,900		13
Retail	15,342		9	19,811		14
Office	8,101		5	8,905		6

Total recorded investment	183,094		101	142,670		101
Less allowance for credit losses	(1,789)		(1)	(827)		(1)
Carrying value, net of valuation allowance	$	181,305	100	$	141,843	100


	2022			2021
	Carrying Value		% of Total	Carrying Value		% of Total
Geographic location:
California	$	64,477	36	$	67,659	48
Florida	33,182		18	8,213		6
Texas	22,905		13	5,898		4
New York	19,167		11	18,374		13
Washington	14,925		8	—		—
Arizona	9,940		5	—		—
Other	18,498		10	42,526		30
Total recorded investment	183,094		101	142,670		101
Less allowance for credit losses	(1,789)		(1)	(827)		(1)
Carrying value, net of valuation allowance	$	181,305	100	$	141,843	100

Schedule of Commercial Loan Participations, Credit Quality Indicators

The following tables are reflective of the key factors, debt service coverage ratios and loan-to-value ratios (LTVs), that are utilized by management to monitor the performance of the portfolios. The Company only invests in commercial mortgage loans that have a loan-to-value ratio less than 80%. Generally, a higher LTV ratio and a lower debt service coverage ratio can potentially equate to higher risk of loss.


	December 31, 2022
	Recorded Investment
	Debt Service Coverage Ratios(1)
	<1.00x		1.00x—1.20x		>1.20x		Total		% of Total
Loan-to-value ratio(2):
Less than 70%	$	23,984	$	107,099	$	11,900	$	142,983	79
70% to 80%	—		21,904		1,226		23,130		13
81% to 90%	8,226		—		—		8,226		4
Greater than 90%	6,966		—		—		6,966		4
Total	$	39,176	$	129,003	$	13,126	$	181,305	100

(1)Annual net operating income divided by annual mortgage debt service (principal and interest).

(2)Loan balance divided by the fair value of the property. LTVs are generally assessed on an annual basis, or more frequently when a loan is materially underperforming, 30 days delinquent, or in technical default.


	December 31, 2021
	Recorded Investment
	Debt Service Coverage Ratios(1)
	<1.00x		1.00x—1.20x		>1.20x		Total		% of Total
Loan-to-value ratio(2):
Less than 70%	$	13,650	$	80,672	$	—	$	94,322	67
70% to 80%	6,255		19,780		—		26,035		18
81% to 90%	8,166		—		—		8,166		6
Greater than 90%	8,754		4,566		—		13,320		9
Total	$	36,825	$	105,018	$	—	$	141,843	100

(1)Annual net operating income divided by annual mortgage debt service (principal and interest).

Schedule of Commercial Loan Participations, Allowance for Credit Loss


	Year Ended December 31,
	2022		2021
Allowance for credit losses beginning balance	$	827	$	3,505

Provision (reversal) for credit losses	962		(2,678)

Allowance for credit losses ending balance	$	1,789	$	827