Investments (Tables)

6 Months Ended

Jun. 30, 2023

Investments

Schedule of Available for Sale Investments

			Allowance		Gross		Gross
	Amortized		for Credit		Unrealized		Unrealized		Estimated
(In thousands)	Cost		Losses		Gains		Losses		Fair Value
June 30, 2023:
Fixed maturities:
Bonds:
U.S. government obligations	$	1,451	$	-	$	268	$	(68)	$	1,651
Mortgage-backed securities		458,248		(1,035)		1,478		(32,477)		426,214
Asset-backed securities		44,127		-		76		(3,985)		40,218
Collateralized loan obligations		358,240		(480)		1,591		(20,485)		338,866
States and political subdivisions-general obligations		128		-		-		(3)		125
States and political subdivisions-special revenue		-		-		-		-		-
Corporate		54,532		(1,297)		358		(4,670)		48,923
Term loans		692,279		(6,104)		1,687		(4,947)		682,915
Total fixed maturities	$	1,609,005	$	(8,916)	$	5,458	$	(66,635)	$	1,538,912
Mortgage loans on real estate, held for investment		354,401		(1,493)		-		-		352,908
Derivatives		34,639		-		9,870		(7,648)		36,861
Equity securities		5,592		-		-		(448)		5,144
Other invested assets		107,149		(1,343)		2,285		(189)		107,902
Preferred stock		38,026		-		1,357		(5,578)		33,805
Deposits and notes receivable		11,012		-		-		-		11,012
Policy loans		55		-		-		-		55
Total investments	$	2,159,879	$	(11,752)	$	18,970	$	(80,498)	$	2,086,599
December 31, 2022:
Fixed maturities:
Bonds:
U.S. government obligations	$	1,343	$	-	$	-	$	(81)	$	1,262
Mortgage-backed securities		316,105		-		469		(22,508)		294,066
Asset-backed securities		34,728		-		17		(3,989)		30,756
Collateralized loan obligations		308,871		-		726		(21,924)		287,673
States and political subdivisions-general obligations		104		-		-		(3)		101
States and political subdivisions-special revenue		228		-		-		(23)		205
Corporate		46,700		-		415		(5,515)		41,600
Term loans		561,656		-		1,923		(4,607)		558,972
Total fixed maturities	$	1,269,735	$	-	$	3,550	$	(58,650)	$	1,214,635
Mortgage loans on real estate, held for investment		227,047		-		-		-		227,047
Derivatives		30,239		-		2,694		(16,999)		15,934
Equity securities		5,592		-		-		(481)		5,111
Other invested assets		108,979		-		3,667		(215)		112,431
Preferred stock		35,644		-		1,757		(5,986)		31,415
Deposits and notes receivable		8,359		-		-		-		8,359
Policy loans		25		-		-		-		25
Total investments	$	1,685,620	$	-	$	11,668	$	(82,331)	$	1,614,957

Schedule of allowance for credit losses on investments

(In Thousands)		Balance December 31, 2022	Additional Allowance Recognized Due to Adoption of Accounting Guidance		Credit Loss Expense for the Current Period		Balance June 30, 2023
Fixed maturities
Bonds:
Mortgage-backed securities	$	-	$	3,564	$	(2,529)	$	1,035
Corporate		-		-		1,297		1,297
Asset-backed securities		-		273		(273)		-
Collateralized loan obligations		-		588		(108)		480
Term loans		-		8,518		(2,414)		6,104
Mortgage loans on real estate, held for investment		-		2,024		(531)		1,493
Other invested asset		-		1,703		(360)		1,343
Total allowance	$	-	$	16,670	$	(4,918)	$	11,752

(In Thousands)		Balance March 31, 2023	Additional Allowance Recognized Due to Adoption of Accounting Guidance		Credit Loss Expense for the Current Period		Balance June 30, 2023
Fixed maturities
Bonds:
Mortgage-backed securities	$	3,592	$	-	$	(2,557)	$	1,035
Corporate		-		-		1,297		1,297
Asset-backed securities		245		-		(245)		-
Collateralized loan obligations		610		-		(130)		480
Term loans		5,867		-		237		6,104
Mortgage loans on real estate, held for investment		2,709		-		(1,216)		1,493
Other invested asset		1,173		-		170		1,343
Total allowance	$	14,196	$	-	$	(2,444)	$	11,752

Schedule of credit ratings of fixed maturity securities

	June 30, 2023				December 31, 2022
	Carrying				Carrying
(In thousands)	Value		Percent		Value		Percent
AAA and U.S. Government	$	200,014	13.0	%	$	124,183	10.2	%
AA		29,185	1.9			815	0.1
A		420,690	27.3			371,371	30.6
BBB		752,652	48.9			619,516	51.0
Total investment grade		1,402,541	91.1			1,115,885	91.9
BB and below		136,371	8.9			98,750	8.1
Total	$	1,538,912	100.0	%	$	1,214,635	100.0	%

Schedule of Unrealized Loss of Securities

	June 30, 2023						December 31, 2022
			Gross		Number				Gross		Number
	Estimated		Unrealized		of		Estimated		Unrealized		of
(In thousands)	Fair Value		Loss		Securities(1)		Fair Value		Loss		Securities(1)
Fixed maturities:
Less than 12 months:
U.S. government obligations	$	-	$	-		-	$	1,135	$	(70)		13
Mortgage-backed securities		233,146		(12,202)		93		233,624		(18,464)		89
Asset-backed securities		14,234		(1,386)		10		24,552		(3,278)		23
Collateralized loan obligations		76,097		(2,786)		52		203,549		(16,730)		252
States and political subdivisions-general obligations		125		(3)		2		101		(3)		1
States and political subdivisions-special revenue		-		-		-		47		(2)		3
Corporate		17,722		(1,010)		16		37,286		(5,426)		64
Term loans		682,545		(4,947)		4		558,337		(4,607)		36
Greater than 12 months:
U.S. government obligations		1,146		(68)		9		126		(11)		5
Asset-backed securities		22,814		(2,599)		23		5,321		(711)		7
Collateralized loan obligations		162,126		(17,699)		240		37,814		(5,194)		47
States and political subdivisions-special revenue		-		-		-		158		(21)		7
Mortgage-backed securities		87,683		(20,275)		57		17,985		(4,044)		14
Corporate		14,888		(3,660)		45		376		(89)		7
Total fixed maturities	$	1,312,526	$	(66,635)		551	$	1,120,411	$	(58,650)		568

(1)We may reflect a fixed maturity in more than one aging category based on various purchase dates.

Schedule of Fixed Maturities

	Amortized		Estimated
(In thousands)	Cost		Fair Value
Due in one year or less	$	100,739	$	99,049
Due after one year through five years		859,855		840,065
Due after five years through ten years		440,299		403,551
Due after ten years through twenty years		175,126		170,768
Due after twenty years		32,986		25,479
	$	1,609,005	$	1,538,912

Schedule of investment in mortgage loans

(In thousands)	June 30, 2023		December 31, 2022
Loan-to-Value Ratio:
0%-59.99%	$	230,140	$	108,281
60%-69.99%		76,970		79,968
70%-79.99%		27,704		33,268
80% or greater		18,094		5,530
Total mortgage loans	$	352,908	$	227,047

Components of net investment income

	Three months ended June 30,				Six months ended June 30,
(In thousands)	2023		2022		2023		2022
Fixed maturities	$	33,841	$	14,173	$	67,902	$	26,837
Mortgage loans		6,298		2,963		12,973		5,383
Other invested assets		2,142		2,501		5,464		3,896
Other interest income		10,248		8,035		18,277		13,579
Gross investment income		52,529		27,672		104,616		49,695
Less: investment expenses		(5,367)		(2,515)		(11,564)		(4,726)
Less: amounts ceded to reinsurers		(22,914)		(14,616)		(49,611)		(28,186)
Investment income, net of expenses	$	24,248	$	10,541	$	43,441	$	16,783

Mortgage-back securities

Investments

Schedule of Mortgage Loan Activity

(In thousands)	June 30, 2023			December 31, 2022
1-4 Family	$	56,335	$	59,579
Hospitality		14,144		12,902
Land		77,961		62,119
Multifamily (5+)		58,711		34,072
Retail		45,681		22,119
Other		101,569		36,256
Allowance for credit loss		(1,493)		-
Total mortgage loans	$	352,908	$	227,047