XML 22 R14.htm IDEA: XBRL DOCUMENT v3.25.0.1
Investments
 9 Months Ended
Dec. 31, 2024
Investments Debt Equity Securities [Abstract]  
Investments

3. Investments

We deposit bonds with insurance regulatory authorities to meet statutory requirements. The adjusted cost of bonds on deposit with insurance regulatory authorities was $20.2 million and $23.1 million as of December 31, 2024 and March 31, 2024, respectively.

Available-for-Sale Investments

Available-for-sale investments as of December 31, 2024 were as follows:

 

 

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Allowance for Expected Credit Losses

 

 

Fair
Value

 

 

 

(Unaudited)

 

 

 

(In thousands)

 

U.S. treasury securities and government obligations

 

$

141,224

 

 

$

371

 

 

$

(6,094

)

 

$

—

 

 

$

135,501

 

U.S. government agency mortgage-backed securities

 

 

86,443

 

 

 

229

 

 

 

(7,944

)

 

 

—

 

 

 

78,728

 

Obligations of states and political subdivisions

 

 

140,373

 

 

 

758

 

 

 

(5,468

)

 

 

—

 

 

 

135,663

 

Corporate securities

 

 

1,879,165

 

 

 

5,643

 

 

 

(111,690

)

 

 

(3,049

)

 

 

1,770,069

 

Mortgage-backed securities

 

 

529,735

 

 

 

2,979

 

 

 

(35,549

)

 

 

—

 

 

 

497,165

 

 

 

$

2,776,940

 

 

$

9,980

 

 

$

(166,745

)

 

$

(3,049

)

 

$

2,617,126

 

 

Available-for-sale investments as of March 31, 2024 were as follows:

 

 

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Allowance for Expected Credit Losses

 

 

Fair
Value

 

 

 

(Unaudited)

 

 

 

(In thousands)

 

U.S. treasury securities and government obligations

 

$

191,070

 

 

$

2,123

 

 

$

(8,921

)

 

$

—

 

 

$

184,272

 

U.S. government agency mortgage-backed securities

 

 

48,067

 

 

 

250

 

 

 

(7,664

)

 

 

—

 

 

 

40,653

 

Obligations of states and political subdivisions

 

 

151,197

 

 

 

918

 

 

 

(7,533

)

 

 

—

 

 

 

144,582

 

Corporate securities

 

 

1,963,249

 

 

 

2,762

 

 

 

(152,799

)

 

 

(1,052

)

 

 

1,812,160

 

Mortgage-backed securities

 

 

306,510

 

 

 

34

 

 

 

(45,707

)

 

 

—

 

 

 

260,837

 

 

 

$

2,660,093

 

 

$

6,087

 

 

$

(222,624

)

 

$

(1,052

)

 

$

2,442,504

 

 

A summary of available-for-sale investments with unrealized losses for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous loss position as of December 31, 2024 and March 31, 2024 were as follows:

 

 

 

December 31, 2024

 

 

 

 

Less than or equal to 1 year

 

 

 

Greater than 1 year

 

 

 

Total

 

 

 

 

Fair Value

 

 

 

Unrealized Losses

 

 

 

Fair Value

 

 

 

Unrealized Losses

 

 

 

Fair Value

 

 

 

Unrealized Losses

 

 

 

 

(Unaudited)

 

 

 

 

(In thousands)

 

U.S. treasury securities and government obligations

 

 

$

—

 

 

 

$

—

 

 

 

$

99,405

 

 

 

$

(6,094

)

 

 

$

99,405

 

 

 

$

(6,094

)

U.S. government agency mortgage-backed securities

 

 

 

37,449

 

 

 

 

(210

)

 

 

 

22,153

 

 

 

 

(7,733

)

 

 

 

59,602

 

 

 

 

(7,943

)

Obligations of states and political subdivisions

 

 

 

23,020

 

 

 

 

(252

)

 

 

 

59,752

 

 

 

 

(5,216

)

 

 

 

82,772

 

 

 

 

(5,468

)

Corporate securities

 

 

 

120,515

 

 

 

 

(330

)

 

 

 

1,314,484

 

 

 

 

(111,361

)

 

 

 

1,434,999

 

 

 

 

(111,691

)

Mortgage-backed securities

 

 

 

64,236

 

 

 

 

(206

)

 

 

 

228,897

 

 

 

 

(35,343

)

 

 

 

293,133

 

 

 

 

(35,549

)

 

 

 

$

245,220

 

 

 

$

(998

)

 

 

$

1,724,691

 

 

 

$

(165,747

)

 

 

$

1,969,911

 

 

 

$

(166,745

)

 

 

 

 

March 31, 2024

 

 

 

 

Less than or equal to 1 year

 

 

 

Greater than 1 year

 

 

 

Total

 

 

 

 

Fair Value

 

 

 

Unrealized Losses

 

 

 

Fair Value

 

 

 

Unrealized Losses

 

 

 

Fair Value

 

 

 

Unrealized Losses

 

 

 

 

(Unaudited)

 

 

 

 

(In thousands)

 

U.S. treasury securities and government obligations

 

 

$

1,888

 

 

 

$

(13

)

 

 

$

103,336

 

 

 

$

(8,908

)

 

 

$

105,224

 

 

 

$

(8,921

)

U.S. government agency mortgage-backed securities

 

 

 

—

 

 

 

 

—

 

 

 

 

23,711

 

 

 

 

(7,664

)

 

 

 

23,711

 

 

 

 

(7,664

)

Obligations of states and political subdivisions

 

 

 

10,492

 

 

 

 

(222

)

 

 

 

80,082

 

 

 

 

(7,311

)

 

 

 

90,574

 

 

 

 

(7,533

)

Corporate securities

 

 

 

132,513

 

 

 

 

(1,258

)

 

 

 

1,495,167

 

 

 

 

(151,541

)

 

 

 

1,627,680

 

 

 

 

(152,799

)

Mortgage-backed securities

 

 

 

3,008

 

 

 

 

(23

)

 

 

 

248,423

 

 

 

 

(45,684

)

 

 

 

251,431

 

 

 

 

(45,707

)

 

 

 

$

147,901

 

 

 

$

(1,516

)

 

 

$

1,950,719

 

 

 

$

(221,108

)

 

 

$

2,098,620

 

 

 

$

(222,624

)

 

Gross proceeds from matured or redeemed securities were $318.6 million and $448.9 million for the first nine months ended December 31, 2024 and December 31, 2023, respectively. Included in the December 31, 2024 and 2023 proceeds were $73.0 million and $225.0 million, respectively, from the Moving and Storage Treasuries that matured. The gross realized gains on these sales totaled $2.3 million and $1.5 million during the first nine months of fiscal 2025 and 2024, respectively. The gross realized losses on these sales totaled $0.5 million and $1.1 million during the first nine months of fiscal 2025 and 2024, respectively.

 

For available-for-sale debt securities in an unrealized loss position, we first assess whether the security is below investment grade. For securities that are below investment grade, we evaluate whether the decline in fair value has resulted from credit losses or other factors such as the interest rate environment. Declines in value due to credit are recognized as an allowance. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse market conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, cumulative default rates based on ratings are used to determine the potential cost of default, by year. The present value of these potential costs is then compared to the amortized cost of the security to determine the credit loss, limited by the amount that the fair value is less than the amortized cost basis.

Declines in fair value that have not been recorded through an allowance for credit losses, such as declines due to changes in market interest rates, are recorded through accumulated other comprehensive income, net of applicable taxes. If we intend to sell a security, or it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis, the security is written down to its fair value and the write down is charged against the allowance for credit losses, with any incremental impairment reported in earnings. Reversals of the allowance for credit losses are permitted and should not exceed the allowance amount initially recognized.

Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. There was a $2.0 million and ($0.4) million net impairment charge recorded in the first nine months ended December 31, 2024 and 2023, respectively.

Expected maturities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

The adjusted cost and fair value of available-for-sale investments by contractual maturity were as follows:

 

 

 

December 31, 2024

 

 

March 31, 2024

 

 

 

Amortized
Cost

 

 

Fair
Value

 

 

Amortized
Cost

 

 

Fair
Value

 

 

 

(Unaudited)

 

 

 

(In thousands)

 

Due in one year or less

 

$

211,754

 

 

$

210,698

 

 

$

266,357

 

 

$

266,578

 

Due after one year through five years

 

 

632,864

 

 

 

626,490

 

 

 

748,338

 

 

 

723,903

 

Due after five years through ten years

 

 

602,819

 

 

 

568,543

 

 

 

614,890

 

 

 

564,422

 

Due after ten years

 

 

799,768

 

 

 

714,230

 

 

 

723,998

 

 

 

626,764

 

 

 

 

2,247,205

 

 

 

2,119,961

 

 

 

2,353,583

 

 

 

2,181,667

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

 

 

529,735

 

 

 

497,165

 

 

 

306,510

 

 

 

260,837

 

 

 

$

2,776,940

 

 

$

2,617,126

 

 

$

2,660,093

 

 

$

2,442,504

 

 

Equity investments of common stock and non-redeemable preferred stock were as follows:

 

 

 

December 31, 2024

 

 

March 31, 2024

 

 

 

Amortized
Cost

 

 

Fair
Value

 

 

Amortized
Cost

 

 

Fair
Value

 

 

 

(Unaudited)

 

 

 

(In thousands)

 

Common stocks

 

$

29,491

 

 

$

44,796

 

 

$

29,604

 

 

$

45,014

 

Non-redeemable preferred stocks

 

 

25,144

 

 

 

22,871

 

 

 

25,144

 

 

 

21,260

 

 

 

$

54,635

 

 

$

67,667

 

 

$

54,748

 

 

$

66,274

 

 

Investments, other

The carrying value of the other investments was as follows:

 

 

 

December 31,

 

 

March 31,

 

 

 

2024

 

 

2024

 

 

 

(Unaudited)

 

 

 

(In thousands)

 

Mortgage loans, net

 

$

604,615

 

 

$

604,481

 

Short-term investments

 

 

—

 

 

 

997

 

Policy loans

 

 

11,682

 

 

 

11,229

 

Other investments

 

 

9,333

 

 

 

17,229

 

 

 

$

625,630

 

 

$

633,936