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Investments (Tables)
 12 Months Ended
Dec. 31, 2021
Investments Debt And Equity Securities [Abstract]  
Schedule of Net Investment Income

(in thousands)

 

2021

 

 

2020

 

 

2019

 

Interest on fixed income securities

 

$

60,624

 

 

$

59,755

 

 

$

60,364

 

Dividends on equity securities

 

 

11,787

 

 

 

9,728

 

 

 

9,950

 

Interest on cash, short-term investments and other invested assets

 

 

2,639

 

 

 

3,379

 

 

 

3,674

 

Gross investment income

 

$

75,050

 

 

$

72,862

 

 

$

73,988

 

Less investment expenses

 

 

(6,188

)

 

 

(4,969

)

 

 

(5,118

)

Net investment income

 

$

68,862

 

 

$

67,893

 

 

$

68,870

 

 
Schedule of Pretax Net Realized Investment Gains (Losses) and Net Changes in Unrealized Gains (Losses) on Investments

(in thousands)

 

2021

 

 

2020

 

 

2019

 

Net realized gains (losses):

 

 

 

 

 

 

 

 

 

 

 

 

Fixed income:

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale

 

$

1,859

 

 

$

3,872

 

 

$

3,184

 

Equity securities

 

 

62,512

 

 

 

15,796

 

 

 

14,445

 

Other

 

 

(149

)

 

 

(1,783

)

 

 

(109

)

Total net realized gains (losses)

 

$

64,222

 

 

$

17,885

 

 

$

17,520

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net changes in unrealized gains (losses) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities

 

$

58,459

 

 

$

32,317

 

 

$

78,389

 

Other invested assets

 

 

6,799

 

 

 

(216

)

 

 

(299

)

Total unrealized gains (losses) on equity securities recognized in net earnings

 

$

65,258

 

 

$

32,101

 

 

$

78,090

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed income:

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale

 

$

(71,538

)

 

$

67,350

 

 

$

83,758

 

Investment in unconsolidated investees

 

 

(3,047

)

 

 

3,444

 

 

 

1,109

 

Other

 

 

44

 

 

 

369

 

 

 

—

 

Total unrealized gains (losses) recognized in other comprehensive earnings

 

$

(74,541

)

 

$

71,163

 

 

$

84,867

 

Net realized gains (losses) and changes in unrealized gains (losses) on investments

 

$

54,939

 

 

$

121,149

 

 

$

180,477

 

 
Schedule of Disposition of Fixed Income and Equity Securities

SALES

 

 

 

 

 

Gross Realized

 

 

Net Realized

 

(in thousands)

 

Proceeds

 

 

Gains

 

 

Losses

 

 

Gain (Loss)

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale

 

$

65,262

 

 

$

2,161

 

 

$

(815

)

 

$

1,346

 

Equities

 

 

180,256

 

 

 

64,298

 

 

 

(1,786

)

 

 

62,512

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale

 

$

84,697

 

 

$

5,454

 

 

$

(1,777

)

 

$

3,677

 

Equities

 

 

79,368

 

 

 

25,338

 

 

 

(9,542

)

 

 

15,796

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale

 

$

196,799

 

 

$

4,368

 

 

$

(2,167

)

 

$

2,201

 

Equities

 

 

62,172

 

 

 

16,938

 

 

 

(2,493

)

 

 

14,445

 

 

 

CALLS/MATURITIES

 

 

 

 

 

Gross Realized

 

 

Net Realized

 

(in thousands)

 

Proceeds

 

 

Gains

 

 

Losses

 

 

Gain (Loss)

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale

 

$

376,751

 

 

$

638

 

 

$

(125

)

 

$

513

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale

 

$

283,107

 

 

$

821

 

 

$

(27

)

 

$

794

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale

 

$

201,698

 

 

$

1,004

 

 

$

(21

)

 

$

983

 

 
Fair Value, Assets Measured on Recurring Basis

Assets measured at fair value on a recurring basis as of December 31, 2021 and 2020, are summarized below:

 

 

 

2021

 

 

 

Quoted in Active

 

 

Significant Other

 

 

Significant

 

 

 

 

 

 

 

Markets for

 

 

Observable

 

 

Unobservable

 

 

 

 

 

 

 

Identical Assets

 

 

Inputs

 

 

Inputs

 

 

 

 

 

(in thousands)

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

Total

 

Fixed income securities - available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government

 

$

—

 

 

$

134,554

 

 

$

—

 

 

$

134,554

 

U.S. agency

 

 

—

 

 

 

32,760

 

 

 

—

 

 

 

32,760

 

Non-U.S. government & agency

 

 

—

 

 

 

8,481

 

 

 

—

 

 

 

8,481

 

Agency MBS

 

 

—

 

 

 

367,187

 

 

 

—

 

 

 

367,187

 

ABS/CMBS/MBS*

 

 

—

 

 

 

264,054

 

 

 

—

 

 

 

264,054

 

Corporate

 

 

—

 

 

 

913,577

 

 

 

43,518

 

 

 

957,095

 

Municipal

 

 

—

 

 

 

645,756

 

 

 

—

 

 

 

645,756

 

Total fixed income securities - available-for-sale

 

$

—

 

 

$

2,366,369

 

 

$

43,518

 

 

$

2,409,887

 

Equity securities

 

 

613,712

 

 

 

64

 

 

 

—

 

 

 

613,776

 

Other invested assets

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

613,712

 

 

$

2,366,433

 

 

$

43,518

 

 

$

3,023,663

 

 

 

 

2020

 

 

 

Quoted in Active

 

 

Significant Other

 

 

Significant

 

 

 

 

 

 

 

Markets for

 

 

Observable

 

 

Unobservable

 

 

 

 

 

 

 

Identical Assets

 

 

Inputs

 

 

Inputs

 

 

 

 

 

(in thousands)

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

Total

 

Fixed income securities - available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government

 

$

—

 

 

$

183,357

 

 

$

—

 

 

$

183,357

 

U.S. agency

 

 

—

 

 

 

32,872

 

 

 

—

 

 

 

32,872

 

Non-U.S. government & agency

 

 

—

 

 

 

10,965

 

 

 

—

 

 

 

10,965

 

Agency MBS

 

 

—

 

 

 

402,071

 

 

 

—

 

 

 

402,071

 

ABS/CMBS/MBS*

 

 

—

 

 

 

218,373

 

 

 

—

 

 

 

218,373

 

Corporate

 

 

—

 

 

 

798,794

 

 

 

17,798

 

 

 

816,592

 

Municipal

 

 

—

 

 

 

532,396

 

 

 

—

 

 

 

532,396

 

Total fixed income securities - available-for-sale

 

$

—

 

 

$

2,178,828

 

 

$

17,798

 

 

$

2,196,626

 

Equity securities

 

 

523,923

 

 

 

83

 

 

 

—

 

 

 

524,006

 

Other invested assets

 

 

6,068

 

 

 

—

 

 

 

—

 

 

 

6,068

 

Total

 

$

529,991

 

 

$

2,178,911

 

 

$

17,798

 

 

$

2,726,700

 

 

*

Non-agency asset-backed, commercial mortgage-backed and mortgage-backed securities
Summary of Changes in Balance of Level 3 Securities

(in thousands)

 

Level 3 Securities

 

Balance as of January 1, 2021

 

$

17,798

 

Net realized and unrealized gains (losses)

 

 

 

 

Included in net earnings as a part of:

 

 

 

 

Net investment income

 

 

(53

)

Net realized gains

 

 

(367

)

Included in other comprehensive earnings

 

 

(170

)

Total net realized and unrealized gains (losses)

 

$

(590

)

Purchases

 

 

26,310

 

Balance as of December 31, 2021

 

$

43,518

 

Change in unrealized gains (losses) during the period for Level 3 assets held at period-end - included in net realized gains

 

$

(367

)

Change in unrealized gains (losses) during the period for Level 3 assets held at period-end - included in other comprehensive earnings

 

$

(170

)

 
Schedule of Contractual Maturity of Securities

 

(in thousands)

 

Amortized Cost

 

 

Fair Value

 

Due in one year or less

 

$

57,625

 

 

$

58,134

 

Due after one year through five years

 

 

626,953

 

 

 

647,068

 

Due after five years through 10 years

 

 

537,777

 

 

 

560,653

 

Due after 10 years

 

 

496,778

 

 

 

512,791

 

ABS/CMBS/MBS*

 

 

627,134

 

 

 

631,241

 

Total available-for-sale

 

$

2,346,267

 

 

$

2,409,887

 

 

*

Asset-backed, commercial mortgage-backed and mortgage-backed securities

 
Schedule of Amortized Cost and Fair Value of Available-for-sale Securities

 

The amortized cost and fair value of available-for-sale securities at December 31, 2021 and 2020 are presented in the tables below. Amortized cost does not include the $16.4 million and $14.9 million of accrued interest receivable as of December 31, 2021 and 2020, respectively.

 

 

 

2021

 

 

 

 

 

 

 

Allowance

 

 

Gross

 

 

Gross

 

 

 

 

 

 

 

Amortized

 

 

for Credit

 

 

Unrealized

 

 

Unrealized

 

 

 

 

 

(in thousands)

 

Cost

 

 

Losses

 

 

Gains

 

 

Losses

 

 

Fair Value

 

U.S. government

 

$

127,752

 

 

$

—

 

 

$

6,846

 

 

$

(44

)

 

$

134,554

 

U.S. agency

 

 

30,403

 

 

 

—

 

 

 

2,374

 

 

 

(17

)

 

 

32,760

 

Non-U.S. government & agency

 

 

8,297

 

 

 

—

 

 

 

338

 

 

 

(154

)

 

 

8,481

 

Agency MBS

 

 

362,861

 

 

 

—

 

 

 

9,277

 

 

 

(4,951

)

 

 

367,187

 

ABS/CMBS/MBS*

 

 

264,273

 

 

 

—

 

 

 

2,120

 

 

 

(2,339

)

 

 

264,054

 

Corporate

 

 

925,394

 

 

 

(441

)

 

 

37,247

 

 

 

(5,105

)

 

 

957,095

 

Municipal

 

 

627,287

 

 

 

—

 

 

 

22,750

 

 

 

(4,281

)

 

 

645,756

 

Total fixed income

 

$

2,346,267

 

 

$

(441

)

 

$

80,952

 

 

$

(16,891

)

 

$

2,409,887

 

 

*

Non-agency asset-backed, commercial mortgage-backed and mortgage-backed securities

 

 

 

2020

 

 

 

 

 

 

 

Allowance

 

 

Gross

 

 

Gross

 

 

 

 

 

 

 

Amortized

 

 

for Credit

 

 

Unrealized

 

 

Unrealized

 

 

 

 

 

(in thousands)

 

Cost

 

 

Losses

 

 

Gains

 

 

Losses

 

 

Fair Value

 

U.S. government

 

$

170,110

 

 

$

—

 

 

$

13,504

 

 

$

(257

)

 

$

183,357

 

U.S. agency

 

 

28,902

 

 

 

—

 

 

 

3,970

 

 

 

—

 

 

 

32,872

 

Non-U.S. government & agency

 

 

10,298

 

 

 

—

 

 

 

667

 

 

 

—

 

 

 

10,965

 

Agency MBS

 

 

384,015

 

 

 

—

 

 

 

18,789

 

 

 

(733

)

 

 

402,071

 

ABS/CMBS/MBS*

 

 

213,223

 

 

 

(17

)

 

 

5,580

 

 

 

(413

)

 

 

218,373

 

Corporate

 

 

753,404

 

 

 

(380

)

 

 

64,501

 

 

 

(933

)

 

 

816,592

 

Municipal

 

 

501,515

 

 

 

—

 

 

 

31,099

 

 

 

(218

)

 

 

532,396

 

Total fixed income

 

$

2,061,467

 

 

$

(397

)

 

$

138,110

 

 

$

(2,554

)

 

$

2,196,626

 

 

*

Non-agency asset-backed, commercial mortgage-backed and mortgage-backed securities
Schedule of Debt Securities Available-for-sale Allowance for Credit Loss

(in thousands)

 

2021

 

 

2020

 

Beginning balance

 

$

397

 

 

$

—

 

Adoption impact of ASU 2016-13

 

 

-

 

 

$

28

 

Increase to allowance from securities for which credit losses were not previously recorded

 

 

4

 

 

 

369

 

Reduction from securities sold during the period

 

 

(4

)

 

 

-

 

Net increase (decrease) from securities that had an allowance at the beginning of the period

 

 

44

 

 

 

-

 

Ending balance

 

$

441

 

 

$

397

 

 
Schedule of Securities in an Unrealized Loss Position Segregated by Type and Length of Time in an Unrealized Loss Position

 

 

December 31, 2021

 

 

December 31, 2020

 

 

 

 

 

 

 

12 Mos.

 

 

 

 

 

 

 

 

 

 

12 Mos.

 

 

 

 

 

(in thousands)

 

< 12 Mos.

 

 

& Greater

 

 

Total

 

 

< 12 Mos.

 

 

& Greater

 

 

Total

 

U.S. government

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value

 

$

2,942

 

 

$

—

 

 

$

2,942

 

 

$

5,680

 

 

$

—

 

 

$

5,680

 

Amortized cost

 

 

2,986

 

 

 

—

 

 

 

2,986

 

 

 

5,937

 

 

 

—

 

 

 

5,937

 

Unrealized loss

 

$

(44

)

 

$

—

 

 

$

(44

)

 

$

(257

)

 

$

—

 

 

$

(257

)

U.S. agency

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value

 

$

1,498

 

 

$

—

 

 

$

1,498

 

 

$

—

 

 

$

—

 

 

$

—

 

Amortized cost

 

 

1,515

 

 

 

—

 

 

 

1,515

 

 

 

—

 

 

 

—

 

 

 

—

 

Unrealized loss

 

$

(17

)

 

$

—

 

 

$

(17

)

 

$

—

 

 

$

—

 

 

$

—

 

Non-U.S. government & agency

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value

 

$

4,346

 

 

$

—

 

 

$

4,346

 

 

$

—

 

 

$

—

 

 

$

—

 

Amortized cost

 

 

4,500

 

 

 

—

 

 

 

4,500

 

 

 

—

 

 

 

—

 

 

 

—

 

Unrealized loss

 

$

(154

)

 

$

—

 

 

$

(154

)

 

$

—

 

 

$

—

 

 

$

—

 

Agency MBS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value

 

$

102,145

 

 

$

62,669

 

 

$

164,814

 

 

$

43,999

 

 

$

—

 

 

$

43,999

 

Amortized cost

 

 

104,336

 

 

 

65,429

 

 

 

169,765

 

 

 

44,732

 

 

 

—

 

 

 

44,732

 

Unrealized loss

 

$

(2,191

)

 

$

(2,760

)

 

$

(4,951

)

 

$

(733

)

 

$

—

 

 

$

(733

)

ABS/CMBS/MBS*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value

 

$

150,997

 

 

$

3,935

 

 

$

154,932

 

 

$

32,771

 

 

$

16,161

 

 

$

48,932

 

Amortized cost

 

 

153,235

 

 

 

4,036

 

 

 

157,271

 

 

 

33,094

 

 

 

16,251

 

 

 

49,345

 

Unrealized loss

 

$

(2,238

)

 

$

(101

)

 

$

(2,339

)

 

$

(323

)

 

$

(90

)

 

$

(413

)

Corporate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value

 

$

217,791

 

 

$

53,818

 

 

$

271,609

 

 

$

52,655

 

 

$

6,235

 

 

$

58,890

 

Amortized cost

 

 

221,010

 

 

 

55,704

 

 

 

276,714

 

 

 

53,440

 

 

 

6,383

 

 

 

59,823

 

Unrealized loss

 

$

(3,219

)

 

$

(1,886

)

 

$

(5,105

)

 

$

(785

)

 

$

(148

)

 

$

(933

)

Municipal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value

 

$

162,998

 

 

$

15,037

 

 

$

178,035

 

 

$

25,676

 

 

$

—

 

 

$

25,676

 

Amortized cost

 

 

166,602

 

 

 

15,714

 

 

 

182,316

 

 

 

25,894

 

 

 

—

 

 

 

25,894

 

Unrealized loss

 

$

(3,604

)

 

$

(677

)

 

$

(4,281

)

 

$

(218

)

 

$

—

 

 

$

(218

)

Total fixed income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value

 

$

642,717

 

 

$

135,459

 

 

$

778,176

 

 

$

160,781

 

 

$

22,396

 

 

$

183,177

 

Amortized cost

 

 

654,184

 

 

 

140,883

 

 

 

795,067

 

 

 

163,097

 

 

 

22,634

 

 

 

185,731

 

Unrealized loss

 

$

(11,467

)

 

$

(5,424

)

 

$

(16,891

)

 

$

(2,316

)

 

$

(238

)

 

$

(2,554

)

 

*

Non-agency asset-backed, commercial mortgage-backed and mortgage-backed securities