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Investments (Tables)
 12 Months Ended
Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract]  
Components of net investment income The components of net investment income for the following periods were: 
($ in thousands)
 
Year Ended December 31,
 
 
2017
 
2016
 
2015
 
 
 
 
 
 
 
Fixed maturity securities
 
$
354,290

 
$
342,773

 
$
326,207

Equity securities
 
6,411

 
4,703

 
4,355

Short-term and other investments
 
10,214

 
9,668

 
9,187

Other invested assets (equity method investments)
 
12,555

 
13,609

 
1,984

Total investment income
 
383,470

 
370,753

 
341,733

Investment expenses
 
(9,840
)
 
(9,567
)
 
(9,133
)
Net investment income
 
$
373,630

 
$
361,186

 
$
332,600
Summary of realized investment gains (losses) Net realized investment gains (losses) for the following periods were:
($ in thousands)
 
Year Ended December 31,
 
 
2017
 
2016
 
2015
 
 
 
 
 
 
 
Fixed maturity securities
 
$
(8,867
)
 
$
5,784

 
$
10,289

Equity securities
 
4,003

 
(608
)
 
1,378

Short-term investments and other
 
1,458

 
(1,053
)
 
1,046

Net realized investment gains (losses)
 
$
(3,406
)
 
$
4,123

 
$
12,713
Unrealized gains and losses on fixed maturities and equity securities The amortized cost or cost, net unrealized investment gains and losses, fair values and OTTI included in accumulated other comprehensive income (loss) (AOCI) of all fixed maturity and equity securities in the portfolio were as follows:
($ in thousands)
 
Amortized
Cost/Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
 
OTTI in
AOCI (1)
December 31, 2017
 
 
 
 
 
 
 
 
 
 
Fixed maturity securities
 
 
 
 
 
 
 
 
 
 
U.S. Government and federally
sponsored agency obligations (2):
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
 
$
669,297

 
$
30,460

 
$
3,032

 
$
696,725

 
$
—

Other, including U.S. Treasury securities
 
714,613

 
26,311

 
5,516

 
735,408

 
—

Municipal bonds
 
1,711,581

 
184,107

 
2,435

 
1,893,253

 
—

Foreign government bonds
 
96,780

 
5,958

 
—

 
102,738

 
—

Corporate bonds
 
2,409,426

 
173,862

 
4,334

 
2,578,954

 
—

Other mortgage-backed securities
 
1,701,253

 
22,935

 
7,191

 
1,716,997

 
—

Totals
 
$
7,302,950

 
$
443,633

 
$
22,508

 
$
7,724,075

 
$
—

 
 
 
 
 
 
 
 
 
 
 
Equity securities (3)
 
$
116,320

 
$
19,425

 
$
279

 
$
135,466

 
$
—

 
 
 
 
 
 
 
 
 
 
 
December 31, 2016
 
 
 
 
 
 
 
 
 
 
Fixed maturity securities
 
 
 
 
 
 
 
 
 
 
U.S. Government and federally
sponsored agency obligations (2):
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
 
$
412,891

 
$
33,168

 
$
3,640

 
$
442,419

 
$
—

Other, including U.S. Treasury securities
 
458,745

 
18,518

 
10,120

 
467,143

 
—

Municipal bonds
 
1,648,252

 
143,733

 
22,588

 
1,769,397

 
—

Foreign government bonds
 
93,864

 
5,102

 
297

 
98,669

 
—

Corporate bonds
 
2,672,818

 
152,229

 
14,826

 
2,810,221

 
—

Other mortgage-backed securities
 
1,865,557

 
22,241

 
18,939

 
1,868,859

 
1,618

Totals
 
$
7,152,127

 
$
374,991

 
$
70,410

 
$
7,456,708

 
$
1,618

 
 
 
 
 
 
 
 
 
 
 
Equity securities (3)
 
$
134,013

 
$
13,210

 
$
5,574

 
$
141,649

 
$
—

 
(1)
Related to securities for which an unrealized loss was bifurcated to distinguish the credit-related portion and the portion driven by other market factors. Represents the amount of OTTI losses in AOCI which was not included in earnings; amounts also include net unrealized investment gains and losses on such impaired securities relating to changes in the fair value of those securities subsequent to the impairment measurement date.
(2)
Fair value includes securities issued by Federal National Mortgage Association (FNMA) of $361,955 thousand and $196,468 thousand; Federal Home Loan Mortgage Corporation (FHLMC) of $400,001 thousand and $284,050 thousand; and Government National Mortgage Association (GNMA) of $104,168 thousand and $115,627 thousand as of December 31, 2017 and 2016, respectively.
(3)
Includes nonredeemable (perpetual) preferred stocks, common stocks and closed-end funds.
Summary of fair value and gross unrealized losses of fixed maturity securities and equity securities in an unrealized loss position For equity securities, the Company has the ability and intent to hold the securities for the recovery of cost and recovery of cost is expected within a reasonable period of time. Therefore, no impairment of these securities was recorded at December 31, 2017.
($ in thousands)
 
12 months or less
 
More than 12 months
 
Total
 
 
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross
Unrealized
Losses
December 31, 2017
 
 

 
 

 
 

 
 

 
 

 
 

Fixed maturity securities
 
 

 
 

 
 

 
 

 
 

 
 

U.S. Government and federally
sponsored agency obligations:
 
 

 
 

 
 

 
 

 
 

 
 

Mortgage-backed securities
 
$
134,032

 
$
1,053

 
$
40,606

 
$
1,979

 
$
174,638

 
$
3,032

Other
 
168,634

 
1,849

 
122,753

 
3,667

 
291,387

 
5,516

Municipal bonds
 
29,437

 
100

 
79,140

 
2,335

 
108,577

 
2,435

Foreign government bonds
 
—

 
—

 
—

 
—

 
—

 
—

Corporate bonds
 
115,113

 
2,701

 
36,081

 
1,633

 
151,194

 
4,334

Other mortgage-backed securities
 
457,166

 
2,791

 
168,972

 
4,400

 
626,138

 
7,191

Total fixed maturity securities
 
904,382

 
8,494

 
447,552

 
14,014

 
1,351,934

 
22,508

Equity securities (1)
 
6,027

 
249

 
1,277

 
30

 
7,304

 
279

Combined totals
 
$
910,409

 
$
8,743

 
$
448,829

 
$
14,044

 
$
1,359,238

 
$
22,787

Number of positions with a
gross unrealized loss
 
354

 
 

 
158

 
 

 
512

 
 

Fair value as a percentage of total fixed
maturities and equity securities fair value
 
11.6
%
 
 

 
5.7
%
 
 

 
17.3
%
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2016
 
 

 
 

 
 

 
 

 
 

 
 

Fixed maturity securities
 
 

 
 

 
 

 
 

 
 

 
 

U.S. Government and federally
sponsored agency obligations:
 
 

 
 

 
 

 
 

 
 

 
 

Mortgage-backed securities
 
$
76,573

 
$
3,096

 
$
3,235

 
$
544

 
$
79,808

 
$
3,640

Other
 
219,372

 
10,120

 
—

 
—

 
219,372

 
10,120

Municipal bonds
 
408,163

 
19,006

 
9,928

 
3,582

 
418,091

 
22,588

Foreign government bonds
 
24,182

 
297

 
—

 
—

 
24,182

 
297

Corporate bonds
 
459,402

 
11,056

 
57,261

 
3,770

 
516,663

 
14,826

Other mortgage-backed securities
 
750,557

 
13,550

 
229,106

 
5,389

 
979,663

 
18,939

Total fixed maturity securities
 
1,938,249

 
57,125

 
299,530

 
13,285

 
2,237,779

 
70,410

Equity securities (1)
 
56,676

 
4,567

 
7,956

 
1,007

 
64,632

 
5,574

Combined totals
 
$
1,994,925

 
$
61,692

 
$
307,486

 
$
14,292

 
$
2,302,411

 
$
75,984

 
 
 
 
 
 
 
 
 
 
 
 
 
Number of positions with a
gross unrealized loss
 
629

 
 

 
102

 
 

 
731

 
 

Fair value as a percentage of total fixed
maturities and equity securities fair value
 
26.3
%
 
 

 
4.0
%
 
 

 
30.3
%
 
 

____________________
(1)
Includes nonredeemable (perpetual) preferred stocks, common stocks and closed-end funds.
Summary of cumulative credit losses The following table summarizes the cumulative amounts related to the Company's credit loss component of OTTI losses on fixed maturity securities held as of December 31, 2017 and 2016 that the Company did not intend to sell as of those dates, and it was not more likely than not that the Company would be required to sell the securities before the anticipated recovery of the amortized cost bases, for which the non-credit portions of OTTI losses were recognized in other comprehensive income (loss):
($ in thousands)
 
Year Ended December 31,
 
 
2017
 
2016
Cumulative credit loss (1)
 
 

 
 

Beginning of period
 
$
13,703

 
$
7,844

New credit losses
 
—

 
300

Increases to previously recognized credit losses
 
1,995

 
5,859

Losses related to securities sold or paid down during the period
 
(11,873
)
 
(300
)
End of period
 
$
3,825

 
$
13,703

____________________
(1)
The cumulative credit loss amounts exclude OTTI losses on securities held as of the periods indicated that the Company intended to sell or it was more likely than not that the Company would be required to sell the security before the recovery of the amortized cost basis.
Distribution of the Company's fixed maturity portfolio by estimated expected maturity The following table presents the distribution of the Company's fixed maturity securities portfolio by estimated expected maturity. Estimated expected maturities differ from contractual maturities, reflecting assumptions regarding borrowers' utilization of the right to call or prepay obligations with or without call or prepayment penalties. For structured securities, including mortgage-backed securities and other asset-backed securities, estimated expected maturities consider broker-dealer survey prepayment assumptions and are verified for consistency with the interest rate and economic environments. 
($ in thousands)
 
December 31, 2017
 
 
Amortized
Cost
 
Fair
Value
 
Percent of
Total Fair
Value
Estimated expected maturity:
 
 

 
 

 
 

Due in 1 year or less
 
$
243,998

 
$
248,959

 
3.2
%
Due after 1 year through 5 years
 
1,985,554

 
2,059,625

 
26.7
%
Due after 5 years through 10 years
 
2,428,868

 
2,522,414

 
32.6
%
Due after 10 years through 20 years
 
1,731,226

 
1,867,055

 
24.2
%
Due after 20 years
 
913,304

 
1,026,022

 
13.3
%
Total
 
$
7,302,950

 
$
7,724,075

 
100.0
%
 
 
 
 
 
 
 
Average option-adjusted duration, in years
 
5.9

 
 

 
 
Proceeds received from sales of fixed maturities and equity securities Proceeds received from sales of fixed maturity and equity securities, each determined using the specific identification method, and gross gains and gross losses realized as a result of those sales for each year were:
($ in thousands)
 
Year Ended December 31,
 
 
2017
 
2016
 
2015
Fixed maturity securities
 
 

 
 

 
 

Proceeds received
 
$
500,760

 
$
429,251

 
$
445,100

Gross gains realized
 
13,570

 
15,915

 
22,476

Gross losses realized
 
(11,842
)
 
(4,163
)
 
(5,487
)
 
 
 
 
 
 
 
Equity securities
 
 
 
 
 
 
Proceeds received
 
$
50,113

 
$
21,210

 
$
31,621

Gross gains realized
 
7,753

 
2,869

 
6,604

Gross losses realized
 
(1,972
)
 
(935
)
 
(672
)
Reconciliation of net unrealized investment gains (losses) on fixed maturity securities and equity securities The following table reconciles the net unrealized investment gains and losses, net of tax, included in accumulated other comprehensive income (loss), before the impact on DAC: 
($ in thousands)
 
Year Ended December 31,
 
 
2017
 
2016
 
2015
Net unrealized investment gains and losses
on fixed maturity securities, net of tax
 
 

 
 

 
 

Beginning of period
 
$
197,978

 
$
198,714

 
$
336,604

Change in unrealized investment gains and losses
 
69,989

 
3,024

 
(131,202
)
Reclassification of net realized investment (gains)
losses to net income
 
5,764

 
(3,760
)
 
(6,688
)
End of period
 
$
273,731

 
$
197,978

 
$
198,714

 
 
 
 
 
 
 
Net unrealized investment gains and losses
on equity securities, net of tax
 
 

 
 

 
 

Beginning of period
 
$
4,963

 
$
2,649

 
$
6,988

Change in unrealized investment gains and losses
 
10,084

 
1,919

 
(3,443
)
Reclassification of net realized investment (gains)
losses to net income
 
(2,602
)
 
395

 
(896
)
End of period
 
$
12,445

 
$
4,963

 
$
2,649
Offsetting assets and liability The following table presents the instruments that were subject to a master netting arrangement for the Company.
($ in thousands)
 
 
 
Gross
Amounts
Offset in the
 
Net Amounts
of Assets/
Liabilities
Presented
in the
 
Gross Amounts Not Offset
in the Consolidated
Balance Sheets
 
 
 
 
Gross
Amounts
 
Consolidated
Balance
Sheets
 
Consolidated
Balance
Sheets
 
Financial
Instruments
 
Cash
Collateral
Received
 
Net
Amount
December 31, 2017
 
 

 
 

 
 

 
 

 
 

 
 

Asset derivatives
 
 

 
 

 
 

 
 

 
 

 
 

Free-standing derivatives
 
$
15,550

 
$
—

 
$
15,550

 
$
—

 
$
15,584

 
$
(34
)
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
Asset derivatives
 
 
 
 
 
 
 
 
 
 
 
 
Free-standing derivatives
 
8,694

 
—

 
8,694

 
—

 
8,824

 
(130
)