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Investments (Tables)
 9 Months Ended
Sep. 30, 2020
Investments, Debt and Equity Securities [Abstract]  
Components of net investment income
The components of net investment income for the following periods were as follows:
($ in thousands)Three Months Ended
September 30,		Nine Months Ended
September 30,
2020201920202019
Fixed maturity securities$56,420 $59,319 $174,727 $227,196 
Equity securities1,130 1,107 3,520 3,697 
Limited partnership interests11,046 6,859 4,862 22,759 
Short-term and other investments2,774 4,207 8,415 (13,856)
Investment expenses(2,151)(2,179)(7,262)(7,420)
Net investment income - investment portfolio
69,219 69,313 184,262 232,376 
Investment income - deposit asset on reinsurance24,499 23,758 72,141 46,953 
Total net investment income
$93,718 $93,071 $256,403 $279,329 
Schedule of net investment gains (losses)
Net investment gains (losses) for the following periods were as follows:
($ in thousands)Three Months Ended
September 30,		Nine Months Ended
September 30,
2020201920202019
Fixed maturity securities$2,656 $206 $3,116 $141,955 
Equity securities3,982 1,478 (3,670)13,311 
Short-term investments and other(4,169)(3,840)(12,279)(3,672)
Net investment gains (losses)
$2,469 $(2,156)$(12,833)$151,594 
The following table reconciles net investment gains (losses) pretax by transaction type:
($ in thousands)Three Months Ended
September 30,		Nine Months Ended
September 30,
2020201920202019
Credit impairment write-downs$— $— $— $— 
Change in intent write-downs(1,057)(5)(5,272)(276)
Net other-than-temporary impairment losses
on securities recognized in net income
(1,057)(5)(5,272)(276)
Sales and other, net3,736 608 8,645 147,513 
Change in fair value - equity securities2,242 1,081 (5,644)8,029 
Change in fair value and gains (losses) realized
on settlements - derivatives
(2,452)(3,840)(10,562)(3,672)
Net investment gains (losses)
$2,469 $(2,156)$(12,833)$151,594 
Unrealized gains and losses on fixed maturities and equity securities Amortized cost, net unrealized investment gains (losses) and fair values of all fixed maturity securities in the portfolio were as follows:
($ in thousands)Amortized
Cost		Unrealized
Gains		Unrealized
Losses		Fair
Value
September 30, 2020
Fixed maturity securities
U.S. Government and federally
sponsored agency obligations: (1)
Mortgage-backed securities
$617,856 $85,219 $213 $702,862 
Other, including U.S. Treasury securities
341,771 42,683 317 384,137 
Municipal bonds1,621,308 196,317 1,124 1,816,501 
Foreign government bonds40,143 4,644 — 44,787 
Corporate bonds1,802,423 189,986 8,926 1,983,483 
Other asset-backed securities1,248,814 22,353 34,379 1,236,788 
Totals$5,672,315 $541,202 $44,959 $6,168,558 
December 31, 2019
Fixed maturity securities
U.S. Government and federally
sponsored agency obligations: (1)
Mortgage-backed securities
$684,543 $41,263 $1,487 $724,319 
Other, including U.S. Treasury securities
436,665 22,824 621 458,868 
Municipal bonds1,545,787 141,996 1,580 1,686,203 
Foreign government bonds42,801 2,569 — 45,370 
Corporate bonds1,464,444 118,775 1,795 1,581,424 
Other asset-backed securities1,282,740 20,883 8,131 1,295,492 
Totals$5,456,980 $348,310 $13,614 $5,791,676 
(1)    Fair value includes securities issued by Federal National Mortgage Association (FNMA) of $390.7 million and $405.1 million; Federal Home Loan Mortgage Corporation (FHLMC) of $322.4 million and $283.1 million; and Government National Mortgage Association (GNMA) of $137.4 million and $147.4 million as of September 30, 2020 and December 31, 2019, respectively.
Summary of fair value and gross unrealized losses of fixed maturity securities and equity securities in an unrealized loss position
The following table presents the fair value and gross unrealized losses for fixed maturity securities in an unrealized loss position at September 30, 2020 and December 31, 2019, respectively. The Company views the decrease in fair value of all of the fixed maturity securities with unrealized losses at September 30, 2020 — which was driven largely by increasing interest rates, spread widening, financial market illiquidity and/or market volatility from the date of acquisition — as temporary. As of September 30, 2020, the Company has not made the decision to sell and it is not more likely than not the Company will be required to sell the fixed maturity securities with unrealized losses before an anticipated recovery in value. Therefore, it was determined that the unrealized losses on the fixed maturity securities presented in the table below were not other-than-temporarily impaired as of September 30, 2020.
($ in thousands)12 Months or LessMore than 12 MonthsTotal
Fair ValueGross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses
September 30, 2020
Fixed maturity securities
U.S. Government and federally
sponsored agency obligations:
Mortgage-backed securities$8,519 $134 $1,246 $79 $9,765 $213 
Other
31,797 317 — — 31,797 317 
Municipal bonds47,067 1,124 — — 47,067 1,124 
Foreign government bonds
— — — — — — 
Corporate bonds
203,521 8,444 9,873 482 213,394 8,926 
Other asset-backed securities
397,424 24,376 413,159 10,003 810,583 34,379 
Total
$688,328 $34,395 $424,278 $10,564 $1,112,606 $44,959 
Number of positions with a
   gross unrealized loss
475 124 599 
Fair value as a percentage of total fixed
   maturity securities at fair value
11.2 %6.9 %18.1 %
December 31, 2019
Fixed maturity securities
U.S. Government and federally
sponsored agency obligations:
Mortgage-backed securities$72,422 $1,282 $2,620 $205 $75,042 $1,487 
Other38,341 619 1,527 2 39,868 621 
Municipal bonds91,195 977 9,160 603 100,355 1,580 
Foreign government bonds— — — — — — 
Corporate bonds58,198 886 16,622 909 74,820 1,795 
Other asset-backed securities218,710 1,970 442,791 6,161 661,501 8,131 
Total
$478,866 $5,734 $472,720 $7,880 $951,586 $13,614 
Number of positions with a
   gross unrealized loss
330 137 467 
Fair value as a percentage of total fixed
   maturity securities at fair value
8.3 %8.2 %16.5 %
Summary of cumulative credit losses
The following table summarizes the cumulative amounts related to the Company's credit loss component of other-than-temporary impairment (OTTI) losses on fixed maturity securities held as of September 30, 2020 and 2019 that the Company did not intend to sell as of those dates, and it was not more likely than not that the Company would be required to sell the securities before an anticipated recovery in value, for which the non-credit portions of OTTI losses were recognized in OCI:
($ in thousands)Nine Months Ended
September 30,
20202019
Cumulative credit loss (1)
Beginning of period$1,529 $1,529 
New credit losses184 — 
Increases to previously recognized credit losses— — 
Losses related to securities sold or paid down during the period(103)— 
End of period$1,610 $1,529 
(1)The cumulative credit loss amounts exclude OTTI losses on fixed maturity securities held as of the periods indicated that the Company intended to sell or it was more likely than not that the Company would be required to sell the security before an anticipated recovery in value.
Distribution of the company's fixed maturity portfolio by estimated expected maturity
The following table presents the distribution of the Company’s fixed maturity securities portfolio by estimated expected maturity. Estimated expected maturities differ from contractual maturities, reflecting assumptions regarding borrowers' utilization of the right to call or prepay obligations with or without call or prepayment penalties. For structured securities, estimated expected maturities consider broker-dealer survey prepayment assumptions and are verified for consistency with the interest rate and economic environments.
($ in thousands)Percent of Total Fair ValueSeptember 30, 2020
September 30, 2020December 31, 2019Fair
Value		Amortized
Cost
Estimated expected maturity:
Due in 1 year or less4.2 %3.6 %$261,323 $258,244 
Due after 1 year through 5 years28.1 %27.4 %1,734,450 1,676,356 
Due after 5 years through 10 years28.9 %29.6 %1,782,261 1,628,583 
Due after 10 years through 20 years24.3 %26.1 %1,496,331 1,309,759 
Due after 20 years14.5 %13.3 %894,193 799,373 
Total100.0 %100.0 %$6,168,558 $5,672,315 
Average option-adjusted duration, in years6.36.0
Proceeds received from sales of fixed maturities and equity securities
Proceeds received from sales of fixed maturity and equity securities, each determined using the specific identification method, and gross gains and gross losses realized as a result of those sales for each period were as follows:
($ in thousands)Three Months Ended
September 30,		Nine Months Ended
September 30,
202020192020
2019 (1)
Fixed maturity securities
Proceeds received
$58,604 $149,319 $352,766 $651,058 
Gross gains realized
3,744 1,258 14,029 149,574 
Gross losses realized
(31)(1,047)(5,924)(7,128)
Equity securities
Proceeds received
$309 $1,367 $12,368 $18,489 
Gross gains realized
79 428 2,119 5,562 
Gross losses realized
(38)(32)(1,843)(542)
(1)Gross gains realized presented above include a $135.3 million realized investment gain associated with a transfer of investments to a reinsurer as consideration paid during the second quarter of 2019 in connection with the reinsurance of a $2.9 billion block of in force fixed and variable annuity business. See Note 5 for further information.
Reconciliation of net unrealized investment gains (losses) on fixed maturity securities and equity securities
The following table reconciles net unrealized investment gains (losses) on fixed maturity securities, net of tax, included in accumulated other comprehensive income (AOCI), before the impact of DAC:
($ in thousands)Three Months Ended
September 30,		Nine Months Ended
September 30,
2020201920202019
Net unrealized investment gains (losses)
on fixed maturity securities, net of tax
Beginning of period$329,887 $231,087 $264,410 $111,712 
Change in net unrealized investment gains
(losses) on fixed maturity securities		56,901 75,283 128,060 315,988 
Reclassification of net investment (gains) losses
on securities to net income		5,244 (1,330)(438)(122,660)
End of period$392,032 $305,040 $392,032 $305,040 
Offsetting assets and liability
The following table presents instruments that were subject to a master netting arrangement for the Company.
($ in thousands)Gross
Amounts
Offset in the
Consolidated
Balance
Sheets		Net Amounts
of Assets/
Liabilities
Presented
in the
Consolidated
Balance
Sheets		Gross Amounts Not Offset
in the Consolidated
Balance Sheets
Gross
Amounts		Financial
Instruments		Cash
Collateral
Received		Net
Amount
September 30, 2020
Asset derivatives:
Free-standing derivatives$10,793 $— $10,793 $7,952 $1,960 $881 
December 31, 2019
Asset derivatives:
Free-standing derivatives13,239 — 13,239 7,687 6,640 (1,088)