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Investments (Tables)
 9 Months Ended
Sep. 30, 2018
Investments [Abstract]  
Amortized cost, gross unrealized gains and losses and fair value of fixed income securities
The amortized cost, gross unrealized gains and losses, and fair value of investments in fixed income securities classified as available-for-sale at September 30, 2018 and December 31, 2017 are shown in tables 7.1a and 7.1b below.
 
Table
7.1a
 
 
 
 
 
 
 
 
Details of fixed income securities by category - current year
 
 
 
September 30, 2018
(In thousands)
 
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized (Losses) (1)
 
Fair Value
U.S. Treasury securities and obligations of U.S. government corporations and agencies
 
$
179,395

 
$
174

 
$
(3,353
)
 
$
176,216

 
Obligations of U.S. states and political subdivisions
 
1,738,417

 
17,797

 
(21,608
)
 
1,734,606

 
Corporate debt securities
 
2,296,218

 
1,152

 
(42,305
)
 
2,255,065

 
Asset backed securities (“ABS”)
 
71,481

 
—

 
(546
)
 
70,935

 
Residential mortgage backed securities (“RMBS”)
 
166,522

 
35

 
(11,594
)
 
154,963

 
Commercial mortgage backed securities (“CMBS”)
 
281,980

 
214

 
(11,974
)
 
270,220

 
Collateralized loan obligations (“CLO”)
 
307,998

 
67

 
(458
)
 
307,607

 
Total fixed income securities
 
5,042,011

 
19,439

 
(91,838
)
 
4,969,612

 
Table
7.1b
 
 
 
 
 
 
 
 
Details of fixed income securities by category - prior year-end
 
 
 
December 31, 2017
(In thousands)
 
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized (Losses) (1)
 
Fair Value
U.S. Treasury securities and obligations of U.S. government corporations and agencies
 
$
179,850

 
$
274

 
$
(1,278
)
 
$
178,846

 
Obligations of U.S. states and political subdivisions
 
2,105,063

 
56,210

 
(8,749
)
 
2,152,524

 
Corporate debt securities
 
2,065,475

 
10,532

 
(9,169
)
 
2,066,838

 
ABS
 
4,925

 
—

 
(2
)
 
4,923

 
RMBS
 
189,153

 
60

 
(7,364
)
 
181,849

 
CMBS
 
301,014

 
1,204

 
(4,906
)
 
297,312

 
CLOs
 
100,798

 
304

 
(79
)
 
101,023

 
Total fixed income securities
 
4,946,278

 
68,584

 
(31,547
)
 
4,983,315

(1) 
At September 30, 2018 and December 31, 2017, there were no other-than-temporary impairment losses recorded in other comprehensive income.
Amortized cost and fair values of fixed income securities by contractual maturity
The amortized cost and fair values of fixed income securities at September 30, 2018, by contractual maturity, are shown in table 7.2 below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Because most ABS, RMBS, CMBS, and CLOs provide for periodic payments throughout their lives, they are listed in separate categories.
 
Table
7.2
 
 
 
 
Fixed income securities maturity schedule
 
 
September 30, 2018
(In thousands)
 
Amortized Cost
 
Fair Value
 
Due in one year or less
 
$
511,087

 
$
509,952

 
Due after one year through five years
 
1,552,123

 
1,526,802

 
Due after five years through ten years
 
940,185

 
918,757

 
Due after ten years
 
1,210,635

 
1,210,376

 
 
 
$
4,214,030

 
$
4,165,887

 
 
 
 
 
 
 
ABS
 
71,481

 
70,935

 
RMBS
 
166,522

 
154,963

 
CMBS
 
281,980

 
270,220

 
CLOs
 
307,998

 
307,607

 
Total as of September 30, 2018
 
$
5,042,011

 
$
4,969,612
Cost and fair value of investments in equity securities
The cost and fair value of investments in equity securities at September 30, 2018 and December 31, 2017 are shown in tables 7.3a and 7.3b below. As described in Note 2 - “New Accounting Pronouncements,” under updated guidance regarding the “Recognition and Measurement of Financial Assets and Financial Liabilities” which became effective on January 1, 2018, the amount of our FHLB stock investment has been reclassified and presented in “Other invested assets” on our consolidated balance sheet as of September 30, 2018.
 
Table
7.3a
 
 
 
 
 
 
 
 
Details of equity security investments - current year
 
 
 
September 30, 2018
(In thousands)
 
Cost
 
Gross Gains
 
Gross Losses
 
Fair Value
Equity securities
 
$
4,134

 
$
3,667

 
$
(81
)
 
$
7,720

 
Table
7.3b
 
 
 
 
 
 
 
 
Details of equity security investments - prior year-end
 
 
 
December 31, 2017
(In thousands)
 
Cost
 
Gross Gains
 
Gross Losses
 
Fair Value
Equity securities
 
$
7,223

 
$
39

 
$
(16
)
 
$
7,246
Aging of the fair values of securities in an unrealized loss position
Tables 7.4a and 7.4b below summarize, for all available-for-sale investments in an unrealized loss position at September 30, 2018 and December 31, 2017, the aggregate fair value and gross unrealized loss by the length of time those securities have been continuously in an unrealized loss position. The fair value amounts reported in tables 7.4a and 7.4b are estimated using the process described in Note 8 - “Fair Value Measurements” to these consolidated financial statements and in Note 3 - “Significant Accounting Policies” of the notes to the consolidated financial statements in our 2017 Annual Report on Form 10-K.
 
Table
7.4a
 
 
 
 
 
 
 
 
 
 
 
 
Investments unrealized losses - current year
 
 
 
September 30, 2018
 
 
Less Than 12 Months
 
12 Months or Greater
 
Total
(In thousands)
 
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
 
U.S. Treasury securities and obligations of U.S. government corporations and agencies
 
$
89,759

 
$
(583
)
 
$
78,769

 
$
(2,770
)
 
$
168,528

 
$
(3,353
)
 
Obligations of U.S. states and political subdivisions
 
643,147

 
(12,356
)
 
245,763

 
(9,252
)
 
888,910

 
(21,608
)
 
Corporate debt securities
 
1,782,640

 
(29,184
)
 
299,549

 
(13,121
)
 
2,082,189

 
(42,305
)
 
ABS
 
70,935

 
(546
)
 
—

 
—

 
70,935

 
(546
)
 
RMBS
 
4,930

 
(183
)
 
149,648

 
(11,411
)
 
154,578

 
(11,594
)
 
CMBS
 
81,972

 
(1,763
)
 
160,039

 
(10,211
)
 
242,011

 
(11,974
)
 
CLOs
 
201,700

 
(458
)
 
—

 
—

 
201,700

 
(458
)
 
Total
 
$
2,875,083

 
$
(45,073
)
 
$
933,768

 
$
(46,765
)
 
$
3,808,851

 
$
(91,838
)
 
Table
7.4b
 
 
 
 
 
 
 
 
 
 
 
 
Investments unrealized losses - prior year-end
 
 
 
December 31, 2017
 
 
 
Less Than 12 Months
 
12 Months or Greater
 
Total
(In thousands)
 
Fair Value
 
Unrealized
 Losses
 
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
 Losses
 
U.S. Treasury securities and obligations of U.S. government corporations and agencies
 
$
144,042

 
$
(796
)
 
$
31,196

 
$
(482
)
 
$
175,238

 
$
(1,278
)
 
Obligations of U.S. states and political subdivisions
 
505,311

 
(3,624
)
 
211,684

 
(5,125
)
 
716,995

 
(8,749
)
 
Corporate debt securities
 
932,350

 
(4,288
)
 
200,716

 
(4,881
)
 
1,133,066

 
(9,169
)
 
ABS
 
4,923

 
(2
)
 
—

 
—

 
4,923

 
(2
)
 
RMBS
 
14,979

 
(280
)
 
166,329

 
(7,084
)
 
181,308

 
(7,364
)
 
CMBS
 
51,096

 
(358
)
 
138,769

 
(4,548
)
 
189,865

 
(4,906
)
 
CLOs
 
14,243

 
(7
)
 
3,568

 
(72
)
 
17,811

 
(79
)
 
Equity securities
 
226

 
(2
)
 
431

 
(14
)
 
657

 
(16
)
 
Total
 
$
1,667,170

 
$
(9,357
)
 
$
752,693

 
$
(22,206
)
 
$
2,419,863

 
$
(31,563
)