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Investments (Tables)
 12 Months Ended
Dec. 31, 2019
Investments [Abstract]  
Amortized cost, gross unrealized gains and losses and fair value of investment portfolio
The amortized cost, gross unrealized gains and losses and fair value of our fixed income securities as of December 31, 2019 and 2018 are shown below:
Details of fixed income investment securities by category as of December 31, 2019
Table
5.1a
 
 
 
 
 
 
 
 
(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
 
$
195,176

 
$
1,237

 
$
(210
)
 
$
196,203

Obligations of U.S. states and political subdivisions
 
1,555,394

 
99,328

 
(857
)
 
1,653,865

Corporate debt securities
 
2,711,910

 
76,220

 
(3,008
)
 
2,785,122

ABS
 
227,376

 
2,466

 
(178
)
 
229,664

RMBS
 
271,384

 
429

 
(3,227
)
 
268,586

CMBS
 
274,234

 
5,531

 
(779
)
 
278,986

CLOs
 
327,076

 
33

 
(1,643
)
 
325,466

Total fixed income securities
 
$
5,562,550

 
$
185,244

 
$
(9,902
)
 
$
5,737,892

Details of fixed income investment securities by category as of December 31, 2018
Table
5.1b
 
 
 
 
 
 
 
 
(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
 
$
167,655

 
$
597

 
$
(1,076
)
 
$
167,176

Obligations of U.S. states and political subdivisions
 
1,701,826

 
29,259

 
(10,985
)
 
1,720,100

Corporate debt securities
 
2,439,173

 
2,103

 
(40,514
)
 
2,400,762

ABS
 
111,953

 
226

 
(146
)
 
112,033

RMBS
 
189,238

 
32

 
(10,309
)
 
178,961

CMBS
 
276,352

 
888

 
(9,580
)
 
267,660

CLOs
 
310,587

 
2

 
(5,294
)
 
305,295

Total fixed income securities
 
$
5,196,784

 
$
33,107

 
$
(77,904
)
 
$
5,151,987

(1) 
There were no OTTI losses recorded in other comprehensive (loss) income as of December 31, 2019 and 2018.
Amortized cost and fair values of debt securities by contractual maturity
Table 5.2 compares the amortized cost and fair values of fixed income securities, by contractual maturity, as of December 31, 2019. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations with or without call or prepayment penalties. Because most mortgage and asset-backed securities provide for periodic payments throughout their lives, they are listed separately in the table.
Fixed income securities maturity schedule
Table
5.2
 
 
 
 
 
 
December 31, 2019
(In thousands)
 
Amortized Cost
 
Fair Value
Due in one year or less
 
$
425,739

 
$
427,616

Due after one year through five years
 
1,911,433

 
1,952,278

Due after five years through ten years
 
1,031,056

 
1,088,012

Due after ten years
 
1,094,252

 
1,167,284

 
 
4,462,480

 
4,635,190

 
 
 
 
 
ABS
 
227,376

 
229,664

RMBS
 
271,384

 
268,586

CMBS
 
274,234

 
278,986

CLOs
 
327,076

 
325,466

Total as of December 31, 2019
 
$
5,562,550

 
$
5,737,892
Cost and fair value of investments in equity securities
The cost and fair value of investments in equity securities as of December 31, 2019 and December 31, 2018 are shown in tables 5.3a and 5.3b below. 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.
Details of equity investment securities as of December 31, 2019
Table
5.3a
 
 
 
 
 
 
 
 
(In thousands)
 
Cost
 
Gross gains
 
Gross losses
 
Fair Value
Equity securities
 
17,188

 
154

 
(14
)
 
17,328

Details of equity investment securities as of December 31, 2018
Table
5.3b
 
 
 
 
 
 
 
 
(In thousands)
 
Cost
 
Gross gains
 
Gross losses
 
Fair Value
Equity securities
 
3,993

 
11

 
(72
)
 
3,932
Aging of the fair values of securities in an unrealized loss position
Tables 5.4a and 5.4b below summarize, for all available-for-sale investments in an unrealized loss position as of December 31, 2019 and 2018, the aggregate fair value and gross unrealized losses by the length of time those securities have been continuously in an unrealized loss position. Gross unrealized losses on our available-for-sale investments amounted to $10 million and $78 million as of December 31, 2019 and 2018, respectively. The fair value amounts reported in tables 5.4a and 5.4b below are estimated using the process described in Note 6 - "Fair Value Measurements" to these consolidated financial statements.
Unrealized loss aging for securities by type and length of time as of December 31, 2019
Table
5.4a
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
$
57,301

 
$
(200
)
 
$
5,806

 
$
(10
)
 
$
63,107

 
$
(210
)
Obligations of U.S. states and political subdivisions
 
74,859

 
(847
)
 
6,957

 
(10
)
 
81,816

 
(857
)
Corporate debt securities
 
221,357

 
(2,847
)
 
43,505

 
(161
)
 
264,862

 
(3,008
)
ABS
 
21,542

 
(118
)
 
3,851

 
(60
)
 
25,393

 
(178
)
RMBS
 
105,443

 
(461
)
 
110,452

 
(2,766
)
 
215,895

 
(3,227
)
CMBS
 
62,388

 
(728
)
 
11,852

 
(51
)
 
74,240

 
(779
)
CLOs
 
81,444

 
(225
)
 
196,988

 
(1,418
)
 
278,432

 
(1,643
)
Total
 
$
624,334

 
$
(5,426
)
 
$
379,411

 
$
(4,476
)
 
$
1,003,745

 
$
(9,902
)
Unrealized loss aging for securities by type and length of time as of December 31, 2018
Table
5.4b
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
$
23,710

 
$
(15
)
 
$
69,146

 
$
(1,061
)
 
$
92,856

 
$
(1,076
)
Obligations of U.S. states and political subdivisions
 
316,655

 
(3,875
)
 
358,086

 
(7,110
)
 
674,741

 
(10,985
)
Corporate debt securities
 
1,272,279

 
(18,130
)
 
785,627

 
(22,384
)
 
2,057,906

 
(40,514
)
ABS
 
51,324

 
(146
)
 
—

 
—

 
51,324

 
(146
)
RMBS
 
24

 
—

 
178,573

 
(10,309
)
 
178,597

 
(10,309
)
CMBS
 
65,704

 
(1,060
)
 
163,272

 
(8,520
)
 
228,976

 
(9,580
)
CLOs
 
296,497

 
(5,294
)
 
—

 
—

 
296,497

 
(5,294
)
Total
 
$
2,026,193

 
$
(28,520
)
 
$
1,554,704

 
$
(49,384
)
 
$
3,580,897

 
$
(77,904
)
Net investment income
The source of net investment income is shown in table 5.5 below.
Net investment income
Table
5.5
 
 
 
 
 
 
(In thousands)
 
2019
 
2018
 
2017
Fixed income securities
 
$
165,523

 
$
140,539

 
$
122,105

Equity securities
 
406

 
228

 
206

Cash equivalents
 
4,444

 
3,423

 
1,447

Other
 
974

 
816

 
620

Investment income
 
171,347

 
145,006

 
124,378

Investment expenses
 
(4,302
)
 
(3,675
)
 
(3,507
)
Net investment income
 
$
167,045

 
$
141,331

 
$
120,871
Change in unrealized gains (losses) of investments
The change in unrealized gains (losses) of investments is shown in table 5.6 below.
Change in unrealized gains (losses)
Table
5.6
 
 
 
 
 
 
(In thousands)
 
2019
 
2018
 
2017
Fixed income securities
 
$
220,139

 
$
(81,834
)
 
$
69,026

Equity securities
 
—

 
—

 
39

Other
 
—

 
—

 
(13
)
Change in unrealized gains/losses
 
$
220,139

 
$
(81,834
)
 
$
69,052