Note 5 - Investments (Tables)

6 Months Ended

Jun. 30, 2018

Schedule of Securities Financing Transactions [Table Text Block]

Key balances related to our securities lending agreements consisted of the following as of the dates indicated:



(In thousands)	June 30, 2018		December 31, 2017
Loaned securities (1):
Corporate bonds and notes	$	16,199	$	13,862
Foreign government and agency securities	222		867
Equity securities	21,929		13,235
Total loaned securities, at fair value	$	38,350	$	27,964

Total loaned securities, at amortized cost	$	39,503	$	27,846
Securities collateral on deposit from Borrowers (2)	92		9,342
Reinvested cash collateral, at estimated fair value (3)	39,224		19,357

______________________


(1)	Our securities loaned under securities lending agreements are reported at fair value within other assets in our condensed consolidated balance sheets. All of our securities lending agreements are classified as overnight and revolving. None of the amounts are subject to offsetting.


(2)	Securities collateral on deposit with us from Borrowers may not be transferred or re-pledged unless the Borrower is in default, and is therefore not reflected in our condensed consolidated financial statements.


(3)	All cash collateral received has been reinvested in accordance with the securities lending agreements and is included in short-term investments in our condensed consolidated balance sheets. Amounts payable on the return of cash collateral under securities lending agreements are included within other liabilities in our condensed consolidated balance sheets.

Unrealized Gain (Loss) on Investments [Table Text Block]

The net changes in unrealized gains (losses) from trading securities and equity securities still held at period end were as follows for the periods indicated:



	Three Months Ended June 30,					Six Months Ended June 30,
(In thousands)	2018			2017		2018			2017
Net changes in unrealized gains (losses) (1):
Equity securities	$	224		$	—	$	(702	)	$	—
Trading securities (2)	(5,801		)	5,913		(16,801		)	7,979
Net unrealized gains (losses) on investment securities	$	(5,577	)	$	5,913	$	(17,503	)	$	7,979

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(1)	Related only to securities still held at period end. All amounts shown are included in net gains (losses) on investments and other financial instruments. Prior to the implementation of the update to the standard for the accounting of financial instruments effective January 1, 2018, the unrealized losses associated with equity securities were classified in accumulated other comprehensive income.


(2)	Includes a de minimis amount of net changes in unrealized gains (losses) related to short-term securities.

Our available for sale securities within our investment portfolio consisted of the following as of the dates indicated:



	June 30, 2018
(In thousands)	Amortized Cost		Fair Value			Gross Unrealized Gains		Gross Unrealized Losses
Fixed-maturities available for sale:
U.S. government and agency securities	$	72,811	$	71,045	(1)	$	1	$	1,767
State and municipal obligations	136,649		137,699			2,957		1,907
Corporate bonds and notes	1,987,444		1,933,044			4,617		59,017
RMBS	249,577		243,659		(2)	1		5,919
CMBS	487,805		477,751			228		10,282
Other ABS	694,613		692,564			1,132		3,181
Foreign government and agency securities	46,826		46,290			116		652
Total fixed-maturities available for sale	$	3,675,725	$	3,602,052	(3)	$	9,052	$	82,725

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(1)	Includes securities with a fair value of $10.6 million serving as collateral for FHLB advances.


(2)	Includes securities with a fair value of $112.2 million serving as collateral for FHLB advances.


(3)	Includes $16.0 million of fixed maturity securities loaned to third-party Borrowers under securities lending agreements, classified as other assets in our condensed consolidated balance sheets, as further described below.



	December 31, 2017
(In thousands)	Amortized Cost		Fair Value			Gross Unrealized Gains		Gross Unrealized Losses
Fixed-maturities available for sale:
U.S. government and agency securities	$	69,667	$	69,396		$	96	$	367
State and municipal obligations	156,587		161,722			5,834		699
Corporate bonds and notes	1,869,318		1,894,886			33,620		8,052
RMBS	189,455		187,229			636		2,862
CMBS	451,595		453,394			3,409		1,610
Other ABS	672,715		674,548			2,655		822
Foreign government and agency securities	31,417		32,207			823		33
Total fixed-maturities available for sale	3,440,754		3,473,382		(1)	47,073		14,445
Equity securities available for sale (2)	176,349		176,065		(1)	1,705		1,989
Total debt and equity securities available for sale	$	3,617,103	$	3,649,447		$	48,778	$	16,434

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(1)	Includes $14.7 million of fixed maturity securities and $13.2 million of equity securities loaned to third-party Borrowers under securities lending agreements, classified as other assets in our condensed consolidated balance sheets, as further described below.


(2)	Primarily consists of investments in fixed-income and equity exchange-traded funds and publicly-traded business development company equities.

For the six months ended June 30, 2018, we did not transfer any securities from the available for sale or trading categories.

Schedule Of Unrealized Losses [Table Text Block]

the following tables show the gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of the dates indicated. Included in the amounts as of June 30, 2018 and December 31, 2017 are loaned securities under securities lending agreements that are classified as other assets in our condensed consolidated balance sheets, as further described below.



	June 30, 2018
($ in thousands) Description of Securities	Less Than 12 Months					12 Months or Greater					Total
($ in thousands) Description of Securities	# of securities	Fair Value		Unrealized Losses		# of securities	Fair Value		Unrealized Losses		# of securities	Fair Value		Unrealized Losses
U.S. government and agency securities	8	$	41,506	$	1,253	3	$	9,502	$	514	11	$	51,008	$	1,767
State and municipal obligations	27	78,350		1,907		—	—		—		27	78,350		1,907
Corporate bonds and notes	406	1,548,096		50,572		29	119,977		8,445		435	1,668,073		59,017
RMBS	24	168,364		2,175		27	75,189		3,744		51	243,553		5,919
CMBS	76	436,659		9,898		8	8,222		384		84	444,881		10,282
Other ABS	124	423,815		3,063		10	15,436		118		134	439,251		3,181
Foreign government and agency securities	26	39,520		652		—	—		—		26	39,520		652
Total	691	$	2,736,310	$	69,520	77	$	228,326	$	13,205	768	$	2,964,636	$	82,725



	December 31, 2017
($ in thousands) Description of Securities	Less Than 12 Months					12 Months or Greater					Total
($ in thousands) Description of Securities	# of securities	Fair Value		Unrealized Losses		# of securities	Fair Value		Unrealized Losses		# of securities	Fair Value		Unrealized Losses
U.S. government and agency securities	6	$	23,309	$	129	3	$	9,799	$	238	9	$	33,108	$	367
State and municipal obligations	21	65,898		699		—	—		—		21	65,898		699
Corporate bonds and notes	152	672,318		4,601		32	139,105		3,451		184	811,423		8,052
RMBS	8	19,943		204		26	101,812		2,658		34	121,755		2,862
CMBS	35	139,353		1,395		4	3,518		215		39	142,871		1,610
Other ABS	92	260,864		777		7	8,297		45		99	269,161		822
Foreign government and agency securities	5	7,397		33		—	—		—		5	7,397		33
Equity securities	13	149,785		1,989		—	—		—		13	149,785		1,989
Total	332	$	1,338,867	$	9,827	72	$	262,531	$	6,607	404	$	1,601,398	$	16,434

Trading Securities (and Certain Trading Assets) [Table Text Block]

The trading securities within our investment portfolio, which are recorded at fair value, consisted of the following as of the dates indicated:



(In thousands)	June 30, 2018		December 31, 2017
Trading securities:
State and municipal obligations	$	200,702	$	214,841
Corporate bonds and notes	256,652		307,271
RMBS	24,790		29,520
CMBS	49,347		50,561
Foreign government and agency securities	4,143		4,241
Total (1)	$	535,634	$	606,434

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(1)	At December 31, 2017, includes a de minimis amount of loaned securities under securities lending agreements that are classified as other assets in our consolidated balance sheets, as further described below.

Gain (Loss) on Investments [Table Text Block]

Net gains (losses) on investments and other financial instruments consisted of:



	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands)	2018			2017			2018			2017
Net realized gains (losses):
Fixed-maturities available for sale	$	(1,691	)	$	(1,180	)	$	(4,811	)	$	(3,689	)
Equity securities	498			385			640			385
Trading securities	(112		)	(349		)	(650		)	(6,043		)
Short-term investments	(7		)	(38		)	(7		)	(32		)
Other invested assets	201			—			263			—
Other gains (losses)	23			—			35			18
Net realized gains (losses) on investments	(1,088		)	(1,182		)	(4,530		)	(9,361		)
Other-than-temporary impairment losses	—			(1,000		)	(844		)	(1,000		)
Net unrealized gains (losses) on investment securities (1)	(5,733		)	6,938			(18,537		)	12,164
Total net gains (losses) on investments	(6,821		)	4,756			(23,911		)	1,803
Net gains (losses) on other financial instruments	(583		)	575			(2,380		)	677
Net gains (losses) on investments and other financial instruments	$	(7,404	)	$	5,331		$	(26,291	)	$	2,480

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(1)

These amounts include unrealized gains (losses) on investment securities other than securities available for sale. For the three and six months ended June 30, 2017, the unrealized gains (losses) on investments exclude the net change in unrealized gains and losses on equity securities. Prior to the implementation of the update to the standard for the accounting of financial instruments effective January 1, 2018, the unrealized gains (losses) associated with equity securities were classified in accumulated other comprehensive income.

Investments Classified by Contractual Maturity Date [Table Text Block]

The contractual maturities of fixed-maturity investments available for sale were as follows:



	June 30, 2018
	Available for Sale
(In thousands)	Amortized Cost		Fair Value
Due in one year or less (1)	$	45,836	$	45,694
Due after one year through five years (1)	789,095		774,712
Due after five years through 10 years (1)	1,012,314		973,838
Due after 10 years (1)	396,485		393,834
RMBS (2)	249,577		243,659
CMBS (2)	487,805		477,751
Other ABS (2)	694,613		692,564
Total (3)	$	3,675,725	$	3,602,052

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(1)	Actual maturities may differ as a result of calls before scheduled maturity.


(2)	RMBS, CMBS and Other ABS are shown separately, as they are not due at a single maturity date.


(3)	Includes securities loaned under securities lending agreements.

- Definition

Tabular disclosure of the realized and unrealized gains and losses reported in the statement of income which have resulted from the sale and holding of marketable securities, respectively, as well as the sale or disposal of cost method investments. Such amounts would include realized gains and losses on the sale or disposal of trading, available-for-sale, and held-to-maturity securities, unrealized gains and losses on trading securities, unrealized gains and losses on available-for-sale and held-to-maturity securities transferred to the trading securities category, realized gains and losses on the sale or disposal of cost method investments, and losses recognized for other than temporary impairments (OTTI) of such investments.

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