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Note 6 - Investments (Tables)

9 Months Ended

Sep. 30, 2020

Available for Sale Securities [Table Text Block]

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


	September 30, 2020
(In thousands)	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Fixed-maturities available for sale:
U.S. government and agency securities	$	186,457	$	—	$	2,105	$	(1,661)	$	186,901
State and municipal obligations	145,318		—		14,850		(193)		159,975
Corporate bonds and notes	2,703,446		(2,290)		218,127		(7,471)		2,911,812
RMBS	813,006		—		37,137		(30)		850,113
CMBS	686,414		—		37,339		(4,791)		718,962
Other ABS	811,687		—		4,051		(6,350)		809,388
Foreign government and agency securities	5,098		—		198		—		5,296

Total securities available for sale, including loaned securities	5,351,426		$	(2,290)	$	313,807	$	(20,496)	5,642,447
Less: loaned securities	12,890								13,455
Total fixed-maturities available for sale	$	5,338,536							$	5,628,992


	December 31, 2019
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Fixed-maturities available for sale:
U.S. government and agency securities	$	198,613	$	2,048	$	(733)	$	199,928
State and municipal obligations	112,003		8,032		(41)		119,994
Corporate bonds and notes	2,136,819		106,189		(1,728)		2,241,280
RMBS	766,429		14,452		(1,527)		779,354
CMBS	593,647		14,993		(625)		608,015
Other ABS	760,785		2,018		(3,674)		759,129
Foreign government and agency securities	5,091		133		—		5,224

Total securities available for sale, including loaned securities	4,573,387		$	147,865	$	(8,328)	4,712,924
Less: loaned securities	23,853						24,013
Total fixed-maturities available for sale	$	4,549,534					$	4,688,911

Debt Securities, Available-for-sale, Allowance for Credit Loss

The following table provides a rollforward of the allowance for credit losses on fixed-maturities available for sale, which relates entirely to corporate bonds and notes for the periods indicated:


(In thousands)	Three Months Ended September 30, 2020		Nine Months Ended September 30, 2020
Beginning balance	$	2,476	$	—
Current provision for securities without prior allowance	—		2,596
Net increases (decreases) in allowance on previously impaired securities	(186)		—
Reduction for securities sold	—		(306)
Ending balance	$	2,290	$	2,290

Gross Unrealized Losses and Fair Value of Available for Sale Securities [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 September 30, 2020 and December 31, 2019 are loaned securities under securities lending agreements that are classified as other assets in our condensed consolidated balance sheets, as further described below.


	September 30, 2020
($ in thousands) Description of Securities	Less Than 12 Months					12 Months or Greater					Total
	# of securities	Fair Value		Unrealized Losses		# of securities	Fair Value		Unrealized Losses		# of securities	Fair Value		Unrealized Losses
U.S. government and agency securities	4	$	99,250	$	(1,661)	—	$	—	$	—	4	$	99,250	$	(1,661)
State and municipal obligations	10	27,543		(193)		—	—		—		10	27,543		(193)
Corporate bonds and notes	130	306,915		(7,471)		—	—		—		130	306,915		(7,471)
RMBS	4	11,723		(19)		2	956		(11)		6	12,679		(30)
CMBS	60	176,482		(4,537)		6	7,146		(254)		66	183,628		(4,791)
Other ABS	101	308,637		(3,025)		29	152,098		(3,325)		130	460,735		(6,350)

Total	309	$	930,550	$	(16,906)	37	$	160,200	$	(3,590)	346	$	1,090,750	$	(20,496)


	December 31, 2019
($ in thousands) Description of Securities	Less Than 12 Months					12 Months or Greater					Total
	# of securities	Fair Value		Unrealized Losses		# of securities	Fair Value		Unrealized Losses		# of securities	Fair Value		Unrealized Losses
U.S. government and agency securities	2	$	26,142	$	(731)	2	$	2,529	$	(2)	4	$	28,671	$	(733)
State and municipal obligations	1	3,959		(41)		—	—		—		1	3,959		(41)
Corporate bonds and notes	25	110,871		(1,728)		—	—		—		25	110,871		(1,728)
RMBS	27	184,378		(535)		16	36,192		(992)		43	220,570		(1,527)
CMBS	36	109,589		(478)		8	6,346		(147)		44	115,935		(625)
Other ABS	63	225,944		(670)		44	209,661		(3,004)		107	435,605		(3,674)


Total	154	$	660,883	$	(4,183)	70	$	254,728	$	(4,145)	224	$	915,611	$	(8,328)

Net Gains (Losses) on Investments and Other Financial Instruments [Table Text Block]

Net gains (losses) on investments consisted of:


	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2020		2019		2020		2019
Net realized gains (losses):
Fixed-maturities available for sale (1)	$	13,777	$	4,401	$	31,998	$	5,209
Trading securities	—		19		4		(391)
Equity securities	—		(28)		361		(708)
Other investments	196		205		273		521
Net realized gains (losses) on investments	13,973		4,597		32,636		4,631
Impairment losses due to intent to sell	—		—		(1,401)		—
Net decrease (increase) in expected credit losses	186		—		(2,596)		—
Net unrealized gains (losses) on investments	2,813		4,419		916		33,005
Total net gains (losses) on investments	$	16,972	$	9,016	$	29,555	$	37,636

______________________

(1)Components of net realized gains (losses) on fixed-maturities available for sale include:


	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2020		2019		2020		2019
Gross investment gains from sales and redemptions	$	14,219	$	4,697	$	34,422	$	10,926
Gross investment losses from sales and redemptions	(442)		(296)		(2,424)		(5,717)

Net Changes in Unrealized Gains (Losses) Recognized in Earnings [Table Text Block]

The net changes in unrealized gains (losses) recognized in earnings on investments that were still held at each period-end were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2020		2019		2020		2019
Net unrealized gains (losses) on investments still held:
Trading securities	$	(1,150)	$	4,132	$	9,990	$	18,962
Equity securities	4,455		563		(8,158)		9,170
Other investments	(173)		47		152		(64)
Net unrealized gains (losses) on investments still held	$	3,132	$	4,742	$	1,984	$	28,068

Contractual Maturities [Table Text Block]

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


	September 30, 2020
	Available for Sale
(In thousands)	Amortized Cost		Fair Value
Due in one year or less (1)	$	94,375	$	94,832
Due after one year through five years (1)	984,406		1,034,592
Due after five years through 10 years (1)	1,246,319		1,351,007
Due after 10 years (1)	715,219		783,553
Asset-backed and other mortgage-backed securities (2)	2,311,107		2,378,463
Total	5,351,426		5,642,447
Less: loaned securities	12,890		13,455
Total fixed-maturities available for sale	$	5,338,536	$	5,628,992

______________________

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

(2)Includes RMBS, CMBS and Other ABS, which are not due at a single maturity date.