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Investments (Tables)
 3 Months Ended
Mar. 31, 2020
Investments [Abstract]  
Schedule of Reconciliation of Cost to Fair Value, Net of Credit Loss Allowance, of Available-For-Sale Securities The following tables summarize the cost and fair value, net of credit loss allowance, of our available-for-sale securities as of:
 
 
March 31, 2020
 (in thousands)
 
Amortized
cost
 
Gross unrealized gains
 
Gross unrealized losses (1)
 
Estimated fair value
Corporate debt securities
 
$
460,508

 
$
1,954

 
$
23,165

 
$
439,297

Residential mortgage-backed securities
 
124,082

 
3,748

 
413

 
127,417

Commercial mortgage-backed securities
 
91,355

 
976

 
3,729

 
88,602

Collateralized debt obligations
 
94,210

 
40

 
6,635

 
87,615

Other debt securities
 
9,163

 
84

 
525

 
8,722

Total available-for-sale securities, net
 
$
779,318

 
$
6,802

 
$
34,467

 
$
751,653

(1)
The increase in gross unrealized losses in the first quarter of 2020 is primarily due to the financial market volatility resulting from the COVID-19 pandemic.
 
 
 
December 31, 2019
(in thousands)
 
Amortized
cost
 
Gross unrealized gains
 
Gross unrealized losses
 
Estimated fair value
Corporate debt securities
 
$
450,295

 
$
6,289

 
$
1,704

 
$
454,880

Residential mortgage-backed securities
 
124,337

 
1,056

 
50

 
125,343

Commercial mortgage-backed securities
 
67,210

 
479

 
148

 
67,541

Collateralized debt obligations
 
78,059

 
44

 
247

 
77,856

Other debt securities
 
5,049

 
71

 
39

 
5,081

Total available-for-sale securities, net
 
$
724,950

 
$
7,939

 
$
2,188

 
$
730,701
Schedule of Amortized Cost and Estimated Fair Value of Available-For-Sale Securities by Remaining Contractual Term to Maturity
The amortized cost and estimated fair value of available-for-sale securities at March 31, 2020 are shown below by remaining contractual term to maturity.  Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
 
 
March 31, 2020
 
 
Amortized
 
Estimated
(in thousands)
 
cost
 
fair value
Due in one year or less
 
$
27,108

 
$
26,764

Due after one year through five years
 
344,995

 
333,389

Due after five years through ten years
 
134,580

 
125,505

Due after ten years
 
272,635

 
265,995

Total available-for-sale securities (1)
 
$
779,318

 
$
751,653


(1)
The contractual maturities of our available-for-sale securities are included in the table. However, given our intent to sell certain impaired securities, these securities are classified as current assets in our Statements of Financial Position at March 31, 2020.
Schedule of Available-For-Sale Securities in a Gross Unrealized Loss Position by Length of Time
The below securities have been evaluated and determined to be temporary declines in fair value for which we expect to recover our entire principal plus interest.  The following table presents available-for-sale securities based on length of time in a gross unrealized loss position as of:
 
 
March 31, 2020
 
 
Less than 12 months
 
12 months or longer
 
Total
(dollars in thousands)
 
Fair
value
 
Unrealized losses
 
Fair
value
 
Unrealized losses
 
Fair
 value
 
Unrealized losses
 
No. of holdings
Corporate debt securities
 
$
299,653

 
$
20,247

 
$
6,822

 
$
2,918

 
$
306,475

 
$
23,165

 
662

Residential mortgage-backed securities
 
2,798

 
413

 
0

 
0

 
2,798

 
413

 
4

Commercial mortgage-backed securities
 
59,786

 
3,729

 
0

 
0

 
59,786

 
3,729

 
73

Collateralized debt obligations
 
72,456

 
5,490

 
13,122

 
1,145

 
85,578

 
6,635

 
87

Other debt securities
 
6,358

 
525

 
0

 
0

 
6,358

 
525

 
15

Total available-for-sale securities
 
$
441,051

 
$
30,404

 
$
19,944

 
$
4,063

 
$
460,995

 
$
34,467

 
841

Quality breakdown of available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment grade
 
$
362,145

 
$
19,158

 
$
13,122

 
$
1,146

 
$
375,267

 
$
20,304

 
298

Non-investment grade
 
78,906

 
11,246

 
6,822

 
2,917

 
85,728

 
14,163

 
543

Total available-for-sale securities
 
$
441,051

 
$
30,404

 
$
19,944

 
$
4,063

 
$
460,995

 
$
34,467

 
841



 
 
December 31, 2019
 
 
Less than 12 months
 
12 months or longer
 
Total
(dollars in thousands)
 
Fair
value
 
Unrealized
losses
 
Fair
value
 
Unrealized
losses
 
Fair
value
 
Unrealized
losses
 
No. of
holdings
Corporate debt securities
 
$
25,804

 
$
342

 
$
15,699

 
$
1,362

 
$
41,503

 
$
1,704

 
158

Residential mortgage-backed securities
 
16,712

 
50

 
0

 
0

 
16,712

 
50

 
7

Commercial mortgage-backed securities
 
21,981

 
147

 
372

 
1

 
22,353

 
148

 
30

Collateralized debt obligations
 
20,889

 
33

 
41,010

 
214

 
61,899

 
247

 
49

Other debt securities
 
2,350

 
39

 
0

 
0

 
2,350

 
39

 
2

Total available-for-sale securities
 
$
87,736

 
$
611

 
$
57,081

 
$
1,577

 
$
144,817

 
$
2,188

 
246

Quality breakdown of available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment grade
 
$
76,315

 
$
287

 
$
46,390

 
$
218

 
$
122,705

 
$
505

 
100

Non-investment grade
 
11,421

 
324

 
10,691

 
1,359

 
22,112

 
1,683

 
146

Total available-for-sale securities
 
$
87,736

 
$
611

 
$
57,081

 
$
1,577

 
$
144,817

 
$
2,188

 
246
Schedule of Investment Income, Net of Expenses, from Portfolios
Investment income, net of expenses, was generated from the following portfolios for the three months ended March 31:
(in thousands)
 
2020
 
2019
Available-for sale securities
 
$
5,788

 
$
6,161

Equity securities
 
856

 
141

Cash equivalents and other
 
1,974

 
2,465

Total investment income
 
8,618

 
8,767

Less: investment expenses
 
249

 
250

Investment income, net of expenses
 
$
8,369

 
$
8,517
Schedule of Realized Gains and Losses on Investments and Net Unrealized Gains and Losses Recognized during the Reporting Period Related to Equity Securities Held at the Reporting Date
Realized (losses) gains on investments were as follows for the three months ended March 31:
(in thousands)
 
2020
 
2019
Available-for-sale securities:
 
 

 
 

Gross realized gains
 
$
1,074

 
$
2,258

Gross realized losses
 
(459
)
 
(340
)
Net realized gains on available-for-sale securities
 
615

 
1,918

Equity securities (1)
 
(11,422
)
 
585

Miscellaneous
 
1

 
—

Net realized investment (losses) gains
 
$
(10,806
)
 
$
2,503

(1)
The increase in net losses recognized on equity securities in the first quarter of 2020 is primarily due to the financial market volatility resulting from the COVID-19 pandemic.


The portion of net unrealized gains and losses recognized during the reporting period related to equity securities held at the reporting date is calculated as follows for the three months ended March 31:
(in thousands)
 
2020
 
2019
Equity securities:
 
 
 
 
Net (losses) gains recognized during the period (1)
 
$
(11,422
)
 
$
585

Less: net losses recognized on securities sold
 
(37
)
 
0

Net unrealized (losses) gains recognized on securities held at reporting date
 
$
(11,385
)
 
$
585


(1)
The increase in net losses recognized on equity securities in the first quarter of 2020 is primarily due to the financial market volatility resulting from the COVID-19 pandemic.
Schedule of Impairments on Available-For-Sale Securities and Agent Loans
Impairments on available-for-sale securities and agent loans were as follows for the three months ended March 31:
(in thousands)
 
2020
 
2019
Available-for-sale securities:
 
 

 
 

Intent to sell
 
$
2,242

 
$
78

Credit impaired
 
641

 
—

Total available-for-sale securities
 
2,883

 
78

Agent loans - expected credit losses
 
170

 
—

Net impairment losses recognized in earnings
 
$
3,053

 
$
78
Schedule of Impairments on Available-For-Sale Securities and Agent Loans
Impairments on available-for-sale securities and agent loans were as follows for the three months ended March 31:
(in thousands)
 
2020
 
2019
Available-for-sale securities:
 
 

 
 

Intent to sell
 
$
2,242

 
$
78

Credit impaired
 
641

 
—

Total available-for-sale securities
 
2,883

 
78

Agent loans - expected credit losses
 
170

 
—

Net impairment losses recognized in earnings
 
$
3,053

 
$
78