XML 37 R15.htm IDEA: XBRL DOCUMENT v3.22.0.1
Investments
 12 Months Ended
Dec. 31, 2021
Investments [Abstract]  
Investments Investments
 
Available-for-sale securities
See Note 5, "Fair Value" for additional fair value disclosures. The following tables summarize the cost and fair value, net of credit loss allowance, of our available-for-sale securities as of:
December 31, 2021
(in thousands)Amortized costGross unrealized gainsGross unrealized lossesEstimated fair value
Corporate debt securities$565,997 $9,663 $2,495 $573,165 
Collateralized debt obligations115,344 456 338 115,462 
Commercial mortgage-backed securities88,636 1,465 777 89,324 
Residential mortgage-backed securities140,217 1,007 1,302 139,922 
Other debt securities23,859 197 136 23,920 
U.S. Treasury4,226 73 7 4,292 
Total available-for-sale securities, net$938,279 $12,861 $5,055 $946,085 


December 31, 2020
(in thousands)Amortized costGross unrealized gainsGross unrealized lossesEstimated fair value
Corporate debt securities$546,096 $21,843 $1,514 $566,425 
Collateralized debt obligations110,121 657 331 110,447 
Commercial mortgage-backed securities115,346 5,090 235 120,201 
Residential mortgage-backed securities108,840 3,373 34 112,179 
Other debt securities18,387 606 9 18,984 
Total available-for-sale securities, net$898,790 $31,569 $2,123 $928,236 


The amortized cost and estimated fair value of available-for-sale securities at December 31, 2021, 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.
December 31, 2021
AmortizedEstimated
(in thousands)costfair value
Due in one year or less $38,061 $38,396 
Due after one year through five years409,379 414,588 
Due after five years through ten years195,937 197,733 
Due after ten years294,902 295,368 
Total available-for-sale securities$938,279 $946,085 
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 tables present available-for-sale securities based on length of time in a gross unrealized loss position as of:
December 31, 2021
Less than 12 months12 months or longerTotal
FairUnrealizedFairUnrealizedFairUnrealizedNo. of
(dollars in thousands)valuelossesvaluelossesvaluelossesholdings
Corporate debt securities$179,281 $1,912 $12,494 $583 $191,775 $2,495 441 
Collateralized debt obligations64,270 278 9,370 60 73,640 338 104 
Commercial mortgage-backed securities28,001 595 917 182 28,918 777 61 
Residential mortgage-backed securities89,460 1,278 441 24 89,901 1,302 98 
Other debt securities14,576 136 0 0 14,576 136 24 
U.S. Treasury388 7 0 0 388 7 1 
Total available-for-sale securities$375,976 $4,206 $23,222 $849 $399,198 $5,055 729 
Quality breakdown of available-for-sale securities:       
Investment grade$330,697 $3,801 $17,112 $434 $347,809 $4,235 366 
Non-investment grade45,279 405 6,110 415 51,389 820 363 
Total available-for-sale securities$375,976 $4,206 $23,222 $849 $399,198 $5,055 729 


December 31, 2020
Less than 12 months12 months or longerTotal
FairUnrealizedFairUnrealizedFairUnrealizedNo. of
(dollars in thousands)valuelossesvaluelossesvaluelossesholdings
Corporate debt securities$39,693 $644 $7,952 $870 $47,645 $1,514 257 
Collateralized debt obligations50,036 232 10,899 99 60,935 331 65 
Commercial mortgage-backed securities16,582 235 0 0 16,582 235 31 
Residential mortgage-backed securities8,163 34 0 0 8,163 34 13 
Other debt securities1,019 9 0 0 1,019 9 4 
Total available-for-sale securities$115,493 $1,154 $18,851 $969 $134,344 $2,123 370 
Quality breakdown of available-for-sale securities:       
Investment grade$86,807 $561 $10,899 $99 $97,706 $660 119 
Non-investment grade28,686 593 7,952 870 36,638 1,463 251 
Total available-for-sale securities$115,493 $1,154 $18,851 $969 $134,344 $2,123 370 


Credit loss allowance on investments
The current expected credit loss allowance on agent loans was $1.0 million and $1.1 million as of December 31, 2021 and 2020, respectively. The current expected credit loss on available-for-sale securities was less than $0.1 million and $0.2 million as of December 31, 2021 and 2020, respectively.
 
Net investment income
Investment income (loss), net of expenses, was generated from the following portfolios for the years ended December 31:
(in thousands)202120202019
Available-for-sale securities$23,795 $22,631 $22,496 
Equity securities4,321 4,147 1,418 
Limited partnerships (1)
31,701 (602)660 
Cash equivalents and other3,609 5,038 10,546 
Total investment income63,426 31,214 35,120 
Less: investment expenses1,249 1,461 1,061 
Investment income, net of expenses$62,177 $29,753 $34,059 
(1)Equity in earnings (losses) of limited partnerships includes both realized gains (losses) and unrealized valuation changes. Our limited partnership investments are included in the line item "Other assets" in the Statements of Financial Position. We have made no new significant limited partnership commitments since 2006, and the balance of limited partnership investments is expected to decline over time as additional distributions are received.
Realized and unrealized investment gains (losses)
Realized and unrealized gains (losses) on investments were as follows for the years ended December 31:
(in thousands)202120202019
Available-for-sale securities:
Gross realized gains$6,884 $3,920 $6,258 
Gross realized losses(1,753)(2,585)(1,639)
Net realized gains on available-for-sale securities5,131 1,335 4,619 
Equity securities(186)5,056 1,484 
Miscellaneous1 1 0 
Net realized and unrealized investment gains$4,946 $6,392 $6,103 


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 years ended December 31:
(in thousands)202120202019
Equity securities:
Net (losses) gains recognized during the period$(186)$5,056 $1,484 
Less: net (losses) gains recognized on securities sold(76)(469)360 
Net unrealized (losses) gains recognized on securities held at reporting date$(110)$5,525 $1,124 


Net impairment recoveries (losses) recognized in earnings
Upon adoption of ASU 2016-13 on January 1, 2020, impairments on available-for-sale securities that are deemed to be credit related are recognized in earnings with a corresponding available-for-sale security allowance. All unrealized losses related to factors other than credit are recorded in other comprehensive income. Prior to January 1, 2020, we had the intent to sell all credit-impaired available-for-sale securities; therefore, the entire amount of the impairment charges was included in earnings and no impairments were recognized in other comprehensive income. See also Note 2, "Significant Accounting Policies".

Impairments on available-for-sale securities and agent loans were as follows for the years ended December 31:

(in thousands)202120202019
Available-for-sale securities:
Intent to sell$(10)$(2,274)$(195)
Credit recovered (impaired)67 (707)— 
Total available-for-sale securities57 (2,981)(195)
Agent loans - expected credit recoveries (losses)152 (297)— 
Net impairment recoveries (losses) recognized in earnings$209 $(3,278)$(195)