XML 37 R27.htm IDEA: XBRL DOCUMENT

Investments (Tables)

6 Months Ended

Jun. 30, 2024

Schedule of Reconciliation of Cost to Fair Value, Net of Credit Loss Allowance, of Fixed Maturity Securities

The following tables summarize the amortized cost and estimated fair value, net of credit loss allowance, of our fixed maturity securities as of:


	June 30, 2024
(in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value




Available-for-sale securities:
Corporate debt securities (1)	$	621,229	$	3,560	$	12,740	$	612,049
Collateralized debt obligations	112,450		273		866		111,857
Commercial mortgage-backed securities	126,163		986		4,136		123,013
Residential mortgage-backed securities	144,923		58		16,990		127,991
Other debt securities	24,885		180		616		24,449
U.S. Treasury	1,043		0		18		1,025
Total available-for-sale securities, net	1,030,693		5,057		35,366		1,000,384

Held-to-maturity securities - states & political subdivisions	4,833		0		0		4,833

Total fixed maturity securities, net	$	1,035,526	$	5,057	$	35,366	$	1,005,217

(1)This includes an estimated fair value of $6.1 million of securities lent under a securities lending agreement.


	December 31, 2023
(in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
Available-for-sale securities:




Corporate debt securities	$	600,639	$	4,594	$	16,545	$	588,688
Collateralized debt obligations	114,400		156		2,088		112,468
Commercial mortgage-backed securities	106,019		1,410		4,709		102,720
Residential mortgage-backed securities	153,633		69		13,647		140,055
Other debt securities	17,862		136		688		17,310

Total available-for-sale securities, net	$	992,553	$	6,365	$	37,677	$	961,241

Schedule of Amortized Cost and Estimated Fair Value, Net of Credit Loss Allowance, of Fixed Maturity Securities by Remaining Contractual Term to Maturity

The amortized cost and estimated fair value of available-for-sale and held-to-maturity securities at June 30, 2024 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.


	June 30, 2024
	Amortized		Estimated
(in thousands)	cost		fair value
Available-for-sale securities:
Due in one year or less	$	47,471	$	46,768
Due after one year through five years	441,071		433,520
Due after five years through ten years	189,349		188,453
Due after ten years	352,802		331,643
Total available-for-sale securities, net (1) (2)	1,030,693		1,000,384

Held-to-maturity securities - due after ten years	4,833		4,833

Total fixed maturity securities, net	$	1,035,526	$	1,005,217

(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 Statement of Financial Position at June 30, 2024.

(2)This includes an estimated fair value of $6.1 million of securities lent under a securities lending agreement.

Schedule of Available-For-Sale Securities in a Gross Unrealized Loss Position by Length of Time

The following tables present available-for-sale securities based on length of time in a gross unrealized loss position as of:


	June 30, 2024
	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	$	119,642	$	909	$	256,352	$	11,831	$	375,994	$	12,740	611
Collateralized debt obligations	32,909		64		30,379		802		63,288		866		116
Commercial mortgage-backed securities	33,653		316		29,248		3,820		62,901		4,136		153
Residential mortgage-backed securities	12,704		308		112,051		16,682		124,755		16,990		166
Other debt securities	6,055		97		6,659		519		12,714		616		37
U.S. Treasury	1,025		18		0		0		1,025		18		1
Total available-for-sale securities	$	205,988	$	1,712	$	434,689	$	33,654	$	640,677	$	35,366	1,084
Quality breakdown of available-for-sale securities:
Investment grade	$	185,665	$	1,371	$	399,444	$	30,785	$	585,109	$	32,156	691
Non-investment grade	20,323		341		35,245		2,869		55,568		3,210		393
Total available-for-sale securities	$	205,988	$	1,712	$	434,689	$	33,654	$	640,677	$	35,366	1,084


	December 31, 2023
	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	$	50,853	$	546	$	338,322	$	15,999	$	389,175	$	16,545	590
Collateralized debt obligations	3,911		15		87,005		2,073		90,916		2,088		142
Commercial mortgage-backed securities	9,148		157		30,145		4,552		39,293		4,709		108
Residential mortgage-backed securities	30,271		297		101,761		13,350		132,032		13,647		164
Other debt securities	2,084		62		7,475		626		9,559		688		32

Total available-for-sale securities	$	96,267	$	1,077	$	564,708	$	36,600	$	660,975	$	37,677	1,036
Quality breakdown of available-for-sale securities:
Investment grade	$	87,774	$	807	$	517,090	$	32,511	$	604,864	$	33,318	651
Non-investment grade	8,493		270		47,618		4,089		56,111		4,359		385
Total available-for-sale securities	$	96,267	$	1,077	$	564,708	$	36,600	$	660,975	$	37,677	1,036

Schedule of Allowances for Credit Losses on Fixed Maturity Securities and Financing Receivables

The following tables present a roll-forward of the allowances for credit losses on fixed maturity securities and financing receivables:


	Three months ended June 30, 2024
(in thousands)	Available-for-sale securities		Held-to-maturity securities		Other loans receivable		Agent loans
Balance, beginning of period	$	575	$	2,167	$	11,253	$	957
Provision and recoveries	79		0		185		0
Sales/collections and write-offs	(151)		0		0		0
Balance, end of period	$	503	$	2,167	$	11,438	$	957


	Six months ended June 30, 2024
(in thousands)	Available-for-sale securities		Held-to-maturity securities		Other loans receivable		Agent loans
Balance, beginning of period	$	597	$	0	$	11,081	$	957
Provision and recoveries	243		2,167		357		0
Sales/collections and write-offs	(337)		0		0		0
Balance, end of period	$	503	$	2,167	$	11,438	$	957


	Three months ended June 30, 2023
(in thousands)	Available-for-sale securities		Held-to-maturity securities		Other loans receivable		Agent loans
Balance, beginning of period	$	348	$	—	$	3,709	$	957
Provision and recoveries	22		—		27		0
Sales/collections and write-offs	0		—		0		0
Balance, end of period	$	370	$	—	$	3,736	$	957


	Six months ended June 30, 2023
(in thousands)	Available-for-sale securities		Held-to-maturity securities		Other loans receivable		Agent loans
Balance, beginning of period	$	249	$	—	$	3,775	$	957
Provision and recoveries	223		—		59		0
Sales/collections and write-offs	(102)		—		(98)		0
Balance, end of period	$	370	$	—	$	3,736	$	957

Schedule of Investment Income (Loss), Net of Expenses

Investment income (loss), net of expenses, was generated from the following portfolios:


	Three months ended June 30,				Six months ended June 30,
(in thousands)	2024		2023		2024		2023
Available-for-sale securities	$	12,107	$	10,534	$	23,720	$	20,367
Equity securities	1,199		1,084		2,417		2,099
Limited partnerships (1)	(264)		40		261		(10,712)
Cash equivalents and other	3,389		1,922		6,337		4,027
Total investment income	16,431		13,580		32,735		15,781
Less: investment expenses	421		45		822		63
Net investment income	$	16,010	$	13,535	$	31,913	$	15,718

(1)Limited partnership (losses) income include 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.

Schedule of Net Realized and Unrealized Investment (Losses) Gains

Realized and unrealized gains (losses) on investments were as follows:


	Three months ended June 30,				Six months ended June 30,
(in thousands)	2024		2023		2024		2023
Available-for-sale securities:
Gross realized gains	$	417	$	100	$	687	$	306
Gross realized losses	(2,792)		(2,196)		(3,324)		(4,021)
Net realized losses on available-for-sale securities	(2,375)		(2,096)		(2,637)		(3,715)
Equity securities	580		359		2,695		(3,304)

Net realized and unrealized investment (losses) gains	$	(1,795)	$	(1,737)	$	58	$	(7,019)

The portion of net unrealized gains (losses) recognized during the reporting period related to equity securities held at the reporting date is calculated as follows:


	Three months ended June 30,				Six months ended June 30,
(in thousands)	2024		2023		2024		2023
Equity securities:
Net gains (losses) recognized during the period	$	580	$	359	$	2,695	$	(3,304)
Less: net gains (losses) recognized on securities sold	116		(78)		330		(2,704)
Net unrealized gains (losses) recognized on securities held at reporting date	$	464	$	437	$	2,365	$	(600)

Schedule of Impairments on Investments

Impairments on investments were as follows:


	Three months ended June 30,				Six months ended June 30,
(in thousands)	2024		2023		2024		2023
Available-for-sale securities:
Intent to sell	$	(124)	$	(149)	$	(298)	$	(1,581)
Credit impaired	(79)		(22)		(243)		(223)
Total available-for-sale securities	(203)		(171)		(541)		(1,804)
Expected credit losses:
Held-to-maturity securities	0		—		(2,167)		—

Other loans receivable	(185)		0		(357)		0
Net impairment losses recognized in earnings	$	(388)	$	(171)	$	(3,065)	$	(1,804)