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Investments (Tables)
9 Months Ended
Sep. 30, 2021
Investments, Debt and Equity Securities [Abstract]  
Schedule of Available-For-Sale Fixed Maturities
Available-for-sale fixed maturities at September 30, 2021 and December 31, 2020 included the following:
September 30, 2021
(In thousands)Amortized
Cost
Gross Unrealized GainsGross Unrealized LossesEstimated Fair Value
Fixed maturities, available-for-sale
U.S. Treasury obligations$241,696 $1,681 $672 $242,705 
U.S. Government-sponsored enterprise obligations20,509 57 98 20,468 
State and municipal bonds513,111 11,155 1,559 522,707 
Corporate debt1,928,543 41,493 6,923 1,963,113 
Residential mortgage-backed securities475,368 5,513 2,972 477,909 
Agency commercial mortgage-backed securities14,531 460 49 14,942 
Other commercial mortgage-backed securities216,595 3,545 1,116 219,024 
Other asset-backed securities440,536 3,661 929 443,268 
$3,850,889 $67,565 $14,318 $3,904,136 
 December 31, 2020
(In thousands)Amortized
Cost
Allowance for Expected Credit LossesGross Unrealized GainsGross Unrealized LossesEstimated Fair Value
Fixed maturities, available-for-sale
U.S. Treasury obligations$104,097 $— $2,985 $23 $107,059 
U.S. Government-sponsored enterprise obligations12,103 — 158 — 12,261 
State and municipal bonds316,022 — 16,937 39 332,920 
Corporate debt1,267,992 552 63,204 1,302 1,329,342 
Residential mortgage-backed securities269,752 — 7,171 382 276,541 
Agency commercial mortgage-backed securities12,623 — 687 — 13,310 
Other commercial mortgage-backed securities109,244 — 4,788 940 113,092 
Other asset-backed securities269,742 — 4,006 742 273,006 
$2,361,575 $552 $99,936 $3,428 $2,457,531 
Schedule of Available-For-Sale Securities by Contractual Maturity
The recorded cost basis and estimated fair value of available-for-sale fixed maturities at September 30, 2021, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
(In thousands)Amortized
Cost
Due in one
year or less
Due after
one year
through
five years
Due after
five years
through
ten years
Due after
ten years
Total Fair
Value
Fixed maturities, available-for-sale
U.S. Treasury obligations$241,696 $19,945 $133,884 $86,726 $2,150 $242,705 
U.S. Government-sponsored enterprise obligations20,509 3,826 11,363 5,134 145 20,468 
State and municipal bonds513,111 15,273 174,664 188,717 144,053 522,707 
Corporate debt1,928,543 119,700 927,016 809,889 106,508 1,963,113 
Residential mortgage-backed securities475,368 477,909 
Agency commercial mortgage-backed securities14,531 14,942 
Other commercial mortgage-backed securities216,595 219,024 
Other asset-backed securities440,536 443,268 
$3,850,889 $3,904,136 
Schedule of Investments Held in an Unrealized Loss Position
The following tables provide summarized information with respect to investments held in an unrealized loss position at September 30, 2021 and December 31, 2020, including the length of time the investment had been held in a continuous unrealized loss position.
September 30, 2021
 TotalLess than 12 months12 months or longer
 FairUnrealizedFairUnrealizedFairUnrealized
(In thousands)ValueLossValueLossValueLoss
Fixed maturities, available-for-sale
U.S. Treasury obligations$162,063 $672 $157,445 $582 $4,618 $90 
U.S. Government-sponsored enterprise obligations14,422 98 14,422 98   
State and municipal bonds194,740 1,559 192,610 1,467 2,130 92 
Corporate debt637,694 6,923 607,003 6,134 30,691 789 
Residential mortgage-backed securities284,636 2,972 276,253 2,732 8,383 240 
Agency commercial mortgage-backed securities4,040 49 4,040 49   
Other commercial mortgage-backed securities77,254 1,116 72,541 783 4,713 333 
Other asset-backed securities166,667 929 162,161 867 4,506 62 
$1,541,516 $14,318 $1,486,475 $12,712 $55,041 $1,606 

December 31, 2020
 TotalLess than 12 months12 months or longer
 FairUnrealizedFairUnrealizedFairUnrealized
(In thousands)ValueLossValueLossValueLoss
Fixed maturities, available-for-sale
U.S. Treasury obligations$14,390 $23 $14,390 $23 $— $— 
State and municipal bonds6,416 39 6,416 39 — — 
Corporate debt94,695 1,302 79,436 1,020 15,259 282 
Residential mortgage-backed securities34,928 382 34,509 381 419 
Other commercial mortgage-backed securities18,766 940 18,480 935 286 
Other asset-backed securities43,739 742 37,850 701 5,889 41 
$212,934 $3,428 $191,081 $3,099 $21,853 $329 
Schedule of a Roll Forward of Cumulative Credit Losses Recorded in Earnings Related to Impaired Debt Securities The following tables present a roll forward of the allowance for expected credit losses on available-for-sale fixed maturities for the nine months ended September 30, 2021 and three and nine months ended September 30, 2020. There was no change in the allowance for expected credit losses for the three months ended September 30, 2021.
Nine Months Ended September 30, 2021
(In thousands)Corporate DebtTotal
Balance, at December 31, 2020$552 $552 
Reductions related to:
Securities sold during the period(552)(552)
Balance, at September 30, 2021$ $ 
Three Months Ended September 30, 2020
(In thousands)Corporate DebtTotal
Balance, at July 1, 2020$1,408 $1,408 
Reductions related to:
Securities sold during the period(856)(856)
Balance, at September 30, 2020$552 $552 
Nine Months Ended September 30, 2020
(In thousands)Corporate DebtTotal
Balance, at December 31, 2019$— $— 
Additional credit losses related to securities for which:
No allowance for credit losses has been previously recognized1,508 1,508 
Reductions related to:
Securities sold during the period(956)(956)
Balance, at September 30, 2020$552 $552 
Schedule of Other Information Regarding Available-For-Sale Securities
Other information regarding sales and purchases of fixed maturity available-for-sale securities is as follows:
Three Months Ended September 30Nine Months Ended September 30
(In millions)2021202020212020
Proceeds from sales (exclusive of maturities and paydowns)$85.4 $86.9 $343.5 $304.6 
Purchases$404.1 $317.5 $1,169.6 $689.4 
Schedule of Net Investment Income
Net investment income by investment category was as follows:
Three Months Ended
September 30
Nine Months Ended
September 30
(In thousands)2021202020212020
Fixed maturities$20,121 $16,902 $53,969 $52,863 
Equities648 706 1,790 3,598 
Short-term investments, including Other587 405 1,539 2,386 
BOLI622 655 1,752 1,568 
Investment fees and expenses(2,700)(1,744)(7,337)(4,538)
Net investment income$19,278 $16,924 $51,713 $55,877 
Schedule of Investment in Unconsolidated Subsidiaries
ProAssurance's investment in unconsolidated subsidiaries were as follows:
 September 30, 2021Carrying Value
(In thousands)Percentage
Ownership
September 30,
2021
December 31,
2020
Qualified affordable housing project tax credit partnershipsSee below$15,980 $27,719 
All other investments, primarily investment fund LPs/LLCs
See below301,889 282,810 
$317,869 $310,529 
Schedule of Equity Method Investments The results recorded and tax credits recognized related to ProAssurance's tax credit partnership investments were as follows:
Three Months Ended
September 30
Nine Months Ended
September 30
(In thousands)2021202020212020
Qualified affordable housing project tax credit partnerships
Losses recorded$3,591 $4,798 $11,712 $14,152 
Tax credits recognized$3,226 $4,369 $9,880 $13,106 
Historic tax credit partnership*
Losses (gains) recorded$ $(264)$(182)$1,820 
Tax credits recognized (reversed)$(100)$103 $ $309 
* ProAssurance holds a historic tax credit partnership which was fully amortized in 2020. ProAssurance received a distribution associated with this investment during the first quarter of 2021 as a result of positive cash flows from a project recognizing an operating gain. See further discussion on this investment in Note 3 of the Notes to the Consolidated Financial Statements in ProAssurance’s December 31, 2020 report on Form 10-K.
Schedule of Net Realized Investment Gains (Losses)
Realized investment gains and losses are recognized on the first-in, first-out basis. The following table provides detailed information regarding net realized investment gains (losses):
Three Months Ended
September 30
Nine Months Ended
September 30
(In thousands)2021202020212020
Total impairment losses:
Corporate debt$ $— $ $(1,745)
Portion of impairment losses recognized in other comprehensive income before taxes:
Corporate debt —  237 
Net impairment losses recognized in earnings
 —  (1,508)
Gross realized gains, available-for-sale fixed maturities2,225 3,996 12,540 10,941 
Gross realized (losses), available-for-sale fixed maturities(259)(396)(798)(2,266)
Net realized gains (losses), trading fixed maturities(47)116 17 268 
Net realized gains (losses), equity investments426 31 6,616 10,589 
Net realized gains (losses), other investments1,699 530 6,192 2,442 
Change in unrealized holding gains (losses), trading fixed maturities (49)373 (489)637 
Change in unrealized holding gains (losses), equity investments(945)2,766 (2,182)(21,012)
Change in unrealized holding gains (losses), convertible securities, carried at fair value (2,457)1,170 (2,118)(190)
Other(63)252 434 249 
Net realized investment gains (losses)$530 $8,838 $20,212 $150 
Schedule of Cumulative Credit Losses Recorded in Earnings Related to Impaired Debt Securities for Which a Portion of the OTTI has been Recorded in OCI
The following table presents a roll forward of cumulative credit losses recorded in earnings related to impaired debt securities for which a portion of the impairment was recorded in OCI.
Three Months Ended
September 30
Nine Months Ended
September 30
(In thousands)2021202020212020
Balance, beginning of period$ $1,322 $552 $470 
Additional credit losses recognized during the period, related to securities for which:
No impairment has been previously recognized —  1,064 
Impairment has been previously recognized —  258 
Reductions due to:
Securities sold during the period (realized) (770)(552)(1,240)
Balance, September 30$ $552 $ $552