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Investments In Fixed Maturity Securities
 3 Months Ended
Mar. 31, 2020
Investments, Debt and Equity Securities [Abstract]  
Investments In Fixed Maturity Securities Investments in Fixed Maturity Securities
At March 31, 2020 and December 31, 2019, investments in fixed maturity securities were as follows:
 
(In thousands)
Amortized
Cost
 
Allowance for Expected Credit Losses (1)
 
Gross Unrealized
 
Fair
Value
 
Carrying
Value
Gains
 
Losses
 
March 31, 2020
 
 
 
 
 
 
 
 
 
 
 
Held to maturity:
 
 
 
 
 
 
 
 
 
 
 
State and municipal
$
70,971

 
$
(107
)
 
$
11,516

 
$
—

 
$
82,380

 
$
70,864

Residential mortgage-backed
7,888

 
—

 
808

 
—

 
8,696

 
7,888

Total held to maturity
78,859

 
(107
)
 
12,324

 
—

 
91,076

 
78,752

Available for sale:
 
 
 
 
 
 
 
 
 
 
 
U.S. government and government agency
715,890

 
—

 
23,830

 
(58
)
 
739,662

 
739,662

State and municipal:
 
 
 
 
 
 
 
 
 
 
 
Special revenue
2,283,655

 
—

 
53,529

 
(9,043
)
 
2,328,141

 
2,328,141

State general obligation
365,109

 
—

 
22,440

 
(1,592
)
 
385,957

 
385,957

Pre-refunded
311,077

 
—

 
18,281

 
(128
)
 
329,230

 
329,230

Corporate backed
254,887

 
—

 
4,880

 
(1,705
)
 
258,062

 
258,062

Local general obligation
412,291

 
—

 
34,985

 
(511
)
 
446,765

 
446,765

Total state and municipal
3,627,019

 
—

 
134,115

 
(12,979
)
 
3,748,155

 
3,748,155

Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
Residential
1,169,144

 
—

 
26,039

 
(15,480
)
 
1,179,703

 
1,179,703

Commercial
284,584

 
—

 
841

 
(9,688
)
 
275,737

 
275,737

Total mortgage-backed securities
1,453,728

 
—

 
26,880

 
(25,168
)
 
1,455,440

 
1,455,440

Asset-backed
3,123,627

 
—

 
2,415

 
(187,990
)
 
2,938,052

 
2,938,052

Corporate:
 
 
 
 
 
 
 
 
 
 
 
Industrial
2,175,423

 
(3,513
)
 
42,215

 
(62,365
)
 
2,151,760

 
2,151,760

Financial
1,482,371

 
(2,923
)
 
16,083

 
(28,128
)
 
1,467,403

 
1,467,403

Utilities
327,101

 
—

 
9,315

 
(1,838
)
 
334,578

 
334,578

Other
24,560

 
—

 
230

 
(14
)
 
24,776

 
24,776

Total corporate
4,009,455

 
(6,436
)
 
67,843

 
(92,345
)
 
3,978,517

 
3,978,517

Foreign government
809,869

 
(60,920
)
 
21,377

 
(42,837
)
 
727,489

 
727,489

Total available for sale
13,739,588

 
(67,356
)
 
276,460

 
(361,377
)
 
13,587,315

 
13,587,315

Total investments in fixed maturity securities
$
13,818,447

 
$
(67,463
)
 
$
288,784

 
$
(361,377
)
 
$
13,678,391

 
$
13,666,067

____________
(1) Represents the amount of impairment that has resulted from credit-related factors. The change in the allowance for expected credit losses, excluding the cumulative effect adjustment resulting from changes in accounting principles, is recognized in the consolidated statements of (loss) income. Amount excludes unrealized losses relating to non-credit factors.
(In thousands)
Amortized
Cost
 
Gross Unrealized
 
Fair
Value
 
Carrying
Value
Gains
 
Losses
December 31, 2019
 
 
 
 
 
 
 
 
 
Held to maturity:
 
 
 
 
 
 
 
 
 
State and municipal
$
70,312

 
$
13,000

 
$
—

 
$
83,312

 
$
70,312

Residential mortgage-backed
8,371

 
994

 
—

 
9,365

 
8,371

Total held to maturity
78,683

 
13,994

 
—

 
92,677

 
78,683

Available for sale:
 
 
 
 
 
 
 
 
 
U.S. government and government agency
775,157

 
13,249

 
(1,475
)
 
786,931

 
786,931

State and municipal:
 
 
 
 
 
 
 
 
 
Special revenue
2,343,209

 
64,586

 
(4,152
)
 
2,403,643

 
2,403,643

State general obligation
359,298

 
22,074

 
(97
)
 
381,275

 
381,275

Pre-refunded
364,571

 
20,342

 
(128
)
 
384,785

 
384,785

Corporate backed
255,230

 
7,232

 
(903
)
 
261,559

 
261,559

Local general obligation
432,333

 
32,684

 
(647
)
 
464,370

 
464,370

Total state and municipal
3,754,641

 
146,918

 
(5,927
)
 
3,895,632

 
3,895,632

Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
Residential
1,298,145

 
23,230

 
(5,155
)
 
1,316,220

 
1,316,220

Commercial
304,506

 
5,214

 
(346
)
 
309,374

 
309,374

Total mortgage-backed securities
1,602,651

 
28,444

 
(5,501
)
 
1,625,594

 
1,625,594

Asset-backed
2,802,588

 
9,532

 
(21,490
)
 
2,790,630

 
2,790,630

Corporate:
 
 
 
 
 
 
 
 
 
Industrial
2,260,073

 
72,900

 
(3,800
)
 
2,329,173

 
2,329,173

Financial
1,447,589

 
37,681

 
(4,118
)
 
1,481,152

 
1,481,152

Utilities
325,762

 
15,281

 
(402
)
 
340,641

 
340,641

Other
5,219

 
230

 
—

 
5,449

 
5,449

Total corporate
4,038,643

 
126,092

 
(8,320
)
 
4,156,415

 
4,156,415

Foreign government
924,284

 
16,465

 
(93,673
)
 
847,076

 
847,076

Total available for sale
13,897,964

 
340,700

 
(136,386
)
 
14,102,278

 
14,102,278

Total investments in fixed maturity securities
$
13,976,647


$
354,694

 
$
(136,386
)
 
$
14,194,955

 
$
14,180,961




The following table presents the rollforward of the allowance for expected credit losses for held to maturity securities for the period ended March 31, 2020:
 
State and Municipal
(In thousands)
Allowance for expected credit losses at January 1, 2020
$
—

Cumulative effect adjustment resulting from changes in accounting principles
69

Provision for expected credit losses
38

Allowance for expected credit losses at March 31, 2020
$
107











The following table presents the rollforward of the allowance for expected credit losses for available for sale securities for the period ended March 31, 2020:
 
Foreign Government
 
Corporate
 
Total
(In thousands)
 
 
Allowance for expected credit losses at January 1, 2020
$
—

 
$
—

 
$
—

Cumulative effect adjustment resulting from changes in accounting principles
35,645

 
—

 
35,645

Expected credit losses on securities for which credit losses were not previously recorded
12,494

 
6,436

 
18,930

Expected credit losses on securities for which credit losses were previously recorded
16,369

 
—

 
16,369

Reduction due to disposals
(3,588
)
 
—

 
(3,588
)
Allowance for expected credit losses at March 31, 2020
$
60,920

 
$
6,436

 
$
67,356


During the three months ended March 31, 2020, the Company increased the allowance for expected credit losses utilizing its credit loss assessment process and inputs used in its credit loss model, primarily due to the negative impact to the financial markets caused by COVID-19. As a result, the Company recognized an initial allowance for expected credit losses on securities that previously did not have an allowance, and increased the allowance for expected credit losses on existing securities due to higher default rate and lower recovery rate assumptions.    
The amortized cost and fair value of fixed maturity securities at March 31, 2020, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because certain issuers may have the right to call or prepay obligations. 
(In thousands)
Amortized
Cost (1)
 
Fair
Value
Due in one year or less
$
867,594

 
$
845,806

Due after one year through five years
4,927,863

 
4,921,159

Due after five years through ten years
3,366,555

 
3,369,995

Due after ten years
3,194,713

 
3,077,295

Mortgage-backed securities
1,461,616

 
1,464,136

Total
$
13,818,341

 
$
13,678,391


____________
(1) Amortized cost includes the allowance for expected credit losses of $107 thousand related to held to maturity securities.    
At March 31, 2020 and December 31, 2019, there were no investments that exceeded 10% of common stockholders' equity, other than investments in United States government and government agency securities.