Investments In Fixed Maturity Securities

3 Months Ended

Mar. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Investments In Fixed Maturity Securities

Investments in Fixed Maturity Securities

    At March 31, 2022 and December 31, 2021, 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, 2022
Held to maturity:
State and municipal	$	70,165	$	(378)	$	7,094	$	—	$	76,881	$	69,787
Residential mortgage-backed	4,455		—		324		—		4,779		4,455
Total held to maturity	74,620		(378)		7,418		—		81,660		74,242
Available for sale:
U.S. government and government agency	837,167		—		2,397		(20,716)		818,848		818,848
State and municipal:
Special revenue	1,948,586		—		12,944		(44,803)		1,916,727		1,916,727
State general obligation	378,408		—		7,043		(6,574)		378,877		378,877
Pre-refunded	165,882		—		6,216		—		172,098		172,098
Corporate backed	175,070		—		1,407		(4,472)		172,005		172,005
Local general obligation	410,058		—		11,184		(5,075)		416,167		416,167
Total state and municipal	3,078,004		—		38,794		(60,924)		3,055,874		3,055,874
Mortgage-backed:
Residential	1,179,468		—		2,417		(60,650)		1,121,235		1,121,235
Commercial	266,921		—		339		(3,759)		263,501		263,501
Total mortgage-backed	1,446,389		—		2,756		(64,409)		1,384,736		1,384,736
Asset-backed	4,319,535		—		1,459		(63,573)		4,257,421		4,257,421
Corporate:
Industrial	3,373,710				12,708		(115,614)		3,270,804		3,270,804
Financial	1,747,275		—		4,612		(45,155)		1,706,732		1,706,732
Utilities	422,354		—		1,806		(14,434)		409,726		409,726
Other	206,526		—		47		(5,328)		201,245		201,245
Total corporate	5,749,865		—		19,173		(180,531)		5,588,507		5,588,507
Foreign government	1,333,123		(26,153)		3,411		(63,813)		1,246,568		1,246,568
Total available for sale	16,764,083		(26,153)		67,990		(453,966)		16,351,954		16,351,954
Total investments in fixed maturity securities	$	16,838,703	$	(26,531)	$	75,408	$	(453,966)	$	16,433,614	$	16,426,196

____________

(1) Represents the amount of impairment that has resulted from credit-related factors. The change in the allowance for expected credit losses is recognized in the consolidated statements of income. Amount excludes unrealized losses relating to non-credit factors.

(In thousands)	Amortized Cost		Allowance for Expected Credit Losses (1)		Gross Unrealized				Fair Value		Carrying Value
					Gains		Losses
December 31, 2021
Held to maturity:
State and municipal	$	69,539	$	(387)	$	10,813	$	—	$	79,965	$	69,152
Residential mortgage-backed	4,829		—		632		—		5,461		4,829
Total held to maturity	74,368		(387)		11,445		—		85,426		73,981
Available for sale:
U.S. government and government agency	851,128		—		8,509		(4,294)		855,343		855,343
State and municipal:
Special revenue	2,016,382		—		62,961		(5,706)		2,073,637		2,073,637
State general obligation	388,110		—		23,152		(1,015)		410,247		410,247
Pre-refunded	202,633		—		14,891		(574)		216,950		216,950
Corporate backed	166,943		—		7,191		(1,532)		172,602		172,602
Local general obligation	401,974		—		29,455		(732)		430,697		430,697
Total state and municipal	3,176,042		—		137,650		(9,559)		3,304,133		3,304,133
Mortgage-backed:
Residential	940,744		—		9,896		(11,321)		939,319		939,319
Commercial	125,709		—		3,388		(341)		128,756		128,756
Total mortgage-backed securities	1,066,453		—		13,284		(11,662)		1,068,075		1,068,075
Asset-backed	4,504,950		—		4,409		(18,794)		4,490,565		4,490,565
Corporate:
Industrial	3,231,520		(16)		62,751		(21,092)		3,273,163		3,273,163
Financial	1,739,282		—		30,709		(6,591)		1,763,400		1,763,400
Utilities	396,242		—		13,262		(3,202)		406,302		406,302
Other	154,210		—		125		(1,525)		152,810		152,810
Total corporate	5,521,254		(16)		106,847		(32,410)		5,595,675		5,595,675
Foreign government	1,277,109		(22,222)		7,508		(47,494)		1,214,901		1,214,901
Total available for sale	16,396,936		(22,238)		278,207		(124,213)		16,528,692		16,528,692
Total investments in fixed maturity securities	$	16,471,304	$	(22,625)	$	289,652	$	(124,213)	$	16,614,118	$	16,602,673

____________

(1) Represents the amount of impairment that has resulted from credit-related factors. The change in the allowance for expected credit losses is recognized in the consolidated statements of income. Amount excludes unrealized losses relating to non-credit factors.

The following table presents the rollforward of the allowance for expected credit losses for held to maturity securities for the three months ended March 31, 2022 and 2021:

(In thousands)	2022		2021
Allowance for expected credit losses, beginning of period	$	387	$	798
Provision for expected credit losses	(9)		(68)
Allowance for expected credit losses, end of period	$	378	$	730

The following table presents the rollforward of the allowance for expected credit losses for available for sale securities for the three months ended March 31, 2022 and 2021:

	2022						2021
(In thousands)	Foreign Government		Corporate		Total		Foreign Government		Corporate		Total
Allowance for expected credit losses, beginning of period	$	22,222	$	16	$	22,238	$	1,264	$	518	$	1,782
Expected credit losses on securities for which credit losses were not previously recorded	484		—		484		18,990		16		19,006
Expected credit losses (gains) on securities for which credit losses were previously recorded	3,447		(16)		3,431		(261)		(513)		(774)
Reduction due to disposals	—		—		—		—		(5)		(5)
Allowance for expected credit losses, end of period	$	26,153	$	—	$	26,153	$	19,993	$	16	$	20,009

During the three months ended March 31, 2022, the Company increased the allowance for expected credit losses for available for sale securities utilizing its credit loss assessment process and inputs used in its credit loss model, primarily due

to foreign government securities. During the three months ended March 31, 2021, the Company increased the allowance for expected credit losses for available for sale securities primarily due to foreign government securities that had no reserve in prior periods.

The amortized cost and fair value of fixed maturity securities at March 31, 2022, 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	$	1,472,865	$	1,461,188
Due after one year through five years	7,903,303		7,756,952
Due after five years through ten years	4,029,040		3,898,727
Due after ten years	1,982,273		1,927,232
Mortgage-backed securities	1,450,844		1,389,515
Total	$	16,838,325	$	16,433,614

________________

(1) Amortized cost is reduced by the allowance for expected credit losses of $378 thousand related to held to maturity securities.    

At March 31, 2022 and December 31, 2021, there were no investments that exceeded 10% of common stockholders' equity, other than investments in United States government and government agency securities.