Net Investment Gains (Tables)

6 Months Ended

Jun. 30, 2023

Realized and Unrealized Investment Gains (Losses) [Abstract]

Realized And Unrealized Investment Gains (Losses)

Net investment gains (losses) were as follows:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(In thousands)	2023		2022		2023		2022
Net investment gains (losses):
Fixed maturity securities:
Gains	$	115	$	647	$	1,058	$	2,352
Losses	(3,640)		(3,459)		(21,770)		(6,443)
Equity securities (1):
Net realized gains on investment sales (2)	111,072		41		112,132		946
Change in unrealized gains (losses)	21,260		(131,530)		64,664		(38,317)
Investment funds	(98)		(2,362)		(88)		(4,524)
Real estate (3) (4)	(55,449)		358		(44,710)		286,550
Loans receivable	—		—		—		(32)
Other	(4,613)		(27,630)		(20,028)		(34,585)
Net realized and unrealized gains (losses) on investments in earnings before allowance for expected credit losses	68,647		(163,935)		91,258		205,947
Change in allowance for expected credit losses on investments:
Fixed maturity securities	(7,052)		(6,874)		(6,835)		(10,780)
Loans receivable	(2,941)		(746)		(2,759)		(457)
Change in allowance for expected credit losses on investments	(9,993)		(7,620)		(9,594)		(11,237)
Net investment gains (losses)	58,654		(171,555)		81,664		194,710
Income tax (expense) benefit	(12,587)		37,519		(17,437)		(40,923)
After-tax net investment gains (losses)	$	46,067	$	(134,036)	$	64,227	$	153,787

Change in unrealized investment (losses) gains on available for sale securities:
Fixed maturity securities without allowance for expected credit losses	$	(148,021)	$	(409,647)	$	79,094	$	(949,910)
Fixed maturity securities with allowance for expected credit losses	3,694		(16,878)		7,150		(16,585)
Investment funds	462		(3,302)		2,398		(2,833)
Other	(178)		(957)		(664)		(904)
Total change in unrealized investment (losses) gains	(144,043)		(430,784)		87,978		(970,232)
Income tax benefit (expense)	30,759		93,776		(20,463)		209,679
Noncontrolling interests	—		—		(1)		(1)
After-tax change in unrealized investment (losses) gains of available for sale securities	$	(113,284)	$	(337,008)	$	67,514	$	(760,554)

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(1) The net realized gains or losses on investment sales represent the total gains or losses from the purchase dates of the equity securities. The change in unrealized (losses) gains consists of two components: (i) the reversal of the gain or loss recognized in previous periods on equity securities sold and (ii) the change in unrealized gain or loss resulting from mark-to-market adjustments on equity securities still held.

(2) In June 2023, the Company completed a sale of the property and casualty insurance services division of Breckenridge IS, Inc. and recognized a pre-tax net realized gain on investment of $88 million on the sale (proceeds from the sale is presented on the business disposition line within the Consolidated Statements of Cash Flows).

(3) During the second quarter of 2023, the Company recognized an impairment loss of $51 million on a real estate investment.

(4) During March 2022, the Company realized a gain on the sale of a real estate investment in London, U.K. of $251 million, net of transaction expenses and the foreign currency impact, including the reversal of the currency translation adjustment.