Net Investment (Losses) Gains

9 Months Ended

Sep. 30, 2023

Realized and Unrealized Investment Gains (Losses) [Abstract]

Net investment (losses) gains were as follows:


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(In thousands)	2023		2022		2023		2022
Net investment (losses) gains:
Fixed maturity securities:
Gains	$	299	$	1,053	$	1,357	$	3,405
Losses	(2,700)		(2,309)		(24,470)		(8,752)
Equity securities (1):
Net realized gains on investment sales (2)	23,631		—		135,763		946
Change in unrealized (losses) gains	(19,059)		(50,384)		45,605		(88,701)
Investment funds	(3,329)		(1,717)		(3,417)		(6,241)
Real estate (3) (4)	(24,234)		9,026		(68,944)		295,576
Loans receivable	(1,428)		—		(1,428)		(32)
Other	(14,035)		(21,951)		(34,063)		(56,537)
Net realized and unrealized (losses) gains on investments in earnings before allowance for expected credit losses	(40,855)		(66,282)		50,403		139,664
Change in allowance for expected credit losses on investments:
Fixed maturity securities	(2,112)		(1,311)		(8,946)		(12,091)
Loans receivable	541		183		(2,218)		(274)
Change in allowance for expected credit losses on investments	(1,571)		(1,128)		(11,164)		(12,365)
Net investment (losses) gains	(42,426)		(67,410)		39,239		127,299
Income tax benefit (expense)	9,405		14,456		(8,033)		(26,466)
After-tax net investment (losses) gains	$	(33,021)	$	(52,954)	$	31,206	$	100,833


Change in unrealized investment (losses) gains on available for sale securities:
Fixed maturity securities without allowance for expected credit losses	$	(136,388)	$	(385,503)	$	(57,293)	$	(1,335,413)
Fixed maturity securities with allowance for expected credit losses	(10,244)		(4,005)		(3,094)		(20,590)

Investment funds	(3,217)		(5,031)		(818)		(7,863)
Other	(606)		(293)		(1,271)		(1,198)
Total change in unrealized investment losses	(150,455)		(394,832)		(62,476)		(1,365,064)
Income tax benefit	32,090		79,168		11,626		288,847
Noncontrolling interests	—		—		(1)		(1)
After-tax change in unrealized investment losses of available for sale securities	$	(118,365)	$	(315,664)	$	(50,851)	$	(1,076,218)

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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) The Company recognized impairments on real estate of $21 million and $72 million in the three months and nine months ended September 30, 2023, respectively.