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Investments (Tables)
 12 Months Ended
Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
Schedule of AFS Securities Reconciliation The amortized cost, gross unrealized gains and losses, and fair value of AFS fixed-maturity securities were as follows:

 

 

 

December 31, 2023

 

 

 

Amortized cost

 

 

Gross unrealized gains

 

 

Gross unrealized losses

 

 

Fair value

 

 

 

(In thousands)

 

Securities available-for-sale, carried at fair value:

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-maturity securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agencies

 

$

9,974

 

 

$

18

 

 

$

(476

)

 

$

9,516

 

Foreign government

 

 

170,354

 

 

 

1,616

 

 

 

(8,588

)

 

 

163,382

 

States and political subdivisions

 

 

145,779

 

 

 

891

 

 

 

(14,681

)

 

 

131,989

 

Corporates

 

 

1,723,023

 

 

 

14,787

 

 

 

(120,286

)

 

 

1,617,524

 

Residential mortgage-backed securities

 

 

499,771

 

 

 

1,688

 

 

 

(63,928

)

 

 

437,531

 

Commercial mortgage-backed securities

 

 

127,454

 

 

 

156

 

 

 

(15,443

)

 

 

112,167

 

Other asset-backed securities

 

 

258,857

 

 

 

763

 

 

 

(12,262

)

 

 

247,358

 

Total fixed-maturity securities

 

$

2,935,212

 

 

$

19,919

 

 

$

(235,664

)

 

$

2,719,467

 

Short-term investments

 

 

276

 

 

 

-

 

 

 

-

 

 

 

276

 

Total fixed-maturity and short-term investments

 

$

2,935,488

 

 

$

19,919

 

 

$

(235,664

)

 

$

2,719,743

 

 

 

 

December 31, 2022

 

 

 

Amortized cost

 

 

Gross unrealized gains

 

 

Gross unrealized losses

 

 

Fair value

 

 

 

(In thousands)

 

Securities available-for-sale, carried at fair value:

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-maturity securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agencies

 

$

31,217

 

 

$

18

 

 

$

(767

)

 

$

30,468

 

Foreign government

 

 

163,725

 

 

 

780

 

 

 

(11,590

)

 

 

152,915

 

States and political subdivisions

 

 

142,189

 

 

 

112

 

 

 

(20,056

)

 

 

122,245

 

Corporates

 

 

1,665,962

 

 

 

2,439

 

 

 

(171,552

)

 

 

1,496,849

 

Residential mortgage-backed securities

 

 

473,309

 

 

 

370

 

 

 

(71,949

)

 

 

401,730

 

Commercial mortgage-backed securities

 

 

139,306

 

 

 

3

 

 

 

(16,342

)

 

 

122,967

 

Other asset-backed securities

 

 

185,707

 

 

 

108

 

 

 

(17,533

)

 

 

168,282

 

Total fixed-maturity securities

 

$

2,801,415

 

 

$

3,830

 

 

$

(309,789

)

 

$

2,495,456

 

Short-term investments

 

 

69,393

 

 

 

20

 

 

 

(7

)

 

 

69,406

 

Total fixed-maturity and short-term investments

 

$

2,870,808

 

 

$

3,850

 

 

$

(309,796

)

 

$

2,564,862

 
Fixed-maturity Securities Classified by Contractual Maturity Securities Date

The scheduled maturity distribution of the AFS fixed-maturity securities portfolio as of December 31, 2023 was as follows:

 

 

 

Amortized cost

 

 

Fair value

 

 

 

(In thousands)

 

Due in one year or less

 

$

209,201

 

 

$

206,639

 

Due after one year through five years

 

 

706,348

 

 

 

681,350

 

Due after five years through 10 years

 

 

809,733

 

 

 

739,504

 

Due after 10 years

 

 

323,848

 

 

 

294,918

 

 

 

 

2,049,130

 

 

 

1,922,411

 

Mortgage- and asset-backed securities

 

 

886,082

 

 

 

797,056

 

  Total AFS fixed-maturity securities

 

$

2,935,212

 

 

$

2,719,467

 
Costs and Fair Values of Fixed-Maturity Securities Classified as Trading Securities The costs and fair values of the fixed-maturity securities classified as trading securities were as follows:

 

 

 

December 31, 2023

 

 

December 31, 2022

 

 

 

Cost

 

 

Fair value

 

 

Cost

 

 

Fair value

 

 

 

(In thousands)

 

Fixed-maturity securities

 

$

18,761

 

 

$

18,383

 

 

$

4,229

 

 

$

3,698

 
Net Investment Income The components of net investment income were as follows:

 

 

 

Year ended December 31,

 

 

 

 

2023

 

 

2022

 

 

2021

 

 

 

 

(In thousands)

Fixed-maturity securities (available-for-sale)

 

$

108,762

 

 

$

90,975

 

 

$

80,362

 

 

Fixed-maturity security (held-to-maturity)

 

 

65,474

 

 

 

63,922

 

 

 

62,207

 

 

Equity securities

 

 

1,523

 

 

 

1,509

 

 

 

1,632

 

 

Policy loans and other invested assets

 

 

1,297

 

 

 

1,046

 

 

 

1,019

 

 

Cash, cash equivalent and short-term investments

 

 

23,601

 

 

 

5,943

 

 

 

456

 

 

Total return on deposit asset underlying 10% coinsurance
  agreement(1)

 

 

9,338

 

 

 

(65

)

 

 

1,875

 

 

  Gross investment income

 

 

209,995

 

 

 

163,330

 

 

 

147,551

 

 

Investment expenses

 

 

(8,684

)

 

 

(6,343

)

 

 

(4,756

)

 

   Investment income net of investment expenses

 

 

201,311

 

 

 

156,987

 

 

 

142,795

 

 

Interest expense on surplus note

 

 

(65,474

)

 

 

(63,922

)

 

 

(62,207

)

 

    Net investment income

 

$

135,837

 

 

$

93,065

 

 

$

80,588

 

 

 

(1)
Includes $(0.4) million, $(3.8) million, and $(2.5) of net gains (losses) recognized for the change in fair value of the deposit asset underlying the 10% coinsurance agreement for the years ended December 31, 2023, 2022, and 2021, respectively.
Schedule of Components of Investment Gains (Losses)

The components of investment gains (losses), as well as details on gross realized investment gains (losses) and other investment gains (losses) were as follows:

 

 

 

Year ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

 

 

(In thousands)

 

Realized investment gains (losses):

 

 

 

 

 

 

 

 

 

Gross gains from sales of available-for-sale fixed maturity securities

 

$

504

 

 

$

2,036

 

 

$

7,060

 

Gross losses from sales of available-for-sale fixed maturity securities

 

 

(1,149

)

 

 

(592

)

 

 

(2,395

)

Net realized investment gains (losses):

 

 

(645

)

 

 

1,444

 

 

 

4,665

 

Other investment gains (losses):

 

 

 

 

 

 

 

 

 

Credit losses impairment of available-for-sale securities

 

 

(2,166

)

 

 

(57

)

 

 

(816

)

Market gains (losses) recognized in net income during the period on equity securities

 

 

(3,137

)

 

 

(2,375

)

 

 

2,362

 

Gains (losses) from equity method investments

 

 

12

 

 

 

-

 

 

 

-

 

Gains (losses) from bifurcated options

 

 

13

 

 

 

-

 

 

 

(57

)

Gains (losses) on trading securities

 

 

27

 

 

 

(7

)

 

 

(282

)

Other investment gains (losses):

 

 

(5,251

)

 

 

(2,439

)

 

 

1,207

 

Investment gains (losses)

 

$

(5,896

)

 

$

(995

)

 

$

5,872

 
Schedule of Proceeds from Sales or Other Redemptions of Available-for-Sale Securities

The proceeds from sales or other redemptions of AFS securities were as follows:

 

 

 

Year ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

 

 

(In thousands)

 

Proceeds from sales or other redemptions

 

$

373,254

 

 

$

496,898

 

 

$

676,153

 
Schedule of Securities in Unrealized Loss Position The following tables summarizes all AFS securities in an unrealized loss position for which an allowance for credit losses has not been recorded as of December 31, 2023, aggregated by major security type and by length of time such securities have continuously been in an unrealized loss position:

 

 

 

December 31, 2023

 

 

 

Less than 12 months

12 months or longer

 

 

 

Fair value

 

 

Unrealized losses

 

 

Fair value

 

 

Unrealized losses

 

 

 

(In thousands)

 

Fixed-maturity securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agencies

 

$

-

 

 

$

-

 

 

$

9,188

 

 

$

(476

)

Foreign government

 

 

17,209

 

 

 

(62

)

 

 

104,827

 

 

 

(8,526

)

States and political subdivisions

 

 

4,883

 

 

 

(46

)

 

 

107,021

 

 

 

(14,635

)

Corporates

 

 

39,783

 

 

 

(907

)

 

 

1,231,694

 

 

 

(119,379

)

Residential mortgage-backed securities

 

 

14,872

 

 

 

(142

)

 

 

360,987

 

 

 

(63,786

)

Commercial mortgage-backed securities

 

 

4,721

 

 

 

(107

)

 

 

97,417

 

 

 

(15,336

)

Other asset-backed securities

 

 

41,417

 

 

 

(159

)

 

 

136,841

 

 

 

(12,103

)

Total fixed-maturity securities

 

$

122,885

 

 

$

(1,423

)

 

$

2,047,975

 

 

$

(234,241

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2022

 

 

 

Less than 12 months

12 months or longer

 

 

 

Fair value

 

 

Unrealized losses

 

 

Fair value

 

 

Unrealized losses

 

 

 

(In thousands)

 

Fixed-maturity securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agencies

 

$

4,927

 

 

$

(204

)

 

$

25,209

 

 

$

(563

)

Foreign government

 

 

97,094

 

 

 

(4,430

)

 

 

38,085

 

 

 

(7,160

)

States and political subdivisions

 

 

71,131

 

 

 

(10,666

)

 

 

44,324

 

 

 

(9,390

)

Corporates

 

 

974,931

 

 

 

(69,726

)

 

 

452,541

 

 

 

(101,826

)

Residential mortgage-backed securities

 

 

187,158

 

 

 

(22,171

)

 

 

201,595

 

 

 

(49,778

)

Commercial mortgage-backed securities

 

 

65,165

 

 

 

(5,069

)

 

 

56,799

 

 

 

(11,273

)

Other asset-backed securities

 

 

81,907

 

 

 

(5,807

)

 

 

72,977

 

 

 

(11,726

)

Total fixed-maturity securities

 

 

1,482,313

 

 

 

(118,073

)

 

 

891,530

 

 

 

(191,716

)

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agencies

 

 

28,379

 

 

 

(5

)

 

 

-

 

 

 

-

 

Foreign government

 

 

1,744

 

 

 

(2

)

 

 

-

 

 

 

-

 

Total Short Term Bonds

 

 

30,123

 

 

 

(7

)

 

 

-

 

 

 

-

 

Total fixed-maturity and Short Term securities

 

$

1,512,436

 

 

$

(118,080

)

 

$

891,530

 

 

$

(191,716

)

 
Schedule of Securities in Allowance for Credit Losses

The rollforward of the allowance for credit losses on AFS securities was as follows:

 

 

Year ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

 

 

(In thousands)

 

Allowance for credit losses, beginning of period

 

$

-

 

 

$

816

 

 

$

-

 

Additions to the allowance for credit losses on securities for which credit losses were not previously recorded

 

 

-

 

 

 

-

 

 

 

821

 

Additional increases (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period

 

 

-

 

 

 

(81

)

 

 

(5

)

Write-offs charged against the allowance, if any

 

 

-

 

 

 

(735

)

 

 

-

 

Allowance for credit losses, end of period

 

$

-

 

 

$

-

 

 

$

816