Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis

The estimated fair value and hierarchy classifications for assets and liabilities that are measured at fair value on a recurring basis were as follows:

	June 30, 2024
	Level 1		Level 2		Level 3		Total
	(In thousands)
Fair value assets:
Available-for-sale fixed-maturity securities:
U.S. government and agencies	$	-	$	9,897	$	-	$	9,897
Foreign government		-		159,331		-		159,331
States and political subdivisions		-		121,468		-		121,468
Corporates		3,870		1,719,133		-		1,723,003
Mortgage- and asset-backed securities:
Residential mortgage-backed securities		-		435,603		-		435,603
Commercial mortgage-backed securities		-		105,696		-		105,696
Other asset-backed securities		-		232,182		8,850		241,032
Total available-for-sale fixed-maturity securities		3,870		2,783,310		8,850		2,796,030
Equity securities		23,441		982		1,603		26,026
Trading securities		-		3,158		-		3,158
Cash and cash equivalents		441,563		185,729		-		627,292
Separate accounts		-		2,253,966		-		2,253,966
Total fair value assets	$	468,874	$	5,227,145	$	10,453	$	5,706,472
Fair value liabilities:
Separate accounts	$	-	$	2,253,966	$	-	$	2,253,966
Total fair value liabilities	$	-	$	2,253,966	$	-	$	2,253,966

	December 31, 2023
	Level 1		Level 2		Level 3		Total
	(In thousands)
Fair value assets:
Available-for-sale fixed-maturity securities:
U.S. government and agencies	$	-	$	9,516	$	-	$	9,516
Foreign government		-		163,382		-		163,382
States and political subdivisions		-		131,989		-		131,989
Corporates		3,951		1,613,573		-		1,617,524
Mortgage-and asset-backed securities:
Residential mortgage-backed securities		-		437,531		-		437,531
Commercial mortgage-backed securities		-		112,167		-		112,167
Other asset-backed securities		-		246,858		500		247,358
Total available-for-sale fixed-maturity securities		3,951		2,715,016		500		2,719,467
Short-term investments		-		276		-		276
Total available-for-sale securities		3,951		2,715,292		500		2,719,743
Equity securities		27,062		974		1,644		29,680
Trading securities		-		18,383		-		18,383
Cash and cash equivalents		613,148		-		-		613,148
Separate accounts		-		2,395,842		-		2,395,842
Total fair value assets	$	644,161	$	5,130,491	$	2,144	$	5,776,796
Fair value liabilities:
Separate accounts	$	-	$	2,395,842	$	-	$	2,395,842
Total fair value liabilities	$	-	$	2,395,842	$	-	$	2,395,842

Roll forward of Level 3 Assets Measured on Recurring Basis

The roll-forward of the Level 3 assets measured at fair value on a recurring basis was as follows:

	Three months ended June 30,						Six months ended June 30,(1)
	2024			2023			2024			2023
	(In thousands)
Level 3 assets, beginning of period	$	1,631		$	4,008		$	2,144		$	1,710
Net unrealized gains (losses) included in other comprehensive income (loss)		35			(60	)		39			(61	)
Realized gains (losses) and accretion (amortization) recognized in earnings		(28	)		(64	)		(41	)		(81	)
Purchases		8,815			-			8,815			2,316
Settlements		-			(8	)		-			(8	)
Transfers into Level 3		-			-			-			-
Transfers out of Level 3		-			(2,248	)		(504	)		(2,248	)
Level 3 assets, end of period	$	10,453		$	1,628		$	10,453		$	1,628

(1)Transfers of investments that enter and exit Level 3 in different quarters within the same fiscal year are not eliminated until the full year amounts are presented.

Carrying Values and Estimated Fair Values of Financial Instruments

The carrying values and estimated fair values of our financial instruments were as follows:

	June 30, 2024				December 31, 2023
	Carrying value		Estimated fair value		Carrying value		Estimated fair value
	(In thousands)
Assets:
Fixed-maturity securities (available-for-sale)	$	2,796,030	$	2,796,030	$	2,719,467	$	2,719,467
Fixed-maturity security (held-to-maturity) (1)		1,353,370		1,268,174		1,386,980		1,334,892
Short-term investments (available-for-sale)		-		-		276		276
Equity securities		26,026		26,026		29,680		29,680
Trading securities		3,158		3,158		18,383		18,383
Policy loans (1)		38,426		38,426		38,975		38,975
Deposit asset underlying 10% coinsurance agreement (1)		171,848		171,848		187,377		187,377
Separate accounts		2,253,966		2,253,966		2,395,842		2,395,842
Liabilities:
Note payable (2) (3)	$	594,110	$	499,658	$	593,709	$	508,832
Surplus note (1) (2)		1,353,014		1,265,532		1,386,592		1,329,159
Separate accounts		2,253,966		2,253,966		2,395,842		2,395,842

(1)Classified as a Level 3 fair value measurement.

(2)Carrying value amounts shown are net of unamortized issuance costs.

(3)Classified as a Level 2 fair value measurement.