Investments (Tables)
|
3 Months Ended |
Mar. 31, 2022 |
|---|
| Investments Debt And Equity Securities [Abstract] |
|
| Schedule of Available-for-sale Securities |
The period-end amortized cost, gross unrealized gains and losses, and fair value of available-for-sale securities were as follows:
|
|
|
March 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 |
|
$ |
32,347 |
|
|
$ |
91 |
|
|
$ |
(527 |
) |
|
$ |
31,911 |
|
|
Foreign government |
|
|
151,735 |
|
|
|
1,824 |
|
|
|
(4,568 |
) |
|
|
148,991 |
|
|
States and political subdivisions |
|
|
147,757 |
|
|
|
883 |
|
|
|
(6,925 |
) |
|
|
141,715 |
|
|
Corporates |
|
|
1,688,749 |
|
|
|
17,658 |
|
|
|
(59,696 |
) |
|
|
1,646,711 |
|
|
Residential mortgage-backed securities |
|
|
470,130 |
|
|
|
1,427 |
|
|
|
(24,433 |
) |
|
|
447,124 |
|
|
Commercial mortgage-backed securities |
|
|
147,425 |
|
|
|
362 |
|
|
|
(4,922 |
) |
|
|
142,865 |
|
|
Other asset-backed securities |
|
|
151,374 |
|
|
|
447 |
|
|
|
(6,007 |
) |
|
|
145,814 |
|
|
Total fixed-maturity securities |
|
|
2,789,517 |
|
|
|
22,692 |
|
|
|
(107,078 |
) |
|
|
2,705,131 |
|
|
Short-term investments |
|
|
43,733 |
|
|
|
- |
|
|
|
(33 |
) |
|
|
43,700 |
|
|
Total fixed-maturity securities and short-term investments |
|
$ |
2,833,250 |
|
|
$ |
22,692 |
|
|
$ |
(107,111 |
) |
|
$ |
2,748,831 |
|
|
|
|
December 31, 2021 |
|
|
|
|
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 |
|
$ |
32,292 |
|
|
$ |
187 |
|
|
$ |
(79 |
) |
|
$ |
32,400 |
|
|
Foreign government |
|
|
147,288 |
|
|
|
6,283 |
|
|
|
(595 |
) |
|
|
152,976 |
|
|
States and political subdivisions |
|
|
147,455 |
|
|
|
6,326 |
|
|
|
(254 |
) |
|
|
153,527 |
|
|
Corporates |
|
|
1,649,334 |
|
|
|
72,418 |
|
|
|
(8,068 |
) |
|
|
1,713,684 |
|
|
Residential mortgage-backed securities |
|
|
373,753 |
|
|
|
5,108 |
|
|
|
(3,230 |
) |
|
|
375,631 |
|
|
Commercial mortgage-backed securities |
|
|
142,631 |
|
|
|
3,314 |
|
|
|
(420 |
) |
|
|
145,525 |
|
|
Other asset-backed securities |
|
|
128,635 |
|
|
|
1,409 |
|
|
|
(1,220 |
) |
|
|
128,824 |
|
|
Total fixed-maturity securities |
|
|
2,621,388 |
|
|
|
95,045 |
|
|
|
(13,866 |
) |
|
|
2,702,567 |
|
|
Short-term investments |
|
|
85,246 |
|
|
|
1 |
|
|
|
(4 |
) |
|
|
85,243 |
|
|
Total fixed-maturity and short-term investments |
|
$ |
2,706,634 |
|
|
$ |
95,046 |
|
|
$ |
(13,870 |
) |
|
$ |
2,787,810 |
|
|
| Fixed-maturity Securities Classified by Contractual Maturity Date |
The scheduled maturity distribution of the available-for-sale fixed-maturity portfolio as of March 31, 2022 was as follows:
|
|
|
Amortized cost |
|
|
Fair value |
|
|
|
|
(In thousands) |
|
|
Due in one year or less |
|
$ |
249,324 |
|
|
$ |
251,212 |
|
|
Due after one year through five years |
|
|
773,970 |
|
|
|
772,599 |
|
|
Due after five years through 10 years |
|
|
727,467 |
|
|
|
690,427 |
|
|
Due after 10 years |
|
|
269,827 |
|
|
|
255,090 |
|
|
|
|
|
2,020,588 |
|
|
|
1,969,328 |
|
|
Mortgage- and asset-backed securities |
|
|
768,929 |
|
|
|
735,803 |
|
|
Total AFS fixed-maturity securities |
|
$ |
2,789,517 |
|
|
$ |
2,705,131 |
|
|
| Costs and Fair Value of Securities Classified as Trading Securities |
The cost and fair value of the securities classified as trading securities were as follows:
|
|
|
March 31, 2022 |
|
|
December 31, 2021 |
|
|
|
|
Cost |
|
|
Fair value |
|
|
Cost |
|
|
Fair value |
|
|
|
|
(In thousands) |
|
|
Fixed-maturity securities |
|
$ |
13,210 |
|
|
$ |
12,717 |
|
|
$ |
24,769 |
|
|
$ |
24,355 |
|
|
| Net Investment Income |
Investment Income. The components of net investment income were as follows:
|
|
|
Three months ended March 31, |
|
|
|
|
2022 |
|
|
2021 |
|
|
|
|
(In thousands) |
|
|
Fixed-maturity securities (available-for-sale) |
|
$ |
20,889 |
|
|
$ |
20,020 |
|
|
Fixed-maturity security (held-to-maturity) |
|
|
15,515 |
|
|
|
15,146 |
|
|
Equity securities |
|
|
387 |
|
|
|
391 |
|
|
Policy loans and other invested assets |
|
|
102 |
|
|
|
231 |
|
|
Cash and cash equivalents |
|
|
125 |
|
|
|
119 |
|
|
Total return on deposit asset underlying 10% coinsurance agreement(1) |
|
|
(1,510 |
) |
|
|
575 |
|
|
Gross investment income |
|
|
35,508 |
|
|
|
36,482 |
|
|
Investment expenses |
|
|
(1,088 |
) |
|
|
(1,284 |
) |
|
Investment income net of investment expenses |
|
|
34,420 |
|
|
|
35,198 |
|
|
Interest expense on surplus note |
|
|
(15,515 |
) |
|
|
(15,146 |
) |
|
Net investment income |
|
$ |
18,905 |
|
|
$ |
20,052 |
|
|
(1) |
Included $(2.1) million and $(0.8) million of net gains (losses) recognized for the change in fair value of the deposit asset underlying the 10% coinsurance agreement for the three months ended March 31, 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:
|
|
|
Three months ended March 31, |
|
|
|
|
2022 |
|
|
2021 |
|
|
|
|
(In thousands) |
|
|
Realized investment gains (losses): |
|
|
|
|
|
|
|
|
|
Gross gains from sales of available-for-sale securities fixed maturity securities |
|
$ |
602 |
|
|
$ |
765 |
|
|
Gross losses from sales of available-for-sale fixed maturity securities |
|
|
(25 |
) |
|
|
(143 |
) |
|
Net realized investment gains (losses): |
|
|
577 |
|
|
|
622 |
|
|
Other investment gains (losses): |
|
|
|
|
|
|
|
|
|
Credit losses impairment of available-for-sale securities |
|
|
81 |
|
|
|
(154 |
) |
|
Market gains (losses) recognized in net income during the period on equity securities |
|
|
115 |
|
|
|
1,424 |
|
|
Gains (losses) from bifurcated options |
|
|
- |
|
|
|
(17 |
) |
|
Gains (losses) on trading securities |
|
|
(22 |
) |
|
|
(109 |
) |
|
Other investment gains (losses): |
|
|
174 |
|
|
|
1,144 |
|
|
Investment gains (losses) |
|
$ |
751 |
|
|
$ |
1,766 |
|
|
| Schedule of Proceeds from Sales or Other Redemptions of Available-for-Sale Securities |
The proceeds from sales or other redemptions of available-for-sale securities were as follows:
|
|
|
Three months ended March 31, |
|
|
|
|
2022 |
|
|
2021 |
|
|
|
|
(In thousands) |
|
|
Proceeds from sales or other redemptions |
|
$ |
139,113 |
|
|
$ |
105,386 |
|
|
| Schedule of Securities in Unrealized Loss Position |
The following table summarizes all available-for-sale securities in an unrealized loss position for which an allowance for credit losses has not been recorded as of March 31, 2022, aggregated by major security type and length of time such securities have continuously been in an unrealized loss position:
|
|
|
March 31, 2022 |
|
|
|
|
Less than 12 months |
|
|
12 months or longer |
|
|
|
|
Fair value |
|
|
Unrealized losses |
|
|
Fair value |
|
|
Unrealized losses |
|
|
|
|
(Dollars in thousands) |
|
|
Fixed-maturity securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government and agencies |
|
$ |
25,427 |
|
|
$ |
(433 |
) |
|
$ |
1,489 |
|
|
$ |
(94 |
) |
|
Foreign government |
|
|
69,053 |
|
|
|
(3,178 |
) |
|
|
7,638 |
|
|
|
(1,390 |
) |
|
States and political subdivisions |
|
|
106,659 |
|
|
|
(6,862 |
) |
|
|
977 |
|
|
|
(63 |
) |
|
Corporates |
|
|
805,228 |
|
|
|
(48,221 |
) |
|
|
83,518 |
|
|
|
(11,475 |
) |
|
Residential mortgage-backed securities |
|
|
374,688 |
|
|
|
(23,033 |
) |
|
|
14,561 |
|
|
|
(1,400 |
) |
|
Commercial mortgage-backed securities |
|
|
112,306 |
|
|
|
(4,644 |
) |
|
|
3,175 |
|
|
|
(278 |
) |
|
Other asset-backed securities |
|
|
118,960 |
|
|
|
(5,612 |
) |
|
|
3,696 |
|
|
|
(395 |
) |
|
Total fixed-maturity securities |
|
|
1,612,321 |
|
|
|
(91,983 |
) |
|
|
115,054 |
|
|
|
(15,095 |
) |
|
Short-term investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government and agencies |
|
|
34,955 |
|
|
|
(28 |
) |
|
|
- |
|
|
|
- |
|
|
Foreign government |
|
|
4,996 |
|
|
|
(3 |
) |
|
|
- |
|
|
|
- |
|
|
States and political subdivisions |
|
|
1,399 |
|
|
|
(1 |
) |
|
|
- |
|
|
|
- |
|
|
Corporates |
|
|
2,350 |
|
|
|
(1 |
) |
|
|
- |
|
|
|
- |
|
|
Total short-term investments |
|
|
43,700 |
|
|
|
(33 |
) |
|
|
- |
|
|
|
- |
|
|
Total fixed-maturity securities and short-term investments |
|
$ |
1,656,021 |
|
|
$ |
(92,016 |
) |
|
$ |
115,054 |
|
|
$ |
(15,095 |
) |
|
|
|
December 31, 2021 |
|
|
|
|
Less than 12 months |
|
|
12 months or longer |
|
|
|
|
Fair value |
|
|
Unrealized losses |
|
|
Fair value |
|
|
Unrealized losses |
|
|
|
|
(Dollars in thousands) |
|
|
Fixed-maturity securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government and agencies |
|
$ |
24,928 |
|
|
$ |
(45 |
) |
|
$ |
1,557 |
|
|
$ |
(34 |
) |
|
Foreign government |
|
|
18,894 |
|
|
|
(384 |
) |
|
|
3,335 |
|
|
|
(211 |
) |
|
States and political subdivisions |
|
|
15,909 |
|
|
|
(254 |
) |
|
|
- |
|
|
|
- |
|
|
Corporates |
|
|
341,963 |
|
|
|
(5,035 |
) |
|
|
59,414 |
|
|
|
(3,033 |
) |
|
Residential mortgage-backed securities |
|
|
234,911 |
|
|
|
(3,131 |
) |
|
|
2,707 |
|
|
|
(99 |
) |
|
Commercial mortgage-backed securities |
|
|
47,220 |
|
|
|
(419 |
) |
|
|
117 |
|
|
|
(1 |
) |
|
Other asset-backed securities |
|
|
80,509 |
|
|
|
(1,037 |
) |
|
|
3,779 |
|
|
|
(183 |
) |
|
Total fixed-maturity securities |
|
|
764,334 |
|
|
|
(10,305 |
) |
|
|
70,909 |
|
|
|
(3,561 |
) |
|
Short-term investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government and agencies |
|
|
34,967 |
|
|
* |
|
|
|
- |
|
|
|
- |
|
|
Foreign government |
|
|
4,995 |
|
|
* |
|
|
|
- |
|
|
|
- |
|
|
States and political subdivisions |
|
|
11,394 |
|
|
|
(1 |
) |
|
|
- |
|
|
|
- |
|
|
Corporates |
|
|
23,891 |
|
|
|
(3 |
) |
|
|
- |
|
|
|
- |
|
|
Total short-term investments |
|
|
75,247 |
|
|
|
(4 |
) |
|
|
- |
|
|
|
- |
|
|
Total fixed-maturity securities and short-term investments |
|
$ |
839,581 |
|
|
$ |
(10,309 |
) |
|
$ |
70,909 |
|
|
$ |
(3,561 |
) |
* Less than $1 thousand.
|
| Schedule of Securities in Allowance for Credit Losses |
The rollforward of the allowance for credit losses on available-for-sale securities were as follows:
|
|
|
Three months ended March 31, |
|
|
|
|
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 |
|
|
- |
|
|
|
154 |
|
|
Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period |
|
|
(81 |
) |
|
|
- |
|
|
Write-offs charged against the allowance, if any |
|
|
- |
|
|
|
- |
|
|
Allowance for credit losses, end of period |
|
$ |
735 |
|
|
$ |
154 |
|
|