XML 34 R24.htm IDEA: XBRL DOCUMENT v3.22.1
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