Investments

12 Months Ended

Dec. 31, 2023

Investments [Abstract]

INVESTMENTS

3. INVESTMENTS

Fixed maturity securities available-for-sale, at fair value

The following tables summarize the Company’s fixed maturity available-for-sale securities at December 31, 2023 and 2022:

	December 31, 2023
	Amortised cost basis		Gross unrealized gains		Gross unrealized losses			Allowance for expected credit losses			Fair value
	USD ’000		USD ’000		USD ’000			USD ’000			USD ’000
Foreign governments		13,067		70		(738	)		-			12,399
Corporate bonds		776,552		7,950		(30,958	)		(353	)		753,191
Total		789,619		8,020		(31,696	)		(353	)		765,590

	December 31, 2022
	Amortised cost basis		Gross unrealized gains		Gross Unrealized losses			Allowance for expected credit losses			Fair value
	USD ’000		USD ’000		USD ’000			USD ’000			USD ’000
Foreign governments		8,625		4		(607	)		-			8,022
Corporate bonds		529,686		22		(48,454	)		(195	)		481,059
Total		538,311		26		(49,061	)		(195	)		489,081

The following tables summarize gross unrealized losses and estimated fair value for available-for-sale securities by length of time that the securities have continuously been in an unrealized loss position:

	December 31, 2023
	Less than 12 months					12 months or more					Total
	Fair value		Gross unrealized loss			Fair value		Gross unrealized loss			Fair value		Gross unrealized loss
	USD ’000		USD ’000			USD ’000		USD ’000			USD ’000		USD ’000
Foreign governments		-		-			8,152		(738	)		8,152		(738	)
Corporate bonds		38,929		(517	)		401,900		(30,441	)		440,829		(30,958	)
Total		38,929		(517	)		410,052		(31,179	)		448,981		(31,696	)

	December 31, 2022
	Less than 12 months					12 months or more					Total
	Fair value		Gross unrealized loss			Fair value		Gross unrealized loss			Fair value		Gross unrealized loss
	USD ’000		USD ’000			USD ’000		USD ’000			USD ’000		USD ’000
Foreign governments		3,154		(178	)		4,666		(429	)		7,820		(607	)
Corporate bonds		298,607		(23,860	)		173,002		(24,594	)		471,609		(48,454	)
Total		301,761		(24,038	)		177,668		(25,023	)		479,429		(49,061	)

At December 31, 2023, the Company held 272 (2022: 300) fixed-maturity securities in an unrealized loss position with a total estimated fair value of USD 448,981 thousand (2022: USD 479,429 thousand) and gross unrealized losses of USD 31,696 thousand (2022: USD 49,061 thousand). Of these securities, 241 (2022: 95) were in a continuous unrealized loss position for greater than 12 months. The Company regularly reviews all fixed-maturity securities within its investment portfolio to determine whether a credit loss has occurred. At December 31, 2023, 76% of the Company’s fixed-maturity securities were rated “A-” or better, and 0.1% were below investment grade or not rated. All of the Company’s fixed maturity securities made expected coupon payments under the contractual terms of the securities. Based on the Company’s review as of December 31, 2023, unrealized losses were caused by interest rate changes or other market factors and were not credit-specific issues.

The contractual maturities of the Company’s fixed maturity available-for-sale securities are shown in the following table:

	December 31, 2023			December 31, 2022
		Fair value	Amortized cost		Fair value	Amortized cost
		USD ’000	USD ’000		USD ’000	USD ’000
Due in one year or less		78,459	79,334		34,658	35,742
Due after one you through to five years		515,337	530,182		362,368	388,764
Due after five you through to ten years		100,801	103,933		64,409	75,576
Due after ten years		70,993	76,170		27,646	38,229
		765,590	789,619		489,081	538,311

Allowance for expected credit losses

The following tables provide the movement of the allowance for expected credit losses of the Company’s fixed maturity available-for-sale debt securities:

	December 31, 2023		December 31, 2022
	Corporate Bonds
	USD ’000		USD ’000
Balance at beginning of year		195		-
Additions for current year allowance for expected credit losses		158		195
Balance at end of year		353		195

Investment Income

	Year ended December 31,
	2023			2022			2021
	USD ’000			USD ’000			USD ’000
Interest income		39,750			20,381			14,049
Dividends from other investments		236			144			78
Dividends from equities		752			571			705
Investment’s custodian fees and other investments expenses		(278	)		(149	)		(345	)
		40,460			20,947			14,487

Net realized gain (loss) on investments

	Year Ended December 31,
	2023			2022			2021
	USD ’000			USD ’000			USD ’000
Realized loss on sale of fixed maturity securities available-for-sale		(477	)		(619	)		(88	)
Realized gain (loss) on sale of equity securities		7,200			(68	)		396
		6,723			(687	)		308

Net unrealized gain (loss) on investments

	Year Ended December 31,
	2023			2022			2021
	USD ’000			USD ’000			USD ’000
Unrealized gain (loss) on equity securities		3,080			(3,561	)		707
Unrealized gain (loss) on other investments		989			(2,225	)		912
Unrealized (loss) gain on equity-method investments at fair value		(1,385	)		274			(5,328	)
		2,684			(5,512	)		(3,709	)

Change in allowance for expected credit losses on investments

	Year Ended December 31,
	2023			2022			2021
	USD ’000			USD ’000			USD ’000
Change in allowance for expected credit losses for fixed maturity securities available-for-sale		(158	)		(195	)		-
Change in allowance for expected credit losses on fixed maturity securities held to maturity		526			(166	)		(66	)
		368			(361	)		(66	)