
March 31, 2021
($ in thousands)	Cost/ Amortized Cost		Allowance for Credit Losses	Unrealized Gains	Unrealized Losses	Fair Value
AFS fixed income securities:
U.S. government and government agencies	$	134,725	—	3,653	(2,104)	136,274
Foreign government	18,920		(56)	974	(136)	19,702
Obligations of states and political subdivisions	1,140,442		(201)	74,212	(360)	1,214,093
Corporate securities	2,239,066		(6,166)	122,761	(9,870)	2,345,791
Collateralized loan obligations ("CLO") and other asset-backed securities ("ABS")	1,188,670		(1,470)	18,917	(4,052)	1,202,065
Residential mortgage-backed securities ("RMBS")	906,266		(864)	43,367	(1,229)	947,540
Commercial mortgage-backed securities ("CMBS")	624,988		(24)	33,590	(2,378)	656,176
Total AFS fixed income securities	$	6,253,077	(8,781)	297,474	(20,129)	6,521,641


December 31, 2020
($ in thousands)	Cost/ Amortized Cost		Allowance for Credit Losses	Unrealized Gains	Unrealized Losses	Fair Value
AFS fixed income securities:
U.S. government and government agencies	$	110,038	—	6,239	(137)	116,140
Foreign government	16,801		(1)	1,569	(3)	18,366
Obligations of states and political subdivisions	1,159,588		(4)	87,564	(11)	1,247,137
Corporate securities	2,152,203		(2,782)	180,971	(2,340)	2,328,052
CLO and other ABS	1,014,820		(592)	20,166	(7,843)	1,026,551
RMBS	999,485		(561)	53,065	(201)	1,051,788
CMBS	620,582		(29)	48,348	(1,007)	667,894
Total AFS fixed income securities	$	6,073,517	(3,969)	397,922	(11,542)	6,455,928


Quarter ended March 31, 2021
($ in thousands)	Beginning Balance		Current Provision for Securities without Prior Allowance	Increase (Decrease) on Securities with Prior Allowance, excluding intent (or Requirement) to Sell Securities	Reductions for Securities Sold	Reductions for Securities Identified as Intent (or Requirement) to Sell during the Period	Ending Balance
Foreign government	$	1	56	(1)	—	—	56
Obligations of states and political subdivisions	4		186	11	—	—	201
Corporate securities	2,782		4,058	(527)	(147)	—	6,166
CLO and other ABS	592		1,001	(106)	(17)	—	1,470
RMBS	561		356	(39)	(14)	—	864
CMBS	29		10	(15)	—	—	24
Total AFS fixed income securities	$	3,969	5,667	(677)	(178)	—	8,781


Quarter ended March 31, 2020
($ in thousands)	Beginning Balance		Current Provision for Securities without Prior Allowance	Increase (Decrease) on Securities with Prior Allowance, excluding intent (or Requirement) to Sell Securities	Reductions for Securities Sold	Reductions for Securities Identified as Intent (or Requirement) to Sell during the Period	Ending Balance
Foreign government	$	—	21	—	—	—	21
Obligations of states and political subdivisions	—		29	—	—	—	29
Corporate securities	—		13,412	—	—	—	13,412
CLO and other ABS	—		1,565	—	—	—	1,565
RMBS	—		722	—	—	—	722
CMBS	—		38	—	—	—	38
Total AFS fixed income securities	$	—	15,787	—	—	—	15,787

For information on our methodology and significant inputs used to measure the amount related to credit loss, our accounting policy for recognizing write-offs of uncollectible amounts, and our treatment of accrued interest, refer to Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2020 Annual Report. Accrued interest on AFS securities was $44.7 million as of March 31, 2021, and $43.8 million as of December 31, 2020. We did not record any write-offs during 2021 or 2020.


March 31, 2021	Less than 12 months			12 months or longer		Total
($ in thousands)	Fair Value		Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
AFS fixed income securities:
U.S. government and government agencies	$	53,796	(2,104)	—	—	53,796	(2,104)
Foreign government	3,313		(136)	—	—	3,313	(136)
Obligations of states and political subdivisions	18,838		(352)	369	(8)	19,207	(360)
Corporate securities	306,052		(8,560)	14,025	(1,310)	320,077	(9,870)
CLO and other ABS	282,939		(1,737)	105,261	(2,315)	388,200	(4,052)
RMBS	76,684		(1,229)	—	—	76,684	(1,229)
CMBS	70,510		(2,089)	23,474	(289)	93,984	(2,378)
Total AFS fixed income securities	$	812,132	(16,207)	143,129	(3,922)	955,261	(20,129)


December 31, 2020	Less than 12 months			12 months or longer		Total
($ in thousands)	Fair Value		Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
AFS fixed income securities:
U.S. government and government agencies	$	11,519	(137)	—	—	11,519	(137)
Foreign government	1,122		(3)	—	—	1,122	(3)
Obligations of states and political subdivisions	2,223		(11)	—	—	2,223	(11)
Corporate securities	65,187		(2,152)	2,400	(188)	67,587	(2,340)
CLO and other ABS	261,746		(2,995)	165,661	(4,848)	427,407	(7,843)
RMBS	18,227		(194)	1,181	(7)	19,408	(201)
CMBS	55,482		(616)	16,093	(391)	71,575	(1,007)
Total AFS fixed income securities	$	415,506	(6,108)	185,335	(5,434)	600,841	(11,542)

We do not currently intend to sell any of the securities in the tables above, nor will we be required to sell any of these securities. The increase in gross unrealized losses during First Quarter 2021 was driven by a significant increase in longer-dated benchmark United States Treasury rates, offset in part by tightening credit spreads as a result of reduced uncertainty in the marketplace. Considering these factors and our review of these securities under our credit loss policy as described in Note 2. "Summary of Significant Accounting Policies" of our 2020 Annual Report, we have concluded that no allowance for credit loss is required on these balances. This conclusion reflects our current judgment as to the financial position and future prospects of the entity that issued the investment security and underlying collateral.

(c) Fixed income securities at March 31, 2021 are summarized below by contractual maturity. Mortgage-backed securities are included in the maturity tables using the estimated average life of each security. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations, with or without call or prepayment penalties.


	AFS		HTM
($ in thousands)	Fair Value		Carrying Value	Fair Value
Due in one year or less	$	453,772	1,057	1,065
Due after one year through five years	3,400,223		14,433	15,325
Due after five years through 10 years	2,043,563		8,854	8,814
Due after 10 years	624,083		—	—
Total fixed income securities	$	6,521,641	24,344	25,204


Other Investments	March 31, 2021				December 31, 2020
($ in thousands)	Carrying Value		Remaining Commitment	Maximum Exposure to Loss1	Carrying Value	Remaining Commitment	Maximum Exposure to Loss1
Alternative Investments
Private equity	$	182,032	104,070	286,102	157,276	100,905	258,181
Private credit	56,819		98,072	154,891	54,017	98,330	152,347
Real assets	19,689		15,891	35,580	19,659	16,493	36,152
Total alternative investments	258,540		218,033	476,573	230,952	215,728	446,680
Other securities	31,613		—	31,613	35,370	—	35,370
Total other investments	$	290,153	218,033	508,186	266,322	215,728	482,050

1The maximum exposure to loss includes both the carry value of these investments and the related remaining commitments. In addition, tax credits that have been previously recognized in Other securities are subject to the risk of recapture, which we do not consider significant.

We are contractually committed to make additional investments up to the remaining commitments stated above, but we do not have a future obligation to fund losses or debts on behalf of these investments. We have not provided any non-contractual financial support at any time during 2021 or 2020.

The following table shows gross summarized financial information for our other investments portfolio, including the portion we do not own. The majority of these investments are carried under the equity method of accounting and report results to us on a one-quarter lag. The following table provides (i) the gross summarized financial statement information for these investments for the three-months ended December 31, and (ii) the portion of these results that are included in our First Quarter results:


Income Statement Information	Quarter ended March 31,
($ in millions)	2021		2020
Net investment income	$	481.6	12.7
Realized gains	776.0		164.8
Net change in unrealized appreciation	4,630.8		1,204.0
Net income	$	5,888.4	1,381.5
Insurance Subsidiaries’ alternative investments income	$	20.2	6.3

(e) Certain Insurance Subsidiaries, as members of the Federal Home Loan Bank of Indianapolis ("FHLBI") and the Federal Home Loan Bank of New York ("FHLBNY"), have pledged certain AFS fixed income securities as collateral. Additionally, to comply with insurance laws, certain Insurance Subsidiaries have deposited certain securities with various state and regulatory agencies at March 31, 2021. We retain all rights regarding all securities pledged as collateral. The following table summarizes the market value of these securities at March 31, 2021:


($ in millions)	FHLBI Collateral		FHLBNY Collateral	State and Regulatory Deposits	Total
U.S. government and government agencies	$	—	—	21.0	21.0
Obligations of states and political subdivisions	—		—	5.0	5.0



RMBS	93.7		155.5	—	249.2
CMBS	6.9		35.1	—	42.0


Total pledged as collateral	$	100.6	190.6	26.0	317.2

(f) We did not have exposure to any credit concentration risk of a single issuer greater than 10% of our stockholders' equity, other than certain U.S. government-backed investments, as of March 31, 2021, or December 31, 2020.


	Quarter ended March 31,
($ in thousands)	2021		2020
Fixed income securities	$	52,823	50,253
Commercial mortgage loans ("CMLs")	514		62
Equity securities	2,488		1,552
Short-term investments	85		1,166
Other investments	17,433		6,342
Investment expenses	(3,627)		(3,408)
Net investment income earned	$	69,716	55,967

The increase in net investment income earned in First Quarter 2021 compared to First Quarter 2020 was driven by the alternative investments in our other investments portfolio, and it reflects the improvement in the equity markets in the fourth quarter of 2020 as our results on these holdings are recorded on a one-quarter lag.


	Quarter ended March 31,
($ in thousands)	2021		2020
Gross gains on sales	$	3,676	5,676
Gross losses on sales	(4,471)		(1,576)
Net realized gains (losses) on disposals	(795)		4,100
Net unrealized gains (losses) on equity securities	11,280		(17,137)
Net credit loss expense on fixed income securities, AFS	(4,997)		(15,787)
Net credit loss expense on fixed income securities, HTM	(7)		—
Net credit loss expense on CMLs	—		(240)
Losses on securities for which we have the intent to sell	(362)		(15,602)
Net realized and unrealized gains (losses)	$	5,119	(44,666)


	Quarter ended March 31,
($ in thousands)	2021		2020
Unrealized gains (losses) recognized in income on equity securities:
On securities remaining in our portfolio at March 31, 2021	$	10,097	(17,140)
On securities sold during period	1,183		3
Total unrealized gains (losses) recognized in income on equity securities	$	11,280	(17,137)

The improvement in net realized and unrealized gains was primarily driven by (i) unrealized gains on our equity securities compared to unrealized losses last year, which were driven by COVID-19-related market disruption, and (ii) lower intent-to-sell losses as we provided our investment managers significant trading flexibility last year given market conditions.