INVESTMENTS (Tables)
|
6 Months Ended |
Jun. 30, 2018 |
Investments, Debt and Equity Securities [Abstract] |
|
Reconciliation of available-for-sale securities from cost basis to fair value |
The amortized cost and estimated fair value of securities available-for-sale as of June 30, 2018 and December 31, 2017 are as follows. All fixed maturity securities are classified as available-for-sale and are carried at fair value. | | | | | | | | | | | | | | | | | | June 30, 2018 | | Amortized cost | | Gross unrealized gains | | Gross unrealized losses | | Estimated fair values | ($ in thousands) | | | | | Securities available-for-sale: | | | | | | | | | Fixed maturity securities: | | | | | | | | | U.S. treasury | | $ | 8,127 |
| | $ | — |
| | $ | 213 |
| | $ | 7,914 |
| U.S. government-sponsored agencies | | 305,833 |
| | 519 |
| | 10,128 |
| | 296,224 |
| Obligations of states and political subdivisions | | 278,869 |
| | 11,448 |
| | 587 |
| | 289,730 |
| Commercial mortgage-backed | | 78,977 |
| | 222 |
| | 3,523 |
| | 75,676 |
| Residential mortgage-backed | | 131,427 |
| | 1,772 |
| | 4,669 |
| | 128,530 |
| Other asset-backed | | 22,325 |
| | 351 |
| | 1,005 |
| | 21,671 |
| Corporate | | 422,159 |
| | 3,208 |
| | 3,413 |
| | 421,954 |
| Total fixed maturity securities | | $ | 1,247,717 |
| | $ | 17,520 |
| | $ | 23,538 |
| | $ | 1,241,699 |
|
| | | | | | | | | | | | | | | | | | December 31, 2017 | | Amortized cost | | Gross unrealized gains | | Gross unrealized losses | | Estimated fair values | ($ in thousands) | | | | | Securities available-for-sale: | | | | | | | | | Fixed maturity securities: | | | | | | | | | U.S. treasury | | $ | 8,115 |
| | $ | — |
| | $ | 37 |
| | $ | 8,078 |
| U.S. government-sponsored agencies | | 303,932 |
| | 122 |
| | 6,105 |
| | 297,949 |
| Obligations of states and political subdivisions | | 290,038 |
| | 17,729 |
| | 231 |
| | 307,536 |
| Commercial mortgage-backed | | 84,058 |
| | 591 |
| | 669 |
| | 83,980 |
| Residential mortgage-backed | | 120,554 |
| | 2,479 |
| | 3,234 |
| | 119,799 |
| Other asset-backed | | 23,934 |
| | 625 |
| | 445 |
| | 24,114 |
| Corporate | | 422,535 |
| | 11,490 |
| | 465 |
| | 433,560 |
| Total fixed maturity securities | | 1,253,166 |
| | 33,036 |
| | 11,186 |
| | 1,275,016 |
| | | | | | | | | | Equity securities: | | | | | | | | | Common stocks: | | | | | | | | | Financial services | | 30,103 |
| | 13,594 |
| | 175 |
| | 43,522 |
| Information technology | | 18,308 |
| | 17,504 |
| | 2 |
| | 35,810 |
| Healthcare | | 18,877 |
| | 11,876 |
| | 158 |
| | 30,595 |
| Consumer staples | | 9,275 |
| | 4,917 |
| | 65 |
| | 14,127 |
| Consumer discretionary | | 10,935 |
| | 9,640 |
| | 37 |
| | 20,538 |
| Energy | | 12,441 |
| | 5,381 |
| | 917 |
| | 16,905 |
| Industrials | | 12,746 |
| | 15,757 |
| | 14 |
| | 28,489 |
| Other | | 11,058 |
| | 5,363 |
| | — |
| | 16,421 |
| Non-redeemable preferred stocks | | 20,531 |
| | 1,216 |
| | 39 |
| | 21,708 |
| Total equity securities | | 144,274 |
| | 85,248 |
| | 1,407 |
| | 228,115 |
| Total securities available-for-sale | | $ | 1,397,440 |
| | $ | 118,284 |
| | $ | 12,593 |
| | $ | 1,503,131 |
|
|
Estimated fair value and gross unrealized losses associated with investment securities |
The following tables set forth the estimated fair values and gross unrealized losses associated with investment securities that were in an unrealized loss position recognized in accumulated other comprehensive income as of June 30, 2018 and December 31, 2017, listed by length of time the securities were consistently in an unrealized loss position. | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2018 | | Less than twelve months | | Twelve months or longer | | Total | ($ in thousands) | | Fair values | | Unrealized losses | | Fair values | | Unrealized losses | | Fair values | | Unrealized losses | Securities available-for-sale: | | | | | | | | | | | | | Fixed maturity securities: | | | | | | | | | | | | | U.S. treasury | | $ | 7,914 |
| | $ | 213 |
| | $ | — |
| | $ | — |
| | $ | 7,914 |
| | $ | 213 |
| U.S. government-sponsored agencies | | 187,074 |
| | 5,498 |
| | 75,882 |
| | 4,630 |
| | 262,956 |
| | 10,128 |
| Obligations of states and political subdivisions | | 12,195 |
| | 60 |
| | 14,002 |
| | 527 |
| | 26,197 |
| | 587 |
| Commercial mortgage-backed | | 60,331 |
| | 2,750 |
| | 8,193 |
| | 773 |
| | 68,524 |
| | 3,523 |
| Residential mortgage-backed | | 97,256 |
| | 2,616 |
| | 18,781 |
| | 2,053 |
| | 116,037 |
| | 4,669 |
| Other asset-backed | | 4,976 |
| | 122 |
| | 12,134 |
| | 883 |
| | 17,110 |
| | 1,005 |
| Corporate | | 195,886 |
| | 3,227 |
| | 3,998 |
| | 186 |
| | 199,884 |
| | 3,413 |
| Total fixed maturity securities | | $ | 565,632 |
| | $ | 14,486 |
| | $ | 132,990 |
| | $ | 9,052 |
| | $ | 698,622 |
| | $ | 23,538 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2017 | | Less than twelve months | | Twelve months or longer | | Total | ($ in thousands) | | Fair values | | Unrealized losses | | Fair values | | Unrealized losses | | Fair values | | Unrealized losses | Securities available-for-sale: | | | | | | | | | | | | | Fixed maturity securities: | | | | | | | | | | | | | U.S. treasury | | $ | 8,078 |
| | $ | 37 |
| | $ | — |
| | $ | — |
| | $ | 8,078 |
| | $ | 37 |
| U.S. government-sponsored agencies | | 134,284 |
| | 1,491 |
| | 127,604 |
| | 4,614 |
| | 261,888 |
| | 6,105 |
| Obligations of states and political subdivisions | | — |
| | — |
| | 14,416 |
| | 231 |
| | 14,416 |
| | 231 |
| Commercial mortgage-backed | | 32,155 |
| | 221 |
| | 8,530 |
| | 448 |
| | 40,685 |
| | 669 |
| Residential mortgage-backed | | 30,003 |
| | 394 |
| | 22,948 |
| | 2,840 |
| | 52,951 |
| | 3,234 |
| Other asset-backed | | — |
| | — |
| | 13,440 |
| | 445 |
| | 13,440 |
| | 445 |
| Corporate | | 28,314 |
| | 329 |
| | 4,047 |
| | 136 |
| | 32,361 |
| | 465 |
| Total fixed maturity securities | | 232,834 |
| | 2,472 |
| | 190,985 |
| | 8,714 |
| | 423,819 |
| | 11,186 |
| Equity securities: | | | | | | | | | | | | | Common stocks: | | | | | | | | | | | | | Financial services | | 4,391 |
| | 175 |
| | — |
| | — |
| | 4,391 |
| | 175 |
| Information technology | | 344 |
| | 2 |
| | — |
| | — |
| | 344 |
| | 2 |
| Healthcare | | 2,532 |
| | 158 |
| | — |
| | — |
| | 2,532 |
| | 158 |
| Consumer staples | | 575 |
| | 65 |
| | — |
| | — |
| | 575 |
| | 65 |
| Consumer discretionary | | 992 |
| | 37 |
| | — |
| | — |
| | 992 |
| | 37 |
| Energy | | 3,181 |
| | 917 |
| | — |
| | — |
| | 3,181 |
| | 917 |
| Industrials | | 3,016 |
| | 14 |
| | — |
| | — |
| | 3,016 |
| | 14 |
| Non-redeemable preferred stocks | | — |
| | — |
| | 1,961 |
| | 39 |
| | 1,961 |
| | 39 |
| Total equity securities | | 15,031 |
| | 1,368 |
| | 1,961 |
| | 39 |
| | 16,992 |
| | 1,407 |
| Total temporarily impaired securities | | $ | 247,865 |
| | $ | 3,840 |
| | $ | 192,946 |
| | $ | 8,753 |
| | $ | 440,811 |
| | $ | 12,593 |
|
|
Amortized cost and estimated fair value of fixed maturity securities |
The amortized cost and estimated fair values of fixed maturity securities at June 30, 2018, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations, with or without call or prepayment penalties. | | | | | | | | | | ($ in thousands) | | Amortized cost | | Estimated fair values | Securities available-for-sale: | | | | | Due in one year or less | | $ | 39,947 |
| | $ | 40,411 |
| Due after one year through five years | | 207,717 |
| | 208,900 |
| Due after five years through ten years | | 366,053 |
| | 362,780 |
| Due after ten years | | 422,003 |
| | 423,852 |
| Securities not due at a single maturity date | | 211,997 |
| | 205,756 |
| Totals | | $ | 1,247,717 |
| | $ | 1,241,699 |
|
|
Summary of realized investment gains and (losses) |
A summary of realized investment gains and (losses) and the change in unrealized investment gains on equity investments is as follows: | | | | | | | | | | | | | | | | | | | | Three months ended June 30, | | Six months ended June 30, | ($ in thousands) | | 2018 | | 2017 | | 2018 | | 2017 | Fixed maturity securities available-for-sale: | | | | | | | | | Gross realized investment gains | | $ | — |
| | $ | 289 |
| | $ | 234 |
| | $ | 379 |
| Gross realized investment losses | | (5,490 | ) | | (880 | ) | | (5,968 | ) | | (2,086 | ) | | | | | | | | | | Equity securities: | | | | | | | | | Net realized investment gains, excluding "other-than-temporary" impairments | | 1,479 |
| | 6,026 |
| | 4,195 |
| | 8,802 |
| Change in unrealized investment gains | | (447 | ) | | XXXX |
| | (10,301 | ) | | XXXX |
| "Other-than-temporary" impairments | | XXXX |
| | (733 | ) | | XXXX |
| | (733 | ) | | | | | | | | | | Other long-term investments, net | | (1,402 | ) | | (1,315 | ) | | 587 |
| | (3,602 | ) | Totals | | $ | (5,860 | ) | | $ | 3,387 |
| | $ | (11,253 | ) | | $ | 2,760 |
|
|