Investments

12 Months Ended

Dec. 31, 2021

Investments

The following table presents gains (losses) due to changes in fair value of investments that are measured at fair value pursuant to application of the fair value option:


	Year Ended December 31,
	2021		2020		2019
	(Amounts in thousands)
Fixed maturity securities	$	(39,649)	$	41,394	$	104,379
Equity securities	107,701		32,232		90,920
Short-term investments	(141)		(1,014)		1,295
Total gains	$	67,911	$	72,612	$	196,594

The following table presents gross gains (losses) realized on the sales of investments:


	Year Ended December 31,
	2021						2020						2019
	(Amounts in thousands)
	Gross Realized Gains		Gross Realized Losses		Net		Gross Realized Gains		Gross Realized Losses		Net		Gross Realized Gains		Gross Realized Losses		Net
Fixed maturity securities	$	2,306	$	(6,690)	$	(4,384)	$	1,884	$	(4,296)	$	(2,412)	$	2,413	$	(1,066)	$	1,347
Equity securities	64,061		(18,826)		45,235		75,591		(80,134)		(4,543)		47,411		(28,089)		19,322
Short-term investments	236		(381)		(145)		146		(2,438)		(2,292)		177		(2,133)		(1,956)

Contractual Maturity

At December 31, 2021, fixed maturity holdings rated below investment grade and non-rated comprised 0.4% of total investments at fair value. Additionally, the Company owns securities that are credit enhanced by financial guarantors that are subject to uncertainty related to market perception of the guarantors’ ability to perform. Determining the estimated fair value of municipal bonds could become more difficult should markets for these securities become illiquid.

The following table presents the estimated fair values of the Company's fixed maturity securities at December 31, 2021 by contractual maturity. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


	Estimated Fair Value
	(Amounts in thousands)
Fixed maturity securities:
Due in one year or less	$	403,269
Due after one year through five years	791,879
Due after five years through ten years	806,813
Due after ten years	2,029,562
Total	$	4,031,523

Investment Income

The following table presents a summary of net investment income:


	Year Ended December 31,
	2021		2020		2019
	(Amounts in thousands)
Fixed maturity securities	$	100,001	$	100,166	$	102,254
Equity securities	35,064		37,598		32,233
Short-term investments	1,059		2,822		12,381
Total investment income	$	136,124	$	140,586	$	146,868
Less: investment expense	(6,397)		(5,728)		(5,605)
Net investment income	$	129,727	$	134,858	$	141,263