XML 35 R23.htm IDEA: XBRL DOCUMENT v3.7.0.1
Investments (Tables)
 6 Months Ended
Jun. 30, 2017
Investments Debt And Equity Securities [Abstract]  
Available-for-Sale Investments Including Other-Than-Temporarily Impaired Securities Recognized within Accumulated Other Comprehensive Income

The following tables set forth our Company’s available-for-sale investments as of June 30, 2017 and December 31, 2016 and include Other-Than-Temporary-Impairment (“OTTI”) securities recognized within Accumulated Other Comprehensive Income (“AOCI”):

 

 

 

June 30, 2017

 

 

 

 

 

 

 

Gross

 

 

Gross

 

 

Cost or

 

 

 

Fair

 

 

Unrealized

 

 

Unrealized

 

 

Amortized

 

amounts in thousands

 

Value

 

 

Gains

 

 

(Losses)

 

 

Cost

 

Fixed Maturities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury Bonds, Agency Bonds and Foreign

   Government Bonds

 

$

264,511

 

 

$

2,888

 

 

$

(2,660

)

 

$

264,283

 

States, Municipalities and Political Subdivisions

 

 

655,064

 

 

 

19,306

 

 

 

(2,004

)

 

 

637,762

 

Mortgage-Backed and Asset-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency Mortgage-Backed Securities

 

 

455,133

 

 

 

3,849

 

 

 

(5,389

)

 

 

456,673

 

Residential Mortgage Obligations

 

 

18,037

 

 

 

506

 

 

 

(25

)

 

 

17,556

 

Asset-Backed Securities

 

 

315,945

 

 

 

1,915

 

 

 

(478

)

 

 

314,508

 

Commercial Mortgage-Backed Securities

 

 

145,573

 

 

 

2,883

 

 

 

(1,432

)

 

 

144,122

 

Subtotal

 

$

934,688

 

 

$

9,153

 

 

$

(7,324

)

 

$

932,859

 

Corporate Exposures

 

 

896,141

 

 

 

17,490

 

 

 

(2,355

)

 

 

881,006

 

Total Fixed Maturities

 

$

2,750,404

 

 

$

48,837

 

 

$

(14,343

)

 

$

2,715,910

 

Equity Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stocks

 

$

172,456

 

 

$

30,985

 

 

$

(1,023

)

 

$

142,494

 

Preferred Stocks

 

 

179,606

 

 

 

10,088

 

 

 

(499

)

 

 

170,017

 

Total Equity Securities

 

$

352,062

 

 

$

41,073

 

 

$

(1,522

)

 

$

312,511

 

Short-Term Investments

 

 

130,881

 

 

 

283

 

 

 

—

 

 

 

130,598

 

Total Investments

 

$

3,233,347

 

 

$

90,193

 

 

$

(15,865

)

 

$

3,159,019

 

 

 

 

December 31, 2016

 

 

 

 

 

 

 

Gross

 

 

Gross

 

 

Cost or

 

 

 

Fair

 

 

Unrealized

 

 

Unrealized

 

 

Amortized

 

amounts in thousands

 

Value

 

 

Gains

 

 

(Losses)

 

 

Cost

 

Fixed Maturities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury Bonds, Agency Bonds and Foreign

   Government Bonds

 

$

273,776

 

 

$

2,192

 

 

$

(5,128

)

 

$

276,712

 

States, Municipalities and Political Subdivisions

 

 

547,415

 

 

 

11,542

 

 

 

(4,036

)

 

 

539,909

 

Mortgage-Backed and Asset-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency Mortgage-Backed Securities

 

 

487,364

 

 

 

4,016

 

 

 

(6,585

)

 

 

489,933

 

Residential Mortgage Obligations

 

 

20,530

 

 

 

453

 

 

 

(55

)

 

 

20,132

 

Asset-Backed Securities

 

 

314,601

 

 

 

824

 

 

 

(1,178

)

 

 

314,955

 

Commercial Mortgage-Backed Securities

 

 

154,139

 

 

 

2,859

 

 

 

(1,904

)

 

 

153,184

 

Subtotal

 

$

976,634

 

 

$

8,152

 

 

$

(9,722

)

 

$

978,204

 

Corporate Exposures

 

 

838,057

 

 

 

10,185

 

 

 

(5,528

)

 

 

833,400

 

Total Fixed Maturities

 

$

2,635,882

 

 

$

32,071

 

 

$

(24,414

)

 

$

2,628,225

 

Equity Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stocks

 

$

164,087

 

 

$

24,677

 

 

$

(964

)

 

$

140,374

 

Preferred Stocks

 

 

185,055

 

 

 

2,339

 

 

 

(4,821

)

 

 

187,537

 

Total Equity Securities

 

$

349,142

 

 

$

27,016

 

 

$

(5,785

)

 

$

327,911

 

Short-Term Investments

 

 

143,539

 

 

 

88

 

 

 

—

 

 

 

143,451

 

Total Investments

 

$

3,128,563

 

 

$

59,175

 

 

$

(30,199

)

 

$

3,099,587

 

 
Scheduled Maturity Dates for Fixed Maturity Securities by Number of Years Until Maturity

The contractual maturity dates for Fixed Maturities categorized by the number of years until maturity as of June 30, 2017 are shown in the following table:

 

 

 

June 30, 2017

 

 

 

Fair

 

 

Amortized

 

amounts in thousands

 

Value

 

 

Cost

 

Due in one year or less

 

$

208,510

 

 

$

208,573

 

Due after one year through five years

 

 

719,399

 

 

 

714,152

 

Due after five years through ten years

 

 

313,225

 

 

 

305,230

 

Due after ten years

 

 

574,582

 

 

 

555,096

 

Mortgage-Backed and Asset-Backed Securities

 

 

934,688

 

 

 

932,859

 

Total

 

$

2,750,404

 

 

$

2,715,910

 

 
Summary of Aggregate Fair Value and Gross Unrealized Loss by Length of Time Securities had Continuously been in Gross Unrealized Loss Position

The following tables summarize all securities in a gross unrealized loss position as of June 30, 2017 and December 31, 2016, showing the aggregate fair value and gross unrealized loss by the length of time those securities have continuously been in a gross unrealized loss position:

 

 

 

June 30, 2017

 

 

 

Less than 12 months

 

 

Greater than 12 months

 

 

Total

 

 

 

 

 

 

 

Gross

 

 

 

 

 

 

Gross

 

 

 

 

 

 

Gross

 

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

amounts in thousands

 

Value

 

 

(Losses)

 

 

Value

 

 

(Losses)

 

 

Value

 

 

(Losses)

 

Fixed Maturities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury Bonds, Agency Bonds and Foreign

   Government Bonds

 

$

127,900

 

 

$

(1,339

)

 

$

17,878

 

 

$

(1,321

)

 

$

145,778

 

 

$

(2,660

)

States, Municipalities and Political Subdivisions

 

 

75,488

 

 

 

(1,405

)

 

 

21,502

 

 

 

(599

)

 

 

96,990

 

 

 

(2,004

)

Mortgage-Backed and Asset-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency Mortgage-Backed Securities

 

 

307,616

 

 

 

(4,995

)

 

 

11,068

 

 

 

(394

)

 

 

318,684

 

 

 

(5,389

)

Residential Mortgage Obligations

 

 

262

 

 

 

(1

)

 

 

746

 

 

 

(24

)

 

 

1,008

 

 

 

(25

)

Asset-Backed Securities

 

 

77,936

 

 

 

(465

)

 

 

2,694

 

 

 

(13

)

 

 

80,630

 

 

 

(478

)

Commercial Mortgage-Backed Securities

 

 

33,780

 

 

 

(651

)

 

 

6,359

 

 

 

(781

)

 

 

40,139

 

 

 

(1,432

)

Subtotal

 

$

419,594

 

 

$

(6,112

)

 

$

20,867

 

 

$

(1,212

)

 

$

440,461

 

 

$

(7,324

)

Corporate Exposures

 

 

214,720

 

 

 

(2,207

)

 

 

20,848

 

 

 

(148

)

 

 

235,568

 

 

 

(2,355

)

Total Fixed Maturities

 

$

837,702

 

 

$

(11,063

)

 

$

81,095

 

 

$

(3,280

)

 

$

918,797

 

 

$

(14,343

)

Equity Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stocks

 

$

26,598

 

 

$

(1,023

)

 

$

—

 

 

$

—

 

 

$

26,598

 

 

$

(1,023

)

Preferred Stocks

 

 

21,604

 

 

 

(467

)

 

 

528

 

 

 

(32

)

 

 

22,132

 

 

 

(499

)

Total Equity Securities

 

$

48,202

 

 

$

(1,490

)

 

$

528

 

 

$

(32

)

 

$

48,730

 

 

$

(1,522

)

Total Fixed Maturities and Equity Securities

 

$

885,904

 

 

$

(12,553

)

 

$

81,623

 

 

$

(3,312

)

 

$

967,527

 

 

$

(15,865

)

 

 

 

December 31, 2016

 

 

 

Less than 12 months

 

 

Greater than 12 months

 

 

Total

 

 

 

 

 

 

 

Gross

 

 

 

 

 

 

Gross

 

 

 

 

 

 

Gross

 

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

amounts in thousands

 

Value

 

 

(Losses)

 

 

Value

 

 

(Losses)

 

 

Value

 

 

(Losses)

 

Fixed Maturities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury Bonds, Agency Bonds and Foreign

   Government Bonds

 

$

150,891

 

 

$

(2,570

)

 

$

16,819

 

 

$

(2,558

)

 

$

167,710

 

 

$

(5,128

)

States, Municipalities and Political Subdivisions

 

 

137,731

 

 

 

(3,111

)

 

 

13,255

 

 

 

(925

)

 

 

150,986

 

 

 

(4,036

)

Mortgage-Backed and Asset-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency Mortgage-Backed Securities

 

 

349,119

 

 

 

(6,155

)

 

 

12,401

 

 

 

(430

)

 

 

361,520

 

 

 

(6,585

)

Residential Mortgage Obligations

 

 

953

 

 

 

(18

)

 

 

926

 

 

 

(37

)

 

 

1,879

 

 

 

(55

)

Asset-Backed Securities

 

 

95,514

 

 

 

(970

)

 

 

48,093

 

 

 

(208

)

 

 

143,607

 

 

 

(1,178

)

Commercial Mortgage-Backed Securities

 

 

51,932

 

 

 

(1,164

)

 

 

7,910

 

 

 

(740

)

 

 

59,842

 

 

 

(1,904

)

Subtotal

 

$

497,518

 

 

$

(8,307

)

 

$

69,330

 

 

$

(1,415

)

 

$

566,848

 

 

$

(9,722

)

Corporate Exposures

 

 

325,733

 

 

 

(5,086

)

 

 

26,005

 

 

 

(442

)

 

 

351,738

 

 

 

(5,528

)

Total Fixed Maturities

 

$

1,111,873

 

 

$

(19,074

)

 

$

125,409

 

 

$

(5,340

)

 

$

1,237,282

 

 

$

(24,414

)

Equity Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stocks

 

$

31,272

 

 

$

(634

)

 

$

1,471

 

 

$

(330

)

 

$

32,743

 

 

$

(964

)

Preferred Stocks

 

 

113,742

 

 

 

(4,785

)

 

 

523

 

 

 

(36

)

 

 

114,265

 

 

 

(4,821

)

Total Equity Securities

 

$

145,014

 

 

$

(5,419

)

 

$

1,994

 

 

$

(366

)

 

$

147,008

 

 

$

(5,785

)

Total Fixed Maturities and Equity Securities

 

$

1,256,887

 

 

$

(24,493

)

 

$

127,403

 

 

$

(5,706

)

 

$

1,384,290

 

 

$

(30,199

)

 
Summary of Cumulative Amounts Related to Credit Loss Portion of Other-Than-Temporary Impairment Losses on Debt Securities

The following table summarizes the cumulative amounts related to our Company’s credit loss portion of the OTTI losses on Fixed Maturities for the three and six months ended June 30, 2017 and 2016:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

amounts in thousands

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Beginning Balance

 

$

2,361

 

 

$

2,361

 

 

$

2,361

 

 

$

2,361

 

Additions for Credit Loss Impairments recognized in the

   current period on securities not previously impaired

 

 

—

 

 

 

150

 

 

 

—

 

 

 

150

 

Additions for Credit Loss Impairments recognized in the

   current period on securities previously impaired

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Reductions for Credit Loss Impairments previously

   recognized  on securities sold during the period

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Ending Balance

 

$

2,361

 

 

$

2,511

 

 

$

2,361

 

 

$

2,511

 

 
Net Investment Income

 

Our Company’s Net Investment Income was derived from the following sources:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

amounts in thousands

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Fixed Maturities

 

$

19,186

 

 

$

16,920

 

 

$

37,527

 

 

$

33,657

 

Equity Securities

 

 

3,780

 

 

 

3,431

 

 

 

7,564

 

 

 

6,878

 

Short-Term Investments

 

 

200

 

 

 

288

 

 

 

412

 

 

 

498

 

Total Investment Income

 

$

23,166

 

 

$

20,639

 

 

$

45,503

 

 

$

41,033

 

Investment Expenses

 

 

(901

)

 

 

(764

)

 

 

(1,790

)

 

 

(1,564

)

Net Investment Income

 

$

22,265

 

 

$

19,875

 

 

$

43,713

 

 

$

39,469

 

 
Realized Gains and Losses, Excluding Net Other-Than-Temporary Impairment Losses Recognized in Earnings

Realized Gains and Losses, excluding net OTTI losses recognized in earnings, for the periods indicated, were as follows:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

amounts in thousands

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Fixed Maturities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains

 

$

344

 

 

$

1,296

 

 

$

812

 

 

$

3,844

 

Losses

 

 

(958

)

 

 

(738

)

 

 

(2,214

)

 

 

(1,865

)

Fixed Maturities, Net

 

$

(614

)

 

$

558

 

 

$

(1,402

)

 

$

1,979

 

Short-Term:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains

 

$

135

 

 

$

407

 

 

$

247

 

 

$

675

 

Losses

 

 

(69

)

 

 

(60

)

 

 

(260

)

 

 

(143

)

Short-Term, Net

 

$

66

 

 

$

347

 

 

$

(13

)

 

$

532

 

Equity Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains

 

$

2,470

 

 

$

1,071

 

 

$

4,386

 

 

$

1,680

 

Losses

 

 

(228

)

 

 

(16

)

 

 

(228

)

 

 

(634

)

Equity Securities, Net

 

$

2,242

 

 

$

1,055

 

 

$

4,158

 

 

$

1,046

 

Net Realized Gains

 

$

1,694

 

 

$

1,960

 

 

$

2,743

 

 

$

3,557