XML 35 R23.htm IDEA: XBRL DOCUMENT v3.8.0.1
Investments (Tables)
 9 Months Ended
Sep. 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 September 30, 2017 and December 31, 2016 and include Other-Than-Temporary-Impairment (“OTTI”) securities recognized within Accumulated Other Comprehensive Income (“AOCI”):

 

 

 

September 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

 

$

269,851

 

 

$

8,169

 

 

$

(607

)

 

$

262,289

 

States, Municipalities and Political Subdivisions

 

 

684,792

 

 

 

20,643

 

 

 

(1,481

)

 

 

665,630

 

Mortgage-Backed and Asset-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency Mortgage-Backed Securities

 

 

426,441

 

 

 

3,365

 

 

 

(4,298

)

 

 

427,374

 

Residential Mortgage Obligations

 

 

34,748

 

 

 

570

 

 

 

(27

)

 

 

34,205

 

Asset-Backed Securities

 

 

331,646

 

 

 

2,503

 

 

 

(426

)

 

 

329,569

 

Commercial Mortgage-Backed Securities

 

 

140,601

 

 

 

2,742

 

 

 

(1,308

)

 

 

139,167

 

Subtotal

 

$

933,436

 

 

$

9,180

 

 

$

(6,059

)

 

$

930,315

 

Corporate Exposures (1)

 

 

910,106

 

 

 

18,221

 

 

 

(1,983

)

 

 

893,868

 

Total Fixed Maturities

 

$

2,798,185

 

 

$

56,213

 

 

$

(10,130

)

 

$

2,752,102

 

Equity Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stocks

 

$

180,771

 

 

$

35,179

 

 

$

(815

)

 

$

146,407

 

Preferred Stocks

 

 

195,105

 

 

 

7,418

 

 

 

(645

)

 

 

188,332

 

Total Equity Securities

 

$

375,876

 

 

$

42,597

 

 

$

(1,460

)

 

$

334,739

 

Short-Term Investments

 

 

247,607

 

 

 

5

 

 

 

—

 

 

 

247,602

 

Total Investments

 

$

3,421,668

 

 

$

98,815

 

 

$

(11,590

)

 

$

3,334,443

 

 

 

(1) - Corporate Exposures consist of investments in corporate bonds, hybrid bonds and redeemable preferred stocks.

 

 

 

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 (1)

 

 

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

 

 

(1) - Corporate Exposures consist of investments in corporate bonds, hybrid bonds and redeemable preferred stocks.
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 September 30, 2017 are shown in the following table:

 

 

 

September 30, 2017

 

 

 

Fair

 

 

Amortized

 

amounts in thousands

 

Value

 

 

Cost

 

Due in one year or less

 

$

218,780

 

 

$

216,537

 

Due after one year through five years

 

 

708,302

 

 

 

697,520

 

Due after five years through ten years

 

 

333,260

 

 

 

324,180

 

Due after ten years

 

 

604,407

 

 

 

583,550

 

Mortgage-Backed and Asset-Backed Securities

 

 

933,436

 

 

 

930,315

 

Total

 

$

2,798,185

 

 

$

2,752,102

 

 
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 September 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:

 

 

 

September 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

 

$

67,562

 

 

$

(344

)

 

$

31,928

 

 

$

(263

)

 

$

99,490

 

 

$

(607

)

States, Municipalities and Political Subdivisions

 

 

80,570

 

 

 

(732

)

 

 

31,125

 

 

 

(749

)

 

 

111,695

 

 

 

(1,481

)

Mortgage-Backed and Asset-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency Mortgage-Backed Securities

 

 

237,804

 

 

 

(2,846

)

 

 

56,656

 

 

 

(1,452

)

 

 

294,460

 

 

 

(4,298

)

Residential Mortgage Obligations

 

 

7,899

 

 

 

(6

)

 

 

586

 

 

 

(21

)

 

 

8,485

 

 

 

(27

)

Asset-Backed Securities

 

 

69,885

 

 

 

(379

)

 

 

4,942

 

 

 

(47

)

 

 

74,827

 

 

 

(426

)

Commercial Mortgage-Backed Securities

 

 

41,572

 

 

 

(594

)

 

 

7,924

 

 

 

(714

)

 

 

49,496

 

 

 

(1,308

)

Subtotal

 

$

357,160

 

 

$

(3,825

)

 

$

70,108

 

 

$

(2,234

)

 

$

427,268

 

 

$

(6,059

)

Corporate Exposures

 

 

150,289

 

 

 

(915

)

 

 

93,463

 

 

 

(1,068

)

 

 

243,752

 

 

 

(1,983

)

Total Fixed Maturities

 

$

655,581

 

 

$

(5,816

)

 

$

226,624

 

 

$

(4,314

)

 

$

882,205

 

 

$

(10,130

)

Equity Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stocks

 

$

15,633

 

 

$

(814

)

 

$

87

 

 

$

(1

)

 

$

15,720

 

 

$

(815

)

Preferred Stocks

 

 

31,775

 

 

 

(614

)

 

 

667

 

 

 

(31

)

 

 

32,442

 

 

 

(645

)

Total Equity Securities

 

$

47,408

 

 

$

(1,428

)

 

$

754

 

 

$

(32

)

 

$

48,162

 

 

$

(1,460

)

Total Fixed Maturities and Equity Securities

 

$

702,989

 

 

$

(7,244

)

 

$

227,378

 

 

$

(4,346

)

 

$

930,367

 

 

$

(11,590

)

 

 

 

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 nine months ended September 30, 2017 and 2016

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

amounts in thousands

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Beginning Balance

 

$

2,361

 

 

$

2,511

 

 

$

2,361

 

 

$

2,361

 

Additions for Credit Loss Impairments recognized in the

   current period on securities not previously impaired

 

 

—

 

 

 

—

 

 

 

—

 

 

 

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

 

 

—

 

 

 

(150

)

 

 

—

 

 

 

(150

)

Ending Balance

 

$

2,361

 

 

$

2,361

 

 

$

2,361

 

 

$

2,361

 

 
Net Investment Income

 

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

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

amounts in thousands

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Fixed Maturities

 

$

19,491

 

 

$

17,124

 

 

$

57,019

 

 

$

50,781

 

Equity Securities

 

 

3,774

 

 

 

3,540

 

 

 

11,337

 

 

 

10,418

 

Short-Term Investments

 

 

250

 

 

 

70

 

 

 

662

 

 

 

568

 

Total Investment Income

 

$

23,515

 

 

$

20,734

 

 

$

69,018

 

 

$

61,767

 

Investment Expenses

 

 

(917

)

 

 

(859

)

 

 

(2,707

)

 

 

(2,423

)

Net Investment Income

 

$

22,598

 

 

$

19,875

 

 

$

66,311

 

 

$

59,344

 

 
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 September 30,

 

 

Nine Months Ended September 30,

 

amounts in thousands

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Fixed Maturities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains

 

$

2,589

 

 

$

1,356

 

 

$

3,401

 

 

$

5,200

 

Losses

 

 

(900

)

 

 

(1,221

)

 

 

(3,114

)

 

 

(3,086

)

Fixed Maturities, Net

 

$

1,689

 

 

$

135

 

 

$

287

 

 

$

2,114

 

Short-Term:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains

 

$

767

 

 

$

128

 

 

$

1,014

 

 

$

803

 

Losses

 

 

(111

)

 

 

(107

)

 

 

(371

)

 

 

(250

)

Short-Term, Net

 

$

656

 

 

$

21

 

 

$

643

 

 

$

553

 

Equity Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains

 

$

2,863

 

 

$

1,443

 

 

$

7,249

 

 

$

3,123

 

Losses

 

 

(18

)

 

 

(13

)

 

 

(246

)

 

 

(647

)

Equity Securities, Net

 

$

2,845

 

 

$

1,430

 

 

$

7,003

 

 

$

2,476

 

Net Realized Gains

 

$

5,190

 

 

$

1,586

 

 

$

7,933

 

 

$

5,143