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Investments (Tables)
 12 Months Ended
Dec. 31, 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 December 31, 2017 and 2016 and include OTTI securities recognized within AOCI:

 

 

 

December 31, 2017

 

 

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

 

 

 

 

 

Unrealized

 

 

Unrealized

 

 

Amortized

 

amounts in thousands

 

Fair Value

 

 

Gains

 

 

Losses

 

 

Cost

 

Fixed Maturities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury Bonds, Agency Bonds and Foreign

   Government Bonds

 

$

393,563

 

 

$

2,081

 

 

$

(2,014

)

 

$

393,496

 

States, Municipalities and Political Subdivisions

 

 

814,632

 

 

 

20,136

 

 

 

(1,423

)

 

 

795,919

 

Mortgage-Backed and Asset-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency Mortgage-Backed Securities

 

 

407,619

 

 

 

2,352

 

 

 

(5,414

)

 

 

410,681

 

Residential Mortgage Obligations

 

 

54,104

 

 

 

606

 

 

 

(79

)

 

 

53,577

 

Asset-Backed Securities

 

 

328,753

 

 

 

2,138

 

 

 

(663

)

 

 

327,278

 

Commercial Mortgage-Backed Securities

 

 

160,904

 

 

 

2,354

 

 

 

(1,182

)

 

 

159,732

 

Subtotal

 

$

951,380

 

 

$

7,450

 

 

$

(7,338

)

 

$

951,268

 

Corporate Exposures (1)

 

 

897,479

 

 

 

14,491

 

 

 

(3,737

)

 

 

886,725

 

Total Fixed Maturities

 

$

3,057,054

 

 

$

44,158

 

 

$

(14,512

)

 

$

3,027,408

 

Equity Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stocks

 

$

52,439

 

 

$

7,423

 

 

$

(112

)

 

$

45,128

 

Preferred Stocks

 

 

183,542

 

 

 

6,071

 

 

 

(1,560

)

 

 

179,031

 

Total Equity Securities

 

$

235,981

 

 

$

13,494

 

 

$

(1,672

)

 

$

224,159

 

Short-Term Investments

 

 

127,128

 

 

 

3

 

 

 

—

 

 

 

127,125

 

Total Investments

 

$

3,420,163

 

 

$

57,655

 

 

$

(16,184

)

 

$

3,378,692

 

 

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

 

 

 

December 31, 2016

 

 

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

 

 

 

 

 

Unrealized

 

 

Unrealized

 

 

Amortized

 

amounts in thousands

 

Fair 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 December 31, 2017 are shown in the following table:

 

 

 

December 31, 2017

 

 

 

 

 

 

 

Amortized

 

amounts in thousands

 

Fair Value

 

 

Cost

 

Due in One Year or Less

 

$

228,479

 

 

$

228,255

 

Due after One Year Through Five Years

 

 

809,718

 

 

 

809,195

 

Due After Five Years Through Ten Years

 

 

359,745

 

 

 

352,524

 

Due After Ten Years

 

 

707,732

 

 

 

686,166

 

Mortgage-Backed and Asset-Backed Securities

 

 

951,380

 

 

 

951,268

 

Total

 

$

3,057,054

 

 

$

3,027,408

 

 
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 December 31, 2017 and 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:

 

 

 

December 31, 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

 

$

273,672

 

 

$

(1,502

)

 

$

54,484

 

 

$

(512

)

 

 

 

$

328,156

 

 

$

(2,014

)

States, Municipalities and Political Subdivisions

 

 

74,097

 

 

 

(503

)

 

 

45,085

 

 

 

(920

)

 

 

 

 

119,182

 

 

 

(1,423

)

Mortgage-Backed and Asset-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency Residential Mortgage-Backed Securities

 

 

87,496

 

 

 

(346

)

 

 

236,745

 

 

 

(5,068

)

 

 

 

 

324,241

 

 

 

(5,414

)

Residential Mortgage Obligations

 

 

12,418

 

 

 

(62

)

 

 

546

 

 

 

(17

)

 

 

 

 

12,964

 

 

 

(79

)

Asset-Backed Securities

 

 

85,877

 

 

 

(468

)

 

 

24,733

 

 

 

(195

)

 

 

 

 

110,610

 

 

 

(663

)

Commercial Mortgage-Backed Securities

 

 

20,482

 

 

 

(95

)

 

 

22,903

 

 

 

(1,087

)

 

 

 

 

43,385

 

 

 

(1,182

)

Subtotal

 

$

206,273

 

 

$

(971

)

 

$

284,927

 

 

$

(6,367

)

 

 

 

$

491,200

 

 

$

(7,338

)

Corporate Exposures (1)

 

 

295,433

 

 

 

(1,690

)

 

 

121,410

 

 

 

(2,047

)

 

 

 

 

416,843

 

 

 

(3,737

)

Total Fixed Maturities

 

$

849,475

 

 

$

(4,666

)

 

$

505,906

 

 

$

(9,846

)

 

 

 

$

1,355,381

 

 

$

(14,512

)

Equity Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stocks

 

$

11,245

 

 

$

(81

)

 

$

1,770

 

 

$

(31

)

 

 

 

$

13,015

 

 

$

(112

)

Preferred Stocks

 

 

50,861

 

 

 

(1,524

)

 

 

662

 

 

 

(36

)

 

 

 

 

51,523

 

 

 

(1,560

)

Total Equity Securities

 

$

62,106

 

 

$

(1,605

)

 

$

2,432

 

 

$

(67

)

 

 

 

$

64,538

 

 

$

(1,672

)

Total Fixed Maturities and Equity Securities

 

$

911,581

 

 

$

(6,271

)

 

$

508,338

 

 

$

(9,913

)

 

 

 

$

1,419,919

 

 

$

(16,184

)

 

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

 

 

 

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 Residential 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 (1)

 

 

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

)

(1) - Corporate Exposures consist of investments in corporate bonds, hybrid bonds and redeemable preferred stocks.
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 years ended December 31, 2017, 2016 and 2015.

 

 

 

Years Ended December 31,

 

amounts in thousands

 

2017

 

 

2016

 

 

2015

 

Beginning Balance

 

$

2,361

 

 

$

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

)

 

 

—

 

Ending Balance

 

$

2,361

 

 

$

2,361

 

 

$

2,361

 

 
Net Investment Income

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

 

 

 

Years Ended December 31,

 

amounts in thousands

 

2017

 

 

2016

 

 

2015

 

Fixed Maturities

 

$

76,784

 

 

$

67,772

 

 

$

61,572

 

Equity Securities

 

 

15,108

 

 

 

14,271

 

 

 

9,813

 

Short-Term Investments

 

 

1,064

 

 

 

727

 

 

 

683

 

Total Investment Income

 

$

92,956

 

 

$

82,770

 

 

$

72,068

 

Investment Expenses

 

 

(3,663

)

 

 

(3,319

)

 

 

(3,350

)

Net Investment Income

 

$

89,293

 

 

$

79,451

 

 

$

68,718

 

 
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:

 

 

 

Years Ended December 31,

 

amounts in thousands

 

2017

 

 

2016

 

 

2015

 

Fixed Maturities:

 

 

 

 

 

 

 

 

 

 

 

 

Gains

 

$

4,041

 

 

$

5,681

 

 

$

4,756

 

Losses

 

 

(3,249

)

 

 

(4,271

)

 

 

(5,926

)

Fixed Maturities, net

 

$

792

 

 

$

1,410

 

 

$

(1,170

)

Short-Term Investments:

 

 

 

 

 

 

 

 

 

 

 

 

Gains

 

$

1,631

 

 

$

890

 

 

$

130

 

Losses

 

 

(612

)

 

 

(1,552

)

 

 

(383

)

Short-Term Investments, Net

 

$

1,019

 

 

$

(662

)

 

$

(253

)

Equity Securities:

 

 

 

 

 

 

 

 

 

 

 

 

Gains

 

$

44,783

 

 

$

9,096

 

 

$

14,331

 

Losses

 

 

(1,521

)

 

 

(658

)

 

 

(4,535

)

Equity Securities, Net

 

$

43,262

 

 

$

8,438

 

 

$

9,796

 

Net Realized Gains (Losses)

 

$

45,073

 

 

$

9,186

 

 

$

8,373