XML 34 R21.htm IDEA: XBRL DOCUMENT v3.8.0.1
Investments (Tables)
 3 Months Ended
Mar. 31, 2018
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 March 31, 2018 and December 31, 2017 and include Other-Than-Temporary-Impairment (“OTTI”) securities recognized within Accumulated Other Comprehensive Income (“AOCI”):

 

 

 

March 31, 2018

 

 

 

 

 

 

 

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

 

$

357,303

 

 

$

1,192

 

 

$

(4,082

)

 

$

360,193

 

States, Municipalities and Political Subdivisions

 

 

721,232

 

 

 

11,912

 

 

 

(4,554

)

 

 

713,874

 

Mortgage-Backed and Asset-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency Residential Mortgage-Backed Securities

 

 

379,354

 

 

 

1,389

 

 

 

(13,466

)

 

 

391,431

 

Residential Mortgage Obligations

 

 

63,430

 

 

 

499

 

 

 

(266

)

 

 

63,197

 

Asset-Backed Securities

 

 

369,337

 

 

 

1,361

 

 

 

(1,701

)

 

 

369,677

 

Commercial Mortgage-Backed Securities

 

 

161,391

 

 

 

1,088

 

 

 

(2,051

)

 

 

162,354

 

Subtotal

 

$

973,512

 

 

$

4,337

 

 

$

(17,484

)

 

$

986,659

 

Corporate Exposures (1)

 

 

918,887

 

 

 

6,140

 

 

 

(14,019

)

 

 

926,766

 

Total Fixed Maturities

 

$

2,970,934

 

 

$

23,581

 

 

$

(40,139

)

 

$

2,987,492

 

Short-Term Investments

 

 

6,704

 

 

 

 

 

 

 

(3

)

 

 

6,707

 

Total Available-For-Sale Investments

 

$

2,977,638

 

 

$

23,581

 

 

$

(40,142

)

 

$

2,994,199

 

 

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

 

 

 

December 31, 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

 

$

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 Residential 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

 

 

6,480

 

 

 

3

 

 

 

—

 

 

 

6,477

 

Total Available-For-Sale Investments

 

$

3,299,515

 

 

$

57,655

 

 

$

(16,184

)

 

$

3,258,044

 

 

(1) - Corporate Exposures consist of investments in corporate bonds, hybrid bonds and redeemable preferred stocks.
Equity Securities at Fair Value

The following table sets forth our Company’s Equity Securities at fair value as of March 31, 2018:

 

 

 

 

March 31, 2018

 

 

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

 

Fair

 

 

Unrealized

 

 

Unrealized

 

 

Cost

 

amounts in thousands

 

Value

 

 

Gains

 

 

(Losses)

 

 

 

 

 

Equity Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stocks

 

$

59,734

 

 

$

7,163

 

 

$

(611

)

 

$

53,182

 

Preferred Stocks

 

 

194,660

 

 

 

4,827

 

 

 

(2,739

)

 

 

192,572

 

Total Equity Securities

 

$

254,394

 

 

$

11,990

 

 

$

(3,350

)

 

$

245,754

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
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 March 31, 2018 are shown in the following table:

 

 

 

March 31, 2018

 

 

 

Fair

 

 

Amortized

 

amounts in thousands

 

Value

 

 

Cost

 

Due in one year or less

 

$

232,015

 

 

$

232,571

 

Due after one year through five years

 

 

820,868

 

 

 

829,156

 

Due after five years through ten years

 

 

322,289

 

 

 

321,789

 

Due after ten years

 

 

622,250

 

 

 

617,317

 

Mortgage-Backed and Asset-Backed Securities

 

 

973,512

 

 

 

986,659

 

Total

 

$

2,970,934

 

 

$

2,987,492

 

 
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 Available-For-Sale securities in a gross unrealized loss position as of March 31, 2018 and December 31, 2017, 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:

 

 

 

March 31, 2018

 

 

 

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

 

$

273,221

 

 

$

(3,294

)

 

$

48,016

 

 

$

(788

)

 

$

321,237

 

 

$

(4,082

)

States, Municipalities and Political Subdivisions

 

 

216,589

 

 

 

(2,854

)

 

 

42,844

 

 

 

(1,700

)

 

 

259,433

 

 

 

(4,554

)

Mortgage-Backed and Asset-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency Residential Mortgage-Backed Securities

 

 

113,897

 

 

 

(3,147

)

 

 

223,552

 

 

 

(10,319

)

 

 

337,449

 

 

 

(13,466

)

Residential Mortgage Obligations

 

 

45,912

 

 

 

(252

)

 

 

405

 

 

 

(14

)

 

 

46,317

 

 

 

(266

)

Asset-Backed Securities

 

 

160,208

 

 

 

(1,329

)

 

 

23,794

 

 

 

(372

)

 

 

184,002

 

 

 

(1,701

)

Commercial Mortgage-Backed Securities

 

 

59,809

 

 

 

(480

)

 

 

22,411

 

 

 

(1,571

)

 

 

82,220

 

 

 

(2,051

)

Subtotal

 

$

379,826

 

 

$

(5,208

)

 

$

270,162

 

 

$

(12,276

)

 

$

649,988

 

 

$

(17,484

)

Corporate Exposures (1)

 

 

556,966

 

 

 

(10,530

)

 

 

118,233

 

 

 

(3,489

)

 

 

675,199

 

 

 

(14,019

)

Total Fixed Maturities

 

$

1,426,602

 

 

$

(21,886

)

 

$

479,255

 

 

$

(18,253

)

 

$

1,905,857

 

 

$

(40,139

)

 

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

 

 

 

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.

 
Net Investment Income

 

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

 

 

 

Three Months Ended March 31,

 

amounts in thousands

 

2018

 

 

2017

 

Fixed Maturities

 

$

21,052

 

 

$

18,341

 

Equity Securities

 

 

2,925

 

 

 

3,784

 

Short-Term Investments

 

 

227

 

 

 

83

 

Other Invested Assets

 

 

186

 

 

 

129

 

Total Investment Income

 

$

24,390

 

 

$

22,337

 

Investment Expenses

 

 

(688

)

 

 

(889

)

Net Investment Income

 

$

23,702

 

 

$

21,448

 

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

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

 

 

 

Three Months Ended March 31,

 

amounts in thousands

 

2018

 

 

2017

 

Fixed Maturities:

 

 

 

 

 

 

 

 

Gains

 

$

1,806

 

 

$

468

 

Losses

 

 

(275

)

 

 

(1,256

)

Fixed Maturities, Net

 

$

1,531

 

 

$

(788

)

Short-Term:

 

 

 

 

 

 

 

 

Gains

 

$

18

 

 

$

106

 

Losses

 

 

(174

)

 

 

(80

)

Short-Term, Net

 

$

(156

)

 

$

26

 

 

 

 

 

 

 

 

 

 

Other Invested Assets:

 

 

 

 

 

 

 

 

Gains

 

$

50

 

 

$

6

 

Losses

 

 

(41

)

 

 

(111

)

Other Invested Assets, Net

 

$

9

 

 

$

(105

)

 

 

 

 

 

 

 

 

 

Equity Securities:

 

 

 

 

 

 

 

 

Gains

 

$

—

 

 

$

1,916

 

Losses

 

 

(215

)

 

 

—

 

Equity Securities, Net

 

$

(215

)

 

$

1,916

 

Net Realized Gains on Investments Sold

 

$

1,169

 

 

$

1,049

 

 
Portion of Net Unrealized Losses Recognized to Equity Securities

The following table presents the portion of Net Unrealized Losses recognized during the period that relates to Equity Securities held as of March 31, 2018:

 

 

 

Three Months Ended March 31,

 

amounts in thousands

 

2018

 

Equity Securities:

 

 

 

 

Total Net Realized and Unrealized Losses recognized during the period

 

$

(3,396

)

Less: Net Realized Losses on Investments Sold recognized during the period

 

 

(215

)

Net Unrealized Losses recognized during the reporting period

 

$

(3,181

)