XML 36 R24.htm IDEA: XBRL DOCUMENT v3.10.0.1
Investments (Tables)
 6 Months Ended
Jun. 30, 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 June 30, 2018 and December 31, 2017 and include Other-Than-Temporary-Impairment (“OTTI”) securities recognized within Accumulated Other Comprehensive Income (“AOCI”):

 

 

 

June 30, 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

 

$

289,612

 

 

$

955

 

 

$

(4,189

)

 

$

292,846

 

States, Municipalities and Political Subdivisions

 

 

658,129

 

 

 

10,410

 

 

 

(4,870

)

 

 

652,589

 

Mortgage-Backed and Asset-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency Residential Mortgage-Backed Securities

 

 

362,870

 

 

 

1,091

 

 

 

(14,497

)

 

 

376,276

 

Residential Mortgage Obligations

 

 

96,134

 

 

 

464

 

 

 

(431

)

 

 

96,101

 

Asset-Backed Securities

 

 

476,838

 

 

 

737

 

 

 

(2,749

)

 

 

478,850

 

Commercial Mortgage-Backed Securities

 

 

168,609

 

 

 

807

 

 

 

(2,817

)

 

 

170,619

 

Subtotal

 

$

1,104,451

 

 

$

3,099

 

 

$

(20,494

)

 

$

1,121,846

 

Corporate Exposures (1)

 

 

909,349

 

 

 

4,303

 

 

 

(19,302

)

 

 

924,348

 

Total Fixed Maturities

 

$

2,961,541

 

 

$

18,767

 

 

$

(48,855

)

 

$

2,991,629

 

Short-Term Investments

 

 

6,368

 

 

 

—

 

 

 

—

 

 

 

6,368

 

Total Available-For-Sale Investments

 

$

2,967,909

 

 

$

18,767

 

 

$

(48,855

)

 

$

2,997,997

 

 

(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 June 30, 2018:

 

 

 

As of June 30, 2018

 

 

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

 

Fair

 

 

Unrealized

 

 

Unrealized

 

 

Cost

 

amounts in thousands

 

Value

 

 

Gains

 

 

(Losses)

 

 

 

 

 

Equity Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stocks

 

$

145,077

 

 

$

9,749

 

 

$

(499

)

 

$

135,827

 

Preferred Stocks

 

 

182,389

 

 

 

3,854

 

 

 

(3,135

)

 

 

181,670

 

Total Equity Securities

 

$

327,466

 

 

$

13,603

 

 

$

(3,634

)

 

$

317,497

 

 
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, 2018 are shown in the following table:

 

 

 

June 30, 2018

 

 

 

Fair

 

 

Amortized

 

amounts in thousands

 

Value

 

 

Cost

 

Due in one year or less

 

$

219,948

 

 

$

221,066

 

Due after one year through five years

 

 

722,278

 

 

 

732,073

 

Due after five years through ten years

 

 

336,352

 

 

 

338,140

 

Due after ten years

 

 

578,512

 

 

 

578,504

 

Mortgage-Backed and Asset-Backed Securities

 

 

1,104,451

 

 

 

1,121,846

 

Total

 

$

2,961,541

 

 

$

2,991,629

 

 
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 June 30, 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:

 

 

 

June 30, 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

 

$

220,029

 

 

$

(3,420

)

 

$

39,864

 

 

$

(769

)

 

$

259,893

 

 

$

(4,189

)

States, Municipalities and Political Subdivisions

 

 

213,600

 

 

 

(3,184

)

 

 

42,654

 

 

 

(1,686

)

 

 

256,254

 

 

 

(4,870

)

Mortgage-Backed and Asset-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency Residential Mortgage-Backed Securities

 

 

115,138

 

 

 

(3,504

)

 

 

214,279

 

 

 

(10,993

)

 

 

329,417

 

 

 

(14,497

)

Residential Mortgage Obligations

 

 

78,032

 

 

 

(421

)

 

 

387

 

 

 

(10

)

 

 

78,419

 

 

 

(431

)

Asset-Backed Securities

 

 

273,120

 

 

 

(2,413

)

 

 

23,583

 

 

 

(336

)

 

 

296,703

 

 

 

(2,749

)

Commercial Mortgage-Backed Securities

 

 

59,304

 

 

 

(954

)

 

 

22,124

 

 

 

(1,863

)

 

 

81,428

 

 

 

(2,817

)

Subtotal

 

$

525,594

 

 

$

(7,292

)

 

$

260,373

 

 

$

(13,202

)

 

$

785,967

 

 

$

(20,494

)

Corporate Exposures (1)

 

 

643,226

 

 

 

(15,432

)

 

 

101,454

 

 

 

(3,870

)

 

 

744,680

 

 

 

(19,302

)

Total Fixed Maturities

 

$

1,602,449

 

 

$

(29,328

)

 

$

444,345

 

 

$

(19,527

)

 

$

2,046,794

 

 

$

(48,855

)

 

(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 June 30,

 

 

Six Months Ended June 30,

 

amounts in thousands

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Fixed Maturities

 

$

21,719

 

 

$

19,186

 

 

$

42,771

 

 

$

37,527

 

Equity Securities

 

 

3,161

 

 

 

3,780

 

 

 

6,086

 

 

 

7,564

 

Short-Term Investments, Cash & Cash Equivalents

 

 

415

 

 

 

87

 

 

 

642

 

 

 

170

 

Other Invested Assets

 

 

141

 

 

 

113

 

 

 

327

 

 

 

242

 

Total Investment Income

 

$

25,436

 

 

$

23,166

 

 

$

49,826

 

 

$

45,503

 

Investment Expenses

 

 

(835

)

 

 

(901

)

 

 

(1,523

)

 

 

(1,790

)

Net Investment Income

 

$

24,601

 

 

$

22,265

 

 

$

48,303

 

 

$

43,713

 

 
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 June 30,

 

 

Six Months Ended June 30,

 

amounts in thousands

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Fixed Maturities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains

 

$

1,541

 

 

$

344

 

 

$

3,347

 

 

$

812

 

Losses

 

 

(481

)

 

 

(958

)

 

 

(756

)

 

 

(2,214

)

Fixed Maturities, Net

 

$

1,060

 

 

$

(614

)

 

$

2,591

 

 

$

(1,402

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-Term Investments, Cash & Cash Equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains

 

$

63

 

 

$

119

 

 

$

81

 

 

$

226

 

Losses

 

 

(21

)

 

 

(45

)

 

 

(195

)

 

 

(125

)

Short-Term, Net

 

$

42

 

 

$

74

 

 

$

(114

)

 

$

101

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Invested Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains

 

$

20

 

 

$

16

 

 

$

70

 

 

$

21

 

Losses

 

 

(45

)

 

 

(24

)

 

 

(86

)

 

 

(135

)

Other Invested Assets, Net

 

$

(25

)

 

$

(8

)

 

$

(16

)

 

$

(114

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains

 

$

754

 

 

$

2,470

 

 

$

754

 

 

$

4,386

 

Losses

 

 

(44

)

 

 

(228

)

 

 

(259

)

 

 

(228

)

Equity Securities, Net

 

$

710

 

 

$

2,242

 

 

$

495

 

 

$

4,158

 

Net Realized Gains on Investments Sold

 

$

1,787

 

 

$

1,694

 

 

$

2,956

 

 

$

2,743

 

 
Portion of Net Unrealized Losses Recognized to Equity Securities

The following table presents the portion of Net Unrealized Gains (Losses) recognized during the three and six months ended June 30, 2018, that relates to Equity Securities held as of June 30, 2018:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

amounts in thousands

 

2018

 

 

2018

 

Equity Securities:

 

 

 

 

 

 

 

 

Total Net Realized and Unrealized Gains (Losses) recognized

  during the period

 

$

2,039

 

 

$

(1,357

)

Less: Net Realized Gains on Investments Sold recognized during

  the period

 

 

710

 

 

 

495

 

Net Unrealized Gains (Losses) recognized during the period

 

$

1,329

 

 

$

(1,852

)