XML 37 R25.htm IDEA: XBRL DOCUMENT v3.10.0.1
Investments (Tables)
 9 Months Ended
Sep. 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 September 30, 2018 and December 31, 2017 and include Other-Than-Temporary-Impairment (“OTTI”) securities recognized within Accumulated Other Comprehensive Income (“AOCI”):

 

 

 

September 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

 

$

245,285

 

 

$

1,031

 

 

$

(3,879

)

 

$

248,133

 

States, Municipalities and Political Subdivisions

 

 

631,514

 

 

 

7,569

 

 

 

(7,534

)

 

 

631,479

 

Mortgage-Backed and Asset-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency Residential Mortgage-Backed Securities

 

 

344,016

 

 

 

874

 

 

 

(17,219

)

 

 

360,361

 

Residential Mortgage Obligations

 

 

124,191

 

 

 

521

 

 

 

(493

)

 

 

124,163

 

Asset-Backed Securities

 

 

540,566

 

 

 

554

 

 

 

(4,033

)

 

 

544,045

 

Commercial Mortgage-Backed Securities

 

 

186,251

 

 

 

696

 

 

 

(3,126

)

 

 

188,681

 

Subtotal

 

$

1,195,024

 

 

$

2,645

 

 

$

(24,871

)

 

$

1,217,250

 

Corporate Exposures (1)

 

 

917,650

 

 

 

4,191

 

 

 

(17,514

)

 

 

930,973

 

Total Fixed Maturities

 

$

2,989,473

 

 

$

15,436

 

 

$

(53,798

)

 

$

3,027,835

 

Short-Term Investments

 

 

7,264

 

 

 

—

 

 

 

(4

)

 

 

7,268

 

Total Available-For-Sale Investments

 

$

2,996,737

 

 

$

15,436

 

 

$

(53,802

)

 

$

3,035,103

 

 

(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 September 30, 2018:

 

 

 

As of September 30, 2018

 

 

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

 

Fair

 

 

Unrealized

 

 

Unrealized

 

 

Cost

 

amounts in thousands

 

Value

 

 

Gains

 

 

(Losses)

 

 

 

 

 

Equity Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Common Stocks

 

$

190,722

 

 

$

15,573

 

 

$

(116

)

 

$

175,265

 

  Preferred Stocks

 

 

180,958

 

 

 

1,901

 

 

 

(5,078

)

 

 

184,135

 

Total Equity Securities

 

$

371,680

 

 

$

17,474

 

 

$

(5,194

)

 

$

359,400

 

 
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, 2018 are shown in the following table:

 

 

 

September 30, 2018

 

 

 

Fair

 

 

Amortized

 

amounts in thousands

 

Value

 

 

Cost

 

Due in one year or less

 

$

179,367

 

 

$

180,246

 

Due after one year through five years

 

 

715,620

 

 

 

725,231

 

Due after five years through ten years

 

 

345,661

 

 

 

348,557

 

Due after ten years

 

 

553,801

 

 

 

556,551

 

Mortgage-Backed and Asset-Backed Securities

 

 

1,195,024

 

 

 

1,217,250

 

Total

 

$

2,989,473

 

 

$

3,027,835

 

 
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 September 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:

 

 

 

September 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

 

$

130,366

 

 

$

(2,559

)

 

$

73,266

 

 

$

(1,320

)

 

$

203,632

 

 

$

(3,879

)

States, Municipalities and Political Subdivisions

 

 

267,333

 

 

 

(4,895

)

 

 

58,882

 

 

 

(2,639

)

 

 

326,215

 

 

 

(7,534

)

Mortgage-Backed and Asset-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency Residential Mortgage-Backed

   Securities

 

 

72,698

 

 

 

(2,537

)

 

 

242,433

 

 

 

(14,682

)

 

 

315,131

 

 

 

(17,219

)

Residential Mortgage Obligations

 

 

43,108

 

 

 

(297

)

 

 

6,501

 

 

 

(196

)

 

 

49,609

 

 

 

(493

)

Asset-Backed Securities

 

 

364,764

 

 

 

(3,178

)

 

 

38,290

 

 

 

(855

)

 

 

403,054

 

 

 

(4,033

)

Commercial Mortgage-Backed Securities

 

 

56,209

 

 

 

(706

)

 

 

31,868

 

 

 

(2,420

)

 

 

88,077

 

 

 

(3,126

)

Subtotal

 

$

536,779

 

 

$

(6,718

)

 

$

319,092

 

 

$

(18,153

)

 

$

855,871

 

 

$

(24,871

)

Corporate Exposures (1)

 

 

614,332

 

 

 

(12,034

)

 

 

148,254

 

 

 

(5,480

)

 

 

762,586

 

 

 

(17,514

)

Total Fixed Maturities

 

$

1,548,810

 

 

$

(26,206

)

 

$

599,494

 

 

$

(27,592

)

 

$

2,148,304

 

 

$

(53,798

)

 

(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 September 30,

 

 

Nine Months Ended September 30,

 

amounts in thousands

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Fixed Maturities

 

$

22,733

 

 

$

19,491

 

 

$

65,504

 

 

$

57,019

 

Equity Securities

 

 

3,052

 

 

 

3,774

 

 

 

9,138

 

 

 

11,337

 

Short-Term Investments, Cash & Cash Equivalents

 

 

509

 

 

 

84

 

 

 

1,151

 

 

 

254

 

Other Invested Assets

 

 

159

 

 

 

166

 

 

 

486

 

 

 

408

 

Total Investment Income

 

$

26,453

 

 

$

23,515

 

 

$

76,279

 

 

$

69,018

 

Investment Expenses

 

 

(802

)

 

 

(917

)

 

 

(2,325

)

 

 

(2,707

)

Net Investment Income

 

$

25,651

 

 

$

22,598

 

 

$

73,954

 

 

$

66,311

 

 
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 September 30,

 

 

Nine Months Ended September 30,

 

amounts in thousands

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Fixed Maturities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains

 

$

331

 

 

$

2,589

 

 

$

3,678

 

 

$

3,401

 

Losses

 

 

(369

)

 

 

(900

)

 

 

(1,125

)

 

 

(3,114

)

Fixed Maturities, Net

 

$

(38

)

 

$

1,689

 

 

$

2,553

 

 

$

287

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-Term Investments, Cash & Cash Equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains

 

$

107

 

 

$

758

 

 

$

189

 

 

$

984

 

Losses

 

 

(71

)

 

 

(14

)

 

 

(266

)

 

 

(139

)

Short-Term, Net

 

$

36

 

 

$

744

 

 

$

(77

)

 

$

845

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Invested Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains

 

$

9

 

 

$

9

 

 

$

78

 

 

$

30

 

Losses

 

 

(50

)

 

 

(97

)

 

 

(136

)

 

 

(232

)

Other Invested Assets, Net

 

$

(41

)

 

$

(88

)

 

$

(58

)

 

$

(202

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains

 

$

347

 

 

$

2,863

 

 

$

1,102

 

 

$

7,249

 

Losses

 

 

(51

)

 

 

(18

)

 

 

(310

)

 

 

(246

)

Equity Securities, Net

 

$

296

 

 

$

2,845

 

 

$

792

 

 

$

7,003

 

Net Realized Gains on Investments Sold

 

$

253

 

 

$

5,190

 

 

$

3,210

 

 

$

7,933

 

 
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 nine months ended September 30, 2018, that relates to Equity Securities held as of September 30, 2018:

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

amounts in thousands

 

2018

 

 

2018

 

Equity Securities:

 

 

 

 

 

 

 

 

Total Net Realized and Unrealized Gains recognized during the period

 

$

2,606

 

 

$

1,249

 

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

 

 

296

 

 

 

792

 

Net Unrealized Gains recognized during the period

 

$

2,310

 

 

$

457