XML 37 R24.htm IDEA: XBRL DOCUMENT v3.19.1
Investments (Tables)
 3 Months Ended
Mar. 31, 2019
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, 2019 and December 31, 2018 and include Other-Than-Temporary-Impairment (“OTTI”) securities recognized within Accumulated Other Comprehensive Income (“AOCI”):

 

 

 

March 31, 2019

 

 

 

 

 

 

 

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

 

$

226,093

 

 

$

1,334

 

 

$

(3,050

)

 

$

227,809

 

States, Municipalities and Political Subdivisions

 

 

698,980

 

 

 

21,932

 

 

 

(586

)

 

 

677,634

 

Mortgage-Backed and Asset-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency Residential Mortgage-Backed Securities

 

 

329,582

 

 

 

1,106

 

 

 

(8,771

)

 

 

337,247

 

Residential Mortgage Obligations

 

 

154,149

 

 

 

1,538

 

 

 

(295

)

 

 

152,906

 

Asset-Backed Securities

 

 

532,027

 

 

 

1,746

 

 

 

(4,309

)

 

 

534,590

 

Commercial Mortgage-Backed Securities

 

 

199,450

 

 

 

2,089

 

 

 

(1,397

)

 

 

198,758

 

Subtotal

 

$

1,215,208

 

 

$

6,479

 

 

$

(14,772

)

 

$

1,223,501

 

Corporate Exposures (1)

 

 

1,019,527

 

 

 

12,910

 

 

 

(8,061

)

 

 

1,014,678

 

Total Fixed Maturities

 

$

3,159,808

 

 

$

42,655

 

 

$

(26,469

)

 

$

3,143,622

 

Short-Term Investments

 

 

7,287

 

 

 

—

 

 

 

(1

)

 

 

7,288

 

Total Available-For-Sale Investments

 

$

3,167,095

 

 

$

42,655

 

 

$

(26,470

)

 

$

3,150,910

 

 

(1) -

Corporate Exposures consist of investments in corporate bonds, hybrid bonds and redeemable preferred stocks.

 

 

 

December 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

 

$

239,776

 

 

$

901

 

 

$

(3,957

)

 

$

242,832

 

States, Municipalities and Political Subdivisions

 

 

646,551

 

 

 

10,734

 

 

 

(3,448

)

 

 

639,265

 

Mortgage-Backed and Asset-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency Residential Mortgage-Backed Securities

 

 

335,542

 

 

 

843

 

 

 

(13,118

)

 

 

347,817

 

Residential Mortgage Obligations

 

 

138,373

 

 

 

604

 

 

 

(530

)

 

 

138,299

 

Asset-Backed Securities

 

 

531,991

 

 

 

1,018

 

 

 

(8,040

)

 

 

539,013

 

Commercial Mortgage-Backed Securities

 

 

188,201

 

 

 

858

 

 

 

(2,816

)

 

 

190,159

 

Subtotal

 

$

1,194,107

 

 

$

3,323

 

 

$

(24,504

)

 

$

1,215,288

 

Corporate Exposures (1)

 

 

1,002,489

 

 

 

3,101

 

 

 

(28,640

)

 

 

1,028,028

 

Total Fixed Maturities

 

$

3,082,923

 

 

$

18,059

 

 

$

(60,549

)

 

$

3,125,413

 

Short-Term Investments

 

 

10,233

 

 

 

—

 

 

 

(1

)

 

 

10,234

 

Total Available-For-Sale Investments

 

$

3,093,156

 

 

$

18,059

 

 

$

(60,550

)

 

$

3,135,647

 

 

(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, 2019 and December 31, 2018:

 

 

 

As of March 31, 2019

 

 

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

 

Fair

 

 

Unrealized

 

 

Unrealized

 

 

Cost

 

amounts in thousands

 

Value

 

 

Gains

 

 

(Losses)

 

 

 

 

 

Equity Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Common Stocks

 

$

181,512

 

 

$

11,495

 

 

$

(2,644

)

 

$

172,661

 

  Preferred Stocks

 

 

176,935

 

 

 

2,082

 

 

 

(5,694

)

 

 

180,547

 

Total Equity Securities

 

$

358,447

 

 

$

13,577

 

 

$

(8,338

)

 

$

353,208

 

 

 

 

December 31, 2018

 

 

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

 

Fair

 

 

Unrealized

 

 

Unrealized

 

 

Cost

 

amounts in thousands

 

Value

 

 

Gains

 

 

(Losses)

 

 

 

 

 

Equity Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Common Stocks

 

$

166,353

 

 

$

4,738

 

 

$

(15,984

)

 

$

177,599

 

  Preferred Stocks

 

 

173,539

 

 

 

511

 

 

 

(10,791

)

 

 

183,819

 

Total Equity Securities

 

$

339,892

 

 

$

5,249

 

 

$

(26,775

)

 

$

361,418

 

 
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, 2019 are shown in the following table:

 

 

 

March 31, 2019

 

 

 

Fair

 

 

Amortized

 

amounts in thousands

 

Value

 

 

Cost

 

Due in one year or less

 

$

145,022

 

 

$

145,859

 

Due after one year through five years

 

 

805,156

 

 

 

802,331

 

Due after five years through ten years

 

 

372,917

 

 

 

362,404

 

Due after ten years

 

 

621,505

 

 

 

609,527

 

Mortgage-Backed and Asset-Backed Securities

 

 

1,215,208

 

 

 

1,223,501

 

Total

 

$

3,159,808

 

 

$

3,143,622

 
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, 2019 and December 31, 2018, 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, 2019

 

 

 

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

 

$

32,603

 

 

$

(377

)

 

$

121,784

 

 

$

(2,673

)

 

$

154,387

 

 

$

(3,050

)

States, Municipalities and Political Subdivisions

 

 

6,964

 

 

 

(4

)

 

 

76,493

 

 

 

(582

)

 

 

83,457

 

 

 

(586

)

Mortgage-Backed and Asset-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency Residential Mortgage-Backed Securities

 

 

2,924

 

 

 

(19

)

 

 

291,576

 

 

 

(8,752

)

 

 

294,500

 

 

 

(8,771

)

Residential Mortgage Obligations

 

 

35,368

 

 

 

(36

)

 

 

14,258

 

 

 

(259

)

 

 

49,626

 

 

 

(295

)

Asset-Backed Securities

 

 

266,463

 

 

 

(3,490

)

 

 

96,222

 

 

 

(819

)

 

 

362,685

 

 

 

(4,309

)

Commercial Mortgage-Backed Securities

 

 

55,185

 

 

 

(141

)

 

 

42,717

 

 

 

(1,256

)

 

 

97,902

 

 

 

(1,397

)

Subtotal

 

$

359,940

 

 

$

(3,686

)

 

$

444,773

 

 

$

(11,086

)

 

$

804,713

 

 

$

(14,772

)

Corporate Exposures (1)

 

 

35,038

 

 

 

(461

)

 

 

438,306

 

 

 

(7,600

)

 

 

473,344

 

 

 

(8,061

)

Total Fixed Maturities

 

$

434,545

 

 

$

(4,528

)

 

$

1,081,356

 

 

$

(21,941

)

 

$

1,515,901

 

 

$

(26,469

)

 

(1) -

Corporate Exposures consist of investments in corporate bonds, hybrid bonds and redeemable preferred stocks.

 

 

 

December 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

 

$

101,395

 

 

$

(2,486

)

 

$

112,195

 

 

$

(1,471

)

 

$

213,590

 

 

$

(3,957

)

States, Municipalities and Political Subdivisions

 

 

123,479

 

 

 

(1,274

)

 

 

105,405

 

 

 

(2,174

)

 

 

228,884

 

 

 

(3,448

)

Mortgage-Backed and Asset-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency Residential Mortgage-Backed Securities

 

 

34,819

 

 

 

(814

)

 

 

270,997

 

 

 

(12,304

)

 

 

305,816

 

 

 

(13,118

)

Residential Mortgage Obligations

 

 

70,965

 

 

 

(249

)

 

 

10,110

 

 

 

(281

)

 

 

81,075

 

 

 

(530

)

Asset-Backed Securities

 

 

345,437

 

 

 

(6,950

)

 

 

77,362

 

 

 

(1,090

)

 

 

422,799

 

 

 

(8,040

)

Commercial Mortgage-Backed Securities

 

 

58,877

 

 

 

(282

)

 

 

41,477

 

 

 

(2,534

)

 

 

100,354

 

 

 

(2,816

)

Subtotal

 

$

510,098

 

 

$

(8,295

)

 

$

399,946

 

 

$

(16,209

)

 

$

910,044

 

 

$

(24,504

)

Corporate Exposures (1)

 

 

481,057

 

 

 

(15,456

)

 

 

300,113

 

 

 

(13,184

)

 

 

781,170

 

 

 

(28,640

)

Total Fixed Maturities

 

$

1,216,029

 

 

$

(27,511

)

 

$

917,659

 

 

$

(33,038

)

 

$

2,133,688

 

 

$

(60,549

)

 

 

(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

 

2019

 

 

2018

 

Fixed Maturities

 

$

25,015

 

 

$

21,052

 

Equity Securities

 

 

3,155

 

 

 

2,925

 

Short-Term Investments, Cash & Cash Equivalents

 

 

570

 

 

 

227

 

Other Invested Assets

 

 

228

 

 

 

186

 

Total Investment Income

 

$

28,968

 

 

$

24,390

 

Investment Expenses

 

 

(749

)

 

 

(688

)

Net Investment Income

 

$

28,219

 

 

$

23,702

 
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

 

2019

 

 

2018

 

Fixed Maturities:

 

 

 

 

 

 

 

 

Gains

 

$

784

 

 

$

1,806

 

Losses

 

 

(265

)

 

 

(275

)

Fixed Maturities, Net

 

$

519

 

 

$

1,531

 

 

 

 

 

 

 

 

 

 

Short-Term Investments, Cash & Cash Equivalents:

 

 

 

 

 

 

 

 

Gains

 

$

—

 

 

$

18

 

Losses

 

 

(17

)

 

 

(174

)

Short-Term, Net

 

$

(17

)

 

$

(156

)

 

 

 

 

 

 

 

 

 

Other Invested Assets:

 

 

 

 

 

 

 

 

Gains

 

$

134

 

 

$

50

 

Losses

 

 

—

 

 

 

(41

)

Other Invested Assets, Net

 

$

134

 

 

$

9

 

 

 

 

 

 

 

 

 

 

Equity Securities:

 

 

 

 

 

 

 

 

Gains

 

$

3

 

 

$

—

 

Losses

 

 

(246

)

 

 

(215

)

Equity Securities, Net

 

$

(243

)

 

$

(215

)

Net Realized Gains on Investments Sold

 

$

393

 

 

$

1,169

 
Portion of Net Unrealized Gains (Losses) Recognized to Equity Securities

The following table presents the portion of Net Unrealized Gains (Losses) that relates to Equity Securities recognized during the three months ended March 31, 2018 and 2019:

 

 

 

Three Months Ended March 31,

 

amounts in thousands

 

2019

 

 

2018

 

Equity Securities:

 

 

 

 

 

 

 

 

Total Net Realized and Unrealized Gains (Losses) recognized

 

$

26,526

 

 

$

(3,396

)

Less: Net Realized Losses on Investments Sold

 

 

(243

)

 

 

(215

)

Net Unrealized Gains (Losses) recognized

 

$

26,769

 

 

$

(3,181

)