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Investments (Tables)
 12 Months Ended
Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]  
Components of net investment income
The components of net investment income for the following periods were as follows:
($ in thousands)Year Ended December 31,
202020192018
Fixed maturity securities$232,917 $283,228 $353,303 
Equity securities4,665 4,923 6,017 
Limited partnership interests20,863 25,694 15,406 
Short-term and other investments11,409 (10,122)11,981 
Investment expenses(9,542)(9,484)(10,200)
Net investment income - investment portfolio260,312 294,239 376,507 
Investment income - deposit asset on reinsurance97,284 70,825 — 
Total net investment income$357,596 $365,064 $376,507 
Summary of realized investment gains (losses)
Net investment gains (losses) for the following periods were as follows:
($ in thousands)Year Ended December 31,
202020192018
Fixed maturity securities (1)
$9,392 $141,448 $(5,713)
Equity securities1,843 15,975 (10,649)
Short-term investments and other(13,524)(4,083)3,819 
Net investment gains (losses)
$(2,289)$153,340 $(12,543)
(1)    Net investment gains on fixed maturity securities include a $135.3 million realized investment gain associated with a transfer of investments to a reinsurer as consideration paid during the second quarter of 2019 in connection with the reinsurance of a $2.9 billion block of in force fixed and variable annuity business. See Notes 5 and 17 for further information.
The following table reconciles net investment gains (losses) pretax by transaction type:
($ in thousands)Year Ended December 31,
202020192018
Credit impairment write-downs$— $(1,105)$— 
Change in intent write-downs(5,283)(275)(1,530)
Net other-than-temporary impairment losses on securities
recognized in net income
(5,283)(1,380)(1,530)
Sales and other, net14,968 151,495 3,491 
Change in fair value - equity securities (1)
(167)7,308 (18,323)
Change in fair value and gains (losses) realized
on settlements - derivatives
(11,807)(4,083)3,819 
Net investment gains (losses)
$(2,289)$153,340 $(12,543)
(1)    Effective January 1, 2018, with the adoption of new accounting guidance for recognition and measurement of financial instruments, equity securities are reported at fair value with changes in fair value recognized in Net investment gains (losses) and are no longer included in impairment write-downs or change in intent write-downs.
Unrealized gains and losses on fixed maturities and equity securities Amortized cost, net unrealized investment gains (losses) and fair values of all fixed maturity securities in the portfolio were as follows:
($ in thousands)Amortized
Cost		Unrealized
Gains		Unrealized
Losses		Fair
Value
December 31, 2020
Fixed maturity securities
U.S. Government and federally
sponsored agency obligations: (1)
Mortgage-backed securities
$605,468 $79,601 $231 $684,838 
Other, including U.S. Treasury securities
395,042 39,144 1,033 433,153 
Municipal bonds
1,612,290 215,711 504 1,827,497 
Foreign government bonds
40,145 4,908 — 45,053 
Corporate bonds
1,905,207 221,634 3,942 2,122,899 
Other asset-backed securities1,230,399 24,123 22,672 1,231,850 
Totals
$5,788,551 $585,121 $28,382 $6,345,290 
December 31, 2019
Fixed maturity securities
U.S. Government and federally
sponsored agency obligations: (1)
Mortgage-backed securities
$684,543 $41,263 $1,487 $724,319 
Other, including U.S. Treasury securities
436,665 22,824 621 458,868 
Municipal bonds
1,545,787 141,996 1,580 1,686,203 
Foreign government bonds
42,801 2,569 — 45,370 
Corporate bonds
1,464,444 118,775 1,795 1,581,424 
Other asset-backed securities1,282,740 20,883 8,131 1,295,492 
Totals
$5,456,980 $348,310 $13,614 $5,791,676 
(1)    Fair value includes securities issued by Federal National Mortgage Association (FNMA) of $387.1 million and $405.1 million; Federal Home Loan Mortgage Corporation (FHLMC) of $344.3 million and $283.1 million; and Government National Mortgage Association (GNMA) of $132.3 million and $147.4 million as of December 31, 2020 and 2019, respectively.
Summary of fair value and gross unrealized losses of fixed maturity securities and equity securities in an unrealized loss position Therefore, it was determined that the unrealized losses on the fixed maturity securities presented in the table below were not other-than-temporarily impaired as of December 31, 2020.
($ in thousands)12 months or lessMore than 12 monthsTotal
Fair ValueGross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses
December 31, 2020
Fixed maturity securities
U.S. Government and federally
sponsored agency obligations:
Mortgage-backed securities$4,842 $75 $2,644 $156 $7,486 $231 
Other95,919 1,033 — — 95,919 1,033 
Municipal bonds
18,097 504 — — 18,097 504 
Foreign government bonds
— — — — — — 
Corporate bonds
126,619 3,768 10,879 174 137,498 3,942 
Other asset-backed securities316,973 17,153 409,274 5,519 726,247 22,672 
Total
$562,450 $22,533 $422,797 $5,849 $985,247 $28,382 
Number of positions with a
gross unrealized loss
308 123 431 
Fair value as a percentage of total fixed
maturities securities fair value
8.9 %6.7 %15.6 %
December 31, 2019
Fixed maturity securities
U.S. Government and federally
sponsored agency obligations:
Mortgage-backed securities$72,422 $1,282 $2,620 $205 $75,042 $1,487 
Other38,341 619 1,527 2 39,868 621 
Municipal bonds
91,195 977 9,160 603 100,355 1,580 
Foreign government bonds
— — — — — — 
Corporate bonds
58,198 886 16,622 909 74,820 1,795 
Other asset-backed securities218,710 1,970 442,791 6,161 661,501 8,131 
Total$478,866 $5,734 $472,720 $7,880 $951,586 $13,614 
Number of positions with a
gross unrealized loss
330 137 467 
Fair value as a percentage of total fixed
maturities securities fair value
8.3 %8.2 %16.5 %
Summary of cumulative credit losses
The following table summarizes the cumulative amounts related to the Company's credit loss component of OTTI losses on fixed maturity securities held as of December 31, 2020 and 2019 that the Company did not intend to sell as of those dates, and it was not more likely than not that the Company would be required to sell the securities before an anticipated recovery in value, for which the non-credit portions of OTTI losses were recognized in OCI:
($ in thousands)Year Ended December 31,
20202019
Cumulative credit loss (1)
Beginning of period
$1,529 $1,529 
New credit losses184 — 
Increases to previously recognized credit losses— — 
Losses related to securities sold or paid down during the period(184)— 
End of period
$1,529 $1,529 
(1)    The cumulative credit loss amounts exclude OTTI losses on fixed maturity securities held as of the periods indicated that the Company intended to sell or it was more likely than not that the Company would be required to sell the security before an anticipated recovery in value.
Distribution of the company's fixed maturity portfolio by estimated expected maturity
The following table presents the distribution of the Company's fixed maturity securities portfolio by estimated expected maturity. Estimated expected maturities differ from contractual maturities, reflecting assumptions regarding borrowers' utilization of the right to call or prepay obligations with or without call or prepayment penalties. For structured securities, estimated expected maturities consider broker-dealer survey prepayment assumptions and are verified for consistency with the interest rate and economic environments.
($ in thousands)December 31, 2020
Amortized
Cost		Fair
Value		Percent of
Total Fair
Value
Estimated expected maturity:
Due in 1 year or less
$255,416 $261,387 4.0 %
Due after 1 year through 5 years
1,712,114 1,793,111 28.3 %
Due after 5 years through 10 years
1,608,614 1,775,766 28.0 %
Due after 10 years through 20 years
1,358,865 1,559,501 24.6 %
Due after 20 years
853,542 955,525 15.1 %
Total
$5,788,551 $6,345,290 100.0 %
Average option-adjusted duration, in years6.4
Proceeds received from sales of fixed maturities and equity securities
Proceeds received from sales of fixed maturity and equity securities, each determined using the specific identification method, and gross gains and gross losses realized as a result of those sales for each year were as follows:
($ in thousands)Year Ended December 31,
2020
2019 (1)
2018
Fixed maturity securities
Proceeds received
$472,913 $805,887 $625,527 
Gross gains realized
20,470 150,852 10,536 
Gross losses realized
(6,072)(7,807)(14,932)
Equity securities
Proceeds received
$12,717 $29,863 $25,498 
Gross gains realized
2,197 9,193 8,592 
Gross losses realized
(1,885)(788)(917)
(1)    Gross gains realized presented above include a $135.3 million realized investment gain associated with a transfer of investments to a reinsurer as consideration paid during the second quarter of 2019 in connection with the reinsurance of a $2.9 billion block of in force fixed and variable annuity business. See Notes 5 and 17 for further information.
Reconciliation of net unrealized investment gains (losses) on fixed maturity securities and equity securities
The following table reconciles the net unrealized investment gains (losses) on fixed maturity securities, net of tax, included in AOCI, before the impact on DAC:
($ in thousands)Year Ended December 31,
202020192018
Net unrealized investment gains (losses)
on fixed maturity securities, net of tax
Beginning of period
$264,410 $111,712 $286,176 
Change in net unrealized investment gains
(losses) on fixed maturity securities
184,290 277,062 (172,350)
Reclassification of net investment (gains) losses
on securities to net income
(8,876)(124,364)12,927 
Cumulative effect of change in accounting principle (1)
— — (15,041)
End of period
$439,824 $264,410 $111,712 
(1)    Effective January 1, 2018, with the adoption of new accounting guidance for recognition and measurement of financial instruments, available for sale equity securities were reclassified to equity securities at fair value and the related net unrealized gains were reclassified from AOCI to Retained earnings.
Offsetting assets and liability
The following table presents the instruments that were subject to a master netting arrangement for the Company.
($ in thousands)Gross
Amounts
Offset in the Consolidated
Balance
Sheets		Net Amounts
of Assets/
Liabilities
Presented
in the Consolidated
Balance
Sheets		Gross Amounts Not Offset
in the Consolidated
Balance Sheets
Gross
Amounts		Financial
Instruments		Cash
Collateral
Received		Net
Amount
December 31, 2020
Asset derivatives
Free-standing derivatives$16,805 $— $16,805 $13,671 $2,620 $514 
December 31, 2019
Asset derivatives
Free-standing derivatives13,239 — 13,239 7,687 6,640 (1,088)