Investments (Tables)
|
9 Months Ended |
Sep. 30, 2018 |
|---|
| Investments Available For Sale Debt Securities [Abstract] |
|
| Cost or Amortized Cost and Fair Value of Debt and Short-term Investment Securities Available for Sale |
The following table provides the amortized cost and fair value of debt and short-term investment securities available for sale as of the dates presented (in thousands):
|
|
September 30, 2018 |
|
|
|
|
|
|
|
Gross |
|
|
Gross |
|
|
|
|
|
|
|
Amortized |
|
|
Unrealized |
|
|
Unrealized |
|
|
|
|
|
|
|
Cost |
|
|
Gains |
|
|
Losses |
|
|
Fair Value |
|
|
Debt Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government obligations and agencies |
$ |
67,442 |
|
|
$ |
15 |
|
|
$ |
(1,459 |
) |
|
$ |
65,998 |
|
|
Corporate bonds |
|
415,600 |
|
|
|
532 |
|
|
|
(6,165 |
) |
|
|
409,967 |
|
|
Mortgage-backed and asset-backed securities |
|
275,128 |
|
|
|
23 |
|
|
|
(5,923 |
) |
|
|
269,228 |
|
|
Municipal bonds |
|
3,401 |
|
|
|
— |
|
|
|
(123 |
) |
|
|
3,278 |
|
|
Redeemable preferred stock |
|
11,922 |
|
|
|
206 |
|
|
|
(191 |
) |
|
|
11,937 |
|
|
Total |
$ |
773,493 |
|
|
$ |
776 |
|
|
$ |
(13,861 |
) |
|
$ |
760,408 |
|
|
|
December 31, 2017 |
|
|
|
|
|
|
|
Gross |
|
|
Gross |
|
|
|
|
|
|
|
Amortized |
|
|
Unrealized |
|
|
Unrealized |
|
|
|
|
|
|
|
Cost |
|
|
Gains |
|
|
Losses |
|
|
Fair Value |
|
|
Debt Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government obligations and agencies |
$ |
60,481 |
|
|
$ |
— |
|
|
$ |
(877 |
) |
|
$ |
59,604 |
|
|
Corporate bonds |
|
228,336 |
|
|
|
476 |
|
|
|
(1,308 |
) |
|
|
227,504 |
|
|
Mortgage-backed and asset-backed securities |
|
221,956 |
|
|
|
19 |
|
|
|
(2,523 |
) |
|
|
219,452 |
|
|
Municipal bonds |
|
120,883 |
|
|
|
599 |
|
|
|
(1,187 |
) |
|
|
120,295 |
|
|
Redeemable preferred stock |
|
12,059 |
|
|
|
485 |
|
|
|
(65 |
) |
|
|
12,479 |
|
|
Short-term investments |
|
10,000 |
|
|
|
— |
|
|
|
— |
|
|
|
10,000 |
|
|
Total |
$ |
653,715 |
|
|
$ |
1,579 |
|
|
$ |
(5,960 |
) |
|
$ |
649,334 |
|
|
| Schedule of Credit Quality of Available-for-sale Debt Securities With Contractual Maturities |
The following table provides the credit quality of available-for-sale debt securities with contractual maturities as of the dates presented (dollars in thousands):
|
|
|
September 30, 2018 |
|
|
December 31, 2017 (1) |
|
|
|
|
|
|
|
|
% of Total |
|
|
|
|
|
|
% of Total |
|
|
Average Credit Ratings |
|
Fair Value |
|
|
Fair Value |
|
|
Fair Value |
|
|
Fair Value |
|
|
AAA |
|
$ |
344,801 |
|
|
|
45.3 |
% |
|
$ |
317,313 |
|
|
|
48.9 |
% |
|
AA |
|
|
92,411 |
|
|
|
12.2 |
% |
|
|
129,573 |
|
|
|
20.0 |
% |
|
A |
|
|
216,074 |
|
|
|
28.4 |
% |
|
|
146,749 |
|
|
|
22.6 |
% |
|
BBB |
|
|
103,427 |
|
|
|
13.6 |
% |
|
|
51,020 |
|
|
|
7.8 |
% |
|
BB+ and Below |
|
|
117 |
|
|
|
0.0 |
% |
|
|
1,569 |
|
|
|
0.2 |
% |
|
No Rating Available |
|
|
3,578 |
|
|
|
0.5 |
% |
|
|
3,110 |
|
|
|
0.5 |
% |
|
Total |
|
$ |
760,408 |
|
|
|
100.0 |
% |
|
$ |
649,334 |
|
|
|
100.0 |
% |
|
|
(1) |
The credit ratings in the table above have been reclassified from the prior periods’ consolidated financial statements to conform to the current periods’ presentation. |
|
| Schedule of Amortized Cost and Fair Value on Mortgage-Backed and Asset-Backed Securities |
The following table summarizes the amortized cost and fair value of mortgage-backed and asset-backed securities as of the dates presented (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2018 |
|
|
December 31, 2017 |
|
|
|
|
Amortized |
|
|
|
|
|
|
Amortized |
|
|
|
|
|
|
|
|
Cost |
|
|
Fair Value |
|
|
Cost |
|
|
Fair Value |
|
|
Mortgage-backed Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency |
|
$ |
152,068 |
|
|
$ |
148,472 |
|
|
$ |
118,014 |
|
|
$ |
116,014 |
|
|
Non-agency |
|
|
44,509 |
|
|
|
44,005 |
|
|
|
17,676 |
|
|
|
17,488 |
|
|
Asset-backed Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Auto loan receivables |
|
|
28,983 |
|
|
|
28,649 |
|
|
|
35,105 |
|
|
|
34,962 |
|
|
Credit card receivables |
|
|
23,836 |
|
|
|
23,665 |
|
|
|
38,844 |
|
|
|
38,719 |
|
|
Other receivables |
|
|
25,732 |
|
|
|
24,437 |
|
|
|
12,317 |
|
|
|
12,269 |
|
|
Total |
|
$ |
275,128 |
|
|
$ |
269,228 |
|
|
$ |
221,956 |
|
|
$ |
219,452 |
|
|
| Summarized Fair Value and Gross Unrealized Losses on Available-for-sale Debt Securities |
The following table summarizes the fair value and gross unrealized losses on available-for-sale debt securities, aggregated by major investment category and length of time that individual securities have been in a continuous unrealized loss position as of the dates presented (dollars in thousands):
|
|
September 30, 2018 |
|
|
|
Less Than 12 Months |
|
|
12 Months or Longer |
|
|
|
Number of |
|
|
|
|
|
|
Unrealized |
|
|
Number of |
|
|
|
|
|
|
Unrealized |
|
|
|
Issues |
|
|
Fair Value |
|
|
Losses |
|
|
Issues |
|
|
Fair Value |
|
|
Losses |
|
|
Debt Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government obligations and agencies |
|
5 |
|
|
$ |
15,734 |
|
|
$ |
(313 |
) |
|
|
11 |
|
|
$ |
40,389 |
|
|
$ |
(1,146 |
) |
|
Corporate bonds |
|
413 |
|
|
|
316,750 |
|
|
|
(4,599 |
) |
|
|
66 |
|
|
|
51,245 |
|
|
|
(1,566 |
) |
|
Mortgage-backed and asset-backed securities |
|
86 |
|
|
|
135,530 |
|
|
|
(1,643 |
) |
|
|
98 |
|
|
|
109,884 |
|
|
|
(4,280 |
) |
|
Municipal bonds |
|
6 |
|
|
|
3,278 |
|
|
|
(123 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Redeemable preferred stock |
|
98 |
|
|
|
4,739 |
|
|
|
(154 |
) |
|
|
1 |
|
|
|
408 |
|
|
|
(37 |
) |
|
Total |
|
608 |
|
|
$ |
476,031 |
|
|
$ |
(6,832 |
) |
|
|
176 |
|
|
$ |
201,926 |
|
|
$ |
(7,029 |
) |
|
|
December 31, 2017 |
|
|
|
Less Than 12 Months |
|
|
12 Months or Longer |
|
|
|
Number of |
|
|
|
|
|
|
Unrealized |
|
|
Number of |
|
|
|
|
|
|
Unrealized |
|
|
|
Issues |
|
|
Fair Value |
|
|
Losses |
|
|
Issues |
|
|
Fair Value |
|
|
Losses |
|
|
Debt Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government obligations and agencies |
|
7 |
|
|
$ |
35,464 |
|
|
$ |
(301 |
) |
|
|
9 |
|
|
$ |
24,140 |
|
|
$ |
(576 |
) |
|
Corporate bonds |
|
159 |
|
|
|
142,208 |
|
|
|
(792 |
) |
|
|
39 |
|
|
|
29,796 |
|
|
|
(516 |
) |
|
Mortgage-backed and asset-backed securities |
|
83 |
|
|
|
137,481 |
|
|
|
(955 |
) |
|
|
37 |
|
|
|
70,218 |
|
|
|
(1,568 |
) |
|
Municipal bonds |
|
36 |
|
|
|
28,265 |
|
|
|
(246 |
) |
|
|
30 |
|
|
|
48,370 |
|
|
|
(941 |
) |
|
Redeemable preferred stock |
|
21 |
|
|
|
2,464 |
|
|
|
(65 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Total |
|
306 |
|
|
$ |
345,882 |
|
|
$ |
(2,359 |
) |
|
|
115 |
|
|
$ |
172,524 |
|
|
$ |
(3,601 |
) |
|
| Amortized Cost and Fair Value of Investments With Contractual Maturities |
The following table presents the amortized cost and fair value of investments with contractual maturities as of the date presented (in thousands):
|
|
September 30, 2018 |
|
|
|
Amortized Cost |
|
|
Fair Value |
|
|
Due in one year or less |
$ |
65,340 |
|
|
$ |
65,054 |
|
|
Due after one year through five years |
|
246,639 |
|
|
|
242,313 |
|
|
Due after five years through ten years |
|
158,771 |
|
|
|
156,385 |
|
|
Due after ten years |
|
15,693 |
|
|
|
15,491 |
|
|
Mortgage-backed and asset-backed securities |
|
275,128 |
|
|
|
269,228 |
|
|
Perpetual maturity securities |
|
11,922 |
|
|
|
11,937 |
|
|
Total |
$ |
773,493 |
|
|
$ |
760,408 |
|
|
| Summary of Available-for-sale Debt Securities and Equity Securities |
The following table provides certain information related to available-for-sale debt securities and equity securities during the periods presented (in thousands):
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
|
September 30, |
|
|
September 30, |
|
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
Proceeds from sales and maturities (fair value): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale debt securities |
|
$ |
32,287 |
|
|
$ |
49,762 |
|
|
$ |
225,989 |
|
|
$ |
100,413 |
|
|
Equity securities |
|
$ |
4,158 |
|
|
$ |
18,056 |
|
|
$ |
8,285 |
|
|
$ |
75,027 |
|
|
Gross realized gains on sale of securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale debt securities |
|
$ |
1 |
|
|
$ |
302 |
|
|
$ |
318 |
|
|
$ |
330 |
|
|
Equity securities |
|
$ |
413 |
|
|
$ |
547 |
|
|
$ |
714 |
|
|
$ |
2,332 |
|
|
Gross realized losses on sale of securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale debt securities |
|
$ |
(11 |
) |
|
$ |
(19 |
) |
|
$ |
(3,125 |
) |
|
$ |
(59 |
) |
|
Equity securities |
|
$ |
— |
|
|
$ |
(27 |
) |
|
$ |
— |
|
|
$ |
(153 |
) |
|
| Investment Income (Expense) Comprised Primarily of Interest and Dividends |
The following table presents the components of net investment income, comprised primarily of interest and dividends, for the periods presented (in thousands):
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
Available-for-sale debt securities |
$ |
4,595 |
|
|
$ |
2,977 |
|
|
$ |
12,390 |
|
|
$ |
8,893 |
|
|
Equity securities |
|
722 |
|
|
|
348 |
|
|
|
2,016 |
|
|
|
1,068 |
|
|
Available-for-sale short-term investments |
|
— |
|
|
|
— |
|
|
|
145 |
|
|
|
22 |
|
|
Other (1) |
|
2,106 |
|
|
|
319 |
|
|
|
4,765 |
|
|
|
651 |
|
|
Total investment income |
|
7,423 |
|
|
|
3,644 |
|
|
|
19,316 |
|
|
|
10,634 |
|
|
Less: Investment expenses (2) |
|
(781 |
) |
|
|
(559 |
) |
|
|
(2,103 |
) |
|
|
(1,622 |
) |
|
Net investment (expense) income |
$ |
6,642 |
|
|
$ |
3,085 |
|
|
$ |
17,213 |
|
|
$ |
9,012 |
|
|
(1) |
Includes interest earned on cash and cash equivalents and restricted cash and cash equivalents. Also includes investment income earned on real estate investments. |
|
(2) |
Includes custodial fees, investment accounting, advisory fees and expenses associated with real estate investments. |
|
| Summary of Details on Realized and Unrealized Gains and Losses Related to Equity Securities |
The following table provides details on the realized and unrealized gains and losses related to equity securities for the periods presented (in thousands):
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
Net gains and (losses) recognized during the period
on equity securities |
$ |
(2,060 |
) |
|
$ |
520 |
|
|
$ |
(8,389 |
) |
|
$ |
2,179 |
|
|
Less: Net (gains) and losses recognized during the period on
equity securities sold during the period |
|
(413 |
) |
|
|
(520 |
) |
|
|
(714 |
) |
|
|
(2,179 |
) |
|
Unrealized gains and (losses) recognized during the reporting
period on equity securities still held at the reporting period |
$ |
(2,473 |
) |
|
$ |
— |
|
|
$ |
(9,103 |
) |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Schedule of Real Estate Investment |
Investment real estate consisted of the following as of the dates presented (in thousands):
|
|
September 30, 2018 |
|
|
December 31, 2017 |
|
|
Income Producing: |
|
|
|
|
|
|
|
|
Investment real estate (1) |
$ |
14,619 |
|
|
$ |
6,918 |
|
|
Less: Accumulated depreciation |
|
(767 |
) |
|
|
(460 |
) |
|
|
|
13,852 |
|
|
|
6,458 |
|
|
Non-Income Producing: |
|
|
|
|
|
|
|
|
Properties under development (1) |
|
9,868 |
|
|
|
12,016 |
|
|
Investment real estate, net |
$ |
23,720 |
|
|
$ |
18,474 |
|
(1) During the nine months ended September 30, 2018, the Company transferred $7.4 million from properties under development to investment real estate.
|
| Schedule of Depreciation Expense Related to Investment Real Estate |
Depreciation expense related to investment real estate for the periods presented (in thousands):
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
Depreciation expense on investment real estate |
$ |
103 |
|
|
$ |
45 |
|
|
$ |
307 |
|
|
$ |
134 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|