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Investments (Tables)

6 Months Ended

Jun. 30, 2020

Summary Of Unrealized Appreciation (Depreciation) Of Available For Sale, Fixed Maturity And Equity Security Investments

	At June 30, 2020
	Amortized		Allowances for		Unrealized		Unrealized		Market
(Dollars in thousands)	Cost		Credit Losses		Appreciation		Depreciation		Value
Fixed maturity securities
U.S. Treasury securities and obligations of U.S. government agencies and corporations	$	741,244	$	-	$	31,740	$	-	$	772,984
Obligations of U.S. states and political subdivisions		507,475		-		27,597		(3,789)		531,283
Corporate securities		2,935,665		(19,398)		135,213		(51,922)		2,999,558
Asset-backed securities		991,779		-		14,504		(21,500)		984,783
Mortgage-backed securities
Commercial		348,329		-		33,506		(788)		381,047
Agency residential		604,360		-		33,190		(349)		637,201
Non-agency residential		509		-		-		(3)		506
Foreign government securities		636,346		-		38,578		(5,034)		669,890
Foreign corporate securities		892,075		(527)		57,601		(7,024)		942,125
Total fixed maturity securities	$	7,657,782	$	(19,925)	$	371,929	$	(90,409)	$	7,919,377

	At December 31, 2019
	Amortized		Unrealized		Unrealized		Market		OTTI in AOCI
(Dollars in thousands)	Cost		Appreciation		Depreciation		Value		(a)
Fixed maturity securities
U.S. Treasury securities and obligations of U.S. government agencies and corporations	$	768,374	$	10,128	$	(987)	$	777,515	$	-
Obligations of U.S. states and political subdivisions		506,347		29,651		(87)		535,911		-
Corporate securities		2,777,097		70,898		(26,438)		2,821,557		245
Asset-backed securities		761,607		5,659		(1,309)		765,957		-
Mortgage-backed securities
Commercial		311,961		17,242		(154)		329,049		-
Agency residential		625,612		19,395		(320)		644,687		-
Non-agency residential		1,638		-		-		1,638		-
Foreign government securities		646,149		18,908		(7,050)		658,007		27
Foreign corporate securities		935,640		31,257		(9,139)		957,758		333
Total fixed maturity securities	$	7,334,425	$	203,138	$	(45,484)	$	7,492,079	$	605

^(a) Represents the amount of OTTI recognized in AOCI. Amount includes unrealized gains and losses on impaired securities relating to changes in the value of such securities subsequent to the impairment measurement date.

Summary Of Amortized Cost And Market Value Of Fixed Maturity Securities, By Contractual Maturity

	At June 30, 2020				At December 31, 2019
	Amortized		Market		Amortized		Market
(Dollars in thousands)	Cost		Value		Cost		Value
Fixed maturity securities – available for sale
Due in one year or less	$	716,996	$	714,607	$	569,506	$	563,730
Due after one year through five years		2,773,635		2,866,814		2,919,966		2,963,903
Due after five years through ten years		1,615,652		1,735,868		1,541,695		1,602,642
Due after ten years		606,522		598,551		602,440		620,473
Asset-backed securities		991,779		984,783		761,607		765,957
Mortgage-backed securities
Commercial		348,329		381,047		311,961		329,049
Agency residential		604,360		637,201		625,612		644,687
Non-agency residential		509		506		1,638		1,638
Total fixed maturity securities	$	7,657,782	$	7,919,377	$	7,334,425	$	7,492,079

Summary Of Changes In Net Unrealized Appreciation (Depreciation) For The Company's Investments

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Increase (decrease) during the period between the market value and cost of investments carried at market value, and deferred taxes thereon:
Fixed maturity securities	$	311,927	$	93,919	$	123,520	$	204,828
Fixed maturity securities, other-than-temporary impairment		-		(368)		-		(700)
Change in unrealized appreciation (depreciation), pre-tax		311,927		93,551		123,520		204,128
Deferred tax benefit (expense)		(64,834)		(19,675)		(26,065)		(42,889)
Deferred tax benefit (expense), other-than-temporary impairment		-		77		-		147
Change in unrealized appreciation (depreciation), net of deferred taxes, included in stockholder's equity	$	247,093	$	73,953	$	97,455	$	161,386

Summary Of Aggregate Market Value And Gross Unrealized Depreciation Of Fixed Maturity And Equity Securities, By Security Type

	Duration of Unrealized Loss at June 30, 2020 By Security Type
	Less than 12 months				Greater than 12 months				Total
			Gross				Gross				Gross
	Market		Unrealized		Market		Unrealized		Market		Unrealized
(Dollars in thousands)	Value		Depreciation		Value		Depreciation		Value		Depreciation
Fixed maturity securities - available for sale
Obligations of U.S. states and political subdivisions		70,056		(3,564)		3,331		(225)		73,387		(3,789)
Corporate securities		423,967		(20,116)		122,165		(31,806)		546,132		(51,922)
Asset-backed securities		437,211		(16,250)		129,870		(5,250)		567,081		(21,500)
Mortgage-backed securities
Commercial		31,984		(756)		3,303		(32)		35,287		(788)
Agency residential		23,621		(342)		1,166		(7)		24,787		(349)
Non-agency residential		161		(2)		344		(1)		505		(3)
Foreign government securities		51,453		(506)		41,802		(4,528)		93,255		(5,034)
Foreign corporate securities		90,660		(2,151)		38,483		(4,873)		129,143		(7,024)
Total fixed maturity securities	$	1,129,113	$	(43,687)	$	340,464	$	(46,722)	$	1,469,577	$	(90,409)

	Duration of Unrealized Loss at December 31, 2019 By Security Type
	Less than 12 months				Greater than 12 months				Total
			Gross				Gross				Gross
	Market		Unrealized		Market		Unrealized		Market		Unrealized
(Dollars in thousands)	Value		Depreciation		Value		Depreciation		Value		Depreciation
Fixed maturity securities - available for sale
U.S. Treasury securities and obligations of U.S. government agencies and corporations	$	8,997	$	(141)	$	203,780	$	(846)	$	212,777	$	(987)
Obligations of U.S. states and political subdivisions		4,600		(38)		4,518		(49)		9,118		(87)
Corporate securities		334,973		(5,186)		230,679		(21,252)		565,652		(26,438)
Asset-backed securities		159,695		(887)		76,351		(422)		236,046		(1,309)
Mortgage-backed securities
Commercial		13,083		(87)		16,374		(67)		29,457		(154)
Agency residential		19,019		(82)		17,147		(238)		36,166		(320)
Non-agency residential		-		-		690		-		690		-
Foreign government securities		113,256		(858)		109,953		(6,192)		223,209		(7,050)
Foreign corporate securities		105,551		(1,260)		121,710		(7,879)		227,261		(9,139)
Total fixed maturity securities	$	759,174	$	(8,539)	$	781,202	$	(36,945)	$	1,540,376	$	(45,484)

Summary Of Aggregate Market Value And Gross Unrealized Depreciation Of Fixed Maturity And Equity Securities, By Contractual Maturity

	Duration of Unrealized Loss at June 30, 2020 By Maturity
	Less than 12 months				Greater than 12 months				Total
			Gross				Gross				Gross
	Market		Unrealized		Market		Unrealized		Market		Unrealized
(Dollars in thousands)	Value		Depreciation		Value		Depreciation		Value		Depreciation
Fixed maturity securities
Due in one year or less	$	32,323	$	(473)	$	52,176	$	(8,444)	$	84,499	$	(8,917)
Due in one year through five years		340,168		(12,125)		94,125		(6,849)		434,293		(18,974)
Due in five years through ten years		154,542		(6,913)		2,842		(659)		157,384		(7,572)
Due after ten years		109,103		(6,826)		56,638		(25,480)		165,741		(32,306)
Asset-backed securities		437,211		(16,250)		129,870		(5,250)		567,081		(21,500)
Mortgage-backed securities		55,766		(1,100)		4,813		(40)		60,579		(1,140)
Total fixed maturity securities	$	1,129,113	$	(43,687)	$	340,464	$	(46,722)	$	1,469,577	$	(90,409)

	Duration of Unrealized Loss at December 31, 2019 By Maturity
	Less than 12 months				Greater than 12 months				Total
			Gross				Gross				Gross
	Market		Unrealized		Market		Unrealized		Market		Unrealized
(Dollars in thousands)	Value		Depreciation		Value		Depreciation		Value		Depreciation
Fixed maturity securities
Due in one year or less	$	34,542	$	(1,067)	$	188,755	$	(6,411)	$	223,297	$	(7,478)
Due in one year through five years		226,521		(2,554)		357,728		(11,562)		584,249		(14,116)
Due in five years through ten years		251,967		(3,292)		43,129		(6,785)		295,096		(10,077)
Due after ten years		54,347		(570)		81,028		(11,460)		135,375		(12,030)
Asset-backed securities		159,695		(887)		76,351		(422)		236,046		(1,309)
Mortgage-backed securities		32,102		(169)		34,211		(305)		66,313		(474)
Total fixed maturity securities	$	759,174	$	(8,539)	$	781,202	$	(36,945)	$	1,540,376	$	(45,484)

Summary Of Components Of Net Investment Income

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Fixed maturities	$	74,897	$	65,374	$	148,985	$	132,428
Equity securities		2,024		2,319		3,616		3,750
Short-term investments and cash		578		3,169		2,148		5,905
Other invested assets
Limited partnerships		(40,465)		15,116		(33,469)		23,171
Dividends from preferred shares of affiliate		7,758		7,758		15,516		15,516
Other		(2,962)		3,299		(16,034)		6,279
Gross investment income before adjustments		41,830		97,035		120,762		187,049
Funds held interest income (expense)		901		1,445		4,158		4,326
Interest income from Parent		1,281		-		2,563		-
Gross investment income		44,012		98,480		127,483		191,375
Investment expenses		(8,859)		(7,771)		(18,129)		(16,132)
Net investment income	$	35,153	$	90,709	$	109,354	$	175,243

(Some amounts may not reconcile due to rounding.)

Summary Of Components Of Net Realized Capital Gains (Losses)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Fixed maturity securities, market value:
Allowances for credit losses	$	(7,826)	$	-	$	(19,925)	$	-
Other-than-temporary impairments		-		(4,929)		-		(7,219)
Gains (losses) from sales		1,963		(2,313)		(18,974)		1,113
Fixed maturity securities, fair value:
Gains (losses) from sales		-		356		-		356
Gains (losses) from fair value adjustments		(272)		-		(1,395)		13
Equity securities, fair value:
Gains (losses) from sales		16,274		(1,314)		(11,328)		3,730
Gains (losses) from fair value adjustments		148,205		25,829		26,536		103,675
Other invested assets		1,292		(152)		(1,035)		244
Other invested assets, fair value:
Gains (losses) from fair value adjustments		(639,058)		125,024		(196,579)		175,651
Short-term investment gains (losses)		62		62		207		56
Total net realized capital gains (losses)	$	(479,360)	$	142,563	$	(222,493)	$	277,619

	Roll Forward of Allowance for Credit Losses
	Three Months Ended June 30, 2020								Six Months Ended June 30, 2020
			Foreign		Foreign						Foreign		Foreign
	Corporate		Government		Corporate				Corporate		Government		Corporate
	Securities		Securities		Securities		Total		Securities		Securities		Securities		Total
Beginning Balance	$	(11,468)	$	(70)	$	(561)	$	(12,099)	$	-	$	-	$	-	$	-
Credit losses on securities where credit
losses were not previously recorded		(10,355)		-		-		(10,355)		(21,823)		(70)		(561)		(22,454)
Increases in allowance on previously
impaired securities		(555)		-		(211)		(766)		(555)		-		(211)		(766)
Decreases in allowance on previously
impaired securities		1,238		-		116		1,354		1,238		-		116		1,354
Reduction in allowance due to disposals		1,742		70		129		1,941		1,742		70		129		1,941

Balance as of June 30, 2020	$	(19,398)	$	-	$	(527)	$	(19,925)	$	(19,398)	$	-	$	(527)	$	(19,925)

Summary Of Gross Gains (Losses) From Sales Of Fixed Maturity And Equity Securities

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Proceeds from sales of fixed maturity securities	$	173,479	$	403,419	$	337,723	$	2,007,308
Gross gains from sales		8,755		3,133		10,601		11,237
Gross losses from sales		(6,792)		(5,090)		(29,575)		(9,768)

Proceeds from sales of equity securities	$	8,842	$	79,735	$	213,003	$	148,973
Gross gains from sales		18,172		2,577		20,753		8,248
Gross losses from sales		(1,898)		(3,891)		(32,081)		(4,518)