Investments in debt and equity securities

6 Months Ended

Jun. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Investments in debt and equity securities

Investments in debt and equity securities. As of June 30, 2022 and December 31, 2021, the net unrealized investment gains relating to investments in equity securities held were $14.5 million and $21.1 million, respectively (refer to Note 5).

The amortized costs and fair values of investments in debt securities are as follows:

	June 30, 2022		December 31, 2021
	Amortized costs	Fair values	Amortized costs	Fair values
	($000 omitted)
Municipal	32,555	32,525	34,739	36,323
Corporate	268,626	255,437	249,757	258,102
Foreign	311,894	295,134	287,240	288,883
U.S. Treasury Bonds	10,539	10,487	6,429	6,464
	623,614	593,583	578,165	589,772

Foreign debt securities consist of Canadian government, provincial and corporate bonds, United Kingdom treasury and corporate bonds, and Mexican government bonds.

Gross unrealized gains and losses on investments in debt securities are as follows:

	June 30, 2022		December 31, 2021
	Gains	Losses	Gains	Losses
	($000 omitted)
Municipal	114	144	1,585	1
Corporate	435	13,624	9,389	1,044
Foreign	319	17,079	3,285	1,642
U.S. Treasury Bonds	33	85	60	25
	901	30,932	14,319	2,712

Debt securities as of June 30, 2022 mature, according to their contractual terms, as follows (actual maturities may differ due to call or prepayment rights):

	Amortized costs	Fair values
	($000 omitted)
In one year or less	98,843	98,429
After one year through five years	333,202	318,895
After five years through ten years	158,609	145,799
After ten years	32,960	30,460
	623,614	593,583

Gross unrealized losses on investments in debt securities and the fair values of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2022, were:

	Less than 12 months		More than 12 months		Total
	Losses	Fair values	Losses	Fair values	Losses	Fair values
	($000 omitted)
Municipal	144	11,631	—	—	144	11,631
Corporate	12,033	218,982	1,591	11,268	13,624	230,250
Foreign	14,322	249,533	2,757	37,154	17,079	286,687
U.S. Treasury Bonds	61	1,410	24	611	85	2,021
	26,560	481,556	4,372	49,033	30,932	530,589

The number of specific debt investment holdings held in an unrealized loss position as of June 30, 2022 was 303. Of these securities, 23 were in unrealized loss positions for more than 12 months. Gross unrealized investment losses at June 30, 2022 increased compared to December 31, 2021, primarily due to the market volatility influenced by higher interest rates and credit spreads during 2022. Since the Company does not intend to sell and will more likely than not maintain each investment security until its maturity or anticipated recovery in value, and no significant credit risk is deemed to exist, these investments are not considered as credit-impaired. The Company believes its investment portfolio is diversified and expects no material loss to result from the failure to perform by issuers of the debt securities it holds. Investments made by the Company are not collateralized.

Gross unrealized losses on investments in debt securities and the fair values of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2021, were:

	Less than 12 months		More than 12 months		Total
	Losses	Fair values	Losses	Fair values	Losses	Fair values
	($000 omitted)
Municipal	1	130	—	—	1	130
Corporate	588	42,231	456	12,014	1,044	54,245
Foreign	1,502	118,943	140	3,394	1,642	122,337
U.S. Treasury Bonds	8	477	17	508	25	985
	2,099	161,781	613	15,916	2,712	177,697

Net realized and unrealized gains. Realized and unrealized gains and losses are detailed as follows:

	Three Months Ended   June 30,		Six Months Ended   June 30,
	2022	2021	2022	2021
	($000 omitted)
Realized gains	1,683	7,909	3,277	8,080
Realized losses	(3,671)	—	(3,839)	(2,469)
Net unrealized investment (losses) gains recognized on equity securities still held at end of period	(9,917)	3,745	(7,258)	9,318
	(11,905)	11,654	(7,820)	14,929

Realized gains and losses during the second quarter 2022 included realized losses of $3.6 million from disposals of businesses and a $1.0 million gain from an acquisition contingent liability adjustment. Realized gains and losses during the second quarter 2021 included $7.3 million of gains on sales of buildings. Additionally, realized gains and losses for the first six months of 2022 and 2021 included a $1.0 million realized gain related to sale of a title plant copy, and a $2.5 million loss related to a disposal of an equity method investment, respectively.

Investment gains and losses recognized related to investments in equity securities are as follows:

	Three Months Ended   June 30,		Six Months Ended   June 30,
	2022	2021	2022	2021
	($000 omitted)
Net investment (losses) gains recognized on equity securities during the period	(9,366)	3,780	(6,795)	9,361
Less: Net realized gains on equity securities sold during the period	551	35	463	43
Net unrealized investment (losses) gains recognized on equity securities still held at end of period	(9,917)	3,745	(7,258)	9,318

Proceeds from sales of investments in securities are as follows: 

	Three Months Ended   June 30,		Six Months Ended   June 30,
	2022	2021	2022	2021
	($000 omitted)
Proceeds from sales of debt securities	11,002	11,634	28,282	14,571
Proceeds from sales of equity securities	117	59	487	173
Total proceeds from sales of investments in securities	11,119	11,693	28,769	14,744