Net realized and unrealized gains

3 Months Ended

Mar. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Net realized and unrealized gains

Investments in debt and equity securities. As of March 31, 2023 and December 31, 2022, the net unrealized investment gains relating to investments in equity securities held were $13.4 million and $19.2 million, respectively (refer to Note 5).

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

	March 31, 2023		December 31, 2022
	Amortized costs	Fair values	Amortized costs	Fair values
	($000 omitted)
Municipal	26,619	26,487	30,104	29,835
Corporate	259,084	244,479	272,362	254,316
Foreign	318,408	306,885	315,184	299,137
U.S. Treasury Bonds	30,505	30,463	29,078	28,646
	634,616	608,314	646,728	611,934

Foreign debt securities primarily 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:

	March 31, 2023		December 31, 2022
	Gains	Losses	Gains	Losses
	($000 omitted)
Municipal	29	161	3	272
Corporate	815	15,420	489	18,535
Foreign	1,034	12,557	165	16,212
U.S. Treasury Bonds	129	171	21	453
	2,007	28,309	678	35,472

Debt securities as of March 31, 2023 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	63,817	63,214
After one year through five years	380,826	363,161
After five years through ten years	174,554	168,393
After ten years	15,419	13,546
	634,616	608,314

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 March 31, 2023, were:

	Less than 12 months		More than 12 months		Total
	Losses	Fair values	Losses	Fair values	Losses	Fair values
	($000 omitted)
Municipal	89	16,879	72	2,850	161	19,729
Corporate	3,944	111,914	11,476	115,713	15,420	227,627
Foreign	539	33,353	12,018	220,333	12,557	253,686
U.S. Treasury Bonds	96	14,094	75	1,284	171	15,378
	4,668	176,240	23,641	340,180	28,309	516,420

The number of specific debt investment holdings held in an unrealized loss position as of March 31, 2023 was 321. Of these securities, 181 were in unrealized loss positions for more than 12 months. Gross unrealized investment losses at March 31, 2023 decreased compared to December 31, 2022, primarily due to interest rates declines during the first quarter 2023. Since the Company does not intend to sell and, more likely than not, will 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, 2022, were:

	Less than 12 months		More than 12 months		Total
	Losses	Fair values	Losses	Fair values	Losses	Fair values
	($000 omitted)
Municipal	262	27,491	10	67	272	27,558
Corporate	12,935	193,239	5,600	44,342	18,535	237,581
Foreign	7,608	186,221	8,604	101,294	16,212	287,515
U.S. Treasury Bonds	413	25,102	40	445	453	25,547
	21,218	432,053	14,254	146,148	35,472	578,201

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

		Three Months Ended   March 31,
		2023	2022
	($000 omitted)
Realized gains		61	1,594
Realized losses		(747)	(168)
Net unrealized investment (losses) gains recognized on equity securities still held at end of period		(1,092)	2,659
		(1,778)	4,085

Realized losses during the first quarter 2023 were primarily related to sales of securities investments. Realized gains during the first quarter 2022 included a $1.0 million gain related to a sale of a title plant copy.

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

		Three Months Ended   March 31,
		2023	2022
	($000 omitted)
Net investment (losses) gains recognized on equity securities during the period		(1,756)	2,785
Less: Net realized (losses) gains on equity securities sold during the period		(664)	126
Net unrealized investment (losses) gains recognized on equity securities still held at end of period		(1,092)	2,659

Proceeds from sales of investments in securities are as follows: 

		Three Months Ended   March 31,
		2023	2022
	($000 omitted)
Proceeds from sales of debt securities		7,446	17,280
Proceeds from sales of equity securities		19,326	370
Total proceeds from sales of investments in securities		26,772	17,650