Net Investment (Losses) Gains

6 Months Ended

Jun. 30, 2024

Realized and Unrealized Investment Gains (Losses) [Abstract]

Net investment (losses) gains were as follows:


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(In thousands)	2024		2023		2024		2023
Net investment (losses) gains:
Fixed maturity securities:
Gains	$	3,092	$	115	$	6,649	$	1,058
Losses	(5,362)		(3,640)		(7,685)		(21,770)
Equity securities (1):
Net realized gains on investment sales (2)	61,521		111,072		101,798		112,132
Change in unrealized (losses) gains	(66,717)		21,260		(40,905)		64,664
Investment funds	217		(98)		1,210		(88)
Real estate (3)	(1,958)		(55,449)		(4,174)		(44,710)
Loans receivable	—		—		—		—
Other (4)	(51,099)		(4,613)		(105,696)		(20,028)
Net realized and unrealized (losses) gains on investments in earnings before allowance for expected credit losses	(60,306)		68,647		(48,803)		91,258
Change in allowance for expected credit losses on investments:
Fixed maturity securities	998		(7,052)		14,879		(6,835)
Loans receivable	796		(2,941)		1,191		(2,759)
Change in allowance for expected credit losses on investments	1,794		(9,993)		16,070		(9,594)
Net investment (losses) gains	(58,512)		58,654		(32,733)		81,664
Income tax benefit	12,401		(12,587)		5,769		(17,437)
After-tax net investment (losses) gains	$	(46,111)	$	46,067	$	(26,964)	$	64,227


Change in unrealized investment (losses) gains on available for sale securities:
Fixed maturity securities without allowance for expected credit losses	$	(11,394)	$	(148,021)	$	(99,988)	$	79,094
Fixed maturity securities with allowance for expected credit losses	(7,683)		3,694		(6,696)		7,150

Investment funds	(1,338)		462		(3,041)		2,398
Other	(225)		(178)		(212)		(664)
Total change in unrealized investment (losses) gains	(20,640)		(144,043)		(109,937)		87,978
Income tax benefit (expense)	7,302		30,759		26,477		(20,463)
Noncontrolling interests	1		—		1		(1)
After-tax change in unrealized investment (losses) gains of available for sale securities	$	(13,337)	$	(113,284)	$	(83,459)	$	67,514

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(1) The net realized gains or losses on investment sales represent the total gains or losses from the purchase dates of the equity securities. The change in unrealized (losses) gains consists of two components: (i) the reversal of the gain or loss recognized in previous periods on equity securities sold and (ii) the change in unrealized gain or loss resulting from mark-to-market adjustments on equity securities still held.

(2) In June 2023, the Company completed a sale of the property and casualty insurance services division of Breckenridge IS, Inc. and recognized a pre-tax net realized gain on investment of $88 million on the sale (proceeds from the sale is presented on the business disposition line within the Consolidated Statements of Cash Flows).

(3) During the second quarter of 2023, the Company recognized an impairment loss of $51 million on a real estate investment.

(4) Primarily relates to realized foreign currency losses upon the disposition of fixed maturity securities.