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Investments (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Investments, Debt and Equity Securities [Abstract]

Available-For-Sale Investments

The following tables summarize the Company's available-for-sale investments. Commercial and residential mortgage-backed securities include securities issued by U.S. government-sponsored enterprises and U.S. government agencies. The net unrealized holding gains in the tables below are presented before taxes and any reserve deficiency adjustments for life and annuity benefit reserves. See note 11.

			June 30, 2020
(dollars in thousands)			Amortized Cost						Gross Unrealized Holding Gains						Gross Unrealized Holding Losses						Allowance for Credit      Losses (1)						Estimated Fair Value
Fixed maturity securities:
U.S. Treasury securities			$	343,467					$	11,447					$	(19)					$	—					$	354,895
U.S. government-sponsored enterprises			323,864						50,944						—						—						374,808
Obligations of states, municipalities and political subdivisions			3,852,301						354,186						(1,032)						—						4,205,455
Foreign governments			1,352,962						172,377						(9,943)						—						1,515,396
Commercial mortgage-backed securities			1,730,795						148,218						(35)						—						1,878,978
Residential mortgage-backed securities			836,066						71,299						(35)						—						907,330
Asset-backed securities			8,122						159						—						—						8,281
Corporate bonds			755,940						62,551						(2,960)						(202)						815,329
Total fixed maturity securities			9,203,517						871,181						(14,024)						(202)						10,060,472
Short-term investments			931,555						489						(2,772)						—						929,272
Investments, available-for-sale			$	10,135,072					$	871,670					$	(16,796)					$	(202)					$	10,989,744

⁽¹⁾Effective January 1, 2020, the Company adopted ASC 326 and as a result any impairment losses on the Company's available-for-sale investments are recorded as an allowance, subject to reversal. Prior periods have not been restated to conform with the current year presentation. See note 1.

			December 31, 2019
(dollars in thousands)			Amortized Cost						Gross Unrealized Holding Gains						Gross Unrealized Holding Losses						Estimated Fair Value
Fixed maturity securities:
U.S. Treasury securities			$	282,305					$	2,883					$	(402)					$	284,786
U.S. government-sponsored enterprises			318,831						23,949						(200)						342,580
Obligations of states, municipalities and political subdivisions			3,954,779						235,915						(812)						4,189,882
Foreign governments			1,415,639						135,763						(9,398)						1,542,004
Commercial mortgage-backed securities			1,761,777						57,450						(1,382)						1,817,845
Residential mortgage-backed securities			855,641						32,949						(517)						888,073
Asset-backed securities			11,042						28						(22)						11,048
Corporate bonds			848,826						47,551						(1,686)						894,691
Total fixed maturity securities			9,448,840						536,488						(14,419)						9,970,909
Short-term investments			1,194,953						1,355						(60)						1,196,248
Investments, available-for-sale			$	10,643,793					$	537,843					$	(14,479)					$	11,167,157

Summary Of Gross Unrealized Investment Losses By Length Of Time That Securities Have Continuously Been In An Unrealized Loss Position

The following tables summarize gross unrealized investment losses on available-for-sale investments by the length of time that securities have continuously been in an unrealized loss position.

			June 30, 2020
			Less than 12 months																		12 months or longer																		Total
(dollars in thousands)			Estimated Fair Value						Gross Unrealized Holding Losses						Estimated Fair Value						Gross Unrealized Holding Losses						Estimated Fair Value						Gross Unrealized Holding Losses
Fixed maturity securities:
U.S. Treasury securities			$	7,675					$	(19)					$	—					$	—					$	7,675					$	(19)
Obligations of states, municipalities and political subdivisions			46,271						(1,009)						3,025						(23)						49,296						(1,032)
Foreign governments			173,200						(4,295)						160,104						(5,648)						333,304						(9,943)
Commercial mortgage-backed securities			2,033						(14)						7,425						(21)						9,458						(35)
Residential mortgage-backed securities			3,756						(35)						—						—						3,756						(35)
Asset-backed securities			359						—						—						—						359						—
Corporate bonds			85,245						(1,671)						17,362						(1,289)						102,607						(2,960)
Total fixed maturity securities			318,539						(7,043)						187,916						(6,981)						506,455						(14,024)
Short-term investments			566,873						(2,772)						—						—						566,873						(2,772)
Total			$	885,412					$	(9,815)					$	187,916					$	(6,981)					$	1,073,328					$	(16,796)

			December 31, 2019
			Less than 12 months																		12 months or longer																		Total
(dollars in thousands)			Estimated Fair Value						Gross Unrealized Holding  Losses						Estimated Fair Value						Gross Unrealized Holding  Losses						Estimated Fair Value						Gross Unrealized Holding  Losses
Fixed maturity securities:
U.S. Treasury securities			$	36,862					$	(361)					$	46,518					$	(41)					$	83,380					$	(402)
U.S. government-sponsored enterprises			24,148						(197)						2,868						(3)						27,016						(200)
Obligations of states, municipalities and political subdivisions			127,836						(702)						6,830						(110)						134,666						(812)
Foreign governments			162,907						(3,393)						159,888						(6,005)						322,795						(9,398)
Commercial mortgage-backed securities			202,530						(1,126)						33,853						(256)						236,383						(1,382)
Residential mortgage-backed securities			11,706						(66)						58,162						(451)						69,868						(517)
Asset-backed securities			—						—						3,632						(22)						3,632						(22)
Corporate bonds			41,847						(1,287)						40,274						(399)						82,121						(1,686)
Total fixed maturity securities			607,836						(7,132)						352,025						(7,287)						959,861						(14,419)
Short-term investments			3,316						(60)						—						—						3,316						(60)
Total			$	611,152					$	(7,192)					$	352,025					$	(7,287)					$	963,177					$	(14,479)

Schedule Of Amortized Cost And Estimated Fair Value Of Fixed Maturity Securities By Contractual Maturity Date

The amortized cost and estimated fair value of fixed maturity securities at June 30, 2020 are shown below by contractual maturity.

(dollars in thousands)			Amortized Cost						Estimated Fair Value
Due in one year or less			$	338,005					$	336,972
Due after one year through five years			1,464,733						1,537,573
Due after five years through ten years			2,122,737						2,306,166
Due after ten years			2,703,059						3,085,172
			6,628,534						7,265,883
Commercial mortgage-backed securities			1,730,795						1,878,978
Residential mortgage-backed securities			836,066						907,330
Asset-backed securities			8,122						8,281
Total fixed maturity securities			$	9,203,517					$	10,060,472

Components Of Net Investment Income

The following table presents the components of net investment income.

			Quarter Ended June 30,																		Six Months Ended June 30,
(dollars in thousands)			2020						2019						2020						2019
Interest:
Municipal bonds (tax-exempt)			$	16,157					$	17,885					$	32,758					$	36,711
Municipal bonds (taxable)			16,834						18,613						33,729						37,192
Other taxable bonds			39,616						41,242						79,588						82,023
Short-term investments, including overnight deposits			2,379						13,753						12,622						23,965
Dividends on equity securities			18,020						22,207						46,634						47,993
Income (loss) from equity method investments			5,647						1,174						(14,332)						3,070
Other			46						873						803						3,174
			98,699						115,747						191,802						234,128
Investment expenses			(3,084)						(3,916)						(7,944)						(8,115)
Net investment income			$	95,615					$	111,831					$	183,858					$	226,013

Summary Of Net Investment Gains And The Change In Net Unrealized Gains (Losses) On Available-For-Sale Investments

The following table presents the components of net investment gains (losses) and the change in net unrealized gains included in other comprehensive income.

			Quarter Ended June 30,																		Six Months Ended June 30,
(dollars in thousands)			2020						2019						2020						2019
Fixed maturity securities:
Realized gains			$	5,348					$	1,661					$	6,733					$	1,804
Realized losses			(5,126)						(630)						(6,271)						(911)
Change in allowance for expected credit losses			1,537						—						(202)						—
Short-term investments:
Realized gains			1,002						499						1,100						1,334
Realized losses			(184)						(2,049)						(356)						(2,073)
Cost-method investments:
Realized gains			—						—						11,167						—
Other investment gains (losses):			(5,389)						452						(5,245)						460
Net realized investment gains (losses)			(2,812)						(67)						6,926						614
Equity securities:
Change in fair value of securities sold during the period			82,523						202						43,458						26,616
Change in fair value of securities held during the period			831,532						425,518						(820,582)						1,010,614
Total change in fair value			914,055						425,720						(777,124)						1,037,230
Net investment gains (losses)			$	911,243					$	425,653					$	(770,198)					$	1,037,844
Change in net unrealized gains on available-for-sale investments included in other comprehensive income:
Fixed maturity securities			$	236,521					$	197,248					$	335,088					$	414,542
Short-term investments			3,128						2,506						(3,578)						3,861
Reserve deficiency adjustment for life and annuity benefit reserves (see note 11)			(22,740)						(35,938)						(35,612)						(61,751)
Net increase			$	216,909					$	163,816					$	295,898					$	356,652

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