XML 37 R24.htm IDEA: XBRL DOCUMENT v3.21.2
Investments (Tables)
 9 Months Ended
Sep. 30, 2021
Investments [Abstract]  
Summary Of Unrealized Appreciation (Depreciation) Of Available For Sale, Fixed Maturity And Equity Security Investments

 

 

At September 30, 2021

 

 

Amortized

 

Allowance 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

$

1,344,813

 

$

-

 

$

28,332

 

$

(10,323)

 

$

1,362,822

 

Obligations of U.S. states and political subdivisions

 

578,289

 

 

(151)

 

 

31,295

 

 

(1,058)

 

 

608,375

 

Corporate securities

 

7,315,144

 

 

(22,890)

 

 

254,723

 

 

(52,736)

 

 

7,494,241

 

Asset-backed securities

 

3,284,025

 

 

(7,679)

 

 

32,405

 

 

(3,499)

 

 

3,305,252

 

Mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

1,042,504

 

 

-

 

 

49,729

 

 

(4,363)

 

 

1,087,870

 

Agency residential

 

2,208,540

 

 

-

 

 

45,876

 

 

(8,415)

 

 

2,246,001

 

Non-agency residential

 

7,316

 

 

-

 

 

11

 

 

(21)

 

 

7,306

 

Foreign government securities

 

1,428,105

 

 

-

 

 

54,778

 

 

(27,738)

 

 

1,455,145

 

Foreign corporate securities

 

3,974,020

 

 

(1,260)

 

 

129,296

 

 

(45,949)

 

 

4,056,107

Total fixed maturity securities

$

21,182,756

 

$

(31,980)

 

$

626,445

 

$

(154,102)

 

$

21,623,119

 

 

At December 31, 2020

 

 

Amortized

 

Allowance 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

$

1,325,156

 

$

-

 

$

49,084

 

$

(7,134)

 

$

1,367,106

 

Obligations of U.S. states and political subdivisions

 

543,895

 

 

-

 

 

34,654

 

 

(1,254)

 

 

577,295

 

Corporate securities

 

6,824,800

 

 

(1,220)

 

 

380,677

 

 

(55,231)

 

 

7,149,026

 

Asset-backed securities

 

2,540,809

 

 

-

 

 

30,691

 

 

(5,698)

 

 

2,565,802

 

Mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

915,923

 

 

-

 

 

75,275

 

 

(895)

 

 

990,303

 

Agency residential

 

2,206,139

 

 

-

 

 

64,663

 

 

(3,063)

 

 

2,267,739

 

Non-agency residential

 

5,187

 

 

-

 

 

9

 

 

(2)

 

 

5,194

 

Foreign government securities

 

1,565,260

 

 

(22)

 

 

102,587

 

 

(22,450)

 

 

1,645,375

 

Foreign corporate securities

 

3,297,898

 

 

(503)

 

 

204,023

 

 

(29,085)

 

 

3,472,333

Total fixed maturity securities

$

19,225,067

 

$

(1,745)

 

$

941,663

 

$

(124,812)

 

$

20,040,173
Summary Of Amortized Cost And Market Value Of Fixed Maturity Securities, By Contractual Maturity

 

At September 30, 2021

 

At December 31, 2020

 

Amortized

 

Market

 

Amortized

 

Market

(Dollars in thousands)

Cost

 

Value

 

Cost

 

Value

Fixed maturity securities – available for sale:

 

 

 

 

 

 

 

 

 

 

 

Due in one year or less

$

1,621,263

 

$

1,621,541

 

$

1,365,793

 

$

1,374,674

Due after one year through five years

 

6,675,763

 

 

6,826,936

 

 

6,529,189

 

 

6,774,785

Due after five years through ten years

 

4,918,975

 

 

5,069,884

 

 

4,414,211

 

 

4,751,903

Due after ten years

 

1,424,370

 

 

1,458,329

 

 

1,247,816

 

 

1,309,773

Asset-backed securities

 

3,284,025

 

 

3,305,252

 

 

2,540,809

 

 

2,565,802

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

1,042,504

 

 

1,087,870

 

 

915,923

 

 

990,303

Agency residential

 

2,208,540

 

 

2,246,001

 

 

2,206,139

 

 

2,267,739

Non-agency residential

 

7,316

 

 

7,306

 

 

5,187

 

 

5,194

Total fixed maturity securities

$

21,182,756

 

$

21,623,119

 

$

19,225,067

 

$

20,040,173
Summary Of Changes In Net Unrealized Appreciation (Depreciation) For The Company's Investments

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

(Dollars in thousands)

2021

 

2020

 

2021

 

2020

Increase (decrease) during the period between the market value and cost

 

 

 

 

 

 

 

 

 

 

 

of investments carried at market value, and deferred taxes thereon:

 

 

 

 

 

 

 

 

 

 

 

Fixed maturity securities and short-term investments

$

(108,789)

 

$

55,587

 

$

(344,370)

 

$

392,640

Change in unrealized appreciation (depreciation), pre-tax

 

(108,789)

 

 

55,587

 

 

(344,370)

 

 

392,640

Deferred tax benefit (expense)

 

7,380

 

 

(3,560)

 

 

36,441

 

 

(44,116)

Change in unrealized appreciation (depreciation),

 

 

 

 

 

 

 

 

 

 

 

net of deferred taxes, included in shareholders’ equity

$

(101,409)

 

$

52,027

 

$

(307,929)

 

$

348,524
Summary Of Aggregate Market Value And Gross Unrealized Depreciation Of Fixed Maturity And Equity Securities, By Security Type

 

 

Duration of Unrealized Loss at September 30, 2021 By Security Type

 

Less than 12 months

 

Greater than 12 months

 

Total

 

 

 

 

Gross

 

 

 

 

Gross

 

 

 

 

Gross

 

 

 

 

Unrealized

 

 

 

 

Unrealized

 

 

 

 

Unrealized

(Dollars in thousands)

Market Value

 

Depreciation

 

Market Value

 

Depreciation

 

Market Value

 

Depreciation

Fixed maturity securities - available for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities and obligations of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government agencies and corporations

$

381,357

 

$

(6,369)

 

$

57,084

 

$

(3,954)

 

$

438,441

 

$

(10,323)

Obligations of U.S. states and political subdivisions

 

61,687

 

 

(937)

 

 

3,569

 

 

(121)

 

 

65,256

 

 

(1,058)

Corporate securities

 

1,559,623

 

 

(32,541)

 

 

399,617

 

 

(20,195)

 

 

1,959,240

 

 

(52,736)

Asset-backed securities

 

610,425

 

 

(3,131)

 

 

23,396

 

 

(368)

 

 

633,821

 

 

(3,499)

Mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

108,367

 

 

(3,138)

 

 

26,144

 

 

(1,225)

 

 

134,511

 

 

(4,363)

Agency residential

 

814,318

 

 

(5,631)

 

 

134,746

 

 

(2,784)

 

 

949,064

 

 

(8,415)

Non-agency residential

 

2,742

 

 

(19)

 

 

156

 

 

(2)

 

 

2,898

 

 

(21)

Foreign government securities

 

382,570

 

 

(22,491)

 

 

58,238

 

 

(5,247)

 

 

440,808

 

 

(27,738)

Foreign corporate securities

 

1,221,503

 

 

(34,080)

 

 

183,579

 

 

(11,869)

 

 

1,405,082

 

 

(45,949)

Total fixed maturity securities

$

5,142,592

 

$

(108,337)

 

$

886,529

 

$

(45,765)

 

$

6,029,121

 

$

(154,102)

 

 

Duration of Unrealized Loss at December 31, 2020 By Security Type

 

Less than 12 months

 

Greater than 12 months

 

Total

 

 

 

 

Gross

 

 

 

 

Gross

 

 

 

 

Gross

 

 

 

 

Unrealized

 

 

 

 

Unrealized

 

 

 

 

Unrealized

(Dollars in thousands)

Market Value

 

Depreciation

 

Market Value

 

Depreciation

 

Market Value

 

Depreciation

Fixed maturity securities - available for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities and obligations of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government agencies and corporations

$

135,190

 

$

(7,134)

 

$

-

 

$

-

 

$

135,190

 

$

(7,134)

Obligations of U.S. states and political subdivisions

 

19,524

 

 

(999)

 

 

4,059

 

 

(255)

 

 

23,583

 

 

(1,254)

Corporate securities

 

669,755

 

 

(26,159)

 

 

247,962

 

 

(29,072)

 

 

917,717

 

 

(55,231)

Asset-backed securities

 

235,566

 

 

(4,768)

 

 

85,595

 

 

(930)

 

 

321,161

 

 

(5,698)

Mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

53,511

 

 

(578)

 

 

6,592

 

 

(317)

 

 

60,103

 

 

(895)

Agency residential

 

434,447

 

 

(2,016)

 

 

50,353

 

 

(1,047)

 

 

484,800

 

 

(3,063)

Non-agency residential

 

185

 

 

(2)

 

 

-

 

 

-

 

 

185

 

 

(2)

Foreign government securities

 

114,755

 

 

(8,813)

 

 

150,812

 

 

(13,637)

 

 

265,567

 

 

(22,450)

Foreign corporate securities

 

354,548

 

 

(17,489)

 

 

115,595

 

 

(11,596)

 

 

470,143

 

 

(29,085)

Total fixed maturity securities

$

2,017,481

 

$

(67,958)

 

$

660,968

 

$

(56,854)

 

$

2,678,449

 

$

(124,812)
Summary Of Aggregate Market Value And Gross Unrealized Depreciation Of Fixed Maturity And Equity Securities, By Contractual Maturity

 

 

Duration of Unrealized Loss at September 30, 2021 By Maturity

 

Less than 12 months

 

Greater than 12 months

 

Total

 

 

 

 

Gross

 

 

 

 

Gross

 

 

 

 

Gross

 

 

 

 

Unrealized

 

 

 

 

Unrealized

 

 

 

 

Unrealized

(Dollars in thousands)

Market Value

 

Depreciation

 

Market Value

 

Depreciation

 

Market Value

 

Depreciation

Fixed maturity securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Due in one year or less

$

178,193

 

$

(6,982)

 

$

150,934

 

$

(11,210)

 

$

329,127

 

$

(18,192)

Due in one year through five years

 

1,494,463

 

 

(33,475)

 

 

381,773

 

 

(17,997)

 

 

1,876,236

 

 

(51,472)

Due in five years through ten years

 

1,466,402

 

 

(45,526)

 

 

123,239

 

 

(9,696)

 

 

1,589,641

 

 

(55,222)

Due after ten years

 

467,682

 

 

(10,435)

 

 

46,141

 

 

(2,483)

 

 

513,823

 

 

(12,918)

Asset-backed securities

 

610,425

 

 

(3,131)

 

 

23,396

 

 

(368)

 

 

633,821

 

 

(3,499)

Mortgage-backed securities

 

925,427

 

 

(8,788)

 

 

161,046

 

 

(4,011)

 

 

1,086,473

 

 

(12,799)

Total fixed maturity securities

$

5,142,592

 

$

(108,337)

 

$

886,529

 

$

(45,765)

 

$

6,029,121

 

$

(154,102)

 

 

Duration of Unrealized Loss at December 31, 2020 By Maturity

 

Less than 12 months

 

Greater than 12 months

 

Total

 

 

 

 

Gross

 

 

 

 

Gross

 

 

 

 

Gross

 

 

 

 

Unrealized

 

 

 

 

Unrealized

 

 

 

 

Unrealized

(Dollars in thousands)

Market Value

 

Depreciation

 

Market Value

 

Depreciation

 

Market Value

 

Depreciation

Fixed maturity securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Due in one year or less

$

96,144

 

$

(4,942)

 

$

112,419

 

$

(12,071)

 

$

208,563

 

$

(17,013)

Due in one year through five years

 

653,816

 

 

(32,469)

 

 

283,866

 

 

(21,319)

 

 

937,682

 

 

(53,788)

Due in five years through ten years

 

422,517

 

 

(19,392)

 

 

49,749

 

 

(2,034)

 

 

472,266

 

 

(21,426)

Due after ten years

 

121,295

 

 

(3,791)

 

 

72,394

 

 

(19,136)

 

 

193,689

 

 

(22,927)

Asset-backed securities

 

235,566

 

 

(4,768)

 

 

85,595

 

 

(930)

 

 

321,161

 

 

(5,698)

Mortgage-backed securities

 

488,143

 

 

(2,596)

 

 

56,945

 

 

(1,364)

 

 

545,088

 

 

(3,960)

Total fixed maturity securities

$

2,017,481

 

$

(67,958)

 

$

660,968

 

$

(56,854)

 

$

2,678,449

 

$

(124,812)
Summary Of Components Of Net Investment Income

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

(Dollars in thousands)

2021

 

2020

 

2021

 

2020

Fixed maturities

$

134,157

 

$

136,104

 

$

423,335

 

$

407,946

Equity securities

 

3,774

 

 

4,402

 

 

12,105

 

 

11,585

Short-term investments and cash

 

82

 

 

494

 

 

1,035

 

 

4,356

Other invested assets:

 

 

 

 

 

 

 

 

 

 

 

Limited partnerships

 

138,718

 

 

88,778

 

 

493,017

 

 

22,092

Other

 

30,954

 

 

14,742

 

 

62,828

 

 

(1,291)

Gross investment income before adjustments

 

307,685

 

 

244,520

 

 

992,320

 

 

444,688

Funds held interest income (expense)

 

1,196

 

 

684

 

 

12,449

 

 

10,921

Future policy benefit reserve income (expense)

 

(272)

 

 

(291)

 

 

(733)

 

 

(805)

Gross investment income

 

308,609

 

 

244,913

 

 

1,004,036

 

 

454,804

Investment expenses

 

(15,850)

 

 

(10,680)

 

 

(43,769)

 

 

(34,688)

Net investment income

$

292,759

 

$

234,233

 

$

960,267

 

$

420,116
Summary Of Components Of Net Realized Capital Gains (Losses)

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

(Dollars in thousands)

2021

 

 

2020

 

2021

 

 

2020

Fixed maturity securities, market value:

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses

$

(7,329)

 

$

6,196

 

$

(30,234)

 

$

(19,641)

Gains (losses) from sales

 

6,219

 

 

5,398

 

 

25,453

 

 

941

Fixed maturity securities, fair value:

 

 

 

 

 

 

 

 

 

 

 

Gains (losses) from sales

 

-

 

 

(1,968)

 

 

-

 

 

(1,968)

Gains (losses) from fair value adjustments

 

-

 

 

3,339

 

 

-

 

 

1,944

Equity securities, fair value:

 

 

 

 

 

 

 

 

 

 

 

Gains (losses) from sales

 

(489)

 

 

(1,317)

 

 

9,504

 

 

(12,642)

Gains (losses) from fair value adjustments

 

(4,542)

 

 

96,673

 

 

128,039

 

 

114,364

Other invested assets

 

1,920

 

 

1,084

 

 

6,014

 

 

50

Short-term investments gain (loss)

 

-

 

 

798

 

 

13

 

 

1,215

Total net realized capital gains (losses)

$

(4,222)

 

$

110,203

 

$

138,789

 

$

84,263

 

 

 

 

 

 

 

 

 

 

 

 

(Some amounts may not reconcile due to rounding.)

 

 

 

 

 

 

 

 

 

 

 

 

 

Roll Forward of Allowance for Credit Losses

 

 

Three Months Ended September 30, 2021

 

Nine Months Ended September 30, 2021

 

 

 

 

 

 

Obligations of

 

 

 

 

 

 

 

 

 

 

 

Obligations of

 

 

 

 

 

 

 

 

 

 

 

 

U.S. States

 

Foreign

 

Foreign

 

 

 

 

 

 

 

U.S. States

 

Foreign

 

Foreign

 

 

 

 

Corporate

 

Asset-Backed

 

and Political

 

Government

 

Corporate

 

 

 

Corporate

 

Asset-Backed

 

and Political

 

Government

 

Corporate

 

 

 

 

Securities

 

Securities

 

Subdivisions

 

Securities

 

Securities

 

Total

 

Securities

 

Securities

 

Subdivisions

 

Securities

 

Securities

 

Total

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning Balance

 

$

(18,475)

 

$

(4,915)

 

$

-

 

$

-

 

$

(1,260)

 

$

(24,650)

 

$

(1,220)

 

$

-

 

$

-

 

$

(22)

 

$

(503)

 

$

(1,745)

Credit losses on securities where credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

losses were not previously recorded

 

 

(5,257)

 

 

 

 

 

(151)

 

 

-

 

 

-

 

 

(5,408)

 

 

(21,177)

 

 

(4,915)

 

 

(151)

 

 

-

 

 

(1,055)

 

 

(27,298)

Increases in allowance on previously

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

impaired securities

 

 

(620)

 

 

(2,764)

 

 

-

 

 

-

 

 

-

 

 

(3,384)

 

 

(2,088)

 

 

(2,764)

 

 

-

 

 

-

 

 

-

 

 

(4,852)

Decreases in allowance on previously

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

impaired securities

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

Reduction in allowance due to disposals

 

 

1,462

 

 

-

 

 

-

 

 

-

 

 

-

 

 

1,462

 

 

1,595

 

 

-

 

 

-

 

 

22

 

 

298

 

 

1,915

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of September 30, 2021

 

$

(22,890)

 

$

(7,679)

 

$

(151)

 

$

-

 

$

(1,260)

 

$

(31,980)

 

$

(22,890)

 

$

(7,679)

 

$

(151)

 

$

-

 

$

(1,260)

 

$

(31,980)

 

Roll Forward of Allowance for Credit Losses

 

Three Months Ended September 30, 2020

 

Nine Months Ended September 30, 2020

 

 

 

 

Foreign

 

Foreign

 

 

 

 

 

 

 

Foreign

 

Foreign

 

 

 

 

Corporate

 

Government

 

Corporate

 

 

 

 

Corporate

 

Government

 

Corporate

 

 

 

 

Securities

 

Securities

 

Securities

 

Total

 

Securities

 

Securities

 

Securities

 

Total

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning Balance

$

(22,253)

 

$

(92)

 

$

(3,492)

 

$

(25,837)

 

$

-

 

$

-

 

$

-

 

$

-

Credit losses on securities where credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

losses were not previously recorded

 

(6)

 

 

-

 

 

(144)

 

 

(150)

 

 

(27,666)

 

 

(519)

 

 

(4,699)

 

 

(32,884)

Increases in allowance on previously

 

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

impaired securities

 

(5,354)

 

 

(27)

 

 

(181)

 

 

(5,562)

 

 

(6,136)

 

 

(27)

 

 

(481)

 

 

(6,644)

Decreases in allowance on previously

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

impaired securities

 

159

 

 

-

 

 

151

 

 

310

 

 

3,590

 

 

212

 

 

844

 

 

4,646

Reduction in allowance due to disposals

 

9,980

 

 

-

 

 

1,618

 

 

11,598

 

 

12,738

 

 

215

 

 

2,288

 

 

15,241

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of September 30, 2020

$

(17,474)

 

$

(119)

 

$

(2,048)

 

$

(19,641)

 

$

(17,474)

 

$

(119)

 

$

(2,048)

 

$

(19,641)
Summary Of Gross Gains (Losses) From Sales Of Fixed Maturity And Equity Securities

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

(Dollars in thousands)

2021

 

2020

 

2021

 

2020

Proceeds from sales of fixed maturity securities

$

283,412

 

$

402,528

 

$

883,149

 

$

1,392,801

Gross gains from sales

 

17,004

 

 

18,721

 

 

51,738

 

 

54,077

Gross losses from sales

 

(10,785)

 

 

(15,291)

 

 

(26,285)

 

 

(55,104)

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from sales of equity securities

$

104,231

 

$

116,565

 

$

578,894

 

$

329,750

Gross gains from sales

 

2,768

 

 

9,512

 

 

20,875

 

 

30,268

Gross losses from sales

 

(3,257)

 

 

(10,829)

 

 

(11,371)

 

 

(42,910)