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Investments | 6 Months Ended
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Sep. 30, 2019
Investments Debt Equity Securities [Abstract] |
3. Investments | Expected maturities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. We deposit bonds with insurance regulatory authorities to meet statutory requirements. The adjusted cost of bonds on deposit with insurance regulatory authorities was $29.4 million and $30.8 million as of September 30, 2019 and March 31, 2019, respectively. Available-for-Sale Investments Available-for-sale investments as of September 30, 2019 were as follows:
|  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses More than 12 Months |  | Gross Unrealized Losses Less than 12 Months |  | Estimated Market Value
|  | (Unaudited)
|  | (In thousands)
U.S. treasury securities and government obligations | $ | 133,938 | $ | 7,673 | $ | (148) | $ | 0 | $ | 141,463
U.S. government agency mortgage-backed securities |  | 40,588 |  | 694 |  | (2) |  | 0 |  | 41,280
Obligations of states and political subdivisions |  | 296,325 |  | 20,642 |  | (155) |  | 0 |  | 316,812
Corporate securities |  | 1,654,981 |  | 77,467 |  | (2,329) |  | (176) |  | 1,729,943
Mortgage-backed securities |  | 150,143 |  | 5,529 |  | (1) |  | (49) |  | 155,622
Redeemable preferred stocks |  | 1,493 |  | 74 |  | 0 |  | 0 |  | 1,567
| $ | 2,277,468 | $ | 112,079 | $ | (2,635) | $ | (225) | $ | 2,386,687
9 Available-for-sale investments at March 31, 2019 were as follows:
|  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses More than 12 Months |  | Gross Unrealized Losses Less than 12 Months |  | Estimated Market Value
|  | (In thousands)
U.S. treasury securities and government obligations | $ | 136,010 | $ | 2,409 | $ | (2,104) | $ | (447) | $ | 135,868
U.S. government agency mortgage-backed securities |  | 31,101 |  | 433 |  | (146) |  | (19) |  | 31,369
Obligations of states and political subdivisions |  | 298,955 |  | 8,079 |  | (233) |  | (905) |  | 305,896
Corporate securities |  | 1,613,199 |  | 14,777 |  | (14,257) |  | (24,986) |  | 1,588,733
Mortgage-backed securities |  | 148,203 |  | 880 |  | (285) |  | (903) |  | 147,895
Redeemable preferred stocks |  | 1,493 |  | 20 |  | 0 |  | (45) |  | 1,468
| $ | 2,228,961 | $ | 26,598 | $ | (17,025) | $ | (27,305) | $ | 2,211,229
The available-for-sale tables include gross unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position. We sold available-for-sale securities with a fair value of $124.8 million during the first six months of fiscal 2020. The gross realized gains on these sales totaled $3.6 million. The gross realized losses on these sales totaled $0.2 million. The unrealized losses of more than twelve months in the available-for-sale tables are considered temporary declines. We track each investment with an unrealized loss and evaluate them on an individual basis for other-than-temporary impairments, including obtaining corroborating opinions from third party sources, performing trend analysis and reviewing management’s future plans. Certain of these investments may have declines determined by management to be other-than-temporary and we recognize these write-downs, if any, through earnings. There were no write-downs in the second quarter or first six months of fiscal 2020 or 2019. The investment portfolio primarily consists of corporate securities and obligations of states and political subdivisions. We believe we monitor our investments as appropriate. Our methodology of assessing other-than-temporary impairments is based on security-specific analysis as of the balance sheet date and considers various factors including the length of time to maturity, the extent to which the fair value has been less than the cost, the financial condition and the near-term prospects of the issuer, and whether the debtor is current on its contractually obligated interest and principal payments. Nothing has come to management’s attention that would lead to the belief that any issuer would not have the ability to meet the remaining contractual obligations of the security, including payment at maturity. We have the ability and intent not to sell our fixed maturity and common stock investments for a period of time sufficient to allow us to recover our costs. The portion of other-than-temporary impairment related to a credit loss is recognized in earnings. The significant inputs utilized in the evaluation of mortgage-backed securities credit losses include ratings, delinquency rates, and prepayment activity. The significant inputs utilized in the evaluation of asset backed securities credit losses include the time frame for principal recovery and the subordination and value of the underlying collateral. There were no credit losses recognized in earnings for which a portion of an other-than-temporary impairment was recognized in accumulated other comprehensive income (loss) (“AOCI”) for the first six months of fiscal 2020 and fiscal 2019, respectively. 10 The adjusted cost and estimated market value of available-for-sale investments by contractual maturity were as follows:
|  | September 30, 2019 |  | March 31, 2019
|  | Amortized Cost |  | Estimated Market Value |  | Amortized Cost |  | Estimated Market Value
|  | (Unaudited) |  |
|  | (In thousands)
Due in one year or less | $ | 83,028 | $ | 83,337 | $ | 71,987 | $ | 71,954
Due after one year through five years |  | 521,038 |  | 536,225 |  | 541,195 |  | 540,658
Due after five years through ten years |  | 694,348 |  | 729,026 |  | 621,031 |  | 614,485
Due after ten years |  | 827,418 |  | 880,910 |  | 845,052 |  | 834,769
|  | 2,125,832 |  | 2,229,498 |  | 2,079,265 |  | 2,061,866
Mortgage-backed securities |  | 150,143 |  | 155,622 |  | 148,203 |  | 147,895
Redeemable preferred stocks |  | 1,493 |  | 1,567 |  | 1,493 |  | 1,468
| $ | 2,277,468 | $ | 2,386,687 | $ | 2,228,961 | $ | 2,211,229
As of September 30, 2019 and March 31, 2019, our common stock and non-redeemable preferred stock that are included in Investments, fixed maturities and marketable equities on our balance sheet are stated in the table below. The changes in the fair value of these equity investments are recognized through Net investment and interest income. Equity investments of common stock and non-redeemable preferred stock were as follows:
|  | September 30, 2019 |  | March 31, 2019
|  | Amortized Cost |  | Estimated Market Value |  | Amortized Cost |  | Estimated Market Value
|  | (Unaudited) |  |  |  |
|  | (In thousands)
Common stocks | $ | 10,123 | $ | 19,207 | $ | 10,123 | $ | 17,379
Non-redeemable preferred stocks |  | 7,451 |  | 7,456 |  | 7,451 |  | 6,789
| $ | 17,574 | $ | 26,663 | $ | 17,574 | $ | 24,168

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