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Investments | 12 Months Ended
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Mar. 31, 2022
Investments, Debt and Equity Securities [Abstract] |
Investments | Note 5. 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 $ 27.1 million and $ 27.7 million for December 31, 2021 and 2020, respectively. Available-for-Sale Investments Available-for-sale investments as of March 31, 2022 were as follows: Cost Amortized Unrealized Gains Gross Unrealized Losses More than 12 Months Gross Unrealized Losses Less than 12 Months Gross Allowance for Expected Credit Losses Value Fair (In thousands) U.S. treasury securities and government obligations $ 128,078 $ 7,984 $ – $ (969) $ – $ 135,093 U.S. government agency mortgage-backed securities 44,678 280 (42) (3,111) – 41,805 Obligations of states and political subdivisions 178,040 15,450 – (508) – 192,982 Corporate securities 1,989,212 138,909 (402) (6,604) (60) 2,121,055 Mortgage-backed securities 324,029 7,671 (1) (1,542) – 330,157 $ 2,664,037 $ 170,294 $ ( 445 ) $ ( 12,734 ) $ ( 60 ) $ 2,821,092 Available-for-sale investments as of March 31, 2021 were as follows: Cost Amortized Unrealized Gains Gross Unrealized Losses More than 12 Months Gross Unrealized Losses Less than 12 Months Gross Allowance for Expected Credit Losses Value Fair (in thousands) U.S. treasury securities and government obligations $ 92,429 $ 12,941 $ – $ – $ – $ 105,370 U.S. government agency mortgage-backed securities 61,427 911 (1) (132) – 62,205 Obligations of states and political subdivisions 230,521 25,249 (59) (3) – 255,708 Corporate securities 1,846,507 199,447 (163) (640) (1,320) 2,043,831 Mortgage-backed securities 174,728 11,706 (1) (8) – 186,425 $ 2,405,612 $ 250,254 $ ( 224 ) $ ( 783 ) $ ( 1,320 ) $ 2,653,539 We sold available-for-sale securities with a fair value of $ 352.3 million, $ 523.9 million and $ 264.5 million in fiscal 2022, 2021 and 2020, respectively. The gross realized gains on these sales totaled $ 9.5 million, $ 9.6 million and $ 6.4 million in fiscal 2022, 2021 and 2020, respectively. We realized gross losses on these sales of $ 1.4 million, $ 2.1 million and $ 0.2 million in fiscal 2022, 2021 and 2020, respectively. We adopted Topic 326 as of April 1, 2020. For available-for-sale debt securities in an unrealized loss position, we first assess whether the security is below investment grade. For securities that are below investment grade, we evaluate whether the decline in fair value has resulted from credit losses or other factors such as the interest rate environment. Declines in value due to credit are recognized as an allowance. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse market conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, cumulative default rates based on ratings are used to determine the potential cost of default, by year. The present value of these potential costs is then compared to the amortized cost of the security to determine the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Declines in fair value that have not been recorded through an allowance for credit losses, such as declines due to changes in market interest rates, are recorded through accumulated other comprehensive income, net of applicable taxes. If we intend to sell a security, or it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis, the security is written down to its fair value and the write down is charged against the allowance for credit losses, with any incremental impairment reported in earnings. Reversals of the allowance for credit losses are permitted and should not exceed the allowance amount initially recognized. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. There were no incremental impairment charges recorded during fiscal year 2022. The adjusted cost and estimated market value of available-for-sale investments by contractual maturity, were as follows: March 31, 2022 March 31, 2021 Cost Amortized Value Fair Cost Amortized Value Fair (In thousands) Due in one year or less $ 97,969 $ 99,432 $ 90,142 $ 91,190 Due after one year through five years 541,840 570,135 562,442 601,818 Due after five years through ten years 704,295 765,073 672,733 754,536 Due after ten years 995,904 1,056,295 905,567 1,019,570 2,340,008 2,490,935 2,230,884 2,467,114 Mortgage backed securities 324,029 330,157 174,728 186,425 $ 2,664,037 $ 2,821,092 $ 2,405,612 $ 2,653,539 Equity investments of common stock and non-redeemable preferred stock were as follows: March 31, 2022 March 31, 2021 Cost Amortized Value Fair Cost Amortized Value Fair (In thousands) Common stocks $ 27,674 $ 46,212 $ 9,775 $ 20,440 Non-redeemable preferred stocks 26,054 26,095 20,034 21,677 $ 53,728 $ 72,307 $ 29,809 $ 42,117 Investments, other The carrying value of other investments was as follows: March 31, 2022 2021 (In thousands) Mortgage loans, net $ 423,163 $ 391,230 Short-term investments 30,916 7,234 Real estate 67,824 68,813 Policy loans 10,309 11,163 Other equity investments 11,543 11,319 $ 543,755 $ 489,759 Mortgage loans are carried at the unpaid balance, less an allowance for expected losses net of any unamortized premium or discount. The portfolio of mortgage loans is principally collateralized by self-storage facilities and commercial properties. The interest rate range on the mortgage loans is 3.5 % to 5.9 % with maturities between 2022 and 2036 . The allowance for expected losses was $ 0.5 million for both March 31, 2022 and 2021. These loans represent first lien mortgages held by us. Mortgage loans are reviewed on an ongoing basis and analysis may include market analysis, estimated valuations of the underlying collateral, loan to value ratios, tenant creditworthiness and other factors. For our mortgage loans, no specifically identified loans were impaired as of March 31, 2022. We have not experienced any material losses related to the notes from individual or groups of notes in any particular industry or geographic area. Short-term investments consist primarily of investments in money market funds, mutual funds and any other investments with short-term characteristics that have original maturities of less than one year at acquisition. These investments are recorded at cost, which approximates fair value. Real estate held for future development or use is carried at the lower of fair value at time of acquisition or current estimated fair value less cost to sell. Other equity investments are carried at cost and assessed for impairment. Insurance policy loans are carried at their unpaid balance.

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- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) + Details
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