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Investments (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Investments Debt and Equity Securities [Line Items]

Schedule of AFS Securities Reconciliation

The period-end cost or amortized cost, gross unrealized gains and losses, and fair value of AFS fixed-maturity and equity securities were as follows:

	December 31, 2018
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
	(In thousands)
Securities available-for-sale, carried at fair value:
Fixed-maturity securities:
U.S. government and agencies	$	12,115	$	176	$	(58	)	$	12,233
Foreign government		155,723		3,347		(958	)		158,112
States and political subdivisions		59,075		1,202		(271	)		60,006
Corporates		1,447,075		11,916		(24,773	)		1,434,218
Residential mortgage-backed securities		191,245		2,439		(1,733	)		191,951
Commercial mortgage-backed securities		131,279		1,712		(1,636	)		131,355
Other asset-backed securities		82,310		205		(755	)		81,760
Total fixed-maturity securities⁽¹⁾		2,078,822		20,997		(30,184	)		2,069,635
Short-term investments		8,171		-		-			8,171
Total fixed-maturity and short-term investments	$	2,086,993	$	20,997	$	(30,184	)	$	2,077,806

⁽¹⁾	^{Includes $0.1 million of OTTI losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income (loss).}

	December 31, 2017
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
	(In thousands)
Securities available-for-sale, carried at fair value:
Fixed-maturity securities:
U.S. government and agencies	$	11,577	$	283	$	(47	)	$	11,813
Foreign government		139,486		5,651		(648	)		144,489
States and political subdivisions		54,714		1,554		(141	)		56,127
Corporates		1,337,321		42,616		(3,655	)		1,376,282
Residential mortgage-backed securities		119,672		3,583		(297	)		122,958
Commercial mortgage-backed securities		134,003		2,299		(910	)		135,392
Other asset-backed securities		80,553		452		(224	)		80,781
Total fixed-maturity securities⁽¹⁾		1,877,326		56,438		(5,922	)		1,927,842
Equity securities		31,331		9,796		(20	)		41,107
Total fixed-maturity and equity securities	$	1,908,657	$	66,234	$	(5,942	)	$	1,968,949

⁽¹⁾	Includes $0.2 million of OTTI losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income (loss).

Fixed-maturity Securities Classified by Contractual Maturity Securities Date

The scheduled maturity distribution of the AFS fixed-maturity securities portfolio at December 31, 2018 was as follows:

	Amortized cost		Fair value
	(In thousands)
Due in one year or less	$	221,508	$	222,803
Due after one year through five years		871,181		867,564
Due after five years through 10 years		529,167		519,647
Due after 10 years		52,132		54,555
		1,673,988		1,664,569
Mortgage- and asset-backed securities		404,834		405,066
Total AFS fixed-maturity securities	$	2,078,822	$	2,069,635

Net Effect on Stockholders' Equity of Unrealized Gains and Losses on AFS Securities

The net effect on stockholders’ equity of unrealized gains and losses on AFS securities was as follows:

	December 31, 2018			December 31, 2017
	(In thousands)
Net unrealized investment gains on available-for-sale securities including OTTI:
Available-for-sale securities	$	(9,187	)	$	60,292		⁽¹⁾
OTTI		147			174
Net unrealized investment gains on available-for-sale securities excluding OTTI		(9,040	)		60,466
Deferred income taxes		1,787			(20,780	)
Net unrealized investment gains on available-for-sale securities excluding OTTI, net of tax	$	(7,253	)	$	39,686

⁽¹⁾	^{Includes $9.8 million of net unrealized gains for equity securities recognized in accumulated other comprehensive income (loss) prior to the adoption of ASU 2016-01.}

Costs and Fair Values of Fixed-Maturity and Equity Securities Classified as Trading Securities

The costs and fair values of the fixed-maturity and equity securities classified as trading securities were as follows:

	December 31, 2018				December 31, 2017
	Cost		Fair value		Cost		Fair value
	(In thousands)
Fixed-maturity securities	$	13,597	$	13,610	$	4,801	$	4,800
Equity securities⁽¹⁾		-		-		1,371		1,428
Total trading securities	$	13,597	$	13,610	$	6,172	$	6,228

⁽¹⁾	^{Equity securities, previously classified as trading securities, are no longer classified as trading securities due to the adoption of ASU 2016-01. As of December 31, 2018, all equity security investments held by the Company are presented in the consolidated balance sheet as equity securities.}

Net Investment Income

Investment Income. The components of net investment income were as follows:

	Year ended December 31,
	2018			2017			2016
	(In thousands)
Fixed-maturity securities (available-for-sale)	$	79,356		$	76,877		$	74,673
Fixed-maturity security (held-to-maturity)		37,485			26,865			18,880
Equity securities		1,955			2,095			2,053
Policy loans and other invested assets		1,670			1,413			1,340
Cash and cash equivalents		2,922			1,123			632
Total return on deposit asset underlying 10% coinsurance agreement⁽¹⁾		3,643			2,970			5,212
Gross investment income		127,031			111,343			102,790
Investment expenses		(8,116	)		(5,461	)		(4,885	)
Investment income net of investment expenses		118,915			105,882			97,905
Interest expense on surplus note		(37,485	)		(26,865	)		(18,880	)
Net investment income	$	81,430		$	79,017		$	79,025

⁽¹⁾

^{Includes $1.7 million of net losses recognized for the change in fair value of the deposit asset underlying the 10% coinsurance agreement for the year ended December 31, 2018. The change in fair value of the deposit asset underlying the 10% coinsurance agreement for the years ended December 31, 2017 and 2016 was not material.}

Schedule of Net Realized Investment Gains and Losses

The components of net realized investment gains (losses), as well as details on gross realized investment gains and (losses) were as follows:

	Year ended December 31,
	2018			2017			2016
	(In thousands)
Net realized investment gains (losses):
Gross gains from sales of available-for-sale securities	$	1,162		$	3,249		$	8,126
Gross losses from sales of available-for-sale securities		(965	)		(107	)		(751	)
OTTI losses of available-for-sale securities		(152	)		(1,553	)		(3,420	)
Net gains (losses) recognized in net income during the period on equity securities		(2,456	)		-			-
Gains (losses) from bifurcated options		290			(250	)		133
Net realized investment gains (losses)	$	(2,121	)	$	1,339		$	4,088

Schedule of Proceeds from Sales or Other Redemptions of Available-for-Sale Securities

The proceeds from sales or other redemptions of available-for-sale securities were as follows:

	Year ended December 31,
	2018		2017		2016
	(In thousands)
Proceeds from sales or other redemptions	$	414,138	$	306,303	$	354,823

Schedule of Unrealized Net Gains (Losses) Recognized in NI on Equity Securities Still Held at Period-End

The components of net gains (losses) recognized in net income on equity securities still held as of period-end were as follows:

	Year ended December 31,
	2018			2017		2016
	(In thousands)
Net gains (losses) recognized on equity securities	$	(2,456	)	$	-	$	-
Less: Net gains (losses) recognized on equity securities sold		(48	)		-		-
Net gains (losses) recognized in net income on equity securities still held as of period-end	$	(2,408	)	$	-	$	-

Schedule of Securities in Unrealized Loss Position

The following tables summarize, for all AFS securities in an unrealized loss position, the aggregate fair value and the gross unrealized loss by length of time such securities have continuously been in an unrealized loss position:

	December 31, 2018
	Less than 12 months							12 months or longer
	Fair value		Unrealized losses			Number of securities		Fair value		Unrealized losses			Number of securities
	(Dollars in thousands)
Fixed-maturity securities:
U.S. government and agencies	$	1,668	$	(10	)		1	$	4,541	$	(48	)		6
Foreign government		7,326		(170	)		7		52,086		(788	)		54
States and political subdivisions		2,644		(9	)		3		23,324		(262	)		20
Corporates		489,880		(10,649	)		396		360,516		(14,124	)		321
Residential mortgage-backed securities		32,725		(86	)		14		71,308		(1,647	)		41
Commercial mortgage-backed securities		31,129		(173	)		20		78,911		(1,463	)		77
Other asset-backed securities		19,363		(184	)		35		33,989		(571	)		41
Total fixed-maturity securities	$	584,735	$	(11,281	)			$	624,675	$	(18,903	)

	December 31, 2017
	Less than 12 months							12 months or longer
	Fair value		Unrealized losses			Number of securities		Fair value		Unrealized losses			Number of securities
	(Dollars in thousands)
Fixed-maturity securities:
U.S. government and agencies	$	4,754	$	(34	)		5	$	2,975	$	(13	)		3
Foreign government		40,287		(465	)		45		7,102		(183	)		7
States and political subdivisions		7,369		(43	)		7		6,267		(98	)		7
Corporates		247,613		(2,323	)		216		39,767		(1,332	)		43
Residential mortgage-backed securities		33,610		(263	)		16		2,592		(34	)		8
Commercial mortgage-backed securities		60,116		(394	)		52		22,149		(516	)		25
Other asset-backed securities		32,605		(121	)		33		14,819		(103	)		19
Total fixed-maturity securities		426,354		(3,643	)				95,671		(2,279	)
Equity securities		1,076		(16	)		4		170		(4	)		2
Total fixed-maturity and equity securities	$	427,430	$	(3,659	)			$	95,841	$	(2,283	)

Amortized Cost and Fair Value of AFS Fixed-maturity Securities in Default

The amortized cost and fair value of AFS fixed-maturity securities in default were as follows:

	December 31, 2018				December 31, 2017
	Amortized cost		Fair value		Amortized cost		Fair value
	(In thousands)
Fixed-maturity securities in default	$	3	$	227	$	503	$	654

OTTI in Earnings on AFS Securities

OTTI recognized in earnings on AFS securities were as follows:

	Year ended December 31,
	2018		2017		2016
	(In thousands)
OTTI on fixed-maturity securities not in default	$	152	$	1,001	$	3,257
OTTI on fixed-maturity securities in default		-		267		121
OTTI on equity securities⁽¹⁾		-		285		42
Total OTTI recognized in earnings	$	152	$	1,553	$	3,420

⁽¹⁾	^{Subsequent to the adoption of ASU 2016-01 all changes in the fair value of equity securities are recognized in net income and thus OTTI no longer applies to equity securities.}

Schedule of OTTI Recognized in Earnings for AFS Securities

The rollforward of the OTTI recognized in net income for all AFS fixed-maturity securities still held was as follows:

	Year ended December 31,
	2018			2017
	(In thousands)
Cumulative OTTI recognized in net income for securities still held, beginning of period	$	4,346		$	5,774
Additions for securities where no OTTI were recognized prior to the beginning of the period		-			351
Additions for securities where OTTI have been recognized prior to the beginning of the period		152			917
Reductions due to sales, maturities, calls, amortization or increases in cash flows expected to be collected over the remaining life of credit-impaired securities		(1,987	)		(1,513	)
Reductions for exchanges of securities previously impaired		-			(1,183	)
Cumulative OTTI recognized in net income for securities still held, end of period	$	2,511		$	4,346

AFS [Member]

Schedule of Investments Debt and Equity Securities [Line Items]

Schedule of OTTI Recognized in Earnings for AFS Securities

OTTI recognized in earnings for AFS securities were as follows:

	Year ended December 31,
	2018		2017		2016
	(In thousands)
Total OTTI related to securities which the Company does not intend to sell or more-likely-than-not will not be required to sell:
Total OTTI losses recognized	$	152	$	1,476	$	1,486
Less portion of OTTI recognized in accumulated other comprehensive income (loss)		-		147		-
OTTI recognized in earnings for securities which the Company does not intend to sell or more-likely than-not will not be required to sell before recovery		152		1,329		1,486
OTTI recognized in earnings for securities which the Company intends to sell or more-likely-than-not will be required to sell before recovery		-		224		1,934
OTTI recognized in earnings	$	152	$	1,553	$	3,420