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Investments | 12 Months Ended
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Dec. 31, 2017
Investments [Abstract] |
Investments | Investments The amortized cost, gross unrealized gains and losses and fair value of the investment portfolio as of December 31, 2017 and 2016 are shown below:
| Table | 5.1a |  |  |  |  |  |  |  |
Details of investments by category - current year |  |  | December 31, 2017
(In thousands) |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses (1) |  | Fair Value
| U.S. Treasury securities and obligations of U.S. government corporations and agencies |  | $ | 179,850 |  |  | $ | 274 |  |  | $ | (1,278 | ) |  | $ | 178,846 |
| Obligations of U.S. states and political subdivisions |  | 2,105,063 |  |  | 56,210 |  |  | (8,749 | ) |  | 2,152,524 |
| Corporate debt securities |  | 2,065,475 |  |  | 10,532 |  |  | (9,169 | ) |  | 2,066,838 |
| ABS |  | 4,925 |  |  | — |  |  | (2 | ) |  | 4,923 |
| RMBS |  | 189,153 |  |  | 60 |  |  | (7,364 | ) |  | 181,849 |
| CMBS |  | 301,014 |  |  | 1,204 |  |  | (4,906 | ) |  | 297,312 |
| CLOs |  | 100,798 |  |  | 304 |  |  | (79 | ) |  | 101,023 |
| Total debt securities |  | 4,946,278 |  |  | 68,584 |  |  | (31,547 | ) |  | 4,983,315 |
| Equity securities |  | 7,223 |  |  | 39 |  |  | (16 | ) |  | 7,246 |
| Total investment portfolio |  | $ | 4,953,501 |  |  | $ | 68,623 |  |  | $ | (31,563 | ) |  | $ | 4,990,561 |
| Table | 5.1b |  |  |  |  |  |  |  |
Details of investments by category - prior year |  |  | December 31, 2016
(In thousands) |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses (1) |  | Fair Value
| U.S. Treasury securities and obligations of U.S. government corporations and agencies |  | $ | 73,847 |  |  | $ | 407 |  |  | $ | (724 | ) |  | $ | 73,530 |
| Obligations of U.S. states and political subdivisions |  | 2,147,458 |  |  | 20,983 |  |  | (25,425 | ) |  | 2,143,016 |
| Corporate debt securities |  | 1,756,461 |  |  | 6,059 |  |  | (18,610 | ) |  | 1,743,910 |
| ABS |  | 59,519 |  |  | 74 |  |  | (28 | ) |  | 59,565 |
| RMBS |  | 231,733 |  |  | 102 |  |  | (7,626 | ) |  | 224,209 |
| CMBS |  | 327,042 |  |  | 769 |  |  | (7,994 | ) |  | 319,817 |
| CLOs |  | 121,151 |  |  | 226 |  |  | (202 | ) |  | 121,175 |
| Total debt securities |  | 4,717,211 |  |  | 28,620 |  |  | (60,609 | ) |  | 4,685,222 |
| Equity securities |  | 7,144 |  |  | 8 |  |  | (24 | ) |  | 7,128 |
| Total investment portfolio |  | $ | 4,724,355 |  |  | $ | 28,628 |  |  | $ | (60,633 | ) |  | $ | 4,692,350 |
(1) | There were no OTTI losses recorded in other comprehensive (loss) income as of December 31, 2017 and 2016.
As discussed in Note 7 - "Debt" we are required to pledge collateral of at least 102% of the outstanding principal balance of the FHLB Advance. As of December 31, 2017, that collateral is included in our total investment portfolio amount shown above with a total fair value of $166.9 million. We had $13.6 million of investments at fair value on deposit with various states as of December 31, 2017 and 2016, respectively, due to regulatory requirements of those state insurance departments. Table 5.2 compares the amortized cost and fair values of debt securities, by contractual maturity, as of December 31, 2017.
| Table | 5.2 |  |  |  |
Debt securities maturity schedule |  |  | December 31, 2017
(In thousands) |  | Amortized Cost |  | Fair Value
| Due in one year or less |  | $ | 541,755 |  |  | $ | 541,695 |
| Due after one year through five years |  | 1,547,712 |  |  | 1,544,943 |
| Due after five years through ten years |  | 925,751 |  |  | 929,883 |
| Due after ten years |  | 1,335,170 |  |  | 1,381,687 |
|  |  | 4,350,388 |  |  | 4,398,208 |
| ABS |  | 4,925 |  |  | 4,923 |
| RMBS |  | 189,153 |  |  | 181,849 |
| CMBS |  | 301,014 |  |  | 297,312 |
| CLOs |  | 100,798 |  |  | 101,023 |
| Total as of December 31, 2017 |  | $ | 4,946,278 |  |  | $ | 4,983,315 |
The analysis in table 5.2 is based upon contractual maturity. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations with or without call or prepayment penalties. Because most mortgage and asset-backed securities provide for periodic payments throughout their lives, they are listed separately in the table. Tables 5.3a and 5.3b show the components of our unrealized losses on our investment portfolio in the amount of $32 million and $61 million as of December 31, 2017 and 2016, respectively.
| Table | 5.3a |  |  |  |  |  |  |  |  |  |  |  |
Investments unrealized losses - current year | December 31, 2017 |  | Less Than 12 Months |  | 12 Months or Greater |  | Total
(In thousands) |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
| U.S. Treasury securities and obligations of U.S. government corporations and agencies |  | $ | 144,042 |  |  | $ | (796 | ) |  | $ | 31,196 |  |  | $ | (482 | ) |  | $ | 175,238 |  |  | $ | (1,278 | )
| Obligations of U.S. states and political subdivisions |  | 505,311 |  |  | (3,624 | ) |  | 211,684 |  |  | (5,125 | ) |  | 716,995 |  |  | (8,749 | )
| Corporate debt securities |  | 932,350 |  |  | (4,288 | ) |  | 200,716 |  |  | (4,881 | ) |  | 1,133,066 |  |  | (9,169 | )
| ABS |  | 4,923 |  |  | (2 | ) |  | — |  |  | — |  |  | 4,923 |  |  | (2 | )
| RMBS |  | 14,979 |  |  | (280 | ) |  | 166,329 |  |  | (7,084 | ) |  | 181,308 |  |  | (7,364 | )
| CMBS |  | 51,096 |  |  | (358 | ) |  | 138,769 |  |  | (4,548 | ) |  | 189,865 |  |  | (4,906 | )
| CLOs |  | 14,243 |  |  | (7 | ) |  | 3,568 |  |  | (72 | ) |  | 17,811 |  |  | (79 | )
| Equity securities |  | 226 |  |  | (2 | ) |  | 431 |  |  | (14 | ) |  | 657 |  |  | (16 | )
| Total investment portfolio |  | $ | 1,667,170 |  |  | $ | (9,357 | ) |  | $ | 752,693 |  |  | $ | (22,206 | ) |  | $ | 2,419,863 |  |  | $ | (31,563 | )
| Table | 5.3b |  |  |  |  |  |  |  |  |  |  |  |
Investments unrealized losses - prior year | December 31, 2016 |  | Less Than 12 Months |  | 12 Months or Greater |  | Total
(In thousands) |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
| U.S. Treasury securities and obligations of U.S. government corporations and agencies |  | $ | 48,642 |  |  | $ | (724 | ) |  | $ | — |  |  | $ | — |  |  | $ | 48,642 |  |  | $ | (724 | )
| Obligations of U.S. states and political subdivisions |  | 1,136,676 |  |  | (24,918 | ) |  | 13,681 |  |  | (507 | ) |  | 1,150,357 |  |  | (25,425 | )
| Corporate debt securities |  | 915,777 |  |  | (16,771 | ) |  | 35,769 |  |  | (1,839 | ) |  | 951,546 |  |  | (18,610 | )
| ABS |  | 3,366 |  |  | (28 | ) |  | 656 |  |  | — |  |  | 4,022 |  |  | (28 | )
| RMBS |  | 46,493 |  |  | (857 | ) |  | 171,326 |  |  | (6,769 | ) |  | 217,819 |  |  | (7,626 | )
| CMBS |  | 205,545 |  |  | (7,529 | ) |  | 38,587 |  |  | (465 | ) |  | 244,132 |  |  | (7,994 | )
| CLOs |  | 13,278 |  |  | (73 | ) |  | 34,760 |  |  | (129 | ) |  | 48,038 |  |  | (202 | )
| Equity securities |  | 568 |  |  | (15 | ) |  | 137 |  |  | (9 | ) |  | 705 |  |  | (24 | )
| Total investment portfolio |  | $ | 2,370,345 |  |  | $ | (50,915 | ) |  | $ | 294,916 |  |  | $ | (9,718 | ) |  | $ | 2,665,261 |  |  | $ | (60,633 | )
For those securities in an unrealized loss position, the length of time the securities were in such a position, is measured by their month-end fair values. The unrealized losses in all categories of our investments as of December 31, 2017 and 2016 were primarily caused by changes in interest rates between the time of purchase and the respective year end. There were 586 and 607 securities in an unrealized loss position as of December 31, 2017 and 2016, respectively. As of December 31, 2017, the fair value as a percent of amortized cost of the securities in an unrealized loss position was 99% and approximately 27% of the securities in an unrealized loss position were backed by the U.S. Government. The source of net investment income is shown in Table 5.4 below.
| Table | 5.4 |  |  |  |  |  |
Investment income by source | (In thousands) |  | 2017 |  | 2016 |  | 2015
Fixed income |  | $ | 122,105 |  |  | $ | 112,513 |  |  | $ | 105,882 |
| Equity securities |  | 206 |  |  | 182 |  |  | 208 |
| Cash equivalents |  | 1,447 |  |  | 754 |  |  | 191 |
| Other |  | 620 |  |  | 433 |  |  | 455 |
| Investment income |  | 124,378 |  |  | 113,882 |  |  | 106,736 |
| Investment expenses |  | (3,507 | ) |  | (3,216 | ) |  | (2,995 | )
| Net investment income |  | $ | 120,871 |  |  | $ | 110,666 |  |  | $ | 103,741 |
For the years ended December 31, 2017, 2016, and 2015, there were no OTTI losses in earnings. The net realized investment gains (table 5.5) and the change in unrealized gains (losses) of investments (table 5.6) are shown below.
| Table | 5.5 |  |  |  |  |  |
Net realized investment gains | (In thousands) |  | 2017 |  | 2016 |  | 2015
Fixed income |  | $ | 228 |  |  | $ | 5,310 |  |  | $ | 28,335 |
| Equity securities |  | 21 |  |  | 3,622 |  |  | 26 |
| Other |  | — |  |  | — |  |  | — |
| Total net realized investment gains |  | $ | 249 |  |  | $ | 8,932 |  |  | $ | 28,361 |
| Table | 5.6 |  |  |  |  |  |
Change in unrealized gains (losses) | (In thousands) |  | 2017 |  | 2016 |  | 2015
Fixed income |  | $ | 69,026 |  |  | $ | (5,403 | ) |  | $ | (33,687 | )
Equity securities |  | 39 |  |  | (36 | ) |  | (32 | )
| Other |  | (13 | ) |  | 14 |  |  | 1 |
| Total increase (decrease) in unrealized gains/losses |  | $ | 69,052 |  |  | $ | (5,425 | ) |  | $ | (33,718 | )
Gross realized gains and losses on investments are shown in Table 5.7 below.
| Table | 5.7 |  |  |  |  |  |
Gross realized investment gains | (In thousands) |  | 2017 |  | 2016 |  | 2015
Gross realized gains |  | $ | 1,599 |  |  | $ | 11,909 |  |  | $ | 30,039 |
| Gross realized losses |  | (1,350 | ) |  | (2,977 | ) |  | (1,678 | )
| Net realized gains on securities |  | $ | 249 |  |  | $ | 8,932 |  |  | $ | 28,361 |

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