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Investments | 12 Months Ended
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Dec. 31, 2024
Investments [Abstract] |
Investments | Investments FIXED INCOME SECURITIES Our fixed income securities consisted of the following as of December 31, 2024 and 2023:
Details of fixed income investment securities by category as of December 31, 2024
Table | 5.1a |  |  |  |  |  |  |  |
(In thousands) |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
U.S. Treasury securities and obligations of U.S. government corporations and agencies |  | $ | 265,349 |  |  | $ | 231 |  |  | $ | (5,087) |  |  | $ | 260,493 |
Obligations of U.S. states and political subdivisions |  | 2,065,953 |  |  | 2,331 |  |  | (192,789) |  |  | 1,875,495 |
Corporate debt securities |  | 2,857,627 |  |  | 12,593 |  |  | (112,839) |  |  | 2,757,381 |
ABS |  | 155,594 |  |  | 2,157 |  |  | (1,234) |  |  | 156,517 |
RMBS |  | 373,485 |  |  | 2,103 |  |  | (25,528) |  |  | 350,060 |
CMBS |  | 243,840 |  |  | 21 |  |  | (7,990) |  |  | 235,871 |
CLOs |  | 199,773 |  |  | 286 |  |  | — |  |  | 200,059 |
Foreign government debt |  | 4,487 |  |  | — |  |  | (689) |  |  | 3,798 |
Commercial paper |  | 12,015 |  |  | — |  |  | — |  |  | 12,015 |
Total fixed income securities |  | $ | 6,178,123 |  |  | $ | 19,722 |  |  | $ | (346,156) |  |  | $ | 5,851,689 |
Details of fixed income investment securities by category as of December 31, 2023
Table | 5.1b |  |  |  |  |  |  |  |
(In thousands) |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
U.S. Treasury securities and obligations of U.S. government corporations and agencies |  | $ | 167,995 |  |  | $ | 51 |  |  | $ | (6,364) |  |  | $ | 161,682 |
Obligations of U.S. states and political subdivisions |  | 2,092,754 |  |  | 5,159 |  |  | (189,835) |  |  | 1,908,078 |
Corporate debt securities |  | 2,626,401 |  |  | 17,391 |  |  | (128,211) |  |  | 2,515,581 |
ABS |  | 173,256 |  |  | 1,292 |  |  | (3,275) |  |  | 171,273 |
RMBS |  | 347,132 |  |  | 4,297 |  |  | (20,656) |  |  | 330,773 |
CMBS |  | 293,204 |  |  | 5 |  |  | (15,752) |  |  | 277,457 |
CLOs |  | 327,467 |  |  | 37 |  |  | (1,408) |  |  | 326,096 |
Foreign government debt |  | 4,486 |  |  | — |  |  | (643) |  |  | 3,843 |
Commercial paper |  | $ | 28,327 |  |  | $ | 3 |  |  | $ | — |  |  | $ | 28,330 |
Total fixed income securities |  | $ | 6,061,022 |  |  | $ | 28,235 |  |  | $ | (366,144) |  |  | $ | 5,723,113 |
We had $12.2 million of investments at fair value on deposit with various states as of December 31, 2024 and 2023, in accordance with regulatory requirements of those state insurance departments. In connection with our insurance and reinsurance activities within MAC and MIC, we are required to maintain assets in trusts for the benefit of contractual counterparties, which had investments at fair value of $199.9 million and $156.9 million at December 31, 2024 and 2023, respectively. The increase is primarily due to an increase in collateral required as the risk in force covered by these insurance and reinsurance activities has increased. The amortized cost and fair values of fixed income securities at December 31, 2024, by contractual maturity, are shown in table 5.2 below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay 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 in separate categories.
Fixed income securities maturity schedule
Table | 5.2 |  |  |  |
|  | December 31, 2024
(In thousands) |  | Amortized Cost |  | Fair Value
Due in one year or less |  | $ | 729,851 |  |  | $ | 728,644 |
Due after one year through five years |  | 1,669,360 |  |  | 1,631,156 |
Due after five years through ten years |  | 1,771,814 |  |  | 1,656,007 |
Due after ten years |  | 1,034,406 |  |  | 893,375 |
|  | 5,205,431 |  |  | 4,909,182 |
ABS |  | 155,594 |  |  | 156,517 |
RMBS |  | 373,485 |  |  | 350,060 |
CMBS |  | 243,840 |  |  | 235,871 |
CLOs |  | 199,773 |  |  | 200,059 |
Total as of December 31, 2024 |  | $ | 6,178,123 |  |  | $ | 5,851,689 |
EQUITY SECURITIES The cost and fair value of investments in equity securities as of December 31, 2024 and December 31, 2023 are shown in tables 5.3a and 5.3b below.
Details of equity investment securities as of December 31, 2024
Table | 5.3a |  |  |  |  |  |  |  |
(In thousands) |  | Cost |  | Fair value gains |  | Fair value losses |  | Fair Value
Equity securities |  | $ | 16,146 |  |  | $ | 8 |  |  | $ | (1,392) |  |  | $ | 14,762 |
Details of equity investment securities as of December 31, 2023
Table | 5.3b |  |  |  |  |  |  |  |
(In thousands) |  | Cost |  | Fair value gains |  | Fair value losses |  | Fair Value
Equity securities |  | $ | 16,025 |  |  | $ | 5 |  |  | $ | (1,259) |  |  | $ | 14,771 |
NET GAINS (LOSSES) ON INVESTMENTS AND OTHER FINANCIAL INSTRUMENTS The net gains (losses) on investments and other financial instruments and the proceeds from the sale of fixed income securities classified as available-for-sale and equity securities are shown in table 5.4 below.
Details of net gains (losses) on investments and other financial instruments
Table | 5.4 |  |  |  |  |
(in thousands) | December 31, 2024 |  | December 31, 2023 |  | December 31, 2022
Fixed income securities: |  |  |  |  |
Gains on sales | $ | 1,114 |  |  | $ | 3,071 |  |  | $ | 7,152 |
Losses on sales | (8,045) |  |  | (17,620) |  |  | (15,477) |
Impairments | — |  |  | — |  |  | (1,415) |
Equity securities gains (losses): |  |  |  |  |
Gains (losses) on sales | — |  |  | — |  |  | (7) |
Changes in fair value | (130) |  |  | 530 |  |  | (2,013) |
Change in embedded derivative on Home Re Transactions (1) | (2,791) |  |  | (118) |  |  | 4,269 |
Other: |  |  |  |  |
Gains (losses) on sales | 16 |  |  | (1) |  |  | 2 |
Market adjustment | (10) |  |  | (3) |  |  | 26 |
Net gains (losses) on investments and other financial instruments | $ | (9,846) |  |  | $ | (14,141) |  |  | $ | (7,463) |
Proceeds from sales of fixed income securities | $ | 45,087 |  |  | $ | 375,788 |  |  | $ | 397,553 |
Proceeds from sales of equity securities | — |  |  | — |  |  | 97 |
(1) See Note 6 "Fair Value Measurements" for discussion of the embedded derivative on the Home Re Transactions. OTHER INVESTED ASSETS Our other invested assets balances includes an investment in Federal Home Loan Bank ("FHLB") stock that is carried at cost, which due to its nature approximates fair value. Ownership of FHLB stock provides access to a secured lending facility. UNREALIZED INVESTMENT LOSSES Tables 5.5a and 5.5b below summarize, for all available-for-sale investments in an unrealized loss position as of December 31, 2024 and December 31, 2023, the aggregate fair value and gross unrealized loss by the length of time those securities have been continuously in an unrealized loss position. The fair value amounts reported in tables 5.5a and 5.5b below are estimated using the process described in Note 6 - "Fair Value Measurements" to these consolidated financial statements.
Unrealized loss aging for securities by type and length of time as of December 31, 2024
Table | 5.5a |  |  |  |  |  |  |  |  |  |  |  |
|  | 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 |  | $ | 37,017 |  |  | $ | (437) |  |  | $ | 69,959 |  |  | $ | (4,650) |  |  | $ | 106,976 |  |  | $ | (5,087) |
Obligations of U.S. states and political subdivisions |  | 409,406 |  |  | (5,621) |  |  | 1,195,869 |  |  | (187,168) |  |  | 1,605,275 |  |  | (192,789) |
Corporate debt securities |  | 852,752 |  |  | (10,334) |  |  | 1,051,862 |  |  | (102,505) |  |  | 1,904,614 |  |  | (112,839) |
ABS |  | 20,090 |  |  | (184) |  |  | 49,640 |  |  | (1,050) |  |  | 69,730 |  |  | (1,234) |
RMBS |  | 171,654 |  |  | (5,498) |  |  | 151,893 |  |  | (20,030) |  |  | 323,547 |  |  | (25,528) |
CMBS |  | 77,567 |  |  | (1,774) |  |  | 151,188 |  |  | (6,216) |  |  | 228,755 |  |  | (7,990) |
Foreign government debt |  | — |  |  | — |  |  | 3,798 |  |  | (689) |  |  | 3,798 |  |  | (689) |
Total |  | $ | 1,568,486 |  |  | $ | (23,848) |  |  | $ | 2,674,209 |  |  | $ | (322,308) |  |  | $ | 4,242,695 |  |  | $ | (346,156) |
Unrealized loss aging for securities by type and length of time as of December 31, 2023
Table | 5.5b |  |  |  |  |  |  |  |  |  |  |  |
|  | 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 |  | $ | 26,550 |  |  | $ | (75) |  |  | $ | 98,359 |  |  | $ | (6,289) |  |  | $ | 124,909 |  |  | $ | (6,364) |
Obligations of U.S. states and political subdivisions |  | 275,727 |  |  | (3,622) |  |  | 1,200,533 |  |  | (186,213) |  |  | 1,476,260 |  |  | (189,835) |
Corporate debt securities |  | 270,956 |  |  | (6,060) |  |  | 1,604,021 |  |  | (122,151) |  |  | 1,874,977 |  |  | (128,211) |
ABS |  | 41,549 |  |  | (1,234) |  |  | 62,611 |  |  | (2,041) |  |  | 104,160 |  |  | (3,275) |
RMBS |  | 44,867 |  |  | (872) |  |  | 176,349 |  |  | (19,784) |  |  | 221,216 |  |  | (20,656) |
CMBS |  | 35,249 |  |  | (391) |  |  | 244,216 |  |  | (15,361) |  |  | 279,465 |  |  | (15,752) |
CLOs |  | — |  |  | — |  |  | 274,729 |  |  | (1,408) |  |  | 274,729 |  |  | (1,408) |
Foreign government debt |  | — |  |  | — |  |  | 3,843 |  |  | (643) |  |  | 3,843 |  |  | (643) |
Total |  | $ | 694,898 |  |  | $ | (12,254) |  |  | $ | 3,664,661 |  |  | $ | (353,890) |  |  | $ | 4,359,559 |  |  | $ | (366,144) |
The change in net unrealized gains (losses) of investments is shown in table 5.6 below.
Change in net unrealized gains (losses)
Table | 5.6 |  |  |  |  |  |
(In thousands) |  | 2024 |  | 2023 |  | 2022
Fixed income securities |  | $ | 11,481 |  |  | $ | 179,174 |  |  | $ | (707,005) |
There were 1,020 and 1,021 securities in an unrealized loss position as of December 31, 2024 and 2023, respectively. Based on current facts and circumstances, we believe the unrealized losses as of December 31, 2024 presented in table 5.5a above are not indicative of the ultimate collectability of the par value of the securities. The unrealized losses in all categories of our investments were primarily caused by an increase in prevailing interest rates. We also rely upon estimates of several credit and non-credit factors in our review and evaluation of individual investments to determine whether a credit impairment exists. All of the securities in an unrealized loss position are current with respect to their interest obligations. The source of net investment income is shown in table 5.7 below.
Net investment income
Table | 5.7 |  |  |  |  |  |
(In thousands) |  | 2024 |  | 2023 |  | 2022
Fixed income securities |  | $ | 230,524 |  |  | $ | 202,655 |  |  | $ | 166,306 |
Equity securities |  | 624 |  |  | 529 |  |  | 437 |
Cash equivalents |  | 18,498 |  |  | 16,111 |  |  | 5,049 |
Other |  | 31 |  |  | 44 |  |  | 51 |
Investment income |  | 249,677 |  |  | 219,339 |  |  | 171,843 |
Investment expenses |  | (5,037) |  |  | (4,599) |  |  | (4,367) |
Net investment income |  | $ | 244,640 |  |  | $ | 214,740 |  |  | $ | 167,476 |

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