XML 20 R13.htm IDEA: XBRL DOCUMENT
v3.24.2

Debt Securities | 6 Months Ended
--- | ---
Jun. 30, 2024
Debt Securities, Available-for-Sale [Abstract] |
Debt Securities | Note 3 – Debt Securities Investments in debt securities, classified as available-for-sale, are as follows:
|  | Amortized |  |  | Gross unrealized |  |  | Estimated |
(in millions) |  | cost |  |  | Gains |  |  | Losses |  |  | fair value |
June 30, 2024 |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury bonds |  | $ | 163.5 |  |  | $ | 0.1 |  |  | $ | (6.1 | ) |  | $ | 157.5 |
Municipal bonds |  |  | 1,382.3 |  |  |  | 5.9 |  |  |  | (143.2 | ) |  |  | 1,245.0 |
Foreign government bonds |  |  | 223.4 |  |  |  | 0.4 |  |  |  | (10.1 | ) |  |  | 213.7 |
Governmental agency bonds |  |  | 213.7 |  |  |  | — |  |  |  | (13.9 | ) |  |  | 199.8 |
Governmental agency mortgage-backed securities |  |  | 4,315.9 |  |  |  | 1.6 |  |  |  | (575.4 | ) |  |  | 3,742.1 |
U.S. corporate debt securities |  |  | 1,095.7 |  |  |  | 4.0 |  |  |  | (58.1 | ) |  |  | 1,041.6 |
Foreign corporate debt securities |  |  | 498.2 |  |  |  | 3.6 |  |  |  | (20.8 | ) |  |  | 481.0 |
|  | $ | 7,892.7 |  |  | $ | 15.6 |  |  | $ | (827.6 | ) |  | $ | 7,080.7 |
December 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury bonds |  | $ | 203.3 |  |  | $ | 0.5 |  |  | $ | (4.5 | ) |  | $ | 199.3 |
Municipal bonds |  |  | 1,373.7 |  |  |  | 8.8 |  |  |  | (136.7 | ) |  |  | 1,245.8 |
Foreign government bonds |  |  | 228.4 |  |  |  | 1.4 |  |  |  | (10.5 | ) |  |  | 219.3 |
Governmental agency bonds |  |  | 207.7 |  |  |  | 0.2 |  |  |  | (12.5 | ) |  |  | 195.4 |
Governmental agency mortgage-backed securities |  |  | 4,396.2 |  |  |  | 6.3 |  |  |  | (526.8 | ) |  |  | 3,875.7 |
U.S. corporate debt securities |  |  | 1,007.0 |  |  |  | 6.6 |  |  |  | (55.2 | ) |  |  | 958.4 |
Foreign corporate debt securities |  |  | 478.9 |  |  |  | 5.8 |  |  |  | (21.1 | ) |  |  | 463.6 |
|  | $ | 7,895.2 |  |  | $ | 29.6 |  |  | $ | (767.3 | ) |  | $ | 7,157.5 |
Sales of debt securities resulted in realized gains of $0.3 million and $1.1 million, realized losses of $1.3 million and $5.5 million and proceeds of $137.4 million and $361.9 million for the three and six months ended June 30, 2024, respectively. Sales of debt securities resulted in realized gains of $0.7 million and $6.2 million, realized losses of $3.5 million and $13.5 million and proceeds of $187.5 million and $903.0 million for the three and six months ended June 30, 2023, respectively. Investments in debt securities in an unrealized loss position, and their respective length of time in such position, are as follows:
|  | Less than 12 months |  |  | 12 months or longer |  |  | Total |
(in millions) |  | Estimated fair value |  |  | Unrealized losses |  |  | Estimated fair value |  |  | Unrealized losses |  |  | Estimated fair value |  |  | Unrealized losses |
June 30, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury bonds |  | $ | 94.9 |  |  | $ | (1.6 | ) |  | $ | 55.7 |  |  | $ | (4.5 | ) |  | $ | 150.6 |  |  | $ | (6.1 | )
Municipal bonds |  |  | 99.3 |  |  |  | (1.4 | ) |  |  | 1,010.8 |  |  |  | (141.8 | ) |  |  | 1,110.1 |  |  |  | (143.2 | )
Foreign government bonds |  |  | 57.3 |  |  |  | (0.1 | ) |  |  | 81.8 |  |  |  | (10.0 | ) |  |  | 139.1 |  |  |  | (10.1 | )
Governmental agency bonds |  |  | 82.5 |  |  |  | (0.7 | ) |  |  | 117.3 |  |  |  | (13.2 | ) |  |  | 199.8 |  |  |  | (13.9 | )
Governmental agency mortgage-backed securities |  |  | 363.7 |  |  |  | (3.7 | ) |  |  | 3,283.7 |  |  |  | (571.7 | ) |  |  | 3,647.4 |  |  |  | (575.4 | )
U.S. corporate debt securities |  |  | 161.3 |  |  |  | (1.9 | ) |  |  | 587.9 |  |  |  | (56.2 | ) |  |  | 749.2 |  |  |  | (58.1 | )
Foreign corporate debt securities |  |  | 68.5 |  |  |  | (0.8 | ) |  |  | 250.2 |  |  |  | (20.0 | ) |  |  | 318.7 |  |  |  | (20.8 | )
|  | $ | 927.5 |  |  | $ | (10.2 | ) |  | $ | 5,387.4 |  |  | $ | (817.4 | ) |  | $ | 6,314.9 |  |  | $ | (827.6 | )
December 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury bonds |  | $ | 8.2 |  |  | $ | (0.1 | ) |  | $ | 55.4 |  |  | $ | (4.4 | ) |  | $ | 63.6 |  |  | $ | (4.5 | )
Municipal bonds |  |  | 107.4 |  |  |  | (0.9 | ) |  |  | 956.8 |  |  |  | (135.8 | ) |  |  | 1,064.2 |  |  |  | (136.7 | )
Foreign government bonds |  |  | 33.3 |  |  |  | (0.1 | ) |  |  | 101.4 |  |  |  | (10.4 | ) |  |  | 134.7 |  |  |  | (10.5 | )
Governmental agency bonds |  |  | 0.4 |  |  |  | — |  |  |  | 118.9 |  |  |  | (12.5 | ) |  |  | 119.3 |  |  |  | (12.5 | )
Governmental agency mortgage-backed securities |  |  | 338.3 |  |  |  | (6.6 | ) |  |  | 3,225.3 |  |  |  | (520.2 | ) |  |  | 3,563.6 |  |  |  | (526.8 | )
U.S. corporate debt securities |  |  | 45.1 |  |  |  | (0.4 | ) |  |  | 602.5 |  |  |  | (54.8 | ) |  |  | 647.6 |  |  |  | (55.2 | )
Foreign corporate debt securities |  |  | 19.3 |  |  |  | (0.1 | ) |  |  | 267.3 |  |  |  | (21.0 | ) |  |  | 286.6 |  |  |  | (21.1 | )
|  | $ | 552.0 |  |  | $ | (8.2 | ) |  | $ | 5,327.6 |  |  | $ | (759.1 | ) |  | $ | 5,879.6 |  |  | $ | (767.3 | )
Based on the Company’s review of its debt securities in an unrealized loss position it determined that the losses were due to non-credit factors and, therefore, it does not consider these securities to be credit impaired at June 30, 2024. As of June 30, 2024, the Company did not intend to sell any debt securities in an unrealized loss position and it is not more likely than not that the Company will be required to sell any debt securities before recovery of their amortized cost basis. In determining credit losses on its debt securities in an unrealized loss position, the Company considers certain factors that may include, among others, severity of the unrealized loss, security type, industry sector, credit rating, yield to maturity, profitability and stock performance. In the normal course of operations, the Company may seek to optimize its investment portfolio and prospective investment returns by selling certain debt securities in an unrealized loss (or gain) position for which such unrealized loss or gain has been deferred in other comprehensive income. Sales of such debt securities could result in the realization of material gains or losses recorded in net income in the period the debt securities are sold. Investments in debt securities at June 30, 2024, by contractual maturities, are as follows:
(in millions) |  | Due in one year or less |  |  | Due after one through five years |  |  | Due after five through ten years |  |  | Due after ten years |  |  | Total |
U.S. Treasury bonds |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amortized cost |  | $ | 6.7 |  |  | $ | 137.0 |  |  | $ | 4.7 |  |  | $ | 15.1 |  |  | $ | 163.5 |
Estimated fair value |  | $ | 6.7 |  |  | $ | 132.3 |  |  | $ | 4.7 |  |  | $ | 13.8 |  |  | $ | 157.5 |
Municipal bonds |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amortized cost |  |  | 13.1 |  |  |  | 403.4 |  |  |  | 462.0 |  |  |  | 503.8 |  |  |  | 1,382.3 |
Estimated fair value |  |  | 12.9 |  |  |  | 370.2 |  |  |  | 393.3 |  |  |  | 468.6 |  |  |  | 1,245.0 |
Foreign government bonds |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amortized cost |  |  | 8.9 |  |  |  | 139.2 |  |  |  | 68.7 |  |  |  | 6.6 |  |  |  | 223.4 |
Estimated fair value |  |  | 8.8 |  |  |  | 138.9 |  |  |  | 60.2 |  |  |  | 5.8 |  |  |  | 213.7 |
Governmental agency bonds |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amortized cost |  |  | 36.3 |  |  |  | 130.3 |  |  |  | 1.5 |  |  |  | 45.6 |  |  |  | 213.7 |
Estimated fair value |  |  | 35.6 |  |  |  | 126.1 |  |  |  | 1.4 |  |  |  | 36.7 |  |  |  | 199.8 |
U.S. corporate debt securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amortized cost |  |  | 18.7 |  |  |  | 723.7 |  |  |  | 272.6 |  |  |  | 80.7 |  |  |  | 1,095.7 |
Estimated fair value |  |  | 18.6 |  |  |  | 686.5 |  |  |  | 266.5 |  |  |  | 70.0 |  |  |  | 1,041.6 |
Foreign corporate debt securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amortized cost |  |  | 28.7 |  |  |  | 312.5 |  |  |  | 125.0 |  |  |  | 32.0 |  |  |  | 498.2 |
Estimated fair value |  |  | 28.2 |  |  |  | 302.5 |  |  |  | 121.9 |  |  |  | 28.4 |  |  |  | 481.0 |
Total debt securities (excluding mortgage-backed securities) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amortized cost |  | $ | 112.4 |  |  | $ | 1,846.1 |  |  | $ | 934.5 |  |  | $ | 683.8 |  |  | $ | 3,576.8 |
Estimated fair value |  | $ | 110.8 |  |  | $ | 1,756.5 |  |  | $ | 848.0 |  |  | $ | 623.3 |  |  | $ | 3,338.6 |
Total mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amortized cost |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 4,315.9 |
Estimated fair value |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 3,742.1 |
Total debt securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amortized cost |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 7,892.7 |
Estimated fair value |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 7,080.7 |
Mortgage-backed securities, which include contractual terms to maturity, are not categorized by contractual maturity as borrowers may have the right to call or prepay obligations with, or without, call or prepayment penalties. The composition of the debt securities portfolio at June 30, 2024, by credit rating, is as follows:
|  | A- or higher |  |  | BBB+ to BBB- |  |  | Non-Investment Grade |  |  | Total |
(dollars in millions) |  | Estimated fair value |  |  | Percentage |  |  | Estimated fair value |  |  | Percentage |  |  | Estimated fair value |  |  | Percentage |  |  | Estimated fair value |
U.S. Treasury bonds |  | $ | 157.5 |  |  |  | 100.0 | % |  | $ | — |  |  |  | — | % |  | $ | — |  |  |  | — | % |  | $ | 157.5 |
Municipal bonds |  |  | 1,220.9 |  |  |  | 98.1 |  |  |  | 22.4 |  |  |  | 1.8 |  |  |  | 1.7 |  |  |  | 0.1 |  |  |  | 1,245.0 |
Foreign government bonds |  |  | 208.4 |  |  |  | 97.5 |  |  |  | 4.6 |  |  |  | 2.2 |  |  |  | 0.7 |  |  |  | 0.3 |  |  |  | 213.7 |
Governmental agency bonds |  |  | 199.8 |  |  |  | 100.0 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 199.8 |
Governmental agency mortgage- backed securities |  |  | 3,742.1 |  |  |  | 100.0 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 3,742.1 |
U.S. corporate debt securities |  |  | 494.8 |  |  |  | 47.5 |  |  |  | 386.0 |  |  |  | 37.1 |  |  |  | 160.8 |  |  |  | 15.4 |  |  |  | 1,041.6 |
Foreign corporate debt securities |  |  | 250.9 |  |  |  | 52.1 |  |  |  | 190.8 |  |  |  | 39.7 |  |  |  | 39.3 |  |  |  | 8.2 |  |  |  | 481.0 |
|  | $ | 6,274.4 |  |  |  | 88.6 | % |  | $ | 603.8 |  |  |  | 8.5 | % |  | $ | 202.5 |  |  |  | 2.9 | % |  | $ | 7,080.7 |
Included in debt securities at June 30, 2024, were bank loans totaling $120.6 million, of which $110.8 million were non-investment grade; high yield corporate debt securities totaling $84.5 million, all of which were non-investment grade; and emerging market debt securities totaling $40.9 million, of which $5.5 million were non-investment grade. The composition of the debt securities portfolio in an unrealized loss position at June 30, 2024, by credit rating, is as follows:
|  | A- or higher |  |  | BBB+ to BBB- |  |  | Non-Investment Grade |  |  | Total |
(dollars in millions) |  | Estimated fair value |  |  | Percentage |  |  | Estimated fair value |  |  | Percentage |  |  | Estimated fair value |  |  | Percentage |  |  | Estimated fair value |
U.S. Treasury bonds |  | $ | 150.6 |  |  |  | 100.0 | % |  | $ | — |  |  |  | — | % |  | $ | — |  |  |  | — | % |  | $ | 150.6 |
Municipal bonds |  |  | 1,092.5 |  |  |  | 98.4 |  |  |  | 17.3 |  |  |  | 1.6 |  |  |  | 0.3 |  |  |  | — |  |  |  | 1,110.1 |
Foreign government bonds |  |  | 137.2 |  |  |  | 98.6 |  |  |  | 1.2 |  |  |  | 0.9 |  |  |  | 0.7 |  |  |  | 0.5 |  |  |  | 139.1 |
Governmental agency bonds |  |  | 199.8 |  |  |  | 100.0 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 199.8 |
Governmental agency mortgage- backed securities |  |  | 3,647.4 |  |  |  | 100.0 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 3,647.4 |
U.S. corporate debt securities |  |  | 400.7 |  |  |  | 53.5 |  |  |  | 295.5 |  |  |  | 39.4 |  |  |  | 53.0 |  |  |  | 7.1 |  |  |  | 749.2 |
Foreign corporate debt securities |  |  | 184.7 |  |  |  | 58.0 |  |  |  | 117.7 |  |  |  | 36.9 |  |  |  | 16.3 |  |  |  | 5.1 |  |  |  | 318.7 |
|  | $ | 5,812.9 |  |  |  | 92.1 | % |  | $ | 431.7 |  |  |  | 6.8 | % |  | $ | 70.3 |  |  |  | 1.1 | % |  | $ | 6,314.9 |
Debt securities in an unrealized loss position at June 30, 2024, included bank loans totaling $20.7 million, of which $19.6 million were non-investment grade; high yield corporate debt securities totaling $46.1 million, all of which were non-investment grade; and emerging market debt securities totaling $32.5 million, of which $4.3 million were non-investment grade. The credit ratings in the above tables reflect published ratings obtained from globally recognized securities rating agencies. If a security was rated differently among the rating agencies, the lowest rating was selected. Governmental agency mortgage-backed securities are not rated by any of the ratings agencies; however, these securities have been included in the above table in the “A- or higher” rating category because the payments of principal and interest are guaranteed by the governmental agency that issued the security.

X
- References No definition available. + Details
Name: | us-gaap_AvailableForSaleSecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 940 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/940-320/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph b -Publisher SEC Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/320/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 320 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481800/320-10-50-10 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6B -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6B Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6B -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6B Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 942 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/942-320/tableOfContent + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration