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v3.22.1

Investments (Tables) | 3 Months Ended
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Mar. 31, 2022
Investments, Debt and Equity Securities [Abstract] |
Schedule of investments available for sale | Investments available for sale consist of the following:
March 31, 2022 (In thousands) |  | Amortized Cost |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value
U.S. Treasury securities |  | $ | 437,450 |  |  | $ | 368 |  |  | $ | (14,178) |  |  | $ | 423,640 |
U.S. agency mortgage-backed securities |  | 902,741 |  |  | 689 |  |  | (48,655) |  |  | 854,775 |
Municipal debt securities (1) |  | 530,839 |  |  | 3,836 |  |  | (22,490) |  |  | 512,185 |
Non-U.S. government securities |  | 73,097 |  |  | 1,411 |  |  | (2,765) |  |  | 71,743 |
Corporate debt securities (2) |  | 1,339,172 |  |  | 2,845 |  |  | (58,373) |  |  | 1,283,644 |
Residential and commercial mortgage securities |  | 565,116 |  |  | 1,168 |  |  | (27,414) |  |  | 538,870 |
Asset-backed securities |  | 604,516 |  |  | 361 |  |  | (10,426) |  |  | 594,451 |
Money market funds |  | 383,597 |  |  | — |  |  | — |  |  | 383,597 |
Total investments available for sale |  | $ | 4,836,528 |  |  | $ | 10,678 |  |  | $ | (184,301) |  |  | $ | 4,662,905 |
December 31, 2021 (In thousands) |  | Amortized Cost |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value
U.S. Treasury securities |  | $ | 447,926 |  |  | $ | 3,833 |  |  | $ | (2,966) |  |  | $ | 448,793 |
U.S. agency securities |  | 5,501 |  |  | 3 |  |  | — |  |  | 5,504 |
U.S. agency mortgage-backed securities |  | 1,005,611 |  |  | 13,365 |  |  | (10,113) |  |  | 1,008,863 |
Municipal debt securities (1) |  | 598,764 |  |  | 30,122 |  |  | (1,287) |  |  | 627,599 |
Non-U.S. government securities |  | 77,366 |  |  | 3,232 |  |  | (855) |  |  | 79,743 |
Corporate debt securities (2) |  | 1,428,645 |  |  | 36,067 |  |  | (9,465) |  |  | 1,455,247 |
Residential and commercial mortgage securities |  | 541,638 |  |  | 10,452 |  |  | (6,667) |  |  | 545,423 |
Asset-backed securities |  | 582,144 |  |  | 1,673 |  |  | (2,114) |  |  | 581,703 |
Money market funds |  | 210,012 |  |  | — |  |  | — |  |  | 210,012 |
Total investments available for sale |  | $ | 4,897,607 |  |  | $ | 98,747 |  |  | $ | (33,467) |  |  | $ | 4,962,887 |
|  | March 31, |  | December 31,
(1) The following table summarizes municipal debt securities as of: |  | 2022 |  | 2021
Special revenue bonds |  | 78.1 | % |  | 77.1 | %
General obligation bonds |  | 19.6 |  |  | 20.5 |
Certificate of participation bonds |  | 1.9 |  |  | 1.9 |
Tax allocation bonds |  | 0.3 |  |  | 0.5 |
Special tax bonds |  | 0.1 |  |  | — |
Total |  | 100.0 | % |  | 100.0 | %
|  | March 31, |  | December 31,
(2) The following table summarizes corporate debt securities as of: |  | 2022 |  | 2021
Financial |  | 38.4 | % |  | 33.7 | %
Consumer, non-cyclical |  | 18.0 |  |  | 19.8 |
Communications |  | 9.7 |  |  | 11.4 |
Industrial |  | 6.9 |  |  | 7.0 |
Consumer, cyclical |  | 6.4 |  |  | 7.0 |
Energy |  | 6.0 |  |  | 6.0 |
Technology |  | 6.0 |  |  | 6.8 |
Utilities |  | 5.7 |  |  | 4.6 |
Basic materials |  | 2.5 |  |  | 3.7 |
Government |  | 0.4 |  |  | — |
Total |  | 100.0 | % |  | 100.0 | %
Schedule of amortized cost and fair value of investments available for sale by contractual maturity | The amortized cost and fair value of investments available for sale at March 31, 2022, by contractual maturity, are shown below. Expected 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 U.S. agency mortgage-backed securities, residential and commercial mortgage securities and asset-backed securities provide for periodic payments throughout their lives, they are listed below in separate categories.
(In thousands) |  | Amortized Cost |  | Fair Value
U.S. Treasury securities: |  |  |  |
Due in 1 year |  | $ | 88,143 |  |  | $ | 87,953 |
Due after 1 but within 5 years |  | 302,905 |  |  | 291,389 |
Due after 5 but within 10 years |  | 42,566 |  |  | 40,826 |
Due after 10 years |  | 3,836 |  |  | 3,472 |
Subtotal |  | 437,450 |  |  | 423,640 |
Municipal debt securities: |  |  |  |
Due in 1 year |  | 1,659 |  |  | 1,665 |
Due after 1 but within 5 years |  | 119,337 |  |  | 119,368 |
Due after 5 but within 10 years |  | 164,952 |  |  | 162,102 |
Due after 10 years |  | 244,891 |  |  | 229,050 |
Subtotal |  | 530,839 |  |  | 512,185 |
Non-U.S. government securities: |  |  |  |
Due in 1 year |  | 427 |  |  | 430 |
Due after 1 but within 5 years |  | 38,669 |  |  | 39,429 |
Due after 5 but within 10 years |  | 8,878 |  |  | 9,073 |
Due after 10 years |  | 25,123 |  |  | 22,811 |
Subtotal |  | 73,097 |  |  | 71,743 |
Corporate debt securities: |  |  |  |
Due in 1 year |  | 214,080 |  |  | 214,038 |
Due after 1 but within 5 years |  | 563,001 |  |  | 551,936 |
Due after 5 but within 10 years |  | 424,445 |  |  | 394,068 |
Due after 10 years |  | 137,646 |  |  | 123,602 |
Subtotal |  | 1,339,172 |  |  | 1,283,644 |
U.S. agency mortgage-backed securities |  | 902,741 |  |  | 854,775 |
Residential and commercial mortgage securities |  | 565,116 |  |  | 538,870 |
Asset-backed securities |  | 604,516 |  |  | 594,451 |
Money market funds |  | 383,597 |  |  | 383,597 |
Total investments available for sale |  | $ | 4,836,528 |  |  | $ | 4,662,905 |
Schedule of realized gross gains and losses on sale of investments available for sale | The components of realized investment (losses) gains, net on the condensed consolidated statements of comprehensive income were as follows:
|  |  |  | Three Months Ended March 31,
(In thousands) |  |  |  |  |  | 2022 |  | 2021
Realized gross gains |  |  |  |  |  | $ | 12,576 |  |  | $ | 750 |
Realized gross losses |  |  |  |  |  | (13,091) |  |  | (109) |
Impairment loss |  |  |  |  |  | (6,837) |  |  | — |
Schedule of fair value of investments in an unrealized loss position and related unrealized losses | The fair value of investments available for sale in an unrealized loss position and the related unrealized losses for which no allowance for credit loss has been recorded were as follows:
|  | Less than 12 months |  | 12 months or more |  | Total
March 31, 2022 (In thousands) |  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses
U.S. Treasury securities |  | $ | 303,598 |  |  | $ | (10,257) |  |  | $ | 67,009 |  |  | $ | (3,921) |  |  | $ | 370,607 |  |  | $ | (14,178) |
U.S. agency mortgage-backed securities |  | 614,532 |  |  | (31,273) |  |  | 191,880 |  |  | (17,382) |  |  | 806,412 |  |  | (48,655) |
Municipal debt securities |  | 301,894 |  |  | (21,844) |  |  | 6,694 |  |  | (646) |  |  | 308,588 |  |  | (22,490) |
Non-U.S. government securities |  | 16,001 |  |  | (915) |  |  | 14,356 |  |  | (1,850) |  |  | 30,357 |  |  | (2,765) |
Corporate debt securities |  | 833,120 |  |  | (42,805) |  |  | 125,507 |  |  | (15,568) |  |  | 958,627 |  |  | (58,373) |
Residential and commercial mortgage securities |  | 356,130 |  |  | (18,432) |  |  | 91,270 |  |  | (8,982) |  |  | 447,400 |  |  | (27,414) |
Asset-backed securities |  | 493,873 |  |  | (9,880) |  |  | 29,987 |  |  | (546) |  |  | 523,860 |  |  | (10,426) |
Total |  | $ | 2,919,148 |  |  | $ | (135,406) |  |  | $ | 526,703 |  |  | $ | (48,895) |  |  | $ | 3,445,851 |  |  | $ | (184,301) |
|  | Less than 12 months |  | 12 months or more |  | Total
December 31, 2021 (In thousands) |  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses
U.S. Treasury securities |  | $ | 207,122 |  |  | $ | (2,170) |  |  | $ | 28,012 |  |  | $ | (796) |  |  | $ | 235,134 |  |  | $ | (2,966) |
U.S. agency mortgage-backed securities |  | 582,108 |  |  | (9,414) |  |  | 26,131 |  |  | (699) |  |  | 608,239 |  |  | (10,113) |
Municipal debt securities |  | 91,719 |  |  | (1,281) |  |  | 312 |  |  | (6) |  |  | 92,031 |  |  | (1,287) |
Non-U.S. government securities |  | 22,986 |  |  | (855) |  |  | — |  |  | — |  |  | 22,986 |  |  | (855) |
Corporate debt securities |  | 522,120 |  |  | (7,200) |  |  | 46,875 |  |  | (2,265) |  |  | 568,995 |  |  | (9,465) |
Residential and commercial mortgage securities |  | 268,617 |  |  | (5,200) |  |  | 38,256 |  |  | (1,467) |  |  | 306,873 |  |  | (6,667) |
Asset-backed securities |  | 339,137 |  |  | (1,954) |  |  | 13,101 |  |  | (160) |  |  | 352,238 |  |  | (2,114) |
Total |  | $ | 2,033,809 |  |  | $ | (28,074) |  |  | $ | 152,687 |  |  | $ | (5,393) |  |  | $ | 2,186,496 |  |  | $ | (33,467) |
Schedule of net investment income | Net investment income consists of:
|  |  |  | Three Months Ended March 31,
(In thousands) |  |  |  |  |  | 2022 |  | 2021
Fixed maturities |  |  |  |  |  | $ | 26,223 |  |  | $ | 23,024 |
Short-term investments |  |  |  |  |  | 44 |  |  | 81 |
Gross investment income |  |  |  |  |  | 26,267 |  |  | 23,105 |
Investment expenses |  |  |  |  |  | (1,587) |  |  | (1,317) |
Net investment income |  |  |  |  |  | $ | 24,680 |  |  | $ | 21,788 |

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