XML 146 R13.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Note 6 - Investments Level 1 (Notes) | 12 Months Ended
--- | ---
Dec. 31, 2019
Investments [Abstract] |
Investments | Investments Available for Sale Securities Our available for sale securities within our investment portfolio consisted of the following as of the dates indicated:
| December 31, 2019
(In thousands) | Amortized Cost |  | Fair Value |  | Gross Unrealized Gains |  | Gross Unrealized Losses
Fixed-maturities available for sale: |  |  |  |  |  |  |
U.S. government and agency securities | $ | 198,613 |  |  | $ | 199,928 |  |  | $ | 2,048 |  |  | $ | 733 |
State and municipal obligations | 112,003 |  |  | 119,994 |  |  | 8,032 |  |  | 41 |
Corporate bonds and notes | 2,136,819 |  |  | 2,241,280 |  |  | 106,189 |  |  | 1,728 |
RMBS | 766,429 |  |  | 779,354 |  |  | 14,452 |  |  | 1,527 |
CMBS | 593,647 |  |  | 608,015 |  |  | 14,993 |  |  | 625 |
Other ABS | 760,785 |  |  | 759,129 |  |  | 2,018 |  |  | 3,674 |
Foreign government and agency securities | 5,091 |  |  | 5,224 |  |  | 133 |  |  | — |
Total securities available for sale, including loaned securities | 4,573,387 |  |  | 4,712,924 |  |  | $ | 147,865 |  |  | $ | 8,328 |
Less: loaned securities | 23,853 |  |  | 24,013 |  |  |  |  |
Total fixed-maturities available for sale | $ | 4,549,534 |  |  | $ | 4,688,911 |  |  |  |  |
| December 31, 2018
(In thousands) | Amortized Cost |  | Fair Value |  | Gross Unrealized Gains |  | Gross Unrealized Losses
Fixed-maturities available for sale: |  |  |  |  |  |  |
U.S. government and agency securities | $ | 85,532 |  |  | $ | 84,070 |  |  | $ | 46 |  |  | $ | 1,508 |
State and municipal obligations | 138,022 |  |  | 138,313 |  |  | 2,191 |  |  | 1,900 |
Corporate bonds and notes | 2,288,720 |  |  | 2,229,885 |  |  | 5,053 |  |  | 63,888 |
RMBS | 334,843 |  |  | 332,142 |  |  | 1,785 |  |  | 4,486 |
CMBS | 546,729 |  |  | 539,915 |  |  | 544 |  |  | 7,358 |
Other ABS | 712,748 |  |  | 704,662 |  |  | 814 |  |  | 8,900 |
Total securities available for sale, including loaned securities | 4,106,594 |  |  | 4,028,987 |  |  | $ | 10,433 |  |  | $ | 88,040 |
Less: loaned securities | 7,632 |  |  | 7,412 |  |  |  |  |  |  |
Total fixed-maturities available for sale | $ | 4,098,962 |  |  | $ | 4,021,575 |  |  |  |  |  |  |
Gross Unrealized Losses and Related Fair Values of Available for Sale Securities For securities deemed “available for sale” and that are in an unrealized loss position, the following tables show the gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of the dates indicated. Included in the amounts as of December 31, 2019 and 2018, are loaned securities under securities lending agreements that are classified as other assets in our consolidated balance sheets, as further described below.
|  | December 31, 2019
($ in thousands) Description of Securities |  | Less Than 12 Months |  | 12 Months or Greater |  | Total
| # of securities |  | Fair Value |  | Unrealized Losses |  | # of securities |  | Fair Value |  | Unrealized Losses |  | # of securities |  | Fair Value |  | Unrealized Losses
U.S. government and agency securities |  | 2 |  |  | $ | 26,142 |  |  | $ | 731 |  |  | 2 |  |  | $ | 2,529 |  |  | $ | 2 |  |  | 4 |  |  | $ | 28,671 |  |  | $ | 733 |
State and municipal obligations |  | 1 |  |  | 3,959 |  |  | 41 |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | 3,959 |  |  | 41 |
Corporate bonds and notes |  | 25 |  |  | 110,871 |  |  | 1,728 |  |  | — |  |  | — |  |  | — |  |  | 25 |  |  | 110,871 |  |  | 1,728 |
RMBS |  | 27 |  |  | 184,378 |  |  | 535 |  |  | 16 |  |  | 36,192 |  |  | 992 |  |  | 43 |  |  | 220,570 |  |  | 1,527 |
CMBS |  | 36 |  |  | 109,589 |  |  | 478 |  |  | 8 |  |  | 6,346 |  |  | 147 |  |  | 44 |  |  | 115,935 |  |  | 625 |
Other ABS |  | 63 |  |  | 225,944 |  |  | 670 |  |  | 44 |  |  | 209,661 |  |  | 3,004 |  |  | 107 |  |  | 435,605 |  |  | 3,674 |
Total |  | 154 |  |  | $ | 660,883 |  |  | $ | 4,183 |  |  | 70 |  |  | $ | 254,728 |  |  | $ | 4,145 |  |  | 224 |  |  | $ | 915,611 |  |  | $ | 8,328 |
|  | December 31, 2018
($ in thousands) Description of Securities |  | Less Than 12 Months |  | 12 Months or Greater |  | Total
| # of securities |  | Fair Value |  | Unrealized Losses |  | # of securities |  | Fair Value |  | Unrealized Losses |  | # of securities |  | Fair Value |  | Unrealized Losses
U.S. government and agency securities |  | 2 |  |  | $ | 27,415 |  |  | $ | 796 |  |  | 8 |  |  | $ | 23,476 |  |  | $ | 712 |  |  | 10 |  |  | $ | 50,891 |  |  | $ | 1,508 |
State and municipal obligations |  | 12 |  |  | 41,263 |  |  | 955 |  |  | 16 |  |  | 39,982 |  |  | 945 |  |  | 28 |  |  | 81,245 |  |  | 1,900 |
Corporate bonds and notes |  | 330 |  |  | 1,208,430 |  |  | 36,284 |  |  | 126 |  |  | 601,533 |  |  | 27,604 |  |  | 456 |  |  | 1,809,963 |  |  | 63,888 |
RMBS |  | 15 |  |  | 92,315 |  |  | 782 |  |  | 28 |  |  | 77,395 |  |  | 3,704 |  |  | 43 |  |  | 169,710 |  |  | 4,486 |
CMBS |  | 62 |  |  | 328,696 |  |  | 3,973 |  |  | 33 |  |  | 125,728 |  |  | 3,385 |  |  | 95 |  |  | 454,424 |  |  | 7,358 |
Other ABS |  | 129 |  |  | 503,109 |  |  | 7,917 |  |  | 26 |  |  | 89,628 |  |  | 983 |  |  | 155 |  |  | 592,737 |  |  | 8,900 |
Total |  | 550 |  |  | $ | 2,201,228 |  |  | $ | 50,707 |  |  | 237 |  |  | $ | 957,742 |  |  | $ | 37,333 |  |  | 787 |  |  | $ | 3,158,970 |  |  | $ | 88,040 |
Although we held available for sale securities in an unrealized loss position as of December 31, 2019, we did not consider those securities to be other-than-temporarily impaired as of such date. For all investment categories, the unrealized losses of 12 months or greater duration as of December 31, 2019 were generally caused by interest rate or credit spread movements since the purchase date, and as such, we expect to recover the amortized cost basis of these securities. As of December 31, 2019, we did not have the intent to sell any available for sale securities in an unrealized loss position, and we determined that it is more likely than not that we will not be required to sell the securities before recovery of their cost basis, which may be at maturity; therefore, we did not consider these investments to be other-than-temporarily impaired at December 31, 2019. Other-Than-Temporary Impairment Activity. To the extent we determine that a security is deemed to have had an other-than-temporary impairment, an impairment loss is recognized. While there were no other-than-temporary impairment losses in earnings during the year ended December 31, 2019, we recognized such losses during the years ended December 31, 2018 and 2017. There were no other-than-temporary impairment losses recognized in accumulated other comprehensive income (loss) for any of those periods. For the year ended December 31, 2018, we recorded other-than-temporary impairment losses in earnings of $1.7 million due to our intent to sell certain securities. For the year ended December 31, 2017, we recorded other-than-temporary impairment losses in earnings of $1.4 million, due primarily to credit deterioration in certain securities. Securities Lending Agreements During the third quarter of 2017, we commenced participation in a securities lending program whereby we loan certain securities in our investment portfolio to third parties, generally large banks, for short periods of time. These securities lending agreements are collateralized financing arrangements whereby we transfer securities to third parties through an intermediary in exchange for cash or other securities. However, pursuant to the terms of these agreements, we maintain effective control over all loaned securities. Although we report such securities at fair value within other assets in our consolidated balance sheets, rather than in investments, the detailed information provided in this Note includes these securities. See Note 9 for additional information. Under our securities lending agreements, the borrower is required to provide to us collateral, consisting of cash or securities, in amounts generally equal to or exceeding: (i) 102% of the value of the loaned securities (105% in the case of foreign securities) or (ii) another agreed-upon percentage not less than 100% of the market value of the loaned securities. Any cash collateral we receive may be invested in liquid assets. Cash collateral, which is reinvested for our benefit by the intermediary in accordance with the investment guidelines contained in the securities lending and collateral agreements, is reflected in short-term investments, with an offsetting liability recognized in other liabilities for the obligation to return the cash collateral. Securities collateral we receive is held on deposit for the borrower’s benefit and we may not transfer or loan such securities collateral unless the borrower is in default. Therefore, such securities collateral is not reflected in our consolidated financial statements given that the risks and rewards of ownership are not transferred to us from the borrowers. Fees received and paid in connection with securities lending agreements are recorded in net investment income and interest expense, respectively, on the consolidated statements of operations. All of our securities lending agreements are classified as overnight and revolving. Securities collateral on deposit with us from third-party borrowers totaling $42.4 million and $16.8 million as of December 31, 2019 and December 31, 2018, respectively, may not be transferred or re-pledged unless the third-party borrower is in default, and is therefore not reflected in our consolidated financial statements. Net Investment Income Net investment income consisted of:
| Year Ended December 31,
(In thousands) | 2019 |  | 2018 |  | 2017
Investment income: |  |  |  |  |
Fixed-maturities | $ | 155,104 |  |  | $ | 141,552 |  |  | $ | 122,890 |
Equity securities | 7,028 |  |  | 7,157 |  |  | 4,318 |
Short-term investments | 17,255 |  |  | 10,270 |  |  | 5,453 |
Other | 545 |  |  | 976 |  |  | 987 |
Gross investment income | 179,932 |  |  | 159,955 |  |  | 133,648 |
Investment expenses | (8,136 | ) |  | (7,480 | ) |  | (6,400 | )
Net investment income | $ | 171,796 |  |  | $ | 152,475 |  |  | $ | 127,248 |
Net Gains (Losses) on Investments Net gains (losses) on investments consisted of:
| Year Ended December 31,
(In thousands) | 2019 |  | 2018 |  | 2017
Net realized gains (losses) on investments: |  |  |  |  |
Fixed-maturities available for sale (1) | $ | 11,262 |  |  | $ | (11,256 | ) |  | $ | (3,014 | )
Trading securities | (303 | ) |  | (1,840 | ) |  | (5,995 | )
Equity securities | (719 | ) |  | 532 |  |  | 368 |
Other investments | 603 |  |  | 470 |  |  | 38 |
Net realized gains (losses) on investments | 10,843 |  |  | (12,094 | ) |  | (8,603 | )
Other-than-temporary impairment losses | — |  |  | (1,744 | ) |  | (1,420 | )
Net unrealized gains (losses) on investments (2) | 33,220 |  |  | (27,287 | ) |  | 13,230 |
Total net gains (losses) on investments | $ | 44,063 |  |  | $ | (41,125 | ) |  | $ | 3,207 |
______________________ (1)Components of net realized gains (losses) on fixed-maturities available for sale include:
| Year Ended December 31,
(In thousands) | 2019 |  | 2018 |  | 2017
Gross investment gains from sales and redemptions | $ | 17,663 |  |  | $ | 1,986 |  |  | $ | 6,052 |
Gross investment losses from sales and redemptions | (6,401 | ) |  | (13,242 | ) |  | (9,066 | )
(2) | These amounts include unrealized gains (losses) on investment securities other than securities available for sale. For 2017, the unrealized gains (losses) on investments exclude the net change in unrealized gains and losses on equity securities. Prior to the implementation of the update to the standard for the accounting of financial instruments effective January 1, 2018, the unrealized gains (losses) associated with equity securities were classified in accumulated other comprehensive income.
The net changes in unrealized gains (losses) recognized in earnings on investments that were still held at each period-end were as follows:
| Year Ended December 31,
(In thousands) | 2019 |  | 2018 |  | 2017
Net unrealized gains (losses) on investments still held: |  |  |  |  |
Trading securities | $ | 16,346 |  |  | $ | (16,281 | ) |  | $ | 8,945 |
Equity securities (1) | 11,906 |  |  | (8,886 | ) |  | — |
Other investments | (174 | ) |  | 447 |  |  | (118 | )
Net unrealized gains (losses) on investments still held | $ | 28,078 |  |  | $ | (24,720 | ) |  | $ | 8,827 |
______________________
(1) | Prior to the implementation of the update to the standard for the accounting of financial instruments effective January 1, 2018, the unrealized gains (losses) associated with equity securities were classified in accumulated other comprehensive income.
Change in Unrealized Gains (Losses) Recorded in Accumulated Other Comprehensive Income (Loss) The change in unrealized gains (losses) recorded in accumulated other comprehensive income (loss) consisted of the following:
| Year Ended December 31,
(In thousands) | 2019 |  | 2018 |  | 2017
Fixed-maturities: |  |  |  |  |
Unrealized holding gains (losses) arising during the period, net of tax | $ | 180,441 |  |  | $ | (97,356 | ) |  | $ | 32,147 |
Less reclassification adjustment for net gains (losses) included in net income (loss), net of tax | 8,897 |  |  | (10,270 | ) |  | (2,556 | )
Net unrealized gains (losses) on investments, net of tax | $ | 171,544 |  |  | $ | (87,086 | ) |  | $ | 34,703 |
Equities (1): |  |  |  |  |  |  |  |
Unrealized holding gains (losses) arising during the period, net of tax | $ | — |  |  | $ | — |  |  | $ | (244 | )
Less reclassification adjustment for net gains (losses) included in net income (loss), net of tax | — |  |  | — |  |  | (86 | )
Net unrealized gains (losses) on investments, net of tax | $ | — |  |  | $ | — |  |  | $ | (158 | )
______________________
(1) | Prior to our implementation of the update to the standard for the accounting of financial instruments effective January 1, 2018, the unrealized losses associated with equity securities were classified in accumulated other comprehensive income. Effective January 1, 2018, we measure our equity investments at fair value, with changes in fair value recognized in net income.
Contractual Maturities The contractual maturities of fixed-maturities available for sale were as follows:
| December 31, 2019
(In thousands) | Amortized Cost |  | Fair Value
Due in one year or less | $ | 146,985 |  |  | $ | 147,541 |
Due after one year through five years (1) | 834,096 |  |  | 852,660 |
Due after five years through 10 years (1) | 1,062,725 |  |  | 1,121,536 |
Due after 10 years (1) | 408,720 |  |  | 444,689 |
RMBS (2) | 766,429 |  |  | 779,354 |
CMBS (2) | 593,647 |  |  | 608,015 |
Other ABS (2) | 760,785 |  |  | 759,129 |
Total | 4,573,387 |  |  | 4,712,924 |
Less: loaned securities | 23,853 |  |  | 24,013 |
Total fixed-maturities available for sale | $ | 4,549,534 |  |  | $ | 4,688,911 |
______________________
(1) | Actual maturities may differ as a result of calls before scheduled maturity.
(2) | RMBS, CMBS, and Other ABS are shown separately, as they are not due at a single maturity date.
Other For the years ended December 31, 2019, 2018 and 2017, we did not transfer any securities to or from the available for sale or trading categories. Our fixed-maturities available for sale include securities totaling $16.8 million and $17.6 million at December 31, 2019 and 2018, respectively, on deposit and serving as collateral with various state regulatory authorities. Our fixed-maturities available for sale also include securities serving as collateral for our FHLB advances. See Note 12 for additional information about our FHLB advances.

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsAbstract
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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration