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Note 6 - Investments (Note) | 3 Months Ended
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Mar. 31, 2021
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.
|  | March 31, 2021
(In thousands) |  | Amortized Cost |  | Allowance for Credit Losses |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Fixed-maturities available for sale: |  |  |  |  |  |  |  |  |  |
U.S. government and agency securities |  | $ | 172,927 |  |  | $ | — |  |  | $ | 323 |  |  | $ | (8,681) |  |  | $ | 164,569 |
State and municipal obligations |  | 151,222 |  |  | — |  |  | 11,326 |  |  | (1,510) |  |  | 161,038 |
Corporate bonds and notes |  | 2,938,328 |  |  | (638) |  |  | 145,509 |  |  | (47,600) |  |  | 3,035,599 |
RMBS |  | 752,109 |  |  | — |  |  | 25,667 |  |  | (3,666) |  |  | 774,110 |
CMBS |  | 685,914 |  |  | — |  |  | 27,763 |  |  | (5,330) |  |  | 708,347 |
CLO |  | 561,013 |  |  | — |  |  | 2,183 |  |  | (608) |  |  | 562,588 |
Other ABS |  | 236,464 |  |  | — |  |  | 2,334 |  |  | (461) |  |  | 238,337 |
Foreign government and agency securities |  | 5,102 |  |  | — |  |  | 291 |  |  | — |  |  | 5,393 |
Total securities available for sale, including loaned securities |  | 5,503,079 |  |  | $ | (638) |  |  | $ | 215,396 |  |  | $ | (67,856) |  |  | 5,649,981 |
Less: loaned securities (1) |  | 98,960 |  |  |  |  |  |  |  |  | 96,270 |
Total fixed-maturities available for sale |  | $ | 5,404,119 |  |  |  |  |  |  |  |  | $ | 5,553,711 |
(1)Included in other assets in our consolidated balance sheet as further described below. See below for a discussion of our securities lending agreements.
|  | December 31, 2020
(In thousands) |  | Amortized Cost |  | Allowance for Credit Losses |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Fixed-maturities available for sale: |  |  |  |  |  |  |  |  |  |
U.S. government and agency securities |  | $ | 176,033 |  |  | $ | — |  |  | $ | 1,677 |  |  | $ | (3,611) |  |  | $ | 174,099 |
State and municipal obligations |  | 149,258 |  |  | — |  |  | 16,113 |  |  | (100) |  |  | 165,271 |
Corporate bonds and notes |  | 2,832,350 |  |  | (948) |  |  | 250,771 |  |  | (3,758) |  |  | 3,078,415 |
RMBS |  | 799,814 |  |  | — |  |  | 34,439 |  |  | (314) |  |  | 833,939 |
CMBS |  | 645,071 |  |  | — |  |  | 39,495 |  |  | (3,301) |  |  | 681,265 |
CLO |  | 569,173 |  |  | — |  |  | 2,026 |  |  | (2,641) |  |  | 568,558 |
Other ABS |  | 249,988 |  |  | — |  |  | 2,901 |  |  | (432) |  |  | 252,457 |
Foreign government and agency securities |  | 5,100 |  |  | — |  |  | 338 |  |  | — |  |  | 5,438 |
Total securities available for sale, including loaned securities |  | 5,426,787 |  |  | $ | (948) |  |  | $ | 347,760 |  |  | $ | (14,157) |  |  | 5,759,442 |
Less: loaned securities (1) |  | 33,164 |  |  |  |  |  |  |  |  | 36,102 |
Total fixed-maturities available for sale |  | $ | 5,393,623 |  |  |  |  |  |  |  |  | $ | 5,723,340 |
(1)Included in other assets in our consolidated balance sheet as further described below. See below for a discussion of our securities lending agreements. The following table provides a rollforward of the allowance for credit losses on fixed-maturities available for sale, which relates entirely to corporate bonds and notes for the periods indicated. There was no allowance for the three months ended March 31, 2020.
(In thousands) |  |  |  |  |  | Three Months Ended March 31, 2021 |  |
Beginning balance |  |  |  |  |  | $ | 948 |  |  |
Net increases (decreases) in allowance on previously impaired securities |  |  |  |  |  | (310) |  |  |
Ending balance |  |  |  |  |  | $ | 638 |  |  |
Gross Unrealized Losses and Related Fair Value of Available for Sale Securities For securities deemed “available for sale” that are in an unrealized loss position and for which an allowance for credit loss has not been established, the following tables show the gross unrealized losses and fair value, 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 March 31, 2021 and December 31, 2020 are loaned securities under securities lending agreements that are classified as other assets in our condensed consolidated balance sheets, as further described below.
|  | March 31, 2021
($ in thousands) |  | Less Than 12 Months |  | 12 Months or Greater |  | Total
Description of Securities |  | # of securities |  | Fair Value |  | Unrealized Losses |  | # of securities |  | Fair Value |  | Unrealized Losses |  | # of securities |  | Fair Value |  | Unrealized Losses
U.S. government and agency securities |  | 7 |  |  | $ | 87,663 |  |  | $ | (8,681) |  |  | — |  |  | $ | — |  |  | $ | — |  |  | 7 |  |  | $ | 87,663 |  |  | $ | (8,681) |
State and municipal obligations |  | 29 |  |  | 37,553 |  |  | (1,510) |  |  | — |  |  | — |  |  | — |  |  | 29 |  |  | 37,553 |  |  | (1,510) |
Corporate bonds and notes |  | 225 |  |  | 819,835 |  |  | (47,419) |  |  | 1 |  |  | 2,725 |  |  | (181) |  |  | 226 |  |  | 822,560 |  |  | (47,600) |
RMBS |  | 32 |  |  | 239,012 |  |  | (3,654) |  |  | 2 |  |  | 869 |  |  | (12) |  |  | 34 |  |  | 239,881 |  |  | (3,666) |
CMBS |  | 51 |  |  | 111,105 |  |  | (4,146) |  |  | 17 |  |  | 42,527 |  |  | (1,184) |  |  | 68 |  |  | 153,632 |  |  | (5,330) |
CLO |  | 33 |  |  | 101,725 |  |  | (172) |  |  | 24 |  |  | 92,497 |  |  | (436) |  |  | 57 |  |  | 194,222 |  |  | (608) |
Other ABS |  | 34 |  |  | 101,363 |  |  | (283) |  |  | 3 |  |  | 7,812 |  |  | (178) |  |  | 37 |  |  | 109,175 |  |  | (461) |
Total |  | 411 |  |  | $ | 1,498,256 |  |  | $ | (65,865) |  |  | 47 |  |  | $ | 146,430 |  |  | $ | (1,991) |  |  | 458 |  |  | $ | 1,644,686 |  |  | $ | (67,856) |
|  | December 31, 2020
($ in thousands) |  | Less Than 12 Months |  | 12 Months or Greater |  | Total
Description of Securities |  | # of securities |  | Fair Value |  | Unrealized Losses |  | # of securities |  | Fair Value |  | Unrealized Losses |  | # of securities |  | Fair Value |  | Unrealized Losses
U.S. government and agency securities |  | 4 |  |  | $ | 90,591 |  |  | $ | (3,611) |  |  | — |  |  | $ | — |  |  | $ | — |  |  | 4 |  |  | $ | 90,591 |  |  | $ | (3,611) |
State and municipal obligations |  | 4 |  |  | 9,626 |  |  | (100) |  |  | — |  |  | — |  |  | — |  |  | 4 |  |  | 9,626 |  |  | (100) |
Corporate bonds and notes |  | 60 |  |  | 174,848 |  |  | (3,758) |  |  | — |  |  | — |  |  | — |  |  | 60 |  |  | 174,848 |  |  | (3,758) |
RMBS |  | 5 |  |  | 42,003 |  |  | (305) |  |  | 2 |  |  | 915 |  |  | (9) |  |  | 7 |  |  | 42,918 |  |  | (314) |
CMBS |  | 43 |  |  | 118,345 |  |  | (3,035) |  |  | 6 |  |  | 8,312 |  |  | (266) |  |  | 49 |  |  | 126,657 |  |  | (3,301) |
CLO |  | 52 |  |  | 173,459 |  |  | (970) |  |  | 25 |  |  | 137,506 |  |  | (1,671) |  |  | 77 |  |  | 310,965 |  |  | (2,641) |
Other ABS |  | 26 |  |  | 70,759 |  |  | (322) |  |  | 3 |  |  | 12,119 |  |  | (110) |  |  | 29 |  |  | 82,878 |  |  | (432) |
Total |  | 194 |  |  | $ | 679,631 |  |  | $ | (12,101) |  |  | 36 |  |  | $ | 158,852 |  |  | $ | (2,056) |  |  | 230 |  |  | $ | 838,483 |  |  | $ | (14,157) |
See “Net Gains (Losses) on Investments” below for additional details on our net gains (losses) on investments, including the changes in the allowance for credit losses on fixed maturities available for sale and other impairments due to our intent to sell securities in an unrealized loss position. See Note 2 of Notes to Consolidated Financial Statements in our 2020 Form 10-K for information regarding our accounting policy for impairments. Securities Lending Agreements We participate in a securities lending program whereby we loan certain securities in our investment portfolio to third-party borrowers for short periods of time. Although we report such securities at fair value within other assets in our condensed consolidated balance sheets, rather than within investments, the detailed information we provide in this Note 6 includes these securities. See Note 5 for additional detail on the loaned securities, and see Note 6 of Notes to Consolidated Financial Statements in our 2020 Form 10-K for additional information about our accounting policies with respect to our securities lending agreements and the collateral requirements thereunder. All of our securities lending agreements are classified as overnight and revolving. Securities collateral on deposit with us from third-party borrowers totaling $93.8 million and $43.3 million as of March 31, 2021 and December 31, 2020, respectively, may not be transferred or re-pledged unless the third-party borrower is in default, and is therefore not reflected in our condensed consolidated financial statements. Net Gains (Losses) on Investments Net gains (losses) on investments consisted of the following.
|  |  |  |  |  | Three Months Ended March 31,
(In thousands) |  |  |  |  |  | 2021 |  | 2020
Net realized gains (losses): |  |  |  |  |  |  |  |
Fixed-maturities available for sale (1) |  |  |  |  |  | $ | (790) |  |  | $ | 11,247 |
Trading securities |  |  |  |  |  | 503 |  |  | 49 |
Equity securities |  |  |  |  |  | — |  |  | 310 |
Other investments |  |  |  |  |  | 105 |  |  | 33 |
Net realized gains (losses) on investments |  |  |  |  |  | (182) |  |  | 11,639 |
Impairment losses due to intent to sell |  |  |  |  |  | — |  |  | (622) |
Net decrease (increase) in expected credit losses |  |  |  |  |  | 310 |  |  | — |
Net unrealized gains (losses) on investments |  |  |  |  |  | (2,519) |  |  | (26,845) |
Total net gains (losses) on investments |  |  |  |  |  | $ | (2,391) |  |  | $ | (15,828) |
(1)Components of net realized gains (losses) on fixed-maturities available for sale include the following.
|  |  |  |  | Three Months Ended March 31,
(In thousands) |  |  |  |  | 2021 |  | 2020
Gross investment gains from sales and redemptions |  |  |  |  | $ | 4,117 |  |  | $ | 11,899 |
Gross investment losses from sales and redemptions |  |  |  |  | (4,907) |  |  | (652) |
The net changes in unrealized gains (losses) recognized in earnings on investments that were still held at each period-end were as follows.
|  |  |  |  | Three Months Ended March 31,
(In thousands) |  |  |  |  | 2021 |  | 2020
Net unrealized gains (losses) on investments still held: |  |  |  |  |  |  |
Trading securities |  |  |  |  | $ | (8,089) |  |  | $ | (2,034) |
Equity securities |  |  |  |  | 5,118 |  |  | (24,020) |
Other investments |  |  |  |  | 886 |  |  | 804 |
Net unrealized gains (losses) on investments still held |  |  |  |  | $ | (2,085) |  |  | $ | (25,250) |
Contractual Maturities The contractual maturities of fixed-maturities available for sale were as follows.
|  | March 31, 2021
|  | Available for Sale
(In thousands) |  | Amortized Cost |  | Fair Value
Due in one year or less |  | $ | 132,399 |  |  | $ | 133,403 |
Due after one year through five years (1) |  | 1,154,711 |  |  | 1,203,984 |
Due after five years through 10 years (1) |  | 1,232,690 |  |  | 1,278,861 |
Due after 10 years (1) |  | 747,779 |  |  | 750,351 |
Asset-backed and mortgage-backed securities (2) |  | 2,235,500 |  |  | 2,283,382 |
Total |  | 5,503,079 |  |  | 5,649,981 |
Less: loaned securities |  | 98,960 |  |  | 96,270 |
Total fixed-maturities available for sale |  | $ | 5,404,119 |  |  | $ | 5,553,711 |
(1)Actual maturities may differ as a result of calls before scheduled maturity. (2)Includes RMBS, CMBS, CLO and Other ABS, which are not due at a single maturity date. Other For the three months ended March 31, 2021, 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 $17.1 million and $16.9 million at March 31, 2021 and December 31, 2020, 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.

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