XML 66 R38.htm IDEA: XBRL DOCUMENT v3.10.0.1
Investments (Tables)
 12 Months Ended
Dec. 31, 2018
Investment [Line Items]  
Schedule of Unrealized Gains On Investments
($ in thousands)
 
2018
 
2017
 
2016
AFS securities:
 
 

 
 

 
 

Fixed income securities
 
$
2,302

 
85,806

 
38,781

Equity securities
 
—

 
38,894

 
25,864

Total AFS securities
 
2,302

 
124,700

 
64,645

 
 
 
 
 
 
 
HTM securities:
 
 

 
 

 
 

Fixed income securities
 
89

 
(21
)
 
159

Total HTM securities
 
89

 
(21
)
 
159

 
 
 
 
 
 
 
Total net unrealized gains
 
2,391

 
124,679

 
64,804

Deferred income tax
 
(502
)
 
(44,103
)
 
(22,681
)
Net unrealized gains, net of deferred income tax
 
1,889

 
80,576

 
42,123

 
 
 
 
 
 
 
Cumulative effect adjustment due to accounting change for equity unrealized1
 
30,726

 
—

 
—

Cumulative effect adjustment due to accounting changes due to accounting change for stranded tax assets1
 
(17,920
)
 
—

 
—

Increase (decrease) in net unrealized gains in OCI, net of deferred income tax
 
$
(65,881
)
 
38,453

 
(2,873
)
Schedule of Held-to-maturity Securities
December 31, 2018
 
 
 
Net
 
 
 
 
 
 
 
 
 
 
 
 
Unrealized
 
 
 
Unrecognized
 
Unrecognized
 
 
 
 
Amortized
 
Gains
 
Carrying
 
Holding
 
Holding
 
Fair
($ in thousands)
 
Cost
 
(Losses)
 
Value
 
Gains
 
Losses
 
Value
Obligations of state and political subdivisions
 
$
17,431

 
39

 
17,470

 
504

 
(5
)
 
17,969

Corporate securities
 
19,590

 
50

 
19,640

 
855

 
(147
)
 
20,348

Total HTM fixed income securities
 
$
37,021

 
89

 
37,110

 
1,359

 
(152
)
 
38,317


 
December 31, 2017
 
 
 
Net
 
 
 
 
 
 
 
 
 
 
 
 
Unrealized
 
 
 
Unrecognized
 
Unrecognized
 
 
 
 
Amortized
 
Gains
 
Carrying
 
Holding
 
Holding
 
Fair
($ in thousands)
 
Cost
 
(Losses)
 
Value
 
Gains
 
Losses
 
Value
Obligations of state and political subdivisions
 
25,154

 
84

 
25,238

 
1,023

 
—

 
26,261

Corporate securities
 
16,996

 
(105
)
 
16,891

 
1,003

 
(55
)
 
17,839

Total HTM fixed income securities
 
$
42,150

 
(21
)
 
42,129

 
2,026

 
(55
)
 
44,100
Schedule of Available For Sale Securities
December 31, 2018
 
 
 
 
 
 
 
 
 
 
Cost/
 
 
 
 
 
 
 
 
Amortized
 
Unrealized
 
Unrealized
 
Fair
($ in thousands)
 
Cost
 
Gains
 
Losses
 
Value
AFS fixed income securities:
 
 
 
 
 
 
 
 
U.S. government and government agencies
 
$
120,092

 
1,810

 
(592
)
 
121,310

Foreign government
 
23,202

 
36

 
(107
)
 
23,131

Obligations of states and political subdivisions
 
1,121,615

 
19,485

 
(2,631
)
 
1,138,469

Corporate securities
 
1,639,852

 
5,521

 
(27,965
)
 
1,617,408

CLO and other ABS
 
720,193

 
4,112

 
(6,943
)
 
717,362

CMBS
 
527,409

 
3,417

 
(3,748
)
 
527,078

RMBS
 
1,118,435

 
12,988

 
(3,081
)
 
1,128,342

Total AFS fixed income securities
 
$
5,270,798

 
47,369

 
(45,067
)
 
5,273,100


 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
Cost/
 
 
 
 
 
 
 
 
Amortized
 
Unrealized
 
Unrealized
 
Fair
($ in thousands)
 
Cost
 
Gains
 
Losses
 
Value
AFS fixed income securities:
 
 
 
 
 
 
 
 
U.S. government and government agencies
 
$
49,326

 
647

 
(233
)
 
49,740

Foreign government
 
18,040

 
526

 
(11
)
 
18,555

Obligations of states and political subdivisions
 
1,539,307

 
44,245

 
(582
)
 
1,582,970

Corporate securities
 
1,588,339

 
30,891

 
(1,762
)
 
1,617,468

CLO and other ABS
 
789,152

 
6,508

 
(202
)
 
795,458

CMBS
 
382,727

 
1,563

 
(841
)
 
383,449

RMBS
 
709,825

 
6,487

 
(1,430
)
 
714,882

Total AFS fixed income securities
 
5,076,716

 
90,867

 
(5,061
)
 
5,162,522

AFS equity securities:
 
 
 
 
 
 
 
 
Common stock
 
129,696

 
38,287

 
(226
)
 
167,757

Preferred stock
 
14,115

 
904

 
(71
)
 
14,948

Total AFS equity securities
 
143,811

 
39,191

 
(297
)
 
182,705

Total AFS securities
 
$
5,220,527

 
130,058

 
(5,358
)
 
5,345,227
Schedule of Fair Value and Gross Pre-Tax Net Unrealized/Unrecognized Loss of Securities by Length of Time
December 31, 2018
 
Less than 12 months
 
12 months or longer
 
Total
($ in thousands)
 
Fair 
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
AFS fixed income securities:
 
 

 
 

 
 

 
 

 
 
 
 
U.S. government and government agencies
 
$
6,693


(174
)

23,163


(418
)
 
29,856

 
(592
)
Foreign government
 
12,208

 
(93
)
 
1,482

 
(14
)
 
13,690

 
(107
)
Obligations of states and political subdivisions
 
196,798

 
(2,074
)
 
42,821

 
(557
)
 
239,619

 
(2,631
)
Corporate securities
 
1,041,952

 
(23,649
)
 
78,953

 
(4,316
)
 
1,120,905

 
(27,965
)
CLO and other ABS
 
516,106

 
(6,750
)
 
16,800

 
(193
)
 
532,906

 
(6,943
)
CMBS
 
229,338

 
(2,548
)
 
66,294

 
(1,200
)
 
295,632

 
(3,748
)
RMBS
 
139,338

 
(1,660
)
 
45,661

 
(1,421
)
 
184,999

 
(3,081
)
Total AFS fixed income securities
 
$
2,142,433

 
(36,948
)
 
275,174

 
(8,119
)
 
2,417,607

 
(45,067
)
December 31, 2017
 
Less than 12 months
 
12 months or longer
 
Total
($ in thousands)
 
Fair 
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
AFS fixed income securities:
 
 

 
 

 
 

 
 

 
 
 
 
U.S. government and government agencies
 
$
23,516

 
(233
)
 
250

 
—

 
23,766

 
(233
)
Foreign government
 
1,481

 
(11
)
 
—

 
—

 
1,481

 
(11
)
Obligations of states and political subdivisions
 
107,514

 
(422
)
 
14,139

 
(160
)
 
121,653

 
(582
)
Corporate securities
 
238,326

 
(1,744
)
 
3,228

 
(18
)
 
241,554

 
(1,762
)
CLO and other ABS
 
74,977

 
(196
)
 
1,655

 
(6
)
 
76,632

 
(202
)
CMBS
 
154,267

 
(773
)
 
5,214

 
(68
)
 
159,481

 
(841
)
RMBS
 
269,485

 
(1,285
)
 
11,200

 
(145
)
 
280,685

 
(1,430
)
       Total AFS fixed income securities
 
869,566

 
(4,664
)
 
35,686

 
(397
)
 
905,252

 
(5,061
)
AFS equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
Common stock
 
4,727

 
(226
)
 
—

 
—

 
4,727

 
(226
)
Preferred stock
 
3,833

 
(71
)
 
—

 
—

 
3,833

 
(71
)
    Total AFS equity securities
 
8,560

 
(297
)
 
—

 
—

 
8,560

 
(297
)
Total AFS securities
 
$
878,126

 
(4,961
)
 
35,686

 
(397
)
 
913,812

 
(5,358
)
Schedule of Investments Classified by Contractual Maturity Date
 
 
AFS
 
HTM
($ in thousands)
 
Fair Value
 
Carrying Value
 
Fair Value
Due in one year or less
 
$
188,309

 
13,502

 
13,693

Due after one year through five years
 
2,040,395

 
17,308

 
18,260

Due after five years through 10 years
 
2,863,528

 
6,300

 
6,364

Due after 10 years
 
180,868

 
—

 
—

Total fixed income securities
 
$
5,273,100

 
37,110

 
38,317
Schedule of Other Investment Portfolio by Strategy and the Remaining Commitment Amount Associated With Each Strategy
Other Investments
 
December 31, 2018
 
December 31, 2017
($ in thousands)
 
Carrying
Value
 
Remaining
Commitment
 
Maximum
Exposure to Loss1
 
Carrying
Value
 
Remaining
Commitment
 
Maximum
Exposure to Loss1
Alternative Investments
 
 

 
 
 
 
 
 

 
 
 
 

Private equity
 
$
84,352

 
93,688

 
178,040

 
52,251

 
99,026

 
151,277

Private credit
 
41,682

 
81,453

 
123,135

 
37,743

 
94,959

 
132,702

Real assets
 
27,862

 
27,129

 
54,991

 
25,379

 
27,014

 
52,393

Total alternative investments
 
153,896

 
202,270

 
356,166

 
115,373

 
220,999

 
336,372

Other securities2
 
25,042

 
—

 
25,042

 
16,895

 
—

 
16,895

Total other investments
 
$
178,938

 
202,270

 
381,208

 
132,268

 
220,999

 
353,267
Schedule of Aggregated Summarized Balance Sheet Financial Information For Partnerships In Our Alternative Investment Portfolio
Balance Sheet Information
 
 
 
 
September 30,
 
 
 
 
($ in millions)
 
2018
 
2017
Investments
 
$
28,292

 
21,046

Total assets
 
30,377

 
22,357

Total liabilities
 
4,532

 
4,767

Total partners’ capital
 
25,845

 
17,590
Schedule of Aggregated Summarized Income Statement Financial Information For Partnerships In Our Alternative Investment Portfolio
Income Statement Information
 
 
 
 
 
 
12 months ended September 30,
 
 
 
 
 
 
($ in millions)
 
2018
 
2017
 
2016
Net investment income (loss)
 
$
134

 
(143
)
 
(44
)
Realized gains
 
1,981

 
325

 
1,374

Net change in unrealized appreciation (depreciation)
 
1,303

 
2,894

 
(719
)
Net income
 
$
3,418

 
3,076

 
611

 
 
 
 
 
 
 
Insurance Subsidiaries' alternative investments income (loss)
 
17.6

 
12.7

 
3.1
Schedule Of Securities Pledged As Collateral
($ in millions)
 
 FHLBI Collateral
 
FHLBNY Collateral
 
State and Regulatory Deposits
 
Total
U.S. government and government agencies
 
$
—

 
—

 
22.5

 
22.5

Obligations of states and political subdivisions
 
—

 
—

 
3.9

 
3.9

Corporate securities
 
—

 
—

 
0.3

 
0.3

CMBS
 
7.2

 
18.1

 
—

 
25.3

RMBS
 
58.0

 
45.5

 
—

 
103.5

Total pledged as collateral
 
$
65.2

 
63.6

 
26.7

 
155.5
Schedule of Components of Pre-Tax Net Investment Income Earned
($ in thousands)
 
2018
 
2017
 
2016
Fixed income securities
 
$
178,104

 
153,230

 
129,306

Equity securities
 
7,764

 
6,442

 
7,368

Short-term investments
 
3,472

 
1,526

 
686

Other investments
 
17,799

 
12,871

 
2,940

Investment expenses
 
(11,803
)
 
(12,187
)
 
(9,546
)
Net investment income earned
 
$
195,336

 
161,882

 
130,754
Schedule of OTTI by Asset Type
2018
 
 
 
 
 
Recognized in
Earnings
($ in thousands)
 
Gross
 
Included in OCI
 
AFS fixed income securities:
 
 
 
 
 
 
Corporate securities
 
$
1,783

 
—

 
1,783

RMBS
 
2,903

 
—

 
2,903

Total AFS fixed income securities
 
4,686

 
—

 
4,686

Other investments
 
1,893

 
—

 
1,893

Total OTTI losses
 
$
6,579

 
—

 
6,579


2017
 
 
 
 
 
Recognized in
Earnings
($ in thousands)
 
Gross
 
Included in OCI
 
AFS fixed income securities:
 
 
 
 
 
 
U.S. government and government agencies
 
$
36

 
—

 
36

Obligations of states and political subdivisons
 
612

 
—

 
612

Corporate securities
 
587

 
—

 
587

CLO and other ABS
 
96

 
—

 
96

CMBS
 
670

 
—

 
670

RMBS
 
1,183

 
(36
)
 
1,219

Total AFS fixed income securities
 
3,184

 
(36
)
 
3,220

AFS equity securities:
 
 
 
 
 
 
Common stock
 
1,435

 
—

 
1,435

Total AFS equity securities
 
1,435

 
—

 
1,435

Other investments
 
190

 
—

 
190

Total OTTI losses
 
$
4,809

 
(36
)
 
4,845

2016
 
 
 
 
 
Recognized in
Earnings
($ in thousands)
 
Gross
 
Included in OCI
 
AFS fixed income securities:
 
 

 
 

 
 

Obligations of states and political subdivisons
 
$
2,797

 
—

 
2,797

CLO and other ABS
 
19

 
—

 
19

Corporate securities
 
1,880

 
—

 
1,880

CMBS
 
220

 
—

 
220

RMBS
 
275

 
10

 
265

Total AFS fixed income securities
 
5,191

 
10

 
5,181

AFS equity securities:
 
 
 
 
 
 
Common stock
 
3,316

 
—

 
3,316

Preferred stock
 
2

 
—

 
2

Total AFS equity securities
 
3,318

 
—

 
3,318

Total OTTI losses
 
$
8,509

 
10

 
8,499
Components of Net Realized and Unrealized Gains (Losses)
($ in thousands)
 
2018
 
2017
 
2016
Net realized (losses) gains on the disposals of securities:
 
 
 
 
 
 
Fixed income securities
 
$
(34,953
)
 
6,944

 
(3,668
)
Equity securities
 
18,695

 
4,629

 
7,244

Short-term investments
 
(3
)
 
(4
)
 
(13
)
Other investments
 
(2,714
)
 
(365
)
 
(1
)
Net realized (losses) gains on the disposal of securities
 
(18,975
)
 
11,204

 
3,562

OTTI charges
 
(6,579
)
 
(4,845
)
 
(8,499
)
Net realized (losses) gains
 
(25,554
)
 
6,359

 
(4,937
)
Unrealized (losses) recognized in income on equity securities1
 
(29,369
)
 
—

 
—

Total net realized and unrealized investment (losses) gains
 
$
(54,923
)
 
6,359

 
(4,937
)
1Includes unrealized holding gains (losses) of: (i) $(3.1) million on equity securities remaining in our portfolio as of December 31, 2018; and (ii) $(26.3) million on equity securities sold in 2018.
Schedule of Components of Net Realized Gains Excluding OTTI Charges
($ in thousands)
 
2018
 
2017
 
2016
HTM fixed income securities
 
 

 
 

 
 

Gains
 
$
2

 
44

 
3

Losses
 
—

 
(1
)
 
(1
)
AFS fixed income securities
 
 

 
 

 
 

Gains
 
5,460

 
10,193

 
7,741

Losses
 
(40,415
)
 
(3,292
)
 
(11,411
)
Equity securities
 
 

 
 

 
 

Gains
 
23,203

 
5,829

 
8,108

Losses
 
(4,508
)
 
(1,200
)
 
(864
)
Short-term investments
 
 
 
 
 
 
Gains
 
7

 
2

 
—

Losses
 
(10
)
 
(6
)
 
(13
)
Other investments
 
 

 
 

 
 

Gains
 
—

 
494

 
3

Losses
 
(2,714
)
 
(859
)
 
(4
)
Total net realized investment (losses) gains
 
$
(18,975
)
 
11,204

 
3,562