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Investments | 12 Months Ended
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Dec. 31, 2019
Investments [Abstract] |
Investments | Investments (a) Net unrealized gains on investments included in OCI by asset class were as follows for the years ended December 31, 2019, 2018, and 2017:
($ in thousands) |  | 2019 |  | 2018 |  | 2017
AFS securities: |  |  |  |  |  |  |  |  |
Fixed income securities |  | $ | 215,634 |  |  | 2,302 |  |  | 85,806 |
Equity securities |  | — |  |  | — |  |  | 38,894 |
Total AFS securities |  | 215,634 |  |  | 2,302 |  |  | 124,700 |
HTM securities: |  |  |  |  |  |  |  |  |
Fixed income securities |  | 31 |  |  | 89 |  |  | (21 | )
Total HTM securities |  | 31 |  |  | 89 |  |  | (21 | )
Short-term securities |  | 23 |  |  | — |  |  | — |
Total net unrealized gains |  | 215,688 |  |  | 2,391 |  |  | 124,679 |
Deferred income tax |  | (45,294 | ) |  | (502 | ) |  | (44,103 | )
Net unrealized gains, net of deferred income tax |  | 170,394 |  |  | 1,889 |  |  | 80,576 |
Cumulative effect adjustment due to accounting change for equity unrealized 1 |  | — |  |  | 30,726 |  |  | — |
Cumulative effect adjustment due to accounting changes due to accounting change for stranded tax assets 1 |  | — |  |  | (17,920 | ) |  | — |
Increase (decrease) in net unrealized gains in OCI, net of deferred income tax |  | $ | 168,505 |  |  | (65,881 | ) |  | 38,453 |
1 Upon adoption of ASU 2016-01, we recognized a $30.7 million cumulative-effect adjustment to the opening balance of AOCI, which represents the after-tax net unrealized gain on our equity portfolio as of December 31, 2017. Additionally, upon adoption of ASU 2018-02, we recognized a one-time reclassification from AOCI to retained earnings for $17.9 million representing the stranded tax assets related to our investment portfolio that were created in AOCI from the enactment of the Tax Cuts and Jobs Act of 2017 ("Tax Reform"). (b) Information regarding our HTM fixed income securities as of December 31, 2019 and December 31, 2018 was as follows:
December 31, 2019 |  |  |  | Net |  |  |  |  |  |  |  |
|  |  |  | Unrealized |  |  |  | Unrecognized |  | Unrecognized |  |
|  | Amortized |  | Gains |  | Carrying |  | Holding |  | Holding |  | Fair
($ in thousands) |  | Cost |  | (Losses) |  | Value |  | Gains |  | Losses |  | Value
Obligations of state and political subdivisions |  | $ | 4,573 |  |  | 7 |  |  | 4,580 |  |  | 342 |  |  | (1 | ) |  | 4,921 |
Corporate securities |  | 16,196 |  |  | 24 |  |  | 16,220 |  |  | 834 |  |  | — |  |  | 17,054 |
Total HTM fixed income securities |  | $ | 20,769 |  |  | 31 |  |  | 20,800 |  |  | 1,176 |  |  | (1 | ) |  | 21,975 |
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 |
Unrecognized holding gains and losses of HTM securities are not reflected in the Financial Statements, as they represent fair value fluctuations from the date a security is designated as HTM through the date of the balance sheet. (c) Information regarding our AFS securities as of December 31, 2019 and December 31, 2018 were as follows:
December 31, 2019 |  |  |  |  |  |  |  |
|  | Cost/ |  |  |  |  |  |
|  | Amortized |  | Unrealized |  | Unrealized |  | Fair
($ in thousands) |  | Cost |  | Gains |  | Losses |  | Value
AFS fixed income securities: |  |  |  |  |  |  |  |
U.S. government and government agencies |  | $ | 112,680 |  |  | 3,506 |  |  | — |  |  | 116,186 |
Foreign government |  | 18,011 |  |  | 533 |  |  | (2 | ) |  | 18,542 |
Obligations of states and political subdivisions |  | 1,168,185 |  |  | 62,175 |  |  | (270 | ) |  | 1,230,090 |
Corporate securities |  | 1,866,881 |  |  | 81,906 |  |  | (1,310 | ) |  | 1,947,477 |
CLO and other ABS |  | 790,517 |  |  | 7,929 |  |  | (5,434 | ) |  | 793,012 |
CMBS |  | 514,709 |  |  | 23,902 |  |  | (267 | ) |  | 538,344 |
RMBS |  | 1,409,003 |  |  | 43,421 |  |  | (455 | ) |  | 1,451,969 |
Total AFS fixed income securities |  | $ | 5,879,986 |  |  | 223,372 |  |  | (7,738 | ) |  | 6,095,620 |
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 |
Unrealized gains and losses of AFS securities represent fair value fluctuations from the later of: (i) the date a security is designated as AFS; or (ii) the date that an OTTI charge is recognized on an AFS security, through the date of the balance sheet. These unrealized gains and losses are recorded in AOCI on the Consolidated Balance Sheets. (d) The severity of impairment on the securities in an unrealized/unrecognized loss position averaged approximately 1% of amortized cost at December 31, 2019 and approximately 2% at December 31, 2018. Quantitative information regarding unrealized losses on our AFS portfolio is provided below. Our HTM portfolio had less than $0.1 million in unrealized/unrecognized losses at December 31, 2019 and $0.2 million in unrealized/unrecognized losses at December 31, 2018.
December 31, 2019 |  | Less than 12 months |  | 12 months or longer |  | Total
($ in thousands) |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
AFS fixed income securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign government |  | 1,416 |  |  | (2 | ) |  | — |  |  | — |  |  | 1,416 |  |  | (2 | )
Obligations of states and political subdivisions |  | 35,838 |  |  | (270 | ) |  | — |  |  | — |  |  | 35,838 |  |  | (270 | )
Corporate securities |  | 84,832 |  |  | (480 | ) |  | 20,182 |  |  | (830 | ) |  | 105,014 |  |  | (1,310 | )
CLO and other ABS |  | 205,191 |  |  | (1,938 | ) |  | 204,385 |  |  | (3,496 | ) |  | 409,576 |  |  | (5,434 | )
CMBS |  | 62,893 |  |  | (264 | ) |  | 828 |  |  | (3 | ) |  | 63,721 |  |  | (267 | )
RMBS |  | 126,089 |  |  | (425 | ) |  | 5,375 |  |  | (30 | ) |  | 131,464 |  |  | (455 | )
Total AFS fixed income securities |  | $ | 516,259 |  |  | (3,379 | ) |  | 230,770 |  |  | (4,359 | ) |  | 747,029 |  |  | (7,738 | )
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 | )
The $37.3 million decrease in the unrealized loss position reflected: (i) lower interest rates, with a 90-basis point decrease in the 2-year U.S. Treasury Note yields and a 77-basis point decrease in 10-year U.S. Treasury Note yields during 2019; and (ii) tightening option adjusted corporate credit spreads with a 60-basis point decrease in the Bloomberg Barclays U.S. Aggregate Corporate Bond Index during 2019. We do not currently intend to sell any of the securities in the tables above, nor will we be required to sell any of these securities. Considering these factors and our review of these securities under our OTTI policy as described in Note 2. “Summary of Significant Accounting Policies” of this Form 10-K, we have concluded that they are temporarily impaired as we believe: (i) they will mature at par value; (ii) they have not incurred a credit impairment; and (iii) future values of these securities will fluctuate with changes in interest rates. This conclusion reflects our current judgment as to the financial position and future prospects of the entity that issued the investment security and underlying collateral. (e) Fixed income securities at December 31, 2019, by contractual maturity are shown below. Mortgage-backed securities are included in the maturity tables using the estimated average life of each security. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Listed below are the contractual maturities of fixed income securities at December 31, 2019:
|  | AFS |  | HTM
($ in thousands) |  | Fair Value |  | Carrying Value |  | Fair Value
Due in one year or less |  | $ | 394,027 |  |  | 1,211 |  |  | 1,229 |
Due after one year through five years |  | 3,001,602 |  |  | 13,856 |  |  | 14,820 |
Due after five years through 10 years |  | 2,531,172 |  |  | 5,733 |  |  | 5,926 |
Due after 10 years |  | 168,819 |  |  | — |  |  | — |
Total fixed income securities |  | $ | 6,095,620 |  |  | 20,800 |  |  | 21,975 |
(f) The following table summarizes our other investment portfolio by strategy:
Other Investments |  | December 31, 2019 |  | December 31, 2018
($ in thousands) |  | Carrying Value |  | Remaining Commitment |  | Maximum Exposure to Loss 1 |  | Carrying Value |  | Remaining Commitment |  | Maximum Exposure to Loss 1
Alternative Investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Private equity |  | $ | 118,352 |  |  | 93,138 |  |  | 211,490 |  |  | 84,352 |  |  | 93,688 |  |  | 178,040 |
Private credit |  | 42,532 |  |  | 105,340 |  |  | 147,872 |  |  | 41,682 |  |  | 81,453 |  |  | 123,135 |
Real assets |  | 23,256 |  |  | 20,741 |  |  | 43,997 |  |  | 27,862 |  |  | 27,129 |  |  | 54,991 |
Total alternative investments |  | 184,140 |  |  | 219,219 |  |  | 403,359 |  |  | 153,896 |  |  | 202,270 |  |  | 356,166 |
Other securities 2 |  | 32,667 |  |  | — |  |  | 32,667 |  |  | 25,042 |  |  | — |  |  | 25,042 |
Total other investments |  | $ | 216,807 |  |  | 219,219 |  |  | 436,026 |  |  | 178,938 |  |  | 202,270 |  |  | 381,208 |
1 The maximum exposure to loss includes both the carrying value of these investments and the related unfunded commitments. In addition, tax credits that have been previously recognized in Other securities are subject to the risk of recapture, which we do not consider significant. 2 Other securities primarily consists of tax credit investments. We have reviewed various investments included in the table above and have concluded that they are VIEs, but that we are not the primary beneficiary and therefore, consolidation is not required. We do not have a future obligation to fund losses or debts on behalf of these investments; however, we are contractually committed to make additional investments up to the remaining commitment outlined above. We have not provided any non-contractual financial support at any time during 2019 or 2018. The following is a description of our alternative investment strategies: Our private equity strategy includes the following:
• | Primary Private Equity: This strategy makes private equity investments, primarily in established large and middle market companies across diverse industries globally, with an emphasis on North America.
• | Secondary Private Equity: This strategy purchases seasoned private equity funds from investors desiring liquidity prior to normal fund termination. Investments are made across all sectors of the private equity market, including leveraged buyouts ("LBO"), venture capital, distressed securities, mezzanine financing, real estate, and infrastructure.
• | Venture Capital: In general, these investments are made principally by investing in equity securities of privately-held corporations, for long-term capital appreciation. This strategy makes private equity investments in growth equity and buyout partnerships.
Our private credit strategy includes the following:
• | Direct Lending: This strategy provides privately negotiated loans to U.S. middle market companies. Typically, these are floating rate, senior secured loans diversified across industries. Loans are made to companies that may or may not have private equity sponsors to finance LBOs, recapitalizations, and acquisitions.
• | Mezzanine Financing: This strategy provides privately-negotiated fixed income securities, generally with an equity component, to LBO firms and private and publicly-traded large, mid, and small-cap companies to finance LBOs, recapitalizations, and acquisitions.
• | Opportunistic and Distressed Debt: This strategy makes investments in debt and equity securities of companies that are experiencing financial distress, operational issues, or dislocated pricing of publicly-traded securities. Investments include buying indebtedness of bankrupt or financially-troubled companies, small balance loan portfolios, special situations and capital structure arbitrage trades, commercial real estate mortgages, and similar non-U.S. securities and debt obligations.
Our real assets strategy includes the following:
• | Infrastructure: This strategy invests in the equity or debt of cash flow generating assets, diversified across a variety of industries, including transportation, energy infrastructure, renewable power, such as wind and solar, social infrastructure, power generation, water, telecom, and other regulated entities principally located in North America and Western Europe.
• | Real Estate: This strategy invests in real estate in North America, Europe, and Asia via direct property ownership, joint ventures, mortgages, and investments in equity and debt instruments.
Our alternative investment strategies may employ leverage and may use hedging to reduce foreign exchange or interest rate volatility. At this time, our alternative investment strategies do not include hedge funds. We typically cannot redeem our investments with the general partners of these investments; however, occasionally these partnerships can be traded on the secondary market. Once liquidation is triggered by clauses within the limited partnership agreements or at the funds’ stated end date, we will receive our final allocation of capital and any earned appreciation of the underlying investments, assuming we have not divested ourselves of our partnership interests prior to that time. We currently receive distributions from these alternative investments through the realization of the underlying investments or income generated in the limited partnerships. The following tables set forth summarized financial information for our other investments portfolio, including the portion not owned by us. The investments are recorded under the equity method of accounting. The last line in the income statement information table below reflects our share of the aggregate income, which is the portion included in our Financial Statements. As the majority of these investments report results to us on a one quarter lag, the summarized financial statement information is as of, and for the 12-month period ended, September 30:
Balance Sheet Information |  |  |  |
December 31, |  |  |  |
($ in millions) |  | 2019 |  | 2018
Investments |  | $ | 43,857 |  |  | 28,292 |
Total assets |  | 45,432 |  |  | 30,377 |
Total liabilities |  | 5,670 |  |  | 4,532 |
Total partners’ capital |  | 39,762 |  |  | 25,845 |
Income Statement Information |  |  |  |  |  |
12 months ended September 30, |  |  |  |  |  |
($ in millions) |  | 2019 |  | 2018 |  | 2017
Net investment (loss) income |  | $ | (8 | ) |  | 134 |  |  | (143 | )
Realized gains |  | 695 |  |  | 1,981 |  |  | 325 |
Net change in unrealized appreciation |  | 5,543 |  |  | 1,303 |  |  | 2,894 |
Net income before tax |  | $ | 6,230 |  |  | 3,418 |  |  | 3,076 |
Insurance Subsidiaries' alternative investments income before tax |  | 17.9 |  |  | 17.6 |  |  | 12.7 |
(g) We did not have exposure to any credit concentration risk of a single issuer greater than 10% of our stockholders' equity, other than certain U.S. government agencies, as of December 31, 2019 or December 31, 2018. (h) We have pledged certain AFS fixed income securities as collateral related to our relationships with the Federal Home Loan Bank of Indianapolis ("FHLBI") and the Federal Home Loan Bank of New York ("FHLBNY"). In addition, certain securities were on deposit with various state and regulatory agencies at December 31, 2019 to comply with insurance laws. We retain all rights regarding all securities pledged as collateral. The following table summarizes the market value of these securities at December 31, 2019:
($ in millions) |  | FHLBI Collateral |  | FHLBNY Collateral |  | State and Regulatory Deposits |  | Total
U.S. government and government agencies |  | $ | — |  |  | — |  |  | 22.8 |  |  | 22.8 |
Obligations of states and political subdivisions |  | — |  |  | — |  |  | 4.0 |  |  | 4.0 |
Corporate securities |  | — |  |  | — |  |  | 0.3 |  |  | 0.3 |
CMBS |  | 7.2 |  |  | 17.9 |  |  | — |  |  | 25.1 |
RMBS |  | 59.0 |  |  | 77.6 |  |  | — |  |  | 136.6 |
Total pledged as collateral |  | $ | 66.2 |  |  | 95.5 |  |  | 27.1 |  |  | 188.8 |
(i) The components of pre-tax net investment income earned were as follows:
($ in thousands) |  | 2019 |  | 2018 |  | 2017
Fixed income securities |  | $ | 203,255 |  |  | 178,104 |  |  | 153,230 |
Equity securities |  | 6,996 |  |  | 7,764 |  |  | 6,442 |
Short-term investments |  | 6,653 |  |  | 3,472 |  |  | 1,526 |
Other investments |  | 18,778 |  |  | 17,799 |  |  | 12,871 |
Investment expenses |  | (13,139 | ) |  | (11,803 | ) |  | (12,187 | )
Net investment income earned |  | $ | 222,543 |  |  | 195,336 |  |  | 161,882 |
(j) The following tables summarize OTTI by asset type for the periods indicated:
2019 |  |  |  |  |  | Recognized in Earnings
($ in thousands) |  | Gross |  | Included in OCI |
AFS fixed income securities: |  |  |  |  |  |
Obligations of states and political subdivisions |  | 66 |  |  | — |  |  | 66 |
Corporate securities |  | $ | 2,529 |  |  | — |  |  | 2,529 |
Total AFS fixed income securities |  | 2,595 |  |  | — |  |  | 2,595 |
Other investments |  | 1,049 |  |  | — |  |  | 1,049 |
Total OTTI losses |  | $ | 3,644 |  |  | — |  |  | 3,644 |
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 |
(k) Net realized and unrealized gains and losses included the following:
($ in thousands) |  | 2019 |  | 2018 |  | 2017
Net realized gains (losses) on the disposals of securities: |  |  |  |  |  |
Fixed income securities |  | $ | 1,910 |  |  | (34,953 | ) |  | 6,944 |
Equity securities |  | 24,844 |  |  | 18,695 |  |  | 4,629 |
Short-term investments |  | (16 | ) |  | (3 | ) |  | (4 | )
Other investments |  | (23 | ) |  | (2,714 | ) |  | (365 | )
Net realized gains (losses) on the disposal of securities |  | 26,715 |  |  | (18,975 | ) |  | 11,204 |
OTTI charges |  | (3,644 | ) |  | (6,579 | ) |  | (4,845 | )
Net realized gains (losses) |  | 23,071 |  |  | (25,554 | ) |  | 6,359 |
Unrealized (losses) recognized in income on equity securities |  | (8,649 | ) |  | (29,369 | ) |  | — |
Total net realized and unrealized investment gains (losses) |  | $ | 14,422 |  |  | (54,923 | ) |  | 6,359 |
Unrealized (losses) recognized in income on equity securities, as reflected in the table above, include the following:
($ in thousands) |  | 2019 |  | 2018
Unrealized gains (losses) recognized in income on equity securities: |  |  |  |
On securities remaining in our portfolio at December 31, 2019 |  | 1,219 |  |  | (3,098 | )
On securities sold in each respective period |  | (9,868 | ) |  | (26,271 | )
Total unrealized (losses) recognized in income on equity securities |  | $ | (8,649 | ) |  | (29,369 | )
The components of net realized gains (losses) on disposals were as follows:
($ in thousands) |  | 2019 |  | 2018 |  | 2017
HTM fixed income securities |  |  |  |  |  |  |  |  |
Gains |  | $ | 1 |  |  | 2 |  |  | 44 |
Losses |  | (15 | ) |  | — |  |  | (1 | )
AFS fixed income securities |  |  |  |  |  |  |  |  |
Gains |  | 6,899 |  |  | 5,460 |  |  | 10,193 |
Losses |  | (4,975 | ) |  | (40,415 | ) |  | (3,292 | )
Equity securities |  |  |  |  |  |  |  |  |
Gains |  | 24,980 |  |  | 23,203 |  |  | 5,829 |
Losses |  | (136 | ) |  | (4,508 | ) |  | (1,200 | )
Short-term investments |  |  |  |  |  |
Gains |  | 24 |  |  | 7 |  |  | 2 |
Losses |  | (40 | ) |  | (10 | ) |  | (6 | )
Other investments |  |  |  |  |  |  |  |  |
Gains |  | 6 |  |  | — |  |  | 494 |
Losses |  | (29 | ) |  | (2,714 | ) |  | (859 | )
Total net realized investment gains (losses) |  | $ | 26,715 |  |  | (18,975 | ) |  | 11,204 |
Realized gains and losses on the sale of investments are determined on the basis of the cost of the specific investments sold. Proceeds from the sale of AFS fixed income securities were $594.7 million, $2,030.7 million, and $1,197.9 million in 2019, 2018, and 2017, respectively. Proceeds from sale of equity securities were $137.3 million, $113.3 million, and $38.0 million in 2019, 2018, and 2017, respectively. Net realized gains (losses) in the table above were driven by the following:
• | 2019: Opportunistic sales in our equity portfolio.
• | 2018: Higher trading volume driven by opportunistic sales in both our fixed income securities and equity portfolios.
• 2017: Higher trading volume in our fixed income securities portfolio related to a more active external investment management approach and opportunistic sales in our equity portfolio.

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