
June 30, 2021
($ in thousands)	Cost/ Amortized Cost		Allowance for Credit Losses	Unrealized Gains	Unrealized Losses	Fair Value
AFS fixed income securities:
U.S. government and government agencies	$	132,506	—	4,319	(631)	136,194
Foreign government	14,578		(49)	819	(73)	15,275
Obligations of states and political subdivisions	1,119,039		(38)	81,003	(103)	1,199,901
Corporate securities	2,325,858		(3,477)	146,061	(1,555)	2,466,887
Collateralized loan obligations ("CLO") and other asset-backed securities ("ABS")	1,266,236		(1,399)	20,110	(2,724)	1,282,223
Residential mortgage-backed securities ("RMBS")	820,650		(1,034)	35,655	(774)	854,497
Commercial mortgage-backed securities ("CMBS")	632,882		(14)	39,420	(865)	671,423
Total AFS fixed income securities	$	6,311,749	(6,011)	327,387	(6,725)	6,626,400


December 31, 2020
($ in thousands)	Cost/ Amortized Cost		Allowance for Credit Losses	Unrealized Gains	Unrealized Losses	Fair Value
AFS fixed income securities:
U.S. government and government agencies	$	110,038	—	6,239	(137)	116,140
Foreign government	16,801		(1)	1,569	(3)	18,366
Obligations of states and political subdivisions	1,159,588		(4)	87,564	(11)	1,247,137
Corporate securities	2,152,203		(2,782)	180,971	(2,340)	2,328,052
CLO and other ABS	1,014,820		(592)	20,166	(7,843)	1,026,551
RMBS	999,485		(561)	53,065	(201)	1,051,788
CMBS	620,582		(29)	48,348	(1,007)	667,894
Total AFS fixed income securities	$	6,073,517	(3,969)	397,922	(11,542)	6,455,928


Quarter ended June 30, 2021
($ in thousands)	Beginning Balance		Current Provision for Securities without Prior Allowance	Increase (Decrease) on Securities with Prior Allowance, excluding intent (or Requirement) to Sell Securities	Reductions for Securities Sold	Reductions for Securities Identified as Intent (or Requirement) to Sell during the Period	Ending Balance
Foreign government	$	56	—	(7)	—	—	49
Obligations of states and political subdivisions	201		—	(163)	—	—	38
Corporate securities	6,166		148	(2,403)	(373)	(61)	3,477
CLO and other ABS	1,470		—	(70)	(1)	—	1,399
RMBS	864		3	230	(63)	—	1,034
CMBS	24		4	(14)	—	—	14
Total AFS fixed income securities	$	8,781	155	(2,427)	(437)	(61)	6,011


Quarter ended June 30, 2020
($ in thousands)	Beginning Balance		Current Provision for Securities without Prior Allowance	Increase (Decrease) on Securities with Prior Allowance, excluding intent (or Requirement) to Sell Securities	Reductions for Securities Sold	Reductions for Securities Identified as Intent (or Requirement) to Sell during the Period	Ending Balance
Foreign government	$	21	—	7	—	—	28
Obligations of states and political subdivisions	29		15	(27)	—	—	17
Corporate securities	13,412		813	(5,686)	(395)	(67)	8,077
CLO and other ABS	1,565		27	(145)	(58)	—	1,389
RMBS	722		—	124	(15)	—	831
CMBS	38		8	7	—	—	53
Total AFS fixed income securities	$	15,787	863	(5,720)	(468)	(67)	10,395


Six Months ended June 30, 2021
($ in thousands)	Beginning Balance		Current Provision for Securities without Prior Allowance	Increase (Decrease) on Securities with Prior Allowance, excluding intent (or Requirement) to Sell Securities	Reductions for Securities Sold	Reductions for Securities Identified as Intent (or Requirement) to Sell during the Period	Ending Balance
Foreign government	$	1	49	(1)	—	—	49
Obligations of states and political subdivisions	4		25	9	—	—	38
Corporate securities	2,782		2,185	(909)	(520)	(61)	3,477
CLO and other ABS	592		941	(116)	(18)	—	1,399
RMBS	561		618	(68)	(77)	—	1,034
CMBS	29		2	(17)	—	—	14
Total AFS fixed income securities	$	3,969	3,820	(1,102)	(615)	(61)	6,011


Six Months ended June 30, 2020
($ in thousands)	Beginning Balance		Current Provision for Securities without Prior Allowance	Increase (Decrease) on Securities with Prior Allowance, excluding intent (or Requirement) to Sell Securities	Reductions for Securities Sold	Reductions for Securities Identified as Intent (or Requirement) to Sell during the Period	Ending Balance
Foreign government	$	—	28	—	—	—	28
Obligations of states and political subdivisions	—		17	—	—	—	17
Corporate securities	—		8,539	—	(395)	(67)	8,077
CLO and other ABS	—		1,447	—	(58)	—	1,389
RMBS	—		846	—	(15)	—	831
CMBS	—		53	—	—	—	53
Total AFS fixed income securities	$	—	10,930	—	(468)	(67)	10,395

For information on our methodology and significant inputs used to measure expected credit losses, our accounting policy for recognizing write-offs of uncollectible amounts, and our treatment of accrued interest, refer to Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2020 Annual Report. Accrued interest on AFS securities was $44.9 million as of June 30, 2021, and $43.8 million as of December 31, 2020. We did not record any write-offs during 2021 or 2020.


June 30, 2021	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	$	17,582	(631)	—	—	17,582	(631)
Foreign government	3,122		(73)	—	—	3,122	(73)
Obligations of states and political subdivisions	7,222		(103)	—	—	7,222	(103)
Corporate securities	84,676		(880)	6,163	(675)	90,839	(1,555)
CLO and other ABS	415,284		(1,699)	71,126	(1,025)	486,410	(2,724)
RMBS	84,141		(774)	—	—	84,141	(774)
CMBS	54,258		(704)	14,511	(161)	68,769	(865)
Total AFS fixed income securities	$	666,285	(4,864)	91,800	(1,861)	758,085	(6,725)


December 31, 2020	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	$	11,519	(137)	—	—	11,519	(137)
Foreign government	1,122		(3)	—	—	1,122	(3)
Obligations of states and political subdivisions	2,223		(11)	—	—	2,223	(11)
Corporate securities	65,187		(2,152)	2,400	(188)	67,587	(2,340)
CLO and other ABS	261,746		(2,995)	165,661	(4,848)	427,407	(7,843)
RMBS	18,227		(194)	1,181	(7)	19,408	(201)
CMBS	55,482		(616)	16,093	(391)	71,575	(1,007)
Total AFS fixed income securities	$	415,506	(6,108)	185,335	(5,434)	600,841	(11,542)

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. The decrease in gross unrealized losses during Six Months 2021 was driven by an increase in longer-dated benchmark United States Treasury rates, partially offset by the tightening of credit spreads. Considering these factors and our review of these securities under our credit loss policy as described in Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2020 Annual Report, we have concluded that no allowance for credit loss is required on these balances. 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.

(c) Fixed income securities at June 30, 2021 are summarized below by contractual maturity. 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.


	AFS		HTM
($ in thousands)	Fair Value		Carrying Value	Fair Value
Due in one year or less	$	537,130	1,032	1,033
Due after one year through five years	3,365,039		14,971	15,808
Due after five years through 10 years	2,109,060		10,953	11,041
Due after 10 years	615,171		—	—
Total fixed income securities	$	6,626,400	26,956	27,882


Other Investments	June 30, 2021				December 31, 2020
($ in thousands)	Carrying Value		Remaining Commitment	Maximum Exposure to Loss1	Carrying Value	Remaining Commitment	Maximum Exposure to Loss1
Alternative Investments
Private equity	$	218,385	110,998	329,383	157,276	100,905	258,181
Private credit	58,674		96,132	154,806	54,017	98,330	152,347
Real assets	19,970		15,773	35,743	19,659	16,493	36,152
Total alternative investments	297,029		222,903	519,932	230,952	215,728	446,680
Other securities	33,450		—	33,450	35,370	—	35,370
Total other investments	$	330,479	222,903	553,382	266,322	215,728	482,050

1The maximum exposure to loss includes both the carry value of these investments and the related remaining 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.

We are contractually committed to make additional investments up to the remaining commitments stated above, but we do not have a material future obligation to fund losses or debts on behalf of these investments. We have not provided any non-contractual financial support at any time during 2021 or 2020.

The following table shows gross summarized financial information for our other investments portfolio, including the portion we do not own. The majority of these investments are carried under the equity method of accounting and report results to us on a one-quarter lag. The following table provides (i) the gross summarized financial statement information for these investments for the three and six-months ended March 31, and (ii) the portion of these results that are included in our Second Quarter and Six Months results:


Income Statement Information	Quarter ended June 30,			Six Months ended June 30,
($ in millions)	2021		2020	2021		2020
Net investment income	$	8.4	(3.1)	$	490.0	9.6
Realized gains	1,392.5		179.0	2,168.6		343.8
Net change in unrealized appreciation	4,948.9		(2,862.9)	9,579.7		(1,658.9)
Net income	$	6,349.8	(2,687.0)	$	12,238.3	(1,305.5)
Insurance Subsidiaries’ alternative investments income	$	29.9	(16.0)	$	50.1	(9.7)

(e) Certain Insurance Subsidiaries, as members of the Federal Home Loan Bank of Indianapolis ("FHLBI") and the Federal Home Loan Bank of New York ("FHLBNY"), have pledged certain AFS fixed income securities as collateral. Additionally, to comply with insurance laws, certain Insurance Subsidiaries have deposited certain securities with various state and regulatory agencies at June 30, 2021. We retain all rights regarding all securities pledged as collateral. The following table summarizes the market value of these securities at June 30, 2021:


($ in millions)	FHLBI Collateral		FHLBNY Collateral	State and Regulatory Deposits	Total
U.S. government and government agencies	$	—	—	21.6	21.6
Obligations of states and political subdivisions	—		—	5.0	5.0



RMBS	78.5		48.9	—	127.4
CMBS	6.7		15.6	—	22.3


Total pledged as collateral	$	85.2	64.5	26.6	176.3

(f) 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-backed investments, as of June 30, 2021, or December 31, 2020.


	Quarter ended June 30,			Six Months ended June 30,
($ in thousands)	2021		2020	2021		2020
Fixed income securities	$	52,608	51,079	$	105,431	101,332
Commercial mortgage loans ("CMLs")	695		156	1,209		218
Equity securities	2,982		2,023	5,470		3,575
Short-term investments	55		420	140		1,586
Other investments	32,860		(15,846)	50,293		(9,504)
Investment expenses	(5,469)		(3,388)	(9,096)		(6,796)
Net investment income earned	$	83,731	34,444	$	153,447	90,411

The increase in net investment income earned in Second Quarter 2021 and Six Months 2021 compared to the prior year periods were driven by the alternative investments in our other investments portfolio. The results reflect the improvement in the equity markets in the three and six-month periods ending March 31, 2021, as our results on these holdings are recorded on a one-quarter lag.


	Quarter ended June 30,			Six Months ended June 30,
($ in thousands)	2021		2020	2021		2020
Gross gains on sales	$	2,079	6,478	$	5,755	12,151
Gross losses on sales	(1,811)		(3,863)	(6,282)		(5,436)
Net realized gains (losses) on disposals	268		2,615	(527)		6,715
Net unrealized gains (losses) on equity securities	7,661		5,701	18,941		(11,436)
Net credit loss benefit (expense) on fixed income securities, AFS	2,272		4,923	(2,725)		(10,864)
Net credit loss (expense) benefit on fixed income securities, HTM	(53)		1	(60)		1
Net credit loss benefit (expense) on CMLs	—		22	—		(218)
Losses on securities for which we have the intent to sell	(91)		(613)	(453)		(16,215)
Net realized and unrealized gains (losses)	$	10,057	12,649	$	15,176	(32,017)


	Quarter ended June 30,			Six Months ended June 30,
($ in thousands)	2021		2020	2021		2020
Unrealized gains (losses) recognized in income on equity securities:
On securities remaining in our portfolio at period end	$	7,458	5,701	$	16,942	(11,439)
On securities sold during period	203		—	1,999		3
Total unrealized gains (losses) recognized in income on equity securities	$	7,661	5,701	$	18,941	(11,436)

The improvement in net realized and unrealized gains in Six Months 2021 as compared to Six Months 2020 was primarily driven by (i) unrealized gains on our equity securities compared to unrealized losses last year, which were driven by COVID-19-related market disruption, and (ii) lower intent-to-sell losses as we provided our investment managers significant trading flexibility last year given market conditions.