(a) Net unrealized gains and losses on investments included in "Other comprehensive income (loss)" ("OCI") in the Consolidated Statements of Stockholders' Equity by asset class were as follows for the years ended December 31, 2023, 2022, and 2021:


($ in thousands)	2023		2022	2021
AFS securities:
Fixed income securities	$	(353,288)	(527,926)	228,947

Total AFS securities	(353,288)		(527,926)	228,947

Held-to-Maturity ("HTM") securities:
Fixed income securities	—		—	(4)
Total HTM securities	—		—	(4)

Short-term securities	35		35	20

Total net unrealized gains (losses)	(353,253)		(527,891)	228,963
Deferred income tax	74,184		110,857	(48,082)
Net unrealized gains (losses), net of deferred income tax	(279,069)		(417,034)	180,881



Increase (decrease) in net unrealized gains (losses) in OCI, net of deferred income tax	$	137,965	(597,915)	(124,370)


December 31, 2023
	Cost/
	Amortized		Allowance for	Unrealized	Unrealized	Fair
($ in thousands)	Cost		Credit Losses	Gains	Losses	Value
AFS fixed income securities:
U.S. government and government agencies	$	223,157	—	139	(18,261)	205,035
Foreign government	11,140		(35)	—	(1,302)	9,803
Obligations of states and political subdivisions	612,938		(669)	2,623	(28,927)	585,965
Corporate securities	2,834,048		(12,999)	28,078	(137,888)	2,711,239
CLO and other ABS	1,911,831		(2,854)	11,855	(86,005)	1,834,827
RMBS	1,568,960		(11,649)	6,023	(85,851)	1,477,483
CMBS	718,623		(6)	1,358	(45,130)	674,845
Total AFS fixed income securities	$	7,880,697	(28,212)	50,076	(403,364)	7,499,197


December 31, 2022
	Cost/
	Amortized		Allowance for		Unrealized	Unrealized	Fair
($ in thousands)	Cost		Credit Losses		Gains	Losses	Value
AFS fixed income securities:
U.S. government and government agencies	$	209,528	—		37	(20,326)	189,239
Foreign government	11,199		(284)		—	(1,307)	9,608
Obligations of states and political subdivisions	965,231		(1,024)		1,812	(48,001)	918,018
Corporate securities	2,558,655		(30,330)		3,509	(196,809)	2,335,025
CLO and other ABS	1,607,660		(2,375)		2,408	(121,720)	1,485,973
RMBS	1,169,546		(11,597)		1,148	(99,265)	1,059,832
CMBS	663,935		(111)		348	(49,760)	614,412
Total AFS fixed income securities	$	7,185,754	$	(45,721)	9,262	(537,188)	6,612,107


2023	Beginning Balance		Current Provision for Securities without Prior Allowance	Initial Allowance for Purchased Credit Deteriorated Assets with Credit Deterioration	Increase (Decrease) on Securities with Prior Allowance, excluding intent (or Requirements) to Sell Securities	Reductions for Securities Sold	Reductions for Securities Identified as Intent (or Requirement) to Sell during the Period	Ending Balance
($ in thousands)
Foreign government	$	284	—	—	(249)	—	—	35
Obligations of states and political subdivisons	1,024		48	—	(281)	(122)	—	669
Corporate securities	30,330		3,457	—	(16,879)	(3,638)	(271)	12,999
CLO and other ABS	2,375		619	—	(116)	(24)	—	2,854
RMBS	11,597		17	—	447	(412)	—	11,649
CMBS	111		1	—	38	(144)	—	6
Total AFS fixed income securities	$	45,721	4,142	—	(17,040)	(4,340)	(271)	28,212


2022	Beginning Balance		Current Provisions for Securities without Prior Allowance	Initial Allowance for Purchased Credit Deteriorated Assets with Credit Deterioration	Increase (Decrease) on Securities with Prior Allowance, excluding intent (or Requirements) to Sell Securities	Reductions for Securities Sold	Reductions for Securities Identified as Intent (or Requirement) to Sell during the Period	Ending Balance
($ in thousands)
Foreign government	$	46	291	—	4	(57)	—	284
Obligations of states and political subdivisons	137		1,087	—	(6)	(194)	—	1,024
Corporate securities	6,682		30,670	—	3,714	(6,902)	(3,834)	30,330
CLO and other ABS	939		2,158	—	(652)	(50)	(20)	2,375
RMBS	1,909		245	8,318	1,558	(433)	—	11,597
CMBS	11		110	—	(10)	—	—	111
Total AFS fixed income securities	$	9,724	34,561	8,318	4,608	(7,636)	(3,854)	45,721

As disclosed in Note 2. "Summary of Significant Accounting Policies," we do not evaluate accrued interest on our AFS securities for expected credit loss as we write-off these balances in a timely manner. Accrued interest on AFS securities was $64.6 million as of December 31, 2023, and $56.4 million as of December 31, 2022. We did not record any (i) write-offs of accrued interest during 2023, or (ii) material write-offs in 2022.


December 31, 2023	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	$	77,698	(188)	108,578	(18,073)	186,276	(18,261)
Foreign government	1,552		(87)	8,251	(1,215)	9,803	(1,302)
Obligations of states and political subdivisions	137,031		(962)	290,964	(27,965)	427,995	(28,927)
Corporate securities	263,423		(6,369)	1,439,422	(131,519)	1,702,845	(137,888)
CLO and other ABS	278,940		(7,120)	984,175	(78,885)	1,263,115	(86,005)
RMBS	351,976		(4,765)	757,914	(81,086)	1,109,890	(85,851)
CMBS	130,189		(2,995)	471,256	(42,135)	601,445	(45,130)
Total AFS fixed income securities	$	1,240,809	(22,486)	4,060,560	(380,878)	5,301,369	(403,364)


December 31, 2022	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	$	166,975	(13,658)	16,011	(6,668)	182,986	(20,326)
Foreign government	5,573		(608)	2,456	(699)	8,029	(1,307)
Obligations of states and political subdivisions	681,795		(43,767)	16,618	(4,234)	698,413	(48,001)
Corporate securities	1,889,492		(164,197)	133,223	(32,612)	2,022,715	(196,809)
CLO and other ABS	916,423		(69,155)	411,283	(52,565)	1,327,706	(121,720)
RMBS	887,229		(76,432)	108,041	(22,833)	995,270	(99,265)
CMBS	512,953		(37,815)	77,181	(11,945)	590,134	(49,760)
Total AFS fixed income securities	$	5,060,440	(405,632)	764,813	(131,556)	5,825,253	(537,188)

We currently do not intend to sell any of the securities summarized in the tables above, nor do we believe we will be required to sell any of them. The decrease in gross unrealized losses at December 31, 2023, compared to December 31, 2022, was driven by a decrease in benchmark U.S. Treasury rates and a tightening of credit spreads, with the decrease in interest rates having the most significant impact. Considering these factors and our review of these securities under our credit loss policy as described in Note 2. “Summary of Significant Accounting Policies” of this Form 10-K, we have concluded that no ACL is required on these balances beyond the ACL recorded as of December 31, 2023. This conclusion reflects our current judgment about the financial position and future prospects of the entities that issued the investment security and underlying collateral.

(d) AFS and HTM fixed income securities at December 31, 2023, by contractual maturity are shown below. The maturities of RMBS, CMBS, CLO and other ABS securities were calculated using each security's estimated average life. 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	$	511,125	—	—
Due after one year through five years	3,450,675		13,624	13,307
Due after five years through 10 years	2,817,046		9,076	8,616
Due after 10 years	720,351		—	—
Total fixed income securities	$	7,499,197	22,700	21,923


	December 31, 2023				December 31, 2022
($ in thousands)	Carrying Value		Remaining Commitment	Maximum Exposure to Loss	Carrying Value	Remaining Commitment	Maximum Exposure to Loss
Alternative investments
Private equity	$	301,759	131,885	433,644	280,980	134,676	415,656
Private credit	54,500		89,401	143,901	54,866	89,481	144,347
Real assets	39,520		33,040	72,560	35,470	21,945	57,415




Total alternative investments	$	395,779	254,326	650,105	371,316	246,102	617,418

We are contractually committed to make additional investments up to the remaining commitments stated above. We did not provide any non-contractual financial support during 2023 or 2022.

•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.

•Venture Capital: In general, these investments are made principally by investing in equity securities of startup companies and small-to-medium sized privately-held corporations with strong long-term growth potential. This strategy makes private equity investments in seed stage, early stage, late stage, and growth equity partnerships.

•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.

•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 partnership positions can be sold on the secondary market. Once liquidation is triggered by clauses within the limited partnership agreements or at the funds’ stated end date, we 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 of, or income generated by, the limited partnerships.

The following tables show gross summarized financial information for our alternative investments portfolio, including the portion we do not own. 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)	2023		2022
Investments	$	142,411	114,038
Total assets	146,844		128,158
Total liabilities	15,854		15,464
Total partners’ capital	130,990		112,694


Income Statement Information
($ in millions)	2023		2022	2021
Net investment income (loss)	$	178	765	653
Realized gains	5,845		12,590	6,121
Net change in unrealized appreciation (depreciation)	5,810		(5,215)	26,877
Net income	$	11,833	8,140	33,651
Alternative investment income included in "Net investment income earned" on our Consolidated Statements of Income	26.8		23.0	117.7

(f) We did not have exposure to any credit concentration risk of a single issuer greater than 10% of our stockholders' equity, other than to certain U.S. government agencies, as of December 31, 2023, or December 31, 2022.

(g) We have pledged certain AFS fixed income securities as collateral related to our borrowing relationships with the Federal Home Loan Bank of Indianapolis ("FHLBI") and the Federal Home Loan Bank of New York ("FHLBNY"). In addition, we had certain securities on deposit with various state and regulatory agencies at December 31, 2023 to comply with insurance laws. We retain all rights regarding all securities pledged as collateral.


($ in millions)	FHLBI Collateral		FHLBNY Collateral	Regulatory Deposits	Total
U.S. government and government agencies	$	—	—	19.9	19.9
Obligations of states and political subdivisions	—		—	3.5	3.5

RMBS	69.2		25.3	—	94.5
CMBS	2.5		8.6	—	11.1
Total pledged as collateral	$	71.7	33.9	23.4	129.0


($ in thousands)	2023		2022	2021
Fixed income securities	$	345,886	259,918	209,709
CMLs	9,336		5,555	2,743
Equity securities	9,395		13,554	15,920
Short-term investments	14,818		3,997	260
Alternative investments	26,777		23,003	117,701
Other investments	650		258	359
Investment expenses	(18,212)		(18,130)	(20,103)
Net investment income earned	$	388,650	288,155	326,589


($ in thousands)	2023		2022	2021
Gross gains on sales	$	5,896	28,419	15,284
Gross losses on sales	(30,760)		(60,055)	(8,140)
Net realized gains (losses) on disposals	(24,864)		(31,636)	7,144
Net unrealized gains (losses) on equity securities	9,510		(32,127)	17,881
Net credit loss benefit (expense) on fixed income securities, AFS	12,898		(39,169)	(6,858)
Net credit loss benefit (expense) on fixed income securities, HTM	—		63	(49)
Net credit loss benefit (expense) on CMLs	(175)		(116)	—
Losses on securities for which we have the intent to sell	(921)		(11,823)	(519)
Net realized and unrealized investment gains (losses)	$	(3,552)	(114,808)	17,599

The decrease in net realized and unrealized investment losses in 2023 compared to 2022 was primarily driven by (i) improved valuations in the public equity markets, and (ii) an improvement in expected credit losses in 2023 reflecting a decrease in benchmark U.S. Treasury rates and, to a lesser extent, a tightening of credit spreads.

The increase in net realized and unrealized investment losses in 2022 compared to 2021 was primarily driven by (i) a decrease in valuations reflecting the public equities market in 2022, (ii) active trading of our fixed income securities in an effort to opportunistically increase yield given the rising interest rate environment in 2022, and (iii) higher credit loss expense on our AFS fixed income securities portfolio.


($ in thousands)	2023		2022	2021
Unrealized gains (losses) recognized in income on equity securities:
On securities remaining in our portfolio at end of period	$	3,593	(10,454)	16,473
On securities sold in period	5,917		(21,673)	1,408
Total unrealized gains (losses) recognized in income on equity securities	$	9,510	(32,127)	17,881

Proceeds from the sales of AFS fixed income securities were $1,221.9 million, $1,211.7 million, and $502.9 million in 2023, 2022, and 2021, respectively. Proceeds from the sales of equity securities were $53.3 million, $186.1 million, and $99.2 million in 2023, 2022, and 2021, respectively.