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Investments | 12 Months Ended
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Dec. 31, 2024
Investments [Abstract] |
Investments | Investments (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, 2024, 2023, and 2022:
($ in thousands) |  | 2024 |  | 2023 |  | 2022
AFS securities: |  |  |  |  |  |
Fixed income securities |  | $ | (316,796) |  |  | (353,288) |  |  | (527,926) |
Total AFS securities |  | (316,796) |  |  | (353,288) |  |  | (527,926) |
Short-term securities |  | 8 |  |  | 35 |  |  | 35 |
Total net unrealized gains (losses) |  | (316,788) |  |  | (353,253) |  |  | (527,891) |
Deferred income tax |  | 66,526 |  |  | 74,184 |  |  | 110,857 |
Net unrealized gains (losses), net of deferred income tax |  | (250,262) |  |  | (279,069) |  |  | (417,034) |
Increase (decrease) in net unrealized gains (losses) in OCI, net of deferred income tax |  | $ | 28,807 |  |  | 137,965 |  |  | (597,915) |
(b) Information regarding our AFS securities as of December 31, 2024 and December 31, 2023 were as follows:
December 31, 2024 |  |  |  |  |  |  |  |  |  |
|  | 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 |  | $ | 139,906 |  |  | — |  |  | 2 |  |  | (19,753) |  |  | 120,155 |
Foreign government |  | 10,656 |  |  | (21) |  |  | — |  |  | (1,333) |  |  | 9,302 |
Obligations of states and political subdivisions |  | 483,609 |  |  | (570) |  |  | 550 |  |  | (32,359) |  |  | 451,230 |
Corporate securities |  | 3,181,046 |  |  | (14,924) |  |  | 25,259 |  |  | (123,201) |  |  | 3,068,180 |
CLO and other ABS |  | 2,065,611 |  |  | (4,889) |  |  | 22,116 |  |  | (49,689) |  |  | 2,033,149 |
RMBS |  | 1,812,744 |  |  | (11,544) |  |  | 3,880 |  |  | (112,722) |  |  | 1,692,358 |
CMBS |  | 782,506 |  |  | — |  |  | 1,478 |  |  | (31,024) |  |  | 752,960 |
Total AFS fixed income securities |  | $ | 8,476,078 |  |  | (31,948) |  |  | 53,285 |  |  | (370,081) |  |  | 8,127,334 |
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 |
The following tables provide a roll forward of the ACL on our AFS fixed income securities for the years indicated:
2024 | 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 | $ | 35 |  |  | — |  |  | — |  |  | (7) |  |  | (7) |  |  | — |  |  | 21 |
Obligations of states and political subdivisions | 669 |  |  | 222 |  |  | — |  |  | (275) |  |  | (46) |  |  | — |  |  | 570 |
Corporate securities | 12,999 |  |  | 4,952 |  |  | — |  |  | (1,861) |  |  | (1,157) |  |  | (9) |  |  | 14,924 |
CLO and other ABS | 2,854 |  |  | 1,376 |  |  | — |  |  | 846 |  |  | (187) |  |  | — |  |  | 4,889 |
RMBS | 11,649 |  |  | 11 |  |  | — |  |  | 370 |  |  | (486) |  |  | — |  |  | 11,544 |
CMBS | 6 |  |  | — |  |  | — |  |  | (6) |  |  | — |  |  | — |  |  | — |
Total AFS fixed income securities | $ | 28,212 |  |  | 6,561 |  |  | — |  |  | (933) |  |  | (1,883) |  |  | (9) |  |  | 31,948 |
2023 | 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 | $ | 284 |  |  | — |  |  | — |  |  | (249) |  |  | — |  |  | — |  |  | 35 |
Obligations of states and political subdivisions | 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 |
During 2024 or 2023, we had no write-offs or recoveries of our AFS fixed income securities. 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 $74.3 million as of December 31, 2024, and $64.6 million as of December 31, 2023. We did not record any material write-offs of accrued interest during 2024 or 2023. (c) Quantitative information about unrealized losses on our AFS portfolio follows:
December 31, 2024 |  | Less than 12 months |  | 12 months or longer |  | Total
($ in thousands) |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
AFS fixed income securities: |  |  |  |  |  |  |  |  |  |  |  |
U.S. government and government agencies |  | $ | 14,708 |  |  | (70) |  |  | 105,326 |  |  | (19,683) |  |  | 120,034 |  |  | (19,753) |
Foreign government |  | — |  |  | — |  |  | 9,302 |  |  | (1,333) |  |  | 9,302 |  |  | (1,333) |
Obligations of states and political subdivisions |  | 153,996 |  |  | (3,539) |  |  | 247,735 |  |  | (28,820) |  |  | 401,731 |  |  | (32,359) |
Corporate securities |  | 684,999 |  |  | (11,699) |  |  | 1,083,392 |  |  | (111,502) |  |  | 1,768,391 |  |  | (123,201) |
CLO and other ABS |  | 349,786 |  |  | (6,296) |  |  | 601,057 |  |  | (43,393) |  |  | 950,843 |  |  | (49,689) |
RMBS |  | 714,061 |  |  | (21,206) |  |  | 677,574 |  |  | (91,516) |  |  | 1,391,635 |  |  | (112,722) |
CMBS |  | 184,394 |  |  | (2,870) |  |  | 417,472 |  |  | (28,154) |  |  | 601,866 |  |  | (31,024) |
Total AFS fixed income securities |  | $ | 2,101,944 |  |  | (45,680) |  |  | 3,141,858 |  |  | (324,401) |  |  | 5,243,802 |  |  | (370,081) |
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) |
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, 2024, compared to December 31, 2023, was driven by a tightening of credit spreads, partially offset by an increase in benchmark U.S. Treasury rates. 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, 2024. 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 held-to-maturity ("HTM") fixed income securities at December 31, 2024, 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 |  | $ | 593,487 |  |  | 1,152 |  |  | 1,176 |
Due after one year through five years |  | 3,556,760 |  |  | 15,767 |  |  | 15,461 |
Due after five years through 10 years |  | 3,024,602 |  |  | 8,456 |  |  | 8,098 |
Due after 10 years |  | 952,485 |  |  | — |  |  | — |
Total fixed income securities |  | $ | 8,127,334 |  |  | 25,375 |  |  | 24,735 |
(e) The following table summarizes our alternative investment portfolio by strategy:
|  | December 31, 2024 |  | December 31, 2023
($ in thousands) |  | Carrying Value |  | Remaining Commitment |  | Maximum Exposure to Loss |  | Carrying Value |  | Remaining Commitment |  | Maximum Exposure to Loss
Alternative investments |  |  |  |  |  |  |  |  |  |  |  |
Private equity |  | $ | 346,020 |  |  | 182,355 |  |  | 528,375 |  |  | 301,759 |  |  | 131,885 |  |  | 433,644 |
Private credit |  | 52,100 |  |  | 99,185 |  |  | 151,285 |  |  | 54,500 |  |  | 89,401 |  |  | 143,901 |
Real assets |  | 42,776 |  |  | 38,950 |  |  | 81,726 |  |  | 39,520 |  |  | 33,040 |  |  | 72,560 |
Total alternative investments |  | $ | 440,896 |  |  | 320,490 |  |  | 761,386 |  |  | 395,779 |  |  | 254,326 |  |  | 650,105 |
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 2024 or 2023. The following is a description of our alternative investment strategies: Our private equity strategy includes the following: •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. 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 leveraged buyouts ("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: •I nfrastructure: 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) |  | 2024 |  | 2023
Investments |  | $ | 165,301 |  |  | 142,411 |
Total assets |  | 173,694 |  |  | 146,844 |
Total liabilities |  | 26,713 |  |  | 15,854 |
Total partners’ capital |  | 146,981 |  |  | 130,990 |
Income Statement Information |  |  |  |  |  |
($ in millions) |  | 2024 |  | 2023 |  | 2022
Net investment income (loss) |  | $ | 186 |  |  | 178 |  |  | 765 |
Realized gains |  | 7,099 |  |  | 5,845 |  |  | 12,590 |
Net change in unrealized appreciation (depreciation) |  | 9,745 |  |  | 5,810 |  |  | (5,215) |
Net income |  | $ | 17,030 |  |  | 11,833 |  |  | 8,140 |
Alternative investment income included in "Net investment income earned" on our Consolidated Statements of Income |  | 37.1 |  |  | 26.8 |  |  | 23.0 |
(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, 2024, or December 31, 2023. (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, 2024 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, 2024:
($ in millions) |  | FHLBI Collateral |  | FHLBNY Collateral |  | Regulatory Deposits |  | Total
U.S. government and government agencies |  | $ | — |  |  | — |  |  | 21.4 |  |  | 21.4 |
Obligations of states and political subdivisions |  | — |  |  | — |  |  | 3.0 |  |  | 3.0 |
RMBS |  | 63.6 |  |  | 21.7 |  |  | — |  |  | 85.3 |
CMBS |  | 1.5 |  |  | 8.1 |  |  | — |  |  | 9.6 |
Total pledged as collateral |  | $ | 65.1 |  |  | 29.8 |  |  | 24.4 |  |  | 119.3 |
(h) The components of pre-tax net investment income earned were as follows:
($ in thousands) |  | 2024 |  | 2023 |  | 2022
Fixed income securities |  | $ | 389,198 |  |  | 345,886 |  |  | 259,918 |
CMLs |  | 12,448 |  |  | 9,336 |  |  | 5,555 |
Equity securities |  | 18,295 |  |  | 9,395 |  |  | 13,554 |
Short-term investments |  | 20,274 |  |  | 14,818 |  |  | 3,997 |
Alternative investments |  | 37,053 |  |  | 26,777 |  |  | 23,003 |
Other investments |  | 864 |  |  | 650 |  |  | 258 |
Investment expenses |  | (21,081) |  |  | (18,212) |  |  | (18,130) |
Net investment income earned |  | $ | 457,051 |  |  | 388,650 |  |  | 288,155 |
(i) The following table summarizes net realized and unrealized investment gains and losses for the periods indicated:
($ in thousands) |  | 2024 |  | 2023 |  | 2022
Gross gains on sales |  | $ | 12,839 |  |  | 5,896 |  |  | 28,419 |
Gross losses on sales |  | (6,563) |  |  | (30,760) |  |  | (60,055) |
Net realized gains (losses) on disposals |  | 6,276 |  |  | (24,864) |  |  | (31,636) |
Net unrealized gains (losses) on equity securities |  | (1,964) |  |  | 9,510 |  |  | (32,127) |
Net credit loss benefit (expense) on fixed income securities, AFS |  | (5,628) |  |  | 12,898 |  |  | (39,169) |
Net credit loss benefit (expense) on fixed income securities, HTM |  | — |  |  | — |  |  | 63 |
Net credit loss benefit (expense) on CMLs |  | 217 |  |  | (175) |  |  | (116) |
Losses on securities for which we have the intent to sell |  | (1,248) |  |  | (921) |  |  | (11,823) |
Other realized gains (losses) |  | (602) |  |  | — |  |  | — |
Net realized and unrealized investment gains (losses) |  | $ | (2,949) |  |  | (3,552) |  |  | (114,808) |
The decrease in net realized and unrealized investment losses in 2023 compared to 2022 was primarily due to (i) a credit loss benefit recorded on our AFS fixed income securities portfolio in 2023 compared to credit loss expense recorded in 2022, and (ii) an increase in valuations in the public equities market. The credit loss benefit in 2023 reflected 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. Net unrealized gains and losses recognized in income on equity securities, as reflected in the table above, included the following:
($ in thousands) |  | 2024 |  | 2023 |  | 2022
Unrealized gains (losses) recognized in income on equity securities: |  |  |  |  |  |
On securities remaining in our portfolio at end of period |  | $ | (66) |  |  | 3,593 |  |  | (10,454) |
On securities sold in period |  | (1,898) |  |  | 5,917 |  |  | (21,673) |
Total unrealized gains (losses) recognized in income on equity securities |  | $ | (1,964) |  |  | 9,510 |  |  | (32,127) |
Proceeds from the sales of AFS fixed income securities were $917.3 million, $1,221.9 million, and $1,211.7 million in 2024, 2023, and 2022, respectively. Proceeds from the sales of equity securities were $19.4 million, $53.3 million, and $186.1 million in 2024, 2023, and 2022, respectively.

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