Investments

12 Months Ended

Dec. 31, 2022

Investments

The following table presents gains (losses) due to changes in fair value of investments that are measured at fair value pursuant to application of the fair value option:


	Year Ended December 31,
	2022		2021		2020
	(Amounts in thousands)
Fixed maturity securities	$	(260,223)	$	(39,649)	$	41,394
Equity securities	(185,694)		107,701		32,232
Short-term investments	88		(141)		(1,014)
Total gains	$	(445,829)	$	67,911	$	72,612

The following table presents gross gains (losses) realized on the sales of investments:


	Year Ended December 31,
	2022						2021						2020
	(Amounts in thousands)
	Gross Realized Gains		Gross Realized Losses		Net		Gross Realized Gains		Gross Realized Losses		Net		Gross Realized Gains		Gross Realized Losses		Net
Fixed maturity securities	$	863	$	(71,425)	$	(70,562)	$	2,306	$	(6,690)	$	(4,384)	$	1,884	$	(4,296)	$	(2,412)
Equity securities	86,168		(61,252)		24,916		64,061		(18,826)		45,235		75,591		(80,134)		(4,543)
Short-term investments	8		(2,500)		(2,492)		236		(381)		(145)		146		(2,438)		(2,292)

Contractual Maturity

At December 31, 2022, fixed maturity holdings rated below investment grade and non-rated comprised 0.6% of total investments at fair value. Additionally, the Company owns securities that are credit enhanced by financial guarantors that are subject to uncertainty related to market perception of the guarantors’ ability to perform. Determining the estimated fair value of municipal bonds could become more difficult should markets for these securities become illiquid.

The following table presents the estimated fair values of the Company's fixed maturity securities at December 31, 2022 by contractual maturity. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


	Estimated Fair Value
	(Amounts in thousands)
Fixed maturity securities:
Due in one year or less	$	149,255
Due after one year through five years	977,997
Due after five years through ten years	633,232
Due after ten years	2,327,827
Total	$	4,088,311

Investment Income

The following table presents a summary of net investment income:


	Year Ended December 31,
	2022		2021		2020
	(Amounts in thousands)
Fixed maturity securities	$	127,336	$	100,001	$	100,166
Equity securities	43,495		35,064		37,598
Cash and Short-term investments	3,495		1,059		2,822
Total investment income	$	174,326	$	136,124	$	140,586
Less: investment expense	(5,970)		(6,397)		(5,728)
Net investment income	$	168,356	$	129,727	$	134,858