XML 23 R11.htm IDEA: XBRL DOCUMENT v3.23.1

Investments

3 Months Ended

Mar. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Investments

Investments

Available-for-Sale Securities

The following table provides the amortized cost and fair value of available-for-sale debt securities as of the dates presented (in thousands):

			March 31, 2023
			Amortized Cost						Allowance for Expected Credit Losses						Gross Unrealized Gains						Gross Unrealized Losses						Fair Value
Debt Securities:
U.S. government obligations and agencies			$	16,840					$	—					$	100					$	(763)					$	16,177
Corporate bonds			782,613						(622)						366						(79,506)						702,851
Mortgage-backed and asset-backed securities			319,916						—						200						(35,669)						284,447
Municipal bonds			16,149						(2)						15						(2,082)						14,080
Redeemable preferred stock			10,860						(187)						—						(1,673)						9,000
Total			$	1,146,378					$	(811)					$	681					$	(119,693)					$	1,026,555

			December 31, 2022
			Amortized Cost			Allowance for Expected Credit Losses						Gross Unrealized Gains						Gross Unrealized Losses						Fair Value
Debt Securities:
U.S. government obligations and agencies			$	12,602		$	—					$	—					$	(938)					$	11,664
Corporate bonds			788,737			(729)						130						(93,077)						695,061
Mortgage-backed and asset-backed securities			327,166			—						148						(39,707)						287,607
Municipal bonds			14,924			(2)						—						(2,551)						12,371
Redeemable preferred stock			9,423			(189)						—						(1,311)						7,923
Total			$	1,152,852		$	(920)					$	278					$	(137,584)					$	1,014,626

The following table provides the credit quality of available-for-sale debt securities with contractual maturities as of the dates presented (dollars in thousands):

						March 31, 2023												December 31, 2022
Average Credit Ratings						Fair Value						% of Total  Fair Value						Fair Value						% of Total  Fair Value
AAA						$	304,913					29.7		%				$	297,475					29.3		%
AA						158,404						15.4		%				154,975						15.3		%
A						334,519						32.6		%				327,427						32.3		%
BBB						227,056						22.1		%				232,316						22.9		%
No Rating Available						1,663						0.2		%				2,433						0.2		%
Total						$	1,026,555					100.0		%				$	1,014,626					100.0		%

The table above includes credit quality ratings by Standard and Poor’s Rating Services, Inc. (“S&P”), Moody’s Investors Service, Inc. and Fitch Ratings, Inc. The Company has presented the highest rating of the three rating agencies for each investment position.

The following table summarizes the amortized cost and fair value of mortgage-backed and asset-backed securities as of the dates presented (in thousands):

			March 31, 2023												December 31, 2022
			Amortized Cost						Fair Value						Amortized Cost						Fair Value
Mortgage-backed securities:
Agency			$	159,078					$	137,987					$	157,672					$	133,928
Non-agency			60,159						50,711						60,328						50,478
Asset-backed securities:
Auto loan receivables			54,531						52,351						62,128						59,370
Credit card receivables			1,657						1,618						657						612
Other receivables			44,491						41,780						46,381						43,219
Total			$	319,916					$	284,447					$	327,166					$	287,607

The following tables summarize available-for-sale debt securities, aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position, for which no allowance for expected credit losses has been recorded as of the dates presented (in thousands):

			March 31, 2023
			Less Than 12 Months																		12 Months or Longer
			Number of Issues						Fair Value						Unrealized Losses						Number of Issues						Fair Value						Unrealized Losses
Debt Securities:
U.S. government obligations and agencies			2						$	523					$	(1)					6						$	11,816					$	(762)
Corporate bonds			22						20,332						(421)						258						319,002						(39,830)
Mortgage-backed and asset-backed securities			36						39,815						(1,073)						172						227,174						(34,596)
Municipal bonds			—						—						—						3						6,900						(1,179)
Redeemable preferred stock			1						489						(69)						1						101						(45)
Total			61						$	61,159					$	(1,564)					440						$	564,993					$	(76,412)

			December 31, 2022
			Less Than 12 Months																		12 Months or Longer
			Number of Issues						Fair Value						Unrealized Losses						Number of Issues						Fair Value						Unrealized Losses
Debt Securities:
U.S. government obligations and agencies			2						$	2,721					$	(110)					5						$	8,943					$	(828)
Corporate bonds			40						26,563						(2,910)						247						325,992						(46,451)
Mortgage-backed and asset-backed securities			64						52,751						(2,974)						146						219,189						(36,733)
Municipal bonds			—						—						—						3						6,621						(1,458)
Redeemable preferred stock			1						95						(51)						—						—						—
Total			107						$	82,130					$	(6,045)					401						$	560,745					$	(85,470)

Unrealized losses on available-for-sale debt securities in the above table as of March 31, 2023 have not been recognized into income as credit losses because the issuers are of high credit quality (investment grade securities), management does not intend to sell nor does it believe it is more likely than not it will be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates and other market conditions. There were no material factors impacting any one category or specific security requiring an accrual for credit loss. The issuers continue to make principal and interest payments on the bonds. The fair value is expected to recover as the bonds approach maturity.

The following table presents a reconciliation of the beginning and ending balances for expected credit losses on available-for-sale debt securities (in thousands):

						Corporate Bonds												Municipal Bonds						Redeemable  Preferred Stock						Total
Balance, December 31, 2021						$	371											$	1					$	117					$	489
Provision for (or reversal of) credit loss expense						358												1						72						431
Balance, December 31, 2022						729												2						189						920
Provision for (or reversal of) credit loss expense						(107)												—						(2)						(109)
Balance, March 31, 2023						$	622											$	2					$	187					$	811

For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or is more likely than not, that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For available-for-sale debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by rating agencies, market sentiment and trends and adverse conditions specifically related to the security, among other quantitative and qualitative factors utilized for establishing an estimate for credit losses. If the assessment indicates that a credit loss exists, the present values of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income.

Changes in the allowance for credit losses are recorded as a provision for (or reversal of) credit loss expense and are reported in general and administrative expenses in the Condensed Consolidated Statements of Income. Losses are charged against the allowance when management believes an available-for-sale debt security is confirmed as uncollected or when either of the criteria regarding intent or requirement to sell is met.

The following table presents the amortized cost and fair value of investments with maturities as of the date presented (in thousands):

			March 31, 2023
			Amortized Cost						Fair Value
Due in one year or less			$	102,455					$	100,102
Due after one year through five years			558,902						512,244
Due after five years through ten years			457,242						391,643
Due after ten years			23,977						19,370
Perpetual maturity securities			3,802						3,196
Total			$	1,146,378					$	1,026,555

All securities, except those with perpetual maturities, were categorized in the table above utilizing years to effective maturity. Effective maturity takes into consideration all forms of potential prepayment, such as call features or prepayment schedules, that shorten the lifespan of contractual maturity dates.

The following table provides certain information related to available-for-sale debt securities, equity securities and investment in real estate during the periods presented (in thousands):

			Three Months Ended March 31,
			2023						2022
Proceeds from sales and maturities (fair value):
Available-for-sale debt securities			$	30,855					$	25,306
Equity securities			$	2,789					$	14,932
Gross realized gains on sale of securities:
Available-for-sale debt securities			$	5					$	6
Equity securities			$	54					$	324
Gross realized losses on sale of securities:
Available-for-sale debt securities			$	(706)					$	(270)
Equity securities			$	(141)					$	(2)

The following table presents the components of net investment income, comprised primarily of interest and dividends, for the periods presented (in thousands):

			Three Months Ended March 31,
			2023						2022
Available-for-sale debt securities			$	5,870					$	4,067
Equity securities			1,053						535
Cash and cash equivalents (1)			4,203						22
Other (2)			141						128
Total investment income			11,267						4,752
Less: Investment expenses (3)			(569)						(710)
Net investment income			$	10,698					$	4,042

(1)						Includes interest earned on restricted cash and cash equivalents.
(2)						Includes investment income earned on real estate investments.
(3)						Includes custodial fees, investment accounting and advisory fees, and expenses associated with real estate investments.

Equity Securities

The following table provides the unrealized gains and losses recognized for the periods presented on equity securities still held at the end of the reported period (in thousands):

			Three Months Ended March 31,
			2023						2022
Unrealized gains (losses) recognized during the reported period on equity securities still held at the end of the reported period			$	503					$	(3,353)

Investment Real Estate

Investment real estate consisted of the following as of the dates presented (in thousands):

			March 31,						December 31,
			2023						2022
Income Producing:
Investment real estate			$	7,097					$	7,097
Less: Accumulated depreciation			(1,432)						(1,386)
Investment real estate, net			$	5,665					$	5,711

The following table provides the depreciation expense related to investment real estate for the periods presented (in thousands):

			Three Months Ended March 31,
			2023						2022
Depreciation expense on investment real estate			$	46					$	46

X

- Definition

The entire disclosure for investment.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 321
-URI https://asc.fasb.org/topic&trid=75115024

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-URI https://asc.fasb.org/topic&trid=2196928

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 325
-URI https://asc.fasb.org/topic&trid=2197064

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-URI https://asc.fasb.org/topic&trid=2196965

+ Details

Name:	us-gaap_InvestmentTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- References

No definition available.

+ Details

Name:	us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration