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Investments (Tables)

3 Months Ended

Mar. 31, 2023

Investments [Abstract]

Schedule of Fixed Maturity Securities

At March 31, 2023 and December 31, 2022, the amortized cost and fair value of fixed maturity securities were as follows:

			Amortized Cost (1)						Gross Unrealized Gains						Gross Unrealized Losses (2)						Allowance for Credit Losses						Fair Value
			(Dollars in thousands)
March 31, 2023
Fixed maturity securities, available for sale:
U.S. Government and agencies			$	179,026					$	1,060					$	(2,208)					$	—					$	177,878
States, municipalities and territories			4,066,597						52,221						(453,102)						—						3,665,716
Foreign corporate securities and foreign governments			738,759						12,943						(73,869)						—						677,833
Corporate securities			26,338,901						195,461						(3,131,447)						(1,914)						23,401,001
Residential mortgage backed securities			1,455,263						9,954						(109,226)						(133)						1,355,858
Commercial mortgage backed securities			4,088,679						1,125						(412,132)						—						3,677,672
Other asset backed securities			6,917,206						34,890						(352,430)						—						6,599,666
			$	43,784,431					$	307,654					$	(4,534,414)					$	(2,047)					$	39,555,624
December 31, 2022
Fixed maturity securities, available for sale:
U.S. Government and agencies			$	173,638					$	70					$	(4,637)					$	—					$	169,071
States, municipalities and territories			4,356,251						41,565						(574,834)						—						3,822,982
Foreign corporate securities and foreign governments			748,770						11,661						(83,579)						—						676,852
Corporate securities			27,706,440						146,065						(3,687,370)						(3,214)						24,161,921
Residential mortgage backed securities			1,492,242						11,870						(126,368)						(133)						1,377,611
Commercial mortgage backed securities			4,098,755						493						(411,770)						—						3,687,478
Other asset backed securities			6,289,923						14,068						(395,289)						—						5,908,702
			$	44,866,019					$	225,792					$	(5,283,847)					$	(3,347)					$	39,804,617

(1)Amortized cost excludes accrued interest receivable of $425.5 million and $425.4 million as of March 31, 2023 and December 31, 2022, respectively.

(2)Gross unrealized losses are net of allowance for credit losses.

Schedule of Fixed Maturity Securities by Contractual Maturity Date

The amortized cost and fair value of fixed maturity securities at March 31, 2023, by contractual maturity are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. All of our mortgage and other asset backed securities provide for periodic payments throughout their lives and are shown below as separate lines.

			Available for sale
			Amortized Cost						Fair Value
			(Dollars in thousands)
Due in one year or less			$	702,112					$	696,244
Due after one year through five years			6,122,055						5,914,199
Due after five years through ten years			6,116,836						5,639,129
Due after ten years through twenty years			8,790,928						8,046,303
Due after twenty years			9,591,352						7,626,553
			31,323,283						27,922,428
Residential mortgage backed securities			1,455,263						1,355,858
Commercial mortgage backed securities			4,088,679						3,677,672
Other asset backed securities			6,917,206						6,599,666
			$	43,784,431					$	39,555,624

Schedule of Net Unrealized Gains (Losses) on Available for Sale Fixed Maturity Securities Reported as Separate Component of Stockholders' Equity

Net unrealized losses on investments reported as a separate component of stockholders' equity were comprised of the following:

			March 31, 2023						December 31, 2022
			(Dollars in thousands)
Net unrealized losses on investments			$	(4,232,154)					$	(5,065,422)
Deferred income tax valuation allowance reversal			22,534						22,534
Deferred income tax expense			888,455						1,063,441
Net unrealized losses reported as accumulated other comprehensive loss			$	(3,321,165)					$	(3,979,447)

Schedule of Credit Quality of Fixed Maturity Security Portfolio by NAIC Designation

The following table summarizes the credit quality, as determined by NAIC designation, of our fixed maturity portfolio as of the dates indicated:

						March 31, 2023												December 31, 2022
NAIC Designation						Amortized Cost						Fair Value						Amortized Cost						Fair Value
						(Dollars in thousands)
1						$	26,409,209					$	24,052,838					$	27,061,903					$	24,211,086
2						16,575,461						14,833,109						17,023,157						14,944,131
3						629,526						537,044						595,193						510,392
4						151,368						116,504						109,409						91,495
5						7,171						7,595						61,721						36,738
6						11,696						8,534						14,636						10,775
						$	43,784,431					$	39,555,624					$	44,866,019					$	39,804,617

Schedule of Changes in Net Unrealized Gains/Losses on Investments

The following table shows our investments' gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities (consisting of 4,175 and 4,510 securities, respectively) have been in a continuous unrealized loss position, at March 31, 2023 and December 31, 2022:

			Less than 12 months												12 months or more												Total
			Fair Value						Unrealized Losses (1)						Fair Value						Unrealized Losses (1)						Fair Value						Unrealized Losses (1)
			(Dollars in thousands)
March 31, 2023
Fixed maturity securities, available for sale:
U.S. Government and agencies			$	40,919					$	(905)					$	22,400					$	(1,303)					$	63,319					$	(2,208)
States, municipalities and territories			1,487,593						(160,979)						1,128,425						(292,123)						2,616,018						(453,102)
Foreign corporate securities and foreign governments			372,316						(26,076)						159,696						(47,793)						532,012						(73,869)
Corporate securities			10,860,843						(1,149,693)						7,844,602						(1,981,754)						18,705,445						(3,131,447)
Residential mortgage backed securities			730,911						(45,375)						368,307						(63,851)						1,099,218						(109,226)
Commercial mortgage backed securities			1,116,038						(82,985)						2,485,544						(329,147)						3,601,582						(412,132)
Other asset backed securities			1,701,535						(68,465)						3,050,769						(283,965)						4,752,304						(352,430)
			$	16,310,155					$	(1,534,478)					$	15,059,743					$	(2,999,936)					$	31,369,898					$	(4,534,414)
December 31, 2022
Fixed maturity securities, available for sale:
U.S. Government and agencies			$	160,201					$	(4,512)					$	908					$	(125)					$	161,109					$	(4,637)
States, municipalities and territories			2,595,122						(537,313)						95,184						(37,521)						2,690,306						(574,834)
Foreign corporate securities and foreign governments			522,826						(76,957)						21,816						(6,622)						544,642						(83,579)
Corporate securities			18,784,181						(3,218,323)						1,411,177						(469,047)						20,195,358						(3,687,370)
Residential mortgage backed securities			992,783						(101,100)						116,388						(25,268)						1,109,171						(126,368)
Commercial mortgage backed securities			2,941,293						(302,513)						651,923						(109,257)						3,593,216						(411,770)
Other asset backed securities			2,561,390						(162,821)						1,924,026						(232,468)						4,485,416						(395,289)
			$	28,557,796					$	(4,403,539)					$	4,221,422					$	(880,308)					$	32,779,218					$	(5,283,847)

(1)Unrealized losses have not been reduced to reflect the allowance for credit losses of $2.0 million and $3.3 million as of March 31, 2023 and December 31, 2022, respectively.

Changes in net unrealized gains/losses on investments for the three months ended March 31, 2023 and 2022 are as follows:

									Three Months Ended   March 31,
															2023						2022
															(Dollars in thousands)
Fixed maturity securities available for sale carried at fair value															$	833,268					$	(4,014,371)
Adjustment for effect on other balance sheet accounts:
Deferred income tax asset/liability															(174,986)						842,782
															(174,986)						842,782
Change in net unrealized gains/losses on investments carried at fair value															$	658,282					$	(3,171,589)

Net Realized Gains (Losses) on Investments

Net realized losses on investments for the three months ended March 31, 2023 and 2022, are as follows:

									Three Months Ended   March 31,
															2023						2022
															(Dollars in thousands)
Available for sale fixed maturity securities:
Gross realized gains															$	25,988					$	3,465
Gross realized losses															(44,451)						(2,006)
Net credit loss (provision) release															(829)						(7,356)
															(19,292)						(5,897)
Other investments:
Gross realized gains															1,777						—
Gross realized losses															(432)						—
															1,345						—
Mortgage loans on real estate:
Increase in allowance for credit losses															(8,654)						(5,245)
Recovery of specific allowance															—						—
Loss on sale of mortgage loans															(1,186)						(1,985)
															(9,840)						(7,230)
															$	(27,787)					$	(13,127)

Rollforward of Allowance for Credit Loss

The following table provides a rollforward of the allowance for credit loss:

			Three Months Ended March 31, 2023
			States, Municipalities and Territories						Corporate Securities												Residential Mortgage Backed Securities												Total
			(Dollars in thousands)
Beginning balance			$	—					$	3,214											$	133											$	3,347
Additions for credit losses not previously recorded			—						—												—												—
Change in allowance on securities with previous allowance			—						(1,300)												—												(1,300)
Ending balance			$	—					$	1,914											$	133											$	2,047
			Three Months Ended March 31, 2022
			States, Municipalities and Territories						Corporate Securities												Residential Mortgage Backed Securities												Total
			(Dollars in thousands)
Beginning balance			$	2,776					$	—											$	70											$	2,846
Additions for credit losses not previously recorded			—						3,825												336												4,161
Change in allowance on securities with previous allowance			(767)						—												337												(430)
Ending balance			$	2,009					$	3,825											$	743											$	6,577

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Tabular disclosure of allowance for credit loss on investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

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Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 30
-Section 50
-Paragraph 9
-URI https://asc.fasb.org/extlink&oid=124269663&loc=SL82922900-210455

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