XML 35 R25.htm IDEA: XBRL DOCUMENT v3.23.2
Investments (Tables)
 6 Months Ended
Jun. 30, 2023
Investments [Abstract]  
Schedule of Fixed Maturity Securities
At June 30, 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 LossesFair Value
(Dollars in thousands)
June 30, 2023
Fixed maturity securities, available for sale:
U.S. Government and agencies$179,087 $66 $(3,691)$— $175,462 
States, municipalities and territories3,706,837 25,316 (470,794)— 3,261,359 
Foreign corporate securities and foreign governments649,101 3,491 (78,675)— 573,917 
Corporate securities25,268,072 123,687 (3,319,418)(3,132)22,069,209 
Residential mortgage backed securities1,593,824 7,650 (128,110)(67)1,473,297 
Commercial mortgage backed securities4,041,901 609 (488,892)— 3,553,618 
Other asset backed securities7,884,193 13,330 (322,981)(947)7,573,595 
$43,323,015 $174,149 $(4,812,561)$(4,146)$38,680,457 
December 31, 2022
Fixed maturity securities, available for sale:
U.S. Government and agencies$173,638 $70 $(4,637)$— $169,071 
States, municipalities and territories4,356,251 41,565 (574,834)— 3,822,982 
Foreign corporate securities and foreign governments748,770 11,661 (83,579)— 676,852 
Corporate securities27,706,440 146,065 (3,687,370)(3,214)24,161,921 
Residential mortgage backed securities1,492,242 11,870 (126,368)(133)1,377,611 
Commercial mortgage backed securities4,098,755 493 (411,770)— 3,687,478 
Other asset backed securities6,289,923 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 $416.5 million and $425.4 million as of June 30, 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 June 30, 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$681,287 $668,827 
Due after one year through five years6,111,532 5,857,320 
Due after five years through ten years5,588,456 5,069,920 
Due after ten years through twenty years8,060,065 7,137,892 
Due after twenty years9,361,757 7,345,988 
29,803,097 26,079,947 
Residential mortgage backed securities1,593,824 1,473,297 
Commercial mortgage backed securities4,041,901 3,553,618 
Other asset backed securities7,884,193 7,573,595 
$43,323,015 $38,680,457 
Schedule of Net Unrealized Gains (Losses) on Investments Reported as Separate Component of Stockholders' Equity
Net unrealized losses on investments reported as a separate component of stockholders' equity were comprised of the following:
June 30, 2023December 31, 2022
(Dollars in thousands)
Net unrealized losses on investments$(4,630,762)$(5,065,422)
Deferred income tax valuation allowance reversal22,534 22,534 
Deferred income tax expense972,162 1,063,441 
Net unrealized losses reported as accumulated other comprehensive loss$(3,636,066)$(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:
June 30, 2023December 31, 2022
NAIC
Designation		Amortized
Cost		Fair
Value		Amortized
Cost		Fair
Value
(Dollars in thousands)
1$26,852,711 $24,130,363 $27,061,903 $24,211,086 
215,733,173 13,925,216 17,023,157 14,944,131 
3616,104 518,089 595,193 510,392 
4102,614 92,058 109,409 91,495 
56,765 6,917 61,721 36,738 
611,648 7,814 14,636 10,775 
$43,323,015 $38,680,457 $44,866,019 $39,804,617 
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 4,300 and 4,510 securities, respectively) have been in a continuous unrealized loss position, at June 30, 2023 and December 31, 2022:
Less than 12 months12 months or moreTotal
Fair ValueUnrealized
Losses (1)		Fair ValueUnrealized
Losses (1)		Fair ValueUnrealized
Losses (1)
(Dollars in thousands)
June 30, 2023
Fixed maturity securities, available for sale:
U.S. Government and agencies$120,241 $(2,104)$24,084 $(1,587)$144,325 $(3,691)
States, municipalities and territories545,909 (38,329)2,077,644 (432,465)2,623,553 (470,794)
Foreign corporate securities and foreign governments86,734 (4,892)404,826 (73,783)491,560 (78,675)
Corporate securities4,341,434 (232,048)14,300,847 (3,087,370)18,642,281 (3,319,418)
Residential mortgage backed securities845,456 (50,133)463,440 (77,977)1,308,896 (128,110)
Commercial mortgage backed securities573,518 (18,089)2,888,442 (470,803)3,461,960 (488,892)
Other asset backed securities2,010,044 (48,514)3,641,288 (274,467)5,651,332 (322,981)
$8,523,336 $(394,109)$23,800,571 $(4,418,452)$32,323,907 $(4,812,561)
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 territories2,595,122 (537,313)95,184 (37,521)2,690,306 (574,834)
Foreign corporate securities and foreign governments522,826 (76,957)21,816 (6,622)544,642 (83,579)
Corporate securities18,784,181 (3,218,323)1,411,177 (469,047)20,195,358 (3,687,370)
Residential mortgage backed securities992,783 (101,100)116,388 (25,268)1,109,171 (126,368)
Commercial mortgage backed securities2,941,293 (302,513)651,923 (109,257)3,593,216 (411,770)
Other asset backed securities2,561,390 (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 $4.1 million and $3.3 million as of June 30, 2023 and December 31, 2022, respectively.
Changes in net unrealized gains/losses on investments for the three and six months ended June 30, 2023 and 2022 are as follows:
Three Months Ended 
 June 30,		Six Months Ended 
 June 30,
2023202220232022
(Dollars in thousands)
Fixed maturity securities available for sale carried at fair value$(398,608)$(3,443,391)$434,660 $(7,457,762)
Adjustment for effect on other balance sheet accounts:
Deferred income tax asset/liability83,707 723,065 (91,279)1,565,847 
83,707 723,065 (91,279)1,565,847 
Change in net unrealized gains/losses on investments carried at fair value$(314,901)$(2,720,326)$343,381 $(5,891,915)
Net Realized Gains (Losses) on Investments
Net realized losses on investments for the three and six months ended June 30, 2023 and 2022, are as follows:
Three Months Ended 
 June 30,		Six Months Ended 
 June 30,
2023202220232022
(Dollars in thousands)
Available for sale fixed maturity securities:
Gross realized gains$59,056 $507 $85,044 $3,972 
Gross realized losses(36,335)(24,053)(80,786)(26,059)
Net credit loss (provision) release(46,273)(5,498)(47,102)(12,854)
(23,552)(29,044)(42,844)(34,941)
Other investments:
Gross realized gains433 — 2,210 — 
Gross realized losses(4,629)— (5,061)— 
(4,196)— (2,851)— 
Mortgage loans on real estate:
Decrease (increase) in allowance for credit losses5,231 (3,348)(3,423)(8,593)
Recovery of specific allowance— 229 — 229 
Loss on sale of mortgage loans(2,162)(1,109)(3,348)(3,094)
3,069 (4,228)(6,771)(11,458)
$(24,679)$(33,272)$(52,466)$(46,399)
Rollforward of Allowance for Credit Loss
The following table provides a rollforward of the allowance for credit loss:
Three Months Ended June 30, 2023
States, Municipalities and
Territories		Corporate SecuritiesCommercial Mortgage Backed SecuritiesResidential Mortgage Backed SecuritiesOther Asset Backed SecuritiesTotal
(Dollars in thousands)
Beginning balance $— $1,914 $— $133 $— $2,047 
Additions for credit losses not previously recorded— — — — 947 947 
Change in allowance on securities with previous allowance— 1,218 — (66)— 1,152 
Reduction for securities sold during the period— — — — — — 
Ending balance$— $3,132 $— $67 $947 $4,146 
Three Months Ended June 30, 2022
States, Municipalities and
Territories		Corporate SecuritiesCommercial Mortgage Backed SecuritiesResidential Mortgage Backed SecuritiesOther Asset Backed SecuritiesTotal
(Dollars in thousands)
Beginning balance$2,009 $3,825 $— $743 $— $6,577 
Additions for credit losses not previously recorded— — — 295 — 295 
Change in allowance on securities with previous allowance(175)(82)— — — (257)
Reduction for securities sold during the period— — — (428)— (428)
Ending balance$1,834 $3,743 $— $610 $— $6,187 
Six Months Ended June 30, 2023
States, Municipalities and
Territories		Corporate SecuritiesCommercial Mortgage Backed SecuritiesResidential Mortgage Backed SecuritiesOther Asset Backed SecuritiesTotal
(Dollars in thousands)
Beginning balance$— $3,214 $— $133 $— $3,347 
Additions for credit losses not previously recorded— — — — 947 947 
Change in allowance on securities with previous allowance— (82)— (66)— (148)
Reduction for securities sold during the period— — — — — — 
Ending balance$— $3,132 $— $67 $947 $4,146 
Six Months Ended June 30, 2022
States, Municipalities and
Territories		Corporate SecuritiesCommercial Mortgage Backed SecuritiesResidential Mortgage Backed SecuritiesOther Asset Backed SecuritiesTotal
(Dollars in thousands)
Beginning balance$2,776 $— $— $70 $— $2,846 
Additions for credit losses not previously recorded— 3,825 — 631 — 4,456 
Change in allowance on securities with previous allowance(942)(82)— 337 — (687)
Reduction for securities sold during the period— — — (428)— (428)
Ending balance$1,834 $3,743 $— $610 $— $6,187