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v3.23.3

Investments (Tables) | 9 Months Ended
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Sep. 30, 2023
Investments [Abstract] |
Schedule of Fixed Maturity Securities | At September 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 Losses |  | Fair Value
| (Dollars in thousands)
September 30, 2023 |  |  |  |  |  |  |  |  |
Fixed maturity securities, available for sale: |  |  |  |  |  |  |  |  |
U.S. Government and agencies | $ | 172,650 |  |  | $ | 7 |  |  | $ | (9,772) |  |  | $ | — |  |  | $ | 162,885 |
States, municipalities and territories | 3,198,091 |  |  | 5,049 |  |  | (638,470) |  |  | — |  |  | 2,564,670 |
Foreign corporate securities and foreign governments | 535,008 |  |  | 37 |  |  | (106,818) |  |  | — |  |  | 428,227 |
Corporate securities | 23,271,192 |  |  | 45,571 |  |  | (4,102,472) |  |  | (2,911) |  |  | 19,211,380 |
Residential mortgage backed securities | 1,501,200 |  |  | 5,030 |  |  | (163,149) |  |  | (97) |  |  | 1,342,984 |
Commercial mortgage backed securities | 3,520,832 |  |  | 443 |  |  | (538,245) |  |  | — |  |  | 2,983,030 |
Other asset backed securities | 5,614,577 |  |  | 21,760 |  |  | (243,971) |  |  | (610) |  |  | 5,391,756 |
| $ | 37,813,550 |  |  | $ | 77,897 |  |  | $ | (5,802,897) |  |  | $ | (3,618) |  |  | $ | 32,084,932 |
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 $370.6 million and $425.4 million as of September 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 September 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 | $ | 1,425,811 |  |  | $ | 1,423,194 |
Due after one year through five years | 4,298,107 |  |  | 4,048,402 |
Due after five years through ten years | 4,868,547 |  |  | 4,242,544 |
Due after ten years through twenty years | 7,384,698 |  |  | 6,057,753 |
Due after twenty years | 9,199,778 |  |  | 6,595,269 |
| 27,176,941 |  |  | 22,367,162 |
Residential mortgage backed securities | 1,501,200 |  |  | 1,342,984 |
Commercial mortgage backed securities | 3,520,832 |  |  | 2,983,030 |
Other asset backed securities | 5,614,577 |  |  | 5,391,756 |
| $ | 37,813,550 |  |  | $ | 32,084,932 |
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:
| September 30, 2023 |  | December 31, 2022
| (Dollars in thousands)
Net unrealized losses on investments | $ | (5,726,811) |  |  | $ | (5,065,422) |
Deferred income tax valuation allowance reversal | 22,534 |  |  | 22,534 |
Deferred income tax expense | 1,201,891 |  |  | 1,063,441 |
Net unrealized losses reported as accumulated other comprehensive loss | $ | (4,502,386) |  |  | $ | (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:
|  | September 30, 2023 |  | December 31, 2022
NAIC Designation (1) |  | Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
|  | (Dollars in thousands)
1 |  | $ | 22,103,730 |  |  | $ | 18,644,092 |  |  | $ | 27,061,903 |  |  | $ | 24,211,086 |
2 |  | 14,909,260 |  |  | 12,739,371 |  |  | 17,023,157 |  |  | 14,944,131 |
3 |  | 554,568 |  |  | 469,819 |  |  | 595,193 |  |  | 510,392 |
4 |  | 116,264 |  |  | 98,929 |  |  | 109,409 |  |  | 91,495 |
5 |  | 61,334 |  |  | 45,253 |  |  | 61,721 |  |  | 36,738 |
6 |  | 10,000 |  |  | 7,127 |  |  | 14,636 |  |  | 10,775 |
|  | $ | 37,755,156 |  |  | $ | 32,004,591 |  |  | $ | 44,866,019 |  |  | $ | 39,804,617 |
(1)The table excludes residual tranche securities that are not rated with an amortized cost of $58,394 and fair value of $80,341 as of September 30, 2023.
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 4,059 and 4,510 securities, respectively) have been in a continuous unrealized loss position, at September 30, 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)
September 30, 2023 |  |  |  |  |  |  |  |  |  |  |
Fixed maturity securities, available for sale: |  |  |  |  |  |  |  |  |  |  |
U.S. Government and agencies | $ | 116,484 |  |  | $ | (6,223) |  |  | $ | 45,991 |  |  | $ | (3,549) |  |  | $ | 162,475 |  |  | $ | (9,772) |
States, municipalities and territories | 229,082 |  |  | (19,688) |  |  | 2,168,957 |  |  | (618,782) |  |  | 2,398,039 |  |  | (638,470) |
Foreign corporate securities and foreign governments | 14,610 |  |  | (70) |  |  | 393,715 |  |  | (106,748) |  |  | 408,325 |  |  | (106,818) |
Corporate securities | 2,888,535 |  |  | (163,562) |  |  | 14,312,197 |  |  | (3,938,910) |  |  | 17,200,732 |  |  | (4,102,472) |
Residential mortgage backed securities | 487,935 |  |  | (25,263) |  |  | 772,581 |  |  | (137,886) |  |  | 1,260,516 |  |  | (163,149) |
Commercial mortgage backed securities | 181,256 |  |  | (7,607) |  |  | 2,734,129 |  |  | (530,639) |  |  | 2,915,385 |  |  | (538,246) |
Other asset backed securities | 1,182,339 |  |  | (45,678) |  |  | 3,307,085 |  |  | (198,292) |  |  | 4,489,424 |  |  | (243,970) |
| $ | 5,100,241 |  |  | $ | (268,091) |  |  | $ | 23,734,655 |  |  | $ | (5,534,806) |  |  | $ | 28,834,896 |  |  | $ | (5,802,897) |
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 been reduced to reflect the allowance for credit losses of $3.6 million and $3.3 million as of September 30, 2023 and December 31, 2022, respectively. Changes in net unrealized gains/losses on investments for the three and nine months ended September 30, 2023 and 2022 are as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
| (Dollars in thousands)
Fixed maturity securities available for sale carried at fair value | $ | (1,096,049) |  |  | $ | (2,277,217) |  |  | $ | (661,389) |  |  | $ | (9,734,979) |
Adjustment for effect on other balance sheet accounts: |  |  |  |  |  |  |
Deferred income tax asset/liability | 229,729 |  |  | 478,223 |  |  | 138,450 |  |  | 2,044,070 |
| 229,729 |  |  | 478,223 |  |  | 138,450 |  |  | 2,044,070 |
Change in net unrealized gains/losses on investments carried at fair value | $ | (866,320) |  |  | $ | (1,798,994) |  |  | $ | (522,939) |  |  | $ | (7,690,909) |
Net Realized Gains (Losses) on Investments | Net realized losses on investments for the three and nine months ended September 30, 2023 and 2022, are as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
| (Dollars in thousands)
Available for sale fixed maturity securities: |  |  |  |  |  |  |
Gross realized gains | $ | 52,700 |  |  | $ | 23,978 |  |  | $ | 137,744 |  |  | $ | 27,950 |
Gross realized losses | (91,184) |  |  | (33,881) |  |  | (171,970) |  |  | (59,940) |
Net credit loss (provision) release | 537 |  |  | (1,487) |  |  | (46,565) |  |  | (14,341) |
| (37,947) |  |  | (11,390) |  |  | (80,791) |  |  | (46,331) |
Other investments: |  |  |  |  |  |  |
Gross realized gains | 29 |  |  | — |  |  | 2,239 |  |  | — |
Gross realized losses | — |  |  | — |  |  | (5,061) |  |  | — |
| 29 |  |  | — |  |  | (2,822) |  |  | — |
Mortgage loans on real estate: |  |  |  |  |  |  |
Increase in allowance for credit losses | (4,687) |  |  | (4,716) |  |  | (8,110) |  |  | (13,309) |
Recovery of specific allowance | — |  |  | 1,086 |  |  | — |  |  | 1,315 |
Loss on sale of mortgage loans | (2,067) |  |  | (840) |  |  | (5,415) |  |  | (3,934) |
| (6,754) |  |  | (4,470) |  |  | (13,525) |  |  | (15,928) |
| $ | (44,672) |  |  | $ | (15,860) |  |  | $ | (97,138) |  |  | $ | (62,259) |
Rollforward of Allowance for Credit Loss | The following table provides a rollforward of the allowance for credit loss:
| Three Months Ended September 30, 2023
| States, Municipalities and Territories |  | Corporate Securities |  |  |  | Residential Mortgage Backed Securities |  | Other Asset Backed Securities |  | Total
| (Dollars in thousands)
Beginning balance | $ | — |  |  | $ | 3,132 |  |  |  |  | $ | 67 |  |  | $ | 947 |  |  | $ | 4,146 |
Additions for credit losses not previously recorded | — |  |  | — |  |  |  |  | 97 |  |  | — |  |  | 97 |
Change in allowance on securities with previous allowance | — |  |  | (221) |  |  |  |  | (67) |  |  | (337) |  |  | (625) |
Reduction for securities sold during the period | — |  |  | — |  |  |  |  | — |  |  | — |  |  | — |
Ending balance | $ | — |  |  | $ | 2,911 |  |  |  |  | $ | 97 |  |  | $ | 610 |  |  | $ | 3,618 |
| Three Months Ended September 30, 2022
| States, Municipalities and Territories |  | Corporate Securities |  |  |  | Residential Mortgage Backed Securities |  | Other Asset Backed Securities |  | Total
| (Dollars in thousands)
Beginning balance | $ | 1,834 |  |  | $ | 3,743 |  |  |  |  | $ | 610 |  |  | $ | — |  |  | $ | 6,187 |
Additions for credit losses not previously recorded | — |  |  | — |  |  |  |  | 439 |  |  | — |  |  | 439 |
Change in allowance on securities with previous allowance | (1,834) |  |  | (529) |  |  |  |  | 657 |  |  | — |  |  | (1,706) |
Reduction for securities sold during the period | — |  |  | — |  |  |  |  | — |  |  | — |  |  | — |
Ending balance | $ | — |  |  | $ | 3,214 |  |  |  |  | $ | 1,706 |  |  | $ | — |  |  | $ | 4,920 |
| Nine Months Ended September 30, 2023
| States, Municipalities and Territories |  | Corporate Securities |  |  |  | Residential Mortgage Backed Securities |  | Other Asset Backed Securities |  | Total
| (Dollars in thousands)
Beginning balance | $ | — |  |  | $ | 3,214 |  |  |  |  | $ | 133 |  |  | $ | — |  |  | $ | 3,347 |
Additions for credit losses not previously recorded | — |  |  | — |  |  |  |  | 97 |  |  | 947 |  |  | 1,044 |
Change in allowance on securities with previous allowance | — |  |  | (303) |  |  |  |  | (133) |  |  | (337) |  |  | (773) |
Reduction for securities sold during the period | — |  |  | — |  |  |  |  | — |  |  | — |  |  | — |
Ending balance | $ | — |  |  | $ | 2,911 |  |  |  |  | $ | 97 |  |  | $ | 610 |  |  | $ | 3,618 |
| Nine Months Ended September 30, 2022
| States, Municipalities and Territories |  | Corporate Securities |  |  |  | Residential Mortgage Backed Securities |  | Other Asset Backed Securities |  | Total
| (Dollars in thousands)
Beginning balance | $ | 2,776 |  |  | $ | — |  |  |  |  | $ | 70 |  |  | $ | — |  |  | $ | 2,846 |
Additions for credit losses not previously recorded | — |  |  | 3,825 |  |  |  |  | 1,070 |  |  | — |  |  | 4,895 |
Change in allowance on securities with previous allowance | (2,776) |  |  | (611) |  |  |  |  | 994 |  |  | — |  |  | (2,393) |
Reduction for securities sold during the period | — |  |  | — |  |  |  |  | (428) |  |  | — |  |  | (428) |
Ending balance | $ | — |  |  | $ | 3,214 |  |  |  |  | $ | 1,706 |  |  | $ | — |  |  | $ | 4,920 |

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