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Investments (Tables)

9 Months Ended

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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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
-Topic 326
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479106/326-30-50-9

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