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Investments (Tables)

3 Months Ended

Mar. 31, 2024

Investments [Abstract]

Schedule of Fixed Maturity Securities

At March 31, 2024 and December 31, 2023, the amortized cost and fair value of fixed maturity securities were as follows:

			Amortized Cost (1)						Gross Unrealized Gains						Gross Unrealized Losses						Allowance for Credit Losses						Fair Value
			(Dollars in thousands)
March 31, 2024
Fixed maturity securities, available for sale:
U.S. Government and agencies			$	28,354					$	13					$	(1,230)					$	—					$	27,137
States, municipalities and territories			3,392,780						9,188						(584,994)						—						2,816,974
Foreign corporate securities and foreign governments			513,299						643						(80,934)						—						433,008
Corporate securities			21,952,356						124,669						(2,808,944)						(3,293)						19,264,788
Residential mortgage backed securities			1,093,654						9,209						(107,733)						—						995,130
Commercial mortgage backed securities			3,121,755						2,701						(390,371)						—						2,734,085
Other asset backed securities			5,907,623						22,009						(156,150)						(225)						5,773,257
			$	36,009,821					$	168,432					$	(4,130,356)					$	(3,518)					$	32,044,379
December 31, 2023
Fixed maturity securities, available for sale:
U.S. Government and agencies			$	172,683					$	606					$	(2,148)					$	—					$	171,141
States, municipalities and territories			3,654,571						17,477						(573,108)						—						3,098,940
Foreign corporate securities and foreign governments			563,890						1,669						(71,820)						—						493,739
Corporate securities			23,036,862						175,014						(2,605,048)						(3,412)						20,603,416
Residential mortgage backed securities			1,503,639						11,598						(112,736)						—						1,402,501
Commercial mortgage backed securities			3,405,647						995						(454,095)						—						2,952,547
Other asset backed securities			6,200,170						30,530						(171,884)						(618)						6,058,198
			$	38,537,462					$	237,889					$	(3,990,839)					$	(4,030)					$	34,780,482

(1)Amortized cost excludes accrued interest receivable of $352.8 million and $360.9 million as of March 31, 2024 and December 31, 2023, respectively.

Schedule of Fixed Maturity Securities by Contractual Maturity Date

The amortized cost and fair value of fixed maturity securities at March 31, 2024, 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			$	635,069					$	628,657
Due after one year through five years			5,295,239						5,166,955
Due after five years through ten years			4,174,379						3,788,971
Due after ten years through twenty years			7,149,272						6,209,035
Due after twenty years			8,632,830						6,748,289
			25,886,789						22,541,907
Residential mortgage backed securities			1,093,654						995,130
Commercial mortgage backed securities			3,121,755						2,734,085
Other asset backed securities			5,907,623						5,773,257
			$	36,009,821					$	32,044,379

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:

			March 31, 2024						December 31, 2023
			(Dollars in thousands)
Net unrealized losses on investments			$	(3,963,901)					$	(3,755,689)
Deferred income tax valuation allowance reversal			22,534						22,534
Deferred income tax expense			831,961						788,236
Net unrealized losses reported as accumulated other comprehensive loss			$	(3,109,406)					$	(2,944,919)

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, 2024												December 31, 2023
NAIC Designation (1)						Amortized Cost						Fair Value						Amortized Cost						Fair Value
						(Dollars in thousands)
1						$	21,333,429					$	18,916,331					$	22,493,843					$	20,209,842
2						13,523,795						12,096,461						14,910,687						13,529,169
3						657,003						613,090						583,131						527,556
4						183,294						152,918						201,610						168,191
5						88,840						67,345						88,581						68,538
6						5,398						3,922						9,400						10,132
						$	35,791,759					$	31,850,067					$	38,287,252					$	34,513,428

(1)The table excludes residual tranche securities that are not rated with an amortized cost of $218,062 and $250,210, and fair value of $194,312 and $267,054 as of March 31, 2024 and December 31, 2023, respectively.

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 3,525 and 3,639 securities, respectively) have been in a continuous unrealized loss position, at March 31, 2024 and December 31, 2023:

			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, 2024
Fixed maturity securities, available for sale:
U.S. Government and agencies			$	3,990					$	(20)					$	22,732					$	(1,210)					$	26,722					$	(1,230)
States, municipalities and territories			114,901						(10,035)						2,522,955						(574,959)						2,637,856						(584,994)
Foreign corporate securities and foreign governments			17,385						(92)						382,787						(80,842)						400,172						(80,934)
Corporate securities			1,280,454						(34,771)						14,276,990						(2,774,173)						15,557,444						(2,808,944)
Residential mortgage backed securities			51,291						(836)						653,903						(106,897)						705,194						(107,733)
Commercial mortgage backed securities			55,259						(1,517)						2,497,882						(388,854)						2,553,141						(390,371)
Other asset backed securities			1,430,802						(61,836)						2,003,652						(94,314)						3,434,454						(156,150)
			$	2,954,082					$	(109,107)					$	22,360,901					$	(4,021,249)					$	25,314,983					$	(4,130,356)
December 31, 2023
Fixed maturity securities, available for sale:
U.S. Government and agencies			$	55,087					$	(279)					$	47,639					$	(1,869)					$	102,726					$	(2,148)
States, municipalities and territories			451,091						(44,832)						2,290,704						(528,276)						2,741,795						(573,108)
Foreign corporate securities and foreign governments			1,555						(195)						427,021						(71,625)						428,576						(71,820)
Corporate securities			3,275,031						(237,744)						13,625,542						(2,367,304)						16,900,573						(2,605,048)
Residential mortgage backed securities			145,093						(7,614)						858,821						(105,122)						1,003,914						(112,736)
Commercial mortgage backed securities			431,947						(69,007)						2,416,868						(385,088)						2,848,815						(454,095)
Other asset backed securities			968,026						(29,606)						3,057,618						(142,278)						4,025,644						(171,884)
			$	5,327,830					$	(389,277)					$	22,724,213					$	(3,601,562)					$	28,052,043					$	(3,990,839)

(1)Unrealized losses have been reduced to reflect the allowance for credit losses of $3.5 million and $4.0 million as of March 31, 2024 and December 31, 2023, respectively.

Changes in net unrealized gains/losses on investments for the three months ended March 31, 2024 and 2023 are as follows:

									Three Months Ended   March 31,
															2024						2023
															(Dollars in thousands)
Fixed maturity securities available for sale carried at fair value															$	(208,212)					$	833,268
Adjustment for effect on other balance sheet accounts:
Deferred income tax asset/liability															43,725						(174,986)
															43,725						(174,986)
Change in net unrealized gains/losses on investments carried at fair value															$	(164,487)					$	658,282

Net Realized Gains (Losses) on Investments

Net realized losses on investments for the three months ended March 31, 2024 and 2023, are as follows:

									Three Months Ended   March 31,
															2024						2023
															(Dollars in thousands)
Available for sale fixed maturity securities:
Gross realized gains															$	15,887					$	25,988
Gross realized losses															(104,505)						(44,451)
Net credit loss recovery (provision)															512						(829)
															(88,106)						(19,292)
Other investments:
Gross realized gains															—						1,777
Gross realized losses															—						(432)
															—						1,345
Mortgage loans on real estate:
Increase in allowance for credit losses															(3,468)						(8,654)
Recovery of specific allowance															—						—
Loss on sale of mortgage loans															(2,476)						(1,186)
															(5,944)						(9,840)
Total net realized losses															$	(94,050)					$	(27,787)

Rollforward of Allowance for Credit Loss

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

									Three Months Ended March 31, 2024
									Corporate Securities												Residential Mortgage Backed Securities						Other Asset Backed Securities						Total
									(Dollars in thousands)
Beginning balance									$	3,412											$	—					$	618					$	4,030
Change in allowance on securities with previous allowance									—												—						—						—
Recoveries of amounts previously written off									(119)												—						(393)						(512)
Ending balance									$	3,293											$	—					$	225					$	3,518
									Three Months Ended March 31, 2023
									Corporate Securities												Residential Mortgage Backed Securities						Other Asset Backed Securities						Total
									(Dollars in thousands)
Beginning balance									$	3,214											$	133					$	—					$	3,347
Change in allowance on securities with previous allowance									(1,300)												—						—						(1,300)
Recoveries of amounts previously written off									—												—						—						—
Ending balance									$	1,914											$	133					$	—					$	2,047

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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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