Investments (Tables)
|
6 Months Ended |
Jun. 30, 2025 |
|---|
| Investments, Debt and Equity Securities [Abstract] |
|
| Schedule of Fixed Maturities and Equity Securities Available for Sale by Component |
Summaries of fixed maturities available for sale by amortized cost, fair value, and allowance for credit losses at June 30, 2025 and December 31, 2024, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) are as follows. Redeemable preferred stock is included within "Corporates, by sector." | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | At June 30, 2025 | |
Amortized
Cost | | Allowance for Credit Losses | | Gross
Unrealized
Gains | | Gross
Unrealized
Losses | | Fair Value(1) | | % of Total Fixed Maturities(2) | | Fixed maturities available for sale: | | | | | | | | | | | | | U.S. Government direct, guaranteed, and government-sponsored enterprises | $ | 411,371 | | | $ | — | | | $ | 131 | | | $ | (31,467) | | | $ | 380,035 | | | 2 | | | States, municipalities, and political subdivisions | 3,303,151 | | | — | | | 23,550 | | | (633,924) | | | 2,692,777 | | | 16 | | | Foreign governments | 39,427 | | | — | | | 21 | | | (9,842) | | | 29,606 | | | — | | | Corporates, by sector: | | | | | | | | | | | | | Industrials | 8,007,486 | | | (7,058) | | | 138,507 | | | (737,473) | | | 7,401,462 | | | 43 | | | Financial | 5,004,947 | | | — | | | 107,285 | | | (386,613) | | | 4,725,619 | | | 27 | | | | | | | | | | | | | | | Utilities | 2,113,952 | | | — | | | 55,957 | | | (109,524) | | | 2,060,385 | | | 12 | | | Total corporates | 15,126,385 | | | (7,058) | | | 301,749 | | | (1,233,610) | | | 14,187,466 | | | 82 | | | Collateralized debt obligations | — | | | — | | | — | | | — | | | — | | | — | | | Other asset-backed securities | 79,463 | | | (3,297) | | | 114 | | | (810) | | | 75,470 | | | — | | Total fixed maturities | $ | 18,959,797 | | | $ | (10,355) | | | $ | 325,565 | | | $ | (1,909,653) | | | $ | 17,365,354 | | | 100 | |
(1)Amount reported in the balance sheet. (2)At fair value.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | At December 31, 2024 | | Amortized
Cost | | Allowance for Credit Losses | | Gross
Unrealized
Gains | | Gross
Unrealized
Losses | | Fair Value(1) | | % of Total Fixed Maturities(2) | | Fixed maturities available for sale: | | | | | | | | | | | | | U.S. Government direct, guaranteed, and government-sponsored enterprises | $ | 401,753 | | | $ | — | | | $ | 1 | | | $ | (42,794) | | | $ | 358,960 | | | 2 | | | States, municipalities, and political subdivisions | 3,300,901 | | | — | | | 20,662 | | | (534,759) | | | 2,786,804 | | | 16 | | | Foreign governments | 36,883 | | | — | | | 18 | | | (8,870) | | | 28,031 | | | — | | | Corporates, by sector: | | | | | | | | | | | | Industrials | 7,889,074 | | | (7,098) | | | 105,610 | | | (805,330) | | | 7,182,256 | | | 42 | | | Financial | 5,006,375 | | | — | | | 82,598 | | | (413,043) | | | 4,675,930 | | | 27 | | | | | | | | | | | | | | | Utilities | 2,081,366 | | | — | | | 39,716 | | | (118,007) | | | 2,003,075 | | | 12 | | | Total corporates | 14,976,815 | | | (7,098) | | | 227,924 | | | (1,336,380) | | | 13,861,261 | | | 81 | | | Collateralized debt obligations | 36,923 | | | — | | | 5,943 | | | — | | | 42,866 | | | — | | | Other asset-backed securities | 82,534 | | | (3,297) | | | 39 | | | (2,186) | | | 77,090 | | | 1 | | Total fixed maturities | $ | 18,835,809 | | | $ | (10,395) | | | $ | 254,587 | | | $ | (1,924,989) | | | $ | 17,155,012 | | | 100 | |
(1)Amount reported in the balance sheet. (2)At fair value.
|
| Schedule of Fixed Maturities by Contractual Maturity |
A schedule of fixed maturities available for sale by contractual maturity date at June 30, 2025, is shown below on an amortized cost basis, net of allowance for credit losses, and on a fair value basis. Actual disposition dates could differ from contractual maturities due to call or prepayment provisions. | | | | | | | | | | | | | At June 30, 2025 | | Amortized
Cost, net | | Fair
Value | | Fixed maturities available for sale: | | | | | Due in one year or less | $ | 96,098 | | | $ | 96,423 | | | Due after one year through five years | 809,469 | | | 833,243 | | | Due after five years through ten years | 1,916,943 | | | 1,958,923 | | | Due after ten years through twenty years | 9,007,319 | | | 8,411,758 | | | Due after twenty years | 7,043,430 | | | 5,989,520 | | | Mortgage-backed and asset-backed securities | 76,183 | | | 75,487 | | | $ | 18,949,442 | | | $ | 17,365,354 | |
|
| Schedule of Analysis of Investment Operations |
"Net investment income" for the three and six month periods ended June 30, 2025 and 2024 is summarized as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended
June 30, | | Six Months Ended
June 30, | | 2025 | | 2024 | | % Change | | 2025 | | 2024 | | % Change | | Fixed maturities available for sale | $ | 245,205 | | | $ | 247,215 | | | (1) | | | $ | 487,415 | | | $ | 493,313 | | | (1) | | | Policy loans | 13,850 | | | 13,084 | | | 6 | | | 27,508 | | | 25,900 | | | 6 | | | Mortgage loans | 5,350 | | | 6,909 | | | (23) | | | 12,018 | | | 13,669 | | | (12) | | Other long-term investments(1) | 21,438 | | | 18,953 | | | 13 | | | 44,517 | | | 38,616 | | | 15 | | | Short-term investments | 3,059 | | | 3,625 | | | | | 4,535 | | | 5,313 | | | | | 288,902 | | | 289,786 | | | — | | | 575,993 | | | 576,811 | | | — | | | Less investment expense | (6,733) | | | (4,150) | | | 62 | | | (13,210) | | | (8,597) | | | 54 | | Net investment income | $ | 282,169 | | | $ | 285,636 | | | (1) | | | $ | 562,783 | | | $ | 568,214 | | | (1) | |
|
| Schedule of Realized Gains (Losses) on Investments |
Selected information about sales of fixed maturities available for sale is as follows: | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended
June 30, | | Six Months Ended
June 30, | | 2025 | | 2024 | | 2025 | | 2024 | | Fixed maturities available for sale: | | | | | | | | Proceeds from sales(1) | $ | 218,156 | | | $ | 483,051 | | | $ | 272,067 | | | $ | 510,904 | | | Gross realized gains | 1,617 | | | 3,869 | | | 3,095 | | | 4,044 | | | Gross realized losses | (7,026) | | | (13,933) | | | (8,490) | | | (13,968) | |
(1)During the three and six months ended June 30, 2025 and 2024, the Company had $0 unsettled trades. An analysis of "realized gains (losses)" is as follows: | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended
June 30, | | Six Months Ended
June 30, | | 2025 | | 2024 | | 2025 | | 2024 | | Realized investment gains (losses): | | | | | | | | | Fixed maturities available for sale: | | | | | | | | Sales and other(1) | $ | (12,837) | | | $ | (10,113) | | | $ | (12,049) | | | $ | (9,973) | | | | | | | | | | | Provision for credit losses | — | | | (104) | | | 40 | | | (16) | | | Fair value option—change in fair value | (8,476) | | | (3,691) | | | (6,105) | | | (19,094) | | Mortgage loans | (126) | | | (1,280) | | | 307 | | | (2,154) | | | Other investments | (264) | | | 837 | | | (1,342) | | | 1,151 | | Realized gains (losses) from investments | (21,703) | | | (14,351) | | | (19,149) | | | (30,086) | | | | | | | | | | | Other gains (losses) | 3,129 | | | 1,762 | | | 660 | | | 5,698 | | Total realized gains (losses) | (18,574) | | | (12,589) | | | (18,489) | | | (24,388) | | | Applicable tax | 3,900 | | | 2,644 | | | 3,882 | | | 5,122 | | Realized gains (losses), net of tax | $ | (14,674) | | | $ | (9,945) | | | $ | (14,607) | | | $ | (19,266) | |
(1)During the three months ended June 30, 2025 and 2024, the Company recorded $72.6 million and $12.0 million of issuer-initiated exchanges of fixed maturities (noncash transactions) that resulted in $(3.2) million and $0 realized gains (losses) respectively. During the six months ended June 30, 2025 and 2024, the Company recorded $128.3 million and $78.9 million of issuer-initiated exchanges of fixed maturities (noncash transactions) that resulted in $(3.1) million and $0 realized gains (losses) respectively.
|
| Schedule of Fair Value of Fixed Maturities Measured on a Recurring Basis |
The following tables represent the fair value of fixed maturities measured on a recurring basis at June 30, 2025 and December 31, 2024: | | | | | | | | | | | | | | | | | | | | | | | | | Fair Value Measurement at June 30, 2025: | | Quoted Prices in
Active Markets
for Identical
Assets (Level 1) | | Significant Other
Observable
Inputs (Level 2) | | Significant
Unobservable
Inputs (Level 3) | | Total Fair
Value | | Fixed maturities available for sale | | | | | | | | | U.S. Government direct, guaranteed, and government-sponsored enterprises | $ | — | | | $ | 380,035 | | | $ | — | | | $ | 380,035 | | | States, municipalities, and political subdivisions | — | | | 2,692,777 | | | — | | | 2,692,777 | | | Foreign governments | — | | | 29,606 | | | — | | | 29,606 | | | Corporates, by sector: | | | | | | | | Industrials | — | | | 7,222,920 | | | 178,542 | | | 7,401,462 | | | Financial | — | | | 4,603,643 | | | 121,976 | | | 4,725,619 | | | | | | | | | | Utilities | — | | | 1,942,506 | | | 117,879 | | | 2,060,385 | | | Total corporates | — | | | 13,769,069 | | | 418,397 | | | 14,187,466 | | | Collateralized debt obligations | — | | | — | | | — | | | — | | | Other asset-backed securities | — | | | 42,877 | | | 32,593 | | | 75,470 | | Total fixed maturities | $ | — | | | $ | 16,914,364 | | | $ | 450,990 | | | $ | 17,365,354 | | | Percentage of total | — | % | | 97 | % | | 3 | % | | 100 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | Fair Value Measurement at December 31, 2024: | | Quoted Prices in
Active Markets
for Identical
Assets (Level 1) | | Significant Other
Observable
Inputs (Level 2) | | Significant
Unobservable
Inputs (Level 3) | | Total Fair
Value | | Fixed maturities available for sale | | | | | | | | | U.S. Government direct, guaranteed, and government-sponsored enterprises | $ | — | | | $ | 358,960 | | | $ | — | | | $ | 358,960 | | | States, municipalities, and political subdivisions | — | | | 2,786,804 | | | — | | | 2,786,804 | | | Foreign governments | — | | | 28,031 | | | — | | | 28,031 | | | Corporates, by sector: | | | | | | | | Industrials | — | | | 6,998,900 | | | 183,356 | | | 7,182,256 | | | Financial | — | | | 4,551,737 | | | 124,193 | | | 4,675,930 | | | | | | | | | | | Utilities | — | | | 1,890,559 | | | 112,516 | | | 2,003,075 | | | Total corporates | — | | | 13,441,196 | | | 420,065 | | | 13,861,261 | | | Collateralized debt obligations | — | | | — | | | 42,866 | | | 42,866 | | | Other asset-backed securities | — | | | 65,907 | | | 11,183 | | | 77,090 | | Total fixed maturities | $ | — | | | $ | 16,680,898 | | | $ | 474,114 | | | $ | 17,155,012 | | | Percentage of total | — | % | | 97 | % | | 3 | % | | 100 | % |
The following tables disclose unrealized investment losses by class and major sector of fixed maturities available for sale at June 30, 2025 and December 31, 2024.
Analysis of Gross Unrealized Investment Losses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | At June 30, 2025 | | Less than Twelve Months | | Twelve Months or Longer | | Total | | Fair
Value | | Unrealized
Loss | | Fair
Value | | Unrealized
Loss | | Fair
Value | | Unrealized
Loss | | Fixed maturities available for sale: | | | | | | | | | | | | | Investment grade securities: | | | | | | | | | | | | | U.S. Government direct, guaranteed, and government-sponsored enterprises | $ | 4,658 | | | $ | (497) | | | $ | 365,241 | | | $ | (30,970) | | | $ | 369,899 | | | $ | (31,467) | | | States, municipalities, and political subdivisions | 788,376 | | | (47,539) | | | 1,449,974 | | | (586,385) | | | 2,238,350 | | | (633,924) | | | Foreign governments | — | | | — | | | 25,084 | | | (9,842) | | | 25,084 | | | (9,842) | | | Corporates, by sector: | | | | | | | | | | | | Industrials | 1,295,455 | | | (63,946) | | | 3,437,449 | | | (638,215) | | | 4,732,904 | | | (702,161) | | | Financial | 749,725 | | | (23,304) | | | 1,846,917 | | | (346,568) | | | 2,596,642 | | | (369,872) | | | | | | | | | | | | | | Utilities | 365,180 | | | (9,905) | | | 564,596 | | | (93,048) | | | 929,776 | | | (102,953) | | | Total corporates | 2,410,360 | | | (97,155) | | | 5,848,962 | | | (1,077,831) | | | 8,259,322 | | | (1,174,986) | | | | | | | | | | | | | | | Other asset-backed securities | 6,535 | | | (66) | | | 19,430 | | | (744) | | | 25,965 | | | (810) | | | Total investment grade securities | 3,209,929 | | | (145,257) | | | 7,708,691 | | | (1,705,772) | | | 10,918,620 | | | (1,851,029) | | | | | | | | | | | | | | | Below investment grade securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Corporates, by sector: | | | | | | | | | | | | | Industrials | 15,750 | | | (697) | | | 185,564 | | | (34,615) | | | 201,314 | | | (35,312) | | | Financial | 6,185 | | | (32) | | | 96,165 | | | (16,709) | | | 102,350 | | | (16,741) | | | | | | | | | | | | | | | Utilities | 15,778 | | | (794) | | | 35,846 | | | (5,777) | | | 51,624 | | | (6,571) | | | Total corporates | 37,713 | | | (1,523) | | | 317,575 | | | (57,101) | | | 355,288 | | | (58,624) | | | | | | | | | | | | | | | Other asset-backed securities | — | | | — | | | — | | | — | | | — | | | — | | | Total below investment grade securities | 37,713 | | | (1,523) | | | 317,575 | | | (57,101) | | | 355,288 | | | (58,624) | | Total fixed maturities | $ | 3,247,642 | | | $ | (146,780) | | | $ | 8,026,266 | | | $ | (1,762,873) | | | $ | 11,273,908 | | | $ | (1,909,653) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | At December 31, 2024 | | Less than Twelve Months | | Twelve Months or Longer | | Total | | Fair
Value | | Unrealized
Loss | | Fair
Value | | Unrealized
Loss | | Fair
Value | | Unrealized
Loss | | Fixed maturities available for sale: | | | | | | | | | | | | | Investment grade securities: | | | | | | | | | | | | | U.S. Government direct, guaranteed, and government-sponsored enterprises | $ | 11,268 | | | $ | (290) | | | $ | 347,527 | | | $ | (42,504) | | | $ | 358,795 | | | $ | (42,794) | | | States, municipalities, and political subdivisions | 778,244 | | | (32,894) | | | 1,532,264 | | | (501,865) | | | 2,310,508 | | | (534,759) | | | Foreign governments | — | | | — | | | 24,925 | | | (8,870) | | | 24,925 | | | (8,870) | | | Corporates, by sector: | | | | | | | | | | | | | Industrials | 1,487,940 | | | (73,404) | | | 3,433,034 | | | (690,920) | | | 4,920,974 | | | (764,324) | | | Financial | 961,932 | | | (52,946) | | | 1,785,130 | | | (333,873) | | | 2,747,062 | | | (386,819) | | | | | | | | | | | | | | | Utilities | 546,965 | | | (20,214) | | | 540,077 | | | (90,996) | | | 1,087,042 | | | (111,210) | | | Total corporates | 2,996,837 | | | (146,564) | | | 5,758,241 | | | (1,115,789) | | | 8,755,078 | | | (1,262,353) | | | | | | | | | | | | | | | Other asset-backed securities | 23,231 | | | (95) | | | 42,639 | | | (2,091) | | | 65,870 | | | (2,186) | | | Total investment grade securities | 3,809,580 | | | (179,843) | | | 7,705,596 | | | (1,671,119) | | | 11,515,176 | | | (1,850,962) | | | | | | | | | | | | | | | Below investment grade securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Corporates, by sector: | | | | | | | | | | | | | Industrials | 54,199 | | | (2,656) | | | 142,638 | | | (38,350) | | | 196,837 | | | (41,006) | | | Financial | 2,990 | | | (53) | | | 126,811 | | | (26,171) | | | 129,801 | | | (26,224) | | | | | | | | | | | | | | | Utilities | 19,263 | | | (1,113) | | | 24,003 | | | (5,684) | | | 43,266 | | | (6,797) | | | Total corporates | 76,452 | | | (3,822) | | | 293,452 | | | (70,205) | | | 369,904 | | | (74,027) | | | | | | | | | | | | | | | Other asset-backed securities | — | | | — | | | 2,198 | | | — | | | 2,198 | | | — | | | Total below investment grade securities | 76,452 | | | (3,822) | | | 295,650 | | | (70,205) | | | 372,102 | | | (74,027) | | Total fixed maturities | $ | 3,886,032 | | | $ | (183,665) | | | $ | 8,001,246 | | | $ | (1,741,324) | | | $ | 11,887,278 | | | $ | (1,924,989) | |
|
| Schedule of Fair Value, Assets Measured on Recurring Basis Using Significant Unobservable Inputs |
The following tables represent changes in fixed maturities measured at fair value on a recurring basis using significant unobservable inputs (Level 3): | | | | | | | | | | | | | | | | | | | | | | | | | Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | | Asset- backed Securities | | Collateralized
Debt
Obligations | | Corporates | | Total | Balance at January 1, 2025 | $ | 11,183 | | | $ | 42,866 | | | $ | 420,065 | | | $ | 474,114 | | | | | | | | | | | Included in realized gains / losses | — | | | (588) | | | (4) | | | (592) | | | Included in other comprehensive income | 71 | | | — | | | (3,328) | | | (3,257) | | | Acquisitions | 21,339 | | | — | | | 17,515 | | | 38,854 | | | Sales | — | | | (36,398) | | | — | | | (36,398) | | | Amortization | — | | | 1,893 | | | 13 | | | 1,906 | | Other(1) | — | | | (7,773) | | | (15,864) | | | (23,637) | | Transfers into Level 3(2) | — | | | — | | | — | | | — | | Transfers out of Level 3(2) | — | | | — | | | — | | | — | | Balance at June 30, 2025 | $ | 32,593 | | | $ | — | | | $ | 418,397 | | | $ | 450,990 | | | Percent of total fixed maturities | — | % | | — | % | | 3 | % | | 3 | % |
(1)Includes capitalized interest, foreign exchange adjustments, and principal repayments. (2)Considered to be transferred at the end of the period. Transfers into Level 3 occur when observable inputs are no longer available. Transfers out of Level 3 occur when observable inputs become available.
| | | | | | | | | | | | | | | | | | | | | | | | | Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | | Asset- backed Securities | | Collateralized
Debt
Obligations | | Corporates | | Total | Balance at January 1, 2024 | $ | — | | | $ | 42,146 | | | $ | 454,733 | | | $ | 496,879 | | | | | | | | | | | Included in realized gains / losses | — | | | — | | | — | | | — | | | Included in other comprehensive income | — | | | 742 | | | (9,905) | | | (9,163) | | | Acquisitions | — | | | — | | | 14,800 | | | 14,800 | | | Sales | — | | | — | | | — | | | — | | | Amortization | — | | | 2,277 | | | (33) | | | 2,244 | | Other(1) | — | | | (2,441) | | | (21,564) | | | (24,005) | | Transfers into Level 3(2) | — | | | — | | | — | | | — | | Transfers out of Level 3(2) | — | | | — | | | — | | | — | | Balance at June 30, 2024 | $ | — | | | $ | 42,724 | | | $ | 438,031 | | | $ | 480,755 | | | Percent of total fixed maturities | — | % | | — | % | | 3 | % | | 3 | % |
(1)Includes capitalized interest, foreign exchange adjustments, and principal repayments. (2)Considered to be transferred at the end of the period. Transfers into Level 3 occur when observable inputs are no longer available. Transfers out of Level 3 occur when observable inputs become available. The following table presents changes in unrealized gains and losses for the period included in accumulated other comprehensive income for assets held at the end of the reporting period for Level 3 classification: | | | | | | | | | | | | | | | | | | | | | | | | | Changes in Unrealized Gains (Losses) included in Accumulated Other Comprehensive Income for Assets Held at the End of the Period | | Asset-
backed Securities | | Collateralized
Debt
Obligations | | Corporates | | Total | At June 30, 2025 | $ | 71 | | | $ | — | | | $ | (3,328) | | | $ | (3,257) | | At June 30, 2024 | — | | | 742 | | | (9,905) | | | (9,163) | |
|
| Schedule of Fair Value Measurement Inputs and Valuation Techniques |
The following table represents quantitative information about Level 3 fair value measurements: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Quantitative Information about Level 3 Fair Value Measurements | | June 30, 2025 | | Fair Value | | Valuation
Techniques | | Significant Unobservable
Input | | Range | | Weighted- Average(1) | | Private placement fixed maturities | $ | 418,397 | | | Determination of credit spread | | Credit rating | | B to AAA | | BBB+ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Asset-backed securities | 32,593 | | | Determination of credit spread | | Credit rating | | CC to BBB | | BB+ | | | | | | | | | | | | $ | 450,990 | | | | | | | | | |
(1)Unobservable inputs were weighted by the relative fair value of the instruments.
|
| Schedule of Additional Information about Investments in Unrealized Loss Position |
The following table discloses information about fixed maturities available for sale in an unrealized loss position. | | | | | | | | | | | | | | | | | | | Less than Twelve Months | | Twelve Months or Longer | | Total | | Number of issues (CUSIPs) held: | | | | | | | As of June 30, 2025 | 644 | | | 1,486 | | | 2,130 | | | As of December 31, 2024 | 705 | | | 1,498 | | | 2,203 | |
|
| Schedule of Fixed Maturities, Allowance for Credit Loss |
A summary of the activity in the allowance for credit losses is as follows. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended
June 30, | | Six Months Ended
June 30, | | | 2025 | | 2024 | | 2025 | | 2024 | Allowance for credit losses beginning balance | | $ | 10,355 | | | $ | 7,027 | | | $ | 10,395 | | | $ | 7,115 | | | Additions to allowance for which credit losses were not previously recorded | | — | | | — | | | — | | | — | | | Additions (reductions) to allowance for fixed maturities that previously had an allowance | | — | | | 105 | | | (40) | | | 17 | | | Reduction of allowance for which the Company intends to sell or more likely than not will be required to sell or sold during the period | | — | | | — | | | — | | | — | | Allowance for credit losses ending balance | | $ | 10,355 | | | $ | 7,132 | | | $ | 10,355 | | | $ | 7,132 | |
|
| Schedule of Commercial Mortgage Loan Participations |
Summaries of commercial mortgage loans by property type and geographical location at June 30, 2025 and December 31, 2024 are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2025 | | December 31, 2024 | | Carrying Value | | % of Total | | Carrying Value | | % of Total | | Property type: | | | | | | | | | Industrial | $ | 148,190 | | | 32 | | | $ | 110,456 | | | 28 | | | Multi-family | 112,680 | | | 25 | | | 111,234 | | | 28 | | | Hospitality | 86,250 | | | 19 | | | 73,931 | | | 19 | | | Retail | 75,848 | | | 16 | | | 65,612 | | | 16 | | | Mixed use | 36,367 | | | 8 | | | 35,960 | | | 9 | | | Office | 3,061 | | | 1 | | | 6,539 | | | 2 | | | | | | | | | | | Total recorded investment | 462,396 | | | 101 | | | 403,732 | | | 102 | | | Less allowance for credit losses | (6,629) | | | (1) | | | (7,644) | | | (2) | | Carrying value, net of allowance for credit losses | $ | 455,767 | | | 100 | | | $ | 396,088 | | | 100 | |
| | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2025 | | December 31, 2024 | | Carrying Value | | % of Total | | Carrying Value | | % of Total | | Geographic location: | | | | | | | | | Texas | $ | 82,236 | | | 18 | | | $ | 75,131 | | | 19 | | | Florida | 81,203 | | | 18 | | | 63,308 | | | 16 | | | New Jersey | 55,941 | | | 12 | | | 51,744 | | | 13 | | | California | 47,708 | | | 10 | | | 48,371 | | | 12 | | | North Carolina | 41,992 | | | 9 | | | 23,253 | | | 6 | | | Alabama | 36,577 | | | 8 | | | 35,850 | | | 9 | | | Other | 116,739 | | | 26 | | | 106,075 | | | 27 | | | Total recorded investment | 462,396 | | | 101 | | | 403,732 | | | 102 | | | Less allowance for credit losses | (6,629) | | | (1) | | | (7,644) | | | (2) | | Carrying value, net of allowance for credit losses | $ | 455,767 | | | 100 | | | $ | 396,088 | | | 100 | |
|
| Schedule of Commercial Loan Participations, Credit Quality Indicators |
The following tables are reflective of the key factors, debt service coverage ratios, and loan-to-value (LTV) ratios that are utilized by management to monitor the performance of the portfolios. The Company only makes new investments in commercial mortgage loans that have a LTV ratio less than 80%. LTV ratios that exceed 80% are generally a result of decreases in the valuation of the underlying property. Generally, a higher LTV ratio and a lower debt service coverage ratio equates to higher risk of loss. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2025 | | Recorded Investment | | Debt Service Coverage Ratios(1) | | | | | | <1.00x | | 1.00x—1.20x | | >1.20x | | Total | | % of Gross Total | Loan-to-value ratio(2): | | | | | | | | | | | Less than 70% | $ | 114,189 | | | $ | 56,783 | | | $ | 242,599 | | | $ | 413,571 | | | 89 | | | 70% to 80% | — | | | — | | | — | | | — | | | — | | | 81% to 90% | — | | | — | | | — | | | — | | | — | | | Greater than 90% | 12,458 | | | 36,367 | | | — | | | 48,825 | | | 11 | | | Total | $ | 126,647 | | | $ | 93,150 | | | $ | 242,599 | | | 462,396 | | | 100 | | | Less allowance for credit losses | | | | | | | (6,629) | | | | Total, net of allowance for credit losses | | | | | | | $ | 455,767 | | | |
(1)Annual net operating income divided by annual mortgage debt service (principal and interest). (2)Loan balance divided by stabilized appraised value at origination, including planned renovations and stabilized occupancy. Updated internal valuations are used when a loan is materially underperforming. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2024 | | Recorded Investment | | Debt Service Coverage Ratios(1) | | | | | | <1.00x | | 1.00x—1.20x | | >1.20x | | Total | | % of Gross Total | Loan-to-value ratio(2): | | | | | | | | | | | Less than 70% | $ | 88,507 | | | $ | 64,494 | | | $ | 196,867 | | | $ | 349,868 | | | 87 | | | 70% to 80% | — | | | — | | | — | | | — | | | — | | | 81% to 90% | — | | | — | | | — | | | — | | | — | | | Greater than 90% | 16,136 | | | 37,728 | | | — | | | 53,864 | | | 13 | | | Total | $ | 104,643 | | | $ | 102,222 | | | $ | 196,867 | | | 403,732 | | | 100 | | | Less allowance for credit losses | | | | | | | (7,644) | | | | Total, net of allowance for credit losses | | | | | | | $ | 396,088 | | | |
(1)Annual net operating income divided by annual mortgage debt service (principal and interest). (2)Loan balance divided by stabilized appraised value at origination, including planned renovations and stabilized occupancy. Updated internal valuations are used when a loan is materially underperforming.
|
| Schedule of Commercial Loan Participations, Allowance for Credit Loss |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended
June 30, | | Six Months Ended
June 30, | | | 2025 | | 2024 | | 2025 | | 2024 | Allowance for credit losses beginning balance | | $ | 6,731 | | | $ | 4,546 | | | $ | 7,644 | | | $ | 3,672 | | | | | | | | | | | | Provision (reversal) for credit losses | | 110 | | | 1,280 | | | (138) | | | 2,154 | | Reduction in allowance due to dispositions | | (212) | | | — | | | (877) | | | — | | Allowance for credit losses ending balance | | $ | 6,629 | | | $ | 5,826 | | | $ | 6,629 | | | $ | 5,826 | |
|
| Schedule of Other Long-Term Investments |
Other long-term investments consist of the following assets: | | | | | | | | | | | | | June 30, | | June 30,
2025 | | December 31, 2024 | | Investment funds | $ | 1,022,425 | | | $ | 986,766 | | Company-owned life insurance(1) | 202,854 | | | 202,734 | | | Other | 43,345 | | | 46,259 | | Total | $ | 1,268,624 | | | $ | 1,235,759 | |
(1) Company-owned life insurance (COLI) is reported at cash surrender value.
|
| Schedule of Investment Funds |
The following table presents additional information about the Company's investment funds as of June 30, 2025 and December 31, 2024 at fair value: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fair Value | | Unfunded Commitments(2) | | | | | Investment Category | | June 30,
2025 | | December 31, 2024 | | June 30,
2025 | | Redemption Term/Notice(1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial mortgage loans | | $ | 577,472 | | | $ | 566,142 | | | $ | 170,251 | | | Fully redeemable and non-redeemable with varying terms. | | Opportunistic and private credit | | 219,031 | | | 202,008 | | | 171,756 | | | Fully redeemable and non-redeemable with varying terms. | | | | | | | | | | | | | | | | | | | | | | | Infrastructure | | 183,102 | | | 179,627 | | | 25,000 | | | Fully redeemable and non-redeemable with varying terms. | | | | | | | | | | | | | | | | | | | | | | | Other | | 42,820 | | | 38,989 | | | 57,419 | | | Non-redeemable with varying terms | | | Total investment funds | | $ | 1,022,425 | | | $ | 986,766 | | | $ | 424,426 | | | | |
(1) Non-redeemable funds generally have an expected life of 7 to 12 years from fund closing with extension options of 1 to 4 years. Redemptions are paid out throughout the life of the funds at the General Partner's discretion. Redeemable funds can generally be redeemed over 6 to 36 months upon request from limited partners. (2) Unfunded commitments include unfunded balances during the investment period. After an investment period ends, the fund can call capital based on limited and specified reasons. As of June 30, 2025, unfunded commitments totaled $567 million, including funds past the investment period.
|