Investments (Tables)
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6 Months Ended |
Jun. 30, 2025 |
|---|
| Investments, Debt and Equity Securities [Abstract] |
|
| Schedule of AFS Securities Reconciliation |
The amortized cost, gross unrealized gains and losses, and fair value of available-for-sale (“AFS”) securities were as follows:
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June 30, 2025 |
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|
Amortized cost |
|
|
Gross unrealized gains |
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|
Gross unrealized losses |
|
|
Fair value |
|
|
|
(In thousands) |
|
Securities available-for-sale, carried at fair value: |
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|
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|
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Fixed-maturity securities: |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government and agencies |
|
$ |
9,817 |
|
|
$ |
57 |
|
|
$ |
(205 |
) |
|
$ |
9,669 |
|
Foreign government |
|
|
186,815 |
|
|
|
1,700 |
|
|
|
(6,079 |
) |
|
|
182,436 |
|
States and political subdivisions |
|
|
126,677 |
|
|
|
100 |
|
|
|
(13,977 |
) |
|
|
112,800 |
|
Corporates |
|
|
1,990,113 |
|
|
|
19,854 |
|
|
|
(90,960 |
) |
|
|
1,919,007 |
|
Residential mortgage-backed securities |
|
|
628,760 |
|
|
|
2,219 |
|
|
|
(58,313 |
) |
|
|
572,666 |
|
Commercial mortgage-backed securities |
|
|
106,388 |
|
|
|
101 |
|
|
|
(8,940 |
) |
|
|
97,549 |
|
Other asset-backed securities |
|
|
206,131 |
|
|
|
1,252 |
|
|
|
(4,802 |
) |
|
|
202,581 |
|
Total fixed-maturity securities |
|
$ |
3,254,701 |
|
|
$ |
25,283 |
|
|
$ |
(183,276 |
) |
|
$ |
3,096,708 |
|
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|
|
|
|
|
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|
|
|
|
|
|
|
|
|
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December 31, 2024 |
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|
|
Amortized cost |
|
|
Gross unrealized gains |
|
|
Gross unrealized losses |
|
|
Fair value |
|
|
|
(In thousands) |
|
Securities available-for-sale, carried at fair value: |
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|
|
|
|
|
|
|
|
|
|
Fixed-maturity securities: |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government and agencies |
|
$ |
9,822 |
|
|
$ |
7 |
|
|
$ |
(326 |
) |
|
$ |
9,503 |
|
Foreign government |
|
|
171,033 |
|
|
|
1,597 |
|
|
|
(6,206 |
) |
|
|
166,424 |
|
States and political subdivisions |
|
|
128,359 |
|
|
|
96 |
|
|
|
(14,886 |
) |
|
|
113,569 |
|
Corporates |
|
|
1,929,350 |
|
|
|
11,853 |
|
|
|
(116,095 |
) |
|
|
1,825,108 |
|
Residential mortgage-backed securities |
|
|
552,611 |
|
|
|
536 |
|
|
|
(66,590 |
) |
|
|
486,557 |
|
Commercial mortgage-backed securities |
|
|
110,426 |
|
|
|
87 |
|
|
|
(11,068 |
) |
|
|
99,445 |
|
Other asset-backed securities |
|
|
250,882 |
|
|
|
1,396 |
|
|
|
(6,758 |
) |
|
|
245,520 |
|
Total fixed-maturity securities |
|
$ |
3,152,483 |
|
|
$ |
15,572 |
|
|
$ |
(221,929 |
) |
|
$ |
2,946,126 |
|
|
| Fixed-maturity Securities Classified by Contractual Maturity Securities Date |
The scheduled maturity distribution of the AFS fixed-maturity securities portfolio as of June 30, 2025 was as follows:
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Amortized cost |
|
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Fair value |
|
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|
(In thousands) |
|
Due in one year or less |
|
$ |
204,229 |
|
|
$ |
203,755 |
|
Due after one year through five years |
|
|
804,733 |
|
|
|
795,769 |
|
Due after five years through 10 years |
|
|
750,594 |
|
|
|
711,116 |
|
Due after 10 years |
|
|
553,866 |
|
|
|
513,272 |
|
|
|
|
2,313,422 |
|
|
|
2,223,912 |
|
Mortgage- and asset-backed securities |
|
|
941,279 |
|
|
|
872,796 |
|
Total AFS fixed-maturity securities |
|
$ |
3,254,701 |
|
|
$ |
3,096,708 |
|
|
| Net Investment Income |
Net Investment Income. The components of net investment income were as follows:
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Three months ended June 30, |
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|
Six months ended June 30, |
|
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
|
|
(In thousands) |
|
Fixed-maturity securities (available-for-sale) |
|
$ |
34,346 |
|
|
$ |
30,618 |
|
|
$ |
67,859 |
|
|
$ |
60,554 |
|
Fixed-maturity security (held-to-maturity) |
|
|
14,621 |
|
|
|
15,659 |
|
|
|
29,289 |
|
|
|
31,444 |
|
Equity securities |
|
|
315 |
|
|
|
323 |
|
|
|
630 |
|
|
|
712 |
|
Policy loans and other invested assets |
|
|
482 |
|
|
|
543 |
|
|
|
1,514 |
|
|
|
1,005 |
|
Cash, cash equivalents and short-term investments |
|
|
5,959 |
|
|
|
6,640 |
|
|
|
12,478 |
|
|
|
13,621 |
|
Total return on deposit asset underlying 10% coinsurance agreement (1) |
|
|
1,918 |
|
|
|
2,400 |
|
|
|
4,306 |
|
|
|
4,574 |
|
Gross investment income |
|
|
57,641 |
|
|
|
56,183 |
|
|
|
116,076 |
|
|
|
111,910 |
|
Investment expenses |
|
|
(2,092 |
) |
|
|
(2,072 |
) |
|
|
(4,188 |
) |
|
|
(4,208 |
) |
Investment income net of investment expenses |
|
|
55,549 |
|
|
|
54,111 |
|
|
|
111,888 |
|
|
|
107,702 |
|
Interest expense on surplus note |
|
|
(14,621 |
) |
|
|
(15,659 |
) |
|
|
(29,289 |
) |
|
|
(31,444 |
) |
Net investment income |
|
$ |
40,928 |
|
|
$ |
38,452 |
|
|
$ |
82,599 |
|
|
$ |
76,258 |
|
(1)Includes $0.2 million and $0.7 million of net gains (losses) recognized for the change in fair value of the deposit asset underlying the 10% coinsurance agreement for the three and six months ended June 30, 2025, respectively. Includes $0.2 million and $0.1 million of net gains (losses) recognized for the change in fair value of the deposit asset underlying the 10% coinsurance agreement for the three and six months ended June 30, 2024, respectively.
|
| Schedule of Components of Investment Gains (Losses) |
The components of investment gains (losses), as well as details on gross realized investment gains (losses) and other investment gains (losses) were as follows:
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
|
Six months ended June 30, |
|
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
|
|
(In thousands) |
|
Realized investment gains (losses): |
|
|
|
|
|
|
|
|
|
|
|
|
Gross gains from sales, maturities and calls of available-for-sale fixed-maturity securities |
|
$ |
410 |
|
|
$ |
673 |
|
|
$ |
428 |
|
|
$ |
680 |
|
Gross losses from sales, maturities and calls of available-for-sale fixed-maturity securities |
|
|
(1,976 |
) |
|
|
(108 |
) |
|
|
(2,073 |
) |
|
|
(108 |
) |
Gross losses from sales, maturities and calls of equity securities |
|
|
(772 |
) |
|
|
- |
|
|
|
(776 |
) |
|
|
- |
|
Net realized investment gains (losses): |
|
|
(2,338 |
) |
|
|
565 |
|
|
|
(2,421 |
) |
|
|
572 |
|
Other investment gains (losses): |
|
|
|
|
|
|
|
|
|
|
|
|
Market gains (losses) recognized in net income during the period on equity securities |
|
|
(602 |
) |
|
|
(675 |
) |
|
|
226 |
|
|
|
620 |
|
Gains (losses) from equity method investments |
|
|
60 |
|
|
|
- |
|
|
|
60 |
|
|
|
- |
|
Gains (losses) from bifurcated options |
|
|
10 |
|
|
|
3 |
|
|
|
15 |
|
|
|
(1 |
) |
Gains (losses) on trading securities |
|
|
4 |
|
|
|
8 |
|
|
|
11 |
|
|
|
15 |
|
Other investment gains (losses): |
|
|
(528 |
) |
|
|
(664 |
) |
|
|
312 |
|
|
|
634 |
|
Investment gains (losses) |
|
$ |
(2,866 |
) |
|
$ |
(99 |
) |
|
$ |
(2,109 |
) |
|
$ |
1,206 |
|
|
| Schedule of Proceeds from Sales or Other Redemptions of Available-for-Sale Securities |
The proceeds from sales or other redemptions of AFS securities were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
|
Six months ended June 30, |
|
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
|
|
(In thousands) |
|
Proceeds from sales or other redemptions |
|
$ |
137,000 |
|
|
$ |
130,676 |
|
|
$ |
237,041 |
|
|
$ |
217,094 |
|
|
| Schedule of Securities in Unrealized Loss Position |
The following tables summarize all AFS securities in an unrealized loss position for which an allowance for credit losses has not been recorded as of June 30, 2025 and December 31, 2024, aggregated by major security type and by length of time such securities have continuously been in an unrealized loss position:
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2025 |
|
|
|
Less than 12 months |
|
|
12 months or longer |
|
|
|
Fair value |
|
|
Unrealized losses |
|
|
Fair value |
|
|
Unrealized losses |
|
|
|
(In thousands) |
|
Fixed-maturity securities: |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government and agencies |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
5,780 |
|
|
$ |
(205 |
) |
Foreign government |
|
|
35,523 |
|
|
|
(713 |
) |
|
|
71,247 |
|
|
|
(5,366 |
) |
States and political subdivisions |
|
|
9,197 |
|
|
|
(412 |
) |
|
|
98,178 |
|
|
|
(13,565 |
) |
Corporates |
|
|
301,840 |
|
|
|
(8,309 |
) |
|
|
917,117 |
|
|
|
(82,651 |
) |
Residential mortgage-backed securities |
|
|
85,725 |
|
|
|
(993 |
) |
|
|
318,434 |
|
|
|
(57,320 |
) |
Commercial mortgage-backed securities |
|
|
5,920 |
|
|
|
(17 |
) |
|
|
85,058 |
|
|
|
(8,923 |
) |
Other asset-backed securities |
|
|
12,164 |
|
|
|
(62 |
) |
|
|
106,752 |
|
|
|
(4,740 |
) |
Total fixed-maturity securities |
|
$ |
450,369 |
|
|
$ |
(10,506 |
) |
|
$ |
1,602,566 |
|
|
$ |
(172,770 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2024 |
|
|
|
Less than 12 months |
|
|
12 months or longer |
|
|
|
Fair value |
|
|
Unrealized losses |
|
|
Fair value |
|
|
Unrealized losses |
|
|
|
(In thousands) |
|
Fixed-maturity securities: |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government and agencies |
|
$ |
3,529 |
|
|
$ |
(19 |
) |
|
$ |
5,660 |
|
|
$ |
(307 |
) |
Foreign government |
|
|
15,044 |
|
|
|
(139 |
) |
|
|
83,923 |
|
|
|
(6,067 |
) |
States and political subdivisions |
|
|
9,933 |
|
|
|
(350 |
) |
|
|
99,389 |
|
|
|
(14,536 |
) |
Corporates |
|
|
398,232 |
|
|
|
(9,422 |
) |
|
|
1,000,264 |
|
|
|
(106,673 |
) |
Residential mortgage-backed securities |
|
|
106,276 |
|
|
|
(2,605 |
) |
|
|
327,850 |
|
|
|
(63,985 |
) |
Commercial mortgage-backed securities |
|
|
2,005 |
|
|
|
(1 |
) |
|
|
89,876 |
|
|
|
(11,067 |
) |
Other asset-backed securities |
|
|
15,086 |
|
|
|
(81 |
) |
|
|
114,077 |
|
|
|
(6,677 |
) |
Total fixed-maturity securities |
|
$ |
550,105 |
|
|
$ |
(12,617 |
) |
|
$ |
1,721,039 |
|
|
$ |
(209,312 |
) |
|