Iowa | 45-2302834 | |||||||||||
(State of | ( |
118 Second Avenue SE | ||||||||||||||
Cedar Rapids | Iowa | 52401 | ||||||||||||
(Address of principal executive offices) (Zip Code) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Common Stock, $0.001 par value | UFCS | The NASDAQ Global Select Market |
Large accelerated filer | ☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | ☐ | ||||||||||||||||
Emerging growth company | ☐ |
Page | |||||
Signatures |
United Fire Group, Inc. Consolidated Balance Sheets |
United Fire Group, Inc. Consolidated Balance Sheets | ||||||||||||||||||
(In Thousands, Except Share Data) | September 30, 2017 | December 31, 2016 | (In Thousands, Except Share Data) | June 30, 2020 | December 31, 2019 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||
ASSETS | ASSETS | |||||||||||||||||
Investments | Investments | |||||||||||||||||
Fixed maturities | Fixed maturities | |||||||||||||||||
Held-to-maturity, at amortized cost (fair value $150 in 2017 and $150 in 2016) | $ | 150 | $ | 150 | ||||||||||||||
Available-for-sale, at fair value (amortized cost $1,480,730 in 2017 and $1,458,235 in 2016) | 1,498,662 | 1,453,286 | ||||||||||||||||
Trading securities, at fair value (amortized cost $11,833 in 2017 and $13,054 in 2016) | 13,673 | 14,390 | ||||||||||||||||
Equity securities | ||||||||||||||||||
Available-for-sale, at fair value (cost $57,387 in 2017 and $59,994 in 2016) | 269,341 | 246,370 | ||||||||||||||||
Trading securities, at fair value (cost $5,888 in 2017 and $5,434 in 2016) | 6,330 | 5,644 | ||||||||||||||||
Available-for-sale, at fair value (amortized cost $1,595,817 in 2020 and $1,659,760 in 2019; allowance for credit losses $10 in 2020 and $— in 2019) | Available-for-sale, at fair value (amortized cost $1,595,817 in 2020 and $1,659,760 in 2019; allowance for credit losses $10 in 2020 and $— in 2019) | $ | 1,696,166 | $ | 1,719,607 | |||||||||||||
Trading securities, at fair value (amortized cost $8,916 in 2020 and $11,941 in 2019) | Trading securities, at fair value (amortized cost $8,916 in 2020 and $11,941 in 2019) | 11,223 | 15,256 | |||||||||||||||
Equity securities at fair value (cost $63,615 in 2020 and $67,529 in 2019) | Equity securities at fair value (cost $63,615 in 2020 and $67,529 in 2019) | 207,626 | 299,203 | |||||||||||||||
Mortgage loans | Mortgage loans | 47,685 | 42,520 | |||||||||||||||
Less: allowance for mortgage loan losses | Less: allowance for mortgage loan losses | 76 | 72 | |||||||||||||||
Mortgage loans, net | Mortgage loans, net | 47,609 | 42,448 | |||||||||||||||
Other long-term investments | 49,966 | 51,769 | Other long-term investments | 68,941 | 78,410 | |||||||||||||
Short-term investments | 175 | 175 | Short-term investments | 175 | 175 | |||||||||||||
1,838,297 | 1,771,784 | 2,031,740 | 2,155,099 | |||||||||||||||
Cash and cash equivalents | 98,610 | 89,194 | Cash and cash equivalents | 146,262 | 120,722 | |||||||||||||
Accrued investment income | 14,911 | 13,617 | Accrued investment income | 14,485 | 15,182 | |||||||||||||
Premiums receivable (net of allowance for doubtful accounts of $1,170 in 2017 and $1,255 in 2016) | 351,410 | 306,202 | ||||||||||||||||
Premiums receivable (net of allowance for doubtful accounts of $947 in 2020 and $1,239 in 2019) | Premiums receivable (net of allowance for doubtful accounts of $947 in 2020 and $1,239 in 2019) | 376,808 | 357,632 | |||||||||||||||
Deferred policy acquisition costs | 97,477 | 93,362 | Deferred policy acquisition costs | 97,566 | 94,292 | |||||||||||||
Property and equipment (primarily land and buildings, at cost, less accumulated depreciation of $52,081 in 2017 and $50,925 in 2016) | 64,520 | 55,524 | ||||||||||||||||
Reinsurance receivables and recoverables | 68,116 | 62,707 | ||||||||||||||||
Property and equipment (primarily land and buildings, at cost, less accumulated depreciation of $52,630 in 2020 and $50,183 in 2019) | Property and equipment (primarily land and buildings, at cost, less accumulated depreciation of $52,630 in 2020 and $50,183 in 2019) | 126,036 | 116,989 | |||||||||||||||
Reinsurance receivables and recoverables (net of allowance for credit losses of $41 in 2020 and $— in 2019) | Reinsurance receivables and recoverables (net of allowance for credit losses of $41 in 2020 and $— in 2019) | 127,881 | 72,369 | |||||||||||||||
Prepaid reinsurance premiums | 3,821 | 3,782 | Prepaid reinsurance premiums | 14,506 | 9,550 | |||||||||||||
Goodwill and intangible assets | Goodwill and intangible assets | 22,188 | 22,542 | |||||||||||||||
Income taxes receivable | 21,360 | 14,285 | Income taxes receivable | 38,374 | 19,190 | |||||||||||||
Goodwill and intangible assets | 24,163 | 24,740 | ||||||||||||||||
Other assets | 15,302 | 13,943 | Other assets | 39,067 | 29,905 | |||||||||||||
Assets held for sale | 1,592,846 | 1,605,618 | ||||||||||||||||
TOTAL ASSETS | $ | 4,190,833 | $ | 4,054,758 | TOTAL ASSETS | $ | 3,034,913 | $ | 3,013,472 | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||
Liabilities | Liabilities | |||||||||||||||||
Future policy benefits and losses, claims and loss settlement expenses | Future policy benefits and losses, claims and loss settlement expenses | |||||||||||||||||
Losses and loss settlement expenses | $ | 1,237,280 | $ | 1,123,896 | Losses and loss settlement expenses | $ | 1,477,689 | $ | 1,421,754 | |||||||||
Unearned premiums | 490,443 | 443,802 | Unearned premiums | 530,801 | 505,162 | |||||||||||||
Accrued expenses and other liabilities | 130,618 | 147,104 | Accrued expenses and other liabilities | 151,257 | 155,498 | |||||||||||||
Deferred income taxes | 24,707 | 7,849 | ||||||||||||||||
Liabilities held for sale | 1,363,737 | 1,390,223 | ||||||||||||||||
Deferred tax liability | Deferred tax liability | 14,499 | 20,586 | |||||||||||||||
TOTAL LIABILITIES | $ | 3,246,785 | $ | 3,112,874 | TOTAL LIABILITIES | $ | 2,174,246 | $ | 2,103,000 | |||||||||
Stockholders’ Equity | Stockholders’ Equity | |||||||||||||||||
Common stock, $0.001 par value; authorized 75,000,000 shares; 24,849,889 and 25,429,769 shares issued and outstanding in 2017 and 2016, respectively | $ | 25 | $ | 25 | ||||||||||||||
Common stock, $0.001 par value; authorized 75,000,000 shares; 25,031,234 and 25,015,963 shares issued and outstanding in 2020 and 2019, respectively | Common stock, $0.001 par value; authorized 75,000,000 shares; 25,031,234 and 25,015,963 shares issued and outstanding in 2020 and 2019, respectively | $ | 25 | $ | 25 | |||||||||||||
Additional paid-in capital | 193,114 | 216,482 | Additional paid-in capital | 199,796 | 200,179 | |||||||||||||
Retained earnings | 600,988 | 616,322 | Retained earnings | 613,996 | 697,116 | |||||||||||||
Accumulated other comprehensive income, net of tax | 149,921 | 109,055 | Accumulated other comprehensive income, net of tax | 46,850 | 13,152 | |||||||||||||
TOTAL STOCKHOLDERS’ EQUITY | $ | 944,048 | $ | 941,884 | TOTAL STOCKHOLDERS’ EQUITY | $ | 860,667 | $ | 910,472 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 4,190,833 | $ | 4,054,758 | TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 3,034,913 | $ | 3,013,472 |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||
(In Thousands, Except Share Data) | 2017 | 2016 | 2017 | 2016 | (In Thousands, Except Share Data) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||
Revenues | Revenues | |||||||||||||||||||||||||||||||||||||||||||||||||
Net premiums earned | $ | 255,758 | $ | 239,469 | $ | 737,424 | $ | 691,976 | Net premiums earned | $ | 263,609 | $ | 276,486 | $ | 532,458 | $ | 538,800 | |||||||||||||||||||||||||||||||||
Investment income, net of investment expenses | 13,792 | 14,027 | 38,561 | 35,017 | Investment income, net of investment expenses | 12,696 | 14,120 | 15,059 | 30,632 | |||||||||||||||||||||||||||||||||||||||||
Net realized investment gains (includes reclassifications for net unrealized investment gains on available-for-sale securities of $419 and $5,799 in 2017 and $2,320 and $4,666 in 2016; previously included in accumulated other comprehensive income) | 67 | 2,129 | 3,397 | 4,832 | ||||||||||||||||||||||||||||||||||||||||||||||
Net realized investment gains (losses) (includes reclassifications for net unrealized investment gains/(losses) on available-for-sale securities of $80 and $(41) in 2020 and $37 and $127 in 2019; previously included in accumulated other comprehensive income) | Net realized investment gains (losses) (includes reclassifications for net unrealized investment gains/(losses) on available-for-sale securities of $80 and $(41) in 2020 and $37 and $127 in 2019; previously included in accumulated other comprehensive income) | 15,779 | 13,591 | (77,628) | 40,304 | |||||||||||||||||||||||||||||||||||||||||||||
Other income | Other income | 5,719 | — | 5,719 | — | |||||||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 269,617 | $ | 255,625 | $ | 779,382 | $ | 731,825 | Total revenues | $ | 297,803 | $ | 304,197 | $ | 475,608 | $ | 609,736 | |||||||||||||||||||||||||||||||||
Benefits, Losses and Expenses | Benefits, Losses and Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||
Losses and loss settlement expenses | $ | 223,208 | $ | 169,303 | $ | 568,356 | $ | 475,568 | Losses and loss settlement expenses | $ | 204,973 | $ | 220,009 | $ | 391,476 | $ | 384,249 | |||||||||||||||||||||||||||||||||
Amortization of deferred policy acquisition costs | 52,986 | 52,240 | 154,845 | 151,216 | Amortization of deferred policy acquisition costs | 51,893 | 54,795 | 106,345 | 107,014 | |||||||||||||||||||||||||||||||||||||||||
Other underwriting expenses (includes reclassifications for employee benefit costs of $1,352 and $4,056 in 2017 and $1,371 and $4,113 in 2016; previously included in accumulated other comprehensive income) | 25,817 | 20,047 | 69,900 | 61,469 | ||||||||||||||||||||||||||||||||||||||||||||||
Other underwriting expenses (includes reclassifications for employee benefit costs of $1,072 and $2,144 in 2020 and $1,124 and $2,248 in 2019; previously included in accumulated other comprehensive income) | Other underwriting expenses (includes reclassifications for employee benefit costs of $1,072 and $2,144 in 2020 and $1,124 and $2,248 in 2019; previously included in accumulated other comprehensive income) | 36,701 | 33,964 | 78,550 | 68,367 | |||||||||||||||||||||||||||||||||||||||||||||
Total benefits, losses and expenses | $ | 302,011 | $ | 241,590 | $ | 793,101 | $ | 688,253 | Total benefits, losses and expenses | $ | 293,567 | $ | 308,768 | $ | 576,371 | $ | 559,630 | |||||||||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | (32,394 | ) | $ | 14,035 | $ | (13,719 | ) | $ | 43,572 | ||||||||||||||||||||||||||||||||||||||||
Federal income tax expense (benefit) (includes reclassifications of $327 and ($610) in 2017 and ($332) and ($194) in 2016; previously included in accumulated other comprehensive income) | (13,312 | ) | 2,407 | (13,330 | ) | 6,489 | ||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | (19,082 | ) | $ | 11,628 | $ | (389 | ) | $ | 37,083 | ||||||||||||||||||||||||||||||||||||||||
Income from discontinued operations, net of taxes | 1,218 | 740 | 5,419 | 826 | ||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (17,864 | ) | $ | 12,368 | $ | 5,030 | $ | 37,909 | |||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | Income (loss) before income taxes | $ | 4,236 | $ | (4,571) | $ | (100,763) | $ | 50,106 | |||||||||||||||||||||||||||||||||||||||||
Federal income tax expense (benefit) (includes reclassifications of $207 and $458 in 2020 and $229 and $445 in 2019; previously included in accumulated other comprehensive income) | Federal income tax expense (benefit) (includes reclassifications of $207 and $458 in 2020 and $229 and $445 in 2019; previously included in accumulated other comprehensive income) | (1,724) | (375) | (34,189) | 9,781 | |||||||||||||||||||||||||||||||||||||||||||||
Net Income (loss) | Net Income (loss) | $ | 5,960 | $ | (4,196) | $ | (66,574) | $ | 40,325 | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | Other comprehensive income (loss) | |||||||||||||||||||||||||||||||||||||||||||||||||
Change in net unrealized appreciation on investments | $ | 18,995 | $ | (9,440 | ) | $ | 64,614 | $ | 83,768 | Change in net unrealized appreciation on investments | $ | 33,037 | $ | 28,596 | $ | 40,205 | $ | 61,950 | ||||||||||||||||||||||||||||||||
Change in net unrealized appreciation on investments for which an allowance for a credit loss has been recorded | Change in net unrealized appreciation on investments for which an allowance for a credit loss has been recorded | 1,858 | — | 265 | — | |||||||||||||||||||||||||||||||||||||||||||||
Change in liability for underfunded employee benefit plans | — | — | — | — | Change in liability for underfunded employee benefit plans | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income , before tax and reclassification adjustments | $ | 18,995 | $ | (9,440 | ) | $ | 64,614 | $ | 83,768 | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, before tax and reclassification adjustments | Other comprehensive income, before tax and reclassification adjustments | $ | 34,895 | $ | 28,596 | $ | 40,470 | $ | 61,950 | |||||||||||||||||||||||||||||||||||||||||
Income tax effect | (6,648 | ) | 3,304 | (22,615 | ) | (29,320 | ) | Income tax effect | (7,329) | (6,004) | (8,499) | (13,009) | ||||||||||||||||||||||||||||||||||||||
Other comprehensive income, after tax, before reclassification adjustments | $ | 12,347 | $ | (6,136 | ) | $ | 41,999 | $ | 54,448 | Other comprehensive income, after tax, before reclassification adjustments | $ | 27,566 | $ | 22,592 | $ | 31,971 | $ | 48,941 | ||||||||||||||||||||||||||||||||
Reclassification adjustment for net realized investment gains included in income | $ | (419 | ) | $ | (2,320 | ) | $ | (5,799 | ) | $ | (4,666 | ) | ||||||||||||||||||||||||||||||||||||||
Reclassification adjustment for net realized investment (gains) losses included in income | Reclassification adjustment for net realized investment (gains) losses included in income | $ | (80) | $ | (37) | $ | 41 | $ | (127) | |||||||||||||||||||||||||||||||||||||||||
Reclassification adjustment for employee benefit costs included in expense | 1,352 | 1,371 | 4,056 | 4,113 | Reclassification adjustment for employee benefit costs included in expense | 1,072 | 1,124 | 2,144 | 2,248 | |||||||||||||||||||||||||||||||||||||||||
Total reclassification adjustments, before tax | $ | 933 | $ | (949 | ) | $ | (1,743 | ) | $ | (553 | ) | Total reclassification adjustments, before tax | $ | 992 | $ | 1,087 | $ | 2,185 | $ | 2,121 | ||||||||||||||||||||||||||||||
Income tax effect | (327 | ) | 332 | 610 | 194 | Income tax effect | (207) | (229) | (458) | (445) | ||||||||||||||||||||||||||||||||||||||||
Total reclassification adjustments, after tax | $ | 606 | $ | (617 | ) | $ | (1,133 | ) | $ | (359 | ) | Total reclassification adjustments, after tax | $ | 785 | $ | 858 | $ | 1,727 | $ | 1,676 | ||||||||||||||||||||||||||||||
Comprehensive income (loss) | $ | (4,911 | ) | $ | 5,615 | $ | 45,896 | $ | 91,998 | Comprehensive income (loss) | $ | 34,311 | $ | 19,254 | $ | (32,876) | $ | 90,942 | ||||||||||||||||||||||||||||||||
Diluted weighted average common shares outstanding | 24,960,086 | 25,815,346 | 25,666,405 | 25,711,014 | Diluted weighted average common shares outstanding | 25,255,604 | 25,210,354 | 25,019,441 | 25,659,803 | |||||||||||||||||||||||||||||||||||||||||
Earnings per common share from continuing operations: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings (loss) per common share: | Earnings (loss) per common share: | |||||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | (0.77 | ) | $ | 0.46 | $ | (0.01 | ) | $ | 1.47 | Basic | $ | 0.24 | $ | (0.17) | $ | (2.66) | $ | 1.60 | |||||||||||||||||||||||||||||||
Diluted | (0.77 | ) | 0.45 | (0.01 | ) | 1.44 | Diluted | 0.24 | (0.17) | (2.66) | 1.57 | |||||||||||||||||||||||||||||||||||||||
Earnings per common share: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | (0.72 | ) | $ | 0.49 | $ | 0.20 | $ | 1.50 | |||||||||||||||||||||||||||||||||||||||||
Diluted | (0.72 | ) | 0.48 | 0.20 | 1.47 |
Common Stock | ||||||||||||||||||||||||||
(In Thousands, Except Share Data) | Shares outstanding | Common stock | Additional paid-in capital | Retaining Earnings | Accumulated other comprehensive income | Total | ||||||||||||||||||||
Balance, January 1, 2020 | 25,015,963 | $ | 25 | $ | 200,179 | $ | 697,116 | $ | 13,152 | $ | 910,472 | |||||||||||||||
Net income (loss) | — | — | — | (72,534) | — | (72,534) | ||||||||||||||||||||
Shares repurchased | (70,467) | — | (2,741) | — | — | (2,741) | ||||||||||||||||||||
Stock based compensation | 70,597 | — | 879 | — | — | 879 | ||||||||||||||||||||
Dividends on common stock ($0.33 per share) | — | — | — | (8,249) | — | (8,249) | ||||||||||||||||||||
Change in net unrealized investment appreciation(1) | — | — | — | — | 4,500 | 4,500 | ||||||||||||||||||||
Change in liability for underfunded employee benefit plans(2) | — | — | — | — | 847 | 847 | ||||||||||||||||||||
Cumulative effect of change in accounting principle | — | — | — | (30) | — | (30) | ||||||||||||||||||||
Balance, March 31, 2020 | 25,016,093 | $ | 25 | $ | 198,317 | $ | 616,303 | $ | 18,499 | $ | 833,144 | |||||||||||||||
Net income | — | $ | — | $ | — | $ | 5,960 | $ | — | $ | 5,960 | |||||||||||||||
Stock based compensation | 15,141 | — | 1,479 | — | — | 1,479 | ||||||||||||||||||||
Dividends on common stock ($0.33 per share) | — | — | — | (8,267) | — | (8,267) | ||||||||||||||||||||
Change in net unrealized investment appreciation(1) | — | — | — | — | 27,504 | 27,504 | ||||||||||||||||||||
Change in liability for underfunded employee benefit plans(2) | — | — | — | — | 847 | 847 | ||||||||||||||||||||
Balance, June 30, 2020 | 25,031,234 | $ | 25 | $ | 199,796 | $ | 613,996 | $ | 46,850 | $ | 860,667 | |||||||||||||||
(In Thousands, Except Share Data) | Nine Months Ended September 30, 2017 | ||
Common stock | |||
Balance, beginning of year | $ | 25 | |
Shares repurchased (701,899 shares) | — | ||
Shares issued for stock-based awards (131,777 shares) | — | ||
Balance, end of period | $ | 25 | |
Additional paid-in capital | |||
Balance, beginning of year | $ | 216,482 | |
Compensation expense and related tax benefit for stock-based award grants | 3,456 | ||
Shares repurchased | (29,784 | ) | |
Shares issued for stock-based awards | 2,960 | ||
Balance, end of period | $ | 193,114 | |
Retained earnings | |||
Balance, beginning of year | $ | 616,322 | |
Net income | 5,030 | ||
Dividends on common stock ($0.81 per share) | (20,364 | ) | |
Balance, end of period | $ | 600,988 | |
Accumulated other comprehensive income, net of tax | |||
Balance, beginning of year | $ | 109,055 | |
Change in net unrealized investment appreciation(1) | 38,230 | ||
Change in liability for underfunded employee benefit plans(2) | 2,636 | ||
Balance, end of period | $ | 149,921 | |
Summary of changes | |||
Balance, beginning of year | $ | 941,884 | |
Net income | 5,030 | ||
All other changes in stockholders’ equity accounts | (2,866 | ) | |
Balance, end of period | $ | 944,048 |
Common Stock | ||||||||||||||||||||||||||
(In Thousands, Except Share Data) | Shares outstanding | Common stock | Additional paid-in capital | Retaining Earnings | Accumulated other comprehensive income | Total | ||||||||||||||||||||
Balance, January 1, 2019 | 25,097,408 | $ | 25 | $ | 203,350 | $ | 715,472 | $ | (30,472) | 888,375 | ||||||||||||||||
Net income | — | — | — | 44,521 | — | 44,521 | ||||||||||||||||||||
Stock based compensation | 70,414 | — | 3,438 | — | — | 3,438 | ||||||||||||||||||||
Dividends on common stock $0.31 per share) | — | — | — | (7,797) | — | (7,797) | ||||||||||||||||||||
Change in net unrealized investment appreciation(1) | — | — | — | — | 26,279 | 26,279 | ||||||||||||||||||||
Change in liability for underfunded employee benefit plans(2) | — | — | — | — | 888 | 888 | ||||||||||||||||||||
Cumulative effect of change in accounting principle | — | — | — | (513) | — | (513) | ||||||||||||||||||||
Balance, March 31, 2019 | 25,167,822 | $ | 25 | $ | 206,788 | $ | 751,683 | $ | (3,305) | $ | 955,191 | |||||||||||||||
Net income (loss) | $ | — | $ | — | $ | — | $ | (4,196) | $ | — | $ | (4,196) | ||||||||||||||
Shares repurchased | (1,507) | — | (69) | — | — | (69) | ||||||||||||||||||||
Stock based compensation | 78,885 | — | 2,252 | — | — | 2,252 | ||||||||||||||||||||
Dividends on common stock $0.33 per share) | — | — | — | (8,325) | — | (8,325) | ||||||||||||||||||||
Change in net unrealized investment appreciation(1) | — | — | — | — | 22,562 | 22,562 | ||||||||||||||||||||
Change in liability for underfunded employee benefit plans(2) | — | — | — | — | 888 | 888 | ||||||||||||||||||||
Balance, June 30, 2019 | 25,245,200 | $ | 25 | $ | 208,971 | $ | 739,162 | $ | 20,145 | $ | 968,303 | |||||||||||||||
Nine Months Ended September 30, | Six Months Ended June 30, | |||||||||||||||||||||||
(In Thousands) | 2017 | 2016 | (In Thousands) | 2020 | 2019 | |||||||||||||||||||
Cash Flows From Operating Activities | Cash Flows From Operating Activities | |||||||||||||||||||||||
Net income | $ | 5,030 | $ | 37,909 | ||||||||||||||||||||
Less net income from discontinued operations, net of taxes | 5,419 | 826 | ||||||||||||||||||||||
Net income (loss) | Net income (loss) | $ | (66,574) | $ | 40,325 | |||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||||||||||||||
Net accretion of bond premium | 6,663 | 5,181 | Net accretion of bond premium | 5,501 | 5,039 | |||||||||||||||||||
Depreciation and amortization | 3,501 | 4,879 | Depreciation and amortization | 3,318 | 2,618 | |||||||||||||||||||
Stock-based compensation expense | 3,456 | 2,731 | Stock-based compensation expense | 2,927 | 4,045 | |||||||||||||||||||
Net realized investment gains | (3,397 | ) | (4,832 | ) | ||||||||||||||||||||
Net cash flows from trading investments | 816 | (36 | ) | |||||||||||||||||||||
Net realized investment (gains) losses | Net realized investment (gains) losses | 77,628 | (40,304) | |||||||||||||||||||||
Net cash flows from equity and trading investments | Net cash flows from equity and trading investments | 17,148 | 639 | |||||||||||||||||||||
Deferred income tax benefit | (4,979 | ) | (3,847 | ) | Deferred income tax benefit | (19,229) | 7,716 | |||||||||||||||||
Changes in: | Changes in: | |||||||||||||||||||||||
Accrued investment income | (1,294 | ) | (831 | ) | Accrued investment income | 697 | 574 | |||||||||||||||||
Premiums receivable | (45,208 | ) | (54,725 | ) | Premiums receivable | (19,176) | (56,062) | |||||||||||||||||
Deferred policy acquisition costs | (4,115 | ) | (10,268 | ) | Deferred policy acquisition costs | (3,274) | (8,767) | |||||||||||||||||
Reinsurance receivables | (5,409 | ) | (12,224 | ) | Reinsurance receivables | (55,512) | 8,558 | |||||||||||||||||
Prepaid reinsurance premiums | (39 | ) | (212 | ) | Prepaid reinsurance premiums | (4,956) | (1,049) | |||||||||||||||||
Income taxes receivable | (7,075 | ) | (11,370 | ) | Income taxes receivable | (19,184) | 5,913 | |||||||||||||||||
Other assets | (1,358 | ) | 659 | Other assets | (9,162) | (18,706) | ||||||||||||||||||
Future policy benefits and losses, claims and loss settlement expenses | 113,384 | 86,272 | ||||||||||||||||||||||
Losses and loss settlement expenses | Losses and loss settlement expenses | 55,935 | 29,183 | |||||||||||||||||||||
Unearned premiums | 46,641 | 53,699 | Unearned premiums | 25,639 | 47,062 | |||||||||||||||||||
Accrued expenses and other liabilities | (12,430 | ) | (6,198 | ) | Accrued expenses and other liabilities | (2,098) | 10,562 | |||||||||||||||||
Income taxes payable | — | (4,917 | ) | |||||||||||||||||||||
Deferred income taxes | 1,794 | 2,665 | Deferred income taxes | 4,184 | — | |||||||||||||||||||
Other, net | 1,920 | (1,605 | ) | Other, net | 10,420 | (1,070) | ||||||||||||||||||
Cash from operating activities - continuing operations | 92,871 | 45,021 | ||||||||||||||||||||||
Cash from operating activities - discontinued operations | 23,814 | 45,965 | ||||||||||||||||||||||
Total adjustments | $ | 116,685 | $ | 90,986 | ||||||||||||||||||||
Cash from operating activities | Cash from operating activities | 70,806 | (4,049) | |||||||||||||||||||||
Net cash provided by operating activities | $ | 116,296 | $ | 128,069 | Net cash provided by operating activities | $ | 4,232 | $ | 36,276 | |||||||||||||||
Cash Flows From Investing Activities | Cash Flows From Investing Activities | |||||||||||||||||||||||
Proceeds from sale of available-for-sale investments | $ | 3,388 | $ | 1,968 | Proceeds from sale of available-for-sale investments | $ | 16,907 | $ | 36,490 | |||||||||||||||
Proceeds from call and maturity of available-for-sale investments | 134,503 | 260,520 | Proceeds from call and maturity of available-for-sale investments | 159,709 | 111,824 | |||||||||||||||||||
Proceeds from short-term and other investments | 4,846 | 1,725 | ||||||||||||||||||||||
Purchase of available-for-sale investments | (162,121 | ) | (313,060 | ) | ||||||||||||||||||||
Purchase of short-term and other investments | (4,864 | ) | (2,772 | ) | ||||||||||||||||||||
Net purchases and sales of property and equipment | (11,630 | ) | (6,090 | ) | ||||||||||||||||||||
Cash from investing activities - continuing operations | (35,878 | ) | (57,709 | ) | ||||||||||||||||||||
Cash from investing activities - discontinued operations | 31,517 | 37,685 | ||||||||||||||||||||||
Net cash used in investing activities | $ | (4,361 | ) | $ | (20,024 | ) | ||||||||||||||||||
Proceeds from sale of other investments | Proceeds from sale of other investments | 2,750 | 2,315 | |||||||||||||||||||||
Purchase of investments Mortgage Loans | Purchase of investments Mortgage Loans | (5,323) | (10,723) | |||||||||||||||||||||
Purchase of investments available-for-sale | Purchase of investments available-for-sale | (117,299) | (44,400) | |||||||||||||||||||||
Purchase of other investments | Purchase of other investments | (3,577) | (11,986) | |||||||||||||||||||||
Purchase of property and equipment | Purchase of property and equipment | $ | (12,040) | (20,920) | ||||||||||||||||||||
Net cash provided by investing activities | Net cash provided by investing activities | 41,127 | 62,600 | |||||||||||||||||||||
Cash Flows From Financing Activities | Cash Flows From Financing Activities | |||||||||||||||||||||||
Issuance of common stock | Issuance of common stock | $ | (562) | $ | 1,645 | |||||||||||||||||||
Repurchase of common stock | Repurchase of common stock | (2,741) | (69) | |||||||||||||||||||||
Payment of cash dividends | $ | (20,364 | ) | $ | (18,246 | ) | Payment of cash dividends | (16,516) | (16,122) | |||||||||||||||
Repurchase of common stock | (29,784 | ) | (2,867 | ) | ||||||||||||||||||||
Issuance of common stock | 2,960 | 7,149 | ||||||||||||||||||||||
Tax impact from issuance of common stock | — | (482 | ) | |||||||||||||||||||||
Cash from financing activities - continuing operations | (47,188 | ) | (14,446 | ) | ||||||||||||||||||||
Cash from financing activities - discontinued operations | (46,239 | ) | (59,104 | ) | ||||||||||||||||||||
Net cash used in financing activities | $ | (93,427 | ) | $ | (73,550 | ) | Net cash used in financing activities | $ | (19,819) | (14,546) | ||||||||||||||
Net Change in Cash and Cash Equivalents | $ | 18,508 | $ | 34,495 | Net Change in Cash and Cash Equivalents | $ | 25,540 | $ | 84,330 | |||||||||||||||
Less: decrease (increase) in cash and cash equivalents - discontinued operations | (9,092 | ) | (24,546 | ) | ||||||||||||||||||||
Net increase in cash and cash equivalents - continuing operations | 9,416 | 9,949 | ||||||||||||||||||||||
Cash and Cash Equivalents at Beginning of Period - Continuing Operations | 89,194 | 89,496 | ||||||||||||||||||||||
Cash and Cash Equivalents at End of Period - Continuing Operations | $ | 98,610 | $ | 99,445 | ||||||||||||||||||||
Cash and Cash Equivalents at Beginning of Period | Cash and Cash Equivalents at Beginning of Period | 120,722 | 64,454 | |||||||||||||||||||||
Cash and Cash Equivalents at End of Period | Cash and Cash Equivalents at End of Period | $ | 146,262 | $ | 148,784 |
Continuing Operations | Discontinued Operations | ||||||||||
Property & Casualty Insurance | Life Insurance | Total | |||||||||
Recorded asset at beginning of period | $ | 93,362 | $ | 70,750 | $ | 164,112 | |||||
Underwriting costs deferred | 158,960 | 4,192 | 163,152 | ||||||||
Amortization of deferred policy acquisition costs | (154,845 | ) | (5,524 | ) | (160,369 | ) | |||||
Ending unamortized deferred policy acquisition costs | $ | 97,477 | $ | 69,418 | $ | 166,895 | |||||
Impact of unrealized gains and losses on available-for-sale securities | — | (3,582 | ) | (3,582 | ) | ||||||
Recorded asset at September 30, 2017 | $ | 97,477 | $ | 65,836 | $ | 163,313 |
Total | |||||
Recorded asset at beginning of period | $ | 94,292 | |||
Underwriting costs deferred | 109,619 | ||||
Amortization of deferred policy acquisition costs | (106,345) | ||||
Recorded asset at June 30, 2020 | $ | 97,566 |
Rollforward of credit loss allowance for reinsurance receivable: | ||||||||||||||
As of | ||||||||||||||
June 30, 2020 | ||||||||||||||
Beginning balance, January 1, 2020 | $ | 38 | ||||||||||||
Current-period provision for expected credit losses | 3 | |||||||||||||
Write-off charged against the allowance, if any | — | |||||||||||||
Recoveries of amounts previously written off, if any | — | |||||||||||||
Ending balance of the allowance for reinsurance receivable, June 30, 2020 | $ | 41 | ||||||||||||
June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Type of Investment | Cost or Amortized Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Fair Value | Allowance for Credit Losses | Carrying Value | |||||||||||||||||||||||||||||||||||||||||||||||
AVAILABLE-FOR-SALE | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Bonds | |||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury | $ | 50,353 | $ | 869 | $ | — | $ | 51,222 | $ | — | $ | 51,222 | |||||||||||||||||||||||||||||||||||||||||
U.S. government agency | 63,503 | 4,005 | — | 67,508 | — | 67,508 | |||||||||||||||||||||||||||||||||||||||||||||||
States, municipalities and political subdivisions | |||||||||||||||||||||||||||||||||||||||||||||||||||||
General obligations: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Midwest | 81,486 | 4,068 | — | 85,554 | — | 85,554 | |||||||||||||||||||||||||||||||||||||||||||||||
Northeast | 30,012 | 1,487 | — | 31,499 | — | 31,499 | |||||||||||||||||||||||||||||||||||||||||||||||
South | 105,479 | 5,126 | — | 110,605 | — | 110,605 | |||||||||||||||||||||||||||||||||||||||||||||||
West | 105,196 | 6,647 | — | 111,843 | — | 111,843 | |||||||||||||||||||||||||||||||||||||||||||||||
Special revenue: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Midwest | 127,824 | 8,508 | — | 136,332 | — | 136,332 | |||||||||||||||||||||||||||||||||||||||||||||||
Northeast | 58,414 | 4,218 | — | 62,632 | — | 62,632 | |||||||||||||||||||||||||||||||||||||||||||||||
South | 221,309 | 15,894 | — | 237,203 | — | 237,203 | |||||||||||||||||||||||||||||||||||||||||||||||
West | 134,462 | 8,532 | — | 142,994 | — | 142,994 | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign bonds | 26,428 | 1,739 | 106 | 28,061 | — | 28,061 | |||||||||||||||||||||||||||||||||||||||||||||||
Public utilities | 77,529 | 6,713 | — | 84,242 | — | 84,242 | |||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Energy | 25,928 | 2,353 | 11 | 28,270 | — | 28,270 | |||||||||||||||||||||||||||||||||||||||||||||||
Industrials | 39,625 | 3,115 | — | 42,740 | — | 42,740 | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer goods and services | 47,134 | 3,726 | 52 | 50,808 | — | 50,808 | |||||||||||||||||||||||||||||||||||||||||||||||
Health care | 7,327 | 869 | — | 8,196 | — | 8,196 | |||||||||||||||||||||||||||||||||||||||||||||||
Technology, media and telecommunications | 35,253 | 4,010 | — | 39,263 | — | 39,263 | |||||||||||||||||||||||||||||||||||||||||||||||
Financial services | 96,415 | 6,680 | 317 | 102,778 | 10 | 102,768 | |||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | 15,737 | 335 | 2 | 16,070 | — | 16,070 | |||||||||||||||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Government national mortgage association | 74,741 | 5,707 | 1 | 80,447 | — | 80,447 | |||||||||||||||||||||||||||||||||||||||||||||||
Federal home loan mortgage corporation | 95,076 | 2,862 | 160 | 97,778 | — | 97,778 | |||||||||||||||||||||||||||||||||||||||||||||||
Federal national mortgage association | 76,272 | 3,015 | 83 | 79,204 | — | 79,204 | |||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | 314 | 613 | — | 927 | — | 927 | |||||||||||||||||||||||||||||||||||||||||||||||
Total Available-for-Sale Fixed Maturities | $ | 1,595,817 | $ | 101,091 | $ | 732 | $ | 1,696,176 | $ | 10 | $ | 1,696,166 | |||||||||||||||||||||||||||||||||||||||||
September 30, 2017 | |||||||||||||||
Type of Investment | Cost or Amortized Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Fair Value | |||||||||||
HELD-TO-MATURITY | |||||||||||||||
Fixed maturities: | |||||||||||||||
Bonds | |||||||||||||||
Corporate bonds - financial services | $ | 150 | $ | — | $ | — | $ | 150 | |||||||
Mortgage-backed securities | 38 | 1 | — | 39 | |||||||||||
Total Held-to-Maturity Fixed Maturities | $ | 188 | $ | 1 | $ | — | $ | 189 | |||||||
AVAILABLE-FOR-SALE | |||||||||||||||
Fixed maturities: | |||||||||||||||
Bonds | |||||||||||||||
U.S. Treasury | $ | 22,032 | $ | 40 | $ | 91 | $ | 21,981 | |||||||
U.S. government agency | 98,523 | 1,518 | 516 | 99,525 | |||||||||||
States, municipalities and political subdivisions | |||||||||||||||
General obligations: | |||||||||||||||
Midwest | 120,549 | 2,388 | 499 | 122,438 | |||||||||||
Northeast | 50,174 | 1,478 | 73 | 51,579 | |||||||||||
South | 142,172 | 2,463 | 1,210 | 143,425 | |||||||||||
West | 113,135 | 2,474 | 963 | 114,646 | |||||||||||
Special revenue: | |||||||||||||||
Midwest | 151,634 | 3,646 | 494 | 154,786 | |||||||||||
Northeast | 79,159 | 1,061 | 795 | 79,425 | |||||||||||
South | 261,141 | 4,421 | 2,974 | 262,588 | |||||||||||
West | 157,622 | 2,676 | 1,940 | 158,358 | |||||||||||
Foreign bonds | 54,300 | 1,907 | — | 56,207 | |||||||||||
Public utilities | 201,418 | 4,538 | 200 | 205,756 | |||||||||||
Corporate bonds | |||||||||||||||
Energy | 96,373 | 2,367 | 95 | 98,645 | |||||||||||
Industrials | 209,076 | 5,323 | 109 | 214,290 | |||||||||||
Consumer goods and services | 181,471 | 5,049 | 135 | 186,385 | |||||||||||
Health care | 75,775 | 2,600 | — | 78,375 | |||||||||||
Technology, media and telecommunications | 143,024 | 3,308 | 193 | 146,139 | |||||||||||
Financial services | 252,373 | 6,939 | 303 | 259,009 |
December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||
Type of Investment | Cost or Amortized Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Fair Value | |||||||||||||||||||||||||||||||||||||
AVAILABLE-FOR-SALE | |||||||||||||||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||||||||||||||
Bonds | |||||||||||||||||||||||||||||||||||||||||
U.S. Treasury | $ | 69,300 | $ | 203 | $ | 12 | $ | 69,491 | |||||||||||||||||||||||||||||||||
U.S. government agency | 97,962 | 2,344 | 104 | 100,202 | |||||||||||||||||||||||||||||||||||||
States, municipalities and political subdivisions | |||||||||||||||||||||||||||||||||||||||||
General obligations: | |||||||||||||||||||||||||||||||||||||||||
Midwest | 85,607 | 2,987 | — | 88,594 | |||||||||||||||||||||||||||||||||||||
Northeast | 30,120 | 1,150 | — | 31,270 | |||||||||||||||||||||||||||||||||||||
South | 111,688 | 3,515 | — | 115,203 | |||||||||||||||||||||||||||||||||||||
West | 105,569 | 4,748 | — | 110,317 | |||||||||||||||||||||||||||||||||||||
Special revenue: | |||||||||||||||||||||||||||||||||||||||||
Midwest | 133,717 | 6,175 | — | 139,892 | |||||||||||||||||||||||||||||||||||||
Northeast | 58,665 | 2,878 | — | 61,543 | |||||||||||||||||||||||||||||||||||||
South | 224,214 | 10,452 | — | 234,666 | |||||||||||||||||||||||||||||||||||||
West | 138,557 | 6,287 | — | 144,844 | |||||||||||||||||||||||||||||||||||||
Foreign bonds | 4,936 | 181 | — | 5,117 | |||||||||||||||||||||||||||||||||||||
Public utilities | 60,950 | 2,701 | — | 63,651 | |||||||||||||||||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||||||||||||||||||||
Energy | 28,695 | 1,429 | — | 30,124 | |||||||||||||||||||||||||||||||||||||
Industrials | 52,249 | 1,766 | — | 54,015 | |||||||||||||||||||||||||||||||||||||
Consumer goods and services | 47,131 | 2,335 | — | 49,466 | |||||||||||||||||||||||||||||||||||||
Health care | 8,998 | 482 | — | 9,480 | |||||||||||||||||||||||||||||||||||||
Technology, media and telecommunications | 25,931 | 1,739 | — | 27,670 | |||||||||||||||||||||||||||||||||||||
Financial services | 96,613 | 3,870 | 230 | 100,253 | |||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | 6,250 | 127 | 21 | 6,356 | |||||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | |||||||||||||||||||||||||||||||||||||||||
Government national mortgage association | 78,400 | 2,053 | 97 | 80,356 | |||||||||||||||||||||||||||||||||||||
Federal home loan mortgage corporation | 123,572 | 1,150 | 220 | 124,502 | |||||||||||||||||||||||||||||||||||||
Federal national mortgage association | 70,322 | 1,631 | 108 | 71,845 | |||||||||||||||||||||||||||||||||||||
Asset-backed securities | 314 | 436 | — | 750 | |||||||||||||||||||||||||||||||||||||
Total Available-for-Sale Fixed Maturities | $ | 1,659,760 | $ | 60,639 | $ | 792 | $ | 1,719,607 |
Mortgage-backed securities | 14,496 | 169 | 179 | 14,486 | |||||||||||
Collateralized mortgage obligations | |||||||||||||||
Government national mortgage association | 153,896 | 2,292 | 1,458 | 154,730 | |||||||||||
Federal home loan mortgage corporation | 191,246 | 2,410 | 3,132 | 190,524 | |||||||||||
Federal national mortgage association | 106,326 | 2,240 | 832 | 107,734 | |||||||||||
Asset-backed securities | 4,280 | 345 | 3 | 4,622 | |||||||||||
Total Available-for-Sale Fixed Maturities | $ | 2,880,195 | $ | 61,652 | $ | 16,194 | $ | 2,925,653 | |||||||
Equity securities: | |||||||||||||||
Common stocks | |||||||||||||||
Public utilities | $ | 6,394 | $ | 15,750 | $ | 58 | $ | 22,086 | |||||||
Energy | 6,514 | 7,998 | 106 | 14,406 | |||||||||||
Industrials | 13,117 | 49,890 | 164 | 62,843 | |||||||||||
Consumer goods and services | 10,070 | 14,872 | 154 | 24,788 | |||||||||||
Health care | 7,763 | 29,463 | — | 37,226 | |||||||||||
Technology, media and telecommunications | 6,006 | 10,215 | 136 | 16,085 | |||||||||||
Financial services | 11,630 | 101,813 | 73 | 113,370 | |||||||||||
Nonredeemable preferred stocks | 992 | 161 | — | 1,153 | |||||||||||
Total Available-for-Sale Equity Securities | $ | 62,486 | $ | 230,162 | $ | 691 | $ | 291,957 | |||||||
Total Available-for-Sale Securities | $ | 2,942,681 | $ | 291,814 | $ | 16,885 | $ | 3,217,610 |
December 31, 2016 | |||||||||||||||
Type of Investment | Cost or Amortized Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Fair Value | |||||||||||
HELD-TO-MATURITY | |||||||||||||||
Fixed maturities: | |||||||||||||||
Bonds | |||||||||||||||
Corporate bonds - financial services | $ | 150 | $ | — | $ | — | $ | 150 | |||||||
Mortgage-backed securities | 48 | 1 | — | 49 | |||||||||||
Total Held-to-Maturity Fixed Maturities | $ | 198 | $ | 1 | $ | — | $ | 199 | |||||||
AVAILABLE-FOR-SALE | |||||||||||||||
Fixed maturities: | |||||||||||||||
Bonds | |||||||||||||||
U.S. Treasury | $ | 23,216 | $ | 87 | $ | 108 | $ | 23,195 | |||||||
U.S. government agency | 76,692 | 1,445 | 540 | 77,597 | |||||||||||
States, municipalities and political subdivisions | |||||||||||||||
General obligations: | |||||||||||||||
Midwest | 143,747 | 1,808 | 1,412 | 144,143 | |||||||||||
Northeast | 57,731 | 909 | 231 | 58,409 | |||||||||||
South | 129,475 | 1,249 | 2,355 | 128,369 | |||||||||||
West | 114,524 | 1,380 | 2,173 | 113,731 | |||||||||||
Special revenue: | |||||||||||||||
Midwest | 167,430 | 2,313 | 1,433 | 168,310 | |||||||||||
Northeast | 70,202 | 487 | 2,624 | 68,065 | |||||||||||
South | 244,225 | 1,753 | 6,791 | 239,187 | |||||||||||
West | 134,287 | 1,509 | 4,052 | 131,744 | |||||||||||
Foreign bonds | 62,995 | 2,239 | — | 65,234 | |||||||||||
Public utilities | 212,360 | 3,761 | 447 | 215,674 | |||||||||||
Corporate bonds | |||||||||||||||
Energy | 107,084 | 2,195 | 419 | 108,860 | |||||||||||
Industrials | 225,526 | 5,359 | 982 | 229,903 | |||||||||||
Consumer goods and services | 178,135 | 3,847 | 295 | 181,687 | |||||||||||
Health care | 81,211 | 2,063 | 151 | 83,123 | |||||||||||
Technology, media and telecommunications | 143,402 | 2,029 | 819 | 144,612 | |||||||||||
Financial services | 269,981 | 5,328 | 1,358 | 273,951 | |||||||||||
Mortgage-backed securities | 17,288 | 201 | 241 | 17,248 | |||||||||||
Collateralized mortgage obligations | |||||||||||||||
Government national mortgage association | 145,947 | 1,279 | 2,766 | 144,460 | |||||||||||
Federal home loan mortgage corporation | 176,226 | 1,638 | 3,406 | 174,458 | |||||||||||
Federal national mortgage association | 101,414 | 1,816 | 1,334 | 101,896 | |||||||||||
Asset-backed securities | 4,407 | 145 | 282 | 4,270 | |||||||||||
Total Available-for-Sale Fixed Maturities | $ | 2,887,505 | $ | 44,840 | $ | 34,219 | $ | 2,898,126 |
Equity securities: | |||||||||||||||
Common stocks | |||||||||||||||
Public utilities | $ | 6,394 | $ | 13,465 | $ | 188 | $ | 19,671 | |||||||
Energy | 6,514 | 8,555 | 22 | 15,047 | |||||||||||
Industrials | 13,252 | 38,715 | 173 | 51,794 | |||||||||||
Consumer goods and services | 10,324 | 13,851 | 58 | 24,117 | |||||||||||
Health care | 7,763 | 19,657 | — | 27,420 | |||||||||||
Technology, media and telecommunications | 5,931 | 9,476 | 38 | 15,369 | |||||||||||
Financial services | 17,289 | 98,728 | 67 | 115,950 | |||||||||||
Nonredeemable preferred stocks | 1,037 | 11 | — | 1,048 | |||||||||||
Total Available-for-Sale Equity Securities | $ | 68,504 | $ | 202,458 | $ | 546 | $ | 270,416 | |||||||
Total Available-for-Sale Securities | $ | 2,956,009 | $ | 247,298 | $ | 34,765 | $ | 3,168,542 |
September 30, 2017 | |||||||||||||||
Type of Investment | Cost or Amortized Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Fair Value | |||||||||||
HELD-TO-MATURITY | |||||||||||||||
Fixed maturities: | |||||||||||||||
Continuing operations | $ | 150 | $ | — | $ | — | $ | 150 | |||||||
Discontinued operations | 38 | 1 | — | 39 | |||||||||||
Total Held-to-Maturity Fixed Maturities | $ | 188 | $ | 1 | $ | — | 189 | ||||||||
AVAILABLE-FOR-SALE | |||||||||||||||
Fixed maturities: | |||||||||||||||
Continuing operations | $ | 1,480,730 | $ | 28,606 | $ | 10,674 | $ | 1,498,662 | |||||||
Discontinued operations | 1,399,465 | 33,046 | 5,520 | 1,426,991 | |||||||||||
Total Available-for-Sale Fixed Maturities | $ | 2,880,195 | $ | 61,652 | $ | 16,194 | $ | 2,925,653 | |||||||
Equity securities: | |||||||||||||||
Continuing operations | $ | 57,387 | $ | 212,545 | $ | 591 | $ | 269,341 | |||||||
Discontinued operations | 5,099 | 17,617 | 100 | 22,616 | |||||||||||
Total Available-for-Sale Equity Securities | $ | 62,486 | $ | 230,162 | $ | 691 | $ | 291,957 | |||||||
Total Available-for-Sale Securities | $ | 2,942,681 | $ | 291,814 | $ | 16,885 | $ | 3,217,610 |
December 31, 2016 | |||||||||||||||
Type of Investment | Cost or Amortized Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Fair Value | |||||||||||
HELD-TO-MATURITY | |||||||||||||||
Fixed maturities: | |||||||||||||||
Continuing operations | $ | 150 | $ | — | $ | — | $ | 150 | |||||||
Discontinued operations | 48 | 1 | — | 49 | |||||||||||
Total Held-to-Maturity Fixed Maturities | $ | 198 | $ | 1 | $ | — | $ | 199 | |||||||
AVAILABLE-FOR-SALE | |||||||||||||||
Fixed maturities: | |||||||||||||||
Continuing operations | $ | 1,458,235 | $ | 18,725 | $ | 23,674 | $ | 1,453,286 | |||||||
Discontinued operations | 1,429,270 | 26,115 | 10,545 | 1,444,840 | |||||||||||
Total Available-for-Sale Fixed Maturities | 2,887,505 | 44,840 | 34,219 | 2,898,126 | |||||||||||
Equity securities: | |||||||||||||||
Continuing operations | $ | 59,994 | $ | 186,692 | $ | 316 | $ | 246,370 | |||||||
Discontinued operations | 8,510 | 15,766 | 230 | 24,046 | |||||||||||
Total Available-for-Sale Equity Securities | 68,504 | 202,458 | 546 | 270,416 | |||||||||||
Total Available-for-Sale Securities | $ | 2,956,009 | $ | 247,298 | $ | 34,765 | $ | 3,168,542 |
Maturities - Consolidated: | |||||||||||||||||||||||
Held-To-Maturity | Available-For-Sale | Trading | |||||||||||||||||||||
September 30, 2017 | Amortized Cost | Fair Value | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||
Due in one year or less | $ | 150 | $ | 150 | $ | 128,884 | $ | 129,945 | $ | 1,401 | $ | 1,821 | |||||||||||
Due after one year through five years | — | — | 782,192 | 803,774 | 6,979 | 8,233 | |||||||||||||||||
Due after five years through 10 years | — | — | 751,756 | 771,205 | 1,302 | 1,185 | |||||||||||||||||
Due after 10 years | — | — | 747,119 | 748,633 | 2,151 | 2,434 | |||||||||||||||||
Asset-backed securities | — | — | 4,280 | 4,622 | — | — | |||||||||||||||||
Mortgage-backed securities | 38 | 39 | 14,496 | 14,486 | — | — | |||||||||||||||||
Collateralized mortgage obligations | — | — | 451,468 | 452,988 | — | — | |||||||||||||||||
$ | 188 | $ | 189 | $ | 2,880,195 | $ | 2,925,653 | $ | 11,833 | $ | 13,673 |
Maturities | |||||||||||||||||||||||||||||||||||||||||||||||
Available-For-Sale | Trading | ||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2020 | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 54,841 | $ | 55,305 | $ | 1,122 | $ | 3,085 | |||||||||||||||||||||||||||||||||||||||
Due after one year through five years | 324,957 | 343,117 | 6,703 | 6,565 | |||||||||||||||||||||||||||||||||||||||||||
Due after five years through 10 years | 434,946 | 468,553 | — | — | |||||||||||||||||||||||||||||||||||||||||||
Due after 10 years | 518,933 | 554,775 | 1,091 | 1,573 | |||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | 314 | 927 | — | — | |||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | 15,737 | 16,070 | — | — | |||||||||||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | 246,089 | 257,429 | — | — | |||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses | — | (10) | — | — | |||||||||||||||||||||||||||||||||||||||||||
$ | 1,595,817 | $ | 1,696,166 | $ | 8,916 | $ | 11,223 |
Maturities - Continuing Operations: | |||||||||||||||||||||||
Held-To-Maturity | Available-For-Sale | Trading | |||||||||||||||||||||
September 30, 2017 | Amortized Cost | Fair Value | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||
Due in one year or less | $ | 150 | $ | 150 | $ | 54,340 | $ | 54,762 | $ | 1,401 | $ | 1,821 | |||||||||||
Due after one year through five years | — | — | 224,804 | 230,986 | 6,979 | 8,233 | |||||||||||||||||
Due after five years through 10 years | — | — | 344,553 | 354,308 | 1,302 | 1,185 | |||||||||||||||||
Due after 10 years | — | — | 675,795 | 676,310 | 2,151 | 2,434 | |||||||||||||||||
Asset-backed securities | — | — | 3,174 | 3,517 | — | — | |||||||||||||||||
Mortgage-backed securities | — | — | 9,664 | 9,783 | — | — | |||||||||||||||||
Collateralized mortgage obligations | — | — | 168,400 | 168,996 | — | — | |||||||||||||||||
$ | 150 | $ | 150 | $ | 1,480,730 | $ | 1,498,662 | $ | 11,833 | $ | 13,673 |
Maturities - Discontinued Operations: | |||||||||||||||||||||||
Held-To-Maturity | Available-For-Sale | Trading | |||||||||||||||||||||
September 30, 2017 | Amortized Cost | Fair Value | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||
Due in one year or less | $ | — | $ | — | $ | 74,544 | $ | 75,183 | $ | — | $ | — | |||||||||||
Due after one year through five years | — | — | 557,388 | 572,788 | — | — | |||||||||||||||||
Due after five years through 10 years | — | — | 407,203 | 416,897 | — | — | |||||||||||||||||
Due after 10 years | — | — | 71,324 | 72,323 | — | — | |||||||||||||||||
Asset-backed securities | — | — | 1,107 | 1,105 | — | — | |||||||||||||||||
Mortgage-backed securities | 38 | 39 | 4,832 | 4,703 | — | — | |||||||||||||||||
Collateralized mortgage obligations | — | — | 283,067 | 283,992 | — | — | |||||||||||||||||
$ | 38 | $ | 39 | $ | 1,399,465 | $ | 1,426,991 | $ | — | $ | — |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Net realized investment gains (losses): | |||||||||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||||||||
Available-for-sale | $ | 30 | $ | (8) | $ | — | $ | 142 | |||||||||||||||||||||||||||
Allowance for credit losses | 49 | — | (10) | — | |||||||||||||||||||||||||||||||
Trading securities | |||||||||||||||||||||||||||||||||||
Change in fair value | 1,601 | 501 | (1,008) | 2,247 | |||||||||||||||||||||||||||||||
Sales | (305) | 92 | (154) | 92 | |||||||||||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||||||||||||
Change in fair value | 29,809 | 12,499 | (60,838) | 37,133 | |||||||||||||||||||||||||||||||
Sales | (15,406) | 507 | (15,586) | 705 | |||||||||||||||||||||||||||||||
Mortgage loans allowance for credit losses | 1 | — | (4) | (15) | |||||||||||||||||||||||||||||||
Real estate | — | — | (28) | — | |||||||||||||||||||||||||||||||
Total net realized investment gains (losses) | $ | 15,779 | $ | 13,591 | $ | (77,628) | $ | 40,304 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net realized investment gains (losses) from continuing operations: | |||||||||||||||
Fixed maturities: | |||||||||||||||
Available-for-sale | $ | 118 | $ | 484 | $ | 645 | $ | 898 | |||||||
Trading securities | |||||||||||||||
Change in fair value | (43 | ) | 148 | 504 | 519 | ||||||||||
Sales | 72 | 107 | 117 | 568 | |||||||||||
Equity securities: | |||||||||||||||
Available-for-sale | 3 | 1,375 | 1,553 | 2,359 | |||||||||||
Trading securities | |||||||||||||||
Change in fair value | (124 | ) | (5 | ) | 232 | 325 | |||||||||
Sales | 41 | 20 | 57 | (6 | ) | ||||||||||
Cash equivalents | — | — | — | 169 | |||||||||||
Real estate | — | — | 289 | — | |||||||||||
Total net realized investment gains from continuing operations | $ | 67 | $ | 2,129 | $ | 3,397 | $ | 4,832 | |||||||
Total net realized investment gains from discontinued operations | 296 | 461 | 3,600 | 1,409 | |||||||||||
Total net realized investment gains | $ | 363 | $ | 2,590 | $ | 6,997 | $ | 6,241 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Proceeds from sales | $ | 4,996 | $ | — | $ | 16,907 | $ | 36,490 | |||||||||||||||||||||||||||
Gross realized gains | 26 | — | 198 | 30 | |||||||||||||||||||||||||||||||
Gross realized losses | 113 | — | 495 | 13 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Proceeds from sales | $ | 2,293 | $ | — | $ | 3,388 | $ | 1,968 | |||||||
Gross realized gains | — | — | 1,046 | 921 | |||||||||||
Gross realized losses | — | — | — | — |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Proceeds from sales | $ | 1,844 | $ | 2,007 | $ | 5,807 | $ | 3,081 | |||||||
Gross realized gains | — | 11 | 1,254 | 65 | |||||||||||
Gross realized losses | — | — | (78 | ) | — |
Six Months Ended June 30, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
Change in net unrealized investment appreciation | |||||||||||||||||
Available-for-sale fixed maturities | $ | 40,511 | $ | 61,824 | |||||||||||||
Income tax effect | (8,507) | (12,983) | |||||||||||||||
Total change in net unrealized investment appreciation, net of tax | $ | 32,004 | $ | 48,841 |
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
Change in net unrealized investment appreciation | |||||||
Available-for-sale fixed maturities | $ | 34,837 | $ | 83,498 | |||
Available-for-sale equity securities | 27,559 | 15,459 | |||||
Deferred policy acquisition costs | (3,582 | ) | (19,857 | ) | |||
Income tax effect | (20,584 | ) | (27,685 | ) | |||
Total change in net unrealized investment appreciation, net of tax | $ | 38,230 | $ | 51,415 |
Rollforward of allowance for credit losses for available-for-sale fixed maturity securities: | ||||||||||||||
As of | ||||||||||||||
June 30, 2020 | ||||||||||||||
Beginning balance, January 1, 2020 | $ | — | ||||||||||||
Additions to the allowance for credit losses for which credit losses were not previously recorded | 10 | |||||||||||||
Reductions for securities sold during the period (realized) | — | |||||||||||||
Writeoffs charged against the allowance | — | |||||||||||||
Recoveries of amounts previously written off | — | |||||||||||||
Ending balance, June 30, 2020 | $ | 10 |
June 30, 2020 | Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Type of Investment | Number of Issues | Fair Value | Gross Unrealized Depreciation | Number of Issues | Fair Value | Gross Unrealized Depreciation | Fair Value | Gross Unrealized Depreciation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AVAILABLE-FOR-SALE | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bonds | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign bonds | 1 | $ | 2,900 | $ | 106 | — | $ | — | $ | — | $ | 2,900 | $ | 106 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Energy | 1 | 451 | 11 | — | — | — | 451 | 11 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer goods and services | 1 | 3,090 | 52 | — | — | — | 3,090 | 52 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial services | 1 | 2,985 | 60 | — | — | — | 2,985 | 60 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | — | — | — | 7 | 188 | 2 | 188 | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal home loan mortgage corporation | 12 | 24,455 | 160 | 1 | 89 | 1 | 24,544 | 160 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal national mortgage association | 4 | 17,986 | 83 | — | — | — | 17,986 | 83 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Government national mortgage association | — | — | — | 1 | 145 | 1 | 145 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Available-for-Sale Fixed Maturities | 20 | $ | 51,867 | $ | 471 | 9 | $ | 422 | $ | 4 | $ | 52,289 | $ | 475 |
December 31, 2019 | Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Type of Investment | Number of Issues | Fair Value | Gross Unrealized Depreciation | Number of Issues | Fair Value | Gross Unrealized Depreciation | Fair Value | Gross Unrealized Depreciation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AVAILABLE-FOR-SALE | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bonds | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury | — | $ | — | $ | — | 2 | $ | 4,733 | $ | 12 | $ | 4,733 | $ | 12 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government agency | 3 | 13,846 | 104 | — | — | — | 13,846 | 104 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial services | 3 | 10,906 | 142 | 1 | 4,913 | 88 | 15,819 | 230 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | — | — | — | 13 | 1,585 | 21 | 1,585 | 21 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal home loan mortgage corporation | 12 | 50,829 | 183 | 3 | 4,844 | 37 | 55,673 | 220 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal national mortgage association | 4 | 23,515 | 90 | 3 | 1,102 | 18 | 24,617 | 108 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Government national mortgage association | 2 | 8,444 | 38 | 5 | 3,053 | 59 | 11,497 | 97 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Available-for-Sale Fixed Maturities | 24 | $ | 107,540 | $ | 557 | 27 | $ | 20,230 | $ | 235 | $ | 127,770 | $ | 792 |
September 30, 2017 | Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||||||
Type of Investment | Number of Issues | Fair Value | Gross Unrealized Depreciation | Number of Issues | Fair Value | Gross Unrealized Depreciation | Fair Value | Gross Unrealized Depreciation | |||||||||||||||||||||
AVAILABLE-FOR-SALE | |||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||
Bonds | |||||||||||||||||||||||||||||
U.S. Treasury | 3 | $ | 8,920 | $ | 44 | 3 | $ | 2,829 | $ | 47 | $ | 11,749 | $ | 91 | |||||||||||||||
U.S. government agency | 8 | 33,607 | 306 | 3 | 12,789 | 210 | 46,396 | 516 | |||||||||||||||||||||
States, municipalities and political subdivisions | |||||||||||||||||||||||||||||
General obligations | |||||||||||||||||||||||||||||
Midwest | 3 | 4,343 | 46 | 3 | 19,742 | 453 | 24,085 | 499 | |||||||||||||||||||||
Northeast | — | — | — | 1 | 3,587 | 73 | 3,587 | 73 | |||||||||||||||||||||
South | 7 | 14,594 | 56 | 11 | 27,919 | 1,154 | 42,513 | 1,210 | |||||||||||||||||||||
West | 2 | 3,600 | 29 | 8 | 25,333 | 934 | 28,933 | 963 | |||||||||||||||||||||
Special revenue | |||||||||||||||||||||||||||||
Midwest | 2 | 3,990 | 10 | 7 | 19,034 | 484 | 23,024 | 494 | |||||||||||||||||||||
Northeast | 6 | 27,751 | 312 | 9 | 15,275 | 483 | 43,026 | 795 | |||||||||||||||||||||
South | 13 | 32,415 | 433 | 27 | 66,978 | 2,541 | 99,393 | 2,974 | |||||||||||||||||||||
West | 8 | 20,369 | 135 | 22 | 55,836 | 1,805 | 76,205 | 1,940 | |||||||||||||||||||||
Public utilities | 2 | 3,201 | 52 | 4 | 7,491 | 148 | 10,692 | 200 | |||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||||||||
Energy | 2 | 6,166 | 13 | 1 | 1,807 | 82 | 7,973 | 95 | |||||||||||||||||||||
Industrials | — | — | — | 2 | 4,271 | 109 | 4,271 | 109 | |||||||||||||||||||||
Consumer goods and services | 5 | 7,469 | 62 | 2 | 5,097 | 73 | 12,566 | 135 | |||||||||||||||||||||
Technology, media and telecommunications | 6 | 15,263 | 88 | 2 | 8,384 | 105 | 23,647 | 193 | |||||||||||||||||||||
Financial services | 11 | 21,623 | 163 | 1 | 7,243 | 140 | 28,866 | 303 | |||||||||||||||||||||
Mortgage-backed securities | 11 | 4,411 | 43 | 3 | 4,790 | 136 | 9,201 | 179 | |||||||||||||||||||||
Collateralized mortgage obligations | |||||||||||||||||||||||||||||
Government national mortgage association | 16 | 40,243 | 439 | 13 | 38,573 | 1,019 | 78,816 | 1,458 | |||||||||||||||||||||
Federal home loan mortgage corporation | 16 | 64,647 | 1,166 | 12 | 42,472 | 1,966 | 107,119 | 3,132 | |||||||||||||||||||||
Federal national mortgage association | 13 | 35,709 | 496 | 6 | 10,008 | 336 | 45,717 | 832 | |||||||||||||||||||||
Asset-backed securities | 1 | 997 | 3 | — | — | — | 997 | 3 | |||||||||||||||||||||
Total Available-for-Sale Fixed Maturities | 135 | $ | 349,318 | $ | 3,896 | 140 | $ | 379,458 | $ | 12,298 | $ | 728,776 | $ | 16,194 | |||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||
Common stocks | |||||||||||||||||||||||||||||
Public utilities | — | $ | — | $ | — | 1 | $ | 250 | $ | 58 | $ | 250 | $ | 58 | |||||||||||||||
Energy | 2 | 546 | 102 | 1 | 182 | 4 | 728 | 106 | |||||||||||||||||||||
Industrials | 1 | 106 | 6 | 5 | 141 | 158 | 247 | 164 | |||||||||||||||||||||
Consumer goods and services | — | — | — | 4 | 178 | 154 | 178 | 154 | |||||||||||||||||||||
Technology, media and telecommunications | 2 | 445 | 115 | 1 | 4 | 21 | 449 | 136 | |||||||||||||||||||||
Financial services | 1 | 30 | 25 | 2 | 165 | 48 | 195 | 73 | |||||||||||||||||||||
Total Available-for-Sale Equity Securities | 6 | $ | 1,127 | $ | 248 | 14 | $ | 920 | $ | 443 | $ | 2,047 | $ | 691 | |||||||||||||||
Total Available-for-Sale Securities | 141 | $ | 350,445 | $ | 4,144 | 154 | $ | 380,378 | $ | 12,741 | $ | 730,823 | $ | 16,885 |
December 31, 2016 | Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||||||
Type of Investment | Number of Issues | Fair Value | Gross Unrealized Depreciation | Number of Issues | Fair Value | Gross Unrealized Depreciation | Fair Value | Gross Unrealized Depreciation | |||||||||||||||||||||
AVAILABLE-FOR-SALE | |||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||
Bonds | |||||||||||||||||||||||||||||
U.S. Treasury | 9 | $ | 10,800 | $ | 108 | — | $ | — | $ | — | $ | 10,800 | $ | 108 | |||||||||||||||
U.S. government agency | 10 | 36,593 | 540 | — | — | — | 36,593 | 540 | |||||||||||||||||||||
States, municipalities and political subdivisions | |||||||||||||||||||||||||||||
General obligations | |||||||||||||||||||||||||||||
Midwest | 27 | 40,545 | 1,412 | — | — | — | 40,545 | 1,412 | |||||||||||||||||||||
Northeast | 9 | 9,874 | 231 | — | — | — | 9,874 | 231 | |||||||||||||||||||||
South | 37 | 53,699 | 2,355 | — | — | — | 53,699 | 2,355 | |||||||||||||||||||||
West | 30 | 55,265 | 2,173 | — | — | — | 55,265 | 2,173 | |||||||||||||||||||||
Special revenue | |||||||||||||||||||||||||||||
Midwest | 41 | 62,937 | 1,433 | — | — | — | 62,937 | 1,433 | |||||||||||||||||||||
Northeast | 22 | 54,993 | 2,624 | — | — | — | 54,993 | 2,624 | |||||||||||||||||||||
South | 79 | 152,979 | 6,791 | — | — | — | 152,979 | 6,791 | |||||||||||||||||||||
West | 44 | 81,676 | 4,052 | — | — | — | 81,676 | 4,052 | |||||||||||||||||||||
Public utilities | 20 | 38,511 | 423 | 2 | 2,122 | 24 | 40,633 | 447 | |||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||||||||
Energy | 8 | 15,938 | 313 | 3 | 8,232 | 106 | 24,170 | 419 | |||||||||||||||||||||
Industrials | 24 | 42,854 | 596 | 3 | 5,641 | 386 | 48,495 | 982 | |||||||||||||||||||||
Consumer goods and services | 11 | 21,059 | 295 | — | — | — | 21,059 | 295 | |||||||||||||||||||||
Health care | 9 | 20,918 | 151 | — | — | — | 20,918 | 151 | |||||||||||||||||||||
Technology, media and telecommunications | 16 | 41,230 | 516 | 3 | 10,241 | 303 | 51,471 | 819 | |||||||||||||||||||||
Financial services | 37 | 75,286 | 1,358 | — | — | — | 75,286 | 1,358 | |||||||||||||||||||||
Mortgage-backed securities | 16 | 9,611 | 187 | 5 | 1,198 | 54 | 10,809 | 241 | |||||||||||||||||||||
Collateralized mortgage obligations | |||||||||||||||||||||||||||||
Government national mortgage association | 36 | 82,430 | 2,261 | 9 | 13,603 | 505 | 96,033 | 2,766 | |||||||||||||||||||||
Federal home loan mortgage corporation | 41 | 105,775 | 3,165 | 3 | 5,141 | 241 | 110,916 | 3,406 | |||||||||||||||||||||
Federal national mortgage association | 27 | 46,633 | 1,091 | 4 | 4,341 | 243 | 50,974 | 1,334 | |||||||||||||||||||||
Asset-backed securities | 1 | 971 | 29 | 1 | 2,559 | 253 | 3,530 | 282 | |||||||||||||||||||||
Total Available-for-Sale Fixed Maturities | 554 | $ | 1,060,577 | $ | 32,104 | 33 | $ | 53,078 | $ | 2,115 | $ | 1,113,655 | $ | 34,219 | |||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||
Common stocks | |||||||||||||||||||||||||||||
Public utilities | — | $ | — | $ | — | 3 | $ | 120 | $ | 188 | $ | 120 | $ | 188 | |||||||||||||||
Energy | — | — | — | 1 | 163 | 22 | 163 | 22 | |||||||||||||||||||||
Industrials | — | — | — | 6 | 239 | 173 | 239 | 173 | |||||||||||||||||||||
Consumer goods and services | 3 | 282 | 55 | 2 | 15 | 3 | 297 | 58 | |||||||||||||||||||||
Technology, media and telecommunications | 7 | 26 | 5 | 8 | 33 | 33 | 59 | 38 | |||||||||||||||||||||
Financial services | 3 | 53 | 3 | 2 | 150 | 64 | 203 | 67 | |||||||||||||||||||||
Total Available-for-Sale Equity Securities | 13 | $ | 361 | $ | 63 | 22 | $ | 720 | $ | 483 | $ | 1,081 | $ | 546 | |||||||||||||||
Total Available-for-Sale Securities | 567 | $ | 1,060,938 | $ | 32,167 | 55 | $ | 53,798 | $ | 2,598 | $ | 1,114,736 | $ | 34,765 |
September 30, 2017 | Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||||||
Type of Investment | Number of Issues | Fair Value | Gross Unrealized Depreciation | Number of Issues | Fair Value | Gross Unrealized Depreciation | Fair Value | Gross Unrealized Depreciation | |||||||||||||||||||||
AVAILABLE-FOR-SALE | |||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||
Continuing operations | 85 | $ | 206,874 | $ | 2,059 | 101 | $ | 259,297 | $ | 8,615 | $ | 466,171 | $ | 10,674 | |||||||||||||||
Discontinued operations | 50 | 142,444 | 1,837 | 39 | 120,161 | 3,683 | 262,605 | 5,520 | |||||||||||||||||||||
Total Available-for-Sale Fixed Maturities | 135 | $ | 349,318 | $ | 3,896 | 140 | $ | 379,458 | $ | 12,298 | $ | 728,776 | $ | 16,194 | |||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||
Continuing operations | 6 | $ | 1,127 | $ | 248 | 10 | $ | 540 | $ | 343 | $ | 1,667 | $ | 591 | |||||||||||||||
Discontinued operations | — | — | — | 4 | 380 | 100 | 380 | 100 | |||||||||||||||||||||
Total Available-for-Sale Equity Securities | 6 | $ | 1,127 | $ | 248 | 14 | $ | 920 | $ | 443 | $ | 2,047 | $ | 691 | |||||||||||||||
Total Available-for-Sale Securities | 141 | $ | 350,445 | $ | 4,144 | 154 | $ | 380,378 | $ | 12,741 | $ | 730,823 | $ | 16,885 |
December 31, 2016 | Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||||||
Type of Investment | Number of Issues | Fair Value | Gross Unrealized Depreciation | Number of Issues | Fair Value | Gross Unrealized Depreciation | Fair Value | Gross Unrealized Depreciation | |||||||||||||||||||||
AVAILABLE-FOR-SALE | |||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||
Continuing operations | 404 | $ | 654,235 | $ | 23,359 | 12 | $ | 6,288 | $ | 315 | $ | 660,523 | $ | 23,674 | |||||||||||||||
Discontinued operations | 150 | 406,342 | 8,745 | 21 | 46,790 | 1,800 | 453,132 | 10,545 | |||||||||||||||||||||
Total Available-for-Sale Fixed Maturities | 554 | $ | 1,060,577 | $ | 32,104 | 33 | $ | 53,078 | $ | 2,115 | $ | 1,113,655 | $ | 34,219 | |||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||
Continuing operations | 12 | $ | 351 | $ | 62 | 17 | $ | 477 | $ | 254 | $ | 828 | $ | 316 | |||||||||||||||
Discontinued operations | 1 | 10 | 1 | 5 | 243 | 229 | 253 | 230 | |||||||||||||||||||||
Total Available-for-Sale Equity Securities | 13 | $ | 361 | $ | 63 | 22 | $ | 720 | $ | 483 | $ | 1,081 | $ | 546 | |||||||||||||||
Total Available-for-Sale Securities | 567 | $ | 1,060,938 | $ | 32,167 | 55 | $ | 53,798 | $ | 2,598 | $ | 1,114,736 | $ | 34,765 |
June 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||
Fair Value | Carrying Value | Fair Value | Carrying Value | ||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||
Investments | |||||||||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||||||||
Available-for-sale securities | $ | 1,696,176 | $ | 1,696,166 | $ | 1,719,607 | $ | 1,719,607 | |||||||||||||||||||||||||||
Trading securities | 11,223 | 11,223 | 15,256 | 15,256 | |||||||||||||||||||||||||||||||
Equity securities | 207,626 | 207,626 | 299,203 | 299,203 | |||||||||||||||||||||||||||||||
Mortgage loans | 48,499 | 47,609 | 43,992 | 42,448 | |||||||||||||||||||||||||||||||
Other long-term investments | 68,941 | 68,941 | 78,410 | 78,410 | |||||||||||||||||||||||||||||||
Short-term investments | 175 | 175 | 175 | 175 | |||||||||||||||||||||||||||||||
Cash and cash equivalents | 146,262 | 146,262 | 120,722 | 120,722 | |||||||||||||||||||||||||||||||
Corporate-owned life insurance | 7,107 | 7,107 | 6,777 | 6,777 |
September 30, 2017 | December 31, 2016 | ||||||||||||||
Fair Value | Carrying Value | Fair Value | Carrying Value | ||||||||||||
Assets | |||||||||||||||
Investments | |||||||||||||||
Fixed maturities: | |||||||||||||||
Held-to-maturity securities | $ | 150 | $ | 150 | $ | 150 | $ | 150 | |||||||
Available-for-sale securities | 1,498,662 | 1,498,662 | 1,453,286 | 1,453,286 | |||||||||||
Trading securities | 13,673 | 13,673 | 14,390 | 14,390 | |||||||||||
Equity securities: | |||||||||||||||
Available-for-sale securities | 269,341 | 269,341 | 246,370 | 246,370 | |||||||||||
Trading securities | 6,330 | 6,330 | 5,644 | 5,644 | |||||||||||
Other long-term investments | 49,966 | 49,966 | 51,769 | 51,769 | |||||||||||
Short-term investments | 175 | 175 | 175 | 175 | |||||||||||
Cash and cash equivalents | 98,610 | 98,610 | 89,194 | 89,194 | |||||||||||
Corporate-owned life insurance | 3,759 | 3,759 | 2,592 | 2,592 |
September 30, 2017 | December 31, 2016 | ||||||||||||||
Fair Value | Carrying Value | Fair Value | Carrying Value | ||||||||||||
Assets | |||||||||||||||
Investments | |||||||||||||||
Fixed maturities: | |||||||||||||||
Held-to-maturity securities | $ | 39 | $ | 38 | $ | 49 | $ | 48 | |||||||
Available-for-sale securities | 1,426,991 | 1,426,991 | 1,444,840 | 1,444,840 | |||||||||||
Equity securities: | |||||||||||||||
Available-for-sale securities | 22,616 | 22,616 | 24,046 | 24,046 | |||||||||||
Mortgage loans | 3,690 | 3,504 | 3,895 | 3,706 | |||||||||||
Policy loans | 5,770 | 5,770 | 5,366 | 5,366 | |||||||||||
Other long-term investments | 16,299 | 16,299 | 15,780 | 15,870 | |||||||||||
Cash and cash equivalents | 30,751 | 30,751 | 21,659 | 21,659 | |||||||||||
Liabilities | |||||||||||||||
Policy reserves | |||||||||||||||
Annuity (accumulations) (1) | $ | 617,819 | $ | 620,037 | $ | 646,764 | $ | 666,711 | |||||||
Annuity (benefit payments) | 144,901 | 95,086 | 144,283 | 95,129 |
June 30, 2020 | Fair Value Measurements | ||||||||||||||||||||||||||||||||||
Description | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||
AVAILABLE-FOR-SALE | |||||||||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||||||||
Bonds | |||||||||||||||||||||||||||||||||||
U.S. Treasury | $ | 51,222 | $ | — | $ | 51,222 | $ | — | |||||||||||||||||||||||||||
U.S. government agency | 67,508 | — | 67,508 | — | |||||||||||||||||||||||||||||||
States, municipalities and political subdivisions | |||||||||||||||||||||||||||||||||||
General obligations | |||||||||||||||||||||||||||||||||||
Midwest | 85,554 | — | 85,554 | — | |||||||||||||||||||||||||||||||
Northeast | 31,499 | — | 31,499 | — | |||||||||||||||||||||||||||||||
South | 110,605 | — | 110,605 | — | |||||||||||||||||||||||||||||||
West | 111,843 | — | 111,843 | — | |||||||||||||||||||||||||||||||
Special revenue | |||||||||||||||||||||||||||||||||||
Midwest | 136,332 | — | 136,332 | — | |||||||||||||||||||||||||||||||
Northeast | 62,632 | — | 62,632 | — | |||||||||||||||||||||||||||||||
South | 237,203 | — | 237,203 | — | |||||||||||||||||||||||||||||||
West | 142,994 | — | 142,994 | — | |||||||||||||||||||||||||||||||
Foreign bonds | 28,061 | — | 28,061 | — | |||||||||||||||||||||||||||||||
Public utilities | 84,242 | — | 84,242 | — | |||||||||||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||||||||||||||
Energy | 28,270 | — | 28,270 | — | |||||||||||||||||||||||||||||||
Industrials | 42,740 | — | 42,740 | — | |||||||||||||||||||||||||||||||
Consumer goods and services | 50,808 | — | 50,808 | — | |||||||||||||||||||||||||||||||
Health care | 8,196 | — | 8,196 | — | |||||||||||||||||||||||||||||||
Technology, media and telecommunications | 39,263 | — | 39,263 | — | |||||||||||||||||||||||||||||||
Financial services | 102,778 | — | 102,528 | 250 | |||||||||||||||||||||||||||||||
Mortgage-backed securities | 16,070 | — | 16,070 | — | |||||||||||||||||||||||||||||||
Collateralized mortgage obligations | |||||||||||||||||||||||||||||||||||
Government national mortgage association | 80,447 | — | 80,447 | — | |||||||||||||||||||||||||||||||
Federal home loan mortgage corporation | 97,778 | — | 97,778 | — | |||||||||||||||||||||||||||||||
Federal national mortgage association | 79,204 | — | 79,204 | — | |||||||||||||||||||||||||||||||
Asset-backed securities | 927 | — | — | 927 | |||||||||||||||||||||||||||||||
Total Available-for-Sale Fixed Maturities | $ | 1,696,176 | $ | — | $ | 1,694,999 | $ | 1,177 | |||||||||||||||||||||||||||
TRADING | |||||||||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||||||||
Bonds | |||||||||||||||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||||||||||||||
Industrials | $ | 982 | $ | — | $ | 982 | $ | — | |||||||||||||||||||||||||||
Consumer goods and services | 1,169 | — | 1,169 | — | |||||||||||||||||||||||||||||||
Health care | 4,717 | — | 4,717 | — | |||||||||||||||||||||||||||||||
Financial services | 1,588 | — | 1,588 | — | |||||||||||||||||||||||||||||||
September 30, 2017 | Fair Value Measurements | ||||||||||||||
Description | Total | Level 1 | Level 2 | Level 3 | |||||||||||
AVAILABLE-FOR-SALE | |||||||||||||||
Fixed maturities: | |||||||||||||||
Bonds | |||||||||||||||
U.S. Treasury | $ | 21,981 | $ | — | $ | 21,981 | $ | — | |||||||
U.S. government agency | 99,525 | — | 99,525 | — | |||||||||||
States, municipalities and political subdivisions | |||||||||||||||
General obligations | |||||||||||||||
Midwest | 122,438 | — | 122,438 | — | |||||||||||
Northeast | 51,579 | — | 51,579 | — | |||||||||||
South | 143,425 | — | 143,425 | — | |||||||||||
West | 114,646 | — | 114,646 | — | |||||||||||
Special revenue | |||||||||||||||
Midwest | 154,786 | — | 154,709 | 77 | |||||||||||
Northeast | 79,425 | — | 79,425 | — | |||||||||||
South | 262,588 | — | 262,588 | — | |||||||||||
West | 158,358 | — | 158,358 | — | |||||||||||
Foreign bonds | 56,207 | — | 56,207 | — | |||||||||||
Public utilities | 205,756 | — | 205,756 | — | |||||||||||
Corporate bonds | |||||||||||||||
Energy | 98,645 | — | 98,645 | — | |||||||||||
Industrials | 214,290 | — | 214,290 | — | |||||||||||
Consumer goods and services | 186,385 | — | 185,686 | 699 | |||||||||||
Health care | 78,375 | — | 78,375 | — | |||||||||||
Technology, media and telecommunications | 146,139 | — | 146,139 | — | |||||||||||
Financial services | 259,009 | — | 250,992 | 8,017 | |||||||||||
Mortgage-backed securities | 14,486 | — | 14,486 | — | |||||||||||
Collateralized mortgage obligations | |||||||||||||||
Government national mortgage association | 154,730 | — | 154,730 | — | |||||||||||
Federal home loan mortgage corporation | 190,524 | — | 190,524 | — | |||||||||||
Federal national mortgage association | 107,734 | — | 107,734 | — | |||||||||||
Asset-backed securities | 4,622 | — | 3,991 | 631 | |||||||||||
Total Available-for-Sale Fixed Maturities | $ | 2,925,653 | $ | — | $ | 2,916,229 | $ | 9,424 | |||||||
Equity securities: | |||||||||||||||
Common stocks | |||||||||||||||
Public utilities | $ | 22,086 | $ | 22,086 | $ | — | $ | — | |||||||
Energy | 14,406 | 14,406 | — | — | |||||||||||
Industrials | 62,843 | 62,843 | — | — | |||||||||||
Consumer goods and services | 24,788 | 24,788 | — | — | |||||||||||
Health care | 37,226 | 37,226 | — | — |
Redeemable preferred stocks | 2,767 | 2,767 | — | — | |||||||||||||||||||
Total Trading Securities | $ | 11,223 | $ | 2,767 | $ | 8,456 | $ | — | |||||||||||||||
EQUITY SECURITIES | |||||||||||||||||||||||
Common stocks | |||||||||||||||||||||||
Public utilities | $ | 14,873 | $ | 14,873 | $ | — | $ | — | |||||||||||||||
Energy | 9,913 | 9,913 | — | — | |||||||||||||||||||
Industrials | 30,737 | 30,737 | — | — | |||||||||||||||||||
Consumer goods and services | 27,977 | 27,977 | — | — | |||||||||||||||||||
Health care | 27,216 | 27,216 | — | — | |||||||||||||||||||
Technology, media and telecommunications | 16,470 | 16,470 | — | — | |||||||||||||||||||
Financial services | 74,353 | 74,353 | — | — | |||||||||||||||||||
Nonredeemable preferred stocks | 6,087 | 5,492 | — | 595 | |||||||||||||||||||
Total Equity Securities | $ | 207,626 | $ | 207,031 | $ | — | $ | 595 | |||||||||||||||
Short-Term Investments | $ | 175 | $ | 175 | $ | — | $ | — | |||||||||||||||
Money Market Accounts | $ | 71,785 | $ | 71,785 | $ | — | $ | — | |||||||||||||||
Corporate-Owned Life Insurance | $ | 7,107 | $ | — | $ | 7,107 | $ | — | |||||||||||||||
Total Assets Measured at Fair Value | $ | 1,994,092 | $ | 281,758 | $ | 1,710,562 | $ | 1,772 |
December 31, 2019 | Fair Value Measurements | ||||||||||||||||||||||||||||||||||
Description | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||
AVAILABLE-FOR-SALE | |||||||||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||||||||
Bonds | |||||||||||||||||||||||||||||||||||
U.S. Treasury | $ | 69,491 | $ | — | $ | 69,491 | $ | — | |||||||||||||||||||||||||||
U.S. government agency | 100,202 | — | 100,202 | — | |||||||||||||||||||||||||||||||
States, municipalities and political subdivisions | |||||||||||||||||||||||||||||||||||
General obligations | |||||||||||||||||||||||||||||||||||
Midwest | 88,594 | — | 88,594 | — | |||||||||||||||||||||||||||||||
Northeast | 31,270 | — | 31,270 | — | |||||||||||||||||||||||||||||||
South | 115,203 | — | 115,203 | — | |||||||||||||||||||||||||||||||
West | 110,317 | — | 110,317 | — | |||||||||||||||||||||||||||||||
Special revenue | |||||||||||||||||||||||||||||||||||
Midwest | 139,892 | — | 139,892 | — | |||||||||||||||||||||||||||||||
Northeast | 61,543 | — | 61,543 | — | |||||||||||||||||||||||||||||||
South | 234,666 | — | 234,666 | — | |||||||||||||||||||||||||||||||
West | 144,844 | — | 144,844 | — | |||||||||||||||||||||||||||||||
Foreign bonds | 5,117 | — | 5,117 | — | |||||||||||||||||||||||||||||||
Public utilities | 63,651 | — | 63,651 | — | |||||||||||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||||||||||||||
Energy | 30,124 | — | 30,124 | — | |||||||||||||||||||||||||||||||
Industrials | 54,015 | — | 54,015 | — | |||||||||||||||||||||||||||||||
Consumer goods and services | 49,466 | — | 49,466 | — | |||||||||||||||||||||||||||||||
Health care | 9,480 | — | 9,480 | — |
Technology, media and telecommunications | 16,085 | 16,085 | — | — | |||||||||||
Financial services | 113,370 | 113,370 | — | — | |||||||||||
Nonredeemable preferred stocks | 1,153 | 419 | — | 734 | |||||||||||
Total Available-for-Sale Equity Securities | $ | 291,957 | $ | 291,223 | $ | — | $ | 734 | |||||||
Total Available-for-Sale Securities | $ | 3,217,610 | $ | 291,223 | $ | 2,916,229 | $ | 10,158 | |||||||
TRADING | |||||||||||||||
Fixed maturities: | |||||||||||||||
Corporate bonds | |||||||||||||||
Industrials | $ | 2,117 | $ | — | $ | 2,117 | $ | — | |||||||
Consumer goods and services | 289 | — | 289 | — | |||||||||||
Health care | 3,557 | — | 3,557 | — | |||||||||||
Technology, media and telecommunications | 1,373 | — | 1,373 | — | |||||||||||
Financial services | 4,780 | — | 4,780 | — | |||||||||||
Redeemable preferred stocks | 1,557 | 1,557 | — | — | |||||||||||
Equity securities: | |||||||||||||||
Public utilities | 831 | 831 | — | — | |||||||||||
Energy | 206 | 206 | — | — | |||||||||||
Industrials | 900 | 900 | — | — | |||||||||||
Consumer goods and services | 1,209 | 1,209 | — | — | |||||||||||
Health care | 369 | 369 | — | — | |||||||||||
Financial services | 218 | 218 | — | — | |||||||||||
Nonredeemable preferred stocks | 2,597 | 2,597 | — | — | |||||||||||
Total Trading Securities | $ | 20,003 | $ | 7,887 | $ | 12,116 | $ | — | |||||||
Short-Term Investments | $ | 175 | $ | 175 | $ | — | $ | — | |||||||
Money Market Accounts | $ | 13,897 | $ | 13,897 | $ | — | $ | — | |||||||
Corporate-Owned Life Insurance | $ | 3,759 | $ | — | $ | 3,759 | $ | — | |||||||
Total Assets Measured at Fair Value | $ | 3,255,444 | $ | 313,182 | $ | 2,932,104 | $ | 10,158 |
December 31, 2016 | Fair Value Measurements | ||||||||||||||
Description | Total | Level 1 | Level 2 | Level 3 | |||||||||||
AVAILABLE-FOR-SALE | |||||||||||||||
Fixed maturities: | |||||||||||||||
Bonds | |||||||||||||||
U.S. Treasury | $ | 23,195 | $ | — | $ | 23,195 | $ | — | |||||||
U.S. government agency | 77,597 | — | 77,597 | — | |||||||||||
States, municipalities and political subdivisions | |||||||||||||||
General obligations | |||||||||||||||
Midwest | 144,143 | — | 144,143 | — | |||||||||||
Northeast | 58,409 | — | 58,409 | — | |||||||||||
South | 128,369 | — | 128,369 | — | |||||||||||
West | 113,731 | — | 113,731 | — | |||||||||||
Special revenue | |||||||||||||||
Midwest | 168,310 | — | 168,142 | 168 | |||||||||||
Northeast | 68,065 | — | 68,065 | — | |||||||||||
South | 239,187 | — | 239,187 | — | |||||||||||
West | 131,744 | — | 131,744 | — | |||||||||||
Foreign bonds | 65,234 | — | 65,234 | — | |||||||||||
Public utilities | 215,674 | — | 215,674 | — | |||||||||||
Corporate bonds | |||||||||||||||
Energy | 108,860 | — | 108,860 | — | |||||||||||
Industrials | 229,903 | — | 229,903 | — | |||||||||||
Consumer goods and services | 181,687 | — | 180,590 | 1,097 | |||||||||||
Health care | 83,123 | — | 83,123 | — | |||||||||||
Technology, media and telecommunications | 144,612 | — | 144,612 | — | |||||||||||
Financial services | 273,951 | — | 265,154 | 8,797 | |||||||||||
Mortgage-backed securities | 17,248 | — | 17,248 | — | |||||||||||
Collateralized mortgage obligations | |||||||||||||||
Government national mortgage association | 144,460 | — | 144,460 | — | |||||||||||
Federal home loan mortgage corporation | 174,458 | — | 174,458 | — | |||||||||||
Federal national mortgage association | 101,896 | — | 101,896 | — | |||||||||||
Asset-backed securities | 4,270 | — | 3,821 | 449 | |||||||||||
Total Available-for-Sale Fixed Maturities | $ | 2,898,126 | $ | — | $ | 2,887,615 | $ | 10,511 | |||||||
Equity securities: | |||||||||||||||
Common stocks | |||||||||||||||
Public utilities | $ | 19,671 | $ | 19,671 | $ | — | $ | — | |||||||
Energy | 15,047 | 15,047 | — | — | |||||||||||
Industrials | 51,794 | 51,794 | — | — | |||||||||||
Consumer goods and services | 24,117 | 24,117 | — | — | |||||||||||
Health care | 27,420 | 27,420 | — | — | |||||||||||
Technology, media and telecommunications | 15,369 | 15,369 | — | — | |||||||||||
Financial services | 115,950 | 111,958 | — | 3,992 |
Nonredeemable preferred stocks | 1,048 | 453 | — | 595 | |||||||||||
Total Available-for-Sale Equity Securities | $ | 270,416 | $ | 265,829 | $ | — | $ | 4,587 | |||||||
Total Available-for-Sale Securities | $ | 3,168,542 | $ | 265,829 | $ | 2,887,615 | $ | 15,098 | |||||||
TRADING | |||||||||||||||
Fixed maturities: | |||||||||||||||
Bonds | |||||||||||||||
Corporate bonds | |||||||||||||||
Industrials | $ | 3,919 | $ | — | $ | 3,919 | $ | — | |||||||
Consumer goods and services | 127 | — | 127 | — | |||||||||||
Health care | 3,410 | — | 3,410 | — | |||||||||||
Technology, media and telecommunications | 787 | — | 787 | — | |||||||||||
Financial services | 4,842 | — | 4,842 | — | |||||||||||
Redeemable preferred stocks | 1,305 | 1,305 | — | — | |||||||||||
Equity securities: | |||||||||||||||
Public utilities | 613 | 613 | — | — | |||||||||||
Energy | 286 | 286 | — | — | |||||||||||
Industrials | 877 | 877 | — | — | |||||||||||
Consumer goods and services | 1,202 | 1,202 | — | — | |||||||||||
Health care | 339 | 339 | — | — | |||||||||||
Financial services | 206 | 206 | — | — | |||||||||||
Nonredeemable preferred stocks | 2,121 | 2,121 | — | — | |||||||||||
Total Trading Securities | $ | 20,034 | $ | 6,949 | $ | 13,085 | $ | — | |||||||
Short-Term Investments | $ | 175 | $ | 175 | $ | — | $ | — | |||||||
Money Market Accounts | $ | 16,802 | $ | 16,802 | $ | — | $ | — | |||||||
Corporate-Owned Life Insurance | $ | 2,592 | $ | — | $ | 2,592 | $ | — | |||||||
Total Assets Measured at Fair Value | $ | 3,208,145 | $ | 289,755 | $ | 2,903,292 | $ | 15,098 |
September 30, 2017 | Fair Value Measurements | ||||||||||||||
Description | Total | Level 1 | Level 2 | Level 3 | |||||||||||
AVAILABLE-FOR-SALE | |||||||||||||||
Fixed maturities: | |||||||||||||||
Continuing operations | $ | 1,498,662 | $ | — | $ | 1,497,931 | $ | 731 | |||||||
Discontinued operations | 1,426,991 | — | 1,418,298 | 8,693 | |||||||||||
Total Available-for-Sale Fixed Maturities | $ | 2,925,653 | $ | — | $ | 2,916,229 | $ | 9,424 | |||||||
Equity securities: | |||||||||||||||
Continuing operations | $ | 269,341 | $ | 268,607 | $ | — | $ | 734 | |||||||
Discontinued operations | 22,616 | 22,616 | — | — | |||||||||||
Total Available-for-Sale Equity Securities | $ | 291,957 | $ | 291,223 | $ | — | $ | 734 | |||||||
Total Available-for-Sale Securities | $ | 3,217,610 | $ | 291,223 | $ | 2,916,229 | $ | 10,158 | |||||||
TRADING | |||||||||||||||
Fixed maturities: | |||||||||||||||
Continuing operations | $ | 13,673 | $ | 1,557 | $ | 12,116 | $ | — | |||||||
Discontinued operations | — | — | — | — | |||||||||||
Equity securities: | |||||||||||||||
Continuing operations | 6,330 | 6,330 | — | — | |||||||||||
Discontinued operations | — | — | — | — | |||||||||||
Total Trading Securities | $ | 20,003 | $ | 7,887 | $ | 12,116 | $ | — | |||||||
SHORT-TERM INVESTMENTS | |||||||||||||||
Continuing operations | $ | 175 | $ | 175 | $ | — | $ | — | |||||||
Discontinued operations | — | — | — | $ | — | ||||||||||
Short-Term Investments | $ | 175 | $ | 175 | $ | — | $ | — | |||||||
MONEY MARKET ACCOUNTS | |||||||||||||||
Continuing operations | $ | 13,203 | $ | 13,203 | $ | — | $ | — | |||||||
Discontinued operations | 694 | 694 | — | — | |||||||||||
Money Market Accounts | $ | 13,897 | $ | 13,897 | $ | — | $ | — | |||||||
CORPORATE-OWNED LIFE INSURANCE | |||||||||||||||
Continuing operations | $ | 3,759 | $ | — | $ | 3,759 | $ | — | |||||||
Discontinued operations | — | — | — | — | |||||||||||
Corporate-Owned Life Insurance | $ | 3,759 | $ | — | $ | 3,759 | $ | — | |||||||
Total Assets Measured at Fair Value | $ | 3,255,444 | $ | 313,182 | $ | 2,932,104 | $ | 10,158 |
December 31, 2016 | Fair Value Measurements | ||||||||||||||
Description | Total | Level 1 | Level 2 | Level 3 | |||||||||||
AVAILABLE-FOR-SALE | |||||||||||||||
Fixed maturities: | |||||||||||||||
Continuing operations | $ | 1,453,286 | $ | — | $ | 1,452,737 | $ | 549 | |||||||
Discontinued operations | 1,444,840 | — | 1,434,878 | 9,962 | |||||||||||
Total Available-for-Sale Fixed Maturities | $ | 2,898,126 | $ | — | $ | 2,887,615 | $ | 10,511 | |||||||
Equity securities: | |||||||||||||||
Continuing operations | $ | 246,370 | $ | 243,627 | $ | — | $ | 2,743 | |||||||
Discontinued operations | 24,046 | 22,202 | — | 1,844 | |||||||||||
Total Available-for-Sale Equity Securities | $ | 270,416 | $ | 265,829 | $ | — | $ | 4,587 | |||||||
Total Available-for-Sale Securities | $ | 3,168,542 | $ | 265,829 | $ | 2,887,615 | $ | 15,098 | |||||||
TRADING | |||||||||||||||
Fixed maturities: | |||||||||||||||
Continuing operations | $ | 14,390 | $ | 1,305 | $ | 13,085 | $ | — | |||||||
Discontinued operations | — | — | — | — | |||||||||||
Equity securities: | |||||||||||||||
Continuing operations | 5,644 | 5,644 | — | — | |||||||||||
Discontinued operations | — | — | — | — | |||||||||||
Total Trading Securities | $ | 20,034 | $ | 6,949 | $ | 13,085 | $ | — | |||||||
SHORT-TERM INVESTMENTS | |||||||||||||||
Continuing operations | $ | 175 | $ | 175 | $ | — | $ | — | |||||||
Discontinued operations | — | — | — | — | |||||||||||
Short-Term Investments | $ | 175 | $ | 175 | $ | — | $ | — | |||||||
MONEY MARKET ACCOUNTS | |||||||||||||||
Continuing operations | $ | 4,810 | $ | 4,810 | $ | — | $ | — | |||||||
Discontinued operations | 11,992 | 11,992 | — | — | |||||||||||
Money Market Accounts | $ | 16,802 | $ | 16,802 | $ | — | $ | — | |||||||
CORPORATE-OWNED LIFE INSURANCE | |||||||||||||||
Continuing operations | $ | 2,592 | $ | — | $ | 2,592 | $ | — | |||||||
Discontinued operations | — | — | — | — | |||||||||||
Corporate-Owned Life Insurance | $ | 2,592 | $ | — | $ | 2,592 | $ | — | |||||||
Total Assets Measured at Fair Value | $ | 3,208,145 | $ | 289,755 | $ | 2,903,292 | $ | 15,098 |
Technology, media and telecommunications | 27,670 | — | 27,670 | — | |||||||||||||||||||
Financial services | 100,253 | — | 100,003 | 250 | |||||||||||||||||||
Mortgage-backed securities | 6,356 | — | 6,356 | — | |||||||||||||||||||
Collateralized mortgage obligations | |||||||||||||||||||||||
Government national mortgage association | 80,356 | — | 80,356 | — | |||||||||||||||||||
Federal home loan mortgage corporation | 124,502 | — | 124,502 | — | |||||||||||||||||||
Federal national mortgage association | 71,845 | — | 71,845 | — | |||||||||||||||||||
Asset-backed securities | 750 | — | — | 750 | |||||||||||||||||||
Total Available-for-Sale Fixed Maturities | $ | 1,719,607 | $ | — | $ | 1,718,607 | $ | 1,000 | |||||||||||||||
TRADING | |||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||
Bonds | |||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||
Consumer goods and services | $ | 2,276 | $ | — | $ | 2,276 | $ | — | |||||||||||||||
Health care | 4,701 | — | 4,701 | — | |||||||||||||||||||
Technology, media and telecommunications | 1,732 | — | 1,732 | — | |||||||||||||||||||
Financial services | 2,460 | — | 2,460 | — | |||||||||||||||||||
Redeemable preferred stocks | 4,087 | 4,087 | — | — | |||||||||||||||||||
Total Trading Securities | $ | 15,256 | $ | 4,087 | $ | 11,169 | — | ||||||||||||||||
EQUITY SECURITIES | |||||||||||||||||||||||
Common stocks | |||||||||||||||||||||||
Public utilities | $ | 16,295 | $ | 16,295 | $ | — | $ | — | |||||||||||||||
Energy | 14,639 | 14,639 | — | — | |||||||||||||||||||
Industrials | 57,330 | 57,330 | — | — | |||||||||||||||||||
Consumer goods and services | 29,935 | 29,935 | — | — | |||||||||||||||||||
Health care | 27,285 | 27,285 | — | — | |||||||||||||||||||
Technology, media and telecommunications | 19,265 | 19,265 | — | — | |||||||||||||||||||
Financial services | 127,780 | 127,780 | — | — | |||||||||||||||||||
Nonredeemable preferred stocks | 6,674 | 6,079 | — | 595 | |||||||||||||||||||
Total Equity Securities | $ | 299,203 | $ | 298,608 | $ | — | $ | 595 | |||||||||||||||
Short-Term Investments | $ | 175 | $ | 175 | $ | — | $ | — | |||||||||||||||
Money Market Accounts | $ | 9,334 | $ | 9,334 | $ | — | $ | — | |||||||||||||||
Corporate-Owned Life Insurance | $ | 6,777 | $ | — | $ | 6,777 | $ | — | |||||||||||||||
Total Assets Measured at Fair Value | $ | 2,050,352 | $ | 312,204 | $ | 1,736,553 | $ | 1,595 |
Quantitative Information about Level 3 Fair Value Measurements | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value at | Valuation Technique(s) | Unobservable inputs | Range of weighted average significant unobservable inputs | |||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds - financial services | $ | 250 | Fair value equals cost | NA | NA | |||||||||||||||||||||||||||||||||||||||||||||
Fixed Maturities asset-backed securities | 927 | Discounted cash flow | Probability of default | 4% - 6% | ||||||||||||||||||||||||||||||||||||||||||||||
Nonredeemable preferred stocks | 595 | Discounted cash flow | Multiplier | 3x - 4x |
States, municipalities and political subdivisions | Corporate bonds | Asset-backed securities | Equities | Total | |||||||||||||||
Balance at June 30, 2017 | $ | 77 | $ | 9,056 | $ | 622 | $ | 595 | $ | 10,350 | |||||||||
Net unrealized gains (losses)(1) | — | (7 | ) | 9 | 139 | 141 | |||||||||||||
Purchases | — | 100 | — | — | 100 | ||||||||||||||
Disposals | — | (433 | ) | — | — | (433 | ) | ||||||||||||
Balance at September 30, 2017 | $ | 77 | $ | 8,716 | $ | 631 | $ | 734 | $ | 10,158 |
Corporate bonds | Asset-backed securities | Equities | Total | ||||||||||||||||||||||||||||||||||||||
Balance at April 1, 2020 | $ | 250 | $ | 921 | $ | 595 | $ | 1,766 | |||||||||||||||||||||||||||||||||
Net unrealized gains(1) | — | 6 | — | 6 | |||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | $ | 250 | $ | 927 | $ | 595 | $ | 1,772 |
States, municipalities and political subdivisions | Corporate bonds | Asset-backed securities | Equities | Total | |||||||||||||||
Balance at January 1, 2017 | $ | 168 | $ | 9,894 | $ | 449 | $ | 4,587 | $ | 15,098 | |||||||||
Net unrealized gains (losses)(1) | (6 | ) | (6 | ) | 182 | 139 | 309 | ||||||||||||
Purchases | — | 100 | — | 145 | 245 | ||||||||||||||
Disposals | (85 | ) | (1,272 | ) | — | (4,137 | ) | (5,494 | ) | ||||||||||
Balance at September 30, 2017 | $ | 77 | $ | 8,716 | $ | 631 | $ | 734 | $ | 10,158 |
Corporate bonds | Asset-backed securities | Equities | Total | ||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2020 | $ | 250 | $ | 750 | $ | 595 | $ | 1,595 | |||||||||||||||||||||||||||||||||
Net unrealized gains(1) | — | 177 | — | 177 | |||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | $ | 250 | $ | 927 | $ | 595 | $ | 1,772 |
Commercial Mortgage Loans | ||||||||||||||||||||
June 30, 2020 | December 31, 2019 | |||||||||||||||||||
Loan-to-value | Carrying Value | Carrying Value | ||||||||||||||||||
Less than 65% | $ | 39,189 | $ | 34,024 | ||||||||||||||||
65%-75% | 8,496 | 8,496 | ||||||||||||||||||
Total amortized cost | $ | 47,685 | $ | 42,520 | ||||||||||||||||
Allowance for mortgage loan losses | (76) | (72) | ||||||||||||||||||
Mortgage loans, net | $ | 47,609 | $ | 42,448 |
Mortgage Loans by Region | ||||||||||||||||||||||||||||||||||||||||||||
June 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||
Carrying Value | Percent of Total | Carrying Value | Percent of Total | |||||||||||||||||||||||||||||||||||||||||
East North Central | $ | 3,245 | 6.8 | % | $ | 3,245 | 7.6 | % | ||||||||||||||||||||||||||||||||||||
Southern Atlantic | 9,594 | 20.1 | 7,026 | 16.5 | ||||||||||||||||||||||||||||||||||||||||
East South Central | 8,278 | 17.4 | 8,358 | 19.7 | ||||||||||||||||||||||||||||||||||||||||
New England | 6,588 | 13.8 | 6,588 | 15.5 | ||||||||||||||||||||||||||||||||||||||||
Middle Atlantic | 15,007 | 31.4 | 15,076 | 35.5 | ||||||||||||||||||||||||||||||||||||||||
Mountain | 2,227 | 4.7 | 2,227 | 5.2 | ||||||||||||||||||||||||||||||||||||||||
West North Central | 2,746 | 5.8 | — | — | ||||||||||||||||||||||||||||||||||||||||
Total mortgage loans at amortized cost | $ | 47,685 | 100.0 | % | $ | 42,520 | 100.0 | % |
Mortgage Loans by Property Type | ||||||||||||||||||||||||||||||||||||||||||||
June 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||
Carrying Value | Percent of Total | Carrying Value | Percent of Total | |||||||||||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||||||||||
Multifamily | $ | 17,064 | 35.7 | % | $ | 11,741 | 27.6 | % | ||||||||||||||||||||||||||||||||||||
Office | 11,759 | 24.7 | 11,848 | 27.9 | ||||||||||||||||||||||||||||||||||||||||
Industrial | 10,124 | 21.2 | 10,124 | 23.8 | ||||||||||||||||||||||||||||||||||||||||
Retail | 2,227 | 4.7 | 2,227 | 5.2 | ||||||||||||||||||||||||||||||||||||||||
Mixed use/Other | 6,511 | 13.7 | 6,580 | 15.5 | ||||||||||||||||||||||||||||||||||||||||
Total mortgage loans at amortized cost | $ | 47,685 | 100.0 | % | $ | 42,520 | 100.0 | % |
Amortized Cost Basis by Year of Origination and Credit Quality Indicator | ||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | Total | |||||||||||||||||||||||||||||||||||||||||
Commercial mortgage loans: | ||||||||||||||||||||||||||||||||||||||||||||
Risk Rating: | ||||||||||||||||||||||||||||||||||||||||||||
1-2 internal grade | $ | 5,323 | $ | 8,416 | $ | 18,862 | $ | 32,601 | ||||||||||||||||||||||||||||||||||||
3-4 internal grade | — | 8,496 | 6,588 | 15,084 | ||||||||||||||||||||||||||||||||||||||||
5 internal grade | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
6 internal grade | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
7 internal grade | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Total commercial mortgage loans | $ | 5,323 | $ | 16,912 | $ | 25,450 | $ | 47,685 | ||||||||||||||||||||||||||||||||||||
Current-period write-offs | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Current-period recoveries | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Current-period net write-offs | $ | — | $ | — | $ | — | $ | — |
Rollforward of allowance for mortgage loan losses: | ||||||||||||||
As of | ||||||||||||||
June 30, 2020 | ||||||||||||||
Beginning balance, January 1, 2020 | $ | 72 | ||||||||||||
Current-period provision for expected credit losses | 4 | |||||||||||||
Write-off charged against the allowance, if any | — | |||||||||||||
Recoveries of amounts previously written off, if any | — | |||||||||||||
Ending balance of the allowance for mortgage loan losses, June 30, 2020 | $ | 76 |
September 30, 2017 | December 31, 2016 | June 30, 2020 | December 31, 2019 | |||||||||||||||
Gross liability for losses and loss settlement expenses at beginning of year | $ | 1,123,896 | $ | 1,003,895 | Gross liability for losses and loss settlement expenses at beginning of year | $ | 1,421,754 | $ | 1,312,483 | |||||||||
Ceded losses and loss settlement expenses | (59,794 | ) | (54,653 | ) | Ceded losses and loss settlement expenses | (68,536) | (57,094) | |||||||||||
Net liability for losses and loss settlement expenses at beginning of year | $ | 1,064,102 | $ | 949,242 | Net liability for losses and loss settlement expenses at beginning of year | $ | 1,353,218 | $ | 1,255,389 | |||||||||
Losses and loss settlement expenses incurred for claims occurring during | Losses and loss settlement expenses incurred for claims occurring during | |||||||||||||||||
Current year | $ | 606,344 | $ | 683,662 | Current year | $ | 415,246 | $ | 835,507 | |||||||||
Prior years | (37,988 | ) | (31,229 | ) | Prior years | (23,770) | (5,335) | |||||||||||
Total incurred | $ | 568,356 | $ | 652,433 | Total incurred | $ | 391,476 | $ | 830,172 | |||||||||
Losses and loss settlement expense payments for claims occurring during | Losses and loss settlement expense payments for claims occurring during | |||||||||||||||||
Current year | $ | 212,591 | $ | 277,053 | Current year | $ | 143,828 | $ | 333,975 | |||||||||
Prior years | 247,608 | 260,520 | Prior years | 246,197 | 398,368 | |||||||||||||
Total paid | $ | 460,199 | $ | 537,573 | Total paid | $ | 390,025 | $ | 732,343 | |||||||||
Net liability for losses and loss settlement expenses at end of year | $ | 1,172,259 | $ | 1,064,102 | Net liability for losses and loss settlement expenses at end of year | $ | 1,354,669 | $ | 1,353,218 | |||||||||
Ceded loss and loss settlement expenses | 65,021 | 59,794 | Ceded loss and loss settlement expenses | 123,020 | 68,536 | |||||||||||||
Gross liability for losses and loss settlement expenses at end of period | $ | 1,237,280 | $ | 1,123,896 | Gross liability for losses and loss settlement expenses at end of period | $ | 1,477,689 | $ | 1,421,754 |
Pension Plan | Postretirement Benefit Plan | ||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||
Net periodic benefit cost | |||||||||||||||||||||||||||||||||||
Service cost | $ | 2,707 | $ | 1,997 | $ | 432 | $ | 456 | |||||||||||||||||||||||||||
Interest cost | 2,066 | 2,080 | 253 | 318 | |||||||||||||||||||||||||||||||
Expected return on plan assets | (3,385) | (2,696) | — | — | |||||||||||||||||||||||||||||||
Amortization of prior service credit | — | — | (2,021) | (2,221) | |||||||||||||||||||||||||||||||
Amortization of net loss | 979 | 901 | 94 | 224 | |||||||||||||||||||||||||||||||
Net periodic benefit cost | $ | 2,367 | $ | 2,282 | $ | (1,242) | $ | (1,223) |
Pension Plan | Postretirement Benefit Plan | ||||||||||||||
Three Months Ended September 30, | 2017 | 2016 | 2017 | 2016 | |||||||||||
Net periodic benefit cost | |||||||||||||||
Service cost | $ | 1,714 | $ | 1,623 | $ | 505 | $ | 932 | |||||||
Interest cost | 1,765 | 1,663 | 482 | 754 | |||||||||||
Expected return on plan assets | (2,413 | ) | (1,988 | ) | — | — | |||||||||
Amortization of prior service credit | — | — | (1,352 | ) | — | ||||||||||
Amortization of net loss | 891 | 992 | 462 | 379 | |||||||||||
Net periodic benefit cost | $ | 1,957 | $ | 2,290 | $ | 97 | $ | 2,065 |
Pension Plan | Postretirement Benefit Plan | ||||||||||||||||||||||||||||||||||
Six Months Ended June 30, | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||
Net periodic benefit cost | |||||||||||||||||||||||||||||||||||
Service cost | $ | 5,414 | $ | 3,994 | $ | 864 | $ | 912 | |||||||||||||||||||||||||||
Interest cost | 4,132 | 4,160 | 506 | 637 | |||||||||||||||||||||||||||||||
Expected return on plan assets | (6,770) | (5,392) | — | — | |||||||||||||||||||||||||||||||
Amortization of prior service credit | — | — | (4,042) | (4,242) | |||||||||||||||||||||||||||||||
Amortization of net loss | 1,958 | 1,802 | 188 | 447 | |||||||||||||||||||||||||||||||
Net periodic benefit cost | $ | 4,734 | $ | 4,564 | $ | (2,484) | $ | (2,246) |
Pension Plan | Postretirement Benefit Plan | ||||||||||||||
Nine Months Ended September 30, | 2017 | 2016 | 2017 | 2016 | |||||||||||
Net periodic benefit cost | |||||||||||||||
Service cost | $ | 5,141 | $ | 4,869 | $ | 1,515 | $ | 2,796 | |||||||
Interest cost | 5,295 | 4,989 | 1,446 | 2,262 | |||||||||||
Expected return on plan assets | (7,237 | ) | (5,964 | ) | — | — | |||||||||
Amortization of prior service credit | — | — | (4,056 | ) | — | ||||||||||
Amortization of net loss | 2,673 | 2,976 | 1,384 | 1,137 | |||||||||||
Net periodic benefit cost | $ | 5,872 | $ | 6,870 | $ | 289 | $ | 6,195 |
Authorized Shares Available for Future Award Grants | Six Months Ended June 30, 2020 | From Inception to June 30, 2020 | |||||||||
Beginning balance | 834,910 | 1,900,000 | |||||||||
Additional shares authorized | — | 1,500,000 | |||||||||
Number of awards granted | (165,024) | (3,281,445) | |||||||||
Number of awards forfeited or expired | 34,374 | 585,705 | |||||||||
Ending balance | 704,260 | 704,260 | |||||||||
Number of option awards exercised | 7,200 | 1,450,389 | |||||||||
Number of unrestricted stock awards granted | — | 10,090 | |||||||||
Number of restricted stock awards vested | 63,600 | 164,378 |
Authorized Shares Available for Future Award Grants | Nine Months Ended September 30, 2017 | From Inception to September 30, 2017 | |||
Beginning balance | 1,248,651 | 1,900,000 | |||
Additional shares authorized | — | 1,500,000 | |||
Number of awards granted | (255,040 | ) | (2,867,606 | ) | |
Number of awards forfeited or expired | 3,228 | 464,445 | |||
Ending balance | 996,839 | 996,839 | |||
Number of option awards exercised | 101,189 | 1,050,257 | |||
Number of unrestricted stock awards granted | 1,145 | 8,470 | |||
Number of restricted stock awards vested | — | 36,970 |
Authorized Shares Available for Future Award Grants | Six Months Ended June 30, 2020 | From Inception to June 30, 2020 | |||||||||
Beginning balance | 34,863 | 300,000 | |||||||||
Additional authorization | 150,000 | 150,000 | |||||||||
Number of awards granted | (24,728) | (313,868) | |||||||||
Number of awards forfeited or expired | — | 24,003 | |||||||||
Ending balance | 160,135 | 160,135 | |||||||||
Number of option awards exercised | 14,183 | 133,275 | |||||||||
Number of restricted stock awards vested | 14,300 | 98,491 |
Authorized Shares Available for Future Award Grants | Nine Months Ended September 30, 2017 | From Inception to June 30, 2017 | |||
Beginning balance | 74,771 | 300,000 | |||
Number of awards granted | (12,958 | ) | (262,190 | ) | |
Number of awards forfeited or expired | — | 24,003 | |||
Ending balance | 61,813 | 61,813 | |||
Number of option awards exercised | 6,727 | 59,200 | |||
Number of restricted stock awards vested | 22,716 | 54,272 |
2020 | $ | 2,159 | ||||||
2021 | 2,666 | |||||||
2022 | 1,146 | |||||||
2023 | 225 | |||||||
2024 | 82 | |||||||
2025 | 11 | |||||||
Total | $ | 6,289 |
2017 | $ | 1,202 | ||
2018 | 4,047 | |||
2019 | 2,784 | |||
2020 | 1,120 | |||
2021 | 393 | |||
2022 | 40 | |||
Total | $ | 9,586 |
Three Months Ended September 30, | Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Thousands, Except Share Data) | 2017 | 2016 | (In Thousands, Except Share Data) | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | Diluted | Basic | Diluted | Basic | Diluted | Basic | Diluted | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) from continuing operations | $ | (19,082 | ) | $ | (19,082 | ) | $ | 11,628 | $ | 11,628 | ||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | Net income (loss) | $ | 5,960 | $ | 5,960 | $ | (4,196) | $ | (4,196) | |||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average common shares outstanding | 24,960,086 | 24,960,086 | 25,389,633 | 25,389,633 | Weighted-average common shares outstanding | 25,024,855 | 25,024,855 | 25,210,354 | 25,210,354 | |||||||||||||||||||||||||||||||||||||||||||||||
Add dilutive effect of restricted stock unit awards | — | — | — | 155,270 | Add dilutive effect of restricted stock unit awards | — | 213,203 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Add dilutive effect of stock options | — | — | — | 270,443 | Add dilutive effect of stock options | — | 17,546 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average common shares outstanding | 24,960,086 | 24,960,086 | 25,389,633 | 25,815,346 | Weighted-average common shares outstanding | 25,024,855 | 25,255,604 | 25,210,354 | 25,210,354 | |||||||||||||||||||||||||||||||||||||||||||||||
Earnings (loss) per common share from continuing operations | $ | (0.77 | ) | $ | (0.77 | ) | $ | 0.46 | $ | 0.45 | ||||||||||||||||||||||||||||||||||||||||||||||
Earnings per common share from discontinued operations | 0.05 | 0.05 | 0.03 | 0.03 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings (loss) per common share | $ | (0.72 | ) | $ | (0.72 | ) | $ | 0.49 | $ | 0.48 | Earnings (loss) per common share | $ | 0.24 | $ | 0.24 | $ | (0.17) | $ | (0.17) | |||||||||||||||||||||||||||||||||||||
Awards excluded from diluted earnings per share calculation(1) | — | — | — | — | Awards excluded from diluted earnings per share calculation(1) | — | 815,279 | — | 63,897 |
(1)Outstanding awards that are not "in-the-money" are excluded from the |
Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||
(In Thousands, Except Share Data) | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||
Basic | Diluted | Basic | Diluted | ||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (66,574) | $ | (66,574) | $ | 40,325 | $ | 40,325 | |||||||||||||||||||||||||||||||||
Weighted-average common shares outstanding | 25,019,441 | 25,019,441 | 25,170,877 | 25,170,877 | |||||||||||||||||||||||||||||||||||||
Add dilutive effect of restricted stock unit awards | — | — | — | 257,810 | |||||||||||||||||||||||||||||||||||||
Add dilutive effect of stock options | — | — | — | 231,116 | |||||||||||||||||||||||||||||||||||||
Weighted-average common shares outstanding | 25,019,441 | 25,019,441 | 25,170,877 | 25,659,803 | |||||||||||||||||||||||||||||||||||||
Earnings (loss) per common share | $ | (2.66) | $ | (2.66) | $ | 1.60 | $ | 1.57 | |||||||||||||||||||||||||||||||||
Awards excluded from diluted earnings per share calculation(1) | — | 515,984 | — | 63,897 |
Nine Months Ended September 30, | |||||||||||||||
(In Thousands, Except Share Data) | 2017 | 2016 | |||||||||||||
Basic | Diluted | Basic | Diluted | ||||||||||||
Net income (loss) from continuing operations | $ | (389 | ) | $ | (389 | ) | $ | 37,083 | $ | 37,083 | |||||
Weighted-average common shares outstanding | 25,177,133 | 25,177,133 | 25,322,427 | 25,322,427 | |||||||||||
Add dilutive effect of restricted stock unit awards | — | 253,082 | — | 155,270 | |||||||||||
Add dilutive effect of stock options | — | 236,190 | — | 233,317 | |||||||||||
Weighted-average common shares outstanding | 25,177,133 | 25,666,405 | 25,322,427 | 25,711,014 | |||||||||||
Earnings (loss) per common share from continuing operations | $ | (0.01 | ) | $ | (0.01 | ) | $ | 1.47 | $ | 1.44 | |||||
Earnings per common share from discontinued operations | 0.21 | 0.21 | 0.03 | 0.03 | |||||||||||
Earnings (loss) per common share | $ | 0.20 | $ | 0.20 | $ | 1.50 | $ | 1.47 | |||||||
Awards excluded from diluted earnings per share calculation(1) | — | — | — | — |
Liability for | ||||||||||||||||||||||||||||
Liability for | Net unrealized | underfunded | ||||||||||||||||||||||||||
Net unrealized | underfunded | appreciation | employee | |||||||||||||||||||||||||
appreciation | employee | on investments | benefit costs(1) | Total | ||||||||||||||||||||||||
on investments | benefit costs(1) | Total | ||||||||||||||||||||||||||
Balance as of June 30, 2017 | $ | 160,048 | $ | (23,080 | ) | $ | 136,968 | |||||||||||||||||||||
Balance as of March 31, 2020 | Balance as of March 31, 2020 | 51,779 | (33,280) | $ | 18,499 | |||||||||||||||||||||||
Change in accumulated other comprehensive income before reclassifications | 12,347 | — | 12,347 | Change in accumulated other comprehensive income before reclassifications | 27,566 | — | 27,566 | |||||||||||||||||||||
Reclassification adjustments from accumulated other comprehensive income (loss) | (273 | ) | 879 | 606 | Reclassification adjustments from accumulated other comprehensive income (loss) | (62) | 847 | 785 | ||||||||||||||||||||
Balance as of September 30, 2017 | $ | 172,122 | $ | (22,201 | ) | $ | 149,921 | |||||||||||||||||||||
Balance as of June 30, 2020 | Balance as of June 30, 2020 | $ | 79,283 | $ | (32,433) | $ | 46,850 |
Liability for | ||||||||||||||||||||||||||||
Liability for | Net unrealized | underfunded | ||||||||||||||||||||||||||
Net unrealized | underfunded | appreciation | employee | |||||||||||||||||||||||||
appreciation | employee | on investments | benefit costs(1) | Total | ||||||||||||||||||||||||
on investments | benefit costs(1) | Total | ||||||||||||||||||||||||||
Balance as of January 1, 2017 | $ | 133,892 | $ | (24,837 | ) | $ | 109,055 | |||||||||||||||||||||
Balance as of January 1, 2020 | Balance as of January 1, 2020 | 47,279 | (34,127) | $ | 13,152 | |||||||||||||||||||||||
Change in accumulated other comprehensive income before reclassifications | 41,999 | — | 41,999 | Change in accumulated other comprehensive income before reclassifications | 31,971 | — | 31,971 | |||||||||||||||||||||
Reclassification adjustments from accumulated other comprehensive income (loss) | (3,769 | ) | 2,636 | (1,133 | ) | Reclassification adjustments from accumulated other comprehensive income (loss) | 33 | 1,694 | 1,727 | |||||||||||||||||||
Balance as of September 30, 2017 | $ | 172,122 | $ | (22,201 | ) | $ | 149,921 | |||||||||||||||||||||
Balance as of June 30, 2020 | Balance as of June 30, 2020 | $ | 79,283 | $ | (32,433) | $ | 46,850 |
Discontinued Operations | |||||||
Balance Sheets | |||||||
(In Thousands, Except Share Data) | September 30, 2017 | December 31, 2016 | |||||
(unaudited) | |||||||
Assets | |||||||
Investments | |||||||
Fixed maturities | |||||||
Held-to-maturity, at amortized cost (fair value $39 in 2017 and $49 in 2016) | $ | 38 | $ | 48 | |||
Available-for-sale, at fair value (amortized cost $1,399,465 in 2017 and $1,429,270 in 2016) | 1,426,991 | 1,444,840 | |||||
Equity Securities available-for-sale, at fair value (cost $5,099 in 2017 and $8,510 in 2016) | 22,616 | 24,046 | |||||
Mortgage loans | 3,504 | 3,706 | |||||
Policy loans | 5,770 | 5,366 | |||||
Other long-term investments | 16,299 | 15,870 | |||||
1,475,218 | 1,493,876 | ||||||
Cash and cash equivalents | 30,751 | 21,659 | |||||
Deferred policy acquisition costs | 65,836 | 70,750 | |||||
Other assets | 21,041 | 19,333 | |||||
Total assets held for sale | $ | 1,592,846 | $ | 1,605,618 | |||
Liabilities | |||||||
Future policy benefits and losses | $ | 1,324,029 | $ | 1,350,503 | |||
Accrued expenses and other liabilities | 39,708 | 39,720 | |||||
Total liabilities held for sale | $ | 1,363,737 | $ | 1,390,223 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||
Components of lease expense: | ||||||||||||||||||||||||||||||||||||||
Operating lease expense | $ | 1,926 | $ | 1,912 | $ | 3,956 | $ | 3,820 | ||||||||||||||||||||||||||||||
Less sublease income | 63 | 126 | 186 | 252 | ||||||||||||||||||||||||||||||||||
Net lease expense | 1,863 | 1,786 | 3,770 | 3,568 | ||||||||||||||||||||||||||||||||||
Cash flows information related to leases: | ||||||||||||||||||||||||||||||||||||||
Operating cash outflow from operating leases | 1,829 | 1,808 | 3,469 | 3,608 |
Discontinued Operations | |||||||||||||||
Statements of Income | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(In Thousands, Except Share Data) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Revenues | |||||||||||||||
Net premiums earned | $ | 14,230 | $ | 20,600 | $ | 45,999 | $ | 62,878 | |||||||
Investment income, net of investment expenses | 12,354 | 12,663 | 37,230 | 38,404 | |||||||||||
Net realized investment gains | 296 | 461 | 3,600 | 1,409 | |||||||||||
Other income | 174 | 145 | 498 | 436 | |||||||||||
Total revenues | $ | 27,054 | $ | 33,869 | $ | 87,327 | $ | 103,127 | |||||||
Benefits, Losses and Expenses | |||||||||||||||
Losses and loss settlement expenses | $ | 10,506 | $ | 7,252 | $ | 30,679 | $ | 23,527 | |||||||
Increase in liability for future policy benefits | 5,481 | 14,091 | 19,341 | 42,645 | |||||||||||
Amortization of deferred policy acquisition costs | 2,156 | 1,876 | 5,524 | 5,716 | |||||||||||
Other underwriting expenses | 2,444 | 4,527 | 9,452 | 14,630 | |||||||||||
Interest on policyholders’ accounts | 4,587 | 4,983 | 13,982 | 15,368 | |||||||||||
Total benefits, losses and expenses | $ | 25,174 | $ | 32,729 | $ | 78,978 | $ | 101,886 | |||||||
Income from discontinued operations before income taxes | $ | 1,880 | $ | 1,140 | $ | 8,349 | $ | 1,241 | |||||||
Federal income tax expense | 662 | 400 | 2,930 | 415 | |||||||||||
Net income from discontinued operations | $ | 1,218 | $ | 740 | $ | 5,419 | $ | 826 | |||||||
Earnings per common share from discontinued operations: | |||||||||||||||
Basic | $ | 0.05 | $ | 0.03 | $ | 0.21 | $ | 0.03 | |||||||
Diluted | 0.05 | 0.03 | 0.21 | 0.03 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Thousands) | 2017 | 2016 | % | 2017 | 2016 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Thousands, Except Ratios) | (In Thousands, Except Ratios) | 2020 | 2019 | % | 2020 | 2019 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | Revenues | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net premiums earned | $ | 255,758 | $ | 239,469 | 6.8 | % | $ | 737,424 | $ | 691,976 | 6.6 | % | Net premiums earned | $ | 263,609 | $ | 276,486 | (4.7) | % | $ | 532,458 | $ | 538,800 | (1.2) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment income, net of investment expenses | 13,792 | 14,027 | (1.7 | ) | 38,561 | 35,017 | 10.1 | Investment income, net of investment expenses | 12,696 | 14,120 | (10.1) | 15,059 | 30,632 | (50.8) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized investment gains | 67 | 2,129 | (96.9 | ) | 3,397 | 4,832 | (29.7 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in the value of equity securities | Change in the value of equity securities | 29,809 | 12,499 | 138.5 | (60,838) | 37,133 | (263.8) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
All other net realized gains (losses) | All other net realized gains (losses) | (14,030) | 1,092 | NM | (16,790) | 3,171 | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized investment gains (losses) | Net realized investment gains (losses) | 15,779 | 13,591 | 16.1 | (77,628) | 40,304 | (292.6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income | Other income | 5,719 | — | NM | 5,719 | — | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 269,617 | $ | 255,625 | 5.5 | % | $ | 779,382 | $ | 731,825 | 6.5 | % | Total revenues | $ | 297,803 | $ | 304,197 | (2.1) | % | $ | 475,608 | $ | 609,736 | (22.0) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits, Losses and Expenses | Benefits, Losses and Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Losses and loss settlement expenses | $ | 223,208 | $ | 169,303 | 31.8 | % | $ | 568,356 | $ | 475,568 | 19.5 | % | Losses and loss settlement expenses | $ | 204,973 | $ | 220,009 | (6.8) | % | $ | 391,476 | $ | 384,249 | 1.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of deferred policy acquisition costs | 52,986 | 52,240 | 1.4 | 154,845 | 151,216 | 2.4 | Amortization of deferred policy acquisition costs | 51,893 | 54,795 | (5.3) | 106,345 | 107,014 | (0.6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other underwriting expenses | 25,817 | 20,047 | 28.8 | 69,900 | 61,469 | 13.7 | Other underwriting expenses | 36,701 | 33,964 | 8.1 | 78,550 | 68,367 | 14.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total benefits, losses and expenses | $ | 302,011 | $ | 241,590 | 25.0 | % | $ | 793,101 | $ | 688,253 | 15.2 | % | Total benefits, losses and expenses | $ | 293,567 | $ | 308,768 | (4.9) | % | $ | 576,371 | $ | 559,630 | 3.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | (32,394 | ) | $ | 14,035 | NM | $ | (13,719 | ) | $ | 43,572 | (131.5 | )% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | Income (loss) before income taxes | $ | 4,236 | $ | (4,571) | (192.7) | $ | (100,763) | $ | 50,106 | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal income tax expense (benefit) | (13,312 | ) | 2,407 | NM | (13,330 | ) | 6,489 | NM | Federal income tax expense (benefit) | (1,724) | (375) | NM | (34,189) | 9,781 | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) from continuing operations | $ | (19,082 | ) | $ | 11,628 | (264.1 | )% | $ | (389 | ) | $ | 37,083 | (101.0 | )% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income from discontinued operations, net of tax | 1,218 | 740 | 64.6 | % | 5,419 | 826 | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (17,864 | ) | $ | 12,368 | (244.4 | )% | $ | 5,030 | $ | 37,909 | (86.7 | )% | Net income (loss) | $ | 5,960 | $ | (4,196) | (242.0) | $ | (66,574) | $ | 40,325 | (265.1) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
GAAP Ratios: | GAAP Ratios: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss ratio (without catastrophes) | 75.3 | % | 65.5 | % | 15.0 | % | 67.8 | % | 61.1 | % | 11.0 | % | Net loss ratio (without catastrophes) | 58.6 | % | 71.6 | % | (18.2) | % | 61.1 | % | 66.5 | % | (8.1) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Catastrophes - effect on net loss ratio | 12.0 | 5.2 | 130.8 | % | 9.3 | 7.6 | 22.4 | % | Catastrophes - effect on net loss ratio | 19.2 | 8.0 | 140.0 | 12.4 | 4.8 | 158.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss ratio(1) | 87.3 | % | 70.7 | % | 23.5 | % | 77.1 | % | 68.7 | % | 12.2 | % | Net loss ratio(1) | 77.8 | % | 79.6 | % | (2.3) | % | 73.5 | % | 71.3 | % | 3.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expense ratio(2) | 30.8 | 30.2 | 2.0 | % | 30.5 | 30.8 | (1.0 | )% | Expense ratio(2) | 33.6 | 32.1 | 4.7 | 34.7 | 32.6 | 6.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Combined ratio(3) | 118.1 | % | 100.9 | % | 17.0 | % | 107.6 | % | 99.5 | % | 8.1 | % | Combined ratio(3) | 111.4 | % | 111.7 | % | (0.3) | % | 108.2 | % | 103.9 | % | 4.1 | % |
Three Months Ended June 30, | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Losses | Net Losses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
and Loss | and Loss | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net | Settlement | Net | Net | Settlement | Net | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Thousands, Except Ratios) | Premiums | Expenses | Loss | Premiums | Expenses | Loss | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaudited | Earned | Incurred | Ratio | Earned | Incurred | Ratio | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial lines | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other liability | $ | 77,407 | $ | 46,914 | 60.6 | % | $ | 79,452 | $ | 57,582 | 72.5 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Fire and allied lines | 62,592 | 67,055 | 107.1 | 60,615 | 55,851 | 92.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Automobile | 73,682 | 58,014 | 78.7 | 78,472 | 69,766 | 88.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Workers' compensation | 19,200 | 6,247 | 32.5 | 22,621 | 9,378 | 41.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Fidelity and surety | 6,332 | 110 | 1.7 | 6,146 | (650) | (10.6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Miscellaneous | 385 | 96 | 24.9 | 436 | 99 | 22.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial lines | $ | 239,598 | $ | 178,436 | 74.5 | % | $ | 247,742 | $ | 192,026 | 77.5 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Personal lines | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fire and allied lines | $ | 9,819 | $ | 19,187 | 195.4 | % | $ | 10,302 | $ | 14,386 | 139.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Automobile | 7,518 | 2,464 | 32.8 | 7,698 | 6,809 | 88.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Miscellaneous | 304 | 52 | 17.1 | 307 | 552 | 179.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total personal lines | $ | 17,641 | $ | 21,703 | 123.0 | % | $ | 18,307 | $ | 21,747 | 118.8 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Reinsurance assumed | $ | 6,370 | $ | 4,834 | 75.9 | % | $ | 10,437 | $ | 6,236 | 59.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 263,609 | $ | 204,973 | 77.8 | % | $ | 276,486 | $ | 220,009 | 79.6 | % |
Three Months Ended September 30, | 2017 | 2016 | |||||||||||||||||||
Net Losses | Net Losses | ||||||||||||||||||||
and Loss | and Loss | ||||||||||||||||||||
Net | Settlement | Net | Net | Settlement | Net | ||||||||||||||||
(In Thousands, Except Ratios) | Premiums | Expenses | Loss | Premiums | Expenses | Loss | |||||||||||||||
Unaudited | Earned | Incurred | Ratio | Earned | Incurred | Ratio | |||||||||||||||
Commercial lines | |||||||||||||||||||||
Other liability | $ | 77,955 | $ | 50,836 | 65.2 | % | $ | 74,784 | $ | 32,714 | 43.7 | % | |||||||||
Fire and allied lines | 58,568 | 45,809 | 78.2 | 56,451 | 47,086 | 83.4 | |||||||||||||||
Automobile | 64,470 | 74,161 | 115.0 | 55,111 | 53,330 | 96.8 | |||||||||||||||
Workers' compensation | 26,387 | 23,357 | 88.5 | 26,766 | 21,772 | 81.3 | |||||||||||||||
Fidelity and surety | 6,430 | (485 | ) | (7.5 | ) | 5,711 | 908 | 15.9 | |||||||||||||
Miscellaneous | 459 | 111 | 24.2 | 453 | 39 | 8.6 | |||||||||||||||
Total commercial lines | $ | 234,269 | $ | 193,789 | 82.7 | % | $ | 219,276 | $ | 155,849 | 71.1 | % | |||||||||
Personal lines | |||||||||||||||||||||
Fire and allied lines | $ | 10,730 | $ | 9,077 | 84.6 | % | $ | 10,986 | $ | 6,606 | 60.1 | % | |||||||||
Automobile | 6,878 | 8,250 | 119.9 | 6,386 | 6,328 | 99.1 | |||||||||||||||
Miscellaneous | 294 | 150 | 51.0 | 277 | (276 | ) | (99.6 | ) | |||||||||||||
Total personal lines | $ | 17,902 | $ | 17,477 | 97.6 | % | $ | 17,649 | $ | 12,658 | 71.7 | % | |||||||||
Reinsurance assumed | $ | 3,587 | $ | 11,942 | NM | $ | 2,544 | $ | 796 | 31.3 | % | ||||||||||
Total | $ | 255,758 | $ | 223,208 | 87.3 | % | $ | 239,469 | $ | 169,303 | 70.7 | % |
Nine Months Ended September 30, | 2017 | 2016 | |||||||||||||||||||
Net Losses | Net Losses | ||||||||||||||||||||
and Loss | and Loss | ||||||||||||||||||||
Net | Settlement | Net | Net | Settlement | Net | ||||||||||||||||
(In Thousands, Except Ratios) | Premiums | Expenses | Loss | Premiums | Expenses | Loss | |||||||||||||||
Unaudited | Earned | Incurred | Ratio | Earned | Incurred | Ratio | |||||||||||||||
Commercial lines | |||||||||||||||||||||
Other liability | $ | 228,250 | $ | 73,597 | 32.2 | % | $ | 215,572 | $ | 101,378 | 47.0 | % | |||||||||
Fire and allied lines | 168,506 | 156,702 | 93.0 | 164,503 | 133,823 | 81.3 | |||||||||||||||
Automobile | 183,688 | 208,346 | 113.4 | 157,106 | 140,397 | 89.4 | |||||||||||||||
Workers' compensation | 78,092 | 55,569 | 71.2 | 77,009 | 53,106 | 69.0 | |||||||||||||||
Fidelity and surety | 18,041 | 207 | 1.1 | 16,221 | 432 | 2.7 | |||||||||||||||
Miscellaneous | 1,374 | 278 | 20.2 | 1,292 | 357 | 27.6 | |||||||||||||||
Total commercial lines | $ | 677,951 | $ | 494,699 | 73.0 | % | $ | 631,703 | $ | 429,493 | 68.0 | % | |||||||||
Personal lines | |||||||||||||||||||||
Fire and allied lines | $ | 32,300 | $ | 31,361 | 97.1 | % | $ | 32,794 | $ | 25,442 | 77.6 | % | |||||||||
Automobile | 20,031 | 22,909 | 114.4 | 18,686 | 16,872 | 90.3 | |||||||||||||||
Miscellaneous | 860 | 80 | 9.3 | 808 | 319 | 39.5 | |||||||||||||||
Total personal lines | $ | 53,191 | $ | 54,350 | 102.2 | % | $ | 52,288 | $ | 42,633 | 81.5 | % | |||||||||
Reinsurance assumed | $ | 6,282 | $ | 19,307 | NM | $ | 7,985 | $ | 3,442 | 43.1 | % | ||||||||||
Total | $ | 737,424 | $ | 568,356 | 77.1 | % | $ | 691,976 | $ | 475,568 | 68.7 | % |
Six Months Ended June 30, | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Losses | Net Losses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
and Loss | and Loss | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net | Settlement | Net | Net | Settlement | Net | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Thousands, Except Ratios) | Premiums | Expenses | Loss | Premiums | Expenses | Loss | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaudited | Earned | Incurred | Ratio | Earned | Incurred | Ratio | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial lines | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other liability | $ | 156,716 | $ | 90,637 | 57.8 | % | $ | 157,879 | $ | 95,857 | 60.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Fire and allied lines | 124,261 | 118,980 | 95.8 | 119,789 | 92,637 | 77.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Automobile | 151,700 | 123,319 | 81.3 | 153,706 | 140,337 | 91.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Workers' compensation | 38,628 | 13,955 | 36.1 | 44,496 | 15,323 | 34.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Fidelity and surety | 12,750 | 142 | 1.1 | 12,521 | (901) | (7.2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Miscellaneous | 780 | 188 | 24.1 | 863 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial lines | $ | 484,835 | $ | 347,221 | 71.6 | % | $ | 489,254 | $ | 343,253 | 70.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Personal lines | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fire and allied lines | $ | 19,789 | $ | 25,921 | 131.0 | % | $ | 20,522 | $ | 20,668 | 100.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Automobile | 15,148 | 7,613 | 50.3 | 15,180 | 12,476 | 82.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Miscellaneous | 610 | 2,658 | 435.7 | 608 | 484 | 79.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total personal lines | $ | 35,547 | $ | 36,192 | 101.8 | % | $ | 36,310 | $ | 33,628 | 92.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Reinsurance assumed | $ | 12,076 | $ | 8,063 | 66.8 | % | $ | 13,236 | $ | 7,368 | 55.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 532,458 | $ | 391,476 | 73.5 | % | $ | 538,800 | $ | 384,249 | 71.3 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(In Thousands) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Revenues | |||||||||||||||
Net premiums earned | $ | 14,230 | $ | 20,600 | $ | 45,999 | $ | 62,878 | |||||||
Investment income, net of investment expenses | 12,354 | 12,663 | 37,230 | 38,404 | |||||||||||
Net realized investment gains | 296 | 461 | 3,600 | 1,409 | |||||||||||
Other income | 174 | 145 | 498 | 436 | |||||||||||
Total revenues | $ | 27,054 | $ | 33,869 | $ | 87,327 | $ | 103,127 | |||||||
Benefits, Losses and Expenses | |||||||||||||||
Losses and loss settlement expenses | $ | 10,506 | $ | 7,252 | $ | 30,679 | $ | 23,527 | |||||||
Increase in liability for future policy benefits | 5,481 | 14,091 | 19,341 | 42,645 | |||||||||||
Amortization of deferred policy acquisition costs | 2,156 | 1,876 | 5,524 | 5,716 | |||||||||||
Other underwriting expenses | 2,444 | 4,527 | 9,452 | 14,630 | |||||||||||
Interest on policyholders' accounts | 4,587 | 4,983 | 13,982 | 15,368 | |||||||||||
Total benefits, losses and expenses | $ | 25,174 | $ | 32,729 | $ | 78,978 | $ | 101,886 | |||||||
Income from discontinued operations, before income taxes | $ | 1,880 | $ | 1,140 | $ | 8,349 | $ | 1,241 |
Continuing Operations | Discontinued Operations | ||||||||||||||||||||||||||||||||||||
Property & Casualty Insurance | Life Insurance | Total | Property & Casualty Insurance | ||||||||||||||||||||||||||||||||||
Percent | Percent | Percent | Percent | ||||||||||||||||||||||||||||||||||
(In Thousands, Except Ratios) | of Total | of Total | of Total | (In Thousands, Except Ratios) | of Total | ||||||||||||||||||||||||||||||||
Fixed maturities (1) | Fixed maturities (1) | ||||||||||||||||||||||||||||||||||||
Held-to-maturity | $ | 150 | — | % | $ | 38 | — | % | $ | 188 | — | % | |||||||||||||||||||||||||
Available-for-sale | 1,498,662 | 81.5 | 1,426,991 | 96.8 | 2,925,653 | 88.3 | Available-for-sale | $ | 1,696,166 | 83.5 | % | ||||||||||||||||||||||||||
Trading securities | 13,673 | 0.7 | — | — | 13,673 | 0.4 | Trading securities | 11,223 | 0.5 | ||||||||||||||||||||||||||||
Equity securities | Equity securities | 207,626 | 10.2 | ||||||||||||||||||||||||||||||||||
Available-for-sale | 269,341 | 14.7 | 22,616 | 1.5 | 291,957 | 8.8 | |||||||||||||||||||||||||||||||
Trading securities | 6,330 | 0.4 | — | — | 6,330 | 0.2 | |||||||||||||||||||||||||||||||
Mortgage loans | — | — | 3,504 | 0.2 | 3,504 | 0.1 | Mortgage loans | 47,609 | 2.3 | ||||||||||||||||||||||||||||
Policy loans | — | — | 5,770 | 0.4 | 5,770 | 0.2 | |||||||||||||||||||||||||||||||
Other long-term investments | 49,966 | 2.7 | 16,299 | 1.1 | 66,265 | 2.0 | Other long-term investments | 68,941 | 3.5 | ||||||||||||||||||||||||||||
Short-term investments | 175 | — | — | — | 175 | — | Short-term investments | 175 | — | ||||||||||||||||||||||||||||
Total | $ | 1,838,297 | 100.0 | % | $ | 1,475,218 | 100.0 | % | $ | 3,313,515 | 100.0 | % | Total | $ | 2,031,740 | 100.0 | % |
(In Thousands, Except Ratios) | June 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||
Rating | Carrying Value | % of Total | Carrying Value | % of Total | |||||||||||||||||||||||||||||||
AAA | $ | 658,389 | 38.6 | % | $ | 721,446 | 41.6 | % | |||||||||||||||||||||||||||
AA | 660,048 | 38.6 | 664,238 | 38.3 | |||||||||||||||||||||||||||||||
A | 197,943 | 11.6 | 179,553 | 10.3 | |||||||||||||||||||||||||||||||
Baa/BBB | 178,820 | 10.5 | 157,350 | 9.1 | |||||||||||||||||||||||||||||||
Other/Not Rated | 12,189 | 0.7 | 12,276 | 0.7 | |||||||||||||||||||||||||||||||
$ | 1,707,389 | 100.0 | % | $ | 1,734,863 | 100.0 | % |
(In Thousands, Except Ratios) | September 30, 2017 | December 31, 2016 | |||||||||||
Rating | Carrying Value | % of Total | Carrying Value | % of Total | |||||||||
AAA | $ | 867,490 | 29.5 | % | $ | 782,329 | 26.9 | % | |||||
AA | 848,295 | 28.8 | 857,946 | 29.4 | |||||||||
A | 616,366 | 21.0 | 651,696 | 22.4 | |||||||||
Baa/BBB | 551,478 | 18.8 | 554,475 | 19.0 | |||||||||
Other/Not Rated | 55,885 | 1.9 | 66,268 | 2.3 | |||||||||
$ | 2,939,514 | 100.0 | % | $ | 2,912,714 | 100.0 | % |
Cash Flow Summary | Six Months Ended June 30, | ||||||||||||||||
(In Thousands) | 2020 | 2019 | |||||||||||||||
Cash provided by (used in) | |||||||||||||||||
Operating activities | $ | 4,232 | $ | 36,276 | |||||||||||||
Investing activities | 41,127 | 62,600 | |||||||||||||||
Financing activities | (19,819) | (14,546) | |||||||||||||||
Net increase in cash and cash equivalents | $ | 25,540 | $ | 84,330 |
Cash Flow Summary | Nine Months Ended September 30, | ||||||
(In Thousands) | 2017 | 2016 | |||||
Cash provided by (used in) | |||||||
Operating activities | $ | 116,296 | $ | 128,069 | |||
Investing activities | (4,361 | ) | (20,024 | ) | |||
Financing activities | (93,427 | ) | (73,550 | ) | |||
Net increase in cash and cash equivalents | $ | 18,508 | $ | 34,495 |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||
(In Thousands) | 2017 | 2016 | 2017 | 2016 | (In Thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||
ISO catastrophes | $ | 25,628 | $ | 10,517 | $ | 62,170 | $ | 49,686 | ISO catastrophes | $ | 51,090 | $ | 19,549 | $ | 66,211 | $ | 23,095 | |||||||||||||||||||||||||||||||||
Non-ISO catastrophes (1) | 5,077 | 2,014 | 6,596 | 2,711 | Non-ISO catastrophes (1) | (456) | 2,456 | (311) | 2,541 | |||||||||||||||||||||||||||||||||||||||||
Total catastrophes | $ | 30,705 | $ | 12,531 | $ | 68,766 | $ | 52,397 | Total catastrophes | $ | 50,634 | $ | 22,005 | $ | 65,900 | $ | 25,636 |
Total Number of Shares | Maximum Number of | |||||||||||
Total | Purchased as a Part of | Shares that may yet be | ||||||||||
Number of | Average Price | Publicly Announced | Purchased Under the | |||||||||
Period | Shares Purchased | Paid per Share | Plans or Programs | Plans or Programs(1) | ||||||||
7/1/2017 - 7/31/2017 | 4,904 | $ | 43.00 | 4,904 | 2,436,959 | |||||||
8/1/2017 - 8/31/2017 | 127,387 | 42.41 | 127,387 | 2,309,572 | ||||||||
9/1/2017 - 9/30/2017 | 73,000 | 40.92 | 73,000 | 2,236,572 | ||||||||
Total | 205,291 | $ | 41.89 | 205,291 |
Total Number of Shares | Maximum Number of | ||||||||||||||||||||||
Total | Purchased as a Part of | Shares that may yet be | |||||||||||||||||||||
Number of | Average Price | Publicly Announced | Purchased Under the | ||||||||||||||||||||
Period | Shares Purchased | Paid per Share | Plans or Programs | Plans or Programs(1) | |||||||||||||||||||
4/1/2020 - 4/30/2020 | — | $ | — | — | 1,786,977 | ||||||||||||||||||
5/1/2020 - 5/31/2020 | — | — | — | 1,786,977 | |||||||||||||||||||
6/1/2020 - 6/30/2020 | — | — | — | 1,786,977 | |||||||||||||||||||
Total | — | $ | — | — | 1,786,977 |
UNITED FIRE GROUP, INC. | ||||||||
(Registrant) | ||||||||
/s/ Randy A. Ramlo | /s/ Dawn M. Jaffray | |||||||
Randy A. Ramlo | Dawn M. Jaffray | |||||||
President, Chief Executive Officer, Director and Principal Executive Officer | ||||||||
Principal Accounting Officer | ||||||||
August 5, 2020 | ||||||||
(Date) | (Date) |