Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 18, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-33067 | |
Entity Registrant Name | SELECTIVE INSURANCE GROUP, INC | |
Entity Incorporation, State or Country Code | NJ | |
Entity Tax Identification Number | 22-2168890 | |
Entity Address, Address Line One | 40 Wantage Avenue | |
Entity Address, City or Town | Branchville | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07890 | |
City Area Code | 973 | |
Local Phone Number | 948-3000 | |
Title of 12(b) Security | Common Stock, par value $2 per share | |
Trading Symbol | SIGI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock , Shares Outstanding | 59,401,565 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000230557 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Fixed income securities, held-to-maturity – at carrying value (fair value: $28,356 – 2019; $38,317 – 2018) | $ 26,925 | $ 37,110 |
Fixed income securities, available-for-sale – at fair value (amortized cost: $5,706,656 – 2019; $5,270,798 – 2018) | 5,930,237 | 5,273,100 |
Equity securities – at fair value (cost: $77,779 – 2019; $138,144 – 2018) | 79,213 | 147,639 |
Short-term investments (at cost which approximates fair value) | 326,121 | 323,864 |
Other investments | 189,243 | 178,938 |
Total investments (Note 4 and 6) | 6,551,739 | 5,960,651 |
Cash | 516 | 505 |
Restricted cash | 9,647 | 16,414 |
Interest and dividends due or accrued | 42,975 | 41,620 |
Premiums receivable, net of allowance for uncollectible accounts of: $7,800 – 2019; $9,400 – 2018 | 860,480 | 770,518 |
Reinsurance recoverable, net of allowance for uncollectible accounts of: $4,400 – 2019; $4,500 – 2018 | 575,984 | 549,172 |
Prepaid reinsurance premiums | 173,557 | 157,723 |
Deferred federal income tax | 5,509 | 53,540 |
Property and equipment – at cost, net of accumulated depreciation and amortization of: $223,518 – 2019; $211,657 – 2018 | 76,423 | 65,248 |
Deferred policy acquisition costs | 279,239 | 252,612 |
Goodwill | 7,849 | 7,849 |
Other assets | 135,488 | 76,877 |
Total assets | 8,719,406 | 7,952,729 |
Liabilities And Stockholders' Equity | ||
Reserve for loss and loss expense (Note 8) | 4,055,631 | 3,893,868 |
Unearned premiums | 1,570,226 | 1,431,932 |
Long-term Debt | 550,669 | |
Long-term Debt | 439,540 | |
Current federal income tax | 2,656 | 1,302 |
Accrued salaries and benefits | 100,445 | 116,706 |
Other liabilities | 302,403 | 277,579 |
Total liabilities | 6,582,030 | 6,160,927 |
Stockholders' Equity: | ||
Preferred stock of $0 par value per share: Authorized shares: 5,000,000; no shares issued or outstanding | 0 | 0 |
Common stock of $2 par value per share: Authorized shares: 360,000,000; Issued: 103,421,301 – 2019; 102,848,394 – 2018 | 206,843 | 205,697 |
Additional paid-in capital | 412,347 | 390,315 |
Retained earnings | 2,012,499 | 1,858,414 |
Accumulated other comprehensive income (loss) (Note 11) | 98,426 | (77,956) |
Treasury stock – at cost (shares: 44,021,732 – 2019; 43,899,840 – 2018) | (592,739) | (584,668) |
Total stockholders' equity | 2,137,376 | 1,791,802 |
Commitments and contingencies | ||
Total liabilities and stockholders' equity | $ 8,719,406 | $ 7,952,729 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fixed income securities, held-to-maturity, fair value | $ 28,356 | $ 38,317 |
Fixed income securities, available-for-sale, amortized cost | 5,706,656 | 5,270,798 |
Equity securities, cost | 77,779 | 138,144 |
Premiums receivable, allowance for uncollectible accounts | 7,800 | 9,400 |
Reinsurance recoverable, allowance for uncollectible accounts | 4,400 | 4,500 |
Property and equipment - at cost, accumulated depreciation and amortization | $ 223,518 | $ 211,657 |
Preferred stock, par value per share | $ 0 | $ 0 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value per share | $ 2 | $ 2 |
Common stock, shares authorized | 360,000,000 | 360,000,000 |
Common stock, shares issued | 103,421,301 | 102,848,394 |
Treasury stock - at cost, shares | 44,021,732 | 43,899,840 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues: | ||||
Net premiums earned | $ 653,620 | $ 614,277 | $ 1,928,812 | $ 1,810,941 |
Net investment income earned | 55,826 | 52,443 | 164,949 | 141,227 |
Net realized and unrealized (losses) gains: | ||||
Net realized investment gains (losses) on disposals | 20,425 | (751) | 26,752 | 4,034 |
Unrealized losses on equity securities | (20,317) | (2,610) | (8,091) | (15,563) |
Other-than-temporary impairments | (2,291) | (1,426) | (3,366) | (5,459) |
Total net realized and unrealized (losses) gains | (2,183) | (4,787) | 15,295 | (16,988) |
Other income | 3,162 | 2,538 | 8,535 | 7,896 |
Total revenues | 710,425 | 664,471 | 2,117,591 | 1,943,076 |
Expenses: | ||||
Loss and loss expense incurred | 398,675 | 379,199 | 1,166,238 | 1,130,468 |
Amortization of deferred policy acquisition costs | 136,572 | 124,511 | 399,647 | 368,265 |
Other insurance expenses | 90,234 | 80,108 | 261,975 | 244,342 |
Interest expense | 7,397 | 6,073 | 26,289 | 18,350 |
Corporate expenses | 6,369 | 7,450 | 28,345 | 22,065 |
Total expenses | 639,247 | 597,341 | 1,882,494 | 1,783,490 |
Income before federal income tax | 71,178 | 67,130 | 235,097 | 159,586 |
Federal income tax expense: | ||||
Current | 13,805 | 10,314 | 44,344 | 23,529 |
Deferred | 1,223 | 1,381 | 989 | 2,878 |
Total federal income tax expense | 15,028 | 11,695 | 45,333 | 26,407 |
Net income | $ 56,150 | $ 55,435 | $ 189,764 | $ 133,179 |
Earnings per share: | ||||
Basic net income | $ 0.94 | $ 0.94 | $ 3.20 | $ 2.26 |
Diluted net income | $ 0.93 | $ 0.93 | $ 3.16 | $ 2.23 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net income | $ 56,150 | $ 55,435 | $ 189,764 | $ 133,179 |
Unrealized holding gains (losses) arising during period | 27,168 | (17,036) | 174,483 | (103,389) |
Amounts reclassified into net income: Held-to-maturity securities | (2) | (6) | (26) | (22) |
Amounts reclassified into net income: Realized losses on disposals and OTTI of available-for-sale securities | 2,229 | 8,563 | 351 | 14,424 |
Total unrealized gains (losses) on investment securities | 29,395 | (8,479) | 174,808 | (88,987) |
Amount reclassified into net income: Net actuarial loss | 525 | 420 | 1,574 | 1,260 |
Total defined benefit pension and post-retirement plans | 525 | 420 | 1,574 | 1,260 |
Other comprehensive income (loss) | 29,920 | (8,059) | 176,382 | (87,727) |
Comprehensive income | $ 86,070 | $ 47,376 | $ 366,146 | $ 45,452 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional paid-in capital [Member] | Retained Earnings [Member] | Accumulated other comprehensive income (loss) [Member] | Treasury stock [Member] |
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2016-01 [Member] | $ 30,726 | $ (30,726) | ||||
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2018-02 [Member] | (5,707) | 5,707 | ||||
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2016-02 [Member] | 0 | |||||
Balance at beginning of year, as adjusted | 1,723,632 | (4,849) | ||||
Beginning of year at Dec. 31, 2017 | $ 204,569 | $ 367,717 | 1,698,613 | 20,170 | $ (578,112) | |
Dividend reinvestment plan | 35 | 1,013 | ||||
Stock purchase and compensation plans | 969 | 16,721 | ||||
Net income | $ 133,179 | 133,179 | ||||
Dividends to stockholders | (32,204) | |||||
Other comprehensive income (loss) | (87,727) | (87,727) | ||||
Acquisition of treasury stock | (6,423) | |||||
End of period at Sep. 30, 2018 | $ 1,738,520 | 205,573 | 385,451 | 1,824,607 | (92,576) | (584,535) |
Dividends declared per share to stockholders | $ 0.54 | |||||
Common stock, shares outstanding, beginning of period at Dec. 31, 2017 | 58,495,122 | |||||
Dividend reinvestment plan, shares | 17,683 | |||||
Stock purchase and compensation plan, shares | 484,491 | |||||
Acquisition of treasury stock, shares | (108,311) | |||||
Common stock, shares outstanding, end of period at Sep. 30, 2018 | 58,888,985 | |||||
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2016-01 [Member] | 0 | 0 | ||||
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2018-02 [Member] | 0 | 0 | ||||
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2016-02 [Member] | 0 | |||||
Balance at beginning of year, as adjusted | 1,779,928 | (84,517) | ||||
Beginning of year at Jun. 30, 2018 | 205,460 | 381,641 | 1,779,928 | (84,517) | (584,357) | |
Dividend reinvestment plan | 10 | 327 | ||||
Stock purchase and compensation plans | 103 | 3,483 | ||||
Net income | $ 55,435 | 55,435 | ||||
Dividends to stockholders | (10,756) | |||||
Other comprehensive income (loss) | (8,059) | (8,059) | ||||
Acquisition of treasury stock | (178) | |||||
End of period at Sep. 30, 2018 | $ 1,738,520 | 205,573 | 385,451 | 1,824,607 | (92,576) | (584,535) |
Dividends declared per share to stockholders | $ 0.18 | |||||
Common stock, shares outstanding, beginning of period at Jun. 30, 2018 | 58,835,052 | |||||
Dividend reinvestment plan, shares | 5,310 | |||||
Stock purchase and compensation plan, shares | 51,482 | |||||
Acquisition of treasury stock, shares | (2,859) | |||||
Common stock, shares outstanding, end of period at Sep. 30, 2018 | 58,888,985 | |||||
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2016-01 [Member] | 0 | 0 | ||||
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2018-02 [Member] | 0 | 0 | ||||
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2016-02 [Member] | 342 | |||||
Balance at beginning of year, as adjusted | 1,858,756 | (77,956) | ||||
Beginning of year at Dec. 31, 2018 | $ 1,791,802 | 205,697 | 390,315 | 1,858,414 | (77,956) | (584,668) |
Dividend reinvestment plan | 31 | 1,095 | ||||
Stock purchase and compensation plans | 1,115 | 20,937 | ||||
Net income | 189,764 | 189,764 | ||||
Dividends to stockholders | (36,021) | |||||
Other comprehensive income (loss) | 176,382 | 176,382 | ||||
Acquisition of treasury stock | (8,071) | |||||
End of period at Sep. 30, 2019 | $ 2,137,376 | 206,843 | 412,347 | 2,012,499 | 98,426 | (592,739) |
Dividends declared per share to stockholders | $ 0.60 | |||||
Common stock, shares outstanding, beginning of period at Dec. 31, 2018 | 58,948,554 | |||||
Dividend reinvestment plan, shares | 15,650 | |||||
Stock purchase and compensation plan, shares | 557,257 | |||||
Acquisition of treasury stock, shares | (121,892) | |||||
Common stock, shares outstanding, end of period at Sep. 30, 2019 | 59,399,569 | |||||
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2016-01 [Member] | 0 | 0 | ||||
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2018-02 [Member] | 0 | 0 | ||||
Balance at beginning of year, as adjusted | 1,968,374 | 68,506 | ||||
Beginning of year at Jun. 30, 2019 | 206,665 | 407,382 | 1,968,374 | 68,506 | (591,383) | |
Dividend reinvestment plan | 9 | 366 | ||||
Stock purchase and compensation plans | 169 | 4,599 | ||||
Net income | $ 56,150 | 56,150 | ||||
Dividends to stockholders | (12,025) | |||||
Other comprehensive income (loss) | 29,920 | 29,920 | ||||
Acquisition of treasury stock | (1,356) | |||||
End of period at Sep. 30, 2019 | $ 2,137,376 | $ 206,843 | $ 412,347 | 2,012,499 | $ 98,426 | $ (592,739) |
Dividends declared per share to stockholders | $ 0.20 | |||||
Common stock, shares outstanding, beginning of period at Jun. 30, 2019 | 59,328,108 | |||||
Dividend reinvestment plan, shares | 4,738 | |||||
Stock purchase and compensation plan, shares | 83,979 | |||||
Acquisition of treasury stock, shares | (17,256) | |||||
Common stock, shares outstanding, end of period at Sep. 30, 2019 | 59,399,569 | |||||
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2016-02 [Member] | $ 0 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | Sep. 30, 2019 | Sep. 30, 2018 |
Preferred stock, par value per share | $ 0 | $ 0 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Series A Preferred Stock [Member] | ||
Preferred stock, par value per share | $ 0 | $ 0 |
Preferred stock, shares authorized | 300,000 | 300,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating Activities | ||
Net income | $ 189,764 | $ 133,179 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 42,346 | 34,961 |
Stock-based compensation expense | 15,857 | 12,150 |
Undistributed gains of equity method investments | (8,832) | (4,243) |
Distributions in excess of current year income of equity method investments | 2,267 | 3,210 |
(Gain) loss on disposal of fixed assets | (21) | 62 |
Net realized and unrealized (gains) losses | (15,295) | 16,988 |
Changes in assets and liabilities: | ||
Increase in reserve for loss and loss expense, net of reinsurance recoverable | 134,951 | 144,920 |
Increase in unearned premiums, net of prepaid reinsurance | 122,460 | 120,535 |
Decrease in net federal income taxes | 2,408 | 18,339 |
Increase in premiums receivable | (89,962) | (79,894) |
Increase in deferred policy acquisition costs | (26,627) | (22,978) |
(Increase) decrease in interest and dividends due or accrued | (1,460) | 72 |
Decrease in accrued salaries and benefits | (16,261) | (36,498) |
Increase in other assets | (35,810) | (13,881) |
Increase (decrease) in other liabilities | 414 | (34,437) |
Net Cash Provided by Operating Activities | 316,199 | 292,485 |
Investing Activities | ||
Purchase of fixed income securities, held-to-maturity | 0 | (7,150) |
Purchase of fixed income securities, available-for-sale | (1,330,827) | (1,974,253) |
Purchase of equity securities | (40,233) | (57,834) |
Purchase of other investments | (41,248) | (47,238) |
Purchase of short-term investments | (4,108,414) | (2,711,360) |
Sale of fixed income securities, available-for-sale | 461,825 | 1,382,677 |
Sale of short-term investments | 4,106,643 | 2,572,399 |
Redemption and maturities of fixed income securities, held-to-maturity | 10,062 | 3,923 |
Redemption and maturities of fixed income securities, available-for-sale | 413,220 | 456,037 |
Sale of equity securities | 125,302 | 79,676 |
Sale of other investments | 18,016 | 3,497 |
Distributions from other investments | 19,054 | 23,420 |
Purchase of property and equipment | (24,424) | (11,150) |
Fixed asset disposals | 35 | 0 |
Net Cash (Used in) Investing Activities | (390,989) | (287,356) |
Financing Activities | ||
Dividends to stockholders | (34,440) | (30,694) |
Acquisition of treasury stock | (8,071) | (6,423) |
Net proceeds from stock purchase and compensation plans | 5,599 | 5,001 |
Proceeds from borrowings | 355,757 | 130,000 |
Repayments of borrowings | (250,000) | (130,000) |
Repayments of finance lease obligations | (811) | (4,891) |
Net Cash Provided by (Used in) Financing Activities | 68,034 | (37,007) |
Cash and Restricted Cash, Period Increase (Decrease) | (6,756) | (31,878) |
Cash and restricted cash, beginning of year | 16,919 | 44,710 |
Cash and restricted cash, end of period | $ 10,163 | $ 12,832 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Basis of Presentation And Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation As used herein, the "Company,” “we,” “us,” or “our” refers to Selective Insurance Group, Inc. (the "Parent"), and its subsidiaries, except as expressly indicated or unless the context otherwise requires. Our interim unaudited consolidated financial statements (“Financial Statements”) have been prepared by us in conformity with U.S. generally accepted accounting principles (“GAAP”) and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The preparation of the Financial Statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported financial statement balances, as well as the disclosure of contingent assets and liabilities. Actual results could differ from those estimates. All significant intercompany accounts and transactions between the Parent and its subsidiaries are eliminated in consolidation. Our Financial Statements reflect all adjustments that, in our opinion, are normal, recurring, and necessary for a fair presentation of our results of operations and financial condition. Our Financial Statements cover the third quarters ended September 30, 2019 (“ Third Quarter 2019 ”) and September 30, 2018 (“ Third Quarter 2018 ”) and the nine-month periods ended September 30, 2019 (“Nine Months 2019”) and September 30, 2018 (“Nine Months 2018”). These Financial Statements do not include all of the information and disclosures required by GAAP and the SEC for audited annual financial statements. Additionally, results of operations for any interim period are not necessarily indicative of results for a full year. Consequently, our Financial Statements should be read in conjunction with the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2018 (“ 2018 Annual Report”) filed with the SEC. |
Accounting Pronouncements
Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Accounting Pronouncements | Adoption of Accounting Pronouncements The Financial Accounting Standards Board ("FASB") issued new leasing guidance through ASU 2016-02, Leases , which was issued in February 2016, as well as additional implementation guidance that was issued in 2018 and 2019 (collectively referred to as "ASU 2016-02"). ASU 2016-02 requires all lessees to recognize assets and liabilities on their balance sheets for the rights and obligations created by leases with terms longer than 12 months. For leases with a term of 12 months or less, an accounting policy election is allowed to recognize lease expense on a straight-line basis over the lease term. ASU 2016-02 allows for certain practical expedients, accounting policy elections, and a transition method election. We adopted practical expedients related to reassessing: (i) whether our existing contracts are, or contain, leases; (ii) lease classification for existing leases; and (iii) initial direct costs for existing leases. Additionally, we adopted accounting policy elections to: (i) aggregate lease and non-lease components of a contract into a single lease component; and (ii) expense short-term leases on a straight-line basis over the lease term. We adopted ASU 2016-02 effective January 1, 2019. See Note 12. "Leases" in this Form 10-Q for additional information regarding our leases and the impact of this guidance on our financial condition and results of operations. In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting ("ASU 2018-07"). The amendments in ASU 2018-07 expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. We adopted ASU 2018-07 in the first quarter of 2019 and it did not have a material impact on our financial condition or results of operations. Pronouncements to be effective in the future In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses, as well as additional implementation guidance issued in 2018 and 2019 (collectively referred to as “ASU 2016-13”). ASU 2016-13 will change the way entities recognize impairment of financial assets by requiring immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets, including, among others, held-to-maturity ("HTM") debt securities, trade receivables, and reinsurance recoverables. ASU 2016-13 requires a valuation allowance to be calculated on financial assets, and that they be presented on the financial statements net of the valuation allowance. The valuation allowance is a measurement of expected losses that is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. This methodology is referred to as the current expected credit loss model. This ASU also made targeted changes to the impairment accounting model for available-for-sale ("AFS") debt securities. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those annual periods. We are currently evaluating the impact of this guidance on our financial condition and results of operations. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement: Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). ASU 2018-13 modifies the disclosure requirements for fair value measurements. The modifications removed the following disclosure requirements: (i) the amount of, and reasons for, transfers between Level 1 and Level 2 of the fair value hierarchy; (ii) the policy for timing of transfers between levels; and (iii) the valuation processes for Level 3 fair value measurements. This ASU added the following disclosure requirements: (i) the changes in unrealized gains and losses for the period included in other comprehensive income ("OCI") for recurring Level 3 fair value measurements held at the end of the reporting period; and (ii) the range and weighted average of significant observable inputs used to develop Level 3 fair value measurements. This update is effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. As the requirements of this literature are disclosure only, ASU 2018-13 will not impact our financial condition or results of operations. In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General: Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans (“ASU 2018-14”). ASU 2018-14 modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. These modifications include: (i) removing the requirement to disclose the amount in accumulated other comprehensive income ("AOCI") expected to be recognized as components of net periodic benefit cost over the next fiscal year; and (ii) adding the requirement to disclose an explanation of the reasons for significant gains or losses related to changes in the benefit obligation for the period. This update is effective for fiscal years ending after December 15, 2020, with early adoption permitted. As the requirements of this literature are disclosure only, ASU 2018-14 will not impact our financial condition or results of operations. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This update is effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. We are currently evaluating the impact of this guidance on our financial condition or results of operations. |
Statements of Cash Flows
Statements of Cash Flows | 9 Months Ended |
Sep. 30, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Statements of Cash Flows | Statements of Cash Flows Supplemental cash flow information was as follows: Nine Months ended September 30, ($ in thousands) 2019 2018 Cash paid during the period for: Interest $ 19,261 15,449 Federal income tax 42,000 7,193 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 1 6,062 — Operating cash flows from financing leases 12 — Financing cash flows from finance leases 811 4,891 Non-cash items: Corporate actions related to fixed income securities, AFS 2 29,771 32,757 Corporate actions related to equity securities 2 14,250 944 Assets acquired under finance lease arrangements 824 4,114 Assets acquired under operating lease arrangements 1 13,648 — Non-cash purchase of property and equipment 108 — 1 Upon adoption of ASU 2016-02, effective January 1, 2019, we are required to disclose cash paid for amounts included in the measurement of operating lease liabilities, as well as supplemental non-cash information on operating lease liabilities arising from obtaining operating lease assets. 2 Examples of such corporate actions include exchanges, non-cash acquisitions, and stock splits. The following table provides a reconciliation of cash and restricted cash reported within the Consolidated Balance Sheets that equate to the amount reported in the Consolidated Statements of Cash Flows: ($ in thousands) September 30, 2019 December 31, 2018 Cash $ 516 505 Restricted cash 9,647 16,414 Total cash and restricted cash shown in the Statements of Cash Flows $ 10,163 16,919 Amounts included in restricted cash represent cash received from the National Flood Insurance Program ("NFIP"), which is restricted to pay flood claims under the Write Your Own program. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2019 | |
Investments [Abstract] | |
Investments | Investments (a) Our HTM fixed income securities as of September 30, 2019 represented less than 1% of our total invested assets, down slightly compared to December 31, 2018 . The carry value and net unrealized/unrecognized gains were $26.9 million and $ 1.5 million , respectively, at September 30, 2019 , and $37.1 million and $ 1.3 million , respectively, at December 31, 2018 . Included in the net unrealized/unrecognized gains were gross unrealized/unrecognized losses of less than $ 0.1 million at September 30, 2019 and $ 0.2 million at December 31, 2018 . Unrecognized holding gains and losses of HTM securities are not reflected in the Financial Statements, as they represent fair value fluctuations from the date a security is designated as HTM through the date of the balance sheet. (b) Information regarding our AFS securities as of September 30, 2019 and December 31, 2018 was as follows: September 30, 2019 ($ in thousands) Cost/ Amortized Cost Unrealized Gains Unrealized Losses Fair Value AFS fixed income securities: U.S. government and government agencies $ 116,555 4,357 (12 ) 120,900 Foreign government 20,947 573 — 21,520 Obligations of states and political subdivisions 1,127,709 62,910 (4 ) 1,190,615 Corporate securities 1,762,981 78,345 (2,399 ) 1,838,927 Collateralized loan obligations and other asset-backed securities ("CLO and other ABS") 764,038 8,998 (4,653 ) 768,383 Commercial mortgage-backed securities ("CMBS") 524,441 31,435 (145 ) 555,731 Residential mortgage-backed securities (“RMBS”) 1,389,985 44,710 (534 ) 1,434,161 Total AFS fixed income securities $ 5,706,656 231,328 (7,747 ) 5,930,237 December 31, 2018 ($ in thousands) Cost/ Amortized Cost Unrealized Gains Unrealized Losses Fair Value AFS fixed income securities: U.S. government and government agencies $ 120,092 1,810 (592 ) 121,310 Foreign government 23,202 36 (107 ) 23,131 Obligations of states and political subdivisions 1,121,615 19,485 (2,631 ) 1,138,469 Corporate securities 1,639,852 5,521 (27,965 ) 1,617,408 CLO and other ABS 720,193 4,112 (6,943 ) 717,362 CMBS 527,409 3,417 (3,748 ) 527,078 RMBS 1,118,435 12,988 (3,081 ) 1,128,342 Total AFS fixed income securities $ 5,270,798 47,369 (45,067 ) 5,273,100 Unrealized gains and losses of AFS securities represent fair value fluctuations from the later of: (i) the date a security is designated as AFS; or (ii) the date that an other-than-temporary impairment ("OTTI") charge is recognized on an AFS security, through the date of the balance sheet. These unrealized gains and losses are recorded in AOCI on the Consolidated Balance Sheets. (c) The severity of impairment on AFS securities in an unrealized/unrecognized loss position averaged approximately 1% of amortized cost at September 30, 2019 and approximately 2% at December 31, 2018 . Quantitative information regarding these losses is provided below. September 30, 2019 Less than 12 months 12 months or longer Total ($ in thousands) Fair Value Unrealized Losses 1 Fair Value Unrealized Losses 1 Fair Value Unrealized 1 AFS fixed income securities: U.S. government and government agencies $ 5,014 (11 ) 498 (1 ) 5,512 (12 ) Obligations of states and political subdivisions 437 (4 ) — — 437 (4 ) Corporate securities 89,919 (1,862 ) 15,867 (537 ) 105,786 (2,399 ) CLO and other ABS 176,999 (2,458 ) 180,898 (2,195 ) 357,897 (4,653 ) CMBS 59,857 (126 ) 7,665 (19 ) 67,522 (145 ) RMBS 84,408 (503 ) 9,513 (31 ) 93,921 (534 ) Total AFS fixed income securities $ 416,634 (4,964 ) 214,441 (2,783 ) 631,075 (7,747 ) December 31, 2018 Less than 12 months 12 months or longer Total ($ in thousands) Fair Value Unrealized Losses 1 Fair Value Unrealized Losses 1 Fair Value Unrealized 1 AFS fixed income securities: U.S. government and government agencies $ 6,693 (174 ) 23,163 (418 ) 29,856 (592 ) Foreign government 12,208 (93 ) 1,482 (14 ) 13,690 (107 ) Obligations of states and political subdivisions 196,798 (2,074 ) 42,821 (557 ) 239,619 (2,631 ) Corporate securities 1,041,952 (23,649 ) 78,953 (4,316 ) 1,120,905 (27,965 ) CLO and other ABS 516,106 (6,750 ) 16,800 (193 ) 532,906 (6,943 ) CMBS 229,338 (2,548 ) 66,294 (1,200 ) 295,632 (3,748 ) RMBS 139,338 (1,660 ) 45,661 (1,421 ) 184,999 (3,081 ) Total AFS fixed income securities $ 2,142,433 (36,948 ) 275,174 (8,119 ) 2,417,607 (45,067 ) 1 Gross unrealized losses include non-OTTI unrealized amounts and OTTI losses recognized in AOCI. The $37.3 million decrease in the unrealized loss position reflected: (i) lower interest rates, with an 87-basis point decrease in 2-year U.S. Treasury Note yields and a 102-basis point decrease in 10-year U.S. Treasury Note yields during Nine Months 2019; and (ii) tightening option adjusted corporate credit spreads, with a 38-basis point decrease in the Bloomberg Barclays U.S. Aggregate Corporate Bond Index during Nine Months 2019. We do not currently intend to sell any of the securities in the tables above, nor will we be required to sell any of these securities. Considering these factors, and in accordance with our review of these securities under our OTTI policy, as described in Note 2. “Summary of Significant Accounting Policies” within Item 8. “Financial Statements and Supplementary Data.” of our 2018 Annual Report, we have concluded that they are temporarily impaired as we believe: (i) they will mature at par value; (ii) they have not incurred a credit impairment; and (iii) future values of these securities will fluctuate with changes in interest rates. This conclusion reflects our current judgment as to the financial position and future prospects of the entity that issued the investment security and underlying collateral. (d) Fixed income securities at September 30, 2019 , by contractual maturity, are shown below. Mortgage-backed securities are included in the maturity tables using the estimated average life of each security. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations, with or without call or prepayment penalties. Listed below are the contractual maturities of fixed income securities at September 30, 2019 : AFS HTM ($ in thousands) Fair Value Carrying Value Fair Value Due in one year or less $ 310,387 4,754 4,773 Due after one year through five years 3,296,126 16,334 17,589 Due after five years through 10 years 2,191,633 5,837 5,994 Due after 10 years 132,091 — — Total fixed income securities $ 5,930,237 26,925 28,356 (e) The following table summarizes our other investment portfolio by strategy: Other Investments September 30, 2019 December 31, 2018 ($ in thousands) Carrying Value Remaining Commitment Maximum Exposure to Loss 1 Carrying Value Remaining Commitment Maximum Exposure to Loss 1 Alternative Investments Private equity $ 105,922 97,552 203,474 84,352 93,688 178,040 Private credit 37,710 109,797 147,507 41,682 81,453 123,135 Real assets 21,828 22,534 44,362 27,862 27,129 54,991 Total alternative investments 165,460 229,883 395,343 153,896 202,270 356,166 Other securities 23,783 — 23,783 25,042 — 25,042 Total other investments $ 189,243 229,883 419,126 178,938 202,270 381,208 1 The maximum exposure to loss includes both the carry value of these investments and the related remaining commitments. In addition, tax credits that have been previously recognized in Other securities are subject to the risk of recapture, which we do not consider significant. We are contractually committed to make additional investments up to the remaining commitments outlined above; however, we do not have a future obligation to fund losses or debts on behalf of these investments. We have not provided any non-contractual financial support at any time during 2019 or 2018 . The following table sets forth gross summarized financial information for our other investments portfolio, including the portion not owned by us. The majority of these investments are carried under the equity method of accounting. The last line of the table below reflects our share of the aggregate income or loss, which is the portion included in our Financial Statements. As the majority of these investments report results to us on a one quarter lag, the summarized financial statement information for the three-month period ended June 30 is included in our Third Quarter results. This information is as follows: Income Statement Information Quarter ended September 30, Nine Months ended September 30, ($ in millions) 2019 2018 2019 2018 Net investment (loss) income $ (14.0 ) 11.9 10.1 (29.9 ) Realized gains 121.1 124.8 370.4 1,348.3 Net change in unrealized appreciation (depreciation) 1,739.4 1,434.3 4,517.4 695.8 Net income $ 1,846.5 1,571.0 4,897.9 2,014.2 Insurance subsidiaries’ alternative investments income $ 5.2 7.1 13.0 10.6 (f) We have pledged certain AFS fixed income securities as collateral related to our relationships with the Federal Home Loan Bank of Indianapolis ("FHLBI") and the Federal Home Loan Bank of New York ("FHLBNY"). In addition, certain securities were on deposit with various state and regulatory agencies at September 30, 2019 to comply with insurance laws. We retain all rights regarding all securities pledged as collateral. The following table summarizes the market value of these securities at September 30, 2019 : ($ in millions) FHLBI Collateral FHLBNY Collateral State and Regulatory Deposits Total U.S. government and government agencies $ — — 22.9 22.9 Obligations of states and political subdivisions — — 3.9 3.9 Corporate securities — — 0.3 0.3 CMBS 7.3 19.6 — 26.9 RMBS 57.4 81.1 — 138.5 Total pledged as collateral $ 64.7 100.7 27.1 192.5 (g) We did not have exposure to any credit concentration risk of a single issuer greater than 10% of our stockholders' equity, other than certain U.S. government-backed investments, as of September 30, 2019 or December 31, 2018 . (h) The components of pre-tax net investment income earned were as follows: Quarter ended September 30, Nine Months ended September 30, ($ in thousands) 2019 2018 2019 2018 Fixed income securities $ 50,749 45,088 150,689 130,903 Equity securities 1,885 2,079 5,265 5,876 Short-term investments 1,410 867 5,213 2,001 Other investments 5,267 7,211 13,421 10,868 Investment expenses (3,485 ) (2,802 ) (9,639 ) (8,421 ) Net investment income earned $ 55,826 52,443 164,949 141,227 (i) OTTI charges were $2.3 million and $1.4 million in Third Quarter 2019 and Third Quarter 2018 , respectively, and $ 3.4 million and $ 5.5 million in Nine Months 2019 and Nine Months 2018, respectively. All of these charges were related to securities for which we had the intent to sell. For a discussion of our evaluation for OTTI, refer to Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2018 Annual Report. (j) Net realized and unrealized gains and losses (excluding OTTI charges) for Third Quarter 2019 and 2018 included the following: Quarter ended September 30, Nine Months ended September 30, ($ in thousands) 2019 2018 2019 2018 Net realized gains (losses) on the disposals of securities: Fixed income securities $ (1,141 ) (9,413 ) 2,063 (13,922 ) Equity securities 21,602 8,665 24,733 17,960 Short-term investments (36 ) 2 (21 ) 1 Other investments — (5 ) (23 ) (5 ) Net realized gains (losses) on the disposal of securities 20,425 (751 ) 26,752 4,034 OTTI charges (2,291 ) (1,426 ) (3,366 ) (5,459 ) Net realized gains (losses) 18,134 (2,177 ) 23,386 (1,425 ) Unrealized (losses) recognized in income on equity securities (20,317 ) (2,610 ) (8,091 ) (15,563 ) Total net realized and unrealized investment (losses) gains $ (2,183 ) (4,787 ) $ 15,295 (16,988 ) Unrealized (losses) recognized in income on equity securities, as reflected in the table above, include the following: Quarter ended September 30, Nine Months ended September 30, ($ in thousands) 2019 2018 2019 2018 Unrealized gains (losses) recognized in income on equity securities: On securities remaining in our portfolio at September 30, 2019 $ 1,109 5,476 1,805 4,199 On securities sold in each respective period (21,426 ) (8,086 ) (9,896 ) (19,762 ) Total unrealized (losses) recognized in income on equity securities $ (20,317 ) (2,610 ) $ (8,091 ) (15,563 ) The components of net realized gains on disposals of securities for the periods indicated were as follows: Quarter ended September 30, Nine Months ended September 30, ($ in thousands) 2019 2018 2019 2018 HTM fixed income securities Gains $ — — 1 2 Losses — — (15 ) — AFS fixed income securities Gains 1,078 462 5,565 5,056 Losses (2,219 ) (9,875 ) (3,488 ) (18,980 ) Equity securities Gains 21,630 10,584 24,868 20,209 Losses (28 ) (1,919 ) (135 ) (2,249 ) Short-term investments Gains 2 3 18 6 Losses (38 ) (1 ) (39 ) (5 ) Other investments Gains — — 7 — Losses — (5 ) (30 ) (5 ) Total net realized gains on disposals of securities $ 20,425 (751 ) 26,752 4,034 Realized gains and losses on the sale of investments are determined on the basis of the cost of the specific investments sold. Proceeds from the sales of AFS fixed income securities were $89.7 million and $444.4 million in Third Quarter 2019 and Third Quarter 2018 , respectively, and $ 461.8 million and $ 1,382.7 million in Nine Months 2019 and Nine Months 2018, respectively. Proceeds from the sales of equity securities were $95.2 million and $36.1 million in Third Quarter 2019 and Third Quarter 2018 , respectively, and $ 125.3 million and $ 79.7 million in Nine Months 2019 and Nine Months 2018, respectively. |
Indebtedness
Indebtedness | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Indebtedness | Indebtedness The table below provides a summary of our outstanding debt at September 30, 2019 and December 31, 2018: Outstanding Debt Issuance Date Maturity Date Interest Rate Original Amount 2019 Carry Value ($ in thousands) Debt Discount and Unamortized Issuance Costs September 30, 2019 December 31, 2018 Description Long term Issuance: Senior Notes 3/1/2019 3/1/2049 5.375 % $ 300,000 9,065 290,935 — Redemption: Senior Notes 2/8/2013 2/9/2043 5.875 % 185,000 — — 180,771 Other Outstanding: FHLBI 12/16/2016 12/16/2026 3.03 % 60,000 — 60,000 60,000 FHLBNY 8/15/2016 8/16/2021 1.56 % 25,000 — 25,000 25,000 FHLBNY 7/21/2016 7/21/2021 1.61 % 25,000 — 25,000 25,000 Senior Notes 11/3/2005 11/1/2035 6.70 % 100,000 889 99,111 99,069 Senior Notes 11/16/2004 11/15/2034 7.25 % 50,000 281 49,719 49,700 Finance lease obligations 1 904 — Total long-term debt 10,235 550,669 439,540 1 Concurrent with the adoption of ASU 2016-02 discussed in Note 2. "Adoption of Accounting Pronouncements," finance lease obligations are now captured in Long-term debt on our Consolidated Balance Sheets. Short-Term Debt Activity Short-term debt activity included the following in Nine Months 2019: • On March 7, 2019, Selective Insurance Company of America (“SICA”) borrowed short-term funds of $50 million from the FHLBNY at an interest rate of 2.64% . This borrowing was repaid on March 28, 2019. • On August 5, 2019, SICA borrowed short-term funds of $15 million from the FHLBNY at an interest rate of 2.29% . This borrowing was repaid on August 12, 2019. Long-Term Debt Activity In the first quarter of 2019, we issued $300 million of 5.375% Senior Notes due 2049 at a discount of $5.9 million which, when coupled with debt issuance costs of approximately $3.3 million , resulted in net proceeds from the offering of $290.8 million . The 5.375% Senior Notes pay interest on March 1 and September 1 of each year. The first interest payment was made on September 1, 2019. A portion of the proceeds from this debt issuance was used to fully redeem the $185 million aggregate principal amount of our 5.875% Senior Notes due 2043 , with the remaining $106 million being used for general corporate purposes. The 5.875% Senior Notes had pre-tax debt retirement costs of $4.2 million , or $3.3 million after tax, which was recorded in Interest expense on the Consolidated Statements of Income in the first quarter of 2019. For detailed information on our indebtedness, see Note 10. "Indebtedness" in Item 8. "Financial Statements and Supplementary Data." of our 2018 Annual Report. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The financial assets in our investment portfolio are primarily measured at fair value as disclosed on the Consolidated Balance Sheets. The following table presents the carrying amounts and estimated fair values of our financial liabilities as of September 30, 2019 and December 31, 2018 : September 30, 2019 December 31, 2018 ($ in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Financial Liabilities Long-term debt: 7.25% Senior Notes 49,909 65,770 49,907 57,032 6.70% Senior Notes 99,476 125,954 99,462 107,075 5.875% Senior Notes — — 185,000 177,230 5.375% Senior Notes 294,136 352,156 — — 1.61% borrowings from FHLBNY 25,000 24,838 25,000 24,218 1.56% borrowings from FHLBNY 25,000 24,808 25,000 24,162 3.03% borrowings from FHLBI 60,000 63,741 60,000 58,905 Subtotal long-term debt 553,521 657,267 444,369 448,622 Unamortized debt issuance costs (3,756 ) (4,829 ) Finance lease obligations 904 — Total long-term debt 550,669 439,540 For a discussion of our long-term debt activity in 2019, see Note 5. "Indebtedness" in this Form 10-Q, and for a discussion of the fair value hierarchy and techniques used to value our financial assets and liabilities, refer to Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2018 Annual Report. The following tables provide quantitative disclosures of our financial assets that were measured and recorded at fair value at September 30, 2019 and December 31, 2018 : September 30, 2019 Fair Value Measurements Using ($ in thousands) Assets Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) 1 Significant Other Observable Inputs (Level 2) 1 Significant Unobservable Inputs (Level 3) Description Measured on a recurring basis: AFS fixed income securities: U.S. government and government agencies $ 120,900 41,619 79,281 — Foreign government 21,520 — 21,520 — Obligations of states and political subdivisions 1,190,615 — 1,190,615 — Corporate securities 1,838,927 — 1,822,577 16,350 CLO and other ABS 768,383 — 748,504 19,879 CMBS 555,731 — 555,731 — RMBS 1,434,161 — 1,434,161 — Total AFS fixed income securities 5,930,237 41,619 5,852,389 36,229 Equity securities: Common stock 2 76,179 42,988 — — Preferred stock 3,034 3,034 — — Total equity securities 79,213 46,022 — — Short-term investments 326,121 319,599 6,522 — Total assets measured at fair value $ 6,335,571 407,240 5,858,911 36,229 December 31, 2018 Fair Value Measurements Using ($ in thousands) Assets Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) 1 Significant Other Observable Inputs (Level 2) 1 Significant Unobservable Inputs (Level 3) Description Measured on a recurring basis: AFS fixed income securities: U.S. government and government agencies $ 121,310 78,381 42,929 — Foreign government 23,131 — 23,131 — Obligations of states and political subdivisions 1,138,469 — 1,138,469 — Corporate securities 1,617,408 — 1,617,408 — CLO and other ABS 717,362 — 709,953 7,409 CMBS 527,078 — 527,078 — RMBS 1,128,342 — 1,128,342 — Total AFS fixed income securities 5,273,100 78,381 5,187,310 7,409 Equity securities: Common stock 2 144,727 107,397 — — Preferred stock 2,912 2,912 — — Total equity securities 147,639 110,309 — — Short-term investments 323,864 321,370 2,494 — Total assets measured at fair value $ 5,744,603 510,060 5,189,804 7,409 1 There were no transfers of securities between Level 1 and Level 2. 2 Investments amounting to $33.2 million at September 30, 2019 , and $37.3 million at December 31, 2018 , were measured at fair value using net asset value per share (or its practical expedient) and have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to total assets measured at fair value. The following table provides a summary of Level 3 changes in Nine Months 2019 : September 30, 2019 ($ in thousands) Corporate Securities CLO and Other ABS Total Fair value, December 31, 2018 — 7,409 7,409 Total net (losses) gains for the period included in: OCI (69 ) (14 ) (83 ) Net income — 244 244 Purchases — 18,404 18,404 Sales — — — Issuances — — — Settlements — (105 ) (105 ) Transfers into Level 3 16,419 13,603 30,022 Transfers out of Level 3 — (19,662 ) (19,662 ) Fair value, September 30, 2019 16,350 19,879 36,229 There were no material changes in the fair value of securities measured using Level 3 prices in Nine Months 2018 . The following tables provide quantitative information regarding our financial assets and liabilities that were disclosed at fair value at September 30, 2019 and December 31, 2018 : September 30, 2019 Fair Value Measurements Using ($ in thousands) Assets/ Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial Assets HTM: Obligations of states and political subdivisions $ 9,426 — 9,426 — Corporate securities 18,930 — 18,930 — Total HTM fixed income securities $ 28,356 — 28,356 — Financial Liabilities Long-term debt: 7.25% Senior Notes $ 65,770 — 65,770 — 6.70% Senior Notes 125,954 — 125,954 — 5.375% Senior Notes 352,156 — 352,156 — 1.61% borrowings from FHLBNY 24,838 — 24,838 — 1.56% borrowings from FHLBNY 24,808 — 24,808 — 3.03% borrowings from FHLBI 63,741 — 63,741 — Total long-term debt $ 657,267 — 657,267 — December 31, 2018 Fair Value Measurements Using ($ in thousands) Assets/ Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial Assets HTM: Obligations of states and political subdivisions $ 17,969 — 17,969 — Corporate securities 20,348 — 20,348 — Total HTM fixed income securities $ 38,317 — 38,317 — Financial Liabilities Long-term debt: 7.25% Senior Notes $ 57,032 — 57,032 — 6.70% Senior Notes 107,075 — 107,075 — 5.875% Senior Notes 177,230 177,230 — — 1.61% borrowings from FHLBNY 24,218 — 24,218 — 1.56% borrowings from FHLBNY 24,162 — 24,162 — 3.03% borrowings from FHLBI 58,905 — 58,905 — Total long-term debt $ 448,622 177,230 271,392 — |
Reinsurance
Reinsurance | 9 Months Ended |
Sep. 30, 2019 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | Reinsurance The following table contains a listing of direct, assumed, and ceded reinsurance amounts for premiums written, premiums earned, and loss and loss expenses incurred for the periods indicated. For more information concerning reinsurance, refer to Note 8. “Reinsurance” in Item 8. “Financial Statements and Supplementary Data.” of our 2018 Annual Report. Quarter ended September 30, Nine Months ended September 30, ($ in thousands) 2019 2018 2019 2018 Premiums written: Direct $ 785,680 752,834 $ 2,359,441 2,220,431 Assumed 6,882 7,084 18,770 19,891 Ceded (115,634 ) (108,250 ) (326,939 ) (308,846 ) Net $ 676,928 651,668 $ 2,051,272 1,931,476 Premiums earned: Direct $ 752,872 706,497 $ 2,221,257 2,086,953 Assumed 6,356 6,484 18,660 19,220 Ceded (105,608 ) (98,704 ) (311,105 ) (295,232 ) Net $ 653,620 614,277 $ 1,928,812 1,810,941 Loss and loss expenses incurred: Direct $ 437,618 477,427 $ 1,297,975 1,289,357 Assumed 4,362 6,529 13,975 16,897 Ceded (43,305 ) (104,757 ) (145,712 ) (175,786 ) Net $ 398,675 379,199 $ 1,166,238 1,130,468 Ceded premiums and losses related to our participation in the NFIP, under which 100% of our flood premiums, losses, and loss expenses are ceded to the NFIP, are as follows: Ceded to NFIP Quarter ended September 30, Nine Months ended September 30, ($ in thousands) 2019 2018 2019 2018 Ceded premiums written $ (74,864 ) (70,100 ) $ (206,451 ) (193,110 ) Ceded premiums earned (65,847 ) (61,448 ) (191,914 ) (180,582 ) Ceded loss and loss expenses incurred (27,459 ) (89,396 ) (62,208 ) (115,376 ) Excluding the impact of our participation in the NFIP, ceded loss and loss expenses incurred increased in Nine Months 2019 compared to the respective prior year, due to one significant fire loss in the second quarter of 2019, which added $17.4 million |
Reserve for Loss and Loss Expen
Reserve for Loss and Loss Expense | 9 Months Ended |
Sep. 30, 2019 | |
Insurance Loss Reserves [Abstract] | |
Reserve for Loss and Loss Expense | Reserve for Loss and Loss Expense The table below provides a roll forward of reserve for loss and loss expense balances: Nine Months ended September 30, ($ in thousands) 2019 2018 Gross reserve for loss and loss expense, at beginning of year $ 3,893,868 3,771,240 Less: reinsurance recoverable on unpaid loss and loss expense, at beginning of year 537,388 585,855 Net reserve for loss and loss expense, at beginning of year 3,356,480 3,185,385 Incurred loss and loss expense for claims occurring in the: Current year 1,200,878 1,148,032 Prior years (34,640 ) (17,564 ) Total incurred loss and loss expense 1,166,238 1,130,468 Paid loss and loss expense for claims occurring in the: Current year 384,436 369,036 Prior years 631,589 610,734 Total paid loss and loss expense 1,016,025 979,770 Net reserve for loss and loss expense, at end of period 3,506,693 3,336,083 Add: Reinsurance recoverable on unpaid loss and loss expense, at end of period 548,938 589,072 Gross reserve for loss and loss expense at end of period $ 4,055,631 3,925,155 Prior year reserve development in Nine Months 2019 of $34.6 million included $41.0 million of favorable casualty reserve development, partially offset by $6.4 million of unfavorable property reserve development. The favorable casualty reserve development included $33.0 million in our workers compensation line of business and $10.0 million in our general liability line of business, partially offset by $2.0 million of unfavorable casualty reserve development in our personal automobile line of business. Prior year reserve development in Nine Months 2018 of $17.6 million included $24.0 million of favorable casualty reserve development, partially offset by $6.4 million of unfavorable property reserve development. The favorable casualty reserve development included $53.0 million of development in our workers compensation line of business and $8.0 million in our general liability line of business, partially offset by $25.0 million of unfavorable casualty reserve development in our commercial automobile line of business and $12.0 million in our excess and surplus ("E&S") casualty lines. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The results of our four reportable segments are evaluated as follows: • Our Standard Commercial Lines, Standard Personal Lines, and E&S Lines are evaluated based on before and after-tax underwriting results (net premiums earned, incurred loss and loss expense, policyholder dividends, policy acquisition costs, and other underwriting expenses), return on equity ("ROE") contribution, and combined ratios. • Our Investments segment is primarily evaluated based on after-tax net investment income and its ROE contribution. Also included in Investment segment results are after-tax net realized and unrealized gains and losses, which are not included in non-GAAP operating income. In computing the results of each segment, we do not make adjustments for interest expense or corporate expenses. We do not maintain separate investment portfolios for the segments and therefore, do not allocate assets to the segments. The following summaries present revenues (net investment income and net realized and unrealized gains on investments in the case of the Investments segment) and pre-tax income for the individual segments: Revenue by Segment Quarter ended September 30, Nine Months ended September 30, ($ in thousands) 2019 2018 2019 2018 Standard Commercial Lines: Net premiums earned: Commercial automobile $ 141,182 124,862 408,706 365,197 Workers compensation 75,478 78,784 232,657 237,628 General liability 169,084 154,974 495,402 457,805 Commercial property 89,215 83,056 262,418 245,544 Businessowners’ policies 26,371 25,994 78,624 77,414 Bonds 8,990 8,778 26,861 25,247 Other 4,841 4,608 14,326 13,597 Miscellaneous income 2,782 2,228 7,544 6,936 Total Standard Commercial Lines revenue 517,943 483,284 1,526,538 1,429,368 Standard Personal Lines: Net premiums earned: Personal automobile 43,226 42,772 129,777 125,024 Homeowners 31,529 32,293 95,672 96,717 Other 1,983 2,092 5,709 5,349 Miscellaneous income 380 310 991 959 Total Standard Personal Lines revenue 77,118 77,467 232,149 228,049 E&S Lines: Net premiums earned: Casualty lines 47,171 42,179 136,455 120,098 Property lines 14,550 13,885 42,205 41,321 Miscellaneous income — — — 1 Total E&S Lines revenue 61,721 56,064 178,660 161,420 Investments: Net investment income 55,826 52,443 164,949 141,227 Net realized and unrealized investment (losses) gains (2,183 ) (4,787 ) 15,295 (16,988 ) Total Investments revenue 53,643 47,656 180,244 124,239 Total revenues $ 710,425 664,471 2,117,591 1,943,076 Income Before and After Federal Income Tax Quarter ended September 30, Nine Months ended September 30, ($ in thousands) 2019 2018 2019 2018 Standard Commercial Lines: Underwriting gain, before federal income tax $ 30,016 26,333 92,974 74,153 Underwriting gain, after federal income tax 23,713 20,803 73,450 58,581 Combined ratio 94.2 % 94.5 93.9 94.8 ROE contribution 4.5 4.9 5.0 4.5 Standard Personal Lines: Underwriting (loss) gain, before federal income tax $ (631 ) 3,158 7,074 6,457 Underwriting (loss) gain, after federal income tax (499 ) 2,495 5,588 5,101 Combined ratio 100.8 % 95.9 96.9 97.2 ROE contribution (0.1 ) 0.6 0.4 0.4 E&S Lines: Underwriting gain (loss), before federal income tax $ 1,916 3,506 9,439 (4,848 ) Underwriting gain (loss), after federal income tax 1,514 2,770 7,457 (3,830 ) Combined ratio 96.9 % 93.7 94.7 103.0 ROE contribution 0.3 0.6 0.5 (0.3 ) Investments: Net investment income $ 55,826 52,443 164,949 141,227 Net realized and unrealized investment (losses) gains (2,183 ) (4,787 ) 15,295 (16,988 ) Total investment segment income, before federal income tax 53,643 47,656 180,244 124,239 Tax on investment segment income 10,884 8,562 34,733 21,405 Total investment segment income, after federal income tax $ 42,759 39,094 145,511 102,834 ROE contribution of after-tax net investment income 8.6 10.0 9.1 9.0 Reconciliation of Segment Results to Income Before Federal Income Tax Quarter ended September 30, Nine Months ended September 30, ($ in thousands) 2019 2018 2019 2018 Underwriting gain (loss) Standard Commercial Lines $ 30,016 26,333 92,974 74,153 Standard Personal Lines (631 ) 3,158 7,074 6,457 E&S Lines 1,916 3,506 9,439 (4,848 ) Investment income 53,643 47,656 180,244 124,239 Total all segments 84,944 80,653 289,731 200,001 Interest expense (7,397 ) (6,073 ) (26,289 ) (18,350 ) Corporate expenses (6,369 ) (7,450 ) (28,345 ) (22,065 ) Income, before federal income tax $ 71,178 67,130 235,097 159,586 |
Retirement Plans
Retirement Plans | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Retirement Plans | Retirement Plans SICA's primary pension plan is the Retirement Income Plan for Selective Insurance Company of America (the “Pension Plan”). SICA also sponsors the Supplemental Excess Retirement Plan (the “Excess Plan”) and a life insurance benefit plan. All plans are closed to new entrants and benefits ceased accruing under the Pension Plan and the Excess Plan after March 31, 2016 . For more information concerning SICA's retirement plans, refer to Note 14. “Retirement Plans” in Item 8. “Financial Statements and Supplementary Data.” of our 2018 Annual Report. The following tables provide information regarding the Pension Plan: Pension Plan Pension Plan Quarter ended September 30, Nine Months ended September 30, ($ in thousands) 2019 2018 2019 2018 Net Periodic Pension Cost (Benefit): Interest cost $ 3,376 3,095 10,129 9,285 Expected return on plan assets (5,278 ) (5,681 ) (15,835 ) (17,044 ) Amortization of unrecognized net actuarial loss 644 494 1,931 1,481 Total net periodic pension cost (benefit) 1 $ (1,258 ) (2,092 ) (3,775 ) (6,278 ) 1 The components of net periodic pension cost (benefit) are included within "Loss and loss expense incurred" and "Other insurance expenses" on the Consolidated Statements of Income. Pension Plan Nine Months ended September 30, 2019 2018 Weighted-Average Expense Assumptions: Discount rate 4.46 % 3.78 % Effective interest rate for calculation of interest cost 4.12 3.46 Expected return on plan assets 6.50 6.36 |
Comprehensive Income
Comprehensive Income | 9 Months Ended |
Sep. 30, 2019 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Comprehensive Income | Comprehensive Income The components of comprehensive income, both gross and net of tax, for Third Quarter and Nine Months 2019 and Third Quarter and Nine Months 2018 were as follows: Third Quarter 2019 ($ in thousands) Gross Tax Net Net income $ 71,178 15,028 56,150 Components of OCI: Unrealized gains on investment securities : Unrealized holding gains during the period 34,392 7,224 27,168 Amounts reclassified into net income: HTM securities (3 ) (1 ) (2 ) Realized losses on disposals and OTTI of AFS securities 2,821 592 2,229 Total unrealized gains on investment securities 37,210 7,815 29,395 Defined benefit pension and post-retirement plans: Amounts reclassified into net income: Net actuarial loss 665 140 525 Total defined benefit pension and post-retirement plans 665 140 525 Other comprehensive income 37,875 7,955 29,920 Comprehensive income $ 109,053 22,983 86,070 Third Quarter 2018 ($ in thousands) Gross Tax Net Net income $ 67,130 11,695 55,435 Components of other comprehensive loss: Unrealized losses on investment securities : Unrealized holding losses during the period (21,565 ) (4,529 ) (17,036 ) Amounts reclassified into net income: HTM securities (8 ) (2 ) (6 ) Realized losses on disposals and OTTI of AFS securities 10,839 2,276 8,563 Total unrealized losses on investment securities (10,734 ) (2,255 ) (8,479 ) Defined benefit pension and post-retirement plans: Amounts reclassified into net income: Net actuarial loss 532 112 420 Total defined benefit pension and post-retirement plans 532 112 420 Other comprehensive loss (10,202 ) (2,143 ) (8,059 ) Comprehensive income $ 56,928 9,552 47,376 Nine Months 2019 ($ in thousands) Gross Tax Net Net income $ 235,097 45,333 189,764 Components of OCI: Unrealized gains on investment securities: Unrealized holding gains during the period 220,864 46,381 174,483 Amounts reclassified into net income: HTM securities (33 ) (7 ) (26 ) Realized losses on disposals and OTTI of AFS securities 444 93 351 Total unrealized gains on investment securities 221,275 46,467 174,808 Defined benefit pension and post-retirement plans: Amounts reclassified into net income: Net actuarial loss 1,993 419 1,574 Total defined benefit pension and post-retirement plans 1,993 419 1,574 Other comprehensive income 223,268 46,886 176,382 Comprehensive income $ 458,365 92,219 366,146 Nine Months 2018 ($ in thousands) Gross Tax Net Net income $ 159,586 26,407 133,179 Components of other comprehensive loss: Unrealized losses on investment securities: Unrealized holding losses during the period (130,873 ) (27,484 ) (103,389 ) Amounts reclassified into net income: HTM securities (28 ) (6 ) (22 ) Realized losses on disposals and OTTI of AFS securities 18,258 3,834 14,424 Total unrealized losses on investment securities (112,643 ) (23,656 ) (88,987 ) Defined benefit pension and post-retirement plans: Amounts reclassified into net income: Net actuarial loss 1,595 335 1,260 Total defined benefit pension and post-retirement plans 1,595 335 1,260 Other comprehensive loss (111,048 ) (23,321 ) (87,727 ) Comprehensive income $ 48,538 3,086 45,452 The balances of, and changes in, each component of AOCI (net of taxes) as of September 30, 2019 were as follows: September 30, 2019 Defined Benefit Pension and Post-Retirement Plans Net Unrealized Gains (Losses) on Investment Securities Total AOCI ($ in thousands) OTTI Related HTM Related All Other Investments Subtotal Balance, December 31, 2018 $ (71 ) 71 1,888 1,888 (79,844 ) (77,956 ) OCI before reclassifications — — 174,483 174,483 — 174,483 Amounts reclassified from AOCI — (26 ) 351 325 1,574 1,899 Net current period OCI — (26 ) 174,834 174,808 1,574 176,382 Balance, September 30, 2019 $ (71 ) 45 176,722 176,696 (78,270 ) 98,426 The reclassifications out of AOCI were as follows: Quarter ended September 30, Nine Months ended September 30, Affected Line Item in the Unaudited Consolidated Statements of Income ($ in thousands) 2019 2018 2019 2018 HTM related Unrealized (gains) losses on HTM disposals $ (3 ) 11 (12 ) 5 Net realized and unrealized (losses) gains Amortization of net unrealized gains on HTM securities — (19 ) (21 ) (33 ) Net investment income earned (3 ) (8 ) (33 ) (28 ) Income before federal income tax 1 2 7 6 Total federal income tax expense (2 ) (6 ) (26 ) (22 ) Net income Realized losses on AFS and OTTI Realized losses on AFS disposals and OTTI 2,821 10,839 444 18,258 Net realized and unrealized (losses) gains 2,821 10,839 444 18,258 Income before federal income tax (592 ) (2,276 ) (93 ) (3,834 ) Total federal income tax expense 2,229 8,563 351 14,424 Net income Defined benefit pension and post-retirement life plans Net actuarial loss 146 112 436 337 Loss and loss expense incurred 519 420 1,557 1,258 Other insurance expenses Total defined benefit pension and post-retirement life 665 532 1,993 1,595 Income before federal income tax (140 ) (112 ) (419 ) (335 ) Total federal income tax expense 525 420 1,574 1,260 Net income Total reclassifications for the period $ 2,752 8,977 1,899 15,662 Net income |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases We have various operating leases for office space, equipment, and fleet vehicles. In addition, we have various finance leases for computer hardware. Such lease agreements, which expire at various dates through 2030, are generally renewed or replaced by similar leases. We determine if an arrangement is a lease on the commencement date of the contract. Lease assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. The lease asset and liability are measured by the present value of the future minimum lease payments over the lease term. Our fleet vehicle leases include a residual value guarantee; however, it is not probable of being owed. Therefore, there is no impact to the lease liability or lease asset. To measure the present value, the discount rate available in the contract is used. If the discount rate is not readily determinable, our incremental borrowing rate is used. The lease asset is then adjusted to exclude lease incentives. We recognize variable lease payments in the period in which the obligation for those payments is incurred. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense is calculated using the straight-line method. Upon adoption of ASU 2016-02 on January 1, 2019, we recorded operating lease right-of-use assets of $20.7 million with related lease liabilities of $21.0 million . The differential of $0.3 million was recognized, on an after-tax basis, as a cumulative-effect adjustment to the opening balance of retained earnings as of January 1, 2019. Financing lease right-of-use assets and the related lease liabilities were $0.9 million as of January 1, 2019. See Note 2. "Adoption of Accounting Pronouncements" in this Form 10-Q for additional information regarding ASU 2016-02 and accounting policy elections made. The components of lease expense in Third Quarter and Nine Months 2019 were as follows: ($ in thousands) Quarter ended September 30, 2019 Nine Months ended September 30, 2019 Operating lease cost, included in Other insurance expenses on the Consolidated Statements of Income $ 2,234 6,631 Finance lease cost: Amortization of assets, included in Other insurance expenses on the Consolidated Statements of Income 217 816 Interest on lease liabilities, included in Interest expense on the Consolidated Statements of Income 5 12 Total finance lease cost 222 828 Variable lease cost, included in Other insurance expenses on the Consolidated Statements of Income (548 ) 120 Short-term lease cost, included in Other insurance expenses on the Consolidated Statements of Income 502 1,677 The following table provides supplemental information regarding our operating and finance leases. September 30, 2019 Weighted-average remaining lease term Operating leases 6 years Finance leases 2 Weighted-average discount rate Operating leases 3.4 % Finance leases 1 2.0 1 Prior to adoption of ASU 2016-02, our historical capital lease liability and asset were measured using an un-discounted cash flow stream due to immateriality of the capital lease population. Operating and finance lease asset and liability balances are included within the following line items on the Consolidated Balance Sheets: ($ in thousands) September 30, 2019 Operating leases Other assets $ 28,348 Other liabilities 29,218 Finance leases Property and equipment - at cost, net of accumulated depreciation and amortization 899 Long-term debt 904 At September 30, 2019 , the maturities of our lease liabilities were as follows: ($ in thousands) Finance Leases Operating Leases Total Year ended December 31, 2019 (excluding the nine months ended September 30, 2019) $ 171 2,071 2,242 2020 451 8,164 8,615 2021 248 6,033 6,281 2022 54 4,443 4,497 2023 — 3,232 3,232 Thereafter — 11,446 11,446 Total lease payments 924 35,389 36,313 Less: imputed interest 20 3,230 3,250 Less: leases that have not yet commenced — 2,941 2,941 Total lease liabilities $ 904 29,218 30,122 At December 31, 2018, the maturities of our lease liabilities for capital and operating leases were as follows: ($ in thousands) Capital Leases Operating Leases Total 2019 $ 728 7,762 8,490 2020 141 7,355 7,496 2021 22 5,083 5,105 2022 — 3,641 3,641 2023 — 2,900 2,900 Thereafter — 9,698 9,698 Total minimum payment required $ 891 36,439 37,330 Refer to Note. 3 "Statements of Cash Flows" in this Form 10-Q for supplemental cash and non-cash transactions included in the measurement of operating and finance lease liabilities. |
Litigation
Litigation | 9 Months Ended |
Sep. 30, 2019 | |
Loss Contingency, Information about Litigation Matters [Abstract] | |
Litigation | Litigation In the ordinary course of conducting business, we can be named as defendants in various legal actions. Most are claims litigation involving our Insurance Subsidiaries as either: (i) liability insurers defending or providing indemnity for third-party claims brought against our customers; or (ii) insurers defending first-party coverage claims brought against them. We account for such activity through the establishment of unpaid loss and loss expense reserves. In ordinary course claims litigation, we expect that any potential ultimate liability, after consideration of provisions made for potential losses and costs of defense, will not be material to our consolidated financial condition, results of operations, or cash flows. From time to time, our Insurance Subsidiaries also are named as defendants in other legal actions, some of which assert claims for substantial amounts. Plaintiffs may style these actions as putative class actions and seek judicial certification of a state or national class for allegations such as improper reimbursement of medical providers paid under workers compensation and personal and commercial automobile insurance policies or improper reimbursement for automobile parts. Similarly, our Insurance Subsidiaries can be named in individual actions seeking extra-contractual damages, punitive damages, or penalties, often alleging bad faith in the handling of insurance claims. We believe that we have valid defenses to these allegations and we account for such activity through the establishment of unpaid loss and loss expense reserves. In these other legal actions, we expect that any potential ultimate liability, after consideration of provisions made for estimated losses, will not be material to our consolidated financial condition. Nonetheless, litigation outcomes are inherently unpredictable and, because the amounts sought in certain of these actions are large or indeterminate, it is possible that any adverse outcomes could have a material adverse effect on our consolidated results of operations or cash flows in particular quarterly or annual periods. As of September 30, 2019 , we do not believe we are involved in any legal action that could have a material adverse effect on our consolidated financial condition, results of operations, or cash flows. |
Statements of Cash Flow (Tables
Statements of Cash Flow (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | Nine Months ended September 30, ($ in thousands) 2019 2018 Cash paid during the period for: Interest $ 19,261 15,449 Federal income tax 42,000 7,193 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 1 6,062 — Operating cash flows from financing leases 12 — Financing cash flows from finance leases 811 4,891 Non-cash items: Corporate actions related to fixed income securities, AFS 2 29,771 32,757 Corporate actions related to equity securities 2 14,250 944 Assets acquired under finance lease arrangements 824 4,114 Assets acquired under operating lease arrangements 1 13,648 — Non-cash purchase of property and equipment 108 — 1 Upon adoption of ASU 2016-02, effective January 1, 2019, we are required to disclose cash paid for amounts included in the measurement of operating lease liabilities, as well as supplemental non-cash information on operating lease liabilities arising from obtaining operating lease assets. 2 Examples of such corporate actions include exchanges, non-cash acquisitions, and stock splits. |
Schedule of Cash and Restricted Cash | ($ in thousands) September 30, 2019 December 31, 2018 Cash $ 516 505 Restricted cash 9,647 16,414 Total cash and restricted cash shown in the Statements of Cash Flows $ 10,163 16,919 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investments [Line Items] | |
Schedule of Available-for-sale Securities | September 30, 2019 ($ in thousands) Cost/ Amortized Cost Unrealized Gains Unrealized Losses Fair Value AFS fixed income securities: U.S. government and government agencies $ 116,555 4,357 (12 ) 120,900 Foreign government 20,947 573 — 21,520 Obligations of states and political subdivisions 1,127,709 62,910 (4 ) 1,190,615 Corporate securities 1,762,981 78,345 (2,399 ) 1,838,927 Collateralized loan obligations and other asset-backed securities ("CLO and other ABS") 764,038 8,998 (4,653 ) 768,383 Commercial mortgage-backed securities ("CMBS") 524,441 31,435 (145 ) 555,731 Residential mortgage-backed securities (“RMBS”) 1,389,985 44,710 (534 ) 1,434,161 Total AFS fixed income securities $ 5,706,656 231,328 (7,747 ) 5,930,237 December 31, 2018 ($ in thousands) Cost/ Amortized Cost Unrealized Gains Unrealized Losses Fair Value AFS fixed income securities: U.S. government and government agencies $ 120,092 1,810 (592 ) 121,310 Foreign government 23,202 36 (107 ) 23,131 Obligations of states and political subdivisions 1,121,615 19,485 (2,631 ) 1,138,469 Corporate securities 1,639,852 5,521 (27,965 ) 1,617,408 CLO and other ABS 720,193 4,112 (6,943 ) 717,362 CMBS 527,409 3,417 (3,748 ) 527,078 RMBS 1,118,435 12,988 (3,081 ) 1,128,342 Total AFS fixed income securities $ 5,270,798 47,369 (45,067 ) 5,273,100 |
Schedule of Fair Value and Gross Pre-Tax Net Unrealized Loss of Securities by Length of Time, AFS | September 30, 2019 Less than 12 months 12 months or longer Total ($ in thousands) Fair Value Unrealized Losses 1 Fair Value Unrealized Losses 1 Fair Value Unrealized 1 AFS fixed income securities: U.S. government and government agencies $ 5,014 (11 ) 498 (1 ) 5,512 (12 ) Obligations of states and political subdivisions 437 (4 ) — — 437 (4 ) Corporate securities 89,919 (1,862 ) 15,867 (537 ) 105,786 (2,399 ) CLO and other ABS 176,999 (2,458 ) 180,898 (2,195 ) 357,897 (4,653 ) CMBS 59,857 (126 ) 7,665 (19 ) 67,522 (145 ) RMBS 84,408 (503 ) 9,513 (31 ) 93,921 (534 ) Total AFS fixed income securities $ 416,634 (4,964 ) 214,441 (2,783 ) 631,075 (7,747 ) December 31, 2018 Less than 12 months 12 months or longer Total ($ in thousands) Fair Value Unrealized Losses 1 Fair Value Unrealized Losses 1 Fair Value Unrealized 1 AFS fixed income securities: U.S. government and government agencies $ 6,693 (174 ) 23,163 (418 ) 29,856 (592 ) Foreign government 12,208 (93 ) 1,482 (14 ) 13,690 (107 ) Obligations of states and political subdivisions 196,798 (2,074 ) 42,821 (557 ) 239,619 (2,631 ) Corporate securities 1,041,952 (23,649 ) 78,953 (4,316 ) 1,120,905 (27,965 ) CLO and other ABS 516,106 (6,750 ) 16,800 (193 ) 532,906 (6,943 ) CMBS 229,338 (2,548 ) 66,294 (1,200 ) 295,632 (3,748 ) RMBS 139,338 (1,660 ) 45,661 (1,421 ) 184,999 (3,081 ) Total AFS fixed income securities $ 2,142,433 (36,948 ) 275,174 (8,119 ) 2,417,607 (45,067 ) 1 Gross unrealized losses include non-OTTI unrealized amounts and OTTI losses recognized in AOCI. |
Schedule of Fixed Maturity Securities By Contractual Maturities | AFS HTM ($ in thousands) Fair Value Carrying Value Fair Value Due in one year or less $ 310,387 4,754 4,773 Due after one year through five years 3,296,126 16,334 17,589 Due after five years through 10 years 2,191,633 5,837 5,994 Due after 10 years 132,091 — — Total fixed income securities $ 5,930,237 26,925 28,356 |
Schedule of Other Investment Portfolio By Strategy And Remaining Commitment Amount and Maximum Exposure to Loss Associated With Each Strategy | Other Investments September 30, 2019 December 31, 2018 ($ in thousands) Carrying Value Remaining Commitment Maximum Exposure to Loss 1 Carrying Value Remaining Commitment Maximum Exposure to Loss 1 Alternative Investments Private equity $ 105,922 97,552 203,474 84,352 93,688 178,040 Private credit 37,710 109,797 147,507 41,682 81,453 123,135 Real assets 21,828 22,534 44,362 27,862 27,129 54,991 Total alternative investments 165,460 229,883 395,343 153,896 202,270 356,166 Other securities 23,783 — 23,783 25,042 — 25,042 Total other investments $ 189,243 229,883 419,126 178,938 202,270 381,208 1 The maximum exposure to loss includes both the carry value of these investments and the related remaining commitments. In addition, tax credits that have been previously recognized in Other securities are subject to the risk of recapture, which we do not consider significant. |
Schedule of Aggregated Summarized Income Statement Financial Information For Partnerships In Our Alternative Investment Portfolio | Income Statement Information Quarter ended September 30, Nine Months ended September 30, ($ in millions) 2019 2018 2019 2018 Net investment (loss) income $ (14.0 ) 11.9 10.1 (29.9 ) Realized gains 121.1 124.8 370.4 1,348.3 Net change in unrealized appreciation (depreciation) 1,739.4 1,434.3 4,517.4 695.8 Net income $ 1,846.5 1,571.0 4,897.9 2,014.2 Insurance subsidiaries’ alternative investments income $ 5.2 7.1 13.0 10.6 |
Schedule of Securities Pledged As Collateral | ($ in millions) FHLBI Collateral FHLBNY Collateral State and Regulatory Deposits Total U.S. government and government agencies $ — — 22.9 22.9 Obligations of states and political subdivisions — — 3.9 3.9 Corporate securities — — 0.3 0.3 CMBS 7.3 19.6 — 26.9 RMBS 57.4 81.1 — 138.5 Total pledged as collateral $ 64.7 100.7 27.1 192.5 |
Schedule of Pre-Tax Net Investment Income Earned | Quarter ended September 30, Nine Months ended September 30, ($ in thousands) 2019 2018 2019 2018 Fixed income securities $ 50,749 45,088 150,689 130,903 Equity securities 1,885 2,079 5,265 5,876 Short-term investments 1,410 867 5,213 2,001 Other investments 5,267 7,211 13,421 10,868 Investment expenses (3,485 ) (2,802 ) (9,639 ) (8,421 ) Net investment income earned $ 55,826 52,443 164,949 141,227 |
Schedule of Components of Net Realized and Unrealized Gains and Losses Excluding OTTI Charges | Quarter ended September 30, Nine Months ended September 30, ($ in thousands) 2019 2018 2019 2018 Net realized gains (losses) on the disposals of securities: Fixed income securities $ (1,141 ) (9,413 ) 2,063 (13,922 ) Equity securities 21,602 8,665 24,733 17,960 Short-term investments (36 ) 2 (21 ) 1 Other investments — (5 ) (23 ) (5 ) Net realized gains (losses) on the disposal of securities 20,425 (751 ) 26,752 4,034 OTTI charges (2,291 ) (1,426 ) (3,366 ) (5,459 ) Net realized gains (losses) 18,134 (2,177 ) 23,386 (1,425 ) Unrealized (losses) recognized in income on equity securities (20,317 ) (2,610 ) (8,091 ) (15,563 ) Total net realized and unrealized investment (losses) gains $ (2,183 ) (4,787 ) $ 15,295 (16,988 ) |
Schedule of Realized Gains and Losses on Disposals of Securities | Quarter ended September 30, Nine Months ended September 30, ($ in thousands) 2019 2018 2019 2018 HTM fixed income securities Gains $ — — 1 2 Losses — — (15 ) — AFS fixed income securities Gains 1,078 462 5,565 5,056 Losses (2,219 ) (9,875 ) (3,488 ) (18,980 ) Equity securities Gains 21,630 10,584 24,868 20,209 Losses (28 ) (1,919 ) (135 ) (2,249 ) Short-term investments Gains 2 3 18 6 Losses (38 ) (1 ) (39 ) (5 ) Other investments Gains — — 7 — Losses — (5 ) (30 ) (5 ) Total net realized gains on disposals of securities $ 20,425 (751 ) 26,752 4,034 |
Equity Securities [Member] | |
Investments [Line Items] | |
Schedule of Components of Net Realized and Unrealized Gains and Losses Excluding OTTI Charges | Quarter ended September 30, Nine Months ended September 30, ($ in thousands) 2019 2018 2019 2018 Unrealized gains (losses) recognized in income on equity securities: On securities remaining in our portfolio at September 30, 2019 $ 1,109 5,476 1,805 4,199 On securities sold in each respective period (21,426 ) (8,086 ) (9,896 ) (19,762 ) Total unrealized (losses) recognized in income on equity securities $ (20,317 ) (2,610 ) $ (8,091 ) (15,563 ) |
Indebtedness (Tables)
Indebtedness (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | Outstanding Debt Issuance Date Maturity Date Interest Rate Original Amount 2019 Carry Value ($ in thousands) Debt Discount and Unamortized Issuance Costs September 30, 2019 December 31, 2018 Description Long term Issuance: Senior Notes 3/1/2019 3/1/2049 5.375 % $ 300,000 9,065 290,935 — Redemption: Senior Notes 2/8/2013 2/9/2043 5.875 % 185,000 — — 180,771 Other Outstanding: FHLBI 12/16/2016 12/16/2026 3.03 % 60,000 — 60,000 60,000 FHLBNY 8/15/2016 8/16/2021 1.56 % 25,000 — 25,000 25,000 FHLBNY 7/21/2016 7/21/2021 1.61 % 25,000 — 25,000 25,000 Senior Notes 11/3/2005 11/1/2035 6.70 % 100,000 889 99,111 99,069 Senior Notes 11/16/2004 11/15/2034 7.25 % 50,000 281 49,719 49,700 Finance lease obligations 1 904 — Total long-term debt 10,235 550,669 439,540 1 Concurrent with the adoption of ASU 2016-02 discussed in Note 2. "Adoption of Accounting Pronouncements," finance lease obligations are now captured in Long-term debt on our Consolidated Balance Sheets. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |
Schedule of Carrying Values and Estimated Fair Values of Financial Liabilities | September 30, 2019 December 31, 2018 ($ in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Financial Liabilities Long-term debt: 7.25% Senior Notes 49,909 65,770 49,907 57,032 6.70% Senior Notes 99,476 125,954 99,462 107,075 5.875% Senior Notes — — 185,000 177,230 5.375% Senior Notes 294,136 352,156 — — 1.61% borrowings from FHLBNY 25,000 24,838 25,000 24,218 1.56% borrowings from FHLBNY 25,000 24,808 25,000 24,162 3.03% borrowings from FHLBI 60,000 63,741 60,000 58,905 Subtotal long-term debt 553,521 657,267 444,369 448,622 Unamortized debt issuance costs (3,756 ) (4,829 ) Finance lease obligations 904 — Total long-term debt 550,669 439,540 |
Schedule of Quantitative Disclosures of Our Financial Assets That Were Measured At Fair Value | September 30, 2019 Fair Value Measurements Using ($ in thousands) Assets Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) 1 Significant Other Observable Inputs (Level 2) 1 Significant Unobservable Inputs (Level 3) Description Measured on a recurring basis: AFS fixed income securities: U.S. government and government agencies $ 120,900 41,619 79,281 — Foreign government 21,520 — 21,520 — Obligations of states and political subdivisions 1,190,615 — 1,190,615 — Corporate securities 1,838,927 — 1,822,577 16,350 CLO and other ABS 768,383 — 748,504 19,879 CMBS 555,731 — 555,731 — RMBS 1,434,161 — 1,434,161 — Total AFS fixed income securities 5,930,237 41,619 5,852,389 36,229 Equity securities: Common stock 2 76,179 42,988 — — Preferred stock 3,034 3,034 — — Total equity securities 79,213 46,022 — — Short-term investments 326,121 319,599 6,522 — Total assets measured at fair value $ 6,335,571 407,240 5,858,911 36,229 December 31, 2018 Fair Value Measurements Using ($ in thousands) Assets Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) 1 Significant Other Observable Inputs (Level 2) 1 Significant Unobservable Inputs (Level 3) Description Measured on a recurring basis: AFS fixed income securities: U.S. government and government agencies $ 121,310 78,381 42,929 — Foreign government 23,131 — 23,131 — Obligations of states and political subdivisions 1,138,469 — 1,138,469 — Corporate securities 1,617,408 — 1,617,408 — CLO and other ABS 717,362 — 709,953 7,409 CMBS 527,078 — 527,078 — RMBS 1,128,342 — 1,128,342 — Total AFS fixed income securities 5,273,100 78,381 5,187,310 7,409 Equity securities: Common stock 2 144,727 107,397 — — Preferred stock 2,912 2,912 — — Total equity securities 147,639 110,309 — — Short-term investments 323,864 321,370 2,494 — Total assets measured at fair value $ 5,744,603 510,060 5,189,804 7,409 1 There were no transfers of securities between Level 1 and Level 2. 2 Investments amounting to $33.2 million at September 30, 2019 , and $37.3 million at December 31, 2018 |
Schedule of Changes in Fair Value of Securities Using Level 3 Inputs | September 30, 2019 ($ in thousands) Corporate Securities CLO and Other ABS Total Fair value, December 31, 2018 — 7,409 7,409 Total net (losses) gains for the period included in: OCI (69 ) (14 ) (83 ) Net income — 244 244 Purchases — 18,404 18,404 Sales — — — Issuances — — — Settlements — (105 ) (105 ) Transfers into Level 3 16,419 13,603 30,022 Transfers out of Level 3 — (19,662 ) (19,662 ) Fair value, September 30, 2019 16,350 19,879 36,229 |
Schedule of Quantitative Information of Our Financial Assets and Liabilities That Were Disclosed at Fair Value | September 30, 2019 Fair Value Measurements Using ($ in thousands) Assets/ Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial Assets HTM: Obligations of states and political subdivisions $ 9,426 — 9,426 — Corporate securities 18,930 — 18,930 — Total HTM fixed income securities $ 28,356 — 28,356 — Financial Liabilities Long-term debt: 7.25% Senior Notes $ 65,770 — 65,770 — 6.70% Senior Notes 125,954 — 125,954 — 5.375% Senior Notes 352,156 — 352,156 — 1.61% borrowings from FHLBNY 24,838 — 24,838 — 1.56% borrowings from FHLBNY 24,808 — 24,808 — 3.03% borrowings from FHLBI 63,741 — 63,741 — Total long-term debt $ 657,267 — 657,267 — December 31, 2018 Fair Value Measurements Using ($ in thousands) Assets/ Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial Assets HTM: Obligations of states and political subdivisions $ 17,969 — 17,969 — Corporate securities 20,348 — 20,348 — Total HTM fixed income securities $ 38,317 — 38,317 — Financial Liabilities Long-term debt: 7.25% Senior Notes $ 57,032 — 57,032 — 6.70% Senior Notes 107,075 — 107,075 — 5.875% Senior Notes 177,230 177,230 — — 1.61% borrowings from FHLBNY 24,218 — 24,218 — 1.56% borrowings from FHLBNY 24,162 — 24,162 — 3.03% borrowings from FHLBI 58,905 — 58,905 — Total long-term debt $ 448,622 177,230 271,392 — |
Reinsurance (Tables)
Reinsurance (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Reinsurance Disclosures [Abstract] | |
Schedule of List Of Direct, Assumed, And Ceded Reinsurance Amounts | Quarter ended September 30, Nine Months ended September 30, ($ in thousands) 2019 2018 2019 2018 Premiums written: Direct $ 785,680 752,834 $ 2,359,441 2,220,431 Assumed 6,882 7,084 18,770 19,891 Ceded (115,634 ) (108,250 ) (326,939 ) (308,846 ) Net $ 676,928 651,668 $ 2,051,272 1,931,476 Premiums earned: Direct $ 752,872 706,497 $ 2,221,257 2,086,953 Assumed 6,356 6,484 18,660 19,220 Ceded (105,608 ) (98,704 ) (311,105 ) (295,232 ) Net $ 653,620 614,277 $ 1,928,812 1,810,941 Loss and loss expenses incurred: Direct $ 437,618 477,427 $ 1,297,975 1,289,357 Assumed 4,362 6,529 13,975 16,897 Ceded (43,305 ) (104,757 ) (145,712 ) (175,786 ) Net $ 398,675 379,199 $ 1,166,238 1,130,468 |
Schedule of Ceded Premiums and Losses Related to Flood Operations | Ceded to NFIP Quarter ended September 30, Nine Months ended September 30, ($ in thousands) 2019 2018 2019 2018 Ceded premiums written $ (74,864 ) (70,100 ) $ (206,451 ) (193,110 ) Ceded premiums earned (65,847 ) (61,448 ) (191,914 ) (180,582 ) Ceded loss and loss expenses incurred (27,459 ) (89,396 ) (62,208 ) (115,376 ) Excluding the impact of our participation in the NFIP, ceded loss and loss expenses incurred increased in Nine Months 2019 compared to the respective prior year, due to one significant fire loss in the second quarter of 2019, which added $17.4 million to ceded loss and loss expenses. The elevated ceded loss and loss expenses incurred related to our participation in the NFIP in Third Quarter and Nine Months 2018 were due to Hurricane Florence, which impacted our footprint in September 2018. |
Reserve for Loss and Loss Exp_2
Reserve for Loss and Loss Expense (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Insurance Loss Reserves [Abstract] | |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense | Nine Months ended September 30, ($ in thousands) 2019 2018 Gross reserve for loss and loss expense, at beginning of year $ 3,893,868 3,771,240 Less: reinsurance recoverable on unpaid loss and loss expense, at beginning of year 537,388 585,855 Net reserve for loss and loss expense, at beginning of year 3,356,480 3,185,385 Incurred loss and loss expense for claims occurring in the: Current year 1,200,878 1,148,032 Prior years (34,640 ) (17,564 ) Total incurred loss and loss expense 1,166,238 1,130,468 Paid loss and loss expense for claims occurring in the: Current year 384,436 369,036 Prior years 631,589 610,734 Total paid loss and loss expense 1,016,025 979,770 Net reserve for loss and loss expense, at end of period 3,506,693 3,336,083 Add: Reinsurance recoverable on unpaid loss and loss expense, at end of period 548,938 589,072 Gross reserve for loss and loss expense at end of period $ 4,055,631 3,925,155 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Revenue By Segment | Revenue by Segment Quarter ended September 30, Nine Months ended September 30, ($ in thousands) 2019 2018 2019 2018 Standard Commercial Lines: Net premiums earned: Commercial automobile $ 141,182 124,862 408,706 365,197 Workers compensation 75,478 78,784 232,657 237,628 General liability 169,084 154,974 495,402 457,805 Commercial property 89,215 83,056 262,418 245,544 Businessowners’ policies 26,371 25,994 78,624 77,414 Bonds 8,990 8,778 26,861 25,247 Other 4,841 4,608 14,326 13,597 Miscellaneous income 2,782 2,228 7,544 6,936 Total Standard Commercial Lines revenue 517,943 483,284 1,526,538 1,429,368 Standard Personal Lines: Net premiums earned: Personal automobile 43,226 42,772 129,777 125,024 Homeowners 31,529 32,293 95,672 96,717 Other 1,983 2,092 5,709 5,349 Miscellaneous income 380 310 991 959 Total Standard Personal Lines revenue 77,118 77,467 232,149 228,049 E&S Lines: Net premiums earned: Casualty lines 47,171 42,179 136,455 120,098 Property lines 14,550 13,885 42,205 41,321 Miscellaneous income — — — 1 Total E&S Lines revenue 61,721 56,064 178,660 161,420 Investments: Net investment income 55,826 52,443 164,949 141,227 Net realized and unrealized investment (losses) gains (2,183 ) (4,787 ) 15,295 (16,988 ) Total Investments revenue 53,643 47,656 180,244 124,239 Total revenues $ 710,425 664,471 2,117,591 1,943,076 |
Schedule of Income Before and After Federal Income Tax | Income Before and After Federal Income Tax Quarter ended September 30, Nine Months ended September 30, ($ in thousands) 2019 2018 2019 2018 Standard Commercial Lines: Underwriting gain, before federal income tax $ 30,016 26,333 92,974 74,153 Underwriting gain, after federal income tax 23,713 20,803 73,450 58,581 Combined ratio 94.2 % 94.5 93.9 94.8 ROE contribution 4.5 4.9 5.0 4.5 Standard Personal Lines: Underwriting (loss) gain, before federal income tax $ (631 ) 3,158 7,074 6,457 Underwriting (loss) gain, after federal income tax (499 ) 2,495 5,588 5,101 Combined ratio 100.8 % 95.9 96.9 97.2 ROE contribution (0.1 ) 0.6 0.4 0.4 E&S Lines: Underwriting gain (loss), before federal income tax $ 1,916 3,506 9,439 (4,848 ) Underwriting gain (loss), after federal income tax 1,514 2,770 7,457 (3,830 ) Combined ratio 96.9 % 93.7 94.7 103.0 ROE contribution 0.3 0.6 0.5 (0.3 ) Investments: Net investment income $ 55,826 52,443 164,949 141,227 Net realized and unrealized investment (losses) gains (2,183 ) (4,787 ) 15,295 (16,988 ) Total investment segment income, before federal income tax 53,643 47,656 180,244 124,239 Tax on investment segment income 10,884 8,562 34,733 21,405 Total investment segment income, after federal income tax $ 42,759 39,094 145,511 102,834 ROE contribution of after-tax net investment income 8.6 10.0 9.1 9.0 |
Schedule of Reconciliation of Segment Results to Income Before Federal Income Tax | Reconciliation of Segment Results to Income Before Federal Income Tax Quarter ended September 30, Nine Months ended September 30, ($ in thousands) 2019 2018 2019 2018 Underwriting gain (loss) Standard Commercial Lines $ 30,016 26,333 92,974 74,153 Standard Personal Lines (631 ) 3,158 7,074 6,457 E&S Lines 1,916 3,506 9,439 (4,848 ) Investment income 53,643 47,656 180,244 124,239 Total all segments 84,944 80,653 289,731 200,001 Interest expense (7,397 ) (6,073 ) (26,289 ) (18,350 ) Corporate expenses (6,369 ) (7,450 ) (28,345 ) (22,065 ) Income, before federal income tax $ 71,178 67,130 235,097 159,586 |
Retirement Plans (Table)
Retirement Plans (Table) | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Net Periodic Benefit Cost | Pension Plan Pension Plan Quarter ended September 30, Nine Months ended September 30, ($ in thousands) 2019 2018 2019 2018 Net Periodic Pension Cost (Benefit): Interest cost $ 3,376 3,095 10,129 9,285 Expected return on plan assets (5,278 ) (5,681 ) (15,835 ) (17,044 ) Amortization of unrecognized net actuarial loss 644 494 1,931 1,481 Total net periodic pension cost (benefit) 1 $ (1,258 ) (2,092 ) (3,775 ) (6,278 ) 1 The components of net periodic pension cost (benefit) are included within "Loss and loss expense incurred" and "Other insurance expenses" on the Consolidated Statements of Income. |
Schedule of Weighted-Average Expense Assumptions | Pension Plan Nine Months ended September 30, 2019 2018 Weighted-Average Expense Assumptions: Discount rate 4.46 % 3.78 % Effective interest rate for calculation of interest cost 4.12 3.46 Expected return on plan assets 6.50 6.36 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Schedule of Components of Comprehensive Income-Gross and Net of Tax | Third Quarter 2019 ($ in thousands) Gross Tax Net Net income $ 71,178 15,028 56,150 Components of OCI: Unrealized gains on investment securities : Unrealized holding gains during the period 34,392 7,224 27,168 Amounts reclassified into net income: HTM securities (3 ) (1 ) (2 ) Realized losses on disposals and OTTI of AFS securities 2,821 592 2,229 Total unrealized gains on investment securities 37,210 7,815 29,395 Defined benefit pension and post-retirement plans: Amounts reclassified into net income: Net actuarial loss 665 140 525 Total defined benefit pension and post-retirement plans 665 140 525 Other comprehensive income 37,875 7,955 29,920 Comprehensive income $ 109,053 22,983 86,070 Third Quarter 2018 ($ in thousands) Gross Tax Net Net income $ 67,130 11,695 55,435 Components of other comprehensive loss: Unrealized losses on investment securities : Unrealized holding losses during the period (21,565 ) (4,529 ) (17,036 ) Amounts reclassified into net income: HTM securities (8 ) (2 ) (6 ) Realized losses on disposals and OTTI of AFS securities 10,839 2,276 8,563 Total unrealized losses on investment securities (10,734 ) (2,255 ) (8,479 ) Defined benefit pension and post-retirement plans: Amounts reclassified into net income: Net actuarial loss 532 112 420 Total defined benefit pension and post-retirement plans 532 112 420 Other comprehensive loss (10,202 ) (2,143 ) (8,059 ) Comprehensive income $ 56,928 9,552 47,376 Nine Months 2019 ($ in thousands) Gross Tax Net Net income $ 235,097 45,333 189,764 Components of OCI: Unrealized gains on investment securities: Unrealized holding gains during the period 220,864 46,381 174,483 Amounts reclassified into net income: HTM securities (33 ) (7 ) (26 ) Realized losses on disposals and OTTI of AFS securities 444 93 351 Total unrealized gains on investment securities 221,275 46,467 174,808 Defined benefit pension and post-retirement plans: Amounts reclassified into net income: Net actuarial loss 1,993 419 1,574 Total defined benefit pension and post-retirement plans 1,993 419 1,574 Other comprehensive income 223,268 46,886 176,382 Comprehensive income $ 458,365 92,219 366,146 Nine Months 2018 ($ in thousands) Gross Tax Net Net income $ 159,586 26,407 133,179 Components of other comprehensive loss: Unrealized losses on investment securities: Unrealized holding losses during the period (130,873 ) (27,484 ) (103,389 ) Amounts reclassified into net income: HTM securities (28 ) (6 ) (22 ) Realized losses on disposals and OTTI of AFS securities 18,258 3,834 14,424 Total unrealized losses on investment securities (112,643 ) (23,656 ) (88,987 ) Defined benefit pension and post-retirement plans: Amounts reclassified into net income: Net actuarial loss 1,595 335 1,260 Total defined benefit pension and post-retirement plans 1,595 335 1,260 Other comprehensive loss (111,048 ) (23,321 ) (87,727 ) Comprehensive income $ 48,538 3,086 45,452 |
Schedule of Components of Accumulated Other Comprehensive Income Net of Tax | September 30, 2019 Defined Benefit Pension and Post-Retirement Plans Net Unrealized Gains (Losses) on Investment Securities Total AOCI ($ in thousands) OTTI Related HTM Related All Other Investments Subtotal Balance, December 31, 2018 $ (71 ) 71 1,888 1,888 (79,844 ) (77,956 ) OCI before reclassifications — — 174,483 174,483 — 174,483 Amounts reclassified from AOCI — (26 ) 351 325 1,574 1,899 Net current period OCI — (26 ) 174,834 174,808 1,574 176,382 Balance, September 30, 2019 $ (71 ) 45 176,722 176,696 (78,270 ) 98,426 |
Schedule of Reclassifications Out Of Accumulated Other Comprehensive Income | Quarter ended September 30, Nine Months ended September 30, Affected Line Item in the Unaudited Consolidated Statements of Income ($ in thousands) 2019 2018 2019 2018 HTM related Unrealized (gains) losses on HTM disposals $ (3 ) 11 (12 ) 5 Net realized and unrealized (losses) gains Amortization of net unrealized gains on HTM securities — (19 ) (21 ) (33 ) Net investment income earned (3 ) (8 ) (33 ) (28 ) Income before federal income tax 1 2 7 6 Total federal income tax expense (2 ) (6 ) (26 ) (22 ) Net income Realized losses on AFS and OTTI Realized losses on AFS disposals and OTTI 2,821 10,839 444 18,258 Net realized and unrealized (losses) gains 2,821 10,839 444 18,258 Income before federal income tax (592 ) (2,276 ) (93 ) (3,834 ) Total federal income tax expense 2,229 8,563 351 14,424 Net income Defined benefit pension and post-retirement life plans Net actuarial loss 146 112 436 337 Loss and loss expense incurred 519 420 1,557 1,258 Other insurance expenses Total defined benefit pension and post-retirement life 665 532 1,993 1,595 Income before federal income tax (140 ) (112 ) (419 ) (335 ) Total federal income tax expense 525 420 1,574 1,260 Net income Total reclassifications for the period $ 2,752 8,977 1,899 15,662 Net income |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | ($ in thousands) Quarter ended September 30, 2019 Nine Months ended September 30, 2019 Operating lease cost, included in Other insurance expenses on the Consolidated Statements of Income $ 2,234 6,631 Finance lease cost: Amortization of assets, included in Other insurance expenses on the Consolidated Statements of Income 217 816 Interest on lease liabilities, included in Interest expense on the Consolidated Statements of Income 5 12 Total finance lease cost 222 828 Variable lease cost, included in Other insurance expenses on the Consolidated Statements of Income (548 ) 120 Short-term lease cost, included in Other insurance expenses on the Consolidated Statements of Income 502 1,677 |
Supplemental Lease Information | September 30, 2019 Weighted-average remaining lease term Operating leases 6 years Finance leases 2 Weighted-average discount rate Operating leases 3.4 % Finance leases 1 2.0 1 Prior to adoption of ASU 2016-02, our historical capital lease liability and asset were measured using an un-discounted cash flow stream due to immateriality of the capital lease population. |
Lease Assets and Liabilities | ($ in thousands) September 30, 2019 Operating leases Other assets $ 28,348 Other liabilities 29,218 Finance leases Property and equipment - at cost, net of accumulated depreciation and amortization 899 Long-term debt 904 |
Maturities of Lease Liabilities | ($ in thousands) Finance Leases Operating Leases Total Year ended December 31, 2019 (excluding the nine months ended September 30, 2019) $ 171 2,071 2,242 2020 451 8,164 8,615 2021 248 6,033 6,281 2022 54 4,443 4,497 2023 — 3,232 3,232 Thereafter — 11,446 11,446 Total lease payments 924 35,389 36,313 Less: imputed interest 20 3,230 3,250 Less: leases that have not yet commenced — 2,941 2,941 Total lease liabilities $ 904 29,218 30,122 |
Schedule of Future Minimum Rental Commitments For Non-Cancelable Leases | ($ in thousands) Capital Leases Operating Leases Total 2019 $ 728 7,762 8,490 2020 141 7,355 7,496 2021 22 5,083 5,105 2022 — 3,641 3,641 2023 — 2,900 2,900 Thereafter — 9,698 9,698 Total minimum payment required $ 891 36,439 37,330 |
Statements of Cash Flows (Cash
Statements of Cash Flows (Cash Flow Supplemental Disclosures) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | ||
Interest Paid, Excluding Capitalized Interest, Operating Activities | $ 19,261 | $ 15,449 | |
Federal income tax | 42,000 | 7,193 | |
Operating cash flows from operating leases | [1] | 6,062 | 0 |
Operating cash flows from financing leases | 12 | 0 | |
Financing cash flows from finance leases | 811 | 4,891 | |
Assets acquired under finance lease arrangements | 824 | ||
Assets acquired under finance lease arrangements | 4,114 | ||
Assets acquired under operating lease arrangements | [1] | 13,648 | 0 |
Non-cash purchase of property and equipment | 108 | 0 | |
AFS Fixed Income Securities [Member] | |||
Corporate actions related to securities | [2] | 29,771 | 32,757 |
Equity Securities [Member] | |||
Corporate actions related to securities | [2] | $ 14,250 | $ 944 |
[1] | Upon adoption of ASU 2016-02, effective January 1, 2019, we are required to disclose cash paid for amounts included in the measurement of operating lease liabilities, as well as supplemental non-cash information on operating lease liabilities arising from obtaining operating lease assets. | ||
[2] | Examples of such corporate actions include exchanges, non-cash acquisitions, and stock splits. |
Statements of Cash Flows (Sched
Statements of Cash Flows (Schedule of Cash and Restricted Cash) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule of Cash and Restricted Cash [Line Items] | ||||
Cash | $ 516 | $ 505 | ||
Restricted cash | 9,647 | 16,414 | ||
Total cash and restricted cash shown in the Statements of Cash Flows | $ 10,163 | $ 16,919 | $ 12,832 | $ 44,710 |
Investments (Held-To-Maturity S
Investments (Held-To-Maturity Securities Disclosure) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Schedule of Held-to-maturity Securities [Line Items] | ||
HTM Securities Percent of Invested Assets | 1.00% | 1.00% |
HTM, Carrying Value | $ 26,925 | $ 37,110 |
Net unrealized unrecognized gains on held to maturity securities | 1,500 | 1,300 |
Gross unrealized unrecognized loss | $ 100 | $ 200 |
Investments (Available-For-Sale
Investments (Available-For-Sale Securities Disclosure) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Cost/Amortized Cost | $ 5,706,656 | $ 5,270,798 |
Unrealized Gains | 231,328 | 47,369 |
Unrealized Losses | (7,747) | (45,067) |
Debt Securities, Available-for-sale | 5,930,237 | 5,273,100 |
AFS Fixed Income Securities [Member] | U.S. Government and Government Agencies [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/Amortized Cost | 116,555 | 120,092 |
Unrealized Gains | 4,357 | 1,810 |
Unrealized Losses | (12) | (592) |
Debt Securities, Available-for-sale | 120,900 | 121,310 |
AFS Fixed Income Securities [Member] | Foreign Government [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/Amortized Cost | 20,947 | 23,202 |
Unrealized Gains | 573 | 36 |
Unrealized Losses | 0 | (107) |
Debt Securities, Available-for-sale | 21,520 | 23,131 |
AFS Fixed Income Securities [Member] | Obligations of States and Political Subdivisions [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/Amortized Cost | 1,127,709 | 1,121,615 |
Unrealized Gains | 62,910 | 19,485 |
Unrealized Losses | (4) | (2,631) |
Debt Securities, Available-for-sale | 1,190,615 | 1,138,469 |
AFS Fixed Income Securities [Member] | Corporate Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/Amortized Cost | 1,762,981 | 1,639,852 |
Unrealized Gains | 78,345 | 5,521 |
Unrealized Losses | (2,399) | (27,965) |
Debt Securities, Available-for-sale | 1,838,927 | 1,617,408 |
AFS Fixed Income Securities [Member] | Collateralized Loan Obligations and Other Asset Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/Amortized Cost | 764,038 | 720,193 |
Unrealized Gains | 8,998 | 4,112 |
Unrealized Losses | (4,653) | (6,943) |
Debt Securities, Available-for-sale | 768,383 | 717,362 |
AFS Fixed Income Securities [Member] | Commercial Mortgage Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/Amortized Cost | 524,441 | 527,409 |
Unrealized Gains | 31,435 | 3,417 |
Unrealized Losses | (145) | (3,748) |
Debt Securities, Available-for-sale | 555,731 | 527,078 |
AFS Fixed Income Securities [Member] | Residential Mortgage Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/Amortized Cost | 1,389,985 | 1,118,435 |
Unrealized Gains | 44,710 | 12,988 |
Unrealized Losses | (534) | (3,081) |
Debt Securities, Available-for-sale | $ 1,434,161 | $ 1,128,342 |
Investments (Fair Value and Gro
Investments (Fair Value and Gross Pre-Tax Net Unrealized Loss of Securities By Length of Time) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2018 | ||
Percent Of Securities of Amortized Cost In An Unrealized Unrecognized Loss Position | 1.00% | 2.00% | |
AFS Fixed Income Securities [Member] | |||
AFS Fair Value, Less than 12 Months | $ 416,634 | $ 2,142,433 | |
AFS Unrealized Losses, Less than 12 months | [1] | (4,964) | (36,948) |
AFS Fair Value, 12 months or longer | 214,441 | 275,174 | |
AFS Unrealized Losses, 12 months or longer | [1] | (2,783) | (8,119) |
AFS Fair Value | 631,075 | 2,417,607 | |
AFS Unrealized Losses | [1] | (7,747) | (45,067) |
AFS Fixed Income Securities [Member] | U.S. Government and Government Agencies [Member] | |||
AFS Fair Value, Less than 12 Months | 5,014 | 6,693 | |
AFS Unrealized Losses, Less than 12 months | [1] | (11) | (174) |
AFS Fair Value, 12 months or longer | 498 | 23,163 | |
AFS Unrealized Losses, 12 months or longer | [1] | (1) | (418) |
AFS Fair Value | 5,512 | 29,856 | |
AFS Unrealized Losses | [1] | (12) | (592) |
AFS Fixed Income Securities [Member] | Foreign Government [Member] | |||
AFS Fair Value, Less than 12 Months | 12,208 | ||
AFS Unrealized Losses, Less than 12 months | [1] | (93) | |
AFS Fair Value, 12 months or longer | 1,482 | ||
AFS Unrealized Losses, 12 months or longer | [1] | (14) | |
AFS Fair Value | 13,690 | ||
AFS Unrealized Losses | [1] | (107) | |
AFS Fixed Income Securities [Member] | Obligations of States and Political Subdivisions [Member] | |||
AFS Fair Value, Less than 12 Months | 437 | 196,798 | |
AFS Unrealized Losses, Less than 12 months | [1] | (4) | (2,074) |
AFS Fair Value, 12 months or longer | 0 | 42,821 | |
AFS Unrealized Losses, 12 months or longer | [1] | 0 | (557) |
AFS Fair Value | 437 | 239,619 | |
AFS Unrealized Losses | [1] | (4) | (2,631) |
AFS Fixed Income Securities [Member] | Corporate Securities [Member] | |||
AFS Fair Value, Less than 12 Months | 89,919 | 1,041,952 | |
AFS Unrealized Losses, Less than 12 months | [1] | (1,862) | (23,649) |
AFS Fair Value, 12 months or longer | 15,867 | 78,953 | |
AFS Unrealized Losses, 12 months or longer | [1] | (537) | (4,316) |
AFS Fair Value | 105,786 | 1,120,905 | |
AFS Unrealized Losses | [1] | (2,399) | (27,965) |
AFS Fixed Income Securities [Member] | Collateralized Loan Obligations and Other Asset Backed Securities [Member] | |||
AFS Fair Value, Less than 12 Months | 176,999 | 516,106 | |
AFS Unrealized Losses, Less than 12 months | [1] | (2,458) | (6,750) |
AFS Fair Value, 12 months or longer | 180,898 | 16,800 | |
AFS Unrealized Losses, 12 months or longer | [1] | (2,195) | (193) |
AFS Fair Value | 357,897 | 532,906 | |
AFS Unrealized Losses | [1] | (4,653) | (6,943) |
AFS Fixed Income Securities [Member] | Commercial Mortgage Backed Securities [Member] | |||
AFS Fair Value, Less than 12 Months | 59,857 | 229,338 | |
AFS Unrealized Losses, Less than 12 months | [1] | (126) | (2,548) |
AFS Fair Value, 12 months or longer | 7,665 | 66,294 | |
AFS Unrealized Losses, 12 months or longer | [1] | (19) | (1,200) |
AFS Fair Value | 67,522 | 295,632 | |
AFS Unrealized Losses | [1] | (145) | (3,748) |
AFS Fixed Income Securities [Member] | Residential Mortgage Backed Securities [Member] | |||
AFS Fair Value, Less than 12 Months | 84,408 | 139,338 | |
AFS Unrealized Losses, Less than 12 months | [1] | (503) | (1,660) |
AFS Fair Value, 12 months or longer | 9,513 | 45,661 | |
AFS Unrealized Losses, 12 months or longer | [1] | (31) | (1,421) |
AFS Fair Value | 93,921 | 184,999 | |
AFS Unrealized Losses | [1] | (534) | $ (3,081) |
Available-for-sale Securities [Member] | AFS Fixed Income Securities [Member] | |||
AFS Unrealized Losses 9/30/2019 compared to 12/31/2018 | [1] | $ (37,300) | |
[1] | Gross unrealized losses include non-OTTI unrealized amounts and OTTI losses recognized in AOCI. |
Investments (Fixed Income Secur
Investments (Fixed Income Securities by Contractual Maturity) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Schedule of Fixed Income Securities [Line Items] | ||
Due in one year or less fair value, AFS | $ 310,387 | |
Due after one year through five years fair value, AFS | 3,296,126 | |
Due after five years through 10 years fair value, AFS | 2,191,633 | |
Due after 10 years fair value, AFS | 132,091 | |
AFS, Fair Value | 5,930,237 | $ 5,273,100 |
Due in one year or less carrying value, HTM | 4,754 | |
Due after one year through five years carrying value, HTM | 16,334 | |
Due after five years through 10 years carrying value, HTM | 5,837 | |
Due after 10 years carrying value, HTM | 0 | |
HTM, Carrying Value | 26,925 | 37,110 |
Due in one year or less fair value, HTM | 4,773 | |
Due after one year through five years fair value, HTM | 17,589 | |
Due after five years through 10 years fair value, HTM | 5,994 | |
Due after 10 years fair value, HTM | 0 | |
HTM, Fair Value | $ 28,356 | $ 38,317 |
Investments (Other Investment P
Investments (Other Investment Portfolio by Strategy and the Remaining Commitment Amount and Maximum Exposure to Loss Associated With Each Strategy) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Carrying Value | $ 189,243 | $ 178,938 | |
Other Investments [Member] | |||
Carrying Value | 189,243 | 178,938 | |
Remaining Commitment | 229,883 | 202,270 | |
Maximum Exposure to Loss | [1] | 419,126 | 381,208 |
Alternative Investments [Member] | |||
Carrying Value | 165,460 | 153,896 | |
Remaining Commitment | 229,883 | 202,270 | |
Maximum Exposure to Loss | [1] | 395,343 | 356,166 |
Private Equity [Member] | Alternative Investments [Member] | |||
Carrying Value | 105,922 | 84,352 | |
Remaining Commitment | 97,552 | 93,688 | |
Maximum Exposure to Loss | [1] | 203,474 | 178,040 |
Private Credit [Member] | Alternative Investments [Member] | |||
Carrying Value | 37,710 | 41,682 | |
Remaining Commitment | 109,797 | 81,453 | |
Maximum Exposure to Loss | [1] | 147,507 | 123,135 |
Real Assets [Member] | Alternative Investments [Member] | |||
Carrying Value | 21,828 | 27,862 | |
Remaining Commitment | 22,534 | 27,129 | |
Maximum Exposure to Loss | [1] | 44,362 | 54,991 |
Other Securities [Member] | |||
Carrying Value | 23,783 | 25,042 | |
Remaining Commitment | 0 | 0 | |
Maximum Exposure to Loss | [1] | $ 23,783 | $ 25,042 |
[1] | The maximum exposure to loss includes both the carry value of these investments and the related remaining commitments. In addition, tax credits that have been previously recognized in Other securities are subject to the risk of recapture, which we do not consider significant. |
Investments (Aggregated Income
Investments (Aggregated Income Statement Summarized Financial Information for Partnerhips in our Alternative Investment Portfolio) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Schedule of Equity Method Investments [Line Items] | ||||
Net investment income earned | $ 55,826 | $ 52,443 | $ 164,949 | $ 141,227 |
Alternative Investments [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Net investment income earned | 5,200 | 7,100 | 13,000 | 10,600 |
Investments accounted for under the equity method [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Net investment (loss) income | (14,000) | 11,900 | 10,100 | (29,900) |
Realized gains | 121,100 | 124,800 | 370,400 | 1,348,300 |
Net change in unrealized appreciation (depreciation) | 1,739,400 | 1,434,300 | 4,517,400 | 695,800 |
Net income | $ 1,846,500 | $ 1,571,000 | $ 4,897,900 | $ 2,014,200 |
Investments (Investments Pledge
Investments (Investments Pledged as Collateral) (Details) $ in Millions | Sep. 30, 2019USD ($) |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Carrying Value Bonds On Deposit With Various State And Regulatory Agencies | $ 27.1 |
Securities Pledged As Collateral | 192.5 |
U.S. Government and Government Agencies [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Carrying Value Bonds On Deposit With Various State And Regulatory Agencies | 22.9 |
Securities Pledged As Collateral | 22.9 |
Obligations of States and Political Subdivisions [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Carrying Value Bonds On Deposit With Various State And Regulatory Agencies | 3.9 |
Securities Pledged As Collateral | 3.9 |
Corporate Securities [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Carrying Value Bonds On Deposit With Various State And Regulatory Agencies | 0.3 |
Securities Pledged As Collateral | 0.3 |
Commercial Mortgage Backed Securities [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Carrying Value Bonds On Deposit With Various State And Regulatory Agencies | 0 |
Securities Pledged As Collateral | 26.9 |
Residential Mortgage Backed Securities [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Carrying Value Bonds On Deposit With Various State And Regulatory Agencies | 0 |
Securities Pledged As Collateral | 138.5 |
Federal Home Loan Bank of Indianapolis [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Fixed Income Securities Pledged For FHLB Collateral | 64.7 |
Federal Home Loan Bank of Indianapolis [Member] | U.S. Government and Government Agencies [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Fixed Income Securities Pledged For FHLB Collateral | 0 |
Federal Home Loan Bank of Indianapolis [Member] | Obligations of States and Political Subdivisions [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Fixed Income Securities Pledged For FHLB Collateral | 0 |
Federal Home Loan Bank of Indianapolis [Member] | Corporate Securities [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Fixed Income Securities Pledged For FHLB Collateral | 0 |
Federal Home Loan Bank of Indianapolis [Member] | Commercial Mortgage Backed Securities [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Fixed Income Securities Pledged For FHLB Collateral | 7.3 |
Federal Home Loan Bank of Indianapolis [Member] | Residential Mortgage Backed Securities [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Fixed Income Securities Pledged For FHLB Collateral | 57.4 |
Federal Home Loan Bank of New York [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Fixed Income Securities Pledged For FHLB Collateral | 100.7 |
Federal Home Loan Bank of New York [Member] | U.S. Government and Government Agencies [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Fixed Income Securities Pledged For FHLB Collateral | 0 |
Federal Home Loan Bank of New York [Member] | Obligations of States and Political Subdivisions [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Fixed Income Securities Pledged For FHLB Collateral | 0 |
Federal Home Loan Bank of New York [Member] | Corporate Securities [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Fixed Income Securities Pledged For FHLB Collateral | 0 |
Federal Home Loan Bank of New York [Member] | Commercial Mortgage Backed Securities [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Fixed Income Securities Pledged For FHLB Collateral | 19.6 |
Federal Home Loan Bank of New York [Member] | Residential Mortgage Backed Securities [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Fixed Income Securities Pledged For FHLB Collateral | $ 81.1 |
Investments (Credit Concentrati
Investments (Credit Concentration Risk) (Details) | Sep. 30, 2019 | Dec. 31, 2018 |
Investments [Abstract] | ||
Maximum exposure to credit concentration risk of the Company's stockholder's equity other than certain U.S. government-backed investments | 10.00% | 10.00% |
Investments (Net Investment Inc
Investments (Net Investment Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net Investment Income [Line Items] | ||||
Net investment income earned | $ 55,826 | $ 52,443 | $ 164,949 | $ 141,227 |
Fixed Income Securities [Member] | ||||
Net Investment Income [Line Items] | ||||
Net investment income earned | 50,749 | 45,088 | 150,689 | 130,903 |
Equity Securities [Member] | ||||
Net Investment Income [Line Items] | ||||
Net investment income earned | 1,885 | 2,079 | 5,265 | 5,876 |
Short-Term Investments [Member] | ||||
Net Investment Income [Line Items] | ||||
Net investment income earned | 1,410 | 867 | 5,213 | 2,001 |
Other Investments [Member] | ||||
Net Investment Income [Line Items] | ||||
Net investment income earned | 5,267 | 7,211 | 13,421 | 10,868 |
Investment Expenses [Member] | ||||
Net Investment Income [Line Items] | ||||
Net investment income earned | $ (3,485) | $ (2,802) | $ (9,639) | $ (8,421) |
Investments (OTTI) (Details)
Investments (OTTI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Investments [Abstract] | ||||
OTTI Charges | $ 2,291 | $ 1,426 | $ 3,366 | $ 5,459 |
Investments (Components Of Net
Investments (Components Of Net Realized and Unrealized Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Gain (Loss) on Securities [Line Items] | ||||
Net realized gains (losses) on disposals of securities, fixed income securities (excluding OTTI charges) | $ 20,425 | $ (751) | $ 26,752 | $ 4,034 |
OTTI Charges | (2,291) | (1,426) | (3,366) | (5,459) |
Net realized gains (losses) | 18,134 | (2,177) | 23,386 | (1,425) |
Unrealized (losses) recognized in income on equity securities | (20,317) | (2,610) | (8,091) | (15,563) |
Net realized and unrealized investment (losses) gains | (2,183) | (4,787) | 15,295 | (16,988) |
Fixed Income Securities [Member] | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net realized gains (losses) on disposals of securities, fixed income securities (excluding OTTI charges) | (1,141) | (9,413) | 2,063 | (13,922) |
Equity Securities [Member] | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net realized gains (losses) on disposals of securities, fixed income securities (excluding OTTI charges) | 21,602 | 8,665 | 24,733 | 17,960 |
Short-Term Investments [Member] | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net realized gains (losses) on disposals of securities, fixed income securities (excluding OTTI charges) | (36) | 2 | (21) | 1 |
Other Investments [Member] | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net realized gains (losses) on disposals of securities, fixed income securities (excluding OTTI charges) | $ 0 | $ (5) | $ (23) | $ (5) |
Investments (Realized and Unrea
Investments (Realized and Unrealized Gains (Losses) on Equity Securities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Gain (Loss) on Securities [Line Items] | ||||
Unrealized gains recognized in income on equity securities on securities remaining in our portfolio at September 30, 2019 | $ 1,109 | $ 5,476 | $ 1,805 | $ 4,199 |
Unrealized (losses) recognized in income on equity securities on securities sold in each respective period | (21,426) | (8,086) | (9,896) | (19,762) |
Total unrealized (losses) recognized in income on equity securities | $ (20,317) | $ (2,610) | $ (8,091) | $ (15,563) |
Investments (Net Realized Gains
Investments (Net Realized Gains (Losses) on Disposals) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Schedule of Realized Gains (Losses) on Disposals Excluding OTTI [Line Items] | ||||
HTM fixed income securities Gains | $ 0 | $ 0 | $ 1 | $ 2 |
HTM fixed income securities Losses | 0 | 0 | (15) | 0 |
Equity securities Gains | 21,630 | 10,584 | 24,868 | 20,209 |
Equity securities Losses | (28) | (1,919) | (135) | (2,249) |
Short-term investments Gains | 2 | 3 | 18 | 6 |
Short-term investments Losses | (38) | (1) | (39) | (5) |
Other investments Gains | 0 | 0 | 7 | 0 |
Other investments Losses | 0 | (5) | (30) | (5) |
Net realized investment gains on disposals | 20,425 | (751) | 26,752 | 4,034 |
Proceeds from sale of fixed income securities, AFS | 89,700 | 444,400 | 461,825 | 1,382,677 |
Proceeds from sale of equity securities | 95,200 | 36,100 | 125,302 | 79,676 |
Fixed Maturities [Member] | ||||
Schedule of Realized Gains (Losses) on Disposals Excluding OTTI [Line Items] | ||||
AFS securities Gains | 1,078 | 462 | 5,565 | 5,056 |
AFS securities Losses | $ (2,219) | $ (9,875) | $ (3,488) | $ (18,980) |
Indebtedness (Schedule of Outst
Indebtedness (Schedule of Outstanding Debt) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | ||
Debt Instrument [Line Items] | |||||
Debt Discount and Unamortized Issuance Cost | $ 10,235 | ||||
Finance lease liabilities | 904 | [1] | $ 900 | $ 0 | [1] |
Long-term Debt | $ 550,669 | ||||
Long-term Debt | 439,540 | ||||
Five Point Three Hundred Seventy Five Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | 5.375% | ||||
Original Amount | $ 300,000 | ||||
Debt Discount and Unamortized Issuance Cost | 9,065 | ||||
Long-term Debt | $ 290,935 | ||||
Long-term Debt | 0 | ||||
Five Point Eight Hundred Seventy Five Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | 5.875% | ||||
Original Amount | $ 185,000 | ||||
Debt Discount and Unamortized Issuance Cost | 0 | ||||
Long-term Debt | $ 0 | ||||
Long-term Debt | 180,771 | ||||
Three Point Zero Three Percent Borrowing From Federal Home Loan Bank Due December 16, 2026 [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | 3.03% | ||||
Original Amount | $ 60,000 | ||||
Debt Discount and Unamortized Issuance Cost | 0 | ||||
Long-term Debt | $ 60,000 | ||||
Long-term Debt | 60,000 | ||||
One Point Fifty Six Percent Borrowing From Federal Home Loan Bank Due August 16, 2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | 1.56% | ||||
Original Amount | $ 25,000 | ||||
Debt Discount and Unamortized Issuance Cost | 0 | ||||
Long-term Debt | $ 25,000 | ||||
Long-term Debt | 25,000 | ||||
One Point Sixty One Percent Borrowing From Federal Home Loan Bank Due July 21, 2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | 1.61% | ||||
Original Amount | $ 25,000 | ||||
Debt Discount and Unamortized Issuance Cost | 0 | ||||
Long-term Debt | $ 25,000 | ||||
Long-term Debt | 25,000 | ||||
Six Point Seventy Percent Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | 6.70% | ||||
Original Amount | $ 100,000 | ||||
Debt Discount and Unamortized Issuance Cost | 889 | ||||
Long-term Debt | $ 99,111 | ||||
Long-term Debt | 99,069 | ||||
Seven Point Twenty Five Percent Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | 7.25% | ||||
Original Amount | $ 50,000 | ||||
Debt Discount and Unamortized Issuance Cost | 281 | ||||
Long-term Debt | $ 49,719 | ||||
Long-term Debt | $ 49,700 | ||||
[1] | Concurrent with the adoption of ASU 2016-02 discussed in Note 2. "Adoption of Accounting Pronouncements," finance lease obligations are now captured in Long-term debt on our Consolidated Balance Sheets. |
Indebtedness (Short Term Debt A
Indebtedness (Short Term Debt Activity) (Details) $ in Millions | Sep. 30, 2019USD ($) |
Two Point Sixty Four Percent Borrowing from Federal Home Loan Bank Due March 28, 2019 [Member] | |
Short-term Debt [Line Items] | |
Federal Home Loan Bank Advances | $ 50 |
Federal Home Loan Bank, Advances, Interest Rate | 2.64% |
Two Point Twenty Nine Percent Borrowing from Federal Home Loan Bank Due August 12, 2019 [Member] | |
Short-term Debt [Line Items] | |
Federal Home Loan Bank Advances | $ 15 |
Federal Home Loan Bank, Advances, Interest Rate | 2.29% |
Indebtedness (Long Term Debt Ac
Indebtedness (Long Term Debt Activity) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Debt Instrument [Line Items] | ||
Net Proceeds from Debt Offering | $ 355,757 | $ 130,000 |
Five Point Three Hundred Seventy Five Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 300,000 | |
Interest Rate | 5.375% | |
Debt Discount | $ 5,900 | |
Unamortized Debt Issuance Expense | 3,300 | |
Net Proceeds from Debt Offering | 290,800 | |
Proceeds from Debt Issuance, After Redemption | 106,000 | |
Five Point Eight Hundred Seventy Five Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 185,000 | |
Interest Rate | 5.875% | |
Debt Retirement Costs, Before Tax | $ 4,200 | |
Debt Retirement Costs, Net of Tax | $ 3,300 |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Values and Estimated Fair Values of Financial Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Finance lease liabilities | $ 904 | [1] | $ 900 | $ 0 | [1] |
Long-term Debt | 550,669 | ||||
Long-term Debt | 439,540 | ||||
Long-term debt, fair value | 657,267 | 448,622 | |||
Seven Point Twenty Five Percent Senior Notes [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 49,719 | ||||
Long-term Debt | 49,700 | ||||
Long-term debt, fair value | 65,770 | 57,032 | |||
Seven Point Twenty Five Percent Senior Notes [Member] | Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 49,909 | 49,907 | |||
Six Point Seventy Percent Senior Notes [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 99,111 | ||||
Long-term Debt | 99,069 | ||||
Long-term debt, fair value | 125,954 | 107,075 | |||
Six Point Seventy Percent Senior Notes [Member] | Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 99,476 | 99,462 | |||
Five Point Eight Hundred Seventy Five Senior Notes [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 0 | ||||
Long-term Debt | 180,771 | ||||
Long-term debt, fair value | 0 | 177,230 | |||
Five Point Eight Hundred Seventy Five Senior Notes [Member] | Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 0 | 185,000 | |||
Five Point Three Hundred Seventy Five Senior Notes [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 290,935 | ||||
Long-term Debt | 0 | ||||
Long-term debt, fair value | 352,156 | 0 | |||
Five Point Three Hundred Seventy Five Senior Notes [Member] | Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 294,136 | 0 | |||
One Point Sixty One Percent Borrowing From Federal Home Loan Bank Due July 21, 2021 [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 25,000 | ||||
Long-term Debt | 25,000 | ||||
Long-term debt, fair value | 24,838 | 24,218 | |||
One Point Sixty One Percent Borrowing From Federal Home Loan Bank Due July 21, 2021 [Member] | Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 25,000 | 25,000 | |||
One Point Fifty Six Percent Borrowing From Federal Home Loan Bank Due August 16, 2021 [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 25,000 | ||||
Long-term Debt | 25,000 | ||||
Long-term debt, fair value | 24,808 | 24,162 | |||
One Point Fifty Six Percent Borrowing From Federal Home Loan Bank Due August 16, 2021 [Member] | Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 25,000 | 25,000 | |||
Three Point Zero Three Percent Borrowing From Federal Home Loan Bank Due December 16, 2026 [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 60,000 | ||||
Long-term Debt | 60,000 | ||||
Long-term debt, fair value | 63,741 | 58,905 | |||
Three Point Zero Three Percent Borrowing From Federal Home Loan Bank Due December 16, 2026 [Member] | Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 60,000 | 60,000 | |||
Long Term Debt Excluding Issuance Costs and Finance Lease Obligations [Member] | Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 553,521 | 444,369 | |||
Unamortized Debt Issuance Costs [Member] | Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Unamortized debt issuance costs | $ (3,756) | $ (4,829) | |||
[1] | Concurrent with the adoption of ASU 2016-02 discussed in Note 2. "Adoption of Accounting Pronouncements," finance lease obligations are now captured in Long-term debt on our Consolidated Balance Sheets. |
Fair Value Measurements (Quanti
Fair Value Measurements (Quantitative Disclosures of Fair Value Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
AFS Fixed Income Securities | $ 5,930,237 | $ 5,273,100 | |
Equity Securities | 79,213 | 147,639 | |
Short-term investments | 326,121 | 323,864 | |
Net Asset Value | 33,200 | 37,300 | |
Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | 5,930,237 | 5,273,100 | |
Equity Securities | 79,213 | 147,639 | |
Short-term investments | 326,121 | 323,864 | |
Total assets measured at fair value | 6,335,571 | 5,744,603 | |
U.S. Government and Government Agencies [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | 120,900 | 121,310 | |
Foreign Government [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | 21,520 | 23,131 | |
Obligations of States and Political Subdivisions [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | 1,190,615 | 1,138,469 | |
Corporate Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | 1,838,927 | 1,617,408 | |
Collateralized Loan Obligations and Other Asset Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | 768,383 | 717,362 | |
Commercial Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | 555,731 | 527,078 | |
Residential Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | 1,434,161 | 1,128,342 | |
Common Stock [Member] | Fair Value, Measurements, Recurring [Member] | |||
Equity Securities | [1] | 76,179 | 144,727 |
Preferred Stock [Member] | Fair Value, Measurements, Recurring [Member] | |||
Equity Securities | 3,034 | 2,912 | |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | [2] | 41,619 | 78,381 |
Equity Securities | [2] | 46,022 | 110,309 |
Short-term investments | [2] | 319,599 | 321,370 |
Total assets measured at fair value | [2] | 407,240 | 510,060 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | U.S. Government and Government Agencies [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | [2] | 41,619 | 78,381 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Foreign Government [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | [2] | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Obligations of States and Political Subdivisions [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | [2] | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Corporate Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | [2] | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Collateralized Loan Obligations and Other Asset Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | [2] | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Commercial Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | [2] | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Residential Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | [2] | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Common Stock [Member] | Fair Value, Measurements, Recurring [Member] | |||
Equity Securities | [1],[2] | 42,988 | 107,397 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Preferred Stock [Member] | Fair Value, Measurements, Recurring [Member] | |||
Equity Securities | [2] | 3,034 | 2,912 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | [2] | 5,852,389 | 5,187,310 |
Equity Securities | [2] | 0 | 0 |
Short-term investments | [2] | 6,522 | 2,494 |
Total assets measured at fair value | [2] | 5,858,911 | 5,189,804 |
Significant Other Observable Inputs (Level 2) [Member] | U.S. Government and Government Agencies [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | [2] | 79,281 | 42,929 |
Significant Other Observable Inputs (Level 2) [Member] | Foreign Government [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | [2] | 21,520 | 23,131 |
Significant Other Observable Inputs (Level 2) [Member] | Obligations of States and Political Subdivisions [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | [2] | 1,190,615 | 1,138,469 |
Significant Other Observable Inputs (Level 2) [Member] | Corporate Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | [2] | 1,822,577 | 1,617,408 |
Significant Other Observable Inputs (Level 2) [Member] | Collateralized Loan Obligations and Other Asset Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | [2] | 748,504 | 709,953 |
Significant Other Observable Inputs (Level 2) [Member] | Commercial Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | [2] | 555,731 | 527,078 |
Significant Other Observable Inputs (Level 2) [Member] | Residential Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | [2] | 1,434,161 | 1,128,342 |
Significant Other Observable Inputs (Level 2) [Member] | Common Stock [Member] | Fair Value, Measurements, Recurring [Member] | |||
Equity Securities | [1],[2] | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Preferred Stock [Member] | Fair Value, Measurements, Recurring [Member] | |||
Equity Securities | [2] | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | 36,229 | 7,409 | |
Equity Securities | 0 | 0 | |
Short-term investments | 0 | 0 | |
Total assets measured at fair value | 36,229 | 7,409 | |
Significant Unobservable Inputs (Level 3) [Member] | U.S. Government and Government Agencies [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Foreign Government [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Obligations of States and Political Subdivisions [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Corporate Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | 16,350 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Collateralized Loan Obligations and Other Asset Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | 19,879 | 7,409 | |
Significant Unobservable Inputs (Level 3) [Member] | Commercial Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Residential Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Common Stock [Member] | Fair Value, Measurements, Recurring [Member] | |||
Equity Securities | [1] | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Preferred Stock [Member] | Fair Value, Measurements, Recurring [Member] | |||
Equity Securities | $ 0 | $ 0 | |
[1] | Investments amounting to $33.2 million at September 30, 2019 , and $37.3 million at December 31, 2018 , were measured at fair value using net asset value per share (or its practical expedient) and have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to total assets measured at fair value. | ||
[2] | There were no transfers of securities between Level 1 and Level 2. |
Fair Value Measurements (Change
Fair Value Measurements (Change in Fair Value of Securities Using Level 3 Inputs) (Details) - Available-for-sale Securities [Member] $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Corporate Securities [Member] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair value, December 31, 2018 | $ 0 |
Total net (losses) gains for the period included in OCI | (69) |
Total net (losses) gains for the period included in net income | 0 |
Purchases | 0 |
Sales | 0 |
Issuances | 0 |
Settlements | 0 |
Transfers into Level 3 | 16,419 |
Transfers out of Level 3 | 0 |
Fair value, September 30, 2019 | 16,350 |
Collateralized Loan Obligations and Other Asset Backed Securities [Member] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair value, December 31, 2018 | 7,409 |
Total net (losses) gains for the period included in OCI | (14) |
Total net (losses) gains for the period included in net income | 244 |
Purchases | 18,404 |
Sales | 0 |
Issuances | 0 |
Settlements | (105) |
Transfers into Level 3 | 13,603 |
Transfers out of Level 3 | (19,662) |
Fair value, September 30, 2019 | 19,879 |
Investments [Member] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair value, December 31, 2018 | 7,409 |
Total net (losses) gains for the period included in OCI | (83) |
Total net (losses) gains for the period included in net income | 244 |
Purchases | 18,404 |
Sales | 0 |
Issuances | 0 |
Settlements | (105) |
Transfers into Level 3 | 30,022 |
Transfers out of Level 3 | (19,662) |
Fair value, September 30, 2019 | $ 36,229 |
Fair Value Measurements (Quan_2
Fair Value Measurements (Quantitative Information of Our Financial Assets and Liabilities That Were Disclosed at Fair Value) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity securities, fair value | $ 28,356 | $ 38,317 |
Long-term debt, fair value | 657,267 | 448,622 |
Seven Point Twenty Five Percent Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 65,770 | 57,032 |
Six Point Seventy Percent Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 125,954 | 107,075 |
Five Point Three Hundred Seventy Five Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 352,156 | 0 |
Five Point Eight Hundred Seventy Five Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 0 | 177,230 |
One Point Sixty One Percent Borrowing From Federal Home Loan Bank Due July 21, 2021 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 24,838 | 24,218 |
One Point Fifty Six Percent Borrowing From Federal Home Loan Bank Due August 16, 2021 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 24,808 | 24,162 |
Three Point Zero Three Percent Borrowing From Federal Home Loan Bank Due December 16, 2026 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 63,741 | 58,905 |
Long-term Debt [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 657,267 | 448,622 |
Obligations of States and Political Subdivisions [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity securities, fair value | 9,426 | 17,969 |
Corporate Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity securities, fair value | 18,930 | 20,348 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity securities, fair value | 0 | 0 |
Long-term debt, fair value | 0 | 177,230 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Seven Point Twenty Five Percent Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Six Point Seventy Percent Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Five Point Three Hundred Seventy Five Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 0 | |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Five Point Eight Hundred Seventy Five Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 177,230 | |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | One Point Sixty One Percent Borrowing From Federal Home Loan Bank Due July 21, 2021 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | One Point Fifty Six Percent Borrowing From Federal Home Loan Bank Due August 16, 2021 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Three Point Zero Three Percent Borrowing From Federal Home Loan Bank Due December 16, 2026 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Obligations of States and Political Subdivisions [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity securities, fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Corporate Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity securities, fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity securities, fair value | 28,356 | 38,317 |
Long-term debt, fair value | 657,267 | 271,392 |
Significant Other Observable Inputs (Level 2) [Member] | Seven Point Twenty Five Percent Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 65,770 | 57,032 |
Significant Other Observable Inputs (Level 2) [Member] | Six Point Seventy Percent Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 125,954 | 107,075 |
Significant Other Observable Inputs (Level 2) [Member] | Five Point Three Hundred Seventy Five Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 352,156 | |
Significant Other Observable Inputs (Level 2) [Member] | Five Point Eight Hundred Seventy Five Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | One Point Sixty One Percent Borrowing From Federal Home Loan Bank Due July 21, 2021 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 24,838 | 24,218 |
Significant Other Observable Inputs (Level 2) [Member] | One Point Fifty Six Percent Borrowing From Federal Home Loan Bank Due August 16, 2021 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 24,808 | 24,162 |
Significant Other Observable Inputs (Level 2) [Member] | Three Point Zero Three Percent Borrowing From Federal Home Loan Bank Due December 16, 2026 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 63,741 | 58,905 |
Significant Other Observable Inputs (Level 2) [Member] | Obligations of States and Political Subdivisions [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity securities, fair value | 9,426 | 17,969 |
Significant Other Observable Inputs (Level 2) [Member] | Corporate Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity securities, fair value | 18,930 | 20,348 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity securities, fair value | 0 | 0 |
Long-term debt, fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Seven Point Twenty Five Percent Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Six Point Seventy Percent Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Five Point Three Hundred Seventy Five Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Five Point Eight Hundred Seventy Five Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | One Point Sixty One Percent Borrowing From Federal Home Loan Bank Due July 21, 2021 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | One Point Fifty Six Percent Borrowing From Federal Home Loan Bank Due August 16, 2021 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Three Point Zero Three Percent Borrowing From Federal Home Loan Bank Due December 16, 2026 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Obligations of States and Political Subdivisions [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity securities, fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Corporate Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity securities, fair value | $ 0 | $ 0 |
Reinsurance (List of Direct, As
Reinsurance (List of Direct, Assumed, and Ceded Reinsurance Amounts) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Premiums written: | ||||
Direct | $ 785,680 | $ 752,834 | $ 2,359,441 | $ 2,220,431 |
Assumed | 6,882 | 7,084 | 18,770 | 19,891 |
Ceded | (115,634) | (108,250) | (326,939) | (308,846) |
Net | 676,928 | 651,668 | 2,051,272 | 1,931,476 |
Premiums earned: | ||||
Direct | 752,872 | 706,497 | 2,221,257 | 2,086,953 |
Assumed | 6,356 | 6,484 | 18,660 | 19,220 |
Ceded | (105,608) | (98,704) | (311,105) | (295,232) |
Net | 653,620 | 614,277 | 1,928,812 | 1,810,941 |
Loss and loss expenses incurred: | ||||
Direct | 437,618 | 477,427 | 1,297,975 | 1,289,357 |
Assumed | 4,362 | 6,529 | 13,975 | 16,897 |
Ceded | (43,305) | (104,757) | (145,712) | (175,786) |
Net | $ 398,675 | $ 379,199 | 1,166,238 | $ 1,130,468 |
Fire [Member] | ||||
Loss and loss expenses incurred: | ||||
Ceded | $ (17,400) |
Reinsurance (Ceded Premiums and
Reinsurance (Ceded Premiums and Losses Related to Flood Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Ceded premiums written | $ (115,634) | $ (108,250) | $ (326,939) | $ (308,846) |
Ceded premiums earned | (105,608) | (98,704) | (311,105) | (295,232) |
Ceded loss and loss expenses incurred | (43,305) | (104,757) | $ (145,712) | (175,786) |
National Flood Insurance Program [Member] | ||||
Percentage of NFIP claims ceded by federal government | 100.00% | |||
Ceded premiums written | (74,864) | (70,100) | $ (206,451) | (193,110) |
Ceded premiums earned | (65,847) | (61,448) | (191,914) | (180,582) |
Ceded loss and loss expenses incurred | $ (27,459) | $ (89,396) | $ (62,208) | $ (115,376) |
Reserve for Loss and Loss Exp_3
Reserve for Loss and Loss Expense (Rollforward of Reserve for Loss and Loss Expense) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Gross reserve for loss and loss expense, at beginning of year | $ 3,893,868 | $ 3,771,240 |
Less: reinsurance recoverable on unpaid loss and loss expense, at beginning of year | 537,388 | 585,855 |
Net reserve for loss and loss expense, at beginning of year | 3,356,480 | 3,185,385 |
Incurred loss and loss expense for claims occurring in the current year | 1,200,878 | 1,148,032 |
Total incurred loss and loss expense | 1,166,238 | 1,130,468 |
Paid loss and loss expense for claims occurring in the current year | 384,436 | 369,036 |
Paid loss and loss expense for claims occurring in the prior years | 631,589 | 610,734 |
Total paid loss and loss expense | 1,016,025 | 979,770 |
Net reserve for loss and loss expense, at end of period | 3,506,693 | 3,336,083 |
Add: reinsurance recoverable on unpaid loss and loss expense, at end of period | 548,938 | 589,072 |
Gross reserve for loss and loss expense, at end of period | 4,055,631 | 3,925,155 |
Change in Historical Claim Rate Experience [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Prior year development | (34,640) | (17,564) |
Casualty Insurance Product Line [Member] | Change in Historical Claim Rate Experience [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Prior year development | (41,000) | (24,000) |
Property Insurance Product Line [Member] | Change in Historical Claim Rate Experience [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Prior year development | 6,400 | 6,400 |
Workers Compensation [Member] | Casualty Insurance Product Line [Member] | Change in Historical Claim Rate Experience [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Prior year development | (33,000) | (53,000) |
General Liability [Member] | Casualty Insurance Product Line [Member] | Change in Historical Claim Rate Experience [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Prior year development | (10,000) | (8,000) |
Personal Automobile [Member] | Casualty Insurance Product Line [Member] | Change in Historical Claim Rate Experience [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Prior year development | $ 2,000 | |
Commercial Automobile [Member] | Casualty Insurance Product Line [Member] | Change in Historical Claim Rate Experience [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Prior year development | 25,000 | |
Excess And Surplus Operations [Member] | Casualty Insurance Product Line [Member] | Change in Historical Claim Rate Experience [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Prior year development | $ 12,000 |
Segment Information Narrative (
Segment Information Narrative (Details) | 9 Months Ended |
Sep. 30, 2019 | |
Number of Operating Segments | 4 |
Segment Information (Revenue by
Segment Information (Revenue by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Total net premiums earned | $ 653,620 | $ 614,277 | $ 1,928,812 | $ 1,810,941 |
Miscellaneous income | 3,162 | 2,538 | 8,535 | 7,896 |
Net investment income | 55,826 | 52,443 | 164,949 | 141,227 |
Net realized and unrealized investment (losses) gains | (2,183) | (4,787) | 15,295 | (16,988) |
Total investment revenues | 53,643 | 47,656 | 180,244 | 124,239 |
Total revenues | 710,425 | 664,471 | 2,117,591 | 1,943,076 |
Standard Commercial Lines [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Miscellaneous income | 2,782 | 2,228 | 7,544 | 6,936 |
Total revenues | 517,943 | 483,284 | 1,526,538 | 1,429,368 |
Standard Commercial Lines [Member] | Commercial Automobile [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net premiums earned | 141,182 | 124,862 | 408,706 | 365,197 |
Standard Commercial Lines [Member] | Workers Compensation [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net premiums earned | 75,478 | 78,784 | 232,657 | 237,628 |
Standard Commercial Lines [Member] | General Liability [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net premiums earned | 169,084 | 154,974 | 495,402 | 457,805 |
Standard Commercial Lines [Member] | Commercial Property [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net premiums earned | 89,215 | 83,056 | 262,418 | 245,544 |
Standard Commercial Lines [Member] | Business Owners' Policies [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net premiums earned | 26,371 | 25,994 | 78,624 | 77,414 |
Standard Commercial Lines [Member] | Bonds Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net premiums earned | 8,990 | 8,778 | 26,861 | 25,247 |
Standard Commercial Lines [Member] | Other Commercial [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net premiums earned | 4,841 | 4,608 | 14,326 | 13,597 |
Standard Personal Lines [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Miscellaneous income | 380 | 310 | 991 | 959 |
Total revenues | 77,118 | 77,467 | 232,149 | 228,049 |
Standard Personal Lines [Member] | Personal Automobile [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net premiums earned | 43,226 | 42,772 | 129,777 | 125,024 |
Standard Personal Lines [Member] | Homeowners [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net premiums earned | 31,529 | 32,293 | 95,672 | 96,717 |
Standard Personal Lines [Member] | Other Personal [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net premiums earned | 1,983 | 2,092 | 5,709 | 5,349 |
Excess And Surplus Operations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Miscellaneous income | 0 | 0 | 0 | 1 |
Total revenues | 61,721 | 56,064 | 178,660 | 161,420 |
Excess And Surplus Operations [Member] | Casualty Insurance Product Line [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net premiums earned | 47,171 | 42,179 | 136,455 | 120,098 |
Excess And Surplus Operations [Member] | Property Insurance Product Line [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net premiums earned | $ 14,550 | $ 13,885 | $ 42,205 | $ 41,321 |
Segment Information (Income Bef
Segment Information (Income Before and After Federal Income Tax) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Net investment income | $ 55,826 | $ 52,443 | $ 164,949 | $ 141,227 |
Net realized and unrealized investment (losses) gains | (2,183) | (4,787) | 15,295 | (16,988) |
Total investment income, before federal income tax | 53,643 | 47,656 | 180,244 | 124,239 |
Tax on investment income | 10,884 | 8,562 | 34,733 | 21,405 |
Total investment income, after federal income tax | 42,759 | 39,094 | 145,511 | 102,834 |
Standard Commercial Lines [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Underwriting gain (loss), before federal income tax | 30,016 | 26,333 | 92,974 | 74,153 |
Underwriting gain (loss), after federal income tax | $ 23,713 | $ 20,803 | $ 73,450 | $ 58,581 |
Combined ratio | 94.20% | 94.50% | 93.90% | 94.80% |
ROE Contribution | 4.50% | 4.90% | 5.00% | 4.50% |
Standard Personal Lines [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Underwriting gain (loss), before federal income tax | $ (631) | $ 3,158 | $ 7,074 | $ 6,457 |
Underwriting gain (loss), after federal income tax | $ (499) | $ 2,495 | $ 5,588 | $ 5,101 |
Combined ratio | 100.80% | 95.90% | 96.90% | 97.20% |
ROE Contribution | (0.10%) | 0.60% | 0.40% | 0.40% |
Excess And Surplus Operations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Underwriting gain (loss), before federal income tax | $ 1,916 | $ 3,506 | $ 9,439 | $ (4,848) |
Underwriting gain (loss), after federal income tax | $ 1,514 | $ 2,770 | $ 7,457 | $ (3,830) |
Combined ratio | 96.90% | 93.70% | 94.70% | 103.00% |
ROE Contribution | 0.30% | 0.60% | 0.50% | (0.30%) |
Investments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
ROE Contribution | 8.60% | 10.00% | 9.10% | 9.00% |
Segment Information (Reconcilia
Segment Information (Reconciliation of Segment Results to Income Before Federal Income Tax (Details)) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Investment income, before federal income tax | $ 53,643 | $ 47,656 | $ 180,244 | $ 124,239 |
Interest expense | (7,397) | (6,073) | (26,289) | (18,350) |
Corporate expenses | (6,369) | (7,450) | (28,345) | (22,065) |
Income before federal income tax | 71,178 | 67,130 | 235,097 | 159,586 |
Standard Commercial Lines [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Underwriting gain (loss), before federal income tax | 30,016 | 26,333 | 92,974 | 74,153 |
Standard Personal Lines [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Underwriting gain (loss), before federal income tax | (631) | 3,158 | 7,074 | 6,457 |
Excess And Surplus Operations [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Underwriting gain (loss), before federal income tax | 1,916 | 3,506 | 9,439 | (4,848) |
Operating Segments [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total income, before federal income tax all segments | $ 84,944 | $ 80,653 | $ 289,731 | $ 200,001 |
Retirement Plans (Components of
Retirement Plans (Components of Net Periodic Benefit Cost) (Details) - Pension Plan [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Interest cost | $ 3,376 | $ 3,095 | $ 10,129 | $ 9,285 | |
Expected return on plan assets | (5,278) | (5,681) | (15,835) | (17,044) | |
Amortization of unrecognized net actuarial loss | 644 | 494 | 1,931 | 1,481 | |
Total net periodic cost (benefit) | [1] | $ (1,258) | $ (2,092) | $ (3,775) | $ (6,278) |
[1] | The components of net periodic pension cost (benefit) are included within "Loss and loss expense incurred" and "Other insurance expenses" on the Consolidated Statements of Income. |
Retirement Plans (Weighted-Aver
Retirement Plans (Weighted-Average Expense Assumptions) (Details) - Pension Plan [Member] | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 4.46% | 3.78% |
Effective interest rate for calculation of interest cost | 4.12% | 3.46% |
Expected return on plan assets | 6.50% | 6.36% |
Comprehensive Income (Component
Comprehensive Income (Components of Comprehensive Income-Gross and Net of Tax) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net income, Gross | $ 71,178 | $ 67,130 | $ 235,097 | $ 159,586 |
Unrealized holding gains (losses) during the period, Gross | 34,392 | (21,565) | 220,864 | (130,873) |
Amounts reclassified into net income: HTM securities, Gross | (3) | (8) | (33) | (28) |
Amounts reclassified into net income: Realized losses on disposals and OTTI of AFS securities, Gross | 2,821 | 10,839 | 444 | 18,258 |
Total unrealized gains (losses) on investment securities, Gross | 37,210 | (10,734) | 221,275 | (112,643) |
Amount reclassified into net income: Net actuarial loss, Gross | 665 | 532 | 1,993 | 1,595 |
Total defined pension and other post-retirement benefit plans, Gross | 665 | 532 | 1,993 | 1,595 |
Other comprehensive income (loss), Gross | 37,875 | (10,202) | 223,268 | (111,048) |
Comprehensive income before tax | 109,053 | 56,928 | 458,365 | 48,538 |
Net income, Tax | 15,028 | 11,695 | 45,333 | 26,407 |
Unrealized holding gains (losses) during the period, Tax | 7,224 | (4,529) | 46,381 | (27,484) |
Amounts reclassified into net income: HTM securities, Tax | (1) | (2) | (7) | (6) |
Amounts reclassified into net income: Realized losses on disposals and OTTI of AFS securities, Tax | 592 | 2,276 | 93 | 3,834 |
Total unrealized gains (losses) on investment securities, Tax | 7,815 | (2,255) | 46,467 | (23,656) |
Amount reclassified into net income: Net actuarial loss, Tax | 140 | 112 | 419 | 335 |
Total defined pension and other post-retirement benefit plans, Tax | 140 | 112 | 419 | 335 |
Other comprehensive income (loss), Tax | 7,955 | (2,143) | 46,886 | (23,321) |
Comprehensive income, Tax | 22,983 | 9,552 | 92,219 | 3,086 |
Net income | 56,150 | 55,435 | 189,764 | 133,179 |
Unrealized holding gains (losses) arising during period | 27,168 | (17,036) | 174,483 | (103,389) |
Amounts reclassified into net income: HTM Securities | (2) | (6) | (26) | (22) |
Amounts reclassified into net income: Realized losses on disposals and OTTI of available-for-sale securities | 2,229 | 8,563 | 351 | 14,424 |
Total unrealized gains (losses) on investment securities | 29,395 | (8,479) | 174,808 | (88,987) |
Amount reclassified into net income: Net actuarial loss | 525 | 420 | 1,574 | 1,260 |
Total defined benefit pension and post-retirement plans | 525 | 420 | 1,574 | 1,260 |
Other comprehensive income (loss) | 29,920 | (8,059) | 176,382 | (87,727) |
Comprehensive income | $ 86,070 | $ 47,376 | $ 366,146 | $ 45,452 |
Comprehensive Income (Compone_2
Comprehensive Income (Components of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance, December 31, 2018 | $ (77,956) | |||
Amounts reclassified from AOCI, Non-credit OTTI | 0 | |||
Amounts reclassified from AOCI, HTM related | $ (2) | $ (6) | (26) | $ (22) |
Amounts reclassified from AOCI, All Other | 2,229 | 8,563 | 351 | 14,424 |
OCI before reclassifications, Defined Benefit Pension and Post Retirement Plans | 0 | |||
Amount reclassified into net income: Net actuarial loss | 525 | 420 | 1,574 | 1,260 |
Other comprehensive income (loss) | 29,920 | (8,059) | 176,382 | (87,727) |
Other comprehensive income, defined pension and post retirement plans | 525 | 420 | 1,574 | 1,260 |
Ending Balance, September 30, 2019 | 98,426 | 98,426 | ||
Available-for-sale Securities [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance, December 31, 2018 | 1,888 | |||
OCI before reclassifications | 174,483 | |||
Other comprehensive income (loss) | 174,834 | |||
Ending Balance, September 30, 2019 | 176,722 | 176,722 | ||
Investments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance, December 31, 2018 | 1,888 | |||
OCI before reclassifications | 174,483 | |||
Amounts reclassified from AOCI | 325 | |||
Other comprehensive income (loss) | 174,808 | |||
Ending Balance, September 30, 2019 | 176,696 | 176,696 | ||
Accumulated Other-than-Temporary Impairment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance, December 31, 2018 | (71) | |||
OCI before reclassifications | 0 | |||
Other comprehensive income (loss) | 0 | |||
Ending Balance, September 30, 2019 | (71) | (71) | ||
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Held-to-maturity Securities [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance, December 31, 2018 | 71 | |||
OCI before reclassifications | 0 | |||
Other comprehensive income (loss) | (26) | |||
Ending Balance, September 30, 2019 | 45 | 45 | ||
Accumulated Defined Benefit Plans Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance, December 31, 2018 | (79,844) | |||
Amount reclassified into net income: Net actuarial loss | 1,574 | |||
Ending Balance, September 30, 2019 | (78,270) | (78,270) | ||
Accumulated other comprehensive income (loss) [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance, December 31, 2018 | (77,956) | |||
OCI before reclassifications | 174,483 | |||
Amounts reclassified from AOCI | 1,899 | |||
Other comprehensive income (loss) | 29,920 | $ (8,059) | 176,382 | $ (87,727) |
Ending Balance, September 30, 2019 | $ 98,426 | $ 98,426 |
Comprehensive Income (Reclassif
Comprehensive Income (Reclassification out of AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net realized and unrealized investment (losses) gains | $ (2,183) | $ (4,787) | $ 15,295 | $ (16,988) |
Net investment income | (55,826) | (52,443) | (164,949) | (141,227) |
Loss and loss expense incurred | 398,675 | 379,199 | 1,166,238 | 1,130,468 |
Other insurance expenses | 90,234 | 80,108 | 261,975 | 244,342 |
Income before federal income tax | 71,178 | 67,130 | 235,097 | 159,586 |
Total federal income tax expense | (15,028) | (11,695) | (45,333) | (26,407) |
Net income | 56,150 | 55,435 | 189,764 | 133,179 |
Reclassification out of AOCI | ||||
Net income | 2,752 | 8,977 | 1,899 | 15,662 |
Pension Plan [Member] | Reclassification out of AOCI | ||||
Loss and loss expense incurred | 146 | 112 | 436 | 337 |
Other insurance expenses | 519 | 420 | 1,557 | 1,258 |
Income before federal income tax | 665 | 532 | 1,993 | 1,595 |
Total federal income tax expense | (140) | (112) | (419) | (335) |
Net income | 525 | 420 | 1,574 | 1,260 |
Held-to-maturity Securities [Member] | Reclassification out of AOCI | ||||
Net realized and unrealized investment (losses) gains | (3) | 11 | (12) | 5 |
Net investment income | 0 | (19) | (21) | (33) |
Income before federal income tax | (3) | (8) | (33) | (28) |
Total federal income tax expense | 1 | 2 | 7 | 6 |
Net income | (2) | (6) | (26) | (22) |
Available-for-sale Securities [Member] | Reclassification out of AOCI | ||||
Net realized and unrealized investment (losses) gains | 2,821 | 10,839 | 444 | 18,258 |
Income before federal income tax | 2,821 | 10,839 | 444 | 18,258 |
Total federal income tax expense | (592) | (2,276) | (93) | (3,834) |
Net income | $ 2,229 | $ 8,563 | $ 351 | $ 14,424 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Operating lease right-of-use asset | $ 28,348 | $ 20,700 | |||||
Operating lease liability | 29,218 | 21,000 | |||||
Finance lease right-of-use asset | 899 | 900 | |||||
Finance lease liabilities | 904 | [1] | 900 | $ 0 | [1] | ||
Retained Earnings [Member] | Accounting Standards Update 2016-02 [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative effect of new accounting principle in period of adoption | $ 0 | $ 300 | $ 342 | $ 0 | $ 0 | ||
[1] | Concurrent with the adoption of ASU 2016-02 discussed in Note 2. "Adoption of Accounting Pronouncements," finance lease obligations are now captured in Long-term debt on our Consolidated Balance Sheets. |
Leases (Components of Lease Exp
Leases (Components of Lease Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Lease Expense [Line Items] | ||
Operating lease cost | $ 2,234 | $ 6,631 |
Finance lease cost: Amortization of assets | 217 | 816 |
Finance lease cost: Interest on lease liabilities | 5 | 12 |
Total finance lease cost | 222 | 828 |
Variable lease cost | (548) | 120 |
Short-term lease cost | $ 502 | $ 1,677 |
Leases (Supplemental Lease Info
Leases (Supplemental Lease Information) (Details) | Sep. 30, 2019 | |
Supplemental Lease Information [Line Items] | ||
Weighted average remaining lease term, operating leases | 6 years | |
Weighted average remaining lease term, finance leases | 2 years | |
Weighted average discount rate, operating leases | 3.40% | |
Weighted average discount rate, finance leases | 2.00% | [1] |
[1] | Prior to adoption of ASU 2016-02, our historical capital lease liability and asset were measured using an un-discounted cash flow stream due to immateriality of the capital lease population. |
Leases (Lease Assets and Liabil
Leases (Lease Assets and Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | [1] | |
Lease Assets and Liabilities [Line Items] | |||||
Operating leases, Other assets | $ 28,348 | $ 20,700 | |||
Operating leases, Other liabilities | 29,218 | 21,000 | |||
Finance leases, Property and equipment - at cost, net of accumulated depreciation and amortization | 899 | 900 | |||
Finance leases, Long-term debt | $ 904 | [1] | $ 900 | $ 0 | |
[1] | Concurrent with the adoption of ASU 2016-02 discussed in Note 2. "Adoption of Accounting Pronouncements," finance lease obligations are now captured in Long-term debt on our Consolidated Balance Sheets. |
Leases (Maturities of Lease Lia
Leases (Maturities of Lease Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | ||
Lease Liabilities Payments Due [Line Items] | |||||
Finance Lease Liability, due remainder of fiscal year | $ 171 | ||||
Finance lease liability, due 2020 | 451 | ||||
Finance lease liability, due 2021 | 248 | ||||
Finance lease liability, due 2022 | 54 | ||||
Finance lease liability, due 2023 | 0 | ||||
Finance lease liability, due after 2023 | 0 | ||||
Finance lease liability, total payments | 924 | ||||
Finance lease imputed interest | 20 | ||||
Finance Lease Liability Not Yet Commenced | 0 | ||||
Finance lease liabilities | 904 | [1] | $ 900 | $ 0 | [1] |
Operating lease liability, due remainder of fiscal year | 2,071 | ||||
Operating lease liability, due 2020 | 8,164 | ||||
Operating lease liability, due 2021 | 6,033 | ||||
Operating lease liability, due 2022 | 4,443 | ||||
Operating lease liability, due 2023 | 3,232 | ||||
Operating lease liability, due after 2023 | 11,446 | ||||
Operating lease liability, total payments | 35,389 | ||||
Operating lease imputed interest | 3,230 | ||||
Operating Lease Liability Not Yet Commenced | 2,941 | ||||
Operating lease liability | 29,218 | $ 21,000 | |||
Total lease liability, due remainder of fiscal year | 2,242 | ||||
Total lease liability, due 2020 | 8,615 | 8,490 | |||
Total lease liability, due 2021 | 6,281 | 7,496 | |||
Total lease liability, due 2022 | 4,497 | 5,105 | |||
Total lease liability, due 2023 | 3,232 | 3,641 | |||
Total lease liability, due after 2023 | 11,446 | 9,698 | |||
Total lease liability, total payments | 36,313 | $ 37,330 | |||
Total imputed interest | 3,250 | ||||
Total Lease Liability Not Yet Commenced | 2,941 | ||||
Total lease liability | $ 30,122 | ||||
[1] | Concurrent with the adoption of ASU 2016-02 discussed in Note 2. "Adoption of Accounting Pronouncements," finance lease obligations are now captured in Long-term debt on our Consolidated Balance Sheets. |
Leases (Schedule of Future Mini
Leases (Schedule of Future Minimum Rental Payments Prior Year) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Capital leases, due 2019 | $ 728 | |
Capital leases, due 2020 | 141 | |
Capital leases, due 2021 | 22 | |
Capital leases, due 2022 | 0 | |
Capital leases, due 2023 | 0 | |
Capital leases, due after 2023 | 0 | |
Total capital lease payments | 891 | |
Operating leases, due 2019 | 7,762 | |
Operating leases, due 2020 | 7,355 | |
Operating leases, due 2021 | 5,083 | |
Operating leases, due 2022 | 3,641 | |
Operating leases, due 2023 | 2,900 | |
Operating leases, due after 2023 | 9,698 | |
Total operating lease payments | 36,439 | |
Total leases, due 2019 | $ 8,615 | 8,490 |
Total leases, due 2020 | 6,281 | 7,496 |
Total leases, due 2021 | 4,497 | 5,105 |
Total leases, due 2022 | 3,232 | 3,641 |
Total leases, due 2023 | 2,900 | |
Total leases, due after 2023 | 11,446 | 9,698 |
Total lease payments | $ 36,313 | $ 37,330 |