Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 16, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
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 | |
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 | 60,024,254 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000230557 | |
Current Fiscal Year End Date | --12-31 | |
Noncumulative Preferred Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/1,000th interest in a share of 4.60% Non-Cumulative Preferred Stock, Series B, without par value | |
Trading Symbol | SIGIP | |
Security Exchange Name | NASDAQ | |
Common Stock [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $2 per share | |
Trading Symbol | SIGI | |
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Fixed income securities, held-to-maturity, carrying value, Gross | $ 24,370 | $ 16,846 |
Fixed income securities, held-to-maturity, allowance for credit losses | (26) | (22) |
Total HTM fixed income securities carrying value | 24,344 | 16,824 |
Fixed income securities, available-for-sale, at fair value | 6,521,641 | 6,455,928 |
Commercial mortgage loans, carrying value, Gross | 61,066 | 46,306 |
Less: allowance for credit losses | 0 | 0 |
Commercial mortgage loans, net of allowance for credit losses | 61,066 | 46,306 |
Equity Securities, fair value | 324,255 | 310,367 |
Short-term investments | 337,807 | 409,852 |
Other investments | 290,153 | 266,322 |
Total investments (Note 4 and 5) | 7,559,266 | 7,505,599 |
Cash | 488 | 394 |
Restricted cash | 8,428 | 14,837 |
Interest and dividends due or accrued | 46,072 | 45,004 |
Premiums receivable | 916,196 | 857,014 |
Less: allowance for credit losses (Note 6) | (21,000) | (21,000) |
Premiums receivable, net of allowance for credit losses | 895,196 | 836,014 |
Reinsurance recoverable | 582,696 | 589,269 |
Allowance for credit losses | (1,840) | (1,777) |
Reinsurance recoverables, net of allowance for credit losses | 580,856 | 587,492 |
Prepaid reinsurance premiums | 168,575 | 170,531 |
Property and equipment, at cost, net of accumulated depreciation and amortization | 76,096 | 77,696 |
Deferred policy acquisition costs | 302,652 | 288,578 |
Goodwill | 7,849 | 7,849 |
Other assets | 203,134 | 153,919 |
Total assets | 9,848,612 | 9,687,913 |
Liabilities And Stockholders' Equity | ||
Reserve for loss and loss expense (Note 8) | 4,360,188 | 4,260,355 |
Unearned premiums | 1,689,533 | 1,618,271 |
Long-term Debt | 550,904 | 550,743 |
Current federal income tax | 41,983 | 14,021 |
Deferred federal income tax | 2,311 | 27,096 |
Accrued salaries and benefits | 83,652 | 114,868 |
Other liabilities | 375,996 | 363,670 |
Total liabilities | 7,104,567 | 6,949,024 |
Stockholders' Equity: | ||
Preferred stock of $0 par value per share: Authorized shares 5,000,000; Issued shares: 8,000 with $25,000 liquidation preference per share - 2021 and 2020 | 200,000 | 200,000 |
Common stock of $2 par value per share: Authorized shares 360,000,000; Issued: 104,287,791 - 2021; 104,032,912 - 2020 | 208,576 | 208,066 |
Additional paid-in capital | 446,410 | 438,985 |
Retained Earnings | 2,363,189 | 2,271,537 |
Accumulated Other Comprehensive Income (Note 11) | 134,600 | 220,186 |
Treasury Stock, at cost. Shares: 44,263,908 - 2021; 44,127,109 - 2020. (Note 12) | (608,730) | (599,885) |
Total stockholders' equity | 2,744,045 | 2,738,889 |
Commitments and contingencies | ||
Total liabilities and stockholders' equity | $ 9,848,612 | $ 9,687,913 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues: | ||
Net premiums earned | $ 724,960 | $ 651,703 |
Net investment income earned | 69,716 | 55,967 |
Net realized and unrealized investment gains (losses) | 5,119 | (44,666) |
Other income | 4,112 | 1,825 |
Total revenues | 803,907 | 664,829 |
Expenses: | ||
Loss and loss expense incurred | 413,401 | 400,324 |
Amortization of deferred policy acquisition costs | 149,051 | 136,501 |
Other insurance expenses | 88,910 | 95,346 |
Interest expense | 7,359 | 7,601 |
Corporate expenses | 9,554 | 9,060 |
Total expenses | 668,275 | 648,832 |
Income before federal income tax | 135,632 | 15,997 |
Federal income tax expense: | ||
Current | 28,424 | 9,886 |
Deferred | (2,062) | (9,125) |
Total federal income tax expense | 26,362 | 761 |
Net income | 109,270 | 15,236 |
Preferred stock dividends | 2,453 | 0 |
Net Income available to common stockholders | $ 106,817 | $ 15,236 |
Earnings per common share: | ||
Net income available to common stockholders - Basic | $ 1.78 | $ 0.26 |
Net income available to common stockholders - Diluted | $ 1.77 | $ 0.25 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net income | $ 109,270 | $ 15,236 |
Unrealized holding losses arising during period | (81,613) | (74,245) |
Unrealized losses on securities with credit loss recognized in earnings | (8,943) | (51,658) |
Amounts reclassified into net income: Held-to-maturity securities | (2) | 20 |
Amounts reclassified into net income: Net realized losses on disposals and intent-to-sell AFS securities | 477 | 8,948 |
Amounts reclassified into net income: Credit loss expense | 3,948 | 12,472 |
Total Unrealized Losses on Investment Securities, Net | (86,133) | (104,463) |
Amount reclassified into net income: Net actuarial loss | 547 | 596 |
Total defined benefit pension and post-retirement plans, Net | 547 | 596 |
Other Comprehensive loss, Net | (85,586) | (103,867) |
Comprehensive Income (Loss), Net | $ 23,684 | $ (88,631) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional paid-in capital [Member] | Retained Earnings [Member] | Retained Earnings [Member]Accounting Standards Update 2016-13 [Member] | Retained Earnings [Member]Cumulative Effect, Period of Adoption, Adjustment | Accumulated other comprehensive income (loss) [Member] | Treasury stock [Member] | Preferred Stock |
Preferred Stock, Shares Outstanding | 0 | ||||||||
Beginning of year at Dec. 31, 2019 | $ 206,968 | $ 418,521 | $ 2,080,529 | $ 1,435 | $ 2,081,964 | $ 81,750 | $ (592,832) | $ 0 | |
Issuance of preferred stock | 0 | ||||||||
Dividend reinvestment plan | 14 | 408 | |||||||
Stock purchase and compensation plans | 683 | 8,399 | |||||||
Net income | $ 15,236 | 15,236 | |||||||
Dividends to preferred stockholders | 0 | ||||||||
Dividends to common stockholders | (13,860) | ||||||||
Other comprehensive loss | (103,867) | (103,867) | |||||||
Acquisition of treasury stock - share repurchase authorization | 0 | ||||||||
Acquisition of treasury stock - shares acquired related to employee-share based compensation plans | (6,928) | ||||||||
End of period at Mar. 31, 2020 | $ 2,096,456 | 207,665 | 427,328 | 2,083,340 | (22,117) | (599,760) | $ 0 | ||
Dividends declared per share to preferred stockholders | $ 0 | ||||||||
Dividends declared per share to common stockholders | $ 0.23 | ||||||||
Stock Issued During Period, Shares, New Issues | 0 | ||||||||
Common stock, shares outstanding, beginning of period at Dec. 31, 2019 | 59,461,153 | ||||||||
Dividend reinvestment plan, shares | 6,975 | ||||||||
Stock purchase and compensation plan, shares | 341,236 | ||||||||
Acquisition of treasury stock, share repurchase authorization | 0 | ||||||||
Acquisition of treasury stock - shares acquired related to employee share-based compensation plans | (101,819) | ||||||||
Common stock, shares outstanding, end of period at Mar. 31, 2020 | 59,707,545 | ||||||||
Preferred Stock, Shares Outstanding | 0 | ||||||||
Preferred Stock, Shares Outstanding | 8,000 | ||||||||
Beginning of year at Dec. 31, 2020 | $ 2,738,889 | 208,066 | 438,985 | 2,271,537 | $ 0 | $ 2,271,537 | 220,186 | (599,885) | $ 200,000 |
Issuance of preferred stock | 0 | ||||||||
Dividend reinvestment plan | 13 | 429 | |||||||
Stock purchase and compensation plans | 497 | 6,996 | |||||||
Net income | 109,270 | 109,270 | |||||||
Dividends to preferred stockholders | (2,453) | ||||||||
Dividends to common stockholders | (15,165) | ||||||||
Other comprehensive loss | (85,586) | (85,586) | |||||||
Acquisition of treasury stock - share repurchase authorization | (3,400) | (3,404) | |||||||
Acquisition of treasury stock - shares acquired related to employee-share based compensation plans | (5,441) | ||||||||
End of period at Mar. 31, 2021 | $ 2,744,045 | $ 208,576 | $ 446,410 | $ 2,363,189 | $ 134,600 | $ (608,730) | $ 200,000 | ||
Dividends declared per share to preferred stockholders | $ 306.67 | ||||||||
Dividends declared per share to common stockholders | $ 0.25 | ||||||||
Stock Issued During Period, Shares, New Issues | 0 | ||||||||
Common stock, shares outstanding, beginning of period at Dec. 31, 2020 | 59,905,803 | ||||||||
Dividend reinvestment plan, shares | 6,420 | ||||||||
Stock purchase and compensation plan, shares | 248,459 | ||||||||
Acquisition of treasury stock, share repurchase authorization | (52,781) | ||||||||
Acquisition of treasury stock - shares acquired related to employee share-based compensation plans | (84,018) | ||||||||
Common stock, shares outstanding, end of period at Mar. 31, 2021 | 60,023,883 | ||||||||
Preferred Stock, Shares Outstanding | 8,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating Activities | ||
Net income | $ 109,270 | $ 15,236 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 13,703 | 15,415 |
Stock-based compensation expense | 6,493 | 7,038 |
Undistributed gains of equity method investments | (13,905) | (5,602) |
Distributions in excess of current year income of equity method investments | 2,309 | 614 |
Net realized and unrealized (gains) losses | (5,119) | 44,666 |
Loss on disposal of fixed assets | 3 | 14 |
Changes in assets and liabilities: | ||
Increase in reserve for loss and loss expense, net of reinsurance recoverable | 106,468 | 49,077 |
Increase (decrease) in unearned premiums, net of prepaid reinsurance | 73,218 | (4,376) |
Increase in net federal income taxes | 25,927 | 276 |
(Increase) decrease in premiums receivable | (59,182) | 25,572 |
(Increase) decrease in deferred policy acquisition costs | (14,074) | 1,605 |
(Increase) decrease in interest and dividends due or accrued | (1,101) | 880 |
Decrease in accrued salaries and benefits | (31,216) | (52,722) |
(Increase) decrease in other assets | (14,302) | 4,583 |
Decrease in other liabilities | (68,236) | (62,959) |
Net Cash Provided by Operating Activities | 130,256 | 39,317 |
Investing Activities | ||
Purchase of fixed income securities, held-to-maturity | (9,000) | 0 |
Purchase of fixed income securities, available-for-sale | (671,909) | (319,539) |
Purchase of commercial mortgage loans | (14,860) | (14,096) |
Purchase of equity securities | (48,910) | (45,511) |
Purchase of other investments | (18,589) | (27,433) |
Purchase of short-term investments | (1,723,212) | (2,086,599) |
Sale of fixed income securities, available-for-sale | 212,891 | 101,671 |
Proceeds from commercial mortgage loans | 99 | 0 |
Sale of short-term investments | 1,795,239 | 1,851,532 |
Redemption and maturities of fixed income securities, held-to-maturity | 1,461 | 405 |
Redemption and maturities of fixed income securities, available-for-sale | 319,469 | 227,686 |
Sale of equity securities | 42,782 | 1,320 |
Sale of other investments | 3,004 | 0 |
Distributions from other investments | 5,162 | 3,152 |
Purchase of property and equipment | (4,561) | (8,416) |
Net Cash Used in Investing Activities | (110,934) | (315,828) |
Financing Activities | ||
Dividends to preferred stockholders | (2,453) | 0 |
Dividends to common stockholders | (14,569) | (13,313) |
Acquisition of treasury stock | (8,845) | (6,928) |
Net proceeds from stock purchase and compensation plans | 824 | 1,525 |
Preferred stock issued, net of issuance costs | (479) | 0 |
Proceeds from borrowings | 0 | 387,000 |
Repayments of borrowings | 0 | (85,000) |
Repayments of finance lease obligations | (115) | (142) |
Net Cash (used in) provided by Financing Activities | (25,637) | 283,142 |
Cash and restricted cash, beginning of year | 15,231 | 7,975 |
Cash and restricted cash, end of period | 8,916 | 14,606 |
Net (decrease) increase in cash and restricted cash | $ (6,315) | $ 6,631 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Fixed income securities, held-to-maturity, fair value | $ 25,204 | $ 18,001 |
Fixed Income Securities, Available-for-sale, Allowance for Credit Loss | (8,781) | (3,969) |
Fixed income securities, available-for-sale, amortized cost | 6,253,077 | 6,073,517 |
Commercial mortgage loan, fair value | 62,233 | 47,289 |
Equity Securities, cost | 304,159 | 301,551 |
Property and equipment, accumulated depreciation and amortization | $ 245,844 | $ 240,150 |
Preferred Stock, Shares Outstanding | 8,000 | 8,000 |
Preferred Stock | ||
Preferred stock, Par or Stated Value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Series B | ||
Preferred Stock, Liquidation Preference (in dollars per share) | $ 25,000 | $ 25,000 |
Preferred stock, shares issued | 8,000 | 8,000 |
Preferred Stock, Shares Outstanding | 8,000 | 8,000 |
Common Stock [Member] | ||
Common stock, Par or Stated Value (in dollars per share) | $ 2 | $ 2 |
Common stock, shares authorized | 360,000,000 | 360,000,000 |
Common stock, shares issued | 104,287,791 | 104,032,912 |
Treasury stock [Member] | ||
Treasury stock, shares | 44,263,908 | 44,127,109 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Basis of Presentation And Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of PresentationThe words "Company,” “we,” “us,” or “our” refer to Selective Insurance Group, Inc. (the "Parent") and its subsidiaries, except as expressly indicated or the context requires otherwise. We have prepared our interim unaudited consolidated financial statements (“Financial Statements”) 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. These require us to make estimates and assumptions that affect the reported financial statement balances and 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 first quarters ended March 31, 2021 (“First Quarter 2021”) and March 31, 2020 (“First Quarter 2020”). Our Financial Statements do not include all information and disclosures required by GAAP and the SEC for audited annual financial statements. Because results of operations for any interim period are not necessarily indicative of results for a full year, 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, 2020 (“2020 Annual Report”) filed with the SEC. |
Accounting Pronouncements
Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Accounting Pronouncements | Adoption of Accounting Pronouncements In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2019-12, Income Taxes - Simplifying the Accounting for Income Taxes (“ASU 2019-12”). Among other items, ASU 2019-12 simplifies the accounting treatment of tax law changes and year-to-date losses in interim periods. An entity generally recognizes the effects of a change in tax law in the period of enactment; however, there is an exception for tax laws with delayed effective dates. Under current guidance, an entity may not adjust its annual effective tax rate for a tax law change until the period in which the law is effective. ASU 2019-12 provides that all effects of a tax law change, including adjustment of the estimated annual effective tax rate, are recognized in the period of enactment. For year-to-date losses in interim periods, an entity is required currently to estimate its annual effective tax rate for the full fiscal year at the end of each interim period and use that rate to calculate its income taxes on a year-to-date basis. When an interim period loss exceeds the anticipated loss for the year, the income tax benefit is limited to the amount that would be recognized if the year-to-date loss were the anticipated loss for the full year. ASU 2019-12 removes this limitation and an entity would compute its income tax benefit at each interim period based on its estimated annual effective tax rate. We adopted this guidance on January 1, 2021, and it did not have a material impact to our financial condition, cash flows, or results of operations. Pronouncements to be effective in the future In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). ASU 2020-04 provides optional expedients and exceptions to the guidance in GAAP on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition away from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates. Companies can elect to adopt ASU 2020-04 as of the beginning of the interim period that includes March 2020, or any date thereafter through December 31, 2022. We are currently evaluating the impact of this guidance on our financial condition and results of operations. |
Statements of Cash Flows
Statements of Cash Flows | 3 Months Ended |
Mar. 31, 2021 | |
Supplemental Cash Flow Information [Abstract] | |
Statements of Cash Flows | Statements of Cash Flows Supplemental cash flow information was as follows: Quarter ended March 31, ($ in thousands) 2021 2020 Cash paid during the period for: Interest $ 8,722 8,854 Federal income tax — — Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 2,226 2,130 Operating cash flows from financing leases 2 6 Financing cash flows from finance leases 115 142 Non-cash items: Corporate actions related to fixed income securities, AFS 1 26,085 8,040 Corporate actions related to fixed income securities, HTM 1 — 2,596 Assets acquired under finance lease arrangements 183 29 Assets acquired under operating lease arrangements 16 3,828 Non-cash purchase of property and equipment 3 5 1 Examples of 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) March 31, 2021 December 31, 2020 Cash $ 488 394 Restricted cash 8,428 14,837 Total cash and restricted cash shown in the Statements of Cash Flows $ 8,916 15,231 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 | 3 Months Ended |
Mar. 31, 2021 | |
Investments [Abstract] | |
Investments | Investments (a) Information about our AFS securities as of March 31, 2021, and December 31, 2020, is as follows: March 31, 2021 ($ in thousands) Cost/ Allowance for Credit Losses Unrealized Unrealized Fair AFS fixed income securities: U.S. government and government agencies $ 134,725 — 3,653 (2,104) 136,274 Foreign government 18,920 (56) 974 (136) 19,702 Obligations of states and political subdivisions 1,140,442 (201) 74,212 (360) 1,214,093 Corporate securities 2,239,066 (6,166) 122,761 (9,870) 2,345,791 Collateralized loan obligations ("CLO") and other asset-backed securities ("ABS") 1,188,670 (1,470) 18,917 (4,052) 1,202,065 Residential mortgage-backed securities ("RMBS") 906,266 (864) 43,367 (1,229) 947,540 Commercial mortgage-backed securities ("CMBS") 624,988 (24) 33,590 (2,378) 656,176 Total AFS fixed income securities $ 6,253,077 (8,781) 297,474 (20,129) 6,521,641 December 31, 2020 ($ in thousands) Cost/ Allowance for Credit Losses Unrealized Unrealized Fair AFS fixed income securities: U.S. government and government agencies $ 110,038 — 6,239 (137) 116,140 Foreign government 16,801 (1) 1,569 (3) 18,366 Obligations of states and political subdivisions 1,159,588 (4) 87,564 (11) 1,247,137 Corporate securities 2,152,203 (2,782) 180,971 (2,340) 2,328,052 CLO and other ABS 1,014,820 (592) 20,166 (7,843) 1,026,551 RMBS 999,485 (561) 53,065 (201) 1,051,788 CMBS 620,582 (29) 48,348 (1,007) 667,894 Total AFS fixed income securities $ 6,073,517 (3,969) 397,922 (11,542) 6,455,928 The following tables provide a roll forward of the allowance for credit losses on our AFS fixed income securities for the periods indicated: Quarter ended March 31, 2021 ($ in thousands) Beginning Balance Current Provision for Securities without Prior Allowance Increase (Decrease) on Securities with Prior Allowance, excluding intent (or Requirement) to Sell Securities Reductions for Securities Sold Reductions for Securities Identified as Intent (or Requirement) to Sell during the Period Ending Balance Foreign government $ 1 56 (1) — — 56 Obligations of states and political subdivisions 4 186 11 — — 201 Corporate securities 2,782 4,058 (527) (147) — 6,166 CLO and other ABS 592 1,001 (106) (17) — 1,470 RMBS 561 356 (39) (14) — 864 CMBS 29 10 (15) — — 24 Total AFS fixed income securities $ 3,969 5,667 (677) (178) — 8,781 Quarter ended March 31, 2020 ($ in thousands) Beginning Balance Current Provision for Securities without Prior Allowance Increase (Decrease) on Securities with Prior Allowance, excluding intent (or Requirement) to Sell Securities Reductions for Securities Sold Reductions for Securities Identified as Intent (or Requirement) to Sell during the Period Ending Balance Foreign government $ — 21 — — — 21 Obligations of states and political subdivisions — 29 — — — 29 Corporate securities — 13,412 — — — 13,412 CLO and other ABS — 1,565 — — — 1,565 RMBS — 722 — — — 722 CMBS — 38 — — — 38 Total AFS fixed income securities $ — 15,787 — — — 15,787 For information on our methodology and significant inputs used to measure the amount related to credit loss, our accounting policy for recognizing write-offs of uncollectible amounts, and our treatment of accrued interest, refer to Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2020 Annual Report. Accrued interest on AFS securities was $44.7 million as of March 31, 2021, and $43.8 million as of December 31, 2020. We did not record any write-offs during 2021 or 2020. (b) Quantitative information about unrealized losses on our AFS portfolio is provided below. March 31, 2021 Less than 12 months 12 months or longer Total ($ in thousands) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized AFS fixed income securities: U.S. government and government agencies $ 53,796 (2,104) — — 53,796 (2,104) Foreign government 3,313 (136) — — 3,313 (136) Obligations of states and political subdivisions 18,838 (352) 369 (8) 19,207 (360) Corporate securities 306,052 (8,560) 14,025 (1,310) 320,077 (9,870) CLO and other ABS 282,939 (1,737) 105,261 (2,315) 388,200 (4,052) RMBS 76,684 (1,229) — — 76,684 (1,229) CMBS 70,510 (2,089) 23,474 (289) 93,984 (2,378) Total AFS fixed income securities $ 812,132 (16,207) 143,129 (3,922) 955,261 (20,129) December 31, 2020 Less than 12 months 12 months or longer Total ($ in thousands) Fair Unrealized Fair Value Unrealized Fair Value Unrealized AFS fixed income securities: U.S. government and government agencies $ 11,519 (137) — — 11,519 (137) Foreign government 1,122 (3) — — 1,122 (3) Obligations of states and political subdivisions 2,223 (11) — — 2,223 (11) Corporate securities 65,187 (2,152) 2,400 (188) 67,587 (2,340) CLO and other ABS 261,746 (2,995) 165,661 (4,848) 427,407 (7,843) RMBS 18,227 (194) 1,181 (7) 19,408 (201) CMBS 55,482 (616) 16,093 (391) 71,575 (1,007) Total AFS fixed income securities $ 415,506 (6,108) 185,335 (5,434) 600,841 (11,542) 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. The increase in gross unrealized losses during First Quarter 2021 was driven by a significant increase in longer-dated benchmark United States Treasury rates, offset in part by tightening credit spreads as a result of reduced uncertainty in the marketplace. Considering these factors and our review of these securities under our credit loss policy as described in Note 2. "Summary of Significant Accounting Policies" of our 2020 Annual Report, we have concluded that no allowance for credit loss is required on these balances. 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. (c) Fixed income securities at March 31, 2021 are summarized below by contractual maturity. 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. AFS HTM ($ in thousands) Fair Value Carrying Value Fair Value Due in one year or less $ 453,772 1,057 1,065 Due after one year through five years 3,400,223 14,433 15,325 Due after five years through 10 years 2,043,563 8,854 8,814 Due after 10 years 624,083 — — Total fixed income securities $ 6,521,641 24,344 25,204 (d) The following table summarizes our other investment portfolio by strategy: Other Investments March 31, 2021 December 31, 2020 ($ in thousands) Carrying Value Remaining Commitment Maximum Exposure to Loss 1 Carrying Value Remaining Commitment Maximum Exposure to Loss 1 Alternative Investments Private equity $ 182,032 104,070 286,102 157,276 100,905 258,181 Private credit 56,819 98,072 154,891 54,017 98,330 152,347 Real assets 19,689 15,891 35,580 19,659 16,493 36,152 Total alternative investments 258,540 218,033 476,573 230,952 215,728 446,680 Other securities 31,613 — 31,613 35,370 — 35,370 Total other investments $ 290,153 218,033 508,186 266,322 215,728 482,050 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 stated above, but 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 2021 or 2020. The following table shows gross summarized financial information for our other investments portfolio, including the portion we do not own. The majority of these investments are carried under the equity method of accounting and report results to us on a one-quarter lag. The following table provides (i) the gross summarized financial statement information for these investments for the three-months ended December 31, and (ii) the portion of these results that are included in our First Quarter results: Income Statement Information Quarter ended March 31, ($ in millions) 2021 2020 Net investment income $ 481.6 12.7 Realized gains 776.0 164.8 Net change in unrealized appreciation 4,630.8 1,204.0 Net income $ 5,888.4 1,381.5 Insurance Subsidiaries’ alternative investments income $ 20.2 6.3 (e) Certain Insurance Subsidiaries, as members of the Federal Home Loan Bank of Indianapolis ("FHLBI") and the Federal Home Loan Bank of New York ("FHLBNY"), have pledged certain AFS fixed income securities as collateral. Additionally, to comply with insurance laws, certain Insurance Subsidiaries have deposited certain securities with various state and regulatory agencies at March 31, 2021. We retain all rights regarding all securities pledged as collateral. The following table summarizes the market value of these securities at March 31, 2021: ($ in millions) FHLBI Collateral FHLBNY Collateral State and Total U.S. government and government agencies $ — — 21.0 21.0 Obligations of states and political subdivisions — — 5.0 5.0 RMBS 93.7 155.5 — 249.2 CMBS 6.9 35.1 — 42.0 Total pledged as collateral $ 100.6 190.6 26.0 317.2 (f) 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 March 31, 2021, or December 31, 2020. (g) The components of pre-tax net investment income earned were as follows: Quarter ended March 31, ($ in thousands) 2021 2020 Fixed income securities $ 52,823 50,253 Commercial mortgage loans ("CMLs") 514 62 Equity securities 2,488 1,552 Short-term investments 85 1,166 Other investments 17,433 6,342 Investment expenses (3,627) (3,408) Net investment income earned $ 69,716 55,967 The increase in net investment income earned in First Quarter 2021 compared to First Quarter 2020 was driven by the alternative investments in our other investments portfolio, and it reflects the improvement in the equity markets in the fourth quarter of 2020 as our results on these holdings are recorded on a one-quarter lag. (h) The following table summarizes net realized and unrealized gains and losses for the periods indicated: Quarter ended March 31, ($ in thousands) 2021 2020 Gross gains on sales $ 3,676 5,676 Gross losses on sales (4,471) (1,576) Net realized gains (losses) on disposals (795) 4,100 Net unrealized gains (losses) on equity securities 11,280 (17,137) Net credit loss expense on fixed income securities, AFS (4,997) (15,787) Net credit loss expense on fixed income securities, HTM (7) — Net credit loss expense on CMLs — (240) Losses on securities for which we have the intent to sell (362) (15,602) Net realized and unrealized gains (losses) $ 5,119 (44,666) Unrealized gains (losses) recognized in income on equity securities, as reflected in the table above, include the following: Quarter ended March 31, ($ in thousands) 2021 2020 Unrealized gains (losses) recognized in income on equity securities: On securities remaining in our portfolio at March 31, 2021 $ 10,097 (17,140) On securities sold during period 1,183 3 Total unrealized gains (losses) recognized in income on equity securities $ 11,280 (17,137) The improvement in net realized and unrealized gains was primarily driven by (i) unrealized gains on our equity securities compared to unrealized losses last year, which were driven by COVID-19-related market disruption, and (ii) lower intent-to-sell losses as we provided our investment managers significant trading flexibility last year given market conditions. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021, and December 31, 2020: March 31, 2021 December 31, 2020 ($ in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Financial Liabilities Long-term debt: 7.25% Senior Notes 49,915 60,613 49,914 66,148 6.70% Senior Notes 99,504 119,818 99,499 127,886 5.375% Senior Notes 294,263 347,155 294,241 383,669 1.61% borrowings from FHLBNY 25,000 25,107 25,000 25,182 1.56% borrowings from FHLBNY 25,000 25,127 25,000 25,198 3.03% borrowings from FHLBI 60,000 65,337 60,000 67,513 Subtotal long-term debt 553,682 643,157 553,654 695,596 Unamortized debt issuance costs (3,355) (3,419) Finance lease obligations 577 508 Total long-term debt $ 550,904 550,743 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 2020 Annual Report. The following tables provide quantitative disclosures of our financial assets that were measured and recorded at fair value at March 31, 2021, and December 31, 2020: March 31, 2021 Fair Value Measurements Using ($ in thousands) Assets Quoted Prices in 1 Significant Other Observable Inputs (Level 2) 1 Significant Unobservable Description Measured on a recurring basis: AFS fixed income securities: U.S. government and government agencies $ 136,274 58,540 77,734 — Foreign government 19,702 — 19,702 — Obligations of states and political subdivisions 1,214,093 — 1,206,197 7,896 Corporate securities 2,345,791 — 2,256,469 89,322 CLO and other ABS 1,202,065 — 1,137,176 64,889 RMBS 947,540 — 947,540 — CMBS 656,176 — 656,176 — Total AFS fixed income securities 6,521,641 58,540 6,300,994 162,107 Equity securities: Common stock 1 322,557 269,017 — — Preferred stock 1,698 1,698 — — Total equity securities 324,255 270,715 — — Short-term investments 337,807 337,075 732 — Total assets measured at fair value $ 7,183,703 666,330 6,301,726 162,107 December 31, 2020 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 Description Measured on a recurring basis: AFS fixed income securities: U.S. government and government agencies $ 116,140 40,960 75,180 — Foreign government 18,366 — 18,366 — Obligations of states and political subdivisions 1,247,137 — 1,244,243 2,894 Corporate securities 2,328,052 — 2,257,352 70,700 CLO and other ABS 1,026,551 — 970,176 56,375 RMBS 1,051,788 — 1,051,788 — CMBS 667,894 — 667,894 — Total AFS fixed income securities 6,455,928 40,960 6,284,999 129,969 Equity securities: Common stock 1 308,632 261,846 — — Preferred stock 1,735 1,735 — — Total equity securities 310,367 263,581 — — Short-term investments 409,852 405,400 4,452 — Total assets measured at fair value $ 7,176,147 709,941 6,289,451 129,969 1 Investments amounting to $53.5 million at March 31, 2021, and $46.8 million at December 31, 2020, were measured at fair value using net asset value per share (or its practical expedient) and are not classified in the fair value hierarchy. These investments are not redeemable and the timing of liquidations of the underlying assets is unknown at each reporting period. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to total assets measured at fair value. The following table provides a summary of Level 3 changes in First Quarter 2021 and First Quarter 2020: March 31, 2021 ($ in thousands) Obligations of States and Political Subdivisions Corporate Securities CLO and Other ABS Total Fair value, December 31, 2020 $ 2,894 70,700 56,375 129,969 Total net (losses) gains for the period included in: OCI (99) (2,388) (1,116) (3,603) Net realized and unrealized (losses) gains — (91) (143) (234) Net investment income earned — 1 3 4 Purchases — 21,100 10,672 31,772 Sales — — — — Issuances — — — — Settlements — — (412) (412) Transfers into Level 3 5,101 — — 5,101 Transfers out of Level 3 — — (490) (490) Fair value, March 31, 2021 7,896 89,322 64,889 162,107 Change in unrealized (losses) gains for the period included in earnings for assets held at period end — (91) (143) (234) Change in unrealized gains (losses) for the period included in OCI for assets held at period end (99) (2,388) (1,116) (3,603) March 31, 2020 ($ in thousands) Obligation of state and Political Subdivisions Corporate Securities CLO and Other ABS Total Fair value, December 31, 2019 $ — 17,051 17,034 34,085 Total net (losses) gains for the period included in: OCI — 1 (1,756) (1,755) Net realized and unrealized (losses) gains — (61) (214) (275) Net investment income earned — — — — Purchases — 3,002 4,831 7,833 Sales — — — — Issuances — — — — Settlements — — — — Transfers into Level 3 2,890 4,192 20,107 27,189 Transfers out of Level 3 — — (3,630) (3,630) Fair value, March 31, 2020 $ 2,890 24,185 36,372 63,447 Change in unrealized gains (losses) for the period included in earnings for assets held at period end — (61) (214) (275) Change in unrealized gains (losses) for the period included in OCI for assets held at period end — 1 (1,756) (1,755) The following tables provide quantitative information regarding our financial assets and liabilities that were disclosed at fair value at March 31, 2021, and December 31, 2020: March 31, 2021 Fair Value Measurements Using ($ in thousands) Assets/ Quoted Prices in Significant Other Significant Financial Assets HTM: Obligations of states and political subdivisions $ 4,738 — 4,738 — Corporate securities 20,466 — 20,466 — Total HTM fixed income securities $ 25,204 — 25,204 — CMLs $ 62,233 — — 62,233 Financial Liabilities Long-term debt: 7.25% Senior Notes $ 60,613 — 60,613 — 6.70% Senior Notes 119,818 — 119,818 — 5.375% Senior Notes 347,155 — 347,155 — 1.61% borrowings from FHLBNY 25,107 — 25,107 — 1.56% borrowings from FHLBNY 25,127 — 25,127 — 3.03% borrowings from FHLBI 65,337 — 65,337 — Total long-term debt $ 643,157 — 643,157 — December 31, 2020 Fair Value Measurements Using ($ in thousands) Assets/ Quoted Prices in Significant Other Significant Financial Assets HTM: Obligations of states and political subdivisions $ 4,795 — 4,795 — Corporate securities 13,206 — 13,206 — Total HTM fixed income securities $ 18,001 — 18,001 — CMLs $ 47,289 — — 47,289 Financial Liabilities Long-term debt: 7.25% Senior Notes $ 66,148 — 66,148 — 6.70% Senior Notes 127,886 — 127,886 — 5.375% Senior Notes 383,669 — 383,669 — 1.61% borrowings from FHLBNY 25,182 — 25,182 — 1.56% borrowings from FHLBNY 25,198 — 25,198 — 3.03% borrowings from FHLBI 67,513 — 67,513 — Total long-term debt $ 695,596 — 695,596 — |
Allowance for Uncollectible Pre
Allowance for Uncollectible Premiums Receivable (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Premiums Receivable [Abstract] | |
Allowance for Uncollectible Premiums Receivable Note [Text Block] | Premiums Receivable The following table provides a roll forward of the allowance for credit losses on our premiums receivable balance for the periods indicated: Quarter ended March 31, ($ in thousands) 2021 2020 Balance at beginning of period $ 21,000 $ 6,400 Cumulative effect adjustment 1 — 1,058 Balance at beginning of period, as adjusted $ 21,000 $ 7,458 Current period provision for expected credit losses 808 11,195 Write-offs charged against the allowance for credit losses (874) (653) Recoveries 66 — Allowance for credit losses, end of period $ 21,000 $ 18,000 1 Represents the impact of our adoption of ASU 2016-13, Financial Instruments - Credit Losses . In First Quarter 2020, we recognized an additional allowance for credit losses of $10.5 million, net of write-offs and recoveries. We based this increase on an evaluation of the recoverability of our premiums receivable in light of (i) the billing accommodations we announced during the first quarter of 2020 and (ii) the impact of certain state regulations that provided for deferral of payments without cancellation for a period up to 90 days and increased earned but uncollected premiums. The billing accommodations included individualized payment flexibility and suspending the effect of policy cancellations, late payment notices, and late or reinstatement fees. The heightened credit risk experienced in 2020 that resulted in the allowance for credit losses being increased to $21.0 million in the second quarter of 2020 returned to pre-COVID-19 levels in 2021, and our allowance for credit losses has remained at $21.0 million, which is consistent with the reserve as of December 31, 2020. The existing allowance is expected to absorb anticipated write-offs that will occur over the corresponding collections cycle, which could last more than a year. |
Reinsurance
Reinsurance | 3 Months Ended |
Mar. 31, 2021 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | Reinsurance We evaluate and monitor the financial condition of our reinsurers under voluntary reinsurance arrangements to minimize our exposure to significant losses from reinsurer insolvencies. The following tables provide (i) a disaggregation of our reinsurance recoverable balance by financial strength rating and (ii) an aging analysis of our past due reinsurance recoverable balances as of March 31, 2021, and December 31, 2020: March 31, 2021 ($ in thousands) Current Past Due Total Reinsurance Recoverables Financial strength rating of rated reinsurers 1 A++ $ 37,939 $ 108 $ 38,047 A+ 352,386 4,032 356,418 A 105,068 387 105,455 A- 2,177 — 2,177 B++ 117 264 381 B+ — — — Total rated reinsurers $ 497,687 $ 4,791 $ 502,478 Non-rated reinsurers Federal and state pools $ 76,179 $ — $ 76,179 Other than federal and state pools 3,179 860 4,039 Total non-rated reinsurers $ 79,358 $ 860 $ 80,218 Total reinsurance recoverable, gross $ 577,045 $ 5,651 $ 582,696 Less: allowance for credit losses 2 (1,840) Total reinsurance recoverable, net $ 580,856 1 Credit ratings as of March 31, 2021. 2 Represents our current expectation of credit losses on total current and past due reinsurance recoverables, and is not identifiable by reinsurer. December 31, 2020 ($ in thousands) Current Past Due Total Reinsurance Recoverables Financial strength rating of rated reinsurers 1 A++ $ 37,464 $ 102 $ 37,566 A+ 354,846 2,452 357,298 A 105,652 415 106,067 A- 2,139 — 2,139 B++ 56 324 380 B+ — — — Total rated reinsurers $ 500,157 $ 3,293 $ 503,450 Non-rated reinsurers Federal and state pools $ 82,575 $ — $ 82,575 Other than federal and state pools 2,676 568 3,244 Total non-rated reinsurers $ 85,251 $ 568 $ 85,819 Total reinsurance recoverable, gross $ 585,408 $ 3,861 $ 589,269 Less: allowance for credit losses 2 (1,777) Total reinsurance recoverable, net $ 587,492 For a discussion of the methodology used to evaluate our estimate of expected credit losses, refer to Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2020 Annual Report. The following table provides a rollforward of the allowance for credit losses on our reinsurance recoverable balance for the periods indicated: ($ in thousands) Quarter ended March 31, 2021 2020 Balance at beginning of period $ 1,777 $ 4,400 Cumulative effect adjustment 1 — (2,903) Balance at beginning of period, as adjusted $ 1,777 $ 1,497 Current period provision for expected credit losses 63 5 Write-offs charged against the allowance for credit losses — — Recoveries — — Allowance for credit losses, end of period $ 1,840 1,502 1 Represents the impact of our adoption of ASU 2016-13, Financial Instruments - Credit Losses . 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 about reinsurance, refer to Note 9. “Reinsurance” in Item 8. “Financial Statements and Supplementary Data.” of our 2020 Annual Report. Quarter ended March 31, ($ in thousands) 2021 2020 Premiums written: Direct $ 908,774 746,431 Assumed 5,533 6,043 Ceded (116,129) (105,147) Net $ 798,178 647,327 Premiums earned: Direct $ 837,369 754,892 Assumed 5,676 6,173 Ceded (118,085) (109,362) Net $ 724,960 651,703 Loss and loss expenses incurred: Direct $ 441,507 425,795 Assumed 3,447 4,898 Ceded (31,553) (30,369) Net $ 413,401 400,324 Direct premiums written ("DPW") increased $162 million, or 22%, in First Quarter 2021 compared to First Quarter 2020. The increase included 11 percentage points from the $75 million return audit and mid-term endorsement premium accrual that was recorded in First Quarter 2020, resulting in remaining growth of $87 million in First Quarter 2021. This accrual reflected lower exposure levels, which determine the premium we charge, attributable to the economic impacts of the COVID-19 pandemic and the anticipated decline in sales and payroll exposures on the general liability and workers compensation lines of business. Ceded premiums written, ceded premiums earned, and ceded loss and loss expenses incurred related to our participation in the NFIP, to which we cede 100% of our flood premiums, losses, and loss expenses, were as follows: Ceded to NFIP Quarter ended March 31, ($ in thousands) 2021 2020 Ceded premiums written $ (65,742) (62,087) Ceded premiums earned (67,519) (66,861) Ceded loss and loss expenses incurred (2,207) (5,096) |
Reserve for Loss and Loss Expen
Reserve for Loss and Loss Expense | 3 Months Ended |
Mar. 31, 2021 | |
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: Quarter ended March 31, ($ in thousands) 2021 2020 Gross reserve for loss and loss expense, at beginning of year $ 4,260,355 4,067,163 Less: reinsurance recoverable on unpaid loss and loss expense, at beginning of year 1 554,269 547,066 Net reserve for loss and loss expense, at beginning of year 3,706,086 3,520,097 Incurred loss and loss expense for claims occurring in the: Current year 447,170 407,276 Prior years (33,769) (6,952) Total incurred loss and loss expense 413,401 400,324 Paid loss and loss expense for claims occurring in the: Current year 80,158 70,610 Prior years 243,687 281,736 Total paid loss and loss expense 323,845 352,346 Net reserve for loss and loss expense, at end of period 3,795,642 3,568,075 Add: Reinsurance recoverable on unpaid loss and loss expense, at end of period 564,546 535,560 Gross reserve for loss and loss expense at end of period $ 4,360,188 4,103,635 1 First Quarter 2020 includes an adjustment of $2.9 million related to our adoption of ASU 2016-13, Financial Instruments - Credit Losses . Prior year reserve development in First Quarter 2021 was favorable by $33.8 million, which included $35.0 million of casualty reserve development that was partially offset by $1.2 million of unfavorable property reserve development. The favorable casualty reserve development included $15.0 million of development in our workers compensation lines of business, $15.0 million in our general liability line of business, and $5.0 million in our Excess and Surplus ("E&S") casualty lines of business. Prior year reserve development in First Quarter 2020 was favorable by $7.0 million and included $10.0 million of favorable casualty reserve development in our workers compensation line of business that was partially offset by $3.0 million of unfavorable property reserve development. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We evaluate the results of our four reportable segments as follows: • Our Standard Commercial Lines, Standard Personal Lines, and E&S Lines are evaluated on before and after-tax underwriting results (net premiums earned, incurred loss and loss expense, policyholder dividends, policy acquisition costs, and other underwriting expenses), return on equity ("ROE") contribution, and combined ratios. • Our Investments segment is primarily evaluated on after-tax net investment income and its ROE contribution. After-tax net realized and unrealized gains and losses, which are not included in non-GAAP operating income, are also included in our Investment segment results. In computing each segment's results, we do not make adjustments for interest expense or corporate expenses, nor do we allocate assets. The following summaries present revenues (net investment income and net realized and unrealized gains and losses on investments for the Investments segment) and pre-tax income for the individual segments: Revenue by Segment Quarter ended March 31, ($ in thousands) 2021 2020 Standard Commercial Lines: Net premiums earned: Commercial property $ 102,810 93,869 Workers compensation 78,190 66,706 General liability 193,520 164,580 Commercial automobile 171,881 149,690 Businessowners' policies 28,627 27,036 Bonds 8,593 9,639 Other 5,520 5,060 Miscellaneous income 3,707 1,391 Total Standard Commercial Lines revenue 592,848 517,971 Standard Personal Lines: Net premiums earned: Personal automobile 41,393 42,487 Homeowners 30,598 31,490 Other 1,830 2,151 Miscellaneous income 405 434 Total Standard Personal Lines revenue 74,226 76,562 E&S Lines: Net premiums earned: Casualty lines 43,833 44,072 Property lines 18,165 14,923 Total E&S Lines revenue 61,998 58,995 Investments: Net investment income 69,716 55,967 Net realized and unrealized investment gains (losses) 5,119 (44,666) Total Investments revenue 74,835 11,301 Total revenues $ 803,907 664,829 Income Before and After Federal Income Tax Quarter ended March 31, ($ in thousands) 2021 2020 Standard Commercial Lines: Underwriting gain, before federal income tax $ 69,499 17,126 Underwriting gain, after federal income tax 54,904 13,529 Combined ratio 88.2 % 96.7 ROE contribution 8.6 2.4 Standard Personal Lines: Underwriting gain, before federal income tax $ 7,695 387 Underwriting gain, after federal income tax 6,079 306 Combined ratio 89.6 % 99.5 ROE contribution 1.0 0.1 E&S Lines: Underwriting gain, before federal income tax $ 516 3,844 Underwriting gain, after federal income tax 408 3,037 Combined ratio 99.2 % 93.5 ROE contribution 0.1 0.6 Investments: Net investment income $ 69,716 55,967 Net realized and unrealized investment gains (losses) 5,119 (44,666) Total investment segment income, before federal income tax 74,835 11,301 Tax on investment segment income 14,448 1,104 Total investment segment income, after federal income tax $ 60,387 10,197 ROE contribution of after-tax net investment income 8.9 8.5 Reconciliation of Segment Results to Income Before Federal Income Tax Quarter ended March 31, ($ in thousands) 2021 2020 Underwriting gain Standard Commercial Lines $ 69,499 17,126 Standard Personal Lines 7,695 387 E&S Lines 516 3,844 Investment income 74,835 11,301 Total all segments 152,545 32,658 Interest expense (7,359) (7,601) Corporate expenses (9,554) (9,060) Income, before federal income tax $ 135,632 15,997 Preferred stock dividends (2,453) — Income available to common stockholders, before federal income tax $ 133,179 15,997 |
Retirement Plans
Retirement Plans | 3 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Retirement Plans | Retirement Plans The primary pension plan for our employees is the Retirement Income Plan for Selective Insurance Company of America (the “Pension Plan”). Selective Insurance Company of America ("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 about SICA's retirement plans, see Note 15. “Retirement Plans” in Item 8. “Financial Statements and Supplementary Data.” of our 2020 Annual Report. The following tables provide information about the Pension Plan: Pension Plan Quarter ended March 31, ($ in thousands) 2021 2020 Net Periodic Pension Cost (Benefit): Interest cost $ 2,148 2,828 Expected return on plan assets (5,744) (5,477) Amortization of unrecognized net actuarial loss 625 704 Total net periodic pension cost (benefit) 1 $ (2,971) (1,945) 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 Quarter ended March 31, 2021 2020 Weighted-Average Expense Assumptions: Discount rate 2.68 % 3.33 % Effective interest rate for calculation of interest cost 2.06 2.95 Expected return on plan assets 5.40 5.80 |
Comprehensive Income
Comprehensive Income | 3 Months Ended |
Mar. 31, 2021 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Comprehensive Income | Comprehensive Income The following are the components of comprehensive income, both gross and net of tax, for First Quarter 2021 and 2020: First Quarter 2021 ($ in thousands) Gross Tax Net Net income $ 135,632 26,362 109,270 Components of OCI: Unrealized losses on investment securities : Unrealized holding losses during the period (103,308) (21,695) (81,613) Unrealized losses on securities with credit loss recognized in earnings (11,320) (2,377) (8,943) Amounts reclassified into net income: HTM securities (2) — (2) Net realized losses on disposals and losses on intent-to-sell AFS securities 604 127 477 Credit loss expense 4,997 1,049 3,948 Total unrealized losses on investment securities (109,029) (22,896) (86,133) Defined benefit pension and post-retirement plans: Amounts reclassified into net income: Net actuarial loss 693 146 547 Total defined benefit pension and post-retirement plans 693 146 547 Other comprehensive loss (108,336) (22,750) (85,586) Comprehensive income $ 27,296 3,612 23,684 First Quarter 2020 ($ in thousands) Gross Tax Net Net income $ 15,997 761 15,236 Components of OCI: Unrealized losses on investment securities : Unrealized holding losses during the period (93,981) (19,736) (74,245) Unrealized losses on securities with credit loss recognized in earnings (65,390) (13,732) (51,658) Amounts reclassified into net income: HTM securities 25 5 20 Net realized losses on disposals and losses on intent-to-sell AFS securities 11,327 2,379 8,948 Credit loss expense 15,787 3,315 12,472 Total unrealized losses on investment securities (132,232) (27,769) (104,463) Defined benefit pension and post-retirement plans: Amounts reclassified into net income: Net actuarial loss 754 158 596 Total defined benefit pension and post-retirement plans 754 158 596 Other comprehensive loss (131,478) (27,611) (103,867) Comprehensive loss $ (115,481) (26,850) (88,631) The following are the balances and changes in each component of AOCI (net of taxes) as of March 31, 2021: March 31, 2021 Defined Benefit Net Unrealized (Losses) Gains on Investment Securities Total AOCI ($ in thousands) Credit Loss Related 1 HTM All Investments Balance, December 31, 2020 $ (2,546) 6 307,790 305,250 (85,064) 220,186 OCI before reclassifications (8,943) — (81,613) (90,556) — (90,556) Amounts reclassified from AOCI 3,948 (2) 477 4,423 547 4,970 Net current period OCI (4,995) (2) (81,136) (86,133) 547 (85,586) Balance, March 31, 2021 $ (7,541) 4 226,654 219,117 (84,517) 134,600 1 Represents change in unrealized loss on securities with credit loss recognized in earnings. The reclassifications out of AOCI were as follows: Quarter ended March 31, Affected Line Item in the Unaudited Consolidated Statements of Income ($ in thousands) 2021 2020 HTM related Unrealized (gains) losses on HTM disposals $ — 1 Net realized and unrealized investment gains (losses) Amortization of net unrealized (gains) losses on HTM securities (2) 24 Net investment income earned (2) 25 Income before federal income tax — (5) Total federal income tax expense (2) 20 Net income Net realized losses on disposals and intent-to-sell AFS securities Net realized losses on disposals and intent-to-sell AFS securities 604 11,327 Net realized and unrealized investment gains (losses) 604 11,327 Income before federal income tax (127) (2,379) Total federal income tax expense 477 8,948 Net income Credit loss related Credit loss expense 4,997 15,787 Net realized and unrealized investment gains (losses) 4,997 15,787 Income before federal income tax (1,049) (3,315) Total federal income tax expense 3,948 12,472 Net income Defined benefit pension and post-retirement life plans Net actuarial loss 159 162 Loss and loss expense incurred 534 592 Other insurance expenses Total defined benefit pension and post-retirement life 693 754 Income before federal income tax (146) (158) Total federal income tax expense 547 596 Net income Total reclassifications for the period $ 4,970 22,036 Net income |
Equity
Equity | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Treasury Stock | EquityOn December 2, 2020, we announced our Board of Directors authorized a $100 million share repurchase program, which has no set expiration or termination date. Our repurchase program does not obligate us to acquire any particular amount of our common stock, and the repurchase program may be suspended or discounted at any time at our discretion. The timing and amount of any share repurchases under the authorization will be determined by management at its discretion based on market conditions and other considerations. As of March 31, 2021, 52,781 shares were repurchased under the share repurchase program at a total cost of $3.4 million, and we have $96.6 million of remaining capacity under our share repurchase program. |
Litigation
Litigation | 3 Months Ended |
Mar. 31, 2021 | |
Loss Contingency, Information about Litigation Matters [Abstract] | |
Litigation | Litigation As of March 31, 2021, 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. In the ordinary course of conducting business, we are parties in various legal actions. Most are claims litigation involving our Insurance Subsidiaries as (i) liability insurers defending or providing indemnity for third-party claims brought against our customers, (ii) insurers defending first-party coverage claims brought against them, or (iii) liability insurers seeking declaratory judgment on our insurance coverage obligations. 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. All of our commercial property and businessowners' policies require direct physical loss of or damage to property by a covered cause of loss. It also is our practice to include in, or attach to, all standard lines commercial property and businessowners' policies an exclusion that states that all loss or property damage caused by or resulting from any virus, bacterium, or other microorganism that induces or is capable of inducing physical distress, illness, or disease is not a covered cause of loss ("Virus Exclusion"). Whether COVID-19-related contamination, the existence of the COVID-19 pandemic, and the resulting COVID-19-related government shutdown orders cause physical loss of or damage to property is the subject of much public debate and first-party coverage litigation against some insurers, including us. The Virus Exclusion also is the subject of first-party coverage litigation against some insurers, including us. We cannot predict the outcome of litigation over these two coverage issues, including interpretation of provisions similar or identical to those in our insurance policies. |
Statements of Cash Flows (Table
Statements of Cash Flows (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | Quarter ended March 31, ($ in thousands) 2021 2020 Cash paid during the period for: Interest $ 8,722 8,854 Federal income tax — — Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 2,226 2,130 Operating cash flows from financing leases 2 6 Financing cash flows from finance leases 115 142 Non-cash items: Corporate actions related to fixed income securities, AFS 1 26,085 8,040 Corporate actions related to fixed income securities, HTM 1 — 2,596 Assets acquired under finance lease arrangements 183 29 Assets acquired under operating lease arrangements 16 3,828 Non-cash purchase of property and equipment 3 5 1 Examples of corporate actions include exchanges, non-cash acquisitions, and stock splits. |
Schedule of Cash and Restricted Cash | ($ in thousands) March 31, 2021 December 31, 2020 Cash $ 488 394 Restricted cash 8,428 14,837 Total cash and restricted cash shown in the Statements of Cash Flows $ 8,916 15,231 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Schedule of Investments [Line Items] | |
Schedule of Available-for-sale Securities | March 31, 2021 ($ in thousands) Cost/ Allowance for Credit Losses Unrealized Unrealized Fair AFS fixed income securities: U.S. government and government agencies $ 134,725 — 3,653 (2,104) 136,274 Foreign government 18,920 (56) 974 (136) 19,702 Obligations of states and political subdivisions 1,140,442 (201) 74,212 (360) 1,214,093 Corporate securities 2,239,066 (6,166) 122,761 (9,870) 2,345,791 Collateralized loan obligations ("CLO") and other asset-backed securities ("ABS") 1,188,670 (1,470) 18,917 (4,052) 1,202,065 Residential mortgage-backed securities ("RMBS") 906,266 (864) 43,367 (1,229) 947,540 Commercial mortgage-backed securities ("CMBS") 624,988 (24) 33,590 (2,378) 656,176 Total AFS fixed income securities $ 6,253,077 (8,781) 297,474 (20,129) 6,521,641 December 31, 2020 ($ in thousands) Cost/ Allowance for Credit Losses Unrealized Unrealized Fair AFS fixed income securities: U.S. government and government agencies $ 110,038 — 6,239 (137) 116,140 Foreign government 16,801 (1) 1,569 (3) 18,366 Obligations of states and political subdivisions 1,159,588 (4) 87,564 (11) 1,247,137 Corporate securities 2,152,203 (2,782) 180,971 (2,340) 2,328,052 CLO and other ABS 1,014,820 (592) 20,166 (7,843) 1,026,551 RMBS 999,485 (561) 53,065 (201) 1,051,788 CMBS 620,582 (29) 48,348 (1,007) 667,894 Total AFS fixed income securities $ 6,073,517 (3,969) 397,922 (11,542) 6,455,928 |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Table Text Block] | Quarter ended March 31, 2021 ($ in thousands) Beginning Balance Current Provision for Securities without Prior Allowance Increase (Decrease) on Securities with Prior Allowance, excluding intent (or Requirement) to Sell Securities Reductions for Securities Sold Reductions for Securities Identified as Intent (or Requirement) to Sell during the Period Ending Balance Foreign government $ 1 56 (1) — — 56 Obligations of states and political subdivisions 4 186 11 — — 201 Corporate securities 2,782 4,058 (527) (147) — 6,166 CLO and other ABS 592 1,001 (106) (17) — 1,470 RMBS 561 356 (39) (14) — 864 CMBS 29 10 (15) — — 24 Total AFS fixed income securities $ 3,969 5,667 (677) (178) — 8,781 Quarter ended March 31, 2020 ($ in thousands) Beginning Balance Current Provision for Securities without Prior Allowance Increase (Decrease) on Securities with Prior Allowance, excluding intent (or Requirement) to Sell Securities Reductions for Securities Sold Reductions for Securities Identified as Intent (or Requirement) to Sell during the Period Ending Balance Foreign government $ — 21 — — — 21 Obligations of states and political subdivisions — 29 — — — 29 Corporate securities — 13,412 — — — 13,412 CLO and other ABS — 1,565 — — — 1,565 RMBS — 722 — — — 722 CMBS — 38 — — — 38 Total AFS fixed income securities $ — 15,787 — — — 15,787 |
Schedule of Fair Value and Gross Pre-Tax Net Unrealized Loss of Securities by Length of Time, AFS | March 31, 2021 Less than 12 months 12 months or longer Total ($ in thousands) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized AFS fixed income securities: U.S. government and government agencies $ 53,796 (2,104) — — 53,796 (2,104) Foreign government 3,313 (136) — — 3,313 (136) Obligations of states and political subdivisions 18,838 (352) 369 (8) 19,207 (360) Corporate securities 306,052 (8,560) 14,025 (1,310) 320,077 (9,870) CLO and other ABS 282,939 (1,737) 105,261 (2,315) 388,200 (4,052) RMBS 76,684 (1,229) — — 76,684 (1,229) CMBS 70,510 (2,089) 23,474 (289) 93,984 (2,378) Total AFS fixed income securities $ 812,132 (16,207) 143,129 (3,922) 955,261 (20,129) December 31, 2020 Less than 12 months 12 months or longer Total ($ in thousands) Fair Unrealized Fair Value Unrealized Fair Value Unrealized AFS fixed income securities: U.S. government and government agencies $ 11,519 (137) — — 11,519 (137) Foreign government 1,122 (3) — — 1,122 (3) Obligations of states and political subdivisions 2,223 (11) — — 2,223 (11) Corporate securities 65,187 (2,152) 2,400 (188) 67,587 (2,340) CLO and other ABS 261,746 (2,995) 165,661 (4,848) 427,407 (7,843) RMBS 18,227 (194) 1,181 (7) 19,408 (201) CMBS 55,482 (616) 16,093 (391) 71,575 (1,007) Total AFS fixed income securities $ 415,506 (6,108) 185,335 (5,434) 600,841 (11,542) |
Schedule of Fixed Maturity Securities By Contractual Maturities | AFS HTM ($ in thousands) Fair Value Carrying Value Fair Value Due in one year or less $ 453,772 1,057 1,065 Due after one year through five years 3,400,223 14,433 15,325 Due after five years through 10 years 2,043,563 8,854 8,814 Due after 10 years 624,083 — — Total fixed income securities $ 6,521,641 24,344 25,204 |
Schedule of Other Investment Portfolio By Strategy And Remaining Commitment Amount and Maximum Exposure to Loss Associated With Each Strategy | Other Investments March 31, 2021 December 31, 2020 ($ in thousands) Carrying Value Remaining Commitment Maximum Exposure to Loss 1 Carrying Value Remaining Commitment Maximum Exposure to Loss 1 Alternative Investments Private equity $ 182,032 104,070 286,102 157,276 100,905 258,181 Private credit 56,819 98,072 154,891 54,017 98,330 152,347 Real assets 19,689 15,891 35,580 19,659 16,493 36,152 Total alternative investments 258,540 218,033 476,573 230,952 215,728 446,680 Other securities 31,613 — 31,613 35,370 — 35,370 Total other investments $ 290,153 218,033 508,186 266,322 215,728 482,050 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 March 31, ($ in millions) 2021 2020 Net investment income $ 481.6 12.7 Realized gains 776.0 164.8 Net change in unrealized appreciation 4,630.8 1,204.0 Net income $ 5,888.4 1,381.5 Insurance Subsidiaries’ alternative investments income $ 20.2 6.3 |
Schedule of Securities Pledged As Collateral | ($ in millions) FHLBI Collateral FHLBNY Collateral State and Total U.S. government and government agencies $ — — 21.0 21.0 Obligations of states and political subdivisions — — 5.0 5.0 RMBS 93.7 155.5 — 249.2 CMBS 6.9 35.1 — 42.0 Total pledged as collateral $ 100.6 190.6 26.0 317.2 |
Schedule of Pre-Tax Net Investment Income Earned | Quarter ended March 31, ($ in thousands) 2021 2020 Fixed income securities $ 52,823 50,253 Commercial mortgage loans ("CMLs") 514 62 Equity securities 2,488 1,552 Short-term investments 85 1,166 Other investments 17,433 6,342 Investment expenses (3,627) (3,408) Net investment income earned $ 69,716 55,967 |
Schedule of realized and unrealized gains (losses) on securities | Quarter ended March 31, ($ in thousands) 2021 2020 Gross gains on sales $ 3,676 5,676 Gross losses on sales (4,471) (1,576) Net realized gains (losses) on disposals (795) 4,100 Net unrealized gains (losses) on equity securities 11,280 (17,137) Net credit loss expense on fixed income securities, AFS (4,997) (15,787) Net credit loss expense on fixed income securities, HTM (7) — Net credit loss expense on CMLs — (240) Losses on securities for which we have the intent to sell (362) (15,602) Net realized and unrealized gains (losses) $ 5,119 (44,666) |
Unrealized Gain (Loss) on Equity Securities | Quarter ended March 31, ($ in thousands) 2021 2020 Unrealized gains (losses) recognized in income on equity securities: On securities remaining in our portfolio at March 31, 2021 $ 10,097 (17,140) On securities sold during period 1,183 3 Total unrealized gains (losses) recognized in income on equity securities $ 11,280 (17,137) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |
Schedule of Carrying Values and Estimated Fair Values of Financial Liabilities | March 31, 2021 December 31, 2020 ($ in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Financial Liabilities Long-term debt: 7.25% Senior Notes 49,915 60,613 49,914 66,148 6.70% Senior Notes 99,504 119,818 99,499 127,886 5.375% Senior Notes 294,263 347,155 294,241 383,669 1.61% borrowings from FHLBNY 25,000 25,107 25,000 25,182 1.56% borrowings from FHLBNY 25,000 25,127 25,000 25,198 3.03% borrowings from FHLBI 60,000 65,337 60,000 67,513 Subtotal long-term debt 553,682 643,157 553,654 695,596 Unamortized debt issuance costs (3,355) (3,419) Finance lease obligations 577 508 Total long-term debt $ 550,904 550,743 |
Schedule of Quantitative Disclosures of Our Financial Assets That Were Measured At Fair Value | March 31, 2021 Fair Value Measurements Using ($ in thousands) Assets Quoted Prices in 1 Significant Other Observable Inputs (Level 2) 1 Significant Unobservable Description Measured on a recurring basis: AFS fixed income securities: U.S. government and government agencies $ 136,274 58,540 77,734 — Foreign government 19,702 — 19,702 — Obligations of states and political subdivisions 1,214,093 — 1,206,197 7,896 Corporate securities 2,345,791 — 2,256,469 89,322 CLO and other ABS 1,202,065 — 1,137,176 64,889 RMBS 947,540 — 947,540 — CMBS 656,176 — 656,176 — Total AFS fixed income securities 6,521,641 58,540 6,300,994 162,107 Equity securities: Common stock 1 322,557 269,017 — — Preferred stock 1,698 1,698 — — Total equity securities 324,255 270,715 — — Short-term investments 337,807 337,075 732 — Total assets measured at fair value $ 7,183,703 666,330 6,301,726 162,107 December 31, 2020 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 Description Measured on a recurring basis: AFS fixed income securities: U.S. government and government agencies $ 116,140 40,960 75,180 — Foreign government 18,366 — 18,366 — Obligations of states and political subdivisions 1,247,137 — 1,244,243 2,894 Corporate securities 2,328,052 — 2,257,352 70,700 CLO and other ABS 1,026,551 — 970,176 56,375 RMBS 1,051,788 — 1,051,788 — CMBS 667,894 — 667,894 — Total AFS fixed income securities 6,455,928 40,960 6,284,999 129,969 Equity securities: Common stock 1 308,632 261,846 — — Preferred stock 1,735 1,735 — — Total equity securities 310,367 263,581 — — Short-term investments 409,852 405,400 4,452 — Total assets measured at fair value $ 7,176,147 709,941 6,289,451 129,969 |
Schedule of Changes in Fair Value of Securities Using Level 3 Inputs | March 31, 2021 ($ in thousands) Obligations of States and Political Subdivisions Corporate Securities CLO and Other ABS Total Fair value, December 31, 2020 $ 2,894 70,700 56,375 129,969 Total net (losses) gains for the period included in: OCI (99) (2,388) (1,116) (3,603) Net realized and unrealized (losses) gains — (91) (143) (234) Net investment income earned — 1 3 4 Purchases — 21,100 10,672 31,772 Sales — — — — Issuances — — — — Settlements — — (412) (412) Transfers into Level 3 5,101 — — 5,101 Transfers out of Level 3 — — (490) (490) Fair value, March 31, 2021 7,896 89,322 64,889 162,107 Change in unrealized (losses) gains for the period included in earnings for assets held at period end — (91) (143) (234) Change in unrealized gains (losses) for the period included in OCI for assets held at period end (99) (2,388) (1,116) (3,603) March 31, 2020 ($ in thousands) Obligation of state and Political Subdivisions Corporate Securities CLO and Other ABS Total Fair value, December 31, 2019 $ — 17,051 17,034 34,085 Total net (losses) gains for the period included in: OCI — 1 (1,756) (1,755) Net realized and unrealized (losses) gains — (61) (214) (275) Net investment income earned — — — — Purchases — 3,002 4,831 7,833 Sales — — — — Issuances — — — — Settlements — — — — Transfers into Level 3 2,890 4,192 20,107 27,189 Transfers out of Level 3 — — (3,630) (3,630) Fair value, March 31, 2020 $ 2,890 24,185 36,372 63,447 Change in unrealized gains (losses) for the period included in earnings for assets held at period end — (61) (214) (275) Change in unrealized gains (losses) for the period included in OCI for assets held at period end — 1 (1,756) (1,755) |
Schedule of Quantitative Information of Our Financial Assets and Liabilities That Were Disclosed at Fair Value | March 31, 2021 Fair Value Measurements Using ($ in thousands) Assets/ Quoted Prices in Significant Other Significant Financial Assets HTM: Obligations of states and political subdivisions $ 4,738 — 4,738 — Corporate securities 20,466 — 20,466 — Total HTM fixed income securities $ 25,204 — 25,204 — CMLs $ 62,233 — — 62,233 Financial Liabilities Long-term debt: 7.25% Senior Notes $ 60,613 — 60,613 — 6.70% Senior Notes 119,818 — 119,818 — 5.375% Senior Notes 347,155 — 347,155 — 1.61% borrowings from FHLBNY 25,107 — 25,107 — 1.56% borrowings from FHLBNY 25,127 — 25,127 — 3.03% borrowings from FHLBI 65,337 — 65,337 — Total long-term debt $ 643,157 — 643,157 — December 31, 2020 Fair Value Measurements Using ($ in thousands) Assets/ Quoted Prices in Significant Other Significant Financial Assets HTM: Obligations of states and political subdivisions $ 4,795 — 4,795 — Corporate securities 13,206 — 13,206 — Total HTM fixed income securities $ 18,001 — 18,001 — CMLs $ 47,289 — — 47,289 Financial Liabilities Long-term debt: 7.25% Senior Notes $ 66,148 — 66,148 — 6.70% Senior Notes 127,886 — 127,886 — 5.375% Senior Notes 383,669 — 383,669 — 1.61% borrowings from FHLBNY 25,182 — 25,182 — 1.56% borrowings from FHLBNY 25,198 — 25,198 — 3.03% borrowings from FHLBI 67,513 — 67,513 — Total long-term debt $ 695,596 — 695,596 — |
Allowance for Uncollectible P_2
Allowance for Uncollectible Premiums Receivable (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Premiums Receivable [Abstract] | |
Premium Receivable, Allowance for Credit Loss [Table Text Block] | Quarter ended March 31, ($ in thousands) 2021 2020 Balance at beginning of period $ 21,000 $ 6,400 Cumulative effect adjustment 1 — 1,058 Balance at beginning of period, as adjusted $ 21,000 $ 7,458 Current period provision for expected credit losses 808 11,195 Write-offs charged against the allowance for credit losses (874) (653) Recoveries 66 — Allowance for credit losses, end of period $ 21,000 $ 18,000 |
Reinsurance (Tables)
Reinsurance (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance Recoverable, Credit Quality Indicator [Table Text Block] | March 31, 2021 ($ in thousands) Current Past Due Total Reinsurance Recoverables Financial strength rating of rated reinsurers 1 A++ $ 37,939 $ 108 $ 38,047 A+ 352,386 4,032 356,418 A 105,068 387 105,455 A- 2,177 — 2,177 B++ 117 264 381 B+ — — — Total rated reinsurers $ 497,687 $ 4,791 $ 502,478 Non-rated reinsurers Federal and state pools $ 76,179 $ — $ 76,179 Other than federal and state pools 3,179 860 4,039 Total non-rated reinsurers $ 79,358 $ 860 $ 80,218 Total reinsurance recoverable, gross $ 577,045 $ 5,651 $ 582,696 Less: allowance for credit losses 2 (1,840) Total reinsurance recoverable, net $ 580,856 1 Credit ratings as of March 31, 2021. 2 Represents our current expectation of credit losses on total current and past due reinsurance recoverables, and is not identifiable by reinsurer. December 31, 2020 ($ in thousands) Current Past Due Total Reinsurance Recoverables Financial strength rating of rated reinsurers 1 A++ $ 37,464 $ 102 $ 37,566 A+ 354,846 2,452 357,298 A 105,652 415 106,067 A- 2,139 — 2,139 B++ 56 324 380 B+ — — — Total rated reinsurers $ 500,157 $ 3,293 $ 503,450 Non-rated reinsurers Federal and state pools $ 82,575 $ — $ 82,575 Other than federal and state pools 2,676 568 3,244 Total non-rated reinsurers $ 85,251 $ 568 $ 85,819 Total reinsurance recoverable, gross $ 585,408 $ 3,861 $ 589,269 Less: allowance for credit losses 2 (1,777) Total reinsurance recoverable, net $ 587,492 |
Reinsurance Recoverable, Allowance for Credit Loss [Table Text Block] | ($ in thousands) Quarter ended March 31, 2021 2020 Balance at beginning of period $ 1,777 $ 4,400 Cumulative effect adjustment 1 — (2,903) Balance at beginning of period, as adjusted $ 1,777 $ 1,497 Current period provision for expected credit losses 63 5 Write-offs charged against the allowance for credit losses — — Recoveries — — Allowance for credit losses, end of period $ 1,840 1,502 1 Represents the impact of our adoption of ASU 2016-13, Financial Instruments - Credit Losses . |
Schedule of List Of Direct, Assumed, And Ceded Reinsurance Amounts | Quarter ended March 31, ($ in thousands) 2021 2020 Premiums written: Direct $ 908,774 746,431 Assumed 5,533 6,043 Ceded (116,129) (105,147) Net $ 798,178 647,327 Premiums earned: Direct $ 837,369 754,892 Assumed 5,676 6,173 Ceded (118,085) (109,362) Net $ 724,960 651,703 Loss and loss expenses incurred: Direct $ 441,507 425,795 Assumed 3,447 4,898 Ceded (31,553) (30,369) Net $ 413,401 400,324 |
Schedule of Ceded Premiums and Losses Related to Flood Operations | Ceded to NFIP Quarter ended March 31, ($ in thousands) 2021 2020 Ceded premiums written $ (65,742) (62,087) Ceded premiums earned (67,519) (66,861) Ceded loss and loss expenses incurred (2,207) (5,096) |
Reserve for Loss and Loss Exp_2
Reserve for Loss and Loss Expense (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Insurance Loss Reserves [Abstract] | |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense | Quarter ended March 31, ($ in thousands) 2021 2020 Gross reserve for loss and loss expense, at beginning of year $ 4,260,355 4,067,163 Less: reinsurance recoverable on unpaid loss and loss expense, at beginning of year 1 554,269 547,066 Net reserve for loss and loss expense, at beginning of year 3,706,086 3,520,097 Incurred loss and loss expense for claims occurring in the: Current year 447,170 407,276 Prior years (33,769) (6,952) Total incurred loss and loss expense 413,401 400,324 Paid loss and loss expense for claims occurring in the: Current year 80,158 70,610 Prior years 243,687 281,736 Total paid loss and loss expense 323,845 352,346 Net reserve for loss and loss expense, at end of period 3,795,642 3,568,075 Add: Reinsurance recoverable on unpaid loss and loss expense, at end of period 564,546 535,560 Gross reserve for loss and loss expense at end of period $ 4,360,188 4,103,635 1 First Quarter 2020 includes an adjustment of $2.9 million related to our adoption of ASU 2016-13, Financial Instruments - Credit Losses |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Revenue By Segment | Revenue by Segment Quarter ended March 31, ($ in thousands) 2021 2020 Standard Commercial Lines: Net premiums earned: Commercial property $ 102,810 93,869 Workers compensation 78,190 66,706 General liability 193,520 164,580 Commercial automobile 171,881 149,690 Businessowners' policies 28,627 27,036 Bonds 8,593 9,639 Other 5,520 5,060 Miscellaneous income 3,707 1,391 Total Standard Commercial Lines revenue 592,848 517,971 Standard Personal Lines: Net premiums earned: Personal automobile 41,393 42,487 Homeowners 30,598 31,490 Other 1,830 2,151 Miscellaneous income 405 434 Total Standard Personal Lines revenue 74,226 76,562 E&S Lines: Net premiums earned: Casualty lines 43,833 44,072 Property lines 18,165 14,923 Total E&S Lines revenue 61,998 58,995 Investments: Net investment income 69,716 55,967 Net realized and unrealized investment gains (losses) 5,119 (44,666) Total Investments revenue 74,835 11,301 Total revenues $ 803,907 664,829 |
Schedule of Income Before and After Federal Income Tax | Income Before and After Federal Income Tax Quarter ended March 31, ($ in thousands) 2021 2020 Standard Commercial Lines: Underwriting gain, before federal income tax $ 69,499 17,126 Underwriting gain, after federal income tax 54,904 13,529 Combined ratio 88.2 % 96.7 ROE contribution 8.6 2.4 Standard Personal Lines: Underwriting gain, before federal income tax $ 7,695 387 Underwriting gain, after federal income tax 6,079 306 Combined ratio 89.6 % 99.5 ROE contribution 1.0 0.1 E&S Lines: Underwriting gain, before federal income tax $ 516 3,844 Underwriting gain, after federal income tax 408 3,037 Combined ratio 99.2 % 93.5 ROE contribution 0.1 0.6 Investments: Net investment income $ 69,716 55,967 Net realized and unrealized investment gains (losses) 5,119 (44,666) Total investment segment income, before federal income tax 74,835 11,301 Tax on investment segment income 14,448 1,104 Total investment segment income, after federal income tax $ 60,387 10,197 ROE contribution of after-tax net investment income 8.9 8.5 |
Schedule of Reconciliation of Segment Results to Income Before Federal Income Tax | Reconciliation of Segment Results to Income Before Federal Income Tax Quarter ended March 31, ($ in thousands) 2021 2020 Underwriting gain Standard Commercial Lines $ 69,499 17,126 Standard Personal Lines 7,695 387 E&S Lines 516 3,844 Investment income 74,835 11,301 Total all segments 152,545 32,658 Interest expense (7,359) (7,601) Corporate expenses (9,554) (9,060) Income, before federal income tax $ 135,632 15,997 Preferred stock dividends (2,453) — Income available to common stockholders, before federal income tax $ 133,179 15,997 |
Retirement Plans (Table)
Retirement Plans (Table) | 3 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Net Periodic Benefit Cost | Pension Plan Quarter ended March 31, ($ in thousands) 2021 2020 Net Periodic Pension Cost (Benefit): Interest cost $ 2,148 2,828 Expected return on plan assets (5,744) (5,477) Amortization of unrecognized net actuarial loss 625 704 Total net periodic pension cost (benefit) 1 $ (2,971) (1,945) 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 Quarter ended March 31, 2021 2020 Weighted-Average Expense Assumptions: Discount rate 2.68 % 3.33 % Effective interest rate for calculation of interest cost 2.06 2.95 Expected return on plan assets 5.40 5.80 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Schedule of Components of Comprehensive Income-Gross and Net of Tax | First Quarter 2021 ($ in thousands) Gross Tax Net Net income $ 135,632 26,362 109,270 Components of OCI: Unrealized losses on investment securities : Unrealized holding losses during the period (103,308) (21,695) (81,613) Unrealized losses on securities with credit loss recognized in earnings (11,320) (2,377) (8,943) Amounts reclassified into net income: HTM securities (2) — (2) Net realized losses on disposals and losses on intent-to-sell AFS securities 604 127 477 Credit loss expense 4,997 1,049 3,948 Total unrealized losses on investment securities (109,029) (22,896) (86,133) Defined benefit pension and post-retirement plans: Amounts reclassified into net income: Net actuarial loss 693 146 547 Total defined benefit pension and post-retirement plans 693 146 547 Other comprehensive loss (108,336) (22,750) (85,586) Comprehensive income $ 27,296 3,612 23,684 First Quarter 2020 ($ in thousands) Gross Tax Net Net income $ 15,997 761 15,236 Components of OCI: Unrealized losses on investment securities : Unrealized holding losses during the period (93,981) (19,736) (74,245) Unrealized losses on securities with credit loss recognized in earnings (65,390) (13,732) (51,658) Amounts reclassified into net income: HTM securities 25 5 20 Net realized losses on disposals and losses on intent-to-sell AFS securities 11,327 2,379 8,948 Credit loss expense 15,787 3,315 12,472 Total unrealized losses on investment securities (132,232) (27,769) (104,463) Defined benefit pension and post-retirement plans: Amounts reclassified into net income: Net actuarial loss 754 158 596 Total defined benefit pension and post-retirement plans 754 158 596 Other comprehensive loss (131,478) (27,611) (103,867) Comprehensive loss $ (115,481) (26,850) (88,631) |
Schedule of Components of Accumulated Other Comprehensive Income Net of Tax | March 31, 2021 Defined Benefit Net Unrealized (Losses) Gains on Investment Securities Total AOCI ($ in thousands) Credit Loss Related 1 HTM All Investments Balance, December 31, 2020 $ (2,546) 6 307,790 305,250 (85,064) 220,186 OCI before reclassifications (8,943) — (81,613) (90,556) — (90,556) Amounts reclassified from AOCI 3,948 (2) 477 4,423 547 4,970 Net current period OCI (4,995) (2) (81,136) (86,133) 547 (85,586) Balance, March 31, 2021 $ (7,541) 4 226,654 219,117 (84,517) 134,600 |
Schedule of Reclassifications Out Of Accumulated Other Comprehensive Income | Quarter ended March 31, Affected Line Item in the Unaudited Consolidated Statements of Income ($ in thousands) 2021 2020 HTM related Unrealized (gains) losses on HTM disposals $ — 1 Net realized and unrealized investment gains (losses) Amortization of net unrealized (gains) losses on HTM securities (2) 24 Net investment income earned (2) 25 Income before federal income tax — (5) Total federal income tax expense (2) 20 Net income Net realized losses on disposals and intent-to-sell AFS securities Net realized losses on disposals and intent-to-sell AFS securities 604 11,327 Net realized and unrealized investment gains (losses) 604 11,327 Income before federal income tax (127) (2,379) Total federal income tax expense 477 8,948 Net income Credit loss related Credit loss expense 4,997 15,787 Net realized and unrealized investment gains (losses) 4,997 15,787 Income before federal income tax (1,049) (3,315) Total federal income tax expense 3,948 12,472 Net income Defined benefit pension and post-retirement life plans Net actuarial loss 159 162 Loss and loss expense incurred 534 592 Other insurance expenses Total defined benefit pension and post-retirement life 693 754 Income before federal income tax (146) (158) Total federal income tax expense 547 596 Net income Total reclassifications for the period $ 4,970 22,036 Net income |
Statements of Cash Flows (Cash
Statements of Cash Flows (Cash Flow Supplemental Disclosures) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Interest | $ 8,722 | $ 8,854 | |
Federal income tax | 0 | 0 | |
Operating cash flows from operating leases | 2,226 | 2,130 | |
Operating cash flows from financing leases | 2 | 6 | |
Financing cash flows from finance leases | 115 | 142 | |
Assets acquired under finance lease arrangements | 183 | 29 | |
Assets acquired under operating lease arrangements | 16 | 3,828 | |
Non-cash purchase of property and equipment | 3 | 5 | |
Available-for-sale Securities | |||
Corporate actions related to securities | [1] | 26,085 | 8,040 |
Held-to-maturity Securities [Member] | |||
Corporate actions related to securities | [1] | $ 0 | $ 2,596 |
[1] | Examples of 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 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Schedule of Cash and Restricted Cash [Line Items] | ||||
Cash | $ 488 | $ 394 | ||
Restricted cash | 8,428 | 14,837 | ||
Total cash and restricted cash shown in the Statements of Cash Flows | $ 8,916 | $ 15,231 | $ 14,606 | $ 7,975 |
Investments (Available-For-Sale
Investments (Available-For-Sale Securities Disclosure) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Debt Securities, Available-for-sale [Line Items] | |||
Cost/Amortized Cost | $ 6,253,077 | $ 6,073,517 | |
Allowance for credit losses, Period beginning balance | 3,969 | $ 0 | |
Allowance for credit losses, Period ending balance | 8,781 | 15,787 | |
Interest and dividends due or accrued | 46,072 | 45,004 | |
Current provision for securities without prior allowance | 5,667 | 15,787 | |
Increase or (Decrease) on securities with prior allowance, excluding intent (or Requirements) to sell securities | (677) | 0 | |
Reductions for securities sold | (178) | 0 | |
Reductions for securities identified as intent (or requirement) to sell during the period | 0 | 0 | |
Unrealized Gains | 297,474 | 397,922 | |
Unrealized Losses | (20,129) | (11,542) | |
Debt Securities, Available-for-sale, Fair Value | 6,521,641 | 6,455,928 | |
Available-for-sale Securities | U.S. Government and Government Agencies [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cost/Amortized Cost | 134,725 | 110,038 | |
Allowance for credit losses, Period beginning balance | 0 | ||
Allowance for credit losses, Period ending balance | 0 | ||
Unrealized Gains | 3,653 | 6,239 | |
Unrealized Losses | (2,104) | (137) | |
Debt Securities, Available-for-sale, Fair Value | 136,274 | 116,140 | |
Available-for-sale Securities | Foreign Government [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cost/Amortized Cost | 18,920 | 16,801 | |
Allowance for credit losses, Period beginning balance | 1 | 0 | |
Allowance for credit losses, Period ending balance | 56 | 21 | |
Current provision for securities without prior allowance | 56 | 21 | |
Increase or (Decrease) on securities with prior allowance, excluding intent (or Requirements) to sell securities | (1) | 0 | |
Reductions for securities sold | 0 | 0 | |
Reductions for securities identified as intent (or requirement) to sell during the period | 0 | 0 | |
Unrealized Gains | 974 | 1,569 | |
Unrealized Losses | (136) | (3) | |
Debt Securities, Available-for-sale, Fair Value | 19,702 | 18,366 | |
Available-for-sale Securities | Obligations of States and Political Subdivisions [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cost/Amortized Cost | 1,140,442 | 1,159,588 | |
Allowance for credit losses, Period beginning balance | 4 | 0 | |
Allowance for credit losses, Period ending balance | 201 | 29 | |
Current provision for securities without prior allowance | 186 | 29 | |
Increase or (Decrease) on securities with prior allowance, excluding intent (or Requirements) to sell securities | 11 | 0 | |
Reductions for securities sold | 0 | 0 | |
Reductions for securities identified as intent (or requirement) to sell during the period | 0 | 0 | |
Unrealized Gains | 74,212 | 87,564 | |
Unrealized Losses | (360) | (11) | |
Debt Securities, Available-for-sale, Fair Value | 1,214,093 | 1,247,137 | |
Available-for-sale Securities | Corporate Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cost/Amortized Cost | 2,239,066 | 2,152,203 | |
Allowance for credit losses, Period beginning balance | 2,782 | 0 | |
Allowance for credit losses, Period ending balance | 6,166 | 13,412 | |
Current provision for securities without prior allowance | 4,058 | 13,412 | |
Increase or (Decrease) on securities with prior allowance, excluding intent (or Requirements) to sell securities | (527) | 0 | |
Reductions for securities sold | (147) | 0 | |
Reductions for securities identified as intent (or requirement) to sell during the period | 0 | 0 | |
Unrealized Gains | 122,761 | 180,971 | |
Unrealized Losses | (9,870) | (2,340) | |
Debt Securities, Available-for-sale, Fair Value | 2,345,791 | 2,328,052 | |
Available-for-sale Securities | Collateralized Loan Obligations and Other Asset Backed Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cost/Amortized Cost | 1,188,670 | 1,014,820 | |
Allowance for credit losses, Period beginning balance | 592 | 0 | |
Allowance for credit losses, Period ending balance | 1,470 | 1,565 | |
Current provision for securities without prior allowance | 1,001 | 1,565 | |
Increase or (Decrease) on securities with prior allowance, excluding intent (or Requirements) to sell securities | (106) | 0 | |
Reductions for securities sold | (17) | 0 | |
Reductions for securities identified as intent (or requirement) to sell during the period | 0 | 0 | |
Unrealized Gains | 18,917 | 20,166 | |
Unrealized Losses | (4,052) | (7,843) | |
Debt Securities, Available-for-sale, Fair Value | 1,202,065 | 1,026,551 | |
Available-for-sale Securities | Residential Mortgage Backed Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cost/Amortized Cost | 906,266 | 999,485 | |
Allowance for credit losses, Period beginning balance | 561 | 0 | |
Allowance for credit losses, Period ending balance | 864 | 722 | |
Current provision for securities without prior allowance | 356 | 722 | |
Increase or (Decrease) on securities with prior allowance, excluding intent (or Requirements) to sell securities | (39) | 0 | |
Reductions for securities sold | (14) | 0 | |
Reductions for securities identified as intent (or requirement) to sell during the period | 0 | 0 | |
Unrealized Gains | 43,367 | 53,065 | |
Unrealized Losses | (1,229) | (201) | |
Debt Securities, Available-for-sale, Fair Value | 947,540 | 1,051,788 | |
Available-for-sale Securities | Commercial Mortgage Backed Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cost/Amortized Cost | 624,988 | 620,582 | |
Allowance for credit losses, Period beginning balance | 29 | 0 | |
Allowance for credit losses, Period ending balance | 24 | 38 | |
Current provision for securities without prior allowance | 10 | 38 | |
Increase or (Decrease) on securities with prior allowance, excluding intent (or Requirements) to sell securities | (15) | 0 | |
Reductions for securities sold | 0 | 0 | |
Reductions for securities identified as intent (or requirement) to sell during the period | 0 | $ 0 | |
Unrealized Gains | 33,590 | 48,348 | |
Unrealized Losses | (2,378) | (1,007) | |
Debt Securities, Available-for-sale, Fair Value | 656,176 | 667,894 | |
Available-for-sale Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Interest and dividends due or accrued | $ 44,700 | $ 43,800 |
Investments (Fair Value and Gro
Investments (Fair Value and Gross Pre-Tax Net Unrealized Loss of Securities By Length of Time) (Details) - Available-for-sale Securities - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
AFS Fair Value, Less than 12 Months | $ 812,132 | $ 415,506 |
AFS Unrealized Losses, Less than 12 months | (16,207) | (6,108) |
AFS Fair Value, 12 months or longer | 143,129 | 185,335 |
AFS Unrealized Losses, 12 months or longer | (3,922) | (5,434) |
AFS Fair Value | 955,261 | 600,841 |
AFS Unrealized Losses | (20,129) | (11,542) |
U.S. Government and Government Agencies [Member] | ||
AFS Fair Value, Less than 12 Months | 53,796 | 11,519 |
AFS Unrealized Losses, Less than 12 months | (2,104) | (137) |
AFS Fair Value, 12 months or longer | 0 | 0 |
AFS Unrealized Losses, 12 months or longer | 0 | 0 |
AFS Fair Value | 53,796 | 11,519 |
AFS Unrealized Losses | (2,104) | (137) |
Foreign Government [Member] | ||
AFS Fair Value, Less than 12 Months | 3,313 | 1,122 |
AFS Unrealized Losses, Less than 12 months | (136) | (3) |
AFS Fair Value, 12 months or longer | 0 | 0 |
AFS Unrealized Losses, 12 months or longer | 0 | 0 |
AFS Fair Value | 3,313 | 1,122 |
AFS Unrealized Losses | (136) | (3) |
Obligations of States and Political Subdivisions [Member] | ||
AFS Fair Value, Less than 12 Months | 18,838 | 2,223 |
AFS Unrealized Losses, Less than 12 months | (352) | (11) |
AFS Fair Value, 12 months or longer | 369 | 0 |
AFS Unrealized Losses, 12 months or longer | (8) | 0 |
AFS Fair Value | 19,207 | 2,223 |
AFS Unrealized Losses | (360) | (11) |
Corporate Securities [Member] | ||
AFS Fair Value, Less than 12 Months | 306,052 | 65,187 |
AFS Unrealized Losses, Less than 12 months | (8,560) | (2,152) |
AFS Fair Value, 12 months or longer | 14,025 | 2,400 |
AFS Unrealized Losses, 12 months or longer | (1,310) | (188) |
AFS Fair Value | 320,077 | 67,587 |
AFS Unrealized Losses | (9,870) | (2,340) |
Collateralized Loan Obligations and Other Asset Backed Securities [Member] | ||
AFS Fair Value, Less than 12 Months | 282,939 | 261,746 |
AFS Unrealized Losses, Less than 12 months | (1,737) | (2,995) |
AFS Fair Value, 12 months or longer | 105,261 | 165,661 |
AFS Unrealized Losses, 12 months or longer | (2,315) | (4,848) |
AFS Fair Value | 388,200 | 427,407 |
AFS Unrealized Losses | (4,052) | (7,843) |
Residential Mortgage Backed Securities [Member] | ||
AFS Fair Value, Less than 12 Months | 76,684 | 18,227 |
AFS Unrealized Losses, Less than 12 months | (1,229) | (194) |
AFS Fair Value, 12 months or longer | 0 | 1,181 |
AFS Unrealized Losses, 12 months or longer | 0 | (7) |
AFS Fair Value | 76,684 | 19,408 |
AFS Unrealized Losses | (1,229) | (201) |
Commercial Mortgage Backed Securities [Member] | ||
AFS Fair Value, Less than 12 Months | 70,510 | 55,482 |
AFS Unrealized Losses, Less than 12 months | (2,089) | (616) |
AFS Fair Value, 12 months or longer | 23,474 | 16,093 |
AFS Unrealized Losses, 12 months or longer | (289) | (391) |
AFS Fair Value | 93,984 | 71,575 |
AFS Unrealized Losses | $ (2,378) | $ (1,007) |
Investments (Fixed Income Secur
Investments (Fixed Income Securities by Contractual Maturity) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Schedule of Fixed Income Securities [Line Items] | ||
Due in one year or less fair value, AFS | $ 453,772 | |
Due after one year through five years fair value, AFS | 3,400,223 | |
Due after five years through 10 years fair value, AFS | 2,043,563 | |
Due after 10 years fair value, AFS | 624,083 | |
Total AFS fixed income securities, Fair Value | 6,521,641 | $ 6,455,928 |
Due in one year or less carrying value, HTM | 1,057 | |
Due after one year through five years carrying value, HTM | 14,433 | |
Due after five years through 10 years carrying value, HTM | 8,854 | |
Due after 10 years carrying value, HTM | 0 | |
Total HTM fixed income securities carrying value | 24,344 | 16,824 |
Due in one year or less fair value, HTM | 1,065 | |
Due after one year through five years fair value, HTM | 15,325 | |
Due after five years through 10 years fair value, HTM | 8,814 | |
Due after 10 years fair value, HTM | 0 | |
Total HTM fixed income securities, Fair Value | $ 25,204 | $ 18,001 |
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 | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | ||
Net investment income earned | $ 69,716 | $ 55,967 | ||
Carrying Value | 290,153 | $ 266,322 | ||
Alternative Investments [Member] | ||||
Net investment income earned | 20,200 | $ 6,300 | ||
Other Securities [Member] | ||||
Carrying Value | 31,613 | 35,370 | ||
Remaining Commitment | 0 | 0 | ||
Maximum Exposure to Loss | [1] | 31,613 | 35,370 | |
Alternative Investments [Member] | ||||
Carrying Value | 258,540 | 230,952 | ||
Remaining Commitment | 218,033 | 215,728 | ||
Maximum Exposure to Loss | [1] | 476,573 | 446,680 | |
Alternative Investments [Member] | Private Equity Funds [Member] | ||||
Carrying Value | 182,032 | 157,276 | ||
Remaining Commitment | 104,070 | 100,905 | ||
Maximum Exposure to Loss | [1] | 286,102 | 258,181 | |
Alternative Investments [Member] | Private Credit Funds [Member] | ||||
Carrying Value | 56,819 | 54,017 | ||
Remaining Commitment | 98,072 | 98,330 | ||
Maximum Exposure to Loss | [1] | 154,891 | 152,347 | |
Alternative Investments [Member] | Real Assets [Member] | ||||
Carrying Value | 19,689 | 19,659 | ||
Remaining Commitment | 15,891 | 16,493 | ||
Maximum Exposure to Loss | [1] | 35,580 | 36,152 | |
Other Investments [Member] | ||||
Carrying Value | 290,153 | 266,322 | ||
Remaining Commitment | 218,033 | 215,728 | ||
Maximum Exposure to Loss | [1] | $ 508,186 | $ 482,050 | |
[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 | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||
Net investment income earned | $ 69,716 | $ 55,967 | |
Carrying Value | 290,153 | $ 266,322 | |
Alternative Investments [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Net investment income earned | 20,200 | 6,300 | |
Investments accounted for under the equity method [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Net investment income | 481,600 | 12,700 | |
Realized gains | 776,000 | 164,800 | |
Net change in unrealized appreciation | 4,630,800 | 1,204,000 | |
Insurance Subsidiaries' alternative investments income | $ 5,888,400 | $ 1,381,500 |
Investments (Investments Pledge
Investments (Investments Pledged as Collateral) (Details) $ in Millions | Mar. 31, 2021USD ($) |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Securities Pledged as Collateral On Deposit With Various State And Regulatory Agencies | $ 26 |
Securities Pledged As Collateral | 317.2 |
Federal Home Loan Bank of Indianapolis [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Securities Pledged as Collateral on FHLB | 100.6 |
Federal Home Loan Bank of New York [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Securities Pledged as Collateral on FHLB | 190.6 |
U.S. Government and Government Agencies [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Securities Pledged as Collateral On Deposit With Various State And Regulatory Agencies | 21 |
Securities Pledged As Collateral | 21 |
U.S. Government and Government Agencies [Member] | Federal Home Loan Bank of Indianapolis [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Securities Pledged as Collateral on FHLB | 0 |
U.S. Government and Government Agencies [Member] | Federal Home Loan Bank of New York [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Securities Pledged as Collateral on FHLB | 0 |
Obligations of States and Political Subdivisions [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Securities Pledged as Collateral On Deposit With Various State And Regulatory Agencies | 5 |
Securities Pledged As Collateral | 5 |
Obligations of States and Political Subdivisions [Member] | Federal Home Loan Bank of Indianapolis [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Securities Pledged as Collateral on FHLB | 0 |
Obligations of States and Political Subdivisions [Member] | Federal Home Loan Bank of New York [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Securities Pledged as Collateral on FHLB | 0 |
Residential Mortgage Backed Securities [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Securities Pledged as Collateral On Deposit With Various State And Regulatory Agencies | 0 |
Securities Pledged As Collateral | 249.2 |
Residential Mortgage Backed Securities [Member] | Federal Home Loan Bank of Indianapolis [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Securities Pledged as Collateral on FHLB | 93.7 |
Residential Mortgage Backed Securities [Member] | Federal Home Loan Bank of New York [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Securities Pledged as Collateral on FHLB | 155.5 |
Commercial Mortgage Backed Securities [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Securities Pledged as Collateral On Deposit With Various State And Regulatory Agencies | 0 |
Securities Pledged As Collateral | 42 |
Commercial Mortgage Backed Securities [Member] | Federal Home Loan Bank of Indianapolis [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Securities Pledged as Collateral on FHLB | 6.9 |
Commercial Mortgage Backed Securities [Member] | Federal Home Loan Bank of New York [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Securities Pledged as Collateral on FHLB | $ 35.1 |
Investments (Credit Concentrati
Investments (Credit Concentration Risk) (Details) | Mar. 31, 2021 | Dec. 31, 2020 |
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 | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net Investment Income [Line Items] | ||
Net investment income earned | $ 69,716 | $ 55,967 |
Investment Expense | (3,627) | (3,408) |
Fixed Income Securities [Member] | ||
Net Investment Income [Line Items] | ||
Net investment income earned | 52,823 | 50,253 |
Commercial Mortgage Loans [Member] | ||
Net Investment Income [Line Items] | ||
Net investment income earned | 514 | 62 |
Equity Securities [Member] | ||
Net Investment Income [Line Items] | ||
Net investment income earned | 2,488 | 1,552 |
Short-Term Investments [Member] | ||
Net Investment Income [Line Items] | ||
Net investment income earned | 85 | 1,166 |
Other Investments [Member] | ||
Net Investment Income [Line Items] | ||
Net investment income earned | 17,433 | 6,342 |
Alternative Investments [Member] | ||
Net Investment Income [Line Items] | ||
Net investment income earned | $ 20,200 | $ 6,300 |
Investments (Net Realized and U
Investments (Net Realized and Unrealized Investment Gains and (Losses)) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Gain (Loss) on Securities [Line Items] | ||
Gross gains on sales | $ 3,676 | $ 5,676 |
Gross losses on sales | (4,471) | (1,576) |
Net realized investment gains (losses) on disposals | (795) | 4,100 |
Net unrealized gains (losses) on equity securities | 11,280 | (17,137) |
Losses on securities for which we have the intent to sell | (362) | (15,602) |
Net realized and unrealized investment gains (losses) | 5,119 | (44,666) |
Available-for-sale Securities [Member] | ||
Gain (Loss) on Securities [Line Items] | ||
Net credit loss expense on fixed maturities | (4,997) | (15,787) |
Held-to-maturity Securities [Member] | ||
Gain (Loss) on Securities [Line Items] | ||
Net credit loss expense on fixed maturities | (7) | 0 |
Commercial Mortgage Loans [Member] | ||
Gain (Loss) on Securities [Line Items] | ||
Net credit loss expense on fixed maturities | $ 0 | $ (240) |
Investments (Unrealized Gains (
Investments (Unrealized Gains (Losses) on Equity Securities) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Gain (Loss) on Securities [Line Items] | ||
Unrealized gains (losses) recognized in income on equity securities on securities remaining in our portfolio at March 31, 2021 | $ 10,097 | $ (17,140) |
Unrealized gains (losses) recognized in income on equity securities on securities sold during period | 1,183 | 3 |
Total unrealized gains (losses) recognized in income on equity securities | $ 11,280 | $ (17,137) |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Values and Estimated Fair Values of Financial Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Finance lease liabilities | $ 577 | $ 508 |
Long-term debt, carrying amount | 550,904 | 550,743 |
Long-term debt, fair value | 643,157 | 695,596 |
Seven Point Twenty Five Percent Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 60,613 | 66,148 |
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, carrying amount | 49,915 | 49,914 |
Six Point Seventy Percent Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 119,818 | 127,886 |
Six Point Seventy Percent Senior Notes [Member] | Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, carrying amount | 99,504 | 99,499 |
Five Point Three Hundred Seventy Five Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 347,155 | 383,669 |
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, carrying amount | 294,263 | 294,241 |
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 | 25,107 | 25,182 |
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, carrying amount | 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, fair value | 25,127 | 25,198 |
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, carrying amount | 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, fair value | 65,337 | 67,513 |
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, carrying amount | 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, carrying amount | 553,682 | 553,654 |
Unamortized Debt Issuance Costs [Member] | Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Unamortized debt issuance costs | $ (3,355) | $ (3,419) |
Fair Value Measurements (Quanti
Fair Value Measurements (Quantitative Disclosures of Fair Value Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | |
AFS Fixed Income Securities | $ 6,521,641 | $ 6,455,928 | |
Equity Securities | 324,255 | 310,367 | |
Short-term investments | 337,807 | 409,852 | |
Net Asset Value | [1] | 53,500 | 46,800 |
Fair Value, Recurring [Member] | |||
AFS Fixed Income Securities | 6,521,641 | 6,455,928 | |
Equity Securities | 324,255 | 310,367 | |
Short-term investments | 337,807 | 409,852 | |
Total assets measured at fair value | 7,183,703 | 7,176,147 | |
U.S. Government and Government Agencies [Member] | Fair Value, Recurring [Member] | |||
AFS Fixed Income Securities | 136,274 | 116,140 | |
Foreign Government [Member] | Fair Value, Recurring [Member] | |||
AFS Fixed Income Securities | 19,702 | 18,366 | |
Obligations of States and Political Subdivisions [Member] | Fair Value, Recurring [Member] | |||
AFS Fixed Income Securities | 1,214,093 | 1,247,137 | |
Corporate Securities [Member] | Fair Value, Recurring [Member] | |||
AFS Fixed Income Securities | 2,345,791 | 2,328,052 | |
Collateralized Loan Obligations and Other Asset Backed Securities [Member] | Fair Value, Recurring [Member] | |||
AFS Fixed Income Securities | 1,202,065 | 1,026,551 | |
Residential Mortgage Backed Securities [Member] | Fair Value, Recurring [Member] | |||
AFS Fixed Income Securities | 947,540 | 1,051,788 | |
Commercial Mortgage Backed Securities [Member] | Fair Value, Recurring [Member] | |||
AFS Fixed Income Securities | 656,176 | 667,894 | |
Common Stock [Member] | Fair Value, Recurring [Member] | |||
Equity Securities | [1] | 322,557 | 308,632 |
Preferred Stock [Member] | Fair Value, Recurring [Member] | |||
Equity Securities | 1,698 | 1,735 | |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair Value, Recurring [Member] | |||
AFS Fixed Income Securities | 58,540 | 40,960 | |
Equity Securities | 270,715 | 263,581 | |
Short-term investments | 337,075 | 405,400 | |
Total assets measured at fair value | 666,330 | 709,941 | |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | U.S. Government and Government Agencies [Member] | Fair Value, Recurring [Member] | |||
AFS Fixed Income Securities | 58,540 | 40,960 | |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Foreign Government [Member] | Fair Value, Recurring [Member] | |||
AFS Fixed Income Securities | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Obligations of States and Political Subdivisions [Member] | Fair Value, Recurring [Member] | |||
AFS Fixed Income Securities | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Corporate Securities [Member] | Fair Value, Recurring [Member] | |||
AFS Fixed Income Securities | 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, Recurring [Member] | |||
AFS Fixed Income Securities | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Residential Mortgage Backed Securities [Member] | Fair Value, Recurring [Member] | |||
AFS Fixed Income Securities | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Commercial Mortgage Backed Securities [Member] | Fair Value, Recurring [Member] | |||
AFS Fixed Income Securities | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Common Stock [Member] | Fair Value, Recurring [Member] | |||
Equity Securities | [1] | 269,017 | 261,846 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Preferred Stock [Member] | Fair Value, Recurring [Member] | |||
Equity Securities | 1,698 | 1,735 | |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | |||
AFS Fixed Income Securities | 6,300,994 | 6,284,999 | |
Equity Securities | 0 | 0 | |
Short-term investments | 732 | 4,452 | |
Total assets measured at fair value | 6,301,726 | 6,289,451 | |
Significant Other Observable Inputs (Level 2) [Member] | U.S. Government and Government Agencies [Member] | Fair Value, Recurring [Member] | |||
AFS Fixed Income Securities | 77,734 | 75,180 | |
Significant Other Observable Inputs (Level 2) [Member] | Foreign Government [Member] | Fair Value, Recurring [Member] | |||
AFS Fixed Income Securities | 19,702 | 18,366 | |
Significant Other Observable Inputs (Level 2) [Member] | Obligations of States and Political Subdivisions [Member] | Fair Value, Recurring [Member] | |||
AFS Fixed Income Securities | 1,206,197 | 1,244,243 | |
Significant Other Observable Inputs (Level 2) [Member] | Corporate Securities [Member] | Fair Value, Recurring [Member] | |||
AFS Fixed Income Securities | 2,256,469 | 2,257,352 | |
Significant Other Observable Inputs (Level 2) [Member] | Collateralized Loan Obligations and Other Asset Backed Securities [Member] | Fair Value, Recurring [Member] | |||
AFS Fixed Income Securities | 1,137,176 | 970,176 | |
Significant Other Observable Inputs (Level 2) [Member] | Residential Mortgage Backed Securities [Member] | Fair Value, Recurring [Member] | |||
AFS Fixed Income Securities | 947,540 | 1,051,788 | |
Significant Other Observable Inputs (Level 2) [Member] | Commercial Mortgage Backed Securities [Member] | Fair Value, Recurring [Member] | |||
AFS Fixed Income Securities | 656,176 | 667,894 | |
Significant Other Observable Inputs (Level 2) [Member] | Common Stock [Member] | Fair Value, Recurring [Member] | |||
Equity Securities | [1] | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Preferred Stock [Member] | Fair Value, Recurring [Member] | |||
Equity Securities | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Recurring [Member] | |||
AFS Fixed Income Securities | 162,107 | 129,969 | |
Equity Securities | 0 | 0 | |
Short-term investments | 0 | 0 | |
Total assets measured at fair value | 162,107 | 129,969 | |
Significant Unobservable Inputs (Level 3) [Member] | U.S. Government and Government Agencies [Member] | Fair Value, Recurring [Member] | |||
AFS Fixed Income Securities | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Foreign Government [Member] | Fair Value, Recurring [Member] | |||
AFS Fixed Income Securities | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Obligations of States and Political Subdivisions [Member] | Fair Value, Recurring [Member] | |||
AFS Fixed Income Securities | 7,896 | 2,894 | |
Significant Unobservable Inputs (Level 3) [Member] | Corporate Securities [Member] | Fair Value, Recurring [Member] | |||
AFS Fixed Income Securities | 89,322 | 70,700 | |
Significant Unobservable Inputs (Level 3) [Member] | Collateralized Loan Obligations and Other Asset Backed Securities [Member] | Fair Value, Recurring [Member] | |||
AFS Fixed Income Securities | 64,889 | 56,375 | |
Significant Unobservable Inputs (Level 3) [Member] | Residential Mortgage Backed Securities [Member] | Fair Value, Recurring [Member] | |||
AFS Fixed Income Securities | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Commercial Mortgage Backed Securities [Member] | Fair Value, Recurring [Member] | |||
AFS Fixed Income Securities | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Common Stock [Member] | Fair Value, Recurring [Member] | |||
Equity Securities | [1] | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Preferred Stock [Member] | Fair Value, Recurring [Member] | |||
Equity Securities | $ 0 | $ 0 | |
[1] | Investments amounting to $53.5 million at March 31, 2021, and $46.8 million at December 31, 2020, were measured at fair value using net asset value per share (or its practical expedient) and are not classified in the fair value hierarchy. These investments are not redeemable and the timing of liquidations of the underlying assets is unknown at each reporting period. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to total assets measured at fair value. |
Fair Value Measurements (Change
Fair Value Measurements (Change in Fair Value of Securities Using Level 3 Inputs) (Details) - Available-for-sale Securities [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Obligations of States and Political Subdivisions [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value, December 31, | $ 2,894 | $ 0 |
Total net (losses) gains for the period included in OCI | (99) | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 5,101 | 2,890 |
Transfers out of Level 3 | 0 | 0 |
Fair value, March 31 | 7,896 | 2,890 |
Period change unrealized (losses) gains in earnings for assets held at period end | 0 | 0 |
Period change unrealized gains (losses) in OCI for assets held at period end | (99) | 0 |
Corporate Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value, December 31, | 70,700 | 17,051 |
Total net (losses) gains for the period included in OCI | (2,388) | 1 |
Purchases | 21,100 | 3,002 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 0 | 4,192 |
Transfers out of Level 3 | 0 | 0 |
Fair value, March 31 | 89,322 | 24,185 |
Period change unrealized (losses) gains in earnings for assets held at period end | (91) | (61) |
Period change unrealized gains (losses) in OCI for assets held at period end | (2,388) | 1 |
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, | 56,375 | 17,034 |
Total net (losses) gains for the period included in OCI | (1,116) | (1,756) |
Purchases | 10,672 | 4,831 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | (412) | 0 |
Transfers into Level 3 | 0 | 20,107 |
Transfers out of Level 3 | (490) | (3,630) |
Fair value, March 31 | 64,889 | 36,372 |
Period change unrealized (losses) gains in earnings for assets held at period end | (143) | (214) |
Period change unrealized gains (losses) in OCI for assets held at period end | (1,116) | (1,756) |
Investments [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value, December 31, | 129,969 | 34,085 |
Total net (losses) gains for the period included in OCI | (3,603) | (1,755) |
Purchases | 31,772 | 7,833 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | (412) | 0 |
Transfers into Level 3 | 5,101 | 27,189 |
Transfers out of Level 3 | (490) | (3,630) |
Fair value, March 31 | 162,107 | 63,447 |
Period change unrealized (losses) gains in earnings for assets held at period end | (234) | (275) |
Period change unrealized gains (losses) in OCI for assets held at period end | (3,603) | (1,755) |
Gain (Loss) on Investments [Member] | Obligations of States and Political Subdivisions [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total net (losses) gains for the period included in net income | 0 | 0 |
Gain (Loss) on Investments [Member] | Corporate Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total net (losses) gains for the period included in net income | (91) | (61) |
Gain (Loss) on Investments [Member] | Collateralized Loan Obligations and Other Asset Backed Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total net (losses) gains for the period included in net income | (143) | (214) |
Gain (Loss) on Investments [Member] | Investments [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total net (losses) gains for the period included in net income | (234) | (275) |
Net Investment Income Earned [Member] | Obligations of States and Political Subdivisions [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total net (losses) gains for the period included in net income | 0 | 0 |
Net Investment Income Earned [Member] | Corporate Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total net (losses) gains for the period included in net income | 1 | 0 |
Net Investment Income Earned [Member] | Collateralized Loan Obligations and Other Asset Backed Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total net (losses) gains for the period included in net income | 3 | 0 |
Net Investment Income Earned [Member] | Investments [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total net (losses) gains for the period included in net income | $ 4 | $ 0 |
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 | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed income securities, held-to-maturity - fair value | $ 25,204 | $ 18,001 |
Long-term debt, fair value | 643,157 | 695,596 |
Commercial mortgage loan, fair value | 62,233 | 47,289 |
Seven Point Twenty Five Percent Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 60,613 | 66,148 |
Six Point Seventy Percent Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 119,818 | 127,886 |
Five Point Three Hundred Seventy Five Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 347,155 | 383,669 |
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 | 25,107 | 25,182 |
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 | 25,127 | 25,198 |
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 | 65,337 | 67,513 |
Long-term Debt [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 643,157 | 695,596 |
Obligations of States and Political Subdivisions [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed income securities, held-to-maturity - fair value | 4,738 | 4,795 |
Corporate Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed income securities, held-to-maturity - fair value | 20,466 | 13,206 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed income securities, held-to-maturity - fair value | 0 | 0 |
Long-term debt, fair value | 0 | 0 |
Commercial mortgage loan, fair value | 0 | 0 |
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 | 0 |
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] | ||
Fixed income securities, held-to-maturity - 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] | ||
Fixed income securities, held-to-maturity - fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed income securities, held-to-maturity - fair value | 25,204 | 18,001 |
Long-term debt, fair value | 643,157 | 695,596 |
Commercial mortgage loan, fair value | 0 | 0 |
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 | 60,613 | 66,148 |
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 | 119,818 | 127,886 |
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 | 347,155 | 383,669 |
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 | 25,107 | 25,182 |
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 | 25,127 | 25,198 |
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 | 65,337 | 67,513 |
Significant Other Observable Inputs (Level 2) [Member] | Obligations of States and Political Subdivisions [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed income securities, held-to-maturity - fair value | 4,738 | 4,795 |
Significant Other Observable Inputs (Level 2) [Member] | Corporate Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed income securities, held-to-maturity - fair value | 20,466 | 13,206 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed income securities, held-to-maturity - fair value | 0 | 0 |
Long-term debt, fair value | 0 | 0 |
Commercial mortgage loan, fair value | 62,233 | 47,289 |
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 | 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] | ||
Fixed income securities, held-to-maturity - fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Corporate Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed income securities, held-to-maturity - fair value | $ 0 | $ 0 |
Allowance for Uncollectible P_3
Allowance for Uncollectible Premiums Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | |||||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | ||
Premiums Receiveable, Allowance for Credit Loss [Line Items] | ||||||
Premium Receivable, Allowance for Credit Loss | $ 21,000 | $ 21,000 | $ 6,400 | |||
Allowance for credit losses, net of write-offs | $ 10,500 | |||||
Premiums Receivable [Member] | ||||||
Premiums Receiveable, Allowance for Credit Loss [Line Items] | ||||||
Premium Receivable, Allowance for Credit Loss | 21,000 | 18,000 | 21,000 | $ 21,000 | 7,458 | |
Current period provision for expected credit losses | 808 | 11,195 | ||||
Write-offs charged against the allowance for credit losses | (874) | (653) | ||||
Recoveries | $ 66 | $ 0 | ||||
Premiums Receivable [Member] | Retained Earnings [Member] | Accounting Standards Update 2016-13 [Member] | ||||||
Premiums Receiveable, Allowance for Credit Loss [Line Items] | ||||||
Premium Receivable, Allowance for Credit Loss | $ 0 | $ 1,058 | [1] | |||
[1] | Represents the impact of our adoption of ASU 2016-13, Financial Instruments - Credit Losses . |
Reinsurance Recoverable Credit
Reinsurance Recoverable Credit Ratings (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||
Reinsurance Recoverable, Credit Quality Indicator, Date Updated | Mar. 31, 2021 | |||
Reinsurance recoverable | $ 582,696 | $ 589,269 | ||
Reinsurance Recoverable, Allowance for Credit Loss | (1,840) | (1,777) | $ (1,502) | $ (4,400) |
Reinsurance recoverable, net of allowance for credit losses | 580,856 | 587,492 | ||
AM Best, A++ Rating [Member] | ||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||
Reinsurance Recoverables, Gross | 38,047 | 37,566 | ||
Reinsurance Recoverable, Current | 37,939 | 37,464 | ||
Reinsurance Recoverable, Past Due | 108 | 102 | ||
AM Best, A+ Rating [Member] | ||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||
Reinsurance Recoverables, Gross | 356,418 | 357,298 | ||
Reinsurance Recoverable, Current | 352,386 | 354,846 | ||
Reinsurance Recoverable, Past Due | 4,032 | 2,452 | ||
AM Best, A Rating [Member] | ||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||
Reinsurance Recoverables, Gross | 105,455 | 106,067 | ||
Reinsurance Recoverable, Current | 105,068 | 105,652 | ||
Reinsurance Recoverable, Past Due | 387 | 415 | ||
AM Best, A- Rating [Member] | ||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||
Reinsurance Recoverables, Gross | 2,177 | 2,139 | ||
Reinsurance Recoverable, Current | 2,177 | 2,139 | ||
Reinsurance Recoverable, Past Due | 0 | 0 | ||
AM Best, B++ Rating [Member] | ||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||
Reinsurance Recoverables, Gross | 381 | 380 | ||
Reinsurance Recoverable, Current | 117 | 56 | ||
Reinsurance Recoverable, Past Due | 264 | 324 | ||
AM Best, B+ Rating [Member] | ||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||
Reinsurance Recoverables, Gross | 0 | 0 | ||
Reinsurance Recoverable, Current | 0 | 0 | ||
Reinsurance Recoverable, Past Due | 0 | 0 | ||
AM Best Rated Reinsurer [Member] | ||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||
Reinsurance Recoverables, Gross | 502,478 | 503,450 | ||
Reinsurance Recoverable, Current | 497,687 | 500,157 | ||
Reinsurance Recoverable, Past Due | 4,791 | 3,293 | ||
Total federal and state pools [Member] | ||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||
Reinsurance Recoverables, Gross | 76,179 | 82,575 | ||
Reinsurance Recoverable, Current | 76,179 | 82,575 | ||
Reinsurance Recoverable, Past Due | 0 | 0 | ||
Other than Federal And State Pools [Member] | ||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||
Reinsurance Recoverables, Gross | 4,039 | 3,244 | ||
Reinsurance Recoverable, Current | 3,179 | 2,676 | ||
Reinsurance Recoverable, Past Due | 860 | 568 | ||
Total Non Rated Reinsurer [Member] | ||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||
Reinsurance Recoverables, Gross | 80,218 | 85,819 | ||
Reinsurance Recoverable, Current | 79,358 | 85,251 | ||
Reinsurance Recoverable, Past Due | 860 | 568 | ||
Reinsurance Recoverable for Paid and Unpaid Claims and Claims Adjustments, Gross [Member] | ||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||
Reinsurance Recoverable, Current | 577,045 | 585,408 | ||
Reinsurance Recoverable, Past Due | $ 5,651 | $ 3,861 |
Reinsurance Allowance for Credi
Reinsurance Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Allowance for credit losses, beginning of period | $ 1,777 | $ 4,400 | |
Current period provision for expected credit losses | 63 | 5 | |
Write-offs charged against the allowance for credit losses | 0 | 0 | |
Recoveries | 0 | 0 | |
Allowance for credit losses, end of period | 1,840 | 1,502 | |
Reinsurance Recoverable [Domain] | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Allowance for credit losses, beginning of period | 1,777 | 1,497 | |
Retained Earnings [Member] | Reinsurance Recoverable [Domain] | Accounting Standards Update 2016-13 [Member] | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Allowance for credit losses, beginning of period | $ 0 | $ (2,903) | [1] |
[1] | includes an adjustment of $2.9 million related to our adoption of ASU 2016-13, Financial Instruments - Credit Losses. |
Reinsurance (List of Direct, As
Reinsurance (List of Direct, Assumed, and Ceded Reinsurance Amounts) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Premiums written: | ||
Change in Direct Premiums Written | $ 162,000 | |
Change in Direct Premiums Written Percentage | 22.00% | |
Premiums earned: | ||
Net | $ 724,960 | $ 651,703 |
Loss and loss expenses incurred: | ||
Net | $ 413,401 | 400,324 |
Return audit and midterm endorsement premium [Member] | COVID-19 [Member] | ||
Premiums written: | ||
Direct | 75,000 | |
Change in Direct Premiums Written Percentage | 11.00% | |
Change in Direct Premiums Written | ||
Premiums written: | ||
Direct | $ 87,000 | |
Direct Assumed and Ceded Reinsurance Amounts [Member] | ||
Premiums written: | ||
Direct | 908,774 | 746,431 |
Assumed | 5,533 | 6,043 |
Ceded | (116,129) | (105,147) |
Net | 798,178 | 647,327 |
Premiums earned: | ||
Direct | 837,369 | 754,892 |
Assumed | 5,676 | 6,173 |
Ceded | (118,085) | (109,362) |
Net | 724,960 | 651,703 |
Loss and loss expenses incurred: | ||
Direct | 441,507 | 425,795 |
Assumed | 3,447 | 4,898 |
Ceded | (31,553) | (30,369) |
Net | $ 413,401 | $ 400,324 |
Reinsurance (Ceded Premiums and
Reinsurance (Ceded Premiums and Losses Related to Flood Operations) (Details) - National Flood Insurance Program [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Percentage of NFIP claims ceded by federal government | 100.00% | |
Ceded premiums written | $ (65,742) | $ (62,087) |
Ceded premiums earned | (67,519) | (66,861) |
Ceded loss and loss expenses incurred | $ (2,207) | $ (5,096) |
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 | 3 Months Ended | |||||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Gross reserve for loss and loss expense, at beginning of year | $ 4,260,355 | $ 4,067,163 | ||||
Less: reinsurance recoverable on unpaid loss and loss expense, at beginning of year | 554,269 | 547,066 | [1] | |||
Net reserve for loss and loss expense, at beginning of year | 3,706,086 | 3,520,097 | ||||
Incurred loss and loss expense for claims occurring in the current year | 447,170 | 407,276 | ||||
Total incurred loss and loss expense | 413,401 | 400,324 | ||||
Paid loss and loss expense for claims occurring in the current year | 80,158 | 70,610 | ||||
Paid loss and loss expense for claims occurring in the prior years | 243,687 | 281,736 | ||||
Total paid loss and loss expense | 323,845 | 352,346 | ||||
Net reserve for loss and loss expense, at end of period | 3,795,642 | 3,568,075 | ||||
Add: reinsurance recoverable on unpaid loss and loss expense, at end of period | 564,546 | 535,560 | ||||
Gross reserve for loss and loss expense, at end of period | 4,360,188 | 4,103,635 | ||||
Allowance for credit losses | (1,840) | (1,502) | $ (1,777) | $ (4,400) | ||
Change in Historical Claim Rate Experience [Member] | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Prior year development | (33,769) | (6,952) | ||||
Casualty Insurance Product Line [Member] | Change in Historical Claim Rate Experience [Member] | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Prior year development | (35,000) | (10,000) | ||||
Casualty Insurance Product Line [Member] | Change in Historical Claim Rate Experience [Member] | Workers' Compensation Insurance [Member] | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Prior year development | (15,000) | |||||
Casualty Insurance Product Line [Member] | Change in Historical Claim Rate Experience [Member] | General Liability [Member] | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Prior year development | (15,000) | |||||
Property Insurance [Member] | Change in Historical Claim Rate Experience [Member] | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Prior year development | 1,200 | $ 3,000 | ||||
E&S Lines | Casualty Insurance Product Line [Member] | Change in Historical Claim Rate Experience [Member] | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Prior year development | $ (5,000) | |||||
Reinsurance Recoverable [Domain] | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Allowance for credit losses | (1,777) | (1,497) | ||||
Reinsurance Recoverable [Domain] | Retained Earnings [Member] | Accounting Standards Update 2016-13 [Member] | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Allowance for credit losses | $ 0 | $ 2,903 | [1] | |||
[1] | includes an adjustment of $2.9 million related to our adoption of ASU 2016-13, Financial Instruments - Credit Losses. |
Segment Information Narrative (
Segment Information Narrative (Details) | 3 Months Ended |
Mar. 31, 2021 | |
Number of Operating Segments | 4 |
Segment Information (Revenue by
Segment Information (Revenue by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Total net premiums earned | $ 724,960 | $ 651,703 |
Miscellaneous income | 4,112 | 1,825 |
Net investment income | 69,716 | 55,967 |
Net realized and unrealized investment gains (losses) | 5,119 | (44,666) |
Total Investments revenue | 74,835 | 11,301 |
Total revenues | 803,907 | 664,829 |
Standard Commercial Lines | ||
Segment Reporting Information [Line Items] | ||
Miscellaneous income | 3,707 | 1,391 |
Total revenues | 592,848 | 517,971 |
Standard Commercial Lines | Commercial Property [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net premiums earned | 102,810 | 93,869 |
Standard Commercial Lines | Workers Compensation [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net premiums earned | 78,190 | 66,706 |
Standard Commercial Lines | General Liability [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net premiums earned | 193,520 | 164,580 |
Standard Commercial Lines | Commercial Automobile [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net premiums earned | 171,881 | 149,690 |
Standard Commercial Lines | Business Owners Policies [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net premiums earned | 28,627 | 27,036 |
Standard Commercial Lines | Bonds Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net premiums earned | 8,593 | 9,639 |
Standard Commercial Lines | Other Commercial [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net premiums earned | 5,520 | 5,060 |
Standard Personal Lines | ||
Segment Reporting Information [Line Items] | ||
Miscellaneous income | 405 | 434 |
Total revenues | 74,226 | 76,562 |
Standard Personal Lines | Personal Automobile [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net premiums earned | 41,393 | 42,487 |
Standard Personal Lines | Homeowners [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net premiums earned | 30,598 | 31,490 |
Standard Personal Lines | Other Personal [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net premiums earned | 1,830 | 2,151 |
E&S Lines | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 61,998 | 58,995 |
E&S Lines | Casualty Insurance Product Line [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net premiums earned | 43,833 | 44,072 |
E&S Lines | Property Insurance [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net premiums earned | $ 18,165 | $ 14,923 |
Segment Information (Income Bef
Segment Information (Income Before and After Federal Income Tax) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Net investment income | $ 69,716 | $ 55,967 |
Net realized and unrealized investment gains (losses) | 5,119 | (44,666) |
Total investment segment income, before federal income tax | 74,835 | 11,301 |
Tax on investment income | 14,448 | 1,104 |
Total investment segment income, after federal income tax | 60,387 | 10,197 |
Standard Commercial Lines | ||
Segment Reporting Information [Line Items] | ||
Underwriting gain, before federal income tax | 69,499 | 17,126 |
Underwriting gain, after federal income tax | $ 54,904 | $ 13,529 |
Combined ratio | 88.20% | 96.70% |
ROE Contribution | 8.60% | 2.40% |
Standard Personal Lines | ||
Segment Reporting Information [Line Items] | ||
Underwriting gain, before federal income tax | $ 7,695 | $ 387 |
Underwriting gain, after federal income tax | $ 6,079 | $ 306 |
Combined ratio | 89.60% | 99.50% |
ROE Contribution | 1.00% | 0.10% |
E&S Lines | ||
Segment Reporting Information [Line Items] | ||
Underwriting gain, before federal income tax | $ 516 | $ 3,844 |
Underwriting gain, after federal income tax | $ 408 | $ 3,037 |
Combined ratio | 99.20% | 93.50% |
ROE Contribution | 0.10% | 0.60% |
Investments | ||
Segment Reporting Information [Line Items] | ||
ROE Contribution | 8.90% | 8.50% |
Segment Information (Reconcilia
Segment Information (Reconciliation of Segment Results to Income Before Federal Income Tax (Details)) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Investment income | $ 74,835 | $ 11,301 |
Interest expense | (7,359) | (7,601) |
Corporate expenses | (9,554) | (9,060) |
Income before federal income tax | 135,632 | 15,997 |
Preferred stock dividends | (2,453) | 0 |
Income available to common stockholders, before tax | 133,179 | 15,997 |
Standard Commercial Lines | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Underwriting gain, before federal income tax | 69,499 | 17,126 |
Standard Personal Lines | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Underwriting gain, before federal income tax | 7,695 | 387 |
E&S Lines | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Underwriting gain, before federal income tax | 516 | 3,844 |
Operating Segments | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Total income, before federal income tax all segments | $ 152,545 | $ 32,658 |
Retirement Plans (Components of
Retirement Plans (Components of Net Periodic Benefit Cost) (Details) - Pension Plan [Member] - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Interest cost | $ 2,148 | $ 2,828 | |
Expected return on plan assets | (5,744) | (5,477) | |
Amortization of unrecognized net actuarial loss | 625 | 704 | |
Total net periodic pension cost (benefit) | [1] | $ (2,971) | $ (1,945) |
[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] | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 2.68% | 3.33% |
Effective interest rate for calculation of interest cost | 2.06% | 2.95% |
Expected return on plan assets | 5.40% | 5.80% |
Comprehensive Income (Component
Comprehensive Income (Components of Comprehensive Income-Gross and Net of Tax) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net income, Gross | $ 135,632 | $ 15,997 |
Unrealized holding losses during the period, Gross | (103,308) | (93,981) |
Unrealized losses on securities with credit loss recognized in earnings; Gross | (11,320) | (65,390) |
Amounts reclassified into net income: HTM securities, Gross | (2) | 25 |
Amounts reclassified into net income: Net realized losses on disposals and losses on intent-to-sell AFS securities, Gross | 604 | 11,327 |
Amounts reclassified into net income: Credit loss expense, Gross | 4,997 | 15,787 |
Total unrealized losses on investment securities, Gross | (109,029) | (132,232) |
Amount reclassified into net income: Net actuarial loss, Gross | 693 | 754 |
Total defined benefit pension and post-retirement benefit plans, Gross | 693 | 754 |
Other comprehensive loss, Gross | (108,336) | (131,478) |
Comprehensive income (loss) before tax | 27,296 | (115,481) |
Net income, Tax | 26,362 | 761 |
Unrealized holding losses during the period, Tax | (21,695) | (19,736) |
Unrealized losses on securities with credit loss recognized in earnings; Tax | (2,377) | (13,732) |
Amounts reclassified into net income: HTM securities, Tax | 0 | 5 |
Amounts reclassified into net income: Net realized losses on disposals and losses on intent-to-sell AFS securities, Tax | 127 | 2,379 |
Amounts reclassified into net income: Credit loss expense, Tax | 1,049 | 3,315 |
Total unrealized losses on investment securities, Tax | (22,896) | (27,769) |
Amount reclassified into net income: Net actuarial loss, Tax | 146 | 158 |
Total defined benefit pension and post-retirement benefit plans, Tax | 146 | 158 |
Other comprehensive loss, Tax | (22,750) | (27,611) |
Comprehensive income (loss), Tax | 3,612 | (26,850) |
Net income | 109,270 | 15,236 |
Unrealized holding losses arising during period, Net | (81,613) | (74,245) |
Unrealized losses on securities with credit loss recognized in earnings, Net | (8,943) | (51,658) |
Amounts reclassified into net income: HTM Securities, Net | (2) | 20 |
Amounts reclassified into net income: Net realized losses on disposals and losses on intent-to-sell AFS Securities, Net | 477 | 8,948 |
Amounts reclassified into net income: Credit loss expense, Net | 3,948 | 12,472 |
Total Unrealized Losses on Investment Securities, Net | (86,133) | (104,463) |
Amount reclassified into net income: Net actuarial loss, Net | 547 | 596 |
Total defined benefit pension and post-retirement plans, Net | 547 | 596 |
Other Comprehensive loss, Net | (85,586) | (103,867) |
Comprehensive Income (Loss), Net | $ 23,684 | $ (88,631) |
Comprehensive Income (Compone_2
Comprehensive Income (Components of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance, December 31, 2020 | $ 220,186 | |
Amounts reclassified from AOCI, HTM related | (2) | $ 20 |
Amount reclassified into net income: Net actuarial loss | 547 | 596 |
Other comprehensive loss | (85,586) | (103,867) |
Other comprehensive income, defined pension and post retirement plans | 547 | 596 |
Ending Balance, March 31, 2021 | 134,600 | |
Available-for-sale Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance, December 31, 2020 | 307,790 | |
OCI before reclassifications | (81,613) | |
Amounts reclassified from AOCI, All Other | 477 | |
Other comprehensive loss | (81,136) | |
Ending Balance, March 31, 2021 | 226,654 | |
Investments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance, December 31, 2020 | 305,250 | |
OCI before reclassifications | (90,556) | |
Amounts reclassified from AOCI | 4,423 | |
Other comprehensive loss | (86,133) | |
Ending Balance, March 31, 2021 | 219,117 | |
Accumulated Other-than-Temporary Impairment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance, December 31, 2020 | (2,546) | |
OCI before reclassifications | (8,943) | |
Amounts reclassified from AOCI, Credit loss related | 3,948 | |
Other comprehensive loss | (4,995) | |
Ending Balance, March 31, 2021 | (7,541) | |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Held-to-maturity Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance, December 31, 2020 | 6 | |
OCI before reclassifications | 0 | |
Amounts reclassified from AOCI, HTM related | (2) | |
Other comprehensive loss | (2) | |
Ending Balance, March 31, 2021 | 4 | |
Accumulated Defined Benefit Plans Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance, December 31, 2020 | (85,064) | |
OCI before reclassifications, Defined Benefit Pension and Post Retirement Plans | 0 | |
Amount reclassified into net income: Net actuarial loss | 547 | |
Ending Balance, March 31, 2021 | (84,517) | |
Accumulated other comprehensive income (loss) [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance, December 31, 2020 | 220,186 | |
OCI before reclassifications | (90,556) | |
Amounts reclassified from AOCI | 4,970 | |
Other comprehensive loss | (85,586) | $ (103,867) |
Ending Balance, March 31, 2021 | $ 134,600 |
Comprehensive Income (Reclassif
Comprehensive Income (Reclassification out of AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net realized and unrealized investment gains (losses) | $ 5,119 | $ (44,666) |
Net investment income earned | 69,716 | 55,967 |
Loss and loss expense incurred | 413,401 | 400,324 |
Other insurance expenses | 88,910 | 95,346 |
Income before federal income tax | 135,632 | 15,997 |
Total federal income tax expense | (26,362) | (761) |
Net income | 109,270 | 15,236 |
Reclassification out of AOCI | ||
Net income | 4,970 | 22,036 |
Pension Plan [Member] | Reclassification out of AOCI | ||
Loss and loss expense incurred | 159 | 162 |
Other insurance expenses | 534 | 592 |
Income before federal income tax | 693 | 754 |
Total federal income tax expense | (146) | (158) |
Net income | 547 | 596 |
Held-to-maturity Securities [Member] | Reclassification out of AOCI | ||
Net realized and unrealized investment gains (losses) | 0 | 1 |
Net investment income earned | (2) | 24 |
Income before federal income tax | (2) | 25 |
Total federal income tax expense | 0 | (5) |
Net income | (2) | 20 |
Available for sale securities, excluding credit losses [Member] | Reclassification out of AOCI | ||
Net realized and unrealized investment gains (losses) | 604 | 11,327 |
Income before federal income tax | 604 | 11,327 |
Total federal income tax expense | (127) | (2,379) |
Net income | 477 | 8,948 |
Available for sale securities, including credit losses | Reclassification out of AOCI | ||
Net realized and unrealized investment gains (losses) | 4,997 | 15,787 |
Income before federal income tax | 4,997 | 15,787 |
Total federal income tax expense | (1,049) | (3,315) |
Net income | $ 3,948 | $ 12,472 |
Equity (Details)
Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 02, 2020 | |
Equity [Abstract] | |||
Authorized amount for share repurchase program | $ 100,000 | ||
Shares repurchased | 52,781 | 0 | |
Treasury stock, share repurchase authorization, cost | $ 3,400 | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 96,600 |