EVEREST GROUP, LTD. - Quarter Report: 2021 June (Form 10-Q)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
_X_ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended June 30, 2021
___ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Commission file number 1-15731
EVEREST RE GROUP, LTD.
(Exact name of registrant as specified in its charter)
Bermuda |
| 98-0365432 |
(State or other jurisdiction of incorporation or organization)
|
| (I.R.S. Employer Identification No.) |
141 Front Street
PO Box HM 845
HamiltonHM 19, Bermuda
441-295-0006
(Address, including zip code, and telephone number, including area code,
of registrant’s principal executive office)
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes | X |
| No |
|
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes | X |
| No |
|
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer | X |
| Accelerated filer |
|
Non-accelerated filer |
|
|
Smaller reporting company |
|
|
Emerging growth company |
|
Indicate by check mark if the registrant is an emerging growth company and has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange act.
YES |
|
| NO | X |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
YES |
|
| NO | X |
Securities registered pursuant to Section 12(b) of the Act:
Class |
Trading Symbol | Name of Exchange where Registered | Number of Shares Outstanding At August 1, 2021 |
Common Shares, $0.01 par value |
RE |
New York Stock Exchange |
39,872,807 |
EVEREST RE GROUP, LTD
Table of Contents
Form 10-Q
Page
PART I
FINANCIAL INFORMATION
PART II
OTHER INFORMATION
Item 1. | 54 | |
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Item 1A. | 54 | |
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Item 2. | 54 | |
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Item 3. | 54 | |
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Item 4. | 54 | |
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Item 5. | 55 | |
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Item 6. | 55 | |
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EVEREST RE GROUP, LTD.
CONSOLIDATED BALANCE SHEETS
| June 30, |
| December 31, | ||
(Dollars and share amounts in thousands, except par value per share) | 2021 |
| 2020 | ||
| (unaudited) |
|
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| |
ASSETS: |
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|
Fixed maturities - available for sale, at market value | $ | 21,275,199 |
| $ | 20,040,173 |
(amortized cost: 2021, $20,718,717; 2020, $19,225,067, credit allowances: 2021, $(24,650); 2020, $(1,745)) |
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|
|
|
Equity securities, at fair value |
| 1,485,833 |
|
| 1,472,236 |
Short-term investments (cost: 2021, $629,943; 2020, $1,135,088) |
| 629,943 |
|
| 1,134,950 |
Other invested assets (cost: 2021, $2,558,631; 2020, $2,012,581) |
| 2,558,631 |
|
| 2,012,581 |
Cash |
| 1,106,345 |
|
| 801,651 |
Total investments and cash |
| 27,055,951 |
|
| 25,461,591 |
Accrued investment income |
| 170,907 |
|
| 141,304 |
Premiums receivable |
| 3,199,024 |
|
| 2,680,562 |
Reinsurance receivables |
| 2,032,363 |
|
| 1,994,555 |
Funds held by reinsureds |
| 798,780 |
|
| 716,655 |
Deferred acquisition costs |
| 748,897 |
|
| 622,053 |
Prepaid reinsurance premiums |
| 495,657 |
|
| 412,015 |
Income taxes net recoverable |
|
|
| 17,253 | |
Other assets |
| 868,477 |
|
| 742,369 |
TOTAL ASSETS | $ | 35,370,056 |
| $ | 32,788,357 |
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LIABILITIES: |
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Reserve for losses and loss adjustment expenses | $ | 17,645,762 |
| $ | 16,398,997 |
Future policy benefit reserve |
| 36,497 |
|
| 37,723 |
Unearned premium reserve |
| 4,024,050 |
|
| 3,501,359 |
Funds held under reinsurance treaties |
| 17,520 |
|
| 15,807 |
Other net payable to reinsurers |
| 379,524 |
|
| 294,347 |
Losses in course of payment |
| 198,352 |
|
| 127,971 |
Senior notes due 6/1/2044 |
| 397,254 |
|
| 397,194 |
Senior notes due 10/15/2050 |
| 979,784 |
|
| 979,524 |
Long term notes due 5/1/2067 |
| 223,724 |
|
| 223,674 |
Borrowings from FHLB |
| 310,000 |
|
| 310,000 |
Accrued interest on debt and borrowings |
| 9,641 |
|
| 10,460 |
Unsettled securities payable |
| 124,559 |
|
| 206,693 |
Income taxes net payable |
| 35,089 |
|
| |
Other liabilities |
| 571,511 |
|
| 558,432 |
Total liabilities |
| 24,953,267 |
|
| 23,062,181 |
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Commitments and contingencies (Note 7) |
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SHAREHOLDERS' EQUITY: |
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Preferred shares, par value: $0.01; 50,000 shares authorized; |
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no shares issued and outstanding |
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Common shares, par value: $0.01; 200,000 shares authorized; (2021) 69,817 |
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and (2020) 69,620 outstanding before treasury shares |
| 698 |
|
| 696 |
Additional paid-in capital |
| 2,256,390 |
|
| 2,245,301 |
Accumulated other comprehensive income (loss), net of deferred income |
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tax expense (benefit) of $56,797 at 2021 and $80,451 at 2020 |
| 357,178 |
|
| 534,899 |
Treasury shares, at cost; 29,802 shares (2021) and 29,636 shares (2020) |
| (3,662,499) |
|
| (3,622,172) |
Retained earnings |
| 11,465,022 |
|
| 10,567,452 |
Total shareholders' equity |
| 10,416,789 |
|
| 9,726,176 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 35,370,056 |
| $ | 32,788,357 |
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The accompanying notes are an integral part of the consolidated financial statements. |
1
EVEREST RE GROUP, LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS)
| Three Months Ended |
| Six Months Ended | ||||||||
| June 30, |
| June 30, | ||||||||
(Dollars in thousands, except per share amounts) | 2021 |
| 2020 |
| 2021 |
| 2020 | ||||
| (unaudited) |
| (unaudited) | ||||||||
REVENUES: |
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Premiums earned | $ | 2,558,372 |
| $ | 2,042,405 |
| $ | 4,946,237 |
| $ | 4,079,219 |
Net investment income |
| 407,095 |
|
| 38,083 |
|
| 667,508 |
|
| 185,883 |
Net realized capital gains (losses): |
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Credit allowances on fixed maturity securities |
| (15,927) |
|
| (4,063) |
|
| (22,904) |
|
| (25,837) |
Other net realized capital gains (losses) |
| 120,036 |
|
| 188,711 |
|
| 165,915 |
|
| (103) |
Total net realized capital gains (losses) |
| 104,109 |
|
| 184,648 |
|
| 143,011 |
|
| (25,940) |
Other income (expense) |
| 7,114 |
|
| (20,621) |
|
| 63,707 |
|
| (12,631) |
Total revenues |
| 3,076,690 |
|
| 2,244,515 |
|
| 5,820,463 |
|
| 4,226,531 |
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CLAIMS AND EXPENSES: |
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Incurred losses and loss adjustment expenses |
| 1,586,141 |
|
| 1,407,016 |
|
| 3,297,560 |
|
| 2,837,856 |
Commission, brokerage, taxes and fees |
| 557,749 |
|
| 466,316 |
|
| 1,046,760 |
|
| 914,838 |
Other underwriting expenses |
| 140,844 |
|
| 118,130 |
|
| 283,075 |
|
| 246,990 |
Corporate expenses |
| 16,168 |
|
| 8,733 |
|
| 28,546 |
|
| 18,566 |
Interest, fees and bond issue cost amortization expense |
| 15,607 |
|
| 7,253 |
|
| 31,246 |
|
| 14,836 |
Total claims and expenses |
| 2,316,509 |
|
| 2,007,448 |
|
| 4,687,187 |
|
| 4,033,086 |
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INCOME (LOSS) BEFORE TAXES |
| 760,181 |
|
| 237,067 |
|
| 1,133,276 |
|
| 193,445 |
Income tax expense (benefit) |
| 80,199 |
|
| 46,187 |
|
| 111,432 |
|
| (14,047) |
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NET INCOME (LOSS) | $ | 679,982 |
| $ | 190,880 |
| $ | 1,021,844 |
| $ | 207,492 |
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Other comprehensive income (loss), net of tax: |
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Unrealized appreciation (depreciation) ("URA(D)") on securities arising during the period |
| 84,171 |
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| 551,753 |
|
| (204,444) |
|
| 272,354 |
Reclassification adjustment for realized losses (gains) included in net income (loss) |
| 1,590 |
|
| (7,257) |
|
| (2,076) |
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| 24,142 |
Total URA(D) on securities arising during the period |
| 85,761 |
|
| 544,496 |
|
| (206,520) |
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| 296,496 |
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Foreign currency translation adjustments |
| 34,295 |
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| 20,586 |
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| 24,713 |
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| (30,238) |
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Reclassification adjustment for amortization of net (gain) loss included in net income (loss) |
| 2,043 |
|
| 1,806 |
|
| 4,086 |
|
| 2,726 |
Total benefit plan net gain (loss) for the period |
| 2,043 |
|
| 1,806 |
|
| 4,086 |
|
| 2,726 |
Total other comprehensive income (loss), net of tax |
| 122,099 |
|
| 566,888 |
|
| (177,721) |
|
| 268,984 |
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COMPREHENSIVE INCOME (LOSS) | $ | 802,081 |
| $ | 757,768 |
| $ | 844,123 |
| $ | 476,476 |
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EARNINGS PER COMMON SHARE: |
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Basic | $ | 16.97 |
| $ | 4.78 |
| $ | 25.50 |
| $ | 5.14 |
Diluted |
| 16.95 |
|
| 4.77 |
|
| 25.47 |
|
| 5.13 |
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The accompanying notes are an integral part of the consolidated financial statements. |
2
EVEREST RE GROUP, LTD.
CONSOLIDATED STATEMENTS OF
CHANGES IN SHAREHOLDERS’ EQUITY
(Dollars in thousands, except share and dividends per share amounts) | 2021 |
| 2020 | ||
| (unaudited) | ||||
COMMON SHARES (shares outstanding): |
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Balance, January 1 |
| 39,983,481 |
|
| 40,798,963 |
Issued during the period, net |
| 196,481 |
|
| 159,423 |
Treasury shares acquired |
| (97,462) |
|
| (970,892) |
Balance, March 31 |
| 40,082,500 |
|
| 39,987,494 |
Issued during the period, net |
| 940 |
|
| (15,849) |
Treasury shares acquired |
| (68,100) |
|
| - |
Balance, June 30 |
| 40,015,340 |
|
| 39,971,645 |
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COMMON SHARES (par value): |
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Balance, January 1 | $ | 696 |
| $ | 694 |
Issued during the period, net |
| 2 |
|
| 2 |
Balance, March 31 |
| 698 |
|
| 696 |
Issued during the period, net |
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Balance, June 30 |
| 698 |
|
| 696 |
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ADDITIONAL PAID-IN CAPITAL: |
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Balance, January 1 |
| 2,245,301 |
|
| 2,219,660 |
Share-based compensation plans |
| 436 |
|
| (3,181) |
Balance, March 31 |
| 2,245,737 |
|
| 2,216,479 |
Share-based compensation plans |
| 10,653 |
|
| 9,514 |
Balance, June 30 |
| 2,256,390 |
|
| 2,225,993 |
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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS), |
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NET OF DEFERRED INCOME TAXES: |
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Balance, January 1 |
| 534,899 |
|
| 28,152 |
Net increase (decrease) during the period |
| (299,820) |
|
| (297,903) |
Balance, March 31 |
| 235,079 |
|
| (269,751) |
Net increase (decrease) during the period |
| 122,099 |
|
| 566,888 |
Balance, June 30 |
| 357,178 |
|
| 297,137 |
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RETAINED EARNINGS: |
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Balance, January 1 |
| 10,567,452 |
|
| 10,306,571 |
Change to beginning balance due to adoption of Accounting Standards Update 2016-13 |
|
|
| (4,214) | |
Net income (loss) |
| 341,862 |
|
| 16,612 |
Dividends declared ($1.55 per share 2021 and $1.55 per share 2020) |
| (62,228) |
|
| (63,277) |
Balance, March 31 |
| 10,847,086 |
|
| 10,255,692 |
Net income (loss) |
| 679,982 |
|
| 190,880 |
Dividends declared ($1.55 per share 2021 and $1.55 per share 2020) |
| (62,046) |
|
| (61,927) |
Balance, June 30 |
| 11,465,022 |
|
| 10,384,645 |
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TREASURY SHARES AT COST: |
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Balance, January 1 |
| (3,622,172) |
|
| (3,422,152) |
Purchase of treasury shares |
| (23,545) |
|
| (200,020) |
Balance, March 31 |
| (3,645,717) |
|
| (3,622,172) |
Purchase of treasury shares |
| (16,782) |
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| |
Balance, June 30 |
| (3,662,499) |
|
| (3,622,172) |
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TOTAL SHAREHOLDERS' EQUITY, June 30 | $ | 10,416,789 |
| $ | 9,286,299 |
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The accompanying notes are an integral part of the consolidated financial statements. | |||||
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3
EVEREST RE GROUP, LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
| Six Months Ended | ||||
| June 30, | ||||
(Dollars in thousands) | 2021 |
| 2020 | ||
| (unaudited) | ||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
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Net income (loss) | $ | 1,021,844 |
| $ | 207,492 |
Adjustments to reconcile net income to net cash provided by operating activities: |
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Decrease (increase) in premiums receivable |
| (499,647) |
|
| (252,609) |
Decrease (increase) in funds held by reinsureds, net |
| (79,485) |
|
| (23,498) |
Decrease (increase) in reinsurance receivables |
| 15,836 |
|
| (147,515) |
Decrease (increase) in income taxes |
| 76,452 |
|
| (25,000) |
Decrease (increase) in prepaid reinsurance premiums |
| (71,566) |
|
| (29,699) |
Increase (decrease) in reserve for losses and loss adjustment expenses |
| 1,144,620 |
|
| 800,816 |
Increase (decrease) in future policy benefit reserve |
| (1,226) |
|
| (1,933) |
Increase (decrease) in unearned premiums |
| 500,077 |
|
| 159,744 |
Increase (decrease) in other net payable to reinsurers |
| 72,850 |
|
| 89,499 |
Increase (decrease) in losses in course of payment |
| 70,653 |
|
| 147,427 |
Change in equity adjustments in limited partnerships |
| (377,120) |
|
| 84,066 |
Distribution of limited partnership income |
| 49,053 |
|
| 40,447 |
Change in other assets and liabilities, net |
| (211,735) |
|
| (10,313) |
Non-cash compensation expense |
| 22,439 |
|
| 19,175 |
Amortization of bond premium (accrual of bond discount) |
| 37,928 |
|
| 20,547 |
Net realized capital (gains) losses |
| (143,011) |
|
| 25,940 |
Net cash provided by (used in) operating activities |
| 1,627,962 |
|
| 1,104,586 |
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CASH FLOWS FROM INVESTING ACTIVITIES: |
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Proceeds from fixed maturities matured/called - available for sale, at market value |
| 1,897,536 |
|
| 1,261,650 |
Proceeds from fixed maturities sold - available for sale, at market value |
| 599,737 |
|
| 990,273 |
Proceeds from equity securities sold, at fair value |
| 474,663 |
|
| 213,185 |
Distributions from other invested assets |
| 112,398 |
|
| 164,975 |
Cost of fixed maturities acquired - available for sale, at market value |
| (3,949,973) |
|
| (2,301,701) |
Cost of equity securities acquired, at fair value |
| (360,016) |
|
| (224,086) |
Cost of other invested assets acquired |
| (309,691) |
|
| (343,332) |
Net change in short-term investments |
| 506,285 |
|
| (439,457) |
Net change in unsettled securities transactions |
| (103,527) |
|
| 49,504 |
Net cash provided by (used in) investing activities |
| (1,132,588) |
|
| (628,989) |
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CASH FLOWS FROM FINANCING ACTIVITIES: |
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Common shares issued during the period for share-based compensation, net of expense |
| (11,349) |
|
| (12,841) |
Purchase of treasury shares |
| (40,328) |
|
| (200,019) |
Dividends paid to shareholders |
| (124,274) |
|
| (125,205) |
Cost of debt repurchase |
|
|
| (10,647) | |
Cost of shares withheld on settlements of share-based compensation awards |
| (13,713) |
|
| (14,141) |
Net cash provided by (used in) financing activities |
| (189,664) |
|
| (362,853) |
|
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EFFECT OF EXCHANGE RATE CHANGES ON CASH |
| (1,016) |
|
| 1,699 |
|
|
|
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Net increase (decrease) in cash |
| 304,694 |
|
| 114,443 |
Cash, beginning of period |
| 801,651 |
|
| 808,036 |
Cash, end of period | $ | 1,106,345 |
| $ | 922,479 |
|
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SUPPLEMENTAL CASH FLOW INFORMATION: |
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Income taxes paid (recovered) | $ | 34,780 |
| $ | 10,895 |
Interest paid |
| 31,695 |
|
| 14,992 |
|
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The accompanying notes are an integral part of the consolidated financial statements. |
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4
NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
For the Three and Six Months Ended June 30, 2021 and 2020
1. GENERAL
Everest Re Group, Ltd. (“Group”), a Bermuda company, through its subsidiaries, principally provides reinsurance and insurance in the U.S., Bermuda and international markets. As used in this document, “Company” means Group and its subsidiaries.
2. BASIS OF PRESENTATION
The unaudited consolidated financial statements of the Company as of June 30, 2021 and December 31, 2020 and for the three and six months ended June 30, 2021 and 2020 include all adjustments, consisting of normal recurring accruals, which, in the opinion of management, are necessary for a fair statement of the results on an interim basis. Certain financial information, which is normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), has been omitted since it is not required for interim reporting purposes. The December 31, 2020 consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP. The results for the three and six months ended June 30, 2021 and 2020 are not necessarily indicative of the results for a full year. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the years ended December 31, 2020, 2019 and 2018, included in the Company’s most recent Form 10-K filing.
The Company consolidates the results of operations and financial position of all voting interest entities ("VOE") in which the Company has a controlling financial interest and all variable interest entities ("VIE") in which the Company is considered to be the primary beneficiary. The consolidation assessment, including the determination as to whether an entity qualifies as a VIE or VOE, depends on the facts and circumstances surrounding each entity.
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities (and disclosure of contingent assets and liabilities) at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Ultimate actual results could differ, possibly materially, from those estimates. This is particularly true given the fluid and continuing nature of the COVID-19 Pandemic. This is an ongoing event and so is the Company’s evaluation and analysis. While the Company’s analysis considers all aspects of its operations, it does not take into account legal, regulatory or legislative intervention that could retroactively mandate or expand coverage provisions. Given the uncertainties in the current public health and economic environment, there could be an adverse impact on results for the Property & Casualty industry and the Company for the remainder of the year. The impact is dependent on the shape and length of the economic recovery.
All intercompany accounts and transactions have been eliminated.
Certain reclassifications and format changes have been made to prior years’ amounts to conform to the 2021 presentation.
5
Application of Recently Issued Accounting Standard Changes.
Accounting for Income Taxes. In December 2019, The Financial Accounting Standards Board (“FASB”) issued ASU 2019-12, which provides simplification of existing guidance for income taxes, including the removal of certain exceptions related to recognition of deferred tax liabilities on foreign subsidiaries. The guidance is effective for annual reporting periods beginning after December 15, 2020 and interim periods within that annual reporting period. The Company adopted the guidance as of January 1, 2021. The adoption of ASU 2019-12 did not have a material impact on the Company’s financial statements.
Accounting for Long Duration Contracts. In August 2018, FASB issued ASU 2018-12, which discusses changes to the recognition, measurement and presentation of long duration contracts. The main provisions of this guidance address the following: 1) In determining liability for future policy benefits, companies must review cash flow assumptions at least annually and the discount rate assumption at each reporting period date 2) Amortization of deferred acquisition costs has been simplified to be in constant level proportion to either premiums, gross profits or gross margins 3) Disaggregated roll forwards of beginning and ending liabilities for future policy benefits are required. The guidance was originally effective for annual reporting periods beginning after December 15, 2020 and interim periods within that annual reporting period. However, FASB issued ASU 2019-09 in November 2019 and then ASU 2020-11 in November 2021, which ultimately defers the effective date of ASU 2018-12 until annual reporting periods beginning after December 15, 2022. The Company is currently evaluating the impact of the adoption of ASU 2018-12 on its financial statements.
Any issued guidance and pronouncements, other than those directly referenced above, are deemed by the Company to be either not applicable or immaterial to its financial statements.
3. INVESTMENTS
The following tables show amortized cost, allowance for credit losses, gross unrealized appreciation, gross unrealized depreciation and market value of available for sale, fixed maturity securities as of the dates indicated:
|
| At June 30, 2021 | |||||||||||||
|
| Amortized |
| Allowance for |
| Unrealized |
| Unrealized |
| Market | |||||
(Dollars in thousands) | Cost |
| Credit Losses |
| Appreciation |
| Depreciation |
| Value | ||||||
Fixed maturity securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| U.S. Treasury securities and obligations of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. government agencies and corporations | $ | 1,259,149 |
| $ |
| $ | 29,365 |
| $ | (12,756) |
| $ | 1,275,758 | |
| Obligations of U.S. states and political subdivisions |
| 574,398 |
|
|
|
| 35,933 |
|
| (986) |
|
| 609,345 | |
| Corporate securities |
| 7,155,688 |
|
| (18,475) |
|
| 285,509 |
|
| (63,018) |
|
| 7,359,704 |
| Asset-backed securities |
| 3,141,971 |
|
| (4,915) |
|
| 35,316 |
|
| (2,955) |
|
| 3,169,417 |
| Mortgage-backed securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Commercial |
| 1,026,809 |
|
|
|
| 55,125 |
|
| (3,535) |
|
| 1,078,399 | |
| Agency residential |
| 2,255,348 |
|
|
|
| 47,124 |
|
| (12,205) |
|
| 2,290,267 | |
| Non-agency residential |
| 8,220 |
|
|
|
| 6 |
|
| (15) |
|
| 8,211 | |
| Foreign government securities |
| 1,494,989 |
|
|
|
| 80,268 |
|
| (21,296) |
|
| 1,553,961 | |
| Foreign corporate securities |
| 3,802,145 |
|
| (1,260) |
|
| 167,015 |
|
| (37,763) |
|
| 3,930,137 |
Total fixed maturity securities | $ | 20,718,717 |
| $ | (24,650) |
| $ | 735,661 |
| $ | (154,529) |
| $ | 21,275,199 |
6
|
| At December 31, 2020 | |||||||||||||
|
| Amortized |
| Allowance for |
| Unrealized |
| Unrealized |
| Market | |||||
(Dollars in thousands) | Cost |
| Credit Losses |
| Appreciation |
| Depreciation |
| Value | ||||||
Fixed maturity securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| U.S. Treasury securities and obligations of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. government agencies and corporations | $ | 1,325,156 |
| $ |
| $ | 49,084 |
| $ | (7,134) |
| $ | 1,367,106 | |
| Obligations of U.S. states and political subdivisions |
| 543,895 |
|
|
|
| 34,654 |
|
| (1,254) |
|
| 577,295 | |
| Corporate securities |
| 6,824,800 |
|
| (1,220) |
|
| 380,677 |
|
| (55,231) |
|
| 7,149,026 |
| Asset-backed securities |
| 2,540,809 |
|
|
|
| 30,691 |
|
| (5,698) |
|
| 2,565,802 | |
| Mortgage-backed securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Commercial |
| 915,923 |
|
|
|
| 75,275 |
|
| (895) |
|
| 990,303 | |
| Agency residential |
| 2,206,139 |
|
|
|
| 64,663 |
|
| (3,063) |
|
| 2,267,739 | |
| Non-agency residential |
| 5,187 |
|
|
|
| 9 |
|
| (2) |
|
| 5,194 | |
| Foreign government securities |
| 1,565,260 |
|
| (22) |
|
| 102,587 |
|
| (22,450) |
|
| 1,645,375 |
| Foreign corporate securities |
| 3,297,898 |
|
| (503) |
|
| 204,023 |
|
| (29,085) |
|
| 3,472,333 |
Total fixed maturity securities | $ | 19,225,067 |
| $ | (1,745) |
| $ | 941,663 |
| $ | (124,812) |
| $ | 20,040,173 |
The amortized cost and market value of fixed maturity securities are shown in the following table by contractual maturity. Mortgage-backed securities are generally more likely to be prepaid than other fixed maturity securities. As the stated maturity of such securities may not be indicative of actual maturities, the totals for mortgage-backed and asset-backed securities are shown separately.
| At June 30, 2021 |
| At December 31, 2020 | ||||||||
| Amortized |
| Market |
| Amortized |
| Market | ||||
(Dollars in thousands) | Cost |
| Value |
| Cost |
| Value | ||||
Fixed maturity securities – available for sale: |
|
|
|
|
|
|
|
|
|
|
|
Due in one year or less | $ | 1,628,113 |
| $ | 1,638,768 |
| $ | 1,365,793 |
| $ | 1,374,674 |
Due after one year through five years |
| 6,432,847 |
|
| 6,618,429 |
|
| 6,529,189 |
|
| 6,774,785 |
Due after five years through ten years |
| 4,890,259 |
|
| 5,091,435 |
|
| 4,414,211 |
|
| 4,751,903 |
Due after ten years |
| 1,335,150 |
|
| 1,380,273 |
|
| 1,247,816 |
|
| 1,309,773 |
Asset-backed securities |
| 3,141,971 |
|
| 3,169,417 |
|
| 2,540,809 |
|
| 2,565,802 |
Mortgage-backed securities: |
|
|
|
|
|
|
|
|
|
|
|
Commercial |
| 1,026,809 |
|
| 1,078,399 |
|
| 915,923 |
|
| 990,303 |
Agency residential |
| 2,255,348 |
|
| 2,290,267 |
|
| 2,206,139 |
|
| 2,267,739 |
Non-agency residential |
| 8,220 |
|
| 8,211 |
|
| 5,187 |
|
| 5,194 |
Total fixed maturity securities | $ | 20,718,717 |
| $ | 21,275,199 |
| $ | 19,225,067 |
| $ | 20,040,173 |
The changes in net unrealized appreciation (depreciation) for the Company’s investments are derived from the following sources for the periods indicated:
| Three Months Ended |
| Six Months Ended | ||||||||
| June 30, |
| June 30, | ||||||||
(Dollars in thousands) | 2021 |
| 2020 |
| 2021 |
| 2020 | ||||
Increase (decrease) during the period between the market value and cost |
|
|
|
|
|
|
|
|
|
|
|
of investments carried at market value, and deferred taxes thereon: |
|
|
|
|
|
|
|
|
|
|
|
Fixed maturity securities | $ | 97,127 |
| $ | 614,077 |
| $ | (235,581) |
| $ | 337,053 |
Change in unrealized appreciation (depreciation), pre-tax |
| 97,127 |
|
| 614,077 |
|
| (235,581) |
|
| 337,053 |
Deferred tax benefit (expense) |
| (11,366) |
|
| (69,581) |
|
| 29,061 |
|
| (40,557) |
Change in unrealized appreciation (depreciation), |
|
|
|
|
|
|
|
|
|
|
|
net of deferred taxes, included in shareholders’ equity | $ | 85,761 |
| $ | 544,496 |
| $ | (206,520) |
| $ | 296,496 |
The Company reviews all of its fixed maturity, available for sale securities whose fair value has fallen below their amortized cost at the time of review. The Company then assesses whether the decline in value is due to non-credit related or credit related factors. In making its assessment, the Company evaluates the current market and interest rate environment as well as specific issuer information. Generally, a change in a security’s value caused by a change in the market, interest rate or foreign exchange environment does not constitute a credit impairment, but rather a non-credit related decline in market value. Non-credit related declines in market value are recorded as unrealized losses in accumulated other comprehensive income (loss). If the Company intends to
7
sell the security or is more likely than not to sell the security, the Company records the entire fair value adjustment in net realized capital gains (losses) in the Company’s consolidated statements of operations and comprehensive income (loss). If the Company determines that the decline is credit related and the Company does not have the intent to sell the security; and it is more likely than not that the Company will not have to sell the security before recovery of its cost basis, the Company establishes a credit allowance equal to the estimated credit loss and is recorded in net realized capital gains (losses) in the Company’s consolidated statements of operations and comprehensive income (loss). The amount of the allowance for a given security will generally be the difference between a discounted cash flow model and the Company’s carrying value. The fair value adjustment that is non-credit related is recorded as a component of other comprehensive income (loss), net of tax, and is included in accumulated other comprehensive income (loss) in the Company’s consolidated balance sheets. The Company will adjust the credit allowance account for future changes in credit loss estimates for a security and record this adjustment through net realized capital gains (losses) in the Company’s consolidated statements of operations and comprehensive income (loss).
The Company does not create an allowance for uncollectible interest. If interest is not received when due, the interest receivable is immediately reversed and no additional interest is accrued. If future interest is received that has not been accrued, it is recorded as income at that time.
The Company’s assessments are based on the issuers’ current and expected future financial position, timeliness with respect to interest and/or principal payments, speed of repayments and any applicable credit enhancements or breakeven constant default rates on mortgage-backed and asset-backed securities, as well as relevant information provided by rating agencies, investment advisors and analysts.
Retrospective adjustments are employed to recalculate the values of asset-backed securities. All of the Company’s asset-backed and mortgage-backed securities have a pass-through structure. Each acquisition lot is reviewed to recalculate the effective yield. The recalculated effective yield is used to derive a book value as if the new yield were applied at the time of acquisition. Outstanding principal factors from the time of acquisition to the adjustment date are used to calculate the prepayment history for all applicable securities. Conditional prepayment rates, computed with life to date factor histories and weighted average maturities, are used in the calculation of projected prepayments for pass-through security types.
The tables below display the aggregate market value and gross unrealized depreciation of fixed maturity securities, by security type and contractual maturity, in each case subdivided according to length of time that individual securities had been in a continuous unrealized loss position for the periods indicated:
|
| Duration of Unrealized Loss at June 30, 2021 By Security Type | |||||||||||||||
| Less than 12 months |
| Greater than 12 months |
| Total | ||||||||||||
|
|
|
| Gross |
|
|
|
| Gross |
|
|
|
| Gross | |||
|
|
|
| Unrealized |
|
|
|
| Unrealized |
|
|
|
| Unrealized | |||
(Dollars in thousands) | Market Value |
| Depreciation |
| Market Value |
| Depreciation |
| Market Value |
| Depreciation | ||||||
Fixed maturity securities - available for sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury securities and obligations of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government agencies and corporations | $ | 341,846 |
| $ | (12,494) |
| $ | 2,620 |
| $ | (262) |
| $ | 344,466 |
| $ | (12,756) |
Obligations of U.S. states and political subdivisions |
| 23,662 |
|
| (986) |
|
|
|
|
|
| 23,662 |
|
| (986) | ||
Corporate securities |
| 1,598,159 |
|
| (61,141) |
|
| 37,936 |
|
| (1,877) |
|
| 1,636,095 |
|
| (63,018) |
Asset-backed securities |
| 710,904 |
|
| (2,955) |
|
|
|
|
|
| 710,904 |
|
| (2,955) | ||
Mortgage-backed securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
| 134,941 |
|
| (3,535) |
|
|
|
|
|
| 134,941 |
|
| (3,535) | ||
Agency residential |
| 1,020,232 |
|
| (11,327) |
|
| 43,983 |
|
| (878) |
|
| 1,064,215 |
|
| (12,205) |
Non-agency residential |
| 1,309 |
|
| (15) |
|
|
|
|
|
| 1,309 |
|
| (15) | ||
Foreign government securities |
| 304,722 |
|
| (20,686) |
|
| 3,107 |
|
| (610) |
|
| 307,829 |
|
| (21,296) |
Foreign corporate securities |
| 861,693 |
|
| (34,534) |
|
| 30,035 |
|
| (3,229) |
|
| 891,728 |
|
| (37,763) |
Total fixed maturity securities | $ | 4,997,468 |
| $ | (147,673) |
| $ | 117,681 |
| $ | (6,856) |
| $ | 5,115,149 |
| $ | (154,529) |
8
|
| Duration of Unrealized Loss at June 30, 2021 By Maturity | |||||||||||||||
| Less than 12 months |
| Greater than 12 months |
| Total | ||||||||||||
|
|
|
| Gross |
|
|
|
| Gross |
|
|
|
| Gross | |||
|
|
|
| Unrealized |
|
|
|
| Unrealized |
|
|
|
| Unrealized | |||
(Dollars in thousands) | Market Value |
| Depreciation |
| Market Value |
| Depreciation |
| Market Value |
| Depreciation | ||||||
Fixed maturity securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due in one year or less | $ | 260,687 |
| $ | (15,951) |
| $ | 5,846 |
| $ | (471) |
| $ | 266,533 |
| $ | (16,422) |
Due in one year through five years |
| 1,385,520 |
|
| (51,928) |
|
| 48,824 |
|
| (3,048) |
|
| 1,434,344 |
|
| (54,976) |
Due in five years through ten years |
| 1,153,553 |
|
| (48,557) |
|
| 19,028 |
|
| (2,459) |
|
| 1,172,581 |
|
| (51,016) |
Due after ten years |
| 330,322 |
|
| (13,405) |
|
|
|
|
|
| 330,322 |
|
| (13,405) | ||
Asset-backed securities |
| 710,904 |
|
| (2,955) |
|
|
|
|
|
| 710,904 |
|
| (2,955) | ||
Mortgage-backed securities |
| 1,156,482 |
|
| (14,877) |
|
| 43,983 |
|
| (878) |
|
| 1,200,465 |
|
| (15,755) |
Total fixed maturity securities | $ | 4,997,468 |
| $ | (147,673) |
| $ | 117,681 |
| $ | (6,856) |
| $ | 5,115,149 |
| $ | (154,529) |
The aggregate market value and gross unrealized losses related to investments in an unrealized loss position at June 30, 2021 were $5,115,149 thousand and $154,529 thousand, respectively. The market value of securities for the single issuer (the United States government) whose securities comprised the largest unrealized loss position at June 30, 2021, did not exceed 1.6% of the overall market value of the Company’s fixed maturity securities. The market value of the securities for the issuer with the second largest unrealized loss position at June 30, 2021, comprised less than 0.3% of the Company’s fixed maturity securities. In addition, as indicated on the above table, there was no significant concentration of unrealized losses in any one market sector. The $147,673 thousand of unrealized losses related to fixed maturity securities that have been in an unrealized loss position for less than one year were generally comprised of domestic and foreign corporate securities, U.S. Treasury and government securities, foreign government securities and agency residential mortgage-backed securities. Of these unrealized losses, $133,996 thousand were related to securities that were rated investment grade by at least one nationally recognized statistical rating agency. The $6,856 thousand of unrealized losses related to fixed maturity securities in an unrealized loss position for more than one year related primarily to foreign and domestic corporate securities. Of these unrealized losses, $6,678 thousand were related to securities that were rated investment grade by at least one nationally recognized statistical rating agency. There was no gross unrealized depreciation for mortgage-backed securities related to sub-prime and alt-A loans. In all instances, there were no projected cash flow shortfalls to recover the full book value of the investments and the related interest obligations. The mortgage-backed securities still have excess credit coverage and are current on interest and principal payments.
The Company, given the size of its investment portfolio and capital position, does not have the intent to sell these securities; and it is more likely than not that the Company will not have to sell the security before recovery of its cost basis. In addition, all securities currently in an unrealized loss position are current with respect to principal and interest payments.
9
The tables below display the aggregate market value and gross unrealized depreciation of fixed maturity securities, by security type and contractual maturity, in each case subdivided according to length of time that individual securities had been in a continuous unrealized loss position for the periods indicated:
|
| Duration of Unrealized Loss at December 31, 2020 By Security Type | |||||||||||||||
| Less than 12 months |
| Greater than 12 months |
| Total | ||||||||||||
|
|
|
| Gross |
|
|
|
| Gross |
|
|
|
| Gross | |||
|
|
|
| Unrealized |
|
|
|
| Unrealized |
|
|
|
| Unrealized | |||
(Dollars in thousands) | Market Value |
| Depreciation |
| Market Value |
| Depreciation |
| Market Value |
| Depreciation | ||||||
Fixed maturity securities - available for sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury securities and obligations of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government agencies and corporations | $ | 135,190 |
| $ | (7,134) |
| $ |
| $ |
| $ | 135,190 |
| $ | (7,134) | ||
Obligations of U.S. states and political subdivisions |
| 19,524 |
|
| (999) |
|
| 4,059 |
|
| (255) |
|
| 23,583 |
|
| (1,254) |
Corporate securities |
| 669,755 |
|
| (26,159) |
|
| 247,962 |
|
| (29,072) |
|
| 917,717 |
|
| (55,231) |
Asset-backed securities |
| 235,566 |
|
| (4,768) |
|
| 85,595 |
|
| (930) |
|
| 321,161 |
|
| (5,698) |
Mortgage-backed securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
| 53,511 |
|
| (578) |
|
| 6,592 |
|
| (317) |
|
| 60,103 |
|
| (895) |
Agency residential |
| 434,447 |
|
| (2,016) |
|
| 50,353 |
|
| (1,047) |
|
| 484,800 |
|
| (3,063) |
Non-agency residential |
| 185 |
|
| (2) |
|
|
|
|
|
| 185 |
|
| (2) | ||
Foreign government securities |
| 114,755 |
|
| (8,813) |
|
| 150,812 |
|
| (13,637) |
|
| 265,567 |
|
| (22,450) |
Foreign corporate securities |
| 354,548 |
|
| (17,489) |
|
| 115,595 |
|
| (11,596) |
|
| 470,143 |
|
| (29,085) |
Total fixed maturity securities | $ | 2,017,481 |
| $ | (67,958) |
| $ | 660,968 |
| $ | (56,854) |
| $ | 2,678,449 |
| $ | (124,812) |
|
| Duration of Unrealized Loss at December 31, 2020 By Maturity | |||||||||||||||
| Less than 12 months |
| Greater than 12 months |
| Total | ||||||||||||
|
|
|
| Gross |
|
|
|
| Gross |
|
|
|
| Gross | |||
|
|
|
| Unrealized |
|
|
|
| Unrealized |
|
|
|
| Unrealized | |||
(Dollars in thousands) | Market Value |
| Depreciation |
| Market Value |
| Depreciation |
| Market Value |
| Depreciation | ||||||
Fixed maturity securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due in one year or less | $ | 96,144 |
| $ | (4,942) |
| $ | 112,419 |
| $ | (12,071) |
| $ | 208,563 |
| $ | (17,013) |
Due in one year through five years |
| 653,816 |
|
| (32,469) |
|
| 283,866 |
|
| (21,319) |
|
| 937,682 |
|
| (53,788) |
Due in five years through ten years |
| 422,517 |
|
| (19,392) |
|
| 49,749 |
|
| (2,034) |
|
| 472,266 |
|
| (21,426) |
Due after ten years |
| 121,295 |
|
| (3,791) |
|
| 72,394 |
|
| (19,136) |
|
| 193,689 |
|
| (22,927) |
Asset-backed securities |
| 235,566 |
|
| (4,768) |
|
| 85,595 |
|
| (930) |
|
| 321,161 |
|
| (5,698) |
Mortgage-backed securities |
| 488,143 |
|
| (2,596) |
|
| 56,945 |
|
| (1,364) |
|
| 545,088 |
|
| (3,960) |
Total fixed maturity securities | $ | 2,017,481 |
| $ | (67,958) |
| $ | 660,968 |
| $ | (56,854) |
| $ | 2,678,449 |
| $ | (124,812) |
The aggregate market value and gross unrealized losses related to investments in an unrealized loss position at December 31, 2020 were $2,678,449 thousand and $124,812 thousand, respectively. The market value of securities for the single issuer whose securities comprised the largest unrealized loss position at December 31, 2020, did not exceed 0.7.% of the overall market value of the Company’s fixed maturity securities. The market value of the securities for the issuer with the second largest unrealized loss comprised less than 0.1% of the Company’s fixed maturity securities. In addition, as indicated on the above table, there was no significant concentration of unrealized losses in any one market sector. The $67,958 thousand of unrealized losses related to fixed maturity securities that have been in an unrealized loss position for less than one year were generally comprised of domestic and foreign corporate securities and foreign government securities. Of these unrealized losses, $63,424 thousand were related to securities that were rated investment grade by at least one nationally recognized statistical rating agency. The $56,854 thousand of unrealized losses related to fixed maturity securities in an unrealized loss position for more than one year related primarily to domestic and foreign corporate securities, foreign government securities and agency residential mortgage-backed securities. Of these unrealized losses, $33,533 thousand were related to securities that were rated investment grade by at least one nationally recognized statistical rating agency. There was no gross unrealized depreciation for mortgage-backed securities related to sub-prime and alt-A loans. In all instances, there were no projected cash flow shortfalls to recover the full book value of the investments and the related interest obligations. The mortgage-backed securities still have excess credit coverage and are current on interest and principal payments.
10
The components of net investment income are presented in the table below for the periods indicated:
| Three Months Ended |
| Six Months Ended | ||||||||
| June 30, |
| June 30, | ||||||||
(Dollars in thousands) | 2021 |
| 2020 |
| 2021 |
| 2020 | ||||
Fixed maturities | $ | 148,262 |
| $ | 133,918 |
| $ | 289,178 |
| $ | 271,842 |
Equity securities |
| 3,493 |
|
| 3,662 |
|
| 8,331 |
|
| 7,183 |
Short-term investments and cash |
| 773 |
|
| 1,687 |
|
| 953 |
|
| 3,862 |
Other invested assets: |
|
|
|
|
|
|
|
|
|
|
|
Limited partnerships |
| 239,966 |
|
| (88,254) |
|
| 354,299 |
|
| (66,686) |
Other |
| 25,855 |
|
| (2,962) |
|
| 31,874 |
|
| (16,033) |
Gross investment income before adjustments |
| 418,349 |
|
| 48,051 |
|
| 684,635 |
|
| 200,168 |
Funds held interest income (expense) |
| 3,287 |
|
| 2,021 |
|
| 11,253 |
|
| 10,237 |
Future policy benefit reserve income (expense) |
| (170) |
|
| (303) |
|
| (461) |
|
| (514) |
Gross investment income |
| 421,466 |
|
| 49,769 |
|
| 695,427 |
|
| 209,891 |
Investment expenses |
| (14,371) |
|
| (11,686) |
|
| (27,919) |
|
| (24,008) |
Net investment income | $ | 407,095 |
| $ | 38,083 |
| $ | 667,508 |
| $ | 185,883 |
The Company records results from limited partnership investments on the equity method of accounting with changes in value reported through net investment income. The net investment income from limited partnerships is dependent upon the Company’s share of the net asset values of interests underlying each limited partnership. Due to the timing of receiving financial information from these partnerships, the results are generally reported on a one month or quarter lag. If the Company determines there has been a significant decline in value of a limited partnership during this lag period, a loss will be recorded in the period in which the Company identifies the decline.
The Company had contractual commitments to invest up to an additional $2,866,741 thousand in limited partnerships and private placement loan securities at June 30, 2021. These commitments will be funded when called in accordance with the partnership and loan agreements, which have investment periods that expire, unless extended, through .
The Company participates in a private placement liquidity sweep facility (“the facility”). The primary purpose of the facility is to enhance the Company’s return on its short-term investments and cash positions. The facility invests in high quality, short-duration securities and permits daily liquidity. The Company consolidates its participation in the facility. As of June 30, 2021, the market value of investments in the facility consolidated within the Company’s balance sheets was $575,807 thousand.
The components of net realized capital gains (losses) are presented in the tables below for the periods indicated:
| Three Months Ended |
| Six Months Ended | ||||||||
| June 30, |
| June 30, | ||||||||
(Dollars in thousands) | 2021 |
|
| 2020 |
| 2021 |
|
| 2020 | ||
Fixed maturity securities, market value: |
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses | $ | (15,927) |
| $ | (4,063) |
| $ | (22,904) |
| $ | (25,837) |
Gains (losses) from sales |
| 10,060 |
|
| 9,619 |
|
| 19,234 |
|
| (4,457) |
Fixed maturity securities, fair value: |
|
|
|
|
|
|
|
|
|
|
|
Gains (losses) from sales |
|
|
|
|
|
|
| ||||
Gains (losses) from fair value adjustments |
|
|
| (272) |
|
|
|
| (1,395) | ||
Equity securities, fair value: |
|
|
|
|
|
|
|
|
|
|
|
Gains (losses) from sales |
| 3,755 |
|
| 16,274 |
|
| 9,993 |
|
| (11,325) |
Gains (losses) from fair value adjustments |
| 103,525 |
|
| 161,694 |
|
| 132,581 |
|
| 17,691 |
Other invested assets |
| 2,748 |
|
| 1,293 |
|
| 4,094 |
|
| (1,034) |
Short-term investments gain (loss) |
| (52) |
|
| 103 |
|
| 13 |
|
| 417 |
Total net realized capital gains (losses) | $ | 104,109 |
| $ | 184,648 |
| $ | 143,011 |
| $ | (25,940) |
11
| Roll Forward of Allowance for Credit Losses | ||||||||||||||||||||||||||||
| Three Months Ended June 30, 2021 |
| Six Months Ended June 30, 2021 | ||||||||||||||||||||||||||
|
|
|
|
|
|
| Foreign |
| Foreign |
|
|
|
|
|
|
|
|
|
| Foreign |
| Foreign |
|
|
| ||||
| Corporate |
| Asset-Backed |
| Government |
| Corporate |
|
|
|
| Corporate |
| Asset-Backed |
| Government |
| Corporate |
|
|
| ||||||||
| Securities |
| Securities |
| Securities |
| Securities |
| Total |
| Securities |
| Securities |
| Securities |
| Securities |
| Total | ||||||||||
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning Balance | $ | (3,603) |
| $ | (4,915) |
| $ |
| $ | (205) |
| $ | (8,723) |
| $ | (1,220) |
| $ |
| $ | (22) |
| $ | (503) |
| $ | (1,745) | ||
Credit losses on securities where credit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
losses were not previously recorded |
| (13,537) |
|
|
|
|
|
| (1,055) |
|
| (14,592) |
|
| (15,920) |
|
| (4,915) |
|
|
|
| (1,055) |
|
| (21,890) | |||
Increases in allowance on previously |
|
|
|
|
|
|
|
|
|
|
|
|
| - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
impaired securities |
| (1,468) |
|
|
|
|
|
|
|
| (1,468) |
|
| (1,468) |
|
|
|
|
|
|
|
| (1,468) | ||||||
Decreases in allowance on previously |
|
|
|
|
|
|
|
|
|
|
|
|
| - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
impaired securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Reduction in allowance due to disposals |
| 133 |
|
|
|
|
|
|
|
| 133 |
|
| 133 |
|
|
|
| 22 |
|
| 298 |
|
| 453 | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|