New Jersey | 22-2168890 | ||||||||||
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
973 | 948-3000 | ||||||
( | |||||||
Title of each class | Trading Symbol (s) | Name of each exchange on which registered | ||||||||||||
Common Stock, par value $2 per share | The Nasdaq Stock Market LLC | |||||||||||||
Depositary Shares, each representing a 1/1,000th interest in a share of 4.60% Non-Cumulative Preferred Stock, Series B, without par value | ||||||||||||||
Large accelerated filer | ☒ | Accelerated filer ¨ | |||||||||
Non-accelerated filer ¨ | Smaller reporting company | ☐ | |||||||||
Emerging growth company | ☐ |
SELECTIVE INSURANCE GROUP, INC. | ||||||||
Table of Contents | ||||||||
Page No. | ||||||||
PART I | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 1B. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
PART II | ||||||||
Item | ||||||||
Item 6. | ||||||||
Item 7. | ||||||||
Item 7A. | ||||||||
Item 8. | ||||||||
December 31, | ||||||||
December 31, | ||||||||
December 31, | ||||||||
December 31, | ||||||||
Item 9. | ||||||||
Item 9A. | ||||||||
PART III | ||||||||
Item 10. | ||||||||
Item 11. | ||||||||
Item 12. | ||||||||
Item 13. | ||||||||
Item 14. | ||||||||
PART IV | ||||||||
Item 15. |
NRSRO | Financial Strength Rating | Outlook | ||||||||||||
AM Best | A | Positive | ||||||||||||
Standard & Poor’s Global Ratings (“S&P”) | A | Stable | ||||||||||||
Moody’s Investors Services (“Moody’s”) | A2 | Stable | ||||||||||||
Fitch Ratings (“Fitch”) | A+ | Stable |
Long-Term Credit Outlook | ||||||||||||||
Stable | ||||||||||||||
Moody’s | Stable | |||||||||||||
Fitch | Stable |
Types of Policies | Category of Insurance | Standard Commercial Lines | Standard Personal Lines | E&S Lines | |||||||||||||
Commercial Property (including Inland Marine) | Property | X | X | ||||||||||||||
Commercial Automobile | Property/Casualty | X | X | ||||||||||||||
General Liability (including Excess Liability/Umbrella) | Casualty | X | X | ||||||||||||||
Workers Compensation | Casualty | X | |||||||||||||||
Businessowners' Policy | Property/Casualty | X | |||||||||||||||
Bonds (Fidelity and Surety) | Casualty | X | |||||||||||||||
Homeowners | Property/Casualty | X | |||||||||||||||
Personal Automobile | Property/Casualty | X | |||||||||||||||
Personal Umbrella | Casualty | X | |||||||||||||||
Flood1 | Property | X | X |
Percentage of Standard Commercial Lines | Description | |||||||||||||
Contractors | General contractors and trade contractors | |||||||||||||
Mercantile and Services | ||||||||||||||
Community and Public Services | ||||||||||||||
Manufacturing and Wholesale | ||||||||||||||
Bonds | 1% | |||||||||||||
Total Standard Commercial Lines | 100% |
Property | Casualty | |||||||
Standard Commercial Lines | 78% | 87%1 | ||||||
Standard Personal Lines | 84% | 98% | ||||||
E&S Lines | 97% | 98% |
Years ended December 31, | |||||||
% of NPW | 2017 | 2016 | 2015 | ||||
New Jersey | 19.6 | % | 20.2 | 21.2 | |||
Pennsylvania | 11.8 | 11.8 | 11.7 | ||||
New York | 8.2 | 7.8 | 7.2 | ||||
Maryland | 5.5 | 5.4 | 5.4 | ||||
Virginia | 4.6 | 4.6 | 4.6 | ||||
Georgia | 4.5 | 4.3 | 4.1 | ||||
North Carolina | 4.2 | 3.9 | 3.7 | ||||
Indiana | 3.7 | 3.9 | 4.3 | ||||
Illinois | 3.6 | 3.6 | 3.7 | ||||
South Carolina | 3.2 | 3.1 | 3.0 | ||||
Michigan | 3.1 | 3.3 | 3.5 | ||||
Other states | 28.0 | 28.1 | 27.6 | ||||
Total | 100.0 | % | 100.0 | 100.0 |
Region | Office Location | |||||||
Heartland | ||||||||
New Jersey | Hamilton, New Jersey | |||||||
Northeast | Branchville, New Jersey | |||||||
Mid-Atlantic | Allentown, Pennsylvania and Hunt Valley, Maryland | |||||||
Southern | Charlotte, North Carolina | |||||||
Southwest | Scottsdale, Arizona | |||||||
Category of Investment | ||||||
($ in millions, except invested assets per dollar of stockholders' equity) | Carrying Value | % of Investment Portfolio | ||||
Fixed income securities | $ | 5,204.6 | 92 | |||
Equity securities | 182.7 | 3 | ||||
Short-term investments | 165.6 | 3 | ||||
Other investments, including alternatives | 132.3 | 2 | ||||
Total | $ | 5,685.2 | 100 | |||
Invested assets per dollar of stockholders' equity | $ | 3.32 |
2017 | 2016 | ||||||||||||
High | Low | High | Low | ||||||||||
First quarter | $ | 49.05 | 38.50 | 36.92 | 29.27 | ||||||||
Second quarter | 53.75 | 44.65 | 38.67 | 33.60 | |||||||||
Third quarter | 54.05 | 46.28 | 41.30 | 35.90 | |||||||||
Fourth quarter | 62.40 | 53.55 | 44.00 | 34.95 |
Dividend Per Share | 2017 | 2016 | |||||
First quarter | $ | 0.16 | 0.15 | ||||
Second quarter | 0.16 | 0.15 | |||||
Third quarter | 0.16 | 0.15 | |||||
Fourth quarter | 0.18 | 0.16 |
(a) | (b) | (c) | |||||||||||||||||||||
Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))1 | ||||||||||||||||||||
Equity compensation plans approved by security holders | — | $ | — | 4,876,140 |
(a) | (b) | (c) | |||||||||
Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) | ||||||||
Equity compensation plans approved by security holders | 229,864 | 1 | $ | 15.38 | 4,833,993 | 2 |
Period | Total Number of Shares Purchased1 | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Programs2 | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Announced Programs2 | ||||||||||||||||||||||
October 1 – 31, 2020 | — | $ | — | — | — | |||||||||||||||||||||
November 1 – 30, 2020 | — | — | — | — | ||||||||||||||||||||||
December 1 – 31, 2020 | 215 | 66.98 | — | — | ||||||||||||||||||||||
Total | 215 | $ | 66.98 | — | $100 million |
Period | Total Number of Shares Purchased1 | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Programs | Maximum Number of Shares that May Yet Be Purchased Under the Announced Programs | |||||||||
October 1 – 31, 2017 | 193 | $ | 54.95 | — | — | ||||||||
November 1 – 30, 2017 | — | — | — | — | |||||||||
December 1 – 31, 2017 | — | — | — | — | |||||||||
Total | 193 | $ | 54.95 | — | — |
Five-Year Financial Highlights1 | ||||||||||||||||||||||||||||||||||||||
(All presentations are in accordance with Generally Accepted Accounting Principles ("GAAP") unless noted otherwise; number of weighted average shares and dollars in thousands, except per share amounts) | ||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||||||||||||
Net premiums written | $ | 2,773,092 | 2,679,424 | 2,514,286 | 2,370,641 | 2,237,288 | ||||||||||||||||||||||||||||||||
Net premiums earned | 2,681,814 | 2,597,171 | 2,436,229 | 2,291,027 | 2,149,572 | |||||||||||||||||||||||||||||||||
Net investment income earned | 227,107 | 222,543 | 195,336 | 161,882 | 130,754 | |||||||||||||||||||||||||||||||||
Net realized and unrealized investment (losses) gains2 | (4,217) | 14,422 | (54,923) | 6,359 | (4,937) | |||||||||||||||||||||||||||||||||
Total revenues | 2,922,274 | 2,846,491 | 2,586,080 | 2,469,984 | 2,284,270 | |||||||||||||||||||||||||||||||||
Catastrophe losses | 215,378 | 81,001 | 88,023 | 67,299 | 59,735 | |||||||||||||||||||||||||||||||||
Underwriting income | 136,349 | 163,993 | 121,173 | 154,336 | 151,933 | |||||||||||||||||||||||||||||||||
Net income available to common stockholders | 246,355 | 271,623 | 178,939 | 168,826 | 158,495 | |||||||||||||||||||||||||||||||||
Comprehensive income | 384,791 | 431,329 | 105,832 | 204,946 | 151,970 | |||||||||||||||||||||||||||||||||
Total assets | 9,687,913 | 8,797,150 | 7,952,729 | 7,686,431 | 7,355,848 | |||||||||||||||||||||||||||||||||
Long-term debt | 550,743 | 550,597 | 439,540 | 439,116 | 438,667 | |||||||||||||||||||||||||||||||||
Stockholders’ equity | 2,738,889 | 2,194,936 | 1,791,802 | 1,712,957 | 1,531,370 | |||||||||||||||||||||||||||||||||
Statutory premiums to surplus ratio | 1.30 | x | 1.39 | 1.42 | 1.42 | 1.41 | ||||||||||||||||||||||||||||||||
Combined ratio | 94.9 | % | 93.7 | 95.0 | 93.3 | 92.9 | ||||||||||||||||||||||||||||||||
Impact of catastrophe losses on combined ratio | 8.0 | pts | 3.1 | 3.6 | 2.9 | 2.8 | ||||||||||||||||||||||||||||||||
Invested assets per dollar of common stockholders' equity | $ | 2.96 | 3.05 | 3.33 | 3.32 | 3.50 | ||||||||||||||||||||||||||||||||
Yield on investments, after tax | 2.6 | % | 2.9 | 2.8 | 2.1 | 1.9 | ||||||||||||||||||||||||||||||||
Debt to capitalization ratio | 16.7 | 20.1 | 19.7 | 20.4 | 22.3 | |||||||||||||||||||||||||||||||||
Return on average common equity | 10.4 | 13.6 | 10.2 | 10.4 | 10.8 | |||||||||||||||||||||||||||||||||
Non-GAAP operating income3 | $ | 249,686 | 264,418 | 218,567 | 184,898 | 161,704 | ||||||||||||||||||||||||||||||||
Non-GAAP operating income per common share (diluted)3 | 4.15 | 4.40 | 3.66 | 3.11 | 2.75 | |||||||||||||||||||||||||||||||||
Non-GAAP operating return on average common equity3 | 10.5 | % | 13.3 | 12.5 | 11.4 | 11.0 | ||||||||||||||||||||||||||||||||
Per common share data: | ||||||||||||||||||||||||||||||||||||||
Net income available to common stockholders: | ||||||||||||||||||||||||||||||||||||||
Basic | $ | 4.12 | 4.57 | 3.04 | 2.89 | 2.74 | ||||||||||||||||||||||||||||||||
Diluted | 4.09 | 4.53 | 3.00 | 2.84 | 2.70 | |||||||||||||||||||||||||||||||||
Dividends paid per common share | $ | 0.94 | 0.83 | 0.74 | 0.66 | 0.61 | ||||||||||||||||||||||||||||||||
Book value per common share | 42.38 | 36.91 | 30.40 | 29.28 | 26.42 | |||||||||||||||||||||||||||||||||
Price range of common stock: | ||||||||||||||||||||||||||||||||||||||
High | 70.89 | 81.35 | 67.17 | 62.40 | 44.00 | |||||||||||||||||||||||||||||||||
Low | 37.05 | 58.06 | 53.55 | 38.50 | 29.27 | |||||||||||||||||||||||||||||||||
Close | 66.98 | 65.19 | 60.94 | 58.70 | 43.05 | |||||||||||||||||||||||||||||||||
Number of weighted average common shares: | ||||||||||||||||||||||||||||||||||||||
Basic | 59,862 | 59,421 | 58,950 | 58,458 | 57,889 | |||||||||||||||||||||||||||||||||
Diluted | 60,293 | 60,004 | 59,713 | 59,357 | 58,747 |
Five-Year Financial Highlights | ||||||||||||||||||
(All presentations are in accordance with GAAP unless noted otherwise, number of weighted average shares and dollars in thousands, except per share amounts) | ||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||
Net premiums written | $ | 2,370,641 | 2,237,288 | 2,069,904 | 1,885,280 | 1,810,159 | ||||||||||||
Net premiums earned | 2,291,027 | 2,149,572 | 1,989,909 | 1,852,609 | 1,736,072 | |||||||||||||
Net investment income earned | 161,882 | 130,754 | 121,316 | 138,708 | 134,643 | |||||||||||||
Net realized gains (losses) | 6,359 | (4,937 | ) | 13,171 | 26,599 | 20,732 | ||||||||||||
Total revenues | 2,469,984 | 2,284,270 | 2,131,852 | 2,034,861 | 1,903,741 | |||||||||||||
Catastrophe losses | 67,299 | 59,735 | 59,055 | 59,971 | 47,415 | |||||||||||||
Underwriting income | 154,336 | 151,933 | 149,029 | 78,143 | 38,766 | |||||||||||||
Net income | 168,826 | 158,495 | 165,861 | 141,827 | 106,418 | |||||||||||||
Comprehensive income | 204,946 | 151,970 | 136,648 | 136,764 | 77,229 | |||||||||||||
Total assets | 7,686,431 | 7,355,848 | 6,904,433 | 6,574,942 | 6,262,585 | |||||||||||||
Short-term debt | — | — | 60,000 | — | 13,000 | |||||||||||||
Long-term debt | 439,116 | 438,667 | 328,192 | 372,689 | 371,829 | |||||||||||||
Stockholders’ equity | 1,712,957 | 1,531,370 | 1,398,041 | 1,275,586 | 1,153,928 | |||||||||||||
Statutory premiums to surplus ratio | 1.4 | 1.4 | 1.5 | 1.4 | 1.4 | |||||||||||||
Combined ratio | 93.3 | % | 92.9 | 92.5 | 95.8 | 97.8 | ||||||||||||
Impact of catastrophe losses on combined ratio | 2.9 | pts | 2.8 | 3.0 | 3.2 | 2.7 | ||||||||||||
Invested assets per dollar of stockholders' equity | $ | 3.32 | 3.50 | 3.64 | 3.77 | 3.97 | ||||||||||||
Yield on investments, before tax | 2.9 | % | 2.5 | 2.5 | 3.0 | 3.0 | ||||||||||||
Debt to capitalization ratio | 20.4 | 22.3 | 21.7 | 22.6 | 25.0 | |||||||||||||
Return on average equity | 10.4 | 10.8 | 12.4 | 11.7 | 9.5 | |||||||||||||
Per share data: | ||||||||||||||||||
Net income from continuing operations: | ||||||||||||||||||
Basic | $ | 2.89 | 2.74 | 2.90 | 2.52 | 1.93 | ||||||||||||
Diluted | 2.84 | 2.70 | 2.85 | 2.47 | 1.89 | |||||||||||||
Net income: | ||||||||||||||||||
Basic | $ | 2.89 | 2.74 | 2.90 | 2.52 | 1.91 | ||||||||||||
Diluted | 2.84 | 2.70 | 2.85 | 2.47 | 1.87 | |||||||||||||
Dividends to stockholders | $ | 0.66 | 0.61 | 0.57 | 0.53 | 0.52 | ||||||||||||
Stockholders’ equity | 29.28 | 26.42 | 24.37 | 22.54 | 20.63 | |||||||||||||
Price range of common stock: | ||||||||||||||||||
High | 62.40 | 44.00 | 37.91 | 27.65 | 28.31 | |||||||||||||
Low | 38.50 | 29.27 | 25.49 | 21.38 | 19.53 | |||||||||||||
Close | 58.70 | 43.05 | 33.58 | 27.17 | 27.06 | |||||||||||||
Number of weighted average shares: | ||||||||||||||||||
Basic | 58,458 | 57,889 | 57,212 | 56,310 | 55,638 | |||||||||||||
Diluted | 59,357 | 58,747 | 58,156 | 57,351 | 56,810 |
As of December 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2020 | As of December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Losses and Loss Expense Reserves | Loss and Loss Expense Reserves | |||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | Case Reserves | IBNR Reserves | Total | Reinsurance Recoverable on Unpaid Loss and Loss Expense | Net Reserves | ($ in thousands) | Case Reserves | IBNR Reserves | Total | Reinsurance Recoverable on Unpaid Loss and Loss Expense | Net Reserves | |||||||||||||||||||||||||||||||||||||
General liability | $ | 260,605 | 1,046,261 | 1,306,866 | 175,276 | 1,131,590 | General liability | $ | 275,133 | 1,363,508 | 1,638,641 | 215,136 | 1,423,505 | |||||||||||||||||||||||||||||||||||
Workers compensation | 427,955 | 756,609 | 1,184,564 | 218,024 | 966,540 | Workers compensation | 359,344 | 721,437 | 1,080,781 | 210,450 | 870,331 | |||||||||||||||||||||||||||||||||||||
Commercial automobile | 200,409 | 291,681 | 492,090 | 16,745 | 475,345 | Commercial automobile | 246,428 | 410,123 | 656,551 | 11,611 | 644,940 | |||||||||||||||||||||||||||||||||||||
Businessowners' policies | 31,758 | 58,522 | 90,280 | 3,926 | 86,354 | Businessowners' policies | 39,047 | 62,517 | 101,564 | 6,849 | 94,715 | |||||||||||||||||||||||||||||||||||||
Commercial property | 64,192 | 13,420 | 77,612 | 24,387 | 53,225 | Commercial property | 60,254 | 38,228 | 98,482 | 21,760 | 76,722 | |||||||||||||||||||||||||||||||||||||
Other | 5,018 | 8,787 | 13,805 | 2,287 | 11,518 | Other | 5,247 | 15,073 | 20,320 | 2,853 | 17,467 | |||||||||||||||||||||||||||||||||||||
Total Standard Commercial Lines | 989,937 | 2,175,280 | 3,165,217 | 440,645 | 2,724,572 | Total Standard Commercial Lines | 985,453 | 2,610,886 | 3,596,339 | 468,659 | 3,127,680 | |||||||||||||||||||||||||||||||||||||
Personal automobile | 76,895 | 73,356 | 150,251 | 53,129 | 97,122 | Personal automobile | 60,860 | 79,596 | 140,456 | 42,403 | 98,053 | |||||||||||||||||||||||||||||||||||||
Homeowners | 15,477 | 18,763 | 34,240 | 999 | 33,241 | Homeowners | 15,456 | 31,926 | 47,382 | 847 | 46,535 | |||||||||||||||||||||||||||||||||||||
Other | 51,646 | 27,029 | 78,675 | 69,333 | 9,342 | Other | 10,498 | 30,013 | 40,511 | 29,589 | 10,922 | |||||||||||||||||||||||||||||||||||||
Total Standard Personal Lines | 144,018 | 119,148 | 263,166 | 123,461 | 139,705 | Total Standard Personal Lines | 86,814 | 141,535 | 228,349 | 72,839 | 155,510 | |||||||||||||||||||||||||||||||||||||
Casualty lines1 | 53,764 | 273,607 | 327,371 | 21,360 | 306,011 | |||||||||||||||||||||||||||||||||||||||||||
Property lines2 | 6,586 | 8,900 | 15,486 | 389 | 15,097 | |||||||||||||||||||||||||||||||||||||||||||
E&S casualty lines1 | E&S casualty lines1 | 80,506 | 336,596 | 417,102 | 12,195 | 404,907 | ||||||||||||||||||||||||||||||||||||||||||
E&S property lines2 | E&S property lines2 | 9,401 | 9,164 | 18,565 | 576 | 17,989 | ||||||||||||||||||||||||||||||||||||||||||
Total E&S Lines | 60,350 | 282,507 | 342,857 | 21,749 | 321,108 | Total E&S Lines | 89,907 | 345,760 | 435,667 | 12,771 | 422,896 | |||||||||||||||||||||||||||||||||||||
Total | $ | 1,194,305 | 2,576,935 | 3,771,240 | 585,855 | 3,185,385 | Total | $ | 1,162,174 | 3,098,181 | 4,260,355 | 554,269 | 3,706,086 |
December 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2019 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||
Losses and Loss Expense Reserves | Loss and Loss Expense Reserves | |||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | Case Reserves | IBNR Reserves | Total | Reinsurance Recoverable on Unpaid Loss and Loss Expense | Net Reserves | ($ in thousands) | Case Reserves | IBNR Reserves | Total | Reinsurance Recoverable on Unpaid Loss and Loss Expense | Net Reserves | |||||||||||||||||||||||||||||||||||||
General liability | $ | 235,329 | 1,053,400 | 1,288,729 | 179,997 | 1,108,732 | General liability | $ | 247,267 | 1,269,643 | 1,516,910 | 195,830 | 1,321,080 | |||||||||||||||||||||||||||||||||||
Workers compensation | 463,523 | 745,590 | 1,209,113 | 223,327 | 985,786 | Workers compensation | 372,104 | 729,298 | 1,101,402 | 206,414 | 894,988 | |||||||||||||||||||||||||||||||||||||
Commercial auto | 170,380 | 259,861 | 430,241 | 17,373 | 412,868 | Commercial auto | 216,358 | 408,371 | 624,729 | 14,352 | 610,377 | |||||||||||||||||||||||||||||||||||||
Businessowners' policies | 40,018 | 56,894 | 96,912 | 7,012 | 89,900 | Businessowners' policies | 35,062 | 57,929 | 92,991 | 3,012 | 89,979 | |||||||||||||||||||||||||||||||||||||
Commercial property | 50,757 | 7,910 | 58,667 | 13,615 | 45,052 | Commercial property | 63,678 | 17,083 | 80,761 | 26,526 | 54,235 | |||||||||||||||||||||||||||||||||||||
Other | 5,243 | 9,647 | 14,890 | 2,613 | 12,277 | Other | 14,213 | 5,357 | 19,570 | 9,113 | 10,457 | |||||||||||||||||||||||||||||||||||||
Total Standard Commercial Lines | 965,250 | 2,133,302 | 3,098,552 | 443,937 | 2,654,615 | Total Standard Commercial Lines | 948,682 | 2,487,681 | 3,436,363 | 455,247 | 2,981,116 | |||||||||||||||||||||||||||||||||||||
Personal automobile | 78,512 | 72,435 | 150,947 | 55,223 | 95,724 | Personal automobile | 68,605 | 80,445 | 149,050 | 44,104 | 104,946 | |||||||||||||||||||||||||||||||||||||
Homeowners | 24,779 | 19,845 | 44,624 | 3,206 | 41,418 | Homeowners | 13,616 | 21,713 | 35,329 | 1,182 | 34,147 | |||||||||||||||||||||||||||||||||||||
Other | 64,314 | 26,198 | 90,512 | 82,625 | 7,887 | Other | 11,600 | 28,221 | 39,821 | 28,993 | 10,828 | |||||||||||||||||||||||||||||||||||||
Total Standard Personal Lines | 167,605 | 118,478 | 286,083 | 141,054 | 145,029 | Total Standard Personal Lines | 93,821 | 130,379 | 224,200 | 74,279 | 149,921 | |||||||||||||||||||||||||||||||||||||
Casualty lines1 | 50,337 | 241,473 | 291,810 | 25,741 | 266,069 | |||||||||||||||||||||||||||||||||||||||||||
Property lines2 | 8,253 | 7,021 | 15,274 | 468 | 14,806 | |||||||||||||||||||||||||||||||||||||||||||
E&S casualty lines1 | E&S casualty lines1 | 68,042 | 328,301 | 396,343 | 14,319 | 382,024 | ||||||||||||||||||||||||||||||||||||||||||
E&S property lines2 | E&S property lines2 | 3,146 | 7,111 | 10,257 | 317 | 9,940 | ||||||||||||||||||||||||||||||||||||||||||
E&S Lines | 58,590 | 248,494 | 307,084 | 26,209 | 280,875 | E&S Lines | 71,188 | 335,412 | 406,600 | 14,636 | 391,964 | |||||||||||||||||||||||||||||||||||||
Total | $ | 1,191,445 | 2,500,274 | 3,691,719 | 611,200 | 3,080,519 | Total | $ | 1,113,691 | 2,953,472 | 4,067,163 | 544,162 | 3,523,001 |
(Favorable)/Unfavorable Prior Year Loss and Loss Expense Development | ||||||||||||||||||||
($ in millions) | 2020 | 2019 | 2018 | |||||||||||||||||
General liability | $ | (35.0) | (5.0) | (9.5) | ||||||||||||||||
Commercial Automobile | 7.1 | 0.7 | 36.7 | |||||||||||||||||
Workers compensation | (60.0) | (68.0) | (83.0) | |||||||||||||||||
Businessowners' policies | 3.9 | 1.9 | (1.5) | |||||||||||||||||
Commercial property | 9.2 | 5.1 | 7.5 | |||||||||||||||||
Homeowners | 7.7 | 7.5 | 9.8 | |||||||||||||||||
Personal automobile | (1.8) | 4.4 | 3.0 | |||||||||||||||||
E&S casualty lines | — | 2.0 | 12.0 | |||||||||||||||||
E&S property lines | (4.0) | 1.0 | (4.8) | |||||||||||||||||
Other | — | 0.1 | (0.1) | |||||||||||||||||
Total | $ | (72.9) | (50.3) | (29.9) |
(Favorable)/Unfavorable Prior Year Loss and Loss Expense Development | ||||||||||
($ in millions) | 2017 | 2016 | 2015 | |||||||
General liability | $ | (48.3 | ) | (45.0 | ) | (51.0 | ) | |||
Workers compensation | (52.3 | ) | (56.0 | ) | (37.0 | ) | ||||
Commercial automobile | 35.6 | 25.3 | 2.4 | |||||||
Businessowners' policies | 1.9 | 1.8 | 2.2 | |||||||
Commercial property | 8.7 | 0.3 | (3.0 | ) | ||||||
Personal automobile | 6.7 | 1.0 | 0.4 | |||||||
Homeowners | 0.4 | 1.7 | 1.5 | |||||||
E&S casualty lines | 10.0 | 6.0 | 16.0 | |||||||
Other | (1.9 | ) | (0.9 | ) | (0.5 | ) | ||||
Total | $ | (39.2 | ) | (65.8 | ) | (69.0 | ) |
Reserve Impacts of Changes to Expected Loss and Loss Expense Reporting Patterns | ||||||||||||||||||||
($ in millions) | Percentage Decrease/Increase | (Decrease) to Future Calendar Year Reported | Increase to Future Calendar Year Reported | |||||||||||||||||
General liability | 10 | % | $ | (140) | $ | 140 | ||||||||||||||
Workers compensation | 18 | (105) | 105 | |||||||||||||||||
Commercial automobile liability | 15 | (80) | 80 | |||||||||||||||||
Personal automobile liability | 15 | (10) | 10 | |||||||||||||||||
E&S casualty lines | 10 | (40) | 40 |
Reserve Impacts of Changes to Expected Loss and Loss Expense Reporting Patterns | |||||||||||||||||||||||||||||||
Reserve Impacts of Changes to Current Year Expected Ultimate Loss and Loss Expense Ratios | Reserve Impacts of Changes to Current Year Expected Ultimate Loss and Loss Expense Ratios | ||||||||||||||||||||||||||||||
($ in millions) | Percentage Decrease/Increase | (Decrease) to Future Calendar Year Reported | Increase to Future Calendar Year Reported | ($ in millions) | Percentage Decrease/Increase | (Decrease) to Current Accident Year Expected Loss and Loss Expense Ratio | Increase to Current Accident Year Expected Loss and Loss Expense Ratio | ||||||||||||||||||||||||
General liability | 7 | % | $ | (80 | ) | $ | 80 | General liability | 10 | pts | $ | (70) | $ | 70 | |||||||||||||||||
Workers compensation | 10 | (70 | ) | 70 | Workers compensation | 10 | (30) | 30 | |||||||||||||||||||||||
Commercial automobile liability | 12 | (50 | ) | 50 | Commercial automobile liability | 10 | (45) | 45 | |||||||||||||||||||||||
Personal automobile liability | 15 | (10 | ) | 10 | Personal automobile liability | 10 | (10) | 10 | |||||||||||||||||||||||
E&S casualty lines | 10 | (35 | ) | 35 | E&S casualty lines | 10 | (20) | 20 |
Reserve Impacts of Changes to Current Year Expected Ultimate Loss and Loss Expense Ratios | ||||||||||
($ in millions) | Percentage Decrease/Increase | (Decrease) to Current Accident Year Expected Loss and Loss Expense Ratio | Increase to Current Accident Year Expected Loss and Loss Expense Ratio | |||||||
General liability | 10 | pts | $ | (60 | ) | $ | 60 | |||
Workers compensation | 10 | (35 | ) | 35 | ||||||
Commercial automobile liability | 10 | (35 | ) | 35 | ||||||
Personal automobile liability | 10 | (10 | ) | 10 | ||||||
E&S casualty lines | 10 | (15 | ) | 15 |
Financial Highlights of Results for Years Ended December 31, 2017, 2016, and 20151 | |||||||||||||||||||||
2017 vs. 2016 | 2016 vs. 2015 | ||||||||||||||||||||
($ in thousands, except per share amounts) | 2017 | 2016 | 2015 | ||||||||||||||||||
Revenues | $ | 2,469,984 | 2,284,270 | 8 | % | $ | 2,131,852 | 7 | % | ||||||||||||
After-tax net investment income | 118,520 | 98,405 | 20 | 93,836 | 5 | ||||||||||||||||
After-tax underwriting income | 100,318 | 98,756 | 2 | 96,869 | 2 | ||||||||||||||||
Net income before federal income tax | 261,968 | 219,955 | 19 | 232,692 | (5 | ) | |||||||||||||||
Net income | 168,826 | 158,495 | 7 | 165,861 | (4 | ) | |||||||||||||||
Diluted net income per share | $ | 2.84 | 2.70 | 5 | $ | 2.85 | (5 | ) | |||||||||||||
Diluted weighted-average outstanding shares | 59,357 | 58,747 | 1 | 58,156 | 1 | ||||||||||||||||
Combined ratio | 93.3 | % | 92.9 | 0.4 | pts | 92.5 | % | 0.4 | pts | ||||||||||||
Invested assets per dollar of stockholders' equity | $ | 3.32 | 3.50 | (5 | ) | % | $ | 3.64 | (4 | ) | % | ||||||||||
After-tax yield on investments | 2.1 | % | 1.9 | 0.2 | pts | 1.9 | % | — | pts | ||||||||||||
Return on average equity ("ROE") | 10.4 | 10.8 | (0.4 | ) | 12.4 | (1.6 | ) | ||||||||||||||
Non-GAAP operating income | $ | 184,898 | 161,704 | 14 | % | $ | 157,300 | 3 | % | ||||||||||||
Diluted non-GAAP operating income per share | 3.11 | 2.75 | 13 | 2.70 | 2 | ||||||||||||||||
Non-GAAP operating ROE | 11.4 | % | 11.0 | 0.4 | pts | 11.8 | % | (0.8 | ) | pts |
Financial Highlights of Results for Years Ended December 31, 2020, 2019, and 20181 | ||||||||||||||||||||||||||||||||||||||||||||
2020 vs. 2019 | 2019 vs. 2018 | |||||||||||||||||||||||||||||||||||||||||||
($ in thousands, except per share amounts) | 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||||||||
Financial Data: | ||||||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 2,922,274 | 2,846,491 | 3 | % | $ | 2,586,080 | 10 | % | |||||||||||||||||||||||||||||||||||
After-tax net investment income | 184,612 | 181,161 | 2 | 160,481 | 13 | |||||||||||||||||||||||||||||||||||||||
After-tax underwriting income | 107,716 | 129,554 | (17) | 95,727 | 35 | |||||||||||||||||||||||||||||||||||||||
Net income before federal income tax | 302,988 | 336,390 | (10) | 211,721 | 59 | |||||||||||||||||||||||||||||||||||||||
Net income | 246,355 | 271,623 | (9) | 178,939 | 52 | |||||||||||||||||||||||||||||||||||||||
Net income available to common stockholders | 246,355 | 271,623 | (9) | 178,939 | 52 | |||||||||||||||||||||||||||||||||||||||
Key Metrics: | ||||||||||||||||||||||||||||||||||||||||||||
Combined ratio | 94.9 | % | 93.7 | 1.2 | pts | 95.0 | % | (1.3) | pts | |||||||||||||||||||||||||||||||||||
Invested assets per dollar of common stockholders' equity | $ | 2.96 | 3.05 | (3) | % | $ | 3.33 | (8) | % | |||||||||||||||||||||||||||||||||||
Return on average common equity ("ROE") | 10.4 | % | 13.6 | (3.2) | pts | 10.2 | 3.4 | pts | ||||||||||||||||||||||||||||||||||||
Statutory premiums to surplus ratio | 1.30 | x | 1.39 | (0.09) | pts | 1.42 | (0.03) | pts | ||||||||||||||||||||||||||||||||||||
Per Common Share Amounts: | ||||||||||||||||||||||||||||||||||||||||||||
Diluted net income per share | $ | 4.09 | 4.53 | (10) | $ | 3.00 | 51 | |||||||||||||||||||||||||||||||||||||
Book value per share | 42.38 | 36.91 | 15 | % | 30.40 | 21 | % | |||||||||||||||||||||||||||||||||||||
Dividends declared per share to common stockholders | 0.94 | 0.83 | 13 | 0.74 | 12 | |||||||||||||||||||||||||||||||||||||||
Non-GAAP Information: | ||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP operating income2 | $ | 249,686 | 264,418 | (6) | % | $ | 218,567 | 21 | % | |||||||||||||||||||||||||||||||||||
Diluted non-GAAP operating income per common share2 | 4.15 | 4.40 | (6) | 3.66 | 20 | |||||||||||||||||||||||||||||||||||||||
Non-GAAP operating ROE2 | 10.5 | % | 13.3 | (2.8) | pts | 12.5 | % | 0.8 | pts |
Reconciliation of net income available to common stockholders to non-GAAP operating income | ||||||||||||||||||||
($ in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||
Net income available to common stockholders | $ | 246,355 | 271,623 | 178,939 | ||||||||||||||||
Net realized and unrealized losses (gains), before tax | 4,217 | (14,422) | 54,923 | |||||||||||||||||
Debt retirement costs, before tax | — | 4,175 | — | |||||||||||||||||
Tax on reconciling items | (886) | 3,042 | (15,295) | |||||||||||||||||
Non-GAAP operating income | $ | 249,686 | 264,418 | 218,567 |
Reconciliation of net income available to common stockholders per diluted common share to non-GAAP operating income per diluted common share | 2020 | 2019 | 2018 | |||||||||||||||||
Net income available to common stockholders per diluted common share | $ | 4.09 | 4.53 | 3.00 | ||||||||||||||||
Net realized and unrealized losses (gains), before tax | 0.07 | (0.24) | 0.92 | |||||||||||||||||
Debt retirement costs, before tax | — | 0.07 | — | |||||||||||||||||
Tax on reconciling items | (0.01) | 0.04 | (0.26) | |||||||||||||||||
Non-GAAP operating income per diluted common share | $ | 4.15 | 4.40 | 3.66 |
Reconciliation of ROE to non-GAAP operating ROE | 2020 | 2019 | 2018 | |||||||||||||||||
ROE | 10.4 | % | 13.6 | 10.2 | ||||||||||||||||
Net realized and unrealized losses (gains), before tax | 0.2 | (0.7) | 3.1 | |||||||||||||||||
Debt retirement costs, before tax | — | 0.2 | — | |||||||||||||||||
Tax on reconciling items | (0.1) | 0.2 | (0.8) | |||||||||||||||||
Non-GAAP operating ROE | 10.5 | % | 13.3 | 12.5 |
Reconciliation of net income to non-GAAP operating income | ||||||||||
($ in thousands) | 2017 | 2016 | 2015 | |||||||
Net income | $ | 168,826 | 158,495 | 165,861 | ||||||
Exclude: Net realized (gains) losses | (6,359 | ) | 4,937 | (13,171 | ) | |||||
Exclude: Tax on net realized gains (losses) | 2,226 | (1,728 | ) | 4,610 | ||||||
Exclude: Tax reform impact | 20,205 | — | — | |||||||
Non-GAAP operating income | $ | 184,898 | 161,704 | 157,300 |
ROE Components | 2020 | 2019 | Change Points | 2018 | Change Points | |||||||||||||||||||||||||||
Standard Commercial Lines Segment | 5.1 | % | 5.8 | (0.7) | 4.9 | 0.9 | ||||||||||||||||||||||||||
Standard Personal Lines Segment | (0.5) | 0.3 | (0.8) | 0.6 | (0.3) | |||||||||||||||||||||||||||
E&S Lines Segment | — | 0.4 | (0.4) | — | 0.4 | |||||||||||||||||||||||||||
Total insurance operations | 4.6 | 6.5 | (1.9) | 5.5 | 1.0 | |||||||||||||||||||||||||||
Investment income | 7.8 | 9.1 | (1.3) | 9.2 | (0.1) | |||||||||||||||||||||||||||
Net realized and unrealized (losses) gains | (0.1) | 0.5 | (0.6) | (2.3) | 2.8 | |||||||||||||||||||||||||||
Total investments segment | 7.7 | 9.6 | (1.9) | 6.9 | 2.7 | |||||||||||||||||||||||||||
Debt retirement costs | — | (0.2) | 0.2 | — | (0.2) | |||||||||||||||||||||||||||
Other | (1.9) | (2.3) | 0.4 | (2.2) | (0.1) | |||||||||||||||||||||||||||
ROE | 10.4 | % | 13.6 | (3.2) | 10.2 | 3.4 |
Reconciliation of net income per share to non-GAAP operating income per share | 2017 | 2016 | 2015 | |||||||
Diluted net income per share | $ | 2.84 | 2.70 | 2.85 | ||||||
Exclude: Net realized (gains) losses per share | (0.11 | ) | 0.08 | (0.23 | ) | |||||
Exclude: Tax on net realized gains (losses) per share | 0.04 | (0.03 | ) | 0.08 | ||||||
Exclude: Tax reform impact per share | 0.34 | — | — | |||||||
Diluted non-GAAP operating income per share | $ | 3.11 | 2.75 | 2.70 |
Reconciliation of ROE to non-GAAP operating ROE | 2017 | 2016 | 2015 | ||||||
Insurance operations | 6.2 | % | 6.7 | 7.3 | |||||
Investment income | 7.3 | 6.7 | 7.0 | ||||||
Other | (2.1 | ) | (2.4 | ) | (2.5 | ) | |||
Net realized gains (losses) | 0.4 | (0.3 | ) | 1.0 | |||||
Tax on net realized (gains) losses | (0.2 | ) | 0.1 | (0.4 | ) | ||||
Tax reform impact | (1.2 | ) | — | — | |||||
ROE | 10.4 | 10.8 | 12.4 | ||||||
Exclude: Net realized (gains) losses | (0.4 | ) | 0.3 | (1.0 | ) | ||||
Exclude: Tax on net realized gains (losses) | 0.2 | (0.1 | ) | 0.4 | |||||
Exclude: Tax reform impact | 1.2 | — | — | ||||||
Non-GAAP operating ROE | 11.4 | % | 11.0 | 11.8 |
All Lines | 2017 vs. 2016 | 2016 vs. 2015 | ||||||||||||||||
($ in thousands) | 2017 | 2016 | 2015 | |||||||||||||||
Insurance Operations Results: | ||||||||||||||||||
Net premiums written ("NPW") | $ | 2,370,641 | 2,237,288 | 6 | % | $ | 2,069,904 | 8 | % | |||||||||
Net premiums earned ("NPE") | 2,291,027 | 2,149,572 | 7 | 1,989,909 | 8 | |||||||||||||
Less: | ||||||||||||||||||
Loss and loss expense incurred | 1,345,074 | 1,234,797 | 9 | 1,148,541 | 8 | |||||||||||||
Net underwriting expenses incurred | 786,983 | 759,194 | 4 | 686,120 | 11 | |||||||||||||
Dividends to policyholders | 4,634 | 3,648 | 27 | 6,219 | (41 | ) | ||||||||||||
Underwriting income | $ | 154,336 | 151,933 | 2 | % | $ | 149,029 | 2 | % | |||||||||
Combined Ratios: | ||||||||||||||||||
Loss and loss expense ratio | 58.7 | % | 57.4 | 1.3 | pts | 57.7 | % | (0.3 | ) | pts | ||||||||
Underwriting expense ratio | 34.4 | 35.3 | (0.9 | ) | 34.5 | 0.8 | ||||||||||||
Dividends to policyholders ratio | 0.2 | 0.2 | — | 0.3 | (0.1 | ) | ||||||||||||
Combined ratio | 93.3 | 92.9 | 0.4 | 92.5 | 0.4 |
(Favorable)/Unfavorable Prior Year Casualty Reserve Development | ||||||||||
($ in millions) | 2017 | 2016 | 2015 | |||||||
General liability | $ | (48.3 | ) | (45.0 | ) | (51.0 | ) | |||
Commercial automobile | 36.0 | 25.0 | 3.0 | |||||||
Workers compensation | (52.3 | ) | (56.0 | ) | (37.0 | ) | ||||
Businessowners' policies | — | 0.5 | 4.0 | |||||||
Other | (2.0 | ) | (2.0 | ) | — | |||||
Total Standard Commercial Lines | (66.6 | ) | (77.5 | ) | (81.0 | ) | ||||
Homeowners | 1.0 | 1.5 | (2.0 | ) | ||||||
Personal automobile | 7.0 | 1.0 | — | |||||||
Total Standard Personal Lines | 8.0 | 2.5 | (2.0 | ) | ||||||
E&S casualty lines | 10.0 | 6.0 | 16.0 | |||||||
Total favorable prior year casualty reserve development | $ | (48.6 | ) | (69.0 | ) | (67.0 | ) | |||
(Favorable) impact on loss ratio | (2.1 | ) | pts | (3.2 | ) | (3.4 | ) |
Catastrophe Losses | |||||||||
($ in millions) | (Favorable)/Unfavorable Year-Over-Year Change | ||||||||
For the Year ended December 31, | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | |||||||
2017 | $ | 67.3 | 2.9 | pts | 0.1 | ||||
2016 | 59.7 | 2.8 | (0.2 | ) | |||||
2015 | 59.1 | 3.0 | (0.2 | ) |
Non-Catastrophe Property Losses | |||||||||
($ in millions) | (Favorable)/Unfavorable Year-Over-Year Change | ||||||||
For the Year ended December 31, | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | |||||||
2017 | $ | 303.7 | 13.3 | pts | 0.3 | ||||
2016 | 279.2 | 13.0 | (0.3 | ) | |||||
2015 | 265.4 | 13.3 | (2.2 | ) |
2017 vs. 2016 | 2016 vs. 2015 | |||||||||||||||||
($ in thousands) | 2017 | 2016 | 2015 | |||||||||||||||
Insurance Segments Results: | ||||||||||||||||||
NPW | $ | 1,858,735 | 1,745,782 | 6 | % | $ | 1,596,965 | 9 | % | |||||||||
NPE | 1,788,499 | 1,665,483 | 7 | 1,529,442 | 9 | |||||||||||||
Less: | ||||||||||||||||||
Loss and loss expense incurred | 1,008,150 | 913,506 | 10 | 819,573 | 11 | |||||||||||||
Net underwriting expenses incurred | 626,201 | 601,894 | 4 | 539,154 | 12 | |||||||||||||
Dividends to policyholders | 4,634 | 3,648 | 27 | 6,219 | (41 | ) | ||||||||||||
Underwriting income | $ | 149,514 | 146,435 | 2 | % | $ | 164,496 | (11 | ) | % | ||||||||
Combined Ratios: | ||||||||||||||||||
Loss and loss expense ratio | 56.3 | % | 54.8 | 1.5 | pts | 53.6 | % | 1.2 | pts | |||||||||
Underwriting expense ratio | 35.0 | 36.2 | (1.2 | ) | 35.2 | 1.0 | ||||||||||||
Dividends to policyholders ratio | 0.3 | 0.2 | 0.1 | 0.4 | (0.2 | ) | ||||||||||||
Combined ratio | 91.6 | 91.2 | 0.4 | 89.2 | 2.0 |
All Lines | 2020 vs. 2019 | 2019 vs. 2018 | |||||||||||||||||||||||||||||||||
($ in thousands) | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||
Insurance Operations Results: | |||||||||||||||||||||||||||||||||||
NPW | $ | 2,773,092 | 2,679,424 | 3 | % | $ | 2,514,286 | 7 | % | ||||||||||||||||||||||||||
NPE | 2,681,814 | 2,597,171 | 3 | 2,436,229 | 7 | ||||||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||||||||
Loss and loss expense incurred | 1,635,823 | 1,551,491 | 5 | 1,498,134 | 4 | ||||||||||||||||||||||||||||||
Net underwriting expenses incurred | 905,830 | 876,567 | 3 | 808,939 | 8 | ||||||||||||||||||||||||||||||
Dividends to policyholders | 3,812 | 5,120 | (26) | 7,983 | (36) | ||||||||||||||||||||||||||||||
Underwriting income | $ | 136,349 | 163,993 | (17) | % | $ | 121,173 | 35 | % | ||||||||||||||||||||||||||
Combined Ratios: | |||||||||||||||||||||||||||||||||||
Loss and loss expense ratio | 61.0 | % | 59.7 | 1.3 | pts | 61.5 | % | (1.8) | pts | ||||||||||||||||||||||||||
Underwriting expense ratio | 33.8 | 33.8 | — | 33.2 | 0.6 | ||||||||||||||||||||||||||||||
Dividends to policyholders ratio | 0.1 | 0.2 | (0.1) | 0.3 | (0.1) | ||||||||||||||||||||||||||||||
Combined ratio | 94.9 | 93.7 | 1.2 | 95.0 | (1.3) |
For the Year Ended December 31, | |||||||||||
($ in millions) | 2017 | 2016 | 2015 | ||||||||
Retention | 83 | % | 83 | 83 | |||||||
Renewal pure price increases on NPW | 2.9 | 2.6 | 3.0 | ||||||||
Direct new business | $ | 368.2 | 357.6 | 339.6 |
($ in millions) | Non-Catastrophe Property Loss and Loss Expenses | Catastrophe Losses | ||||||||||||||||||||||||||||||
For the year ended December 31, | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Total Impact on Loss and Loss Expense Ratio | (Favorable)/Unfavorable Change in Ratio | ||||||||||||||||||||||||||
2020 | $ | 410.0 | 15.3 | pts | $ | 215.4 | 8.0 | pts | 23.3 | 4.4 | ||||||||||||||||||||||
2019 | 410.5 | 15.8 | 81.0 | 3.1 | 18.9 | (1.3) | ||||||||||||||||||||||||||
2018 | 405.6 | 16.6 | 88.0 | 3.6 | 20.2 | 2.1 |
($ in millions) | Favorable Prior Year Casualty Reserve Development | ||||||||||||||||
For the year ended December 31, | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | (Favorable)/Unfavorable Change in Ratio | ||||||||||||||
2020 | (85.0) | (3.2) | pts | (0.9) | |||||||||||||
2019 | (61.0) | (2.3) | (0.6) | ||||||||||||||
2018 | (41.5) | (1.7) | 0.4 |
(Favorable)/Unfavorable Prior Year Casualty Reserve Development | |||||||||||||||||
($ in millions) | 2020 | 2019 | 2018 | ||||||||||||||
General liability | $ | (35.0) | (5.0) | (9.5) | |||||||||||||
Commercial automobile | 10.0 | 4.0 | 37.5 | ||||||||||||||
Workers compensation | (60.0) | (68.0) | (83.0) | ||||||||||||||
Businessowners' policies | — | — | (3.0) | ||||||||||||||
Total Standard Commercial Lines | (85.0) | (69.0) | (58.0) | ||||||||||||||
Homeowners | — | — | 1.5 | ||||||||||||||
Personal automobile | — | 6.0 | 3.0 | ||||||||||||||
Total Standard Personal Lines | — | 6.0 | 4.5 | ||||||||||||||
E&S | — | 2.0 | 12.0 | ||||||||||||||
Total (favorable) prior year casualty reserve development | $ | (85.0) | (61.0) | (41.5) | |||||||||||||
(Favorable) impact on loss ratio | (3.2) | pts | (2.3) | (1.7) |
2020 vs. 2019 | 2019 vs. 2018 | ||||||||||||||||||||||||||||||||||
($ in thousands) | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||
Insurance Segments Results: | |||||||||||||||||||||||||||||||||||
NPW | $ | 2,230,636 | 2,137,071 | 4 | % | $ | 1,975,683 | 8 | % | ||||||||||||||||||||||||||
NPE | 2,143,184 | 2,049,614 | 5 | 1,912,222 | 7 | ||||||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||||||||
Loss and loss expense incurred | 1,245,627 | 1,187,856 | 5 | 1,141,038 | 4 | ||||||||||||||||||||||||||||||
Net underwriting expenses incurred | 742,014 | 710,648 | 4 | 654,097 | 9 | ||||||||||||||||||||||||||||||
Dividends to policyholders | 3,812 | 5,120 | (26) | 7,983 | (36) | ||||||||||||||||||||||||||||||
Underwriting income | $ | 151,731 | 145,990 | 4 | % | $ | 109,104 | 34 | % | ||||||||||||||||||||||||||
Combined Ratios: | |||||||||||||||||||||||||||||||||||
Loss and loss expense ratio | 58.1 | % | 58.0 | 0.1 | pts | 59.7 | % | (1.7) | pts | ||||||||||||||||||||||||||
Underwriting expense ratio | 34.6 | 34.7 | (0.1) | 34.2 | 0.5 | ||||||||||||||||||||||||||||||
Dividends to policyholders ratio | 0.2 | 0.2 | — | 0.4 | (0.2) | ||||||||||||||||||||||||||||||
Combined ratio | 92.9 | 92.9 | — | 94.3 | (1.4) |
For the Year Ended December 31, | |||||||||||||||||||||||
($ in millions) | 2020 | 2019 | |||||||||||||||||||||
Retention | 85 | % | 83 | ||||||||||||||||||||
Renewal pure price increases on NPW | 4.4 | 3.4 | |||||||||||||||||||||
Direct new business | $ | 421.1 | 411.2 |
($ in millions) | Non-Catastrophe Property Losses | Catastrophe Losses | |||||||||||||||||||||||||||||||||
For the year ended December 31, | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Total Impact on Loss and Loss Expense Ratio | (Favorable)/Unfavorable Year-Over-Year Change | |||||||||||||||||||||||||||||
2020 | $ | 296.2 | 13.8 | pts | $ | 117.8 | 5.5 | pts | 19.3 | 2.9 | |||||||||||||||||||||||||
2019 | 283.6 | 13.8 | 54.2 | 2.6 | 16.4 | (1.3) | |||||||||||||||||||||||||||||
($ in millions) | (Favorable) Prior Year Casualty Reserve Development | (Favorable) Year-Over-Year Change | |||||||||||||||||||||
For the year ended December 31, | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | |||||||||||||||||||||
2020 | $ | (85.0) | (4.0) | pts | (0.6) | ||||||||||||||||||
2019 | (69.0) | (3.4) | (0.4) | ||||||||||||||||||||
($ in millions) | |||||||||||
(Favorable) Prior Year Casualty Reserve Development | Unfavorable/(Favorable) Year-Over-Year Change | ||||||||||
For the year ended December 31, | Losses and Loss Expense Incurred | Impact on Losses and Loss Expense Ratio | |||||||||
2017 | $ | (66.6 | ) | (3.7 | ) | pts | 1.0 | ||||
2016 | (77.5 | ) | (4.7 | ) | 0.6 | ||||||
2015 | (81.0 | ) | (5.3 | ) | (2.1 | ) |
($ in millions) | Non-Catastrophe Property Losses | Catastrophe Losses | |||||||||||||||||
For the year ended December 31, | Losses and Loss Expense Incurred | Impact on Losses and Loss Expense Ratio | Losses and Loss Expense Incurred | Impact on Losses and Loss Expense Ratio | Total Impact on Losses and Loss Expense Ratio | Unfavorable/(Favorable) Year-Over-Year Change | |||||||||||||
2017 | $ | 204.9 | 11.5 | pts | $ | 40.0 | 2.2 | pts | 13.7 | 0.6 | |||||||||
2016 | 182.4 | 11.0 | 35.0 | 2.1 | 13.1 | 0.8 | |||||||||||||
2015 | 154.7 | 10.1 | 34.1 | 2.2 | 12.3 | (3.1 | ) |
General Liability | |||||||||||||||||||||||||||||||||||
($ in thousands) | 2020 | 2019 | 2020 vs. 2019 | 2018 | 2019 vs. 2018 | ||||||||||||||||||||||||||||||
NPW | $ | 716,119 | 699,262 | 2 | % | $ | 639,720 | 9 | % | ||||||||||||||||||||||||||
Direct new business | 122,159 | 119,055 | 3 | 112,683 | 6 | ||||||||||||||||||||||||||||||
Retention | 85 | % | 83 | 2 | pts | 83 | % | — | pts | ||||||||||||||||||||||||||
Renewal pure price increases | 3.9 | 2.8 | 1.1 | 2.6 | 0.2 | ||||||||||||||||||||||||||||||
NPE | $ | 694,019 | 669,895 | 4 | % | $ | 616,187 | 9 | % | ||||||||||||||||||||||||||
Underwriting income | 103,262 | 69,932 | 48 | 70,268 | — | ||||||||||||||||||||||||||||||
Combined ratio | 85.1 | 89.6 | (4.5) | 88.6 | 1.0 | ||||||||||||||||||||||||||||||
% of total standard commercial NPW | 32 | 33 | 32 |
General Liability | ||||||||||||||||||
($ in thousands) | 2017 | 2016 | 2017 vs. 2016 | 2015 | 2016 vs. 2015 | |||||||||||||
NPW | $ | 594,816 | 553,579 | 7 | % | $ | 505,891 | 9 | % | |||||||||
Direct new business | 110,069 | 105,961 | 4 | 99,938 | 6 | |||||||||||||
Retention | 83 | % | 83 | — | pts | 83 | % | — | pts | |||||||||
Renewal pure price increases | 2.6 | 1.8 | 0.8 | 2.7 | (0.9 | ) | ||||||||||||
NPE | $ | 569,217 | 527,859 | 8 | % | $ | 483,291 | 9 | % | |||||||||
Underwriting income | 98,229 | 79,120 | 24 | 86,015 | (8 | ) | ||||||||||||
Combined ratio | 82.7 | 85.0 | (2.3 | ) | 82.2 | 2.8 | ||||||||||||
% of total standard commercial NPW | 32 | 32 | 32 |
($ in millions) | (Favorable) Prior Year Casualty Reserve Development | (Favorable)/Unfavorable Year-Over-Year Change | |||||||||||||||||||||
For the year ended December 31, | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | |||||||||||||||||||||
2020 | $ | (35.0) | (5.0) | pts | (4.3) | ||||||||||||||||||
2019 | (5.0) | (0.7) | 0.8 | ||||||||||||||||||||
Commercial Automobile | |||||||||||||||||||||||||||||||||||
2020 vs. 2019 | 2019 vs. 2018 | ||||||||||||||||||||||||||||||||||
($ in thousands) | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||
NPW | $ | 658,930 | 590,011 | 12 | % | $ | 518,942 | 14 | % | ||||||||||||||||||||||||||
Direct new business | 112,893 | 102,956 | 10 | 94,442 | 9 | ||||||||||||||||||||||||||||||
Retention | 86 | % | 83 | 3 | pts | 83 | % | — | pts | ||||||||||||||||||||||||||
Renewal pure price increases | 8.1 | 7.5 | 0.6 | 7.3 | 0.2 | ||||||||||||||||||||||||||||||
NPE | $ | 615,181 | 554,256 | 11 | % | $ | 493,093 | 12 | % | ||||||||||||||||||||||||||
Underwriting loss | (3,126) | (43,797) | 93 | (77,403) | 43 | ||||||||||||||||||||||||||||||
Combined ratio | 100.5 | 107.9 | (7.4) | 115.7 | (7.8) | ||||||||||||||||||||||||||||||
% of total standard commercial NPW | 30 | 28 | 26 |
($ in millions) | Non-Catastrophe Property Losses | Catastrophe Losses | |||||||||||||||||||||||||||||||||
For the year ended December 31, | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Total Impact on Loss and Loss Expense Ratio | (Favorable) Year-Over-Year Change | |||||||||||||||||||||||||||||
2020 | $ | 92.2 | 15.0 | pts | $ | 3.4 | 0.6 | pts | 15.6 | (3.0) | |||||||||||||||||||||||||
2019 | 100.8 | 18.2 | 2.1 | 0.4 | 18.6 | (0.3) | |||||||||||||||||||||||||||||
($ in millions) | Unfavorable Prior Year Casualty Reserve Development | (Favorable)/ Unfavorable Year-Over-Year Change | |||||||||||||||||||||
For the year ended December 31, | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | |||||||||||||||||||||
2020 | $ | 10.0 | 1.6 | pts | 0.9 | ||||||||||||||||||
2019 | 4.0 | 0.7 | (6.9) | ||||||||||||||||||||
Commercial Automobile | ||||||||||||||||||
2017 vs. 2016 | 2016 vs. 2015 | |||||||||||||||||
($ in thousands) | 2017 | 2016 | 2015 | |||||||||||||||
NPW | $ | 465,621 | 422,013 | 10 | % | $ | 376,064 | 12 | % | |||||||||
Direct new business | 78,869 | 77,255 | 2 | 70,556 | 9 | |||||||||||||
Retention | 84 | % | 84 | — | pts | 83 | % | 1 | pts | |||||||||
Renewal pure price increases | 6.7 | 4.9 | 1.8 | 3.8 | 1.1 | |||||||||||||
NPE | $ | 442,818 | 398,942 | 11 | % | $ | 358,909 | 11 | % | |||||||||
Underwriting loss | (65,267 | ) | (43,163 | ) | (51 | ) | (7,794 | ) | (454 | ) | ||||||||
Combined ratio | 114.7 | 110.8 | 3.9 | 102.2 | 8.6 | |||||||||||||
% of total standard commercial NPW | 25 | 24 | 24 |
Workers Compensation | |||||||||||||||||||||||||||||||||||
2020 vs. 2019 | 2019 vs. 2018 | ||||||||||||||||||||||||||||||||||
($ in thousands) | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||
NPW | $ | 270,168 | 309,322 | (13) | % | $ | 316,647 | (2) | % | ||||||||||||||||||||||||||
Direct new business | 51,078 | 60,139 | (15) | 60,089 | — | ||||||||||||||||||||||||||||||
Retention | 84 | % | 84 | — | pts | 84 | % | — | pts | ||||||||||||||||||||||||||
Renewal pure price decreases | (2.0) | (2.8) | 0.8 | (0.2) | (2.6) | ||||||||||||||||||||||||||||||
NPE | $ | 278,062 | 311,370 | (11) | % | $ | 317,616 | (2) | % | ||||||||||||||||||||||||||
Underwriting income | 70,897 | 80,630 | (12) | 94,395 | (15) | ||||||||||||||||||||||||||||||
Combined ratio | 74.5 | 74.1 | 0.4 | 70.3 | 3.8 | ||||||||||||||||||||||||||||||
% of total standard commercial NPW | 12 | 14 | 16 |
($ in millions) | |||||||||||||||||||||||
(Favorable) Prior Year Casualty Reserve Development | Unfavorable/(Favorable) Year-Over-Year Change | ||||||||||||||||||||||
For the year ended December 31, | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | |||||||||||||||||||||
2020 | $ | (60.0) | (21.6) | pts | 0.2 | ||||||||||||||||||
2019 | (68.0) | (21.8) | 4.3 | ||||||||||||||||||||
Commercial Property | |||||||||||||||||||||||||||||||||||
2020 vs. 2019 | 2019 vs. 2018 | ||||||||||||||||||||||||||||||||||
($ in thousands) | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||
NPW | $ | 413,194 | 373,809 | 11 | % | $ | 342,027 | 9 | % | ||||||||||||||||||||||||||
Direct new business | 94,697 | 88,527 | 7 | 76,391 | 16 | ||||||||||||||||||||||||||||||
Retention | 84 | % | 82 | 2 | pts | 82 | % | — | pts | ||||||||||||||||||||||||||
Renewal pure price increases | 4.6 | 3.3 | 1.3 | 3.1 | 0.2 | ||||||||||||||||||||||||||||||
NPE | $ | 388,120 | 353,834 | 10 | % | $ | 329,660 | 7 | % | ||||||||||||||||||||||||||
Underwriting income (loss) | (21,296) | 21,639 | (198) | (3,211) | 774 | ||||||||||||||||||||||||||||||
Combined ratio | 105.5 | 93.9 | 11.6 | 101.0 | (7.1) | ||||||||||||||||||||||||||||||
% of total standard commercial NPW | 19 | 17 | 17 |
Workers Compensation | ||||||||||||||||||
2017 vs. 2016 | 2016 vs. 2015 | |||||||||||||||||
($ in thousands) | 2017 | 2016 | 2015 | |||||||||||||||
NPW | $ | 323,263 | 319,807 | 1 | % | $ | 299,686 | 7 | % | |||||||||
Direct new business | 66,616 | 67,102 | (1 | ) | 68,971 | (3 | ) | |||||||||||
Retention | 84 | % | 84 | — | pts | 83 | % | 1 | pts | |||||||||
Renewal pure price increases | — | 1.2 | (1.2 | ) | 2.6 | (1.4 | ) | |||||||||||
NPE | $ | 317,982 | 308,233 | 3 | % | $ | 290,075 | 6 | % | |||||||||
Underwriting income | 61,693 | 56,118 | 10 | 33,399 | 68 | |||||||||||||
Combined ratio | 80.6 | 81.8 | (1.2 | ) | 88.5 | (6.7 | ) | |||||||||||
% of total standard commercial NPW | 17 | 18 | 19 |
($ in millions) | |||||||||||
(Favorable) Prior Year Casualty Reserve Development | Unfavorable/(Favorable) Year-Over-Year Change | ||||||||||
For the year ended December 31, | Losses and Loss Expense Incurred | Impact on Losses and Loss Expense Ratio | |||||||||
2017 | $ | (52.3 | ) | (16.4 | ) | pts | 1.8 | ||||
2016 | (56.0 | ) | (18.2 | ) | (5.4 | ) | |||||
2015 | (37.0 | ) | (12.8 | ) | 12.8 |
Commercial Property | ||||||||||||||||||
2017 vs. 2016 | 2016 vs. 2015 | |||||||||||||||||
($ in thousands) | 2017 | 2016 | 2015 | |||||||||||||||
NPW | $ | 322,343 | 308,140 | 5 | % | $ | 282,731 | 9 | % | |||||||||
Direct new business | 73,951 | 74,901 | (1 | ) | 72,118 | 4 | ||||||||||||
Retention | 82 | % | 82 | — | pts | 82 | % | — | pts | |||||||||
Renewal pure price increases | 1.7 | 2.4 | (0.7 | ) | 2.8 | (0.4 | ) | |||||||||||
NPE | $ | 311,932 | 293,438 | 6 | % | $ | 269,022 | 9 | % | |||||||||
Underwriting income | 31,976 | 42,270 | (24 | ) | 47,674 | (11 | ) | |||||||||||
Combined ratio | 89.7 | 85.6 | 4.1 | 82.3 | 3.3 | |||||||||||||
% of total standard commercial NPW | 17 | 18 | 18 |
($ in millions) | Non-Catastrophe Property Losses | Catastrophe Losses | (Favorable)/Unfavorable Year-Over-Year Change | ||||||||||||||||||||||||||||||||
For the year ended December 31, | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Total Impact on Loss and Loss Expense Ratio | ||||||||||||||||||||||||||||||
2020 | $ | 168.6 | 43.4 | pts | $ | 90.2 | 23.3 | pts | 66.7 | 11.7 | |||||||||||||||||||||||||
2019 | 149.7 | 42.3 | 44.9 | 12.7 | 55.0 | (7.5) | |||||||||||||||||||||||||||||
($ in millions) | Non-Catastrophe Property Losses | Catastrophe Losses | Unfavorable/(Favorable) Year-Over-Year Change | ||||||||||||||
For the year ended December 31, | Losses and Loss Expense Incurred | Impact on Losses and Loss Expense Ratio | Losses and Loss Expense Incurred | Impact on Losses and Loss Expense Ratio | Total Impact on Losses and Loss Expense Ratio | ||||||||||||
2017 | $ | 109.5 | 35.1 | pts | $ | 34.2 | 11.0 | pts | 46.1 | 5.3 | |||||||
2016 | 95.9 | 32.7 | 23.7 | 8.1 | 40.8 | 2.1 | |||||||||||
2015 | 78.4 | 29.1 | 25.8 | 9.6 | 38.7 | (16.3 | ) |
2020 vs. 2019 | 2019 vs. 2018 | ||||||||||||||||||||||||||||||||||
($ in thousands) | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||
Insurance Segments Results: | |||||||||||||||||||||||||||||||||||
NPW | $ | 295,166 | 304,592 | (3) | % | $ | 309,277 | (2) | % | ||||||||||||||||||||||||||
NPE | 299,140 | 307,739 | (3) | 304,441 | 1 | ||||||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||||||||
Loss and loss expense incurred | 233,260 | 211,300 | 10 | 206,752 | 2 | ||||||||||||||||||||||||||||||
Net underwriting expenses incurred | 81,388 | 88,179 | (8) | 84,925 | 4 | ||||||||||||||||||||||||||||||
Underwriting income | $ | (15,508) | 8,260 | (288) | % | $ | 12,764 | (35) | % | ||||||||||||||||||||||||||
Combined Ratios: | |||||||||||||||||||||||||||||||||||
Loss and loss expense ratio | 78.0 | % | 68.6 | 9.4 | pts | 67.9 | % | 0.7 | pts | ||||||||||||||||||||||||||
Underwriting expense ratio | 27.2 | 28.7 | (1.5) | 27.9 | 0.8 | ||||||||||||||||||||||||||||||
Combined ratio | 105.2 | 97.3 | 7.9 | 95.8 | 1.5 |
2017 vs. 2016 | 2016 vs. 2015 | |||||||||||||||||
($ in thousands) | 2017 | 2016 | 2015 | |||||||||||||||
Insurance Segments Results: | ||||||||||||||||||
NPW | $ | 296,775 | 281,822 | 5 | % | $ | 283,926 | (1 | ) | % | ||||||||
NPE | 289,701 | 280,607 | 3 | 288,134 | (3 | ) | ||||||||||||
Less: | ||||||||||||||||||
Loss and loss expense incurred | 189,294 | 177,749 | 6 | 200,237 | (11 | ) | ||||||||||||
Net underwriting expenses incurred | 89,303 | 90,439 | (1 | ) | 86,561 | 5 | ||||||||||||
Underwriting income | $ | 11,104 | 12,419 | (11 | ) | % | $ | 1,336 | 830 | % | ||||||||
Combined Ratios: | ||||||||||||||||||
Loss and loss expense ratio | 65.4 | % | 63.3 | 2.1 | pts | 69.5 | % | (6.2 | ) | pts | ||||||||
Underwriting expense ratio | 30.8 | 32.3 | (1.5 | ) | 30.0 | 2.3 | ||||||||||||
Combined ratio | 96.2 | 95.6 | 0.6 | 99.5 | (3.9 | ) |
($ in millions) | 2020 | 2019 | |||||||||||||||||||||
Retention | 83 | % | 83 | ||||||||||||||||||||
Renewal pure price increases on NPW | 2.5 | 5.0 | |||||||||||||||||||||
Direct new business premiums | $ | 44.7 | 40.7 |
($ in millions) | 2017 | 2016 | 2015 | ||||||||
Retention | 84 | % | 82 | 82 | |||||||
Renewal pure price increases on NPW | 3.0 | 4.8 | 5.8 | ||||||||
Direct new business premiums | $ | 50.9 | 39.7 | 32.9 |
($ in millions) | Non-Catastrophe Property Losses | Catastrophe Losses | |||||||||||||||||||||||||||||||||
For the year ended December 31, | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Total Impact on Loss and Loss Expense Ratio | Unfavorable Year-Over-Year Change | |||||||||||||||||||||||||||||
2020 | $ | 86.0 | 28.7 | pts | $ | 77.5 | 25.9 | pts | 54.6 | 13.8 | |||||||||||||||||||||||||
2019 | 104.7 | 34.0 | 21.1 | 6.8 | 40.8 | 0.5 | |||||||||||||||||||||||||||||
($ in millions) | |||||||||||||||||||||||
Unfavorable Prior Year Casualty Reserve Development | Unfavorable/(Favorable) Year-Over-Year Change | ||||||||||||||||||||||
For the year ended December 31, | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | |||||||||||||||||||||
2020 | $ | — | — | pts | (1.9) | ||||||||||||||||||
2019 | 6.0 | 1.9 | 0.4 | ||||||||||||||||||||
($ in thousands) | 2020 | 2019 | 2020 vs. 2019 | 2018 | 2019 vs. 2018 | ||||||||||||||||||||||||||||||
Insurance Segments Results: | |||||||||||||||||||||||||||||||||||
NPW | $ | 247,290 | 237,761 | 4 | % | $ | 229,326 | 4 | % | ||||||||||||||||||||||||||
NPE | 239,490 | 239,818 | — | 219,566 | 9 | ||||||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||||||||
Loss and loss expense incurred | 156,936 | 152,335 | 3 | 150,344 | 1 | ||||||||||||||||||||||||||||||
Net underwriting expenses incurred | 82,428 | 77,740 | 6 | 69,917 | 11 | ||||||||||||||||||||||||||||||
Underwriting income (loss) | $ | 126 | 9,743 | (99) | % | $ | (695) | 1,502 | % | ||||||||||||||||||||||||||
Combined Ratios: | |||||||||||||||||||||||||||||||||||
Loss and loss expense ratio | 65.5 | % | 63.5 | 2.0 | pts | 68.5 | % | (5.0) | pts | ||||||||||||||||||||||||||
Underwriting expense ratio | 34.4 | 32.4 | 2.0 | 31.8 | 0.6 | ||||||||||||||||||||||||||||||
Combined ratio | 99.9 | 95.9 | 4.0 | 100.3 | (4.4) |
($ in millions) | 2020 | 2019 | |||||||||||||||
Overall renewal price increases | 6.2 | % | 6.0 | ||||||||||||||
Direct new business premiums | $ | 113.9 | 96.8 |
($ in millions) | Non-Catastrophe Property Losses | Catastrophe Losses | |||||||||||||||||||||||||||||||||
For the year ended December 31, | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Total Impact on Loss and Loss Expense Ratio | (Favorable)/Unfavorable Year-Over-Year Change | |||||||||||||||||||||||||||||
2020 | $ | 27.9 | 11.6 | pts | $ | 20.0 | 8.4 | pts | 20.0 | 8.3 | |||||||||||||||||||||||||
2019 | 22.2 | 9.3 | 5.7 | 2.4 | 11.7 | (3.1) | |||||||||||||||||||||||||||||
($ in millions) | Non-Catastrophe Property Losses | Catastrophe Losses | |||||||||||||||||
For the year ended December 31, | Losses and Loss Expense Incurred | Impact on Losses and Loss Expense Ratio | Losses and Loss Expense Incurred | Impact on Losses and Loss Expense Ratio | Total Impact on Losses and Loss Expense Ratio | (Favorable)/Unfavorable Year-Over-Year Change | |||||||||||||
2017 | $ | 76.2 | 26.3 | pts | $ | 16.1 | 5.6 | pts | 31.9 | — | |||||||||
2016 | 71.2 | 25.4 | 18.2 | 6.5 | 31.9 | (5.9 | ) | ||||||||||||
2015 | 87.2 | 30.3 | 21.7 | 7.5 | 37.8 | 0.9 |
($ in millions) | Unfavorable Prior Year Casualty Reserve Development | (Favorable)/Unfavorable Year-Over-Year Change | |||||||||||||||||||||
For the year ended December 31, | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | |||||||||||||||||||||
2020 | $ | — | — | pts | (0.8) | ||||||||||||||||||
2019 | 2.0 | 0.8 | (4.7) | ||||||||||||||||||||
($ in millions) | |||||||||||
(Favorable)/Unfavorable Prior Year Casualty Reserve Development | Unfavorable Year-Over-Year Change | ||||||||||
For the year ended December 31, | Losses and Loss Expense Incurred | Impact on Losses and Loss Expense Ratio | |||||||||
2017 | $ | 8.0 | 2.8 | pts | 1.9 | ||||||
2016 | 2.5 | 0.9 | 1.6 | ||||||||
2015 | (2.0 | ) | (0.7 | ) | 2.2 |
($ in thousands) | 2017 | 2016 | 2017 vs. 2016 | 2015 | 2016 vs. 2015 | |||||||||||||
Insurance Segments Results: | ||||||||||||||||||
NPW | $ | 215,131 | 209,684 | 3 | % | $ | 189,013 | 11 | % | |||||||||
NPE | 212,827 | 203,482 | 5 | 172,333 | 18 | |||||||||||||
Less: | ||||||||||||||||||
Loss and loss expense incurred | 147,630 | 143,542 | 3 | 128,731 | 12 | |||||||||||||
Net underwriting expenses incurred | 71,479 | 66,861 | 7 | 60,405 | 11 | |||||||||||||
Underwriting loss | $ | (6,282 | ) | (6,921 | ) | 9 | % | $ | (16,803 | ) | 59 | % | ||||||
Combined Ratios: | ||||||||||||||||||
Loss and loss expense ratio | 69.4 | % | 70.5 | (1.1 | ) | pts | 74.7 | % | (4.2 | ) | pts | |||||||
Underwriting expense ratio | 33.6 | 32.9 | 0.7 | 35.1 | (2.2 | ) | ||||||||||||
Combined ratio | 103.0 | 103.4 | (0.4 | ) | 109.8 | (6.4 | ) |
($ in millions) | 2017 | 2016 | 2015 | ||||||
Overall new/renewal price increases | 5.0 | % | 4.9 | 2.9 | |||||
Direct new business premiums | $ | 90.5 | 100.0 | 99.6 |
($ in millions) | Non-Catastrophe Property Losses | Catastrophe Losses | |||||||||||||||||
For the year ended December 31, | Losses and Loss Expense Incurred | Impact on Losses and Loss Expense Ratio | Losses and Loss Expense Incurred | Impact on Losses and Loss Expense Ratio | Total Impact on Losses and Loss Expense Ratio | Unfavorable Year-Over-Year Change | |||||||||||||
2017 | $ | 22.6 | 10.6 | pts | $ | 11.2 | 5.3 | pts | 15.9 | 0.1 | |||||||||
2016 | 25.6 | 12.6 | 6.5 | 3.2 | 15.8 | 0.2 | |||||||||||||
2015 | 23.6 | 13.7 | 3.2 | 1.9 | 15.6 | 1.5 |
($ in millions) | Unfavorable Prior Year Casualty Reserve Development | Unfavorable/(Favorable) Year-Over-Year Change | |||||||||
For the year ended December 31, | Losses and Loss Expense Incurred | Impact on Losses and Loss Expense Ratio | |||||||||
2017 | $ | 10.0 | 4.7 | pts | 1.8 | ||||||
2016 | 6.0 | 2.9 | (6.4 | ) | |||||||
2015 | 16.0 | 9.3 | 5.2 |
Insurance Subsidiary | Pooling Percentage | |||||||
Selective Insurance Company of America ("SICA") | 32.0% | |||||||
Selective Way Insurance Company ("SWIC") | 21.0% | |||||||
Selective Insurance Company of South Carolina ("SICSC") | 9.0% | |||||||
Selective Insurance Company of the Southeast ("SICSE") | 7.0% | |||||||
Selective Insurance Company of New York ("SICNY") | 7.0% | |||||||
Selective Casualty Insurance Company ("SCIC") | 7.0% | |||||||
Selective Auto Insurance Company of New Jersey ("SAICNJ") | 6.0% | |||||||
Mesa Underwriters Specialty Insurance Company ("MUSIC") | 5.0% | |||||||
Selective Insurance Company of New England ("SICNE") | 3.0% | |||||||
Selective Fire and Casualty Insurance Company ("SFCIC") | 3.0% |
($ in millions) | Actual Gross Loss | Net Loss2 | Accident Year | |||||||||||||||||
Hurricane Name | ||||||||||||||||||||
Superstorm Sandy | $125.5 | 45.6 | 2012 | |||||||||||||||||
Hurricane Irene | 44.8 | 40.2 | 2011 | |||||||||||||||||
Hurricane Hugo | 26.4 | 3.0 | 1989 | |||||||||||||||||
Hurricane Isabel | 25.1 | 15.7 | 2003 | |||||||||||||||||
Tropical Storm Isaias | 19.1 1 | 18.6 | 2020 |
($ in millions) | Actual Gross Loss | Net Loss2 | Accident Year | |||
Hurricane Name | ||||||
Superstorm Sandy | 125.5 1 | 45.6 | 2012 | |||
Hurricane Irene | 44.9 | 40.2 | 2011 | |||
Hurricane Hugo | 26.4 | 3.0 | 1989 | |||
Hurricane Isabel | 25.1 | 15.7 | 2003 | |||
Hurricane Floyd | 14.5 | 14.5 | 1999 |
Occurrence Exceedence Probability | Four-Model Blend | Occurrence Exceedence Probability | Modeled Losses | ||||||||||||||||||||||||||
($ in thousands) | Gross Losses1 | Net Losses2 | Net Losses as a Percent of Equity3 | ($ in thousands) | Gross Losses1 | Net Losses2 | Net Losses as a Percent of GAAP Equity3 | ||||||||||||||||||||||
4.0% (1 in 25 year event) | $139,419 | 36,229 | 2% | 4.0% (1 in 25 year event) | $182,916 | 29,923 | 1 | % | |||||||||||||||||||||
2.0% (1 in 50 year event) | 251,195 | 40,431 | 2 | 2.0% (1 in 50 year event) | 304,764 | 34,554 | 1 | ||||||||||||||||||||||
1.0% (1 in 100 year event) | 436,963 | 47,750 | 3 | 1.0% (1 in 100 year event) | 489,387 | 39,206 | 1 | ||||||||||||||||||||||
0.67% (1 in 150 year event) | 586,317 | 57,892 | 3 | 0.67% (1 in 150 year event) | 682,261 | 60,220 | 2 | ||||||||||||||||||||||
0.5% (1 in 200 year event) | 710,461 | 62,863 | 4 | 0.5% (1 in 200 year event) | 778,401 | 62,062 | 2 | ||||||||||||||||||||||
0.4% (1 in 250 year event) | 791,029 | 82,601 | 5 | 0.4% (1 in 250 year event) | 899,633 | 107,070 | 4 | ||||||||||||||||||||||
0.2% (1 in 500 year event) | 1,170,133 | 374,353 | 22 | 0.2% (1 in 500 year event) | 1,290,100 | 414,519 | 15 |
PROPERTY REINSURANCE ON INSURANCE PRODUCTS | ||||||||||||||
Treaty Name | Reinsurance Coverage | Terrorism Coverage | ||||||||||||
Property Catastrophe Excess of Loss (covers all insurance operations) | $ | All nuclear, biological, chemical, and radioactive ("NBCR") losses are excluded regardless of whether or not they are certified under TRIPRA. Non-NBCR losses are covered to the same extent as non-terrorism losses. Please see Item 1A. “Risk Factors.” of this Form 10-K for discussion regarding TRIPRA. | ||||||||||||
- $100 million; | ||||||||||||||
- $225 million; | ||||||||||||||
- $475 million; and | ||||||||||||||
- 90% of losses in excess of $475 million up to | ||||||||||||||
- The treaty provides | ||||||||||||||
In addition, our $35 million above $5 million retention treaty that responds on per occurrence basis covers 85% of losses outside of our standard lines | ||||||||||||||
Property Excess of Loss (covers all insurance operations) | $58 million above $2 million retention covering 100% in three layers. Losses other than TRIPRA certified losses are subject to the following reinstatements and annual aggregate limits: | All NBCR losses are excluded regardless of whether or not they are certified under TRIPRA. For non-NBCR losses, the treaty distinguishes between acts committed on behalf of foreign persons or foreign interests ("Foreign Terrorism") and those that are not. The treaty provides annual aggregate limits for Foreign Terrorism (other than NBCR) acts of $24 million for the first layer and $60 million for the second layer and for the third layer | ||||||||||||
- $8 million in excess of $2 million layer provides unlimited reinstatements; | ||||||||||||||
- $30 million in excess of $10 million layer provides three reinstatements, $120 million in aggregate limits; and | ||||||||||||||
- $20 million in excess of $40 million layer provides limits. | ||||||||||||||
Flood | 100% reinsurance by the federal government’s | None |
CASUALTY REINSURANCE ON INSURANCE PRODUCTS | ||||||||||||||
Treaty Name | Reinsurance Coverage | Terrorism Coverage | ||||||||||||
Casualty Excess of Loss (covers all insurance operations) | There are six layers covering 100% of $88 million in excess of $2 million. Losses other than terrorism losses are subject to the | All NBCR losses are excluded. All other losses stemming from the acts of terrorism are subject to the | ||||||||||||
- $3 million in excess of $2 million layer provides 28 reinstatements, $87 million annual aggregate limit; | - $3 million in excess of $2 million layer with $15 million net annual terrorism aggregate limit; | |||||||||||||
- $7 million in excess of $5 million layer provides six reinstatements, $49 million annual aggregate limit; | - $7 million in excess of $5 million layer with $28 million net annual terrorism aggregate limit; | |||||||||||||
- $9 million in excess of $12 million layer provides three reinstatements; $36 million annual aggregate limit; | - $9 million in excess of $12 million layer with $27 million net annual terrorism aggregate limit; | |||||||||||||
- $9 million in excess of $21 million layer provides one reinstatement, $18 million annual aggregate limit; | - $9 million in excess of $21 million layer with $18 million net annual terrorism aggregate limit; | |||||||||||||
- $20 million in excess of $30 million layer provides one reinstatement, $40 million annual aggregate limit; and | - $20 million in excess of $30 million layer with $40 million net annual terrorism aggregate limit; and | |||||||||||||
- $40 million in excess of $50 million layer provides one reinstatement, $80 million annual aggregate limit. | - $40 million in excess of $50 million layer with $80 million net annual terrorism aggregate limit. | |||||||||||||
($ in thousands) | 2017 | 2016 | Change | |||||||
Total invested assets | $ | 5,685,179 | 5,364,947 | 6 | % | |||||
Invested assets per dollar of stockholders' equity | 3.32 | 3.50 | (5 | ) | ||||||
Unrealized gain – before tax | 124,679 | 64,803 | 92 | |||||||
Unrealized gain – after tax | 80,575 | 42,122 | 91 |
As of December 31, | 2017 | 2016 | ||
Fixed income securities: | ||||
U.S. government obligations | 1 | % | 2 | |
Foreign government obligations | — | 1 | ||
State and municipal obligations | 29 | 27 | ||
Corporate securities1 | 28 | 37 | ||
Mortgage-backed securities (“MBS”) | 20 | 15 | ||
Collateralized loan obligations ("CLO") and other asset-backed securities ("ABS") | 14 | 10 | ||
Total fixed income securities | 92 | 92 | ||
Equity securities: | ||||
Common stock | 3 | 2 | ||
Preferred stock1 | — | — | ||
Total equity securities | 3 | 2 | ||
Short-term investments | 3 | 4 | ||
Other investments | 2 | 2 | ||
Total | 100 | % | 100 |
($ in thousands) | 2020 | 2019 | Change | |||||||||||||||||
Total invested assets | $ | 7,505,599 | 6,688,654 | 12 | % | |||||||||||||||
Invested assets per dollar of common stockholders' equity | 2.96 | 3.05 | (3) | |||||||||||||||||
Unrealized gain – before tax1 | 395,207 | 216,564 | 82 | |||||||||||||||||
Unrealized gain – after tax1 | 312,214 | 171,085 | 82 |
Contractual Maturities | ||||||||||
($ in thousands) | ||||||||||
Available-for-sale ("AFS") fixed income securities: | Amortized Cost | Fair Value | Unrealized Loss | |||||||
One year or less | $ | 66,353 | 66,217 | (136 | ) | |||||
Due after one year through five years | 353,822 | 351,951 | (1,871 | ) | ||||||
Due after five years through ten years | 469,452 | 466,530 | (2,922 | ) | ||||||
Due after ten years | 20,686 | 20,554 | (132 | ) | ||||||
Total | $ | 910,313 | 905,252 | (5,061 | ) |
($ in thousands) | 2020 | 2019 | 2020 vs. 2019 | 2018 | 2019 vs. 2018 | ||||||||||||||||||||||||||||||
Fixed income securities | $ | 203,926 | 203,255 | — | % | 178,104 | 14 | % | |||||||||||||||||||||||||||
Equity securities | 9,286 | 6,996 | 33 | 7,764 | (10) | ||||||||||||||||||||||||||||||
CMLs | 844 | — | n/m | — | n/m | ||||||||||||||||||||||||||||||
Short-term investments | 1,821 | 6,653 | (73) | 3,472 | 92 | ||||||||||||||||||||||||||||||
Other investments | 26,922 | 18,778 | 43 | 17,799 | 6 | ||||||||||||||||||||||||||||||
Investment expenses | (15,692) | (13,139) | (19) | (11,803) | (11) | ||||||||||||||||||||||||||||||
Net investment income earned – before tax | 227,107 | 222,543 | 2 | 195,336 | 14 | ||||||||||||||||||||||||||||||
Net investment income tax expense | 42,495 | 41,382 | 3 | 34,855 | 19 | ||||||||||||||||||||||||||||||
Net investment income earned – after tax | $ | 184,612 | 181,161 | 2 | 160,481 | 13 | |||||||||||||||||||||||||||||
Effective tax rate | 18.7 | % | 18.6 | 0.1 | pts | 17.8 | 0.8 | pts | |||||||||||||||||||||||||||
Annual after-tax yield on fixed income securities | 2.6 | 2.9 | (0.3) | 2.8 | 0.1 | ||||||||||||||||||||||||||||||
Annual after-tax yield on investment portfolio | 2.6 | 2.9 | (0.3) | 2.8 | 0.1 |
($ in thousands) | 2017 | 2016 | 2015 | |||||||
Fixed income securities | $ | 153,230 | 129,306 | 123,230 | ||||||
Equity securities | 6,442 | 7,368 | 9,161 | |||||||
Short-term investments | 1,526 | 686 | 112 | |||||||
Other investments | 12,871 | 2,940 | (1,890 | ) | ||||||
Investment expenses | (12,187 | ) | (9,546 | ) | (9,297 | ) | ||||
Net investment income earned – before tax | 161,882 | 130,754 | 121,316 | |||||||
Net investment income tax expense | 43,362 | 32,349 | 27,480 | |||||||
Net investment income earned – after tax | $ | 118,520 | 98,405 | 93,836 | ||||||
Effective tax rate | 26.8 | % | 24.7 | 22.7 | ||||||
Annual after-tax yield on fixed income securities | 2.2 | 2.0 | 2.1 | |||||||
Annual after-tax yield on investment portfolio | 2.1 | 1.9 | 1.9 |
($ in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||
Net realized gains (losses) on disposals | $ | 9,148 | 26,715 | (18,975) | ||||||||||||||||
Net unrealized gains (losses) on equity securities | 7,939 | (8,649) | (29,369) | |||||||||||||||||
Net credit loss on fixed maturities, AFS | (5,042) | |||||||||||||||||||
Net credit benefit on fixed maturities, HTM | 4 | |||||||||||||||||||
Losses on securities for which we have the intent to sell | (16,266) | |||||||||||||||||||
Net OTTI losses recognized earnings | (3,644) | (6,579) | ||||||||||||||||||
Total net realized and unrealized investment (losses) gains | $ | (4,217) | 14,422 | (54,923) |
($ in thousands) | 2017 | 2016 | 2015 | |||||||
Net realized gains, excluding OTTI | $ | 11,204 | 3,562 | 31,537 | ||||||
OTTI | (4,845 | ) | (8,499 | ) | (18,366 | ) | ||||
Total net realized gains (losses) | $ | 6,359 | (4,937 | ) | 13,171 |
($ in millions) | 2020 | 2019 | 2018 | |||||||||||||||||
Federal income tax expense | $ | 56.6 | 64.8 | 32.8 | ||||||||||||||||
Effective tax rate | 18.7 | % | 19.3 | 15.5 | ||||||||||||||||
($ in millions) | 2017 | 2016 | 2015 | |||||||
Federal income tax expense | $ | 93.1 | 61.5 | 66.8 | ||||||
Exclude: Tax reform impact | 20.2 | — | — | |||||||
Federal income tax expense, excluding tax reform impact | 72.9 | 61.5 | 66.8 | |||||||
Effective tax rate | 35.6 | % | 27.9 | 28.7 | ||||||
Effective tax rate without tax reform impact | 27.8 | 27.9 | 28.7 |
Branch | Insurance Subsidiary Member | ||||||||||||||||||||||||||||
Federal Home Loan Bank of Indianapolis ("FHLBI") | SICSC1 | ||||||||||||||||||||||||||||
SICSE1 | |||||||||||||||||||||||||||||
Federal Home Loan Bank of New York ("FHLBNY") | SICA | ||||||||||||||||||||||||||||
SICNY | |||||||||||||||||||||||||||||
($ in millions) | Admitted Assets | Borrowing Limitation | Amount Borrowed | Remaining Capacity | Additional FHLB Stock Requirements | ||||||||||||||||||||||||
As of December 31, 2020 | |||||||||||||||||||||||||||||
SICSC | $ | 763.2 | $ | 76.3 | 32.0 | 44.3 | 0.3 | ||||||||||||||||||||||
SICSE | 608.0 | 60.8 | 28.0 | 32.8 | 0.2 | ||||||||||||||||||||||||
SICA | 2,840.3 | 284.0 | 50.0 | 234.0 | 10.5 | ||||||||||||||||||||||||
SICNY | 527.8 | 26.4 | — | 26.4 | 1.2 | ||||||||||||||||||||||||
Total | $ | 447.5 | 110.0 | 337.5 | 12.2 |
($ in millions) | Admitted Assets | Borrowing Limitation | Amount Borrowed | Remaining Capacity | Additional Stock Requirements | |||||||||||
As of December 31, 2017 | ||||||||||||||||
SICSC | $ | 648.0 | $ | 64.8 | 32.0 | 32.8 | 1.4 | |||||||||
SICSE | 507.5 | 50.8 | 28.0 | 22.8 | 1.0 | |||||||||||
SICA | 2,434.9 | 243.5 | 50.0 | 193.5 | 8.7 | |||||||||||
SICNY | 442.5 | 22.1 | — | 22.1 | 1.0 | |||||||||||
Total | $ | 381.2 | 110.0 | 271.2 | 12.1 |
($ in millions) | Admitted Assets as of December 31, 2020 | Borrowing Limitation | Amount Borrowed | Remaining Capacity | |||||||||||||||||||
As of December 31, 2020 | |||||||||||||||||||||||
SICSC | $ | 763.2 | $ | 76.3 | 24.0 | 52.3 | |||||||||||||||||
SICSE | 608.0 | 60.8 | 16.0 | 44.8 | |||||||||||||||||||
Total | $ | 137.1 | 40.0 | 97.1 |
($ in millions) | Admitted Assets as of December 31, 2017 | Borrowing Limitation | Amount Borrowed | Remaining Capacity | |||||||||
As of December 31, 2017 | |||||||||||||
SICSC | $ | 648.0 | $ | 64.8 | 27.0 | 37.8 | |||||||
SICSE | 507.5 | 50.8 | 18.0 | 32.8 | |||||||||
Total | $ | 115.6 | 45.0 | 70.6 |
Contractual Obligations | Payment Due by Period | Contractual Obligations | Payment Due by Period | |||||||||||||||||||||||||||||||||||||||||||||
Less than 1 year | 1-3 years | 3-5 years | More than 5 years | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | |||||||||||||||||||||||||||||||||||||||||
($ in millions) | Total | ($ in millions) | Total | |||||||||||||||||||||||||||||||||||||||||||||
Operating leases | $ | 31.9 | 10.0 | 13.5 | 5.8 | 2.6 | Operating leases | $ | 45.1 | 8.4 | 12.2 | 8.3 | 16.2 | |||||||||||||||||||||||||||||||||||
Capital leases | 2.4 | 2.3 | 0.1 | — | — | |||||||||||||||||||||||||||||||||||||||||||
Finance leases | Finance leases | 0.5 | 0.3 | 0.2 | — | — | ||||||||||||||||||||||||||||||||||||||||||
Notes payable | 445.0 | — | — | 50.0 | 395.0 | Notes payable | 560.0 | 50.0 | — | — | 510.0 | |||||||||||||||||||||||||||||||||||||
Interest on debt obligations | 476.6 | 23.8 | 47.7 | 46.6 | 358.5 | Interest on debt obligations | 622.4 | 28.8 | 56.6 | 56.6 | 480.4 | |||||||||||||||||||||||||||||||||||||
Subtotal | 955.9 | 36.1 | 61.3 | 102.4 | 756.1 | Subtotal | 1,228.0 | 87.5 | 69.0 | 64.9 | 1,006.6 | |||||||||||||||||||||||||||||||||||||
Gross losses and loss expense payments | 3,771.2 | 1,005.7 | 1,155.3 | 568.4 | 1,041.8 | |||||||||||||||||||||||||||||||||||||||||||
Ceded losses and loss expense payments | 585.8 | 174.0 | 134.5 | 71.4 | 205.9 | |||||||||||||||||||||||||||||||||||||||||||
Net losses and loss expense payments | 3,185.4 | 831.7 | 1,020.8 | 497.0 | 835.9 | |||||||||||||||||||||||||||||||||||||||||||
Gross loss and loss expense payments | Gross loss and loss expense payments | 4,260.4 | 1,171.2 | 1,357.3 | 644.7 | 1,087.2 | ||||||||||||||||||||||||||||||||||||||||||
Ceded loss and loss expense payments | Ceded loss and loss expense payments | 554.2 | 141.2 | 134.4 | 72.4 | 206.2 | ||||||||||||||||||||||||||||||||||||||||||
Net loss and loss expense payments | Net loss and loss expense payments | 3,706.2 | 1,030.0 | 1,222.9 | 572.3 | 881.0 | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | 4,141.3 | 867.8 | 1,082.1 | 599.4 | 1,592.0 | Total | $ | 4,934.2 | 1,117.5 | 1,291.9 | 637.2 | 1,887.6 |
($ in millions) | Amount of Obligation | Year of Expiration of Obligation | ||||||||||||
Alternative and other investments | $ | 215.7 | 2036 | |||||||||||
Non-publicly traded collateralized loan obligations in our fixed income securities portfolio | 37.7 | 2030 | ||||||||||||
Non-publicly traded common stock within our equity portfolio | 2.0 | 2021 | ||||||||||||
Commercial mortgage loans | 4.4 | Less than 1 year | ||||||||||||
Total | $ | 259.8 |
2020 Interest Rate Shift in Basis Points | |||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | -200 | -100 | — | 100 | 200 | |||||||||||||||||||||||||||||||||||||||||||||
2017 Interest Rate Shift in Basis Points | |||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | -200 | -100 | 0 | 100 | 200 | ||||||||||||||||||||||||||||||||||||||||||||||
HTM fixed income securities | |||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of HTM fixed income securities portfolio | $ | 46,202 | 45,231 | 44,100 | 43,021 | 41,988 | |||||||||||||||||||||||||||||||||||||||||||||
Fixed income securities | Fixed income securities | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of fixed income securities portfolio | Fair value of fixed income securities portfolio | $ | 6,832,056 | 6,695,209 | 6,473,929 | 6,227,449 | 5,980,988 | ||||||||||||||||||||||||||||||||||||||||||||
Fair value change | 2,102 | 1,131 | (1,079 | ) | (2,112 | ) | Fair value change | 358,127 | 221,279 | (246,480) | (492,941) | ||||||||||||||||||||||||||||||||||||||||
Fair value change from base (%) | 4.77 | % | 2.56 | % | (2.45 | )% | (4.79 | )% | Fair value change from base (%) | 5.5 | % | 3.4 | % | (3.8) | % | (7.6) | % | ||||||||||||||||||||||||||||||||||
AFS fixed income securities | |||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of AFS fixed income securities portfolio | $ | 5,526,150 | 5,357,189 | 5,162,522 | 4,962,328 | 4,763,513 | |||||||||||||||||||||||||||||||||||||||||||||
Fair value change | 363,628 | 194,667 | (200,194 | ) | (399,009 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Fair value change from base (%) | 7.04 | % | 3.77 | % | (3.88 | )% | (7.73 | )% |
December 31, 2020 | Credit Rating | ||||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | Amortized Cost | Fair Value | % of Invested Assets | Yield to Worst | Effective Duration in Years | Average Life in Years | AAA | AA | A | BBB | Non-Investment Grade | Not Rated | |||||||||||||||||||||||||||||||||||
Short-term investments | $ | 410 | $ | 410 | 5.5 | % | 0.1 | % | 0.00 | 0.00 | $ | 382 | $ | 27 | $ | — | $ | 1 | $ | 1 | $ | — | |||||||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. government obligations | 110 | 116 | 1.5 | 0.7 | 4.5 | 6.3 | 113 | 3 | — | — | — | — | |||||||||||||||||||||||||||||||||||
Foreign government obligations | 17 | 18 | 0.2 | 1.3 | 5.0 | 5.8 | — | 2 | 9 | 7 | — | — | |||||||||||||||||||||||||||||||||||
State and municipal obligations | 1,164 | 1,252 | 16.7 | 1.0 | 5.4 | 5.0 | 225 | 613 | 354 | 60 | — | — | |||||||||||||||||||||||||||||||||||
Corporate securities | 2,165 | 2,341 | 31.2 | 1.7 | 4.7 | 6.2 | 14 | 123 | 881 | 1,092 | 232 | — | |||||||||||||||||||||||||||||||||||
MBS: | |||||||||||||||||||||||||||||||||||||||||||||||
RMBS: | |||||||||||||||||||||||||||||||||||||||||||||||
Agency RMBS | 904 | 954 | 12.7 | 1.0 | 2.5 | 3.2 | 954 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Non-agency RMBS | 95 | 98 | 1.3 | 1.7 | 1.0 | 2.7 | 44 | 5 | 47 | 1 | — | — | |||||||||||||||||||||||||||||||||||
Total RMBS | 999 | 1,052 | 14.0 | 1.0 | 2.3 | 3.2 | 998 | 5 | 47 | 1 | — | — | |||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities ("CMBS") | 621 | 668 | 8.9 | 1.6 | 4.6 | 5.9 | 586 | 40 | 31 | 11 | — | — | |||||||||||||||||||||||||||||||||||
Total mortgage-backed securities | 1,620 | 1,720 | 22.9 | 1.3 | 3.2 | 4.2 | 1,584 | 45 | 78 | 12 | — | — | |||||||||||||||||||||||||||||||||||
CLO and other ABS: | |||||||||||||||||||||||||||||||||||||||||||||||
Auto | 43 | 45 | 0.6 | 0.5 | 2.4 | 2.3 | 35 | 6 | 3 | — | 1 | — | |||||||||||||||||||||||||||||||||||
Aircraft | 53 | 51 | 0.7 | 6.0 | 3.2 | 3.6 | — | 1 | 16 | 31 | 3 | — | |||||||||||||||||||||||||||||||||||
CLOs | 659 | 661 | 8.8 | 3.0 | 1.1 | 4.5 | 357 | 206 | 32 | 16 | 48 | 1 | |||||||||||||||||||||||||||||||||||
Credit cards | 17 | 17 | 0.2 | 0.3 | 1.4 | 1.4 | 17 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Other ABS | 243 | 253 | 3.4 | 2.4 | 3.4 | 5.3 | 68 | 9 | 139 | 28 | 9 | 1 | |||||||||||||||||||||||||||||||||||
Total CLOs and Other ABS | 1,015 | 1,027 | 13.7 | 2.8 | 1.8 | 4.5 | 477 | 222 | 190 | 75 | 62 | 2 | |||||||||||||||||||||||||||||||||||
Total securitized assets | 2,635 | 2,746 | 36.6 | 1.8 | 2.7 | 4.3 | 2,062 | 267 | 268 | 87 | 62 | 2 | |||||||||||||||||||||||||||||||||||
Total fixed income securities and short-term investments | 6,500 | 6,884 | 91.7 | 1.5 | 3.8 | 4.9 | 2,795 | 1,034 | 1,512 | 1,247 | 295 | 2 | |||||||||||||||||||||||||||||||||||
Total fixed income securities and short-term investments by credit rating percentage | 40.6 | % | 15.0 | % | 22.0 | % | 18.1 | % | 4.3 | % | — | % | |||||||||||||||||||||||||||||||||||
Commercial mortgage loans | 46 | 47 | 0.6 | 3.8 | 2.8 | 7.0 | — | — | 27 | 20 | — | — | |||||||||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||||||||||||||||
Common stock1 | 300 | 309 | 4.1 | — | — | — | — | — | — | — | — | 309 | |||||||||||||||||||||||||||||||||||
Preferred stock | 2 | 2 | — | — | — | — | — | — | — | 1 | 1 | — | |||||||||||||||||||||||||||||||||||
Total equity securities | 302 | 310 | 4.1 | — | — | — | — | — | — | 1 | 1 | 309 | |||||||||||||||||||||||||||||||||||
Other investments: | |||||||||||||||||||||||||||||||||||||||||||||||
Alternative investments: | |||||||||||||||||||||||||||||||||||||||||||||||
Private equity | 157 | 157 | 2.1 | — | — | — | — | — | — | — | — | 157 | |||||||||||||||||||||||||||||||||||
Private credit | 54 | 54 | 0.7 | — | — | — | — | — | — | — | — | 54 | |||||||||||||||||||||||||||||||||||
Real assets | 20 | 20 | 0.3 | — | — | — | — | — | — | — | — | 20 | |||||||||||||||||||||||||||||||||||
Total alternative investments | 231 | 231 | 3.1 | — | — | — | — | — | — | — | — | 231 | |||||||||||||||||||||||||||||||||||
Other investments | 35 | 35 | 0.5 | — | — | — | — | — | — | — | — | 35 | |||||||||||||||||||||||||||||||||||
Total other investments | 266 | 266 | 3.5 | — | — | — | — | — | — | — | — | 266 | |||||||||||||||||||||||||||||||||||
Total invested assets | $ | 7,114 | $ | 7,508 | 100 | — | — | — | $ | 2,795 | $ | 1,034 | $ | 1,539 | $ | 1,268 | $ | 295 | $ | 576 |
December 31, 2017 ($ in millions) | Fair Value | Carry Value | Unrealized/ Unrecognized Gain (Loss) | Weighted Average Credit Quality | ||||||||
U.S. government obligations | $ | 49.7 | 49.7 | 0.4 | AAA | |||||||
Foreign government obligations | 18.6 | 18.6 | 0.5 | A | ||||||||
State and municipal obligations | 1,609.2 | 1,608.2 | 44.8 | AA | ||||||||
Corporate securities | 1,635.3 | 1,634.4 | 30.0 | BBB+ | ||||||||
CLO and Other ABS | 795.5 | 795.5 | 6.3 | AA | ||||||||
CMBS | 383.4 | 383.4 | 0.7 | AA+ | ||||||||
RMBS | 714.9 | 714.9 | 5.1 | AA+ | ||||||||
Total fixed income portfolio | $ | 5,206.6 | 5,204.7 | 87.8 | AA- |
December 31, 2016 ($ in millions) | Fair Value | Carry Value | Unrealized/ Unrecognized Gain (Loss) | Weighted Average Credit Quality | ||||||||
U.S. government obligations | $ | 77.3 | 77.3 | 2.2 | AAA | |||||||
Foreign government obligations | 26.9 | 26.9 | 0.3 | A | ||||||||
State and municipal obligations | 1,459.5 | 1,457.4 | 15.7 | AA | ||||||||
Corporate securities | 2,021.8 | 2,020.3 | 22.6 | A- | ||||||||
CLO and Other ABS | 529.0 | 529.0 | 1.1 | AA+ | ||||||||
CMBS | 258.0 | 258.0 | 0.5 | AAA | ||||||||
RMBS | 525.2 | 525.2 | 0.2 | AA+ | ||||||||
Total fixed income portfolio | $ | 4,897.7 | 4,894.1 | 42.6 | AA- |
State Exposures of Municipal Bonds | General Obligation | Special Revenue | Fair Value | Weighted Average Credit Quality | ||||||||||||||||||||||||||||||||||
($ in thousands) | State & Local | % of Total | ||||||||||||||||||||||||||||||||||||
New York | $ | 9,605 | 141,563 | 151,168 | 12% | AA- | ||||||||||||||||||||||||||||||||
California | 49,197 | 83,733 | 132,930 | 11% | AA- | |||||||||||||||||||||||||||||||||
Texas1 | 39,450 | 50,090 | 89,540 | 7% | AA | |||||||||||||||||||||||||||||||||
New Jersey | — | 68,201 | 68,201 | 5% | A | |||||||||||||||||||||||||||||||||
Florida | 3,071 | 49,902 | 52,973 | 4% | AA- | |||||||||||||||||||||||||||||||||
Pennsylvania | — | 52,953 | 52,953 | 4% | AA- | |||||||||||||||||||||||||||||||||
Washington | 20,533 | 30,704 | 51,237 | 4% | AA | |||||||||||||||||||||||||||||||||
Massachusetts | 902 | 41,802 | 42,704 | 3% | AA | |||||||||||||||||||||||||||||||||
Colorado | 4,680 | 36,102 | 40,782 | 3% | A+ | |||||||||||||||||||||||||||||||||
Ohio | 2,321 | 33,154 | 35,475 | 3% | A+ | |||||||||||||||||||||||||||||||||
Other | 100,569 | 322,253 | 422,822 | 34% | AA- | |||||||||||||||||||||||||||||||||
230,328 | 910,457 | 1,140,785 | 91% | AA- | ||||||||||||||||||||||||||||||||||
Pre-refunded/escrowed to maturity bonds | 41,044 | 70,104 | 111,148 | 9% | AAA | |||||||||||||||||||||||||||||||||
Total | $ | 271,372 | 980,561 | 1,251,933 | 100% | AA- | ||||||||||||||||||||||||||||||||
% of Total Municipal Portfolio | 22 | % | 78 | % | 100 | % | ||||||||||||||||||||||||||||||||
% of Total Investment Portfolio | 4 | % | 13 | % | 17 | % |
State Exposures of Municipal Bonds | General Obligation | Special Revenue | Fair Value | Weighted Average Credit Quality | |||||||||||||
($ in thousands) | Local | State | % of Total | ||||||||||||||
New York | $ | 22,477 | — | 127,128 | 149,605 | 9% | AA- | ||||||||||
California | 27,997 | 14,718 | 101,178 | 143,893 | 9% | AA- | |||||||||||
Texas1 | 42,544 | 18,573 | 61,696 | 122,813 | 8% | AA | |||||||||||
New Jersey | — | — | 76,668 | 76,668 | 5% | A | |||||||||||
Washington | 20,187 | 12,814 | 38,882 | 71,883 | 4% | AA | |||||||||||
Pennsylvania | — | 16,467 | 55,371 | 71,838 | 4% | A+ | |||||||||||
Florida | 5,290 | 8,953 | 51,067 | 65,310 | 4% | AA | |||||||||||
Arizona | 11,139 | — | 53,379 | 64,518 | 4% | AA | |||||||||||
Massachusetts | — | 906 | 51,465 | 52,371 | 3% | AA | |||||||||||
Ohio | 5,672 | 5,263 | 30,700 | 41,635 | 3% | AA- | |||||||||||
Other | 160,698 | 58,517 | 434,564 | 653,779 | 41% | AA | |||||||||||
296,004 | 136,211 | 1,082,098 | 1,514,313 | 94% | AA- | ||||||||||||
Pre-refunded/escrowed to maturity bonds | 23,073 | 18,581 | 53,264 | 94,918 | 6% | AA | |||||||||||
Total | $ | 319,077 | 154,792 | 1,135,362 | 1,609,231 | 100% | AA | ||||||||||
% of Total Municipal Portfolio | 20 | % | 10 | % | 70 | % | 100 | % |
December 31, 2020 | Fair Value | Carry Value | Unrealized/ Unrecognized Gain (Loss) | Weighted Average Credit Quality | ||||||||||||||||||||||
($ in millions) | ||||||||||||||||||||||||||
Investment grade | $ | 2,109.2 | 2,108.3 | 173.8 | A- | |||||||||||||||||||||
Non-investment grade | 232.1 | 232.1 | 5.7 | B+ | ||||||||||||||||||||||
Total corporate securities | $ | 2,341.3 | 2,340.4 | 179.5 | BBB+ |
December 31, 2019 | Fair Value | Carry Value | Unrealized/ Unrecognized Gain (Loss) | Weighted Average Credit Quality | ||||||||||||||||||||||
($ in millions) | ||||||||||||||||||||||||||
Investment grade | $ | 1,775.9 | 1,775.0 | 79.8 | A- | |||||||||||||||||||||
Non-investment grade | 188.7 | 188.7 | 1.7 | B+ | ||||||||||||||||||||||
Total corporate securities | $ | 1,964.6 | 1,963.7 | 81.5 | BBB+ |
December 31, 2017 | Fair Value | Carry Value | Unrealized/ Unrecognized Gain (Loss) | Weighted Average Credit Quality | ||||||||
($ in millions) | ||||||||||||
Investment grade | $ | 1,505.0 | 1,504.1 | 27.5 | A- | |||||||
Non-investment grade | 130.3 | 130.3 | 2.5 | B | ||||||||
Total corporate securities | $ | 1,635.3 | 1,634.4 | 30.0 | BBB+ |
December 31, 2016 | Fair Value | Carry Value | Unrealized/ Unrecognized Gain (Loss) | Weighted Average Credit Quality | ||||||||
($ in millions) | ||||||||||||
Investment grade | $ | 1,892.4 | 1,890.9 | 21.0 | A- | |||||||
Non-investment grade | 129.4 | 129.4 | 1.6 | B+ | ||||||||
Total corporate securities | $ | 2,021.8 | 2,020.3 | 22.6 | A- |
December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||
($ in millions) | Fair Value | Weighted Average Credit Rating | % of Fixed Income Portfolio | Fair Value | Weighted Average Credit Rating | % of Fixed Income Portfolio | ||||||||||||||||||||||||||||||||
Financials | 1,048.5 | A- | 16 | % | $ | 925.2 | A- | 15 | % | |||||||||||||||||||||||||||||
Consumer non-cyclicals | 281.3 | BBB+ | 4 | 259.7 | BBB+ | 4 | ||||||||||||||||||||||||||||||||
Communications | 150.2 | BBB+ | 2 | 129.8 | BBB+ | 2 | ||||||||||||||||||||||||||||||||
Consumer cyclicals1 | 144.5 | BBB- | 2 | 136.0 | BBB | 2 | ||||||||||||||||||||||||||||||||
Technology | 109.0 | BBB+ | 2 | 81.6 | BBB+ | 1 | ||||||||||||||||||||||||||||||||
Energy | 100.5 | BBB | 2 | 104.7 | BBB | 2 | ||||||||||||||||||||||||||||||||
Utilities | 76.4 | BBB+ | 1 | 37.6 | BBB+ | 1 | ||||||||||||||||||||||||||||||||
Bank loans | 71.4 | B | 1 | 65.6 | B | 1 | ||||||||||||||||||||||||||||||||
Basic materials | 40.0 | BBB- | 1 | 26.7 | BBB- | — | ||||||||||||||||||||||||||||||||
Other industrials | 204.9 | BBB | 3 | 158.5 | BBB | 3 | ||||||||||||||||||||||||||||||||
Other | 114.6 | BBB+ | 2 | 39.2 | BBB+ | 1 | ||||||||||||||||||||||||||||||||
Total corporate securities | 2,341.3 | BBB+ | 36 | 1,964.6 | BBB+ | 32 |
December 31, 2017 | Fair Value | Carry Value | Unrealized/ Unrecognized Gain (Loss) | Weighted Average Credit Quality | ||||||||
($ in millions) | ||||||||||||
Investment grade: | ||||||||||||
CLO | $ | 572.5 | 572.5 | 2.1 | AA+ | |||||||
Other ABS | 202.2 | 202.2 | 2.9 | AA- | ||||||||
Total investment grade | 774.7 | 774.7 | 5.0 | AA+ | ||||||||
Non-investment grade: | ||||||||||||
CLO | 20.8 | 20.8 | 1.3 | BB- | ||||||||
Other ABS | — | — | — | — | ||||||||
Total non-investment grade | 20.8 | 20.8 | 1.3 | BB- | ||||||||
Total CLO and other ABS | $ | 795.5 | 795.5 | 6.3 | AA |
December 31, 2016 | Fair Value | Carry Value | Unrealized/ Unrecognized Gain (Loss) | Weighted Average Credit Quality | ||||||||
($ in millions) | ||||||||||||
Investment grade: | ||||||||||||
CLO | $ | 341.9 | 341.9 | 0.1 | AAA | |||||||
Other ABS | 170.2 | 170.2 | 0.2 | AA+ | ||||||||
Total investment grade | 512.1 | 512.1 | 0.3 | AA+ | ||||||||
Non-investment grade: | ||||||||||||
CLO | 16.9 | 16.9 | 0.8 | BB- | ||||||||
Other ABS | — | — | — | — | ||||||||
Total non-investment grade | 16.9 | 16.9 | 0.8 | BB- | ||||||||
Total CLO and other ABS | $ | 529.0 | 529.0 | 1.1 | AA+ |
($ in millions) | December 31, 2020 | December 31, 2019 | ||||||||||||
Consumer cyclicals | $ | 7.5 | 4.7 | |||||||||||
Energy | $ | 7.6 | 3.8 |
December 31, 2020 | Fair Value | Carry Value | Unrealized/ Unrecognized Gain (Loss) | Weighted Average Credit Quality | ||||||||||||||||||||||
($ in millions) | ||||||||||||||||||||||||||
Investment grade: | ||||||||||||||||||||||||||
CLO | $ | 611.6 | 611.6 | 4.1 | AA+ | |||||||||||||||||||||
Other ABS | 351.9 | 351.9 | 10.4 | A+ | ||||||||||||||||||||||
Total investment grade | 963.5 | 963.5 | 14.5 | AA | ||||||||||||||||||||||
Non-investment grade: | ||||||||||||||||||||||||||
CLO | 49.2 | 49.2 | (2.3) | BB- | ||||||||||||||||||||||
Other ABS | 13.9 | 13.9 | 0.1 | B | ||||||||||||||||||||||
Total non-investment grade | 63.1 | 63.1 | (2.2) | BB- | ||||||||||||||||||||||
Total CLO and other ABS | $ | 1,026.6 | 1,026.6 | 12.3 | AA- |
December 31, 2019 | Fair Value | Carry Value | Unrealized/ Unrecognized Gain (Loss) | Weighted Average Credit Quality | ||||||||||||||||||||||
($ in millions) | ||||||||||||||||||||||||||
Investment grade: | ||||||||||||||||||||||||||
CLO | $ | 496.7 | 496.7 | (2.4) | AA | |||||||||||||||||||||
Other ABS | 274.1 | 274.1 | 5.8 | A+ | ||||||||||||||||||||||
Total investment grade | 770.8 | 770.8 | 3.4 | AA | ||||||||||||||||||||||
Non-investment grade: | ||||||||||||||||||||||||||
CLO | 14.7 | 14.7 | (0.8) | B+ | ||||||||||||||||||||||
Other ABS | 7.5 | 7.5 | (0.1) | B+ | ||||||||||||||||||||||
Total non-investment grade | 22.2 | 22.2 | (0.9) | B+ | ||||||||||||||||||||||
Total CLO and other ABS | $ | 793.0 | 793.0 | 2.5 | AA- |
Change in Equity Values in Percent | Change in Equity Values in Percent | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | (30)% | (20)% | (10)% | 0% | 10% | 20% | 30% | ($ in thousands) | (30)% | (20)% | (10)% | 0% | 10% | 20% | 30% | |||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of AFS equity portfolio | $ | 127,893 | 146,164 | 164,434 | 182,705 | 200,976 | 219,246 | 237,517 | Fair value of AFS equity portfolio | $ | 217,257 | 248,294 | 279,330 | 310,367 | 341,404 | 372,440 | 403,477 | |||||||||||||||||||||||||||||||||||||||||||||||||
Fair value change | (54,812 | ) | (36,541 | ) | (18,271 | ) | 18,271 | 36,541 | 54,812 | Fair value change | (93,110) | (62,073) | (31,037) | 31,037 | 62,073 | 93,110 |
Asset Category | Percentage of Invested Assets | ||||||||||
Highly-liquid assets | 68 | % | |||||||||
Generally liquid assets, may become less liquid with market stress1 | 27 | ||||||||||
Generally illiquid assets2 | 5 | ||||||||||
Total | 100 | % |
2017 | 2020 | ||||||||||||||||||||||||||||
($ in thousands) | Year of Maturity | Carrying Amount | Fair Value | ($ in thousands) | Year of Maturity | Carrying Amount | Fair Value | ||||||||||||||||||||||
Financial liabilities | Financial liabilities | ||||||||||||||||||||||||||||
Long-term debt | Long-term debt | ||||||||||||||||||||||||||||
1.61% Borrowings from FHLBNY | 2021 | $ | 25,000 | 24,270 | 1.61% Borrowings from FHLBNY | 2021 | $ | 25,000 | 25,182 | ||||||||||||||||||||
1.56% Borrowings from FHLBNY | 2021 | 25,000 | 24,210 | 1.56% Borrowings from FHLBNY | 2021 | 25,000 | 25,198 | ||||||||||||||||||||||
3.03% Borrowings from FHLBI | 2026 | 60,000 | 60,334 | 3.03% Borrowings from FHLBI | 2026 | 60,000 | 67,513 | ||||||||||||||||||||||
7.25% Senior Notes | 2034 | 49,904 | 61,391 | 7.25% Senior Notes | 2034 | 49,914 | 66,148 | ||||||||||||||||||||||
6.70% Senior Notes | 2035 | 99,446 | 116,597 | 6.70% Senior Notes | 2035 | 99,499 | 127,886 | ||||||||||||||||||||||
5.875% Senior Notes | 2043 | 185,000 | 186,332 | ||||||||||||||||||||||||||
5.375% Senior Notes | 5.375% Senior Notes | 2049 | 294,241 | 383,669 | |||||||||||||||||||||||||
Subtotal | 444,350 | 473,134 | Subtotal | 553,654 | 695,596 | ||||||||||||||||||||||||
Unamortized debt issuance costs | (5,234 | ) | Unamortized debt issuance costs | (3,419) | |||||||||||||||||||||||||
Finance lease obligations | Finance lease obligations | 508 | |||||||||||||||||||||||||||
Total notes payable | $ | 439,116 | Total notes payable | $ | 550,743 |
Consolidated Balance Sheets | |||||||
December 31, | |||||||
($ in thousands, except share amounts) | 2017 | 2016 | |||||
ASSETS | |||||||
Investments: | |||||||
Fixed income securities, held-to-maturity – at carrying value (fair value: $44,100 – 2017; $105,211 – 2016) | $ | 42,129 | 101,556 | ||||
Fixed income securities, available-for-sale – at fair value (amortized cost: $5,076,716 – 2017; $4,753,759 – 2016) | 5,162,522 | 4,792,540 | |||||
Equity securities, available-for-sale – at fair value (cost: $143,811 – 2017; $120,889 – 2016) | 182,705 | 146,753 | |||||
Short-term investments (at cost which approximates fair value) | 165,555 | 221,701 | |||||
Other investments | 132,268 | 102,397 | |||||
Total investments (Notes 5 and 7) | 5,685,179 | 5,364,947 | |||||
Cash | 534 | 458 | |||||
Interest and dividends due or accrued | 40,897 | 40,164 | |||||
Premiums receivable, net of allowance for uncollectible accounts of: $10,000 – 2017; $5,980 – 2016 | 747,029 | 681,611 | |||||
Reinsurance recoverable, net of allowance for uncollectible accounts of: $4,600 – 2017; $5,500 – 2016 (Note 8) | 594,832 | 621,537 | |||||
Prepaid reinsurance premiums (Note 8) | 153,493 | 146,282 | |||||
Current federal income tax (Note 13) | 3,243 | 2,486 | |||||
Deferred federal income tax (Note 13) | 31,990 | 84,840 | |||||
Property and equipment – at cost, net of accumulated depreciation and amortization of: $213,227 – 2017; $198,729 – 2016 | 63,959 | 69,576 | |||||
Deferred policy acquisition costs (Note 2) | 235,055 | 222,564 | |||||
Goodwill (Note 11) | 7,849 | 7,849 | |||||
Other assets | 122,371 | 113,534 | |||||
Total assets | $ | 7,686,431 | 7,355,848 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Liabilities: | |||||||
Reserve for loss and loss expense (Note 9) | $ | 3,771,240 | 3,691,719 | ||||
Unearned premiums | 1,349,644 | 1,262,819 | |||||
Long-term debt (Note 10) | 439,116 | 438,667 | |||||
Accrued salaries and benefits | 131,850 | 132,880 | |||||
Other liabilities | 281,624 | 298,393 | |||||
Total liabilities | $ | 5,973,474 | 5,824,478 | ||||
Stockholders’ Equity: | |||||||
Preferred stock of $0 par value per share: | |||||||
Authorized shares 5,000,000; no shares issued or outstanding | $ | — | — | ||||
Common stock of $2 par value per share: | |||||||
Authorized shares 360,000,000 | |||||||
Issued: 102,284,564 – 2017; 101,620,436 – 2016 | 204,569 | 203,241 | |||||
Additional paid-in capital | 367,717 | 347,295 | |||||
Retained earnings | 1,698,613 | 1,568,881 | |||||
Accumulated other comprehensive income (loss) (Note 6) | 20,170 | (15,950 | ) | ||||
Treasury stock – at cost (shares: 43,789,442 – 2017; 43,653,237 – 2016) | (578,112 | ) | (572,097 | ) | |||
Total stockholders’ equity | 1,712,957 | 1,531,370 | |||||
Commitments and contingencies (Notes 17 and 18) | |||||||
Total liabilities and stockholders’ equity | $ | 7,686,431 | 7,355,848 |
Consolidated Statements of Income | ||||||||||
December 31, | ||||||||||
($ in thousands, except per share amounts) | 2017 | 2016 | 2015 | |||||||
Revenues: | ||||||||||
Net premiums earned | $ | 2,291,027 | 2,149,572 | 1,989,909 | ||||||
Net investment income earned | 161,882 | 130,754 | 121,316 | |||||||
Net realized gains (losses): | ||||||||||
Net realized investment gains | 11,204 | 3,562 | 31,537 | |||||||
Other-than-temporary impairments | (4,809 | ) | (8,509 | ) | (18,366 | ) | ||||
Other-than-temporary impairments on fixed income securities recognized in other comprehensive income | (36 | ) | 10 | — | ||||||
Total net realized gains (losses) | 6,359 | (4,937 | ) | 13,171 | ||||||
Other income | 10,716 | 8,881 | 7,456 | |||||||
Total revenues | 2,469,984 | 2,284,270 | 2,131,852 | |||||||
Expenses: | ||||||||||
Loss and loss expense incurred | 1,345,074 | 1,234,797 | 1,148,541 | |||||||
Amortization of deferred policy acquisition costs | 469,236 | 450,328 | 399,436 | |||||||
Other insurance expenses | 333,097 | 321,395 | 300,359 | |||||||
Interest expense | 24,354 | 22,771 | 22,428 | |||||||
Corporate expenses | 36,255 | 35,024 | 28,396 | |||||||
Total expenses | 2,208,016 | 2,064,315 | 1,899,160 | |||||||
Income before federal income tax | 261,968 | 219,955 | 232,692 | |||||||
Federal income tax expense: | ||||||||||
Current | 62,184 | 48,581 | 45,347 | |||||||
Deferred | 30,958 | 12,879 | 21,484 | |||||||
Total federal income tax expense | 93,142 | 61,460 | 66,831 | |||||||
Net income | $ | 168,826 | 158,495 | 165,861 | ||||||
Earnings per share: | ||||||||||
Basic net income | $ | 2.89 | 2.74 | 2.90 | ||||||
Diluted net income | $ | 2.84 | 2.70 | 2.85 | ||||||
Dividends to stockholders | $ | 0.66 | 0.61 | 0.57 |
Consolidated Balance Sheets | ||||||||||||||
December 31, | ||||||||||||||
($ in thousands, except share amounts) | 2020 | 2019 | ||||||||||||
ASSETS | ||||||||||||||
Investments: | ||||||||||||||
Fixed income securities, held-to-maturity – at carrying value (fair value: $18,001 – 2020; $21,975 – 2019) | $ | 16,846 | 20,800 | |||||||||||
Less allowance for credit losses | (22) | 0 | ||||||||||||
Fixed income securities, held-to-maturity, net of allowance for credit losses | 16,824 | 20,800 | ||||||||||||
Fixed income securities, available-for-sale – at fair value (allowance for credit losses: $3,969 – 2020; amortized cost: $6,073,517 – 2020; $5,879,986 – 2019) | 6,455,928 | 6,095,620 | ||||||||||||
Commercial mortgage loans – at carrying value (fair value: $47,289 – 2020) | 46,306 | 0 | ||||||||||||
Less: allowance for credit losses | 0 | 0 | ||||||||||||
Commercial mortgage loans, net of allowance for credit losses | 46,306 | 0 | ||||||||||||
Equity securities – at fair value (cost: $301,551 – 2020; $72,061 – 2019) | 310,367 | 72,937 | ||||||||||||
Short-term investments | 409,852 | 282,490 | ||||||||||||
Other investments | 266,322 | 216,807 | ||||||||||||
Total investments (Notes 5 and 7) | 7,505,599 | 6,688,654 | ||||||||||||
Cash | 394 | 300 | ||||||||||||
Restricted cash | 14,837 | 7,675 | ||||||||||||
Interest and dividends due or accrued | 45,004 | 44,846 | ||||||||||||
Premiums receivable | 857,014 | 830,301 | ||||||||||||
Less: allowance for credit losses (Note 8) | (21,000) | (6,400) | ||||||||||||
Premiums receivable, net of allowance for credit losses | 836,014 | 823,901 | ||||||||||||
Reinsurance recoverable | 589,269 | 577,635 | ||||||||||||
Less: allowance for credit losses (Note 9) | (1,777) | (4,400) | ||||||||||||
Reinsurance recoverable, net of allowance for credit losses | 587,492 | 573,235 | ||||||||||||
Prepaid reinsurance premiums (Note 9) | 170,531 | 166,705 | ||||||||||||
Deferred federal income tax (Note 14) | 0 | 6,776 | ||||||||||||
Property and equipment – at cost, net of accumulated depreciation and amortization of: $240,150 – 2020; $227,566 – 2019 | 77,696 | 77,409 | ||||||||||||
Deferred policy acquisition costs (Note 2) | 288,578 | 271,186 | ||||||||||||
Goodwill (Note 12) | 7,849 | 7,849 | ||||||||||||
Other assets | 153,919 | 128,614 | ||||||||||||
Total assets | $ | 9,687,913 | 8,797,150 | |||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||
Liabilities: | ||||||||||||||
Reserve for loss and loss expense (Note 10) | $ | 4,260,355 | 4,067,163 | |||||||||||
Unearned premiums | 1,618,271 | 1,523,167 | ||||||||||||
Long-term debt (Note 11) | 550,743 | 550,597 | ||||||||||||
Current federal income tax | 14,021 | 2,987 | ||||||||||||
Deferred federal income tax (Note 14) | 27,096 | 0 | ||||||||||||
Accrued salaries and benefits | 114,868 | 126,753 | ||||||||||||
Other liabilities | 363,670 | 331,547 | ||||||||||||
Total liabilities | $ | 6,949,024 | 6,602,214 | |||||||||||
Stockholders’ Equity: | ||||||||||||||
Preferred stock of $0 par value per share (Note 17): | ||||||||||||||
Authorized shares: 5,000,000; Issued shares: 8,000 with $25,000 liquidation preference per share - 2020; 0 shares issued or outstanding - 2019 | $ | 200,000 | 0 | |||||||||||
Common stock of $2 par value per share: | ||||||||||||||
Authorized shares 360,000,000 | ||||||||||||||
Issued: 104,032,912 – 2020; 103,484,159 – 2019 | 208,066 | 206,968 | ||||||||||||
Additional paid-in capital | 438,985 | 418,521 | ||||||||||||
Retained earnings | 2,271,537 | 2,080,529 | ||||||||||||
Accumulated other comprehensive income (Note 6) | 220,186 | 81,750 | ||||||||||||
Treasury stock – at cost (shares: 44,127,109 – 2020; 44,023,006 – 2019) | (599,885) | (592,832) | ||||||||||||
Total stockholders’ equity | 2,738,889 | 2,194,936 | ||||||||||||
Commitments and contingencies (Notes 19 and 20) | 0 | 0 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 9,687,913 | 8,797,150 |
Consolidated Statements of Comprehensive Income | ||||||||||
December 31, | ||||||||||
($ in thousands) | 2017 | 2016 | 2015 | |||||||
Net income | $ | 168,826 | 158,495 | 165,861 | ||||||
Other comprehensive income (loss), net of tax: | ||||||||||
Unrealized gains (losses) on investment securities: | ||||||||||
Unrealized holding gains (losses) arising during year | 43,015 | (5,977 | ) | (26,143 | ) | |||||
Non-credit portion of other-than-temporary impairments recognized in other comprehensive income | 23 | (6 | ) | — | ||||||
Amounts reclassified into net income: | ||||||||||
Held-to-maturity securities | (116 | ) | (92 | ) | (377 | ) | ||||
Non-credit other-than-temporary impairments | 68 | 138 | 232 | |||||||
Realized (gains) losses on available for sale securities | (4,537 | ) | 3,064 | (9,110 | ) | |||||
Total unrealized gains (losses) on investment securities | 38,453 | (2,873 | ) | (35,398 | ) | |||||
Defined benefit pension and post-retirement plans: | ||||||||||
Net actuarial (loss) gain | (3,700 | ) | (7,852 | ) | 1,585 | |||||
Amounts reclassified into net income: | ||||||||||
Net actuarial loss | 1,367 | 4,200 | 4,600 | |||||||
Total defined benefit pension and post-retirement plans | (2,333 | ) | (3,652 | ) | 6,185 | |||||
Other comprehensive income (loss) | 36,120 | (6,525 | ) | (29,213 | ) | |||||
Comprehensive income | $ | 204,946 | 151,970 | 136,648 |
Consolidated Statements of Income | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
($ in thousands, except per share amounts) | 2020 | 2019 | 2018 | |||||||||||||||||
Revenues: | ||||||||||||||||||||
Net premiums earned | $ | 2,681,814 | 2,597,171 | 2,436,229 | ||||||||||||||||
Net investment income earned | 227,107 | 222,543 | 195,336 | |||||||||||||||||
Net realized and unrealized investment (losses) gains | (4,217) | 14,422 | (54,923) | |||||||||||||||||
Other income | 17,570 | 12,355 | 9,438 | |||||||||||||||||
Total revenues | 2,922,274 | 2,846,491 | 2,586,080 | |||||||||||||||||
Expenses: | ||||||||||||||||||||
Loss and loss expense incurred | 1,635,823 | 1,551,491 | 1,498,134 | |||||||||||||||||
Amortization of deferred policy acquisition costs | 560,271 | 535,973 | 495,042 | |||||||||||||||||
Other insurance expenses | 366,941 | 358,069 | 331,318 | |||||||||||||||||
Interest expense | 30,839 | 33,668 | 24,419 | |||||||||||||||||
Corporate expenses | 25,412 | 30,900 | 25,446 | |||||||||||||||||
Total expenses | 2,619,286 | 2,510,101 | 2,374,359 | |||||||||||||||||
Income before federal income tax | 302,988 | 336,390 | 211,721 | |||||||||||||||||
Federal income tax expense: | ||||||||||||||||||||
Current | 60,059 | 60,640 | 35,012 | |||||||||||||||||
Deferred | (3,426) | 4,127 | (2,230) | |||||||||||||||||
Total federal income tax expense | 56,633 | 64,767 | 32,782 | |||||||||||||||||
Net income | $ | 246,355 | 271,623 | 178,939 | ||||||||||||||||
Preferred stock dividends | 0 | 0 | 0 | |||||||||||||||||
Net income available to common stockholders | $ | 246,355 | 271,623 | 178,939 | ||||||||||||||||
Earnings per common share: | ||||||||||||||||||||
Net income available to common stockholders - Basic | $ | 4.12 | 4.57 | 3.04 | ||||||||||||||||
Net income available to common stockholders - Diluted | $ | 4.09 | 4.53 | 3.00 | ||||||||||||||||
Consolidated Statements of Stockholders’ Equity | ||||||||||
December 31, | ||||||||||
($ in thousands, except share amounts) | 2017 | 2016 | 2015 | |||||||
Common stock: | ||||||||||
Beginning of year | $ | 203,241 | 201,723 | 199,896 | ||||||
Dividend reinvestment plan (shares: 28,607 – 2017; 38,741 – 2016; 50,013 – 2015) | 57 | 77 | 100 | |||||||
Stock purchase and compensation plans (shares: 635,521 – 2017; 720,323 – 2016; 863,426 – 2015) | 1,271 | 1,441 | 1,727 | |||||||
End of year | 204,569 | 203,241 | 201,723 | |||||||
Additional paid-in capital: | ||||||||||
Beginning of year | 347,295 | 326,656 | 305,385 | |||||||
Dividend reinvestment plan | 1,395 | 1,389 | 1,374 | |||||||
Stock purchase and compensation plans | 19,027 | 19,250 | 19,897 | |||||||
End of year | 367,717 | 347,295 | 326,656 | |||||||
Retained earnings: | ||||||||||
Beginning of year | 1,568,881 | 1,446,192 | 1,313,440 | |||||||
Net income | 168,826 | 158,495 | 165,861 | |||||||
Dividends to stockholders ($0.66 per share – 2017; $0.61 per share – 2016; $0.57 per share – 2015) | (39,094 | ) | (35,806 | ) | (33,109 | ) | ||||
End of year | 1,698,613 | 1,568,881 | 1,446,192 | |||||||
Accumulated other comprehensive income (loss): | ||||||||||
Beginning of year | (15,950 | ) | (9,425 | ) | 19,788 | |||||
Other comprehensive income (loss) | 36,120 | (6,525 | ) | (29,213 | ) | |||||
End of year | 20,170 | (15,950 | ) | (9,425 | ) | |||||
Treasury stock: | ||||||||||
Beginning of year | (572,097 | ) | (567,105 | ) | (562,923 | ) | ||||
Acquisition of treasury stock (shares: 136,205 – 2017; 152,595 – 2016; 147,461 – 2015) | (6,015 | ) | (4,992 | ) | (4,182 | ) | ||||
End of year | (578,112 | ) | (572,097 | ) | (567,105 | ) | ||||
Total stockholders’ equity | $ | 1,712,957 | 1,531,370 | 1,398,041 |
Consolidated Statements of Comprehensive Income | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
($ in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||
Net income | $ | 246,355 | 271,623 | 178,939 | ||||||||||||||||
Other comprehensive income (loss) ("OCI"), net of tax: | ||||||||||||||||||||
Unrealized gains (losses) on investment securities: | ||||||||||||||||||||
Unrealized holding gains (losses) arising during year | 133,104 | 168,021 | (97,284) | |||||||||||||||||
Unrealized losses on securities with credit loss recognized in earnings | (6,459) | 0 | 0 | |||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
Held-to-maturity securities | (19) | (46) | 87 | |||||||||||||||||
Net realized losses on disposals and losses on intent-to-sell available-for-sale ("AFS") securities | 4,247 | 530 | 31,316 | |||||||||||||||||
Credit loss expense | 3,984 | 0 | 0 | |||||||||||||||||
Total unrealized gains (losses) on investment securities | 134,857 | 168,505 | (65,881) | |||||||||||||||||
Defined benefit pension and post-retirement plans: | ||||||||||||||||||||
Net actuarial gain (loss) | 1,197 | (10,898) | (8,906) | |||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
Net actuarial loss | 2,382 | 2,099 | 1,680 | |||||||||||||||||
Total defined benefit pension and post-retirement plans | 3,579 | (8,799) | (7,226) | |||||||||||||||||
Other comprehensive income (loss) | 138,436 | 159,706 | (73,107) | |||||||||||||||||
Comprehensive income | $ | 384,791 | 431,329 | 105,832 |
Consolidated Statements of Cash Flows | ||||||||||
December 31, | ||||||||||
($ in thousands) | 2017 | 2016 | 2015 | |||||||
Operating Activities | ||||||||||
Net income | $ | 168,826 | 158,495 | 165,861 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||
Depreciation and amortization | 52,100 | 61,671 | 59,688 | |||||||
Stock-based compensation expense | 12,089 | 10,449 | 8,973 | |||||||
Undistributed (gains) losses of equity method investments | (6,393 | ) | (2,316 | ) | 1,889 | |||||
Net realized (gains) losses | (6,359 | ) | 4,937 | (13,171 | ) | |||||
Loss on disposal of fixed assets | 998 | — | — | |||||||
Changes in assets and liabilities: | ||||||||||
Increase in reserves for loss and loss expense, net of reinsurance recoverables | 106,226 | 114,422 | 59,438 | |||||||
Increase in unearned premiums, net of prepaid reinsurance | 79,614 | 87,716 | 79,995 | |||||||
Decrease in net federal income taxes | 30,918 | 11,150 | 25,004 | |||||||
Increase in premiums receivable | (65,418 | ) | (66,447 | ) | (56,386 | ) | ||||
Increase in deferred policy acquisition costs | (12,491 | ) | (9,405 | ) | (27,551 | ) | ||||
(Increase) decrease in interest and dividends due or accrued | (1,088 | ) | (1,473 | ) | 407 | |||||
(Decrease) increase in accrued salaries and benefits | (5,714 | ) | (46,536 | ) | 11,392 | |||||
Increase in other assets | (9,872 | ) | (30,071 | ) | (11,523 | ) | ||||
Increase in other liabilities | 27,297 | 9,191 | 77,564 | |||||||
Net cash provided by operating activities | 370,733 | 301,783 | 381,580 | |||||||
Investing Activities | ||||||||||
Purchase of fixed income securities, held-to-maturity | — | (4,235 | ) | (3,316 | ) | |||||
Purchase of fixed income securities, available-for-sale | (2,130,362 | ) | (1,982,023 | ) | (1,041,916 | ) | ||||
Purchase of equity securities, available-for-sale | (61,931 | ) | (35,490 | ) | (195,720 | ) | ||||
Purchase of other investments | (55,830 | ) | (66,164 | ) | (12,170 | ) | ||||
Purchase of short-term investments | (4,280,553 | ) | (3,499,380 | ) | (1,602,327 | ) | ||||
Sale of fixed income securities, available-for-sale | 1,197,920 | 926,470 | 61,571 | |||||||
Sale of short-term investments | 4,338,318 | 3,470,022 | 1,539,480 | |||||||
Redemption and maturities of fixed income securities, held-to-maturity | 58,832 | 102,868 | 106,621 | |||||||
Redemption and maturities of fixed income securities, available-for-sale | 555,216 | 641,524 | 567,445 | |||||||
Sale of equity securities, available-for-sale | 37,960 | 119,617 | 172,561 | |||||||
Distributions from other investments | 23,426 | 26,837 | 32,457 | |||||||
Purchase of property and equipment | (14,071 | ) | (18,147 | ) | (16,229 | ) | ||||
Net cash used in investing activities | (331,075 | ) | (318,101 | ) | (391,543 | ) | ||||
Financing Activities | ||||||||||
Dividends to stockholders | (37,045 | ) | (33,758 | ) | (31,052 | ) | ||||
Acquisition of treasury stock | (6,015 | ) | (4,992 | ) | (4,182 | ) | ||||
Net proceeds from stock purchase and compensation plans | 7,599 | 7,811 | 10,089 | |||||||
Proceeds from borrowings | 84,000 | 165,000 | 15,000 | |||||||
Repayment of borrowings | (84,000 | ) | (115,000 | ) | — | |||||
Excess tax benefits from share-based payment arrangements | — | 1,819 | 1,736 | |||||||
Repayment of capital lease obligations | (4,121 | ) | (5,002 | ) | (4,689 | ) | ||||
Net cash (used in) provided by financing activities | (39,582 | ) | 15,878 | (13,098 | ) | |||||
Net increase (decrease) in cash | 76 | (440 | ) | (23,061 | ) | |||||
Cash, beginning of year | 458 | 898 | 23,959 | |||||||
Cash, end of year | $ | 534 | 458 | 898 |
Consolidated Statements of Stockholders’ Equity | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
($ in thousands, except share and per share amounts) | 2020 | 2019 | 2018 | |||||||||||||||||
Preferred stock: | ||||||||||||||||||||
Beginning of year | $ | 0 | 0 | 0 | ||||||||||||||||
Issuance of preferred stock | 200,000 | 0 | 0 | |||||||||||||||||
End of year | 200,000 | 0 | 0 | |||||||||||||||||
Common stock: | ||||||||||||||||||||
Beginning of year | 206,968 | 205,697 | 204,569 | |||||||||||||||||
Dividend reinvestment plan | 58 | 44 | 47 | |||||||||||||||||
Stock purchase and compensation plans | 1,040 | 1,227 | 1,081 | |||||||||||||||||
End of year | 208,066 | 206,968 | 205,697 | |||||||||||||||||
Additional paid-in capital: | ||||||||||||||||||||
Beginning of year | 418,521 | 390,315 | 367,717 | |||||||||||||||||
Dividend reinvestment plan | 1,645 | 1,510 | 1,379 | |||||||||||||||||
Preferred stock issuance costs | (5,416) | 0 | 0 | |||||||||||||||||
Stock purchase and compensation plans | 24,235 | 26,696 | 21,219 | |||||||||||||||||
End of year | 438,985 | 418,521 | 390,315 | |||||||||||||||||
Retained earnings: | ||||||||||||||||||||
Beginning of year, as previously reported | 2,080,529 | 1,858,414 | 1,698,613 | |||||||||||||||||
Cumulative effect adjustment due to adoption of equity security guidance, net of tax | 0 | 0 | 30,726 | |||||||||||||||||
Cumulative effect adjustment due to adoption of stranded deferred tax guidance | 0 | 0 | (5,707) | |||||||||||||||||
Cumulative effect adjustment due to adoption of lease guidance, net of tax | 0 | 342 | 0 | |||||||||||||||||
Cumulative effect adjustment due to adoption of guidance on allowance for credit losses, net of tax (Note 3) | 1,435 | 0 | 0 | |||||||||||||||||
Balance at beginning of year, as adjusted | 2,081,964 | 1,858,756 | 1,723,632 | |||||||||||||||||
Net income | 246,355 | 271,623 | 178,939 | |||||||||||||||||
Dividends to preferred stockholders | 0 | 0 | 0 | |||||||||||||||||
Dividends to common stockholders | (56,782) | (49,850) | (44,157) | |||||||||||||||||
End of year | 2,271,537 | 2,080,529 | 1,858,414 | |||||||||||||||||
Accumulated other comprehensive income (loss): | ||||||||||||||||||||
Beginning of year, as previously reported | 81,750 | (77,956) | 20,170 | |||||||||||||||||
Cumulative effect adjustment due to adoption of equity security guidance, net of tax | 0 | 0 | (30,726) | |||||||||||||||||
Cumulative effect adjustment due to adoption of stranded deferred tax guidance | 0 | 0 | 5,707 | |||||||||||||||||
Balance at beginning of year, as adjusted | 81,750 | (77,956) | (4,849) | |||||||||||||||||
Other comprehensive income (loss) | 138,436 | 159,706 | (73,107) | |||||||||||||||||
End of year | 220,186 | 81,750 | (77,956) | |||||||||||||||||
Treasury stock: | ||||||||||||||||||||
Beginning of year | (592,832) | (584,668) | (578,112) | |||||||||||||||||
Acquisition of treasury stock | (7,053) | (8,164) | (6,556) | |||||||||||||||||
End of year | (599,885) | (592,832) | (584,668) | |||||||||||||||||
Total stockholders’ equity | $ | 2,738,889 | 2,194,936 | 1,791,802 | ||||||||||||||||
Dividends declared per preferred share | $ | 0 | 0 | 0 | ||||||||||||||||
Dividends declared per common share | $ | 0.94 | 0.83 | 0.74 | ||||||||||||||||
Preferred Stock, shares outstanding: | ||||||||||||||||||||
Beginning of year | 0 | 0 | 0 | |||||||||||||||||
Issuance of preferred stock | 8,000 | 0 | 0 | |||||||||||||||||
End of year | 8,000 | 0 | 0 | |||||||||||||||||
Common Stock, shares outstanding: | ||||||||||||||||||||
Beginning of year | 59,461,153 | 58,948,554 | 58,495,122 | |||||||||||||||||
Dividend reinvestment plan | 28,890 | 22,087 | 23,493 | |||||||||||||||||
Stock purchase and compensation plan | 519,863 | 613,678 | 540,337 | |||||||||||||||||
Acquisition of treasury stock | (104,103) | (123,166) | (110,398) | |||||||||||||||||
End of year | 59,905,803 | 59,461,153 | 58,948,554 |
Consolidated Statements of Cash Flows | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
($ in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||
Operating Activities | ||||||||||||||||||||
Net income | $ | 246,355 | 271,623 | 178,939 | ||||||||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||||||||||
Depreciation and amortization | 59,350 | 55,205 | 44,874 | |||||||||||||||||
Stock-based compensation expense | 16,227 | 19,077 | 14,507 | |||||||||||||||||
Undistributed gains of equity method investments | (12,408) | (12,773) | (8,341) | |||||||||||||||||
Distributions in excess of current year income of equity method investments | 3,472 | 2,807 | 2,924 | |||||||||||||||||
Net realized and unrealized losses (gains) | 4,217 | (14,422) | 54,923 | |||||||||||||||||
Loss on disposal of fixed assets | 22 | 42 | 63 | |||||||||||||||||
Changes in assets and liabilities: | ||||||||||||||||||||
Increase in reserves for loss and loss expense, net of reinsurance recoverables | 181,839 | 149,232 | 168,288 | |||||||||||||||||
Increase in unearned premiums, net of prepaid reinsurance | 91,278 | 82,253 | 78,058 | |||||||||||||||||
Decrease in net federal income taxes | 7,708 | 7,721 | 2,428 | |||||||||||||||||
Increase in premiums receivable | (13,171) | (53,383) | (23,489) | |||||||||||||||||
Increase in deferred policy acquisition costs | (17,392) | (18,574) | (17,557) | |||||||||||||||||
Increase in interest and dividends due or accrued | (158) | (3,226) | (540) | |||||||||||||||||
Decrease in accrued salaries and benefits | (13,264) | (3,748) | (26,418) | |||||||||||||||||
Increase in other assets | (27,927) | (39,337) | (372) | |||||||||||||||||
Increase (decrease) in other liabilities | 27,897 | 34,998 | (13,343) | |||||||||||||||||
Net cash provided by operating activities | 554,045 | 477,495 | 454,944 | |||||||||||||||||
Investing Activities | ||||||||||||||||||||
Purchase of fixed income securities, held-to-maturity | 0 | 0 | (7,150) | |||||||||||||||||
Purchase of fixed income securities, available-for-sale | (1,723,818) | (1,856,125) | (2,918,203) | |||||||||||||||||
Purchase of commercial mortgage loans | (46,506) | 0 | 0 | |||||||||||||||||
Purchase of equity securities | (230,813) | (46,397) | (94,344) | |||||||||||||||||
Purchase of other investments | (79,598) | (64,908) | (68,578) | |||||||||||||||||
Purchase of short-term investments | (5,762,725) | (6,087,909) | (4,259,734) | |||||||||||||||||
Sale of fixed income securities, available-for-sale | 487,087 | 594,743 | 2,030,664 | |||||||||||||||||
Proceeds from commercial mortgage loans | 201 | 0 | 0 | |||||||||||||||||
Sale of short-term investments | 5,635,463 | 6,129,885 | 4,101,530 | |||||||||||||||||
Redemption and maturities of fixed income securities, held-to-maturity | 3,888 | 16,149 | 12,106 | |||||||||||||||||
Redemption and maturities of fixed income securities, available-for-sale | 1,019,132 | 626,686 | 638,916 | |||||||||||||||||
Sale of equity securities | 1,320 | 137,294 | 113,339 | |||||||||||||||||
Sale of other investments | 5,375 | 17,964 | 3,497 | |||||||||||||||||
Distributions from other investments | 24,884 | 19,972 | 28,379 | |||||||||||||||||
Fixed asset disposals | 0 | 9 | 0 | |||||||||||||||||
Purchase of property and equipment | (22,064) | (30,986) | (16,110) | |||||||||||||||||
Net cash used in investing activities | (688,174) | (543,623) | (435,688) | |||||||||||||||||
Financing Activities | ||||||||||||||||||||
Dividends to preferred stockholders | 0 | 0 | 0 | |||||||||||||||||
Dividends to common stockholders | (54,486) | (47,675) | (42,097) | |||||||||||||||||
Acquisition of treasury stock | (7,053) | (8,164) | (6,556) | |||||||||||||||||
Net proceeds from stock purchase and compensation plans | 8,411 | 8,243 | 7,252 | |||||||||||||||||
Preferred stock issued, net of issuance costs | 195,063 | 0 | 0 | |||||||||||||||||
Proceeds from borrowings | 587,000 | 355,757 | 130,000 | |||||||||||||||||
Repayment of borrowings | (587,000) | (250,000) | (130,000) | |||||||||||||||||
Repayment of finance lease obligations | (550) | (977) | (5,646) | |||||||||||||||||
Net cash provided by (used in) financing activities | 141,385 | 57,184 | (47,047) | |||||||||||||||||
Net increase (decrease) in cash and restricted cash | 7,256 | (8,944) | (27,791) | |||||||||||||||||
Cash and restricted cash, beginning of year | 7,975 | 16,919 | 44,710 | |||||||||||||||||
Cash and restricted cash, end of year | $ | 15,231 | 7,975 | 16,919 |
Security Type | Methodology | ||||
Equity Securities; U.S. Treasury Notes | Equity and U.S. Treasury Note prices are received from an independent pricing service that are based on observable market transactions. We validate these prices against a second external pricing service, and if established market value comparison thresholds are breached, further analysis is performed to determine the price to be used. | ||||
Short-Term Investments | Short-term investments are |
Security Type | Methodology | ||||
Corporate Securities including preferred stocks classified as Fixed Income Securities, and U.S. Government and Government Agencies | Evaluations include obtaining relevant trade data, benchmark quotes and spreads, and incorporating this information into either spread-based or price-based evaluations as determined by the observed market data. Spread-based evaluations include: (i) creating a range of spreads for relevant maturities of each issuer based on the new issue market, secondary trading, and dealer quotes; and (ii) incorporating option adjusted spreads for issues that have early redemption features. Based on the findings in (i) and (ii) above, final spreads are derived and added to benchmark curves. Price-based evaluations include matching each issue to its best-known market maker and contacting firms that transact in these securities. | ||||
Obligations of States and Political Subdivisions | Evaluations are based on yield curves that are developed based on factors such as: (i) benchmarks to issues with interest rates near prevailing market rates; (ii) established trading spreads over widely-accepted market benchmarks; (iii) yields on new issues; and (iv) market information from third-party sources such as reportable trades, broker-dealers, or issuers. | ||||
Evaluations are based on a DCF, including: (i) generating cash flows for each tranche considering tranche-specific data, market data, and other pertinent information, such as historical performance of the underlying collateral, including net operating income generated by the underlying properties, conditional default rate assumptions, loan loss severity assumptions, consensus projections, prepayment projections, and actual pool and loan level collateral information; (ii) identifying applicable benchmark yields; and (iii) applying market-based tranche-specific spreads to determine an appropriate yield by incorporating collateral performance, tranche-level attributes, trades, bids, and offers. | |||||
Foreign Government | Evaluations are performed using a DCF model and by incorporating observed market yields of benchmarks as inputs, adjusting for varied maturities. |
Security Type | Methodology | ||||
Security Type | Methodology | ||||
7.25% Senior Notes; 6.70% Senior Notes; 5.375% Senior Notes | Based on matrix pricing models prepared by external pricing services. | ||||
Borrowings from Federal Home Loan Banks | Evaluations are performed using a DCF model based on current borrowing rates provided by the Federal Home Loan Banks that are consistent with the remaining term of the borrowing. |
Asset Category | Years | |||||||||||||
Computer hardware | 3 | |||||||||||||
Computer software | 3 | to | 5 | |||||||||||
Software licenses | 3 | to | 5 | |||||||||||
Internally developed software | 5 | |||||||||||||
Furniture and fixtures | 10 | |||||||||||||
Buildings and improvements | 5 | to | 40 |
($ in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||
Cash paid during the period for: | ||||||||||||||||||||
Interest | $ | 30,464 | 25,089 | 23,992 | ||||||||||||||||
Federal income tax | 47,000 | 55,825 | 29,193 | |||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||||||||
Operating cash flows from operating leases | 9,498 | 8,138 | 0 | |||||||||||||||||
Operating cash flows from financing leases | 15 | 16 | 0 | |||||||||||||||||
Financing cash flows from finance leases | 550 | 977 | 5,646 | |||||||||||||||||
Non-cash items: | ||||||||||||||||||||
Corporate actions related to fixed income securities, AFS1 | 55,446 | 61,369 | 52,277 | |||||||||||||||||
Corporate actions related to fixed income securities, HTM1 | 2,589 | 0 | 0 | |||||||||||||||||
Corporate actions related to equity securities1 | 10,890 | 14,250 | 944 | |||||||||||||||||
Assets acquired under finance lease arrangements | 324 | 824 | 4,119 | |||||||||||||||||
Assets acquired under operating lease arrangements | 22,390 | 13,808 | 0 | |||||||||||||||||
Non-cash purchase of property and equipment | 590 | 89 | 291 |
($ in thousands) | 2017 | 2016 | 2015 | |||||||
Cash paid during the period for: | ||||||||||
Interest | $ | 23,905 | 22,098 | 21,892 | ||||||
Federal income tax | 62,000 | 46,405 | 39,500 | |||||||
Non-cash items: | ||||||||||
Exchange of fixed income securities, AFS | 22,511 | 23,579 | 36,792 | |||||||
Exchange of fixed income securities, HTM | — | — | 15,257 | |||||||
Corporate actions related to equity securities, AFS1 | 4,725 | 3,263 | 4,239 | |||||||
Assets acquired under capital lease arrangements | 278 | 3,151 | 6,760 | |||||||
Non-cash purchase of property and equipment | — | 78 | — |
($ in thousands) | December 31, 2020 | December 31, 2019 | ||||||||||||
Cash | $ | 394 | 300 | |||||||||||
Restricted cash | 14,837 | 7,675 | ||||||||||||
Total cash and restricted cash shown in the Statements of Cash Flows | $ | 15,231 | 7,975 |
($ in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||
AFS securities: | ||||||||||||||||||||
Fixed income securities | $ | 386,380 | 215,634 | 2,302 | ||||||||||||||||
Total AFS securities | 386,380 | 215,634 | 2,302 | |||||||||||||||||
HTM securities: | ||||||||||||||||||||
Fixed income securities | 7 | 31 | 89 | |||||||||||||||||
Total HTM securities | 7 | 31 | 89 | |||||||||||||||||
Short-term securities | 6 | 23 | 0 | |||||||||||||||||
Total net unrealized gains | 386,393 | 215,688 | 2,391 | |||||||||||||||||
Deferred income tax | (81,142) | (45,294) | (502) | |||||||||||||||||
Net unrealized gains, net of deferred income tax | 305,251 | 170,394 | 1,889 | |||||||||||||||||
Cumulative effect adjustment due to accounting change for equity unrealized1 | 0 | 0 | 30,726 | |||||||||||||||||
Cumulative effect adjustment due to accounting changes for stranded tax assets1 | 0 | 0 | (17,920) | |||||||||||||||||
Increase (decrease) in net unrealized gains in OCI, net of deferred income tax | $ | 134,857 | 168,505 | (65,881) |
($ in thousands) | 2017 | 2016 | 2015 | |||||||
AFS securities: | ||||||||||
Fixed income securities | $ | 85,806 | 38,781 | 55,689 | ||||||
Equity securities | 38,894 | 25,864 | 13,235 | |||||||
Total AFS securities | 124,700 | 64,645 | 68,924 | |||||||
HTM securities: | ||||||||||
Fixed income securities | (21 | ) | 159 | 300 | ||||||
Total HTM securities | (21 | ) | 159 | 300 | ||||||
Total net unrealized gains | 124,679 | 64,804 | 69,224 | |||||||
Deferred income tax | (44,103 | ) | (22,681 | ) | (24,228 | ) | ||||
Net unrealized gains, net of deferred income tax | 80,576 | 42,123 | 44,996 | |||||||
Increase (decrease) in net unrealized gains in OCI, net of deferred income tax | $ | 38,453 | (2,873 | ) | (35,398 | ) |
December 31, 2020 | ||||||||||||||||||||||||||||||||
Cost/ | ||||||||||||||||||||||||||||||||
Amortized | Allowance for | Unrealized | Unrealized | Fair | ||||||||||||||||||||||||||||
($ in thousands) | Cost | Credit Losses | Gains | Losses | Value | |||||||||||||||||||||||||||
AFS fixed income securities: | ||||||||||||||||||||||||||||||||
U.S. government and government agencies | $ | 110,038 | 0 | 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 | ||||||||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||||
Cost/ | ||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||||||||
($ in thousands) | Cost | Gains | Losses | Value | ||||||||||||||||||||||
AFS fixed income securities: | ||||||||||||||||||||||||||
U.S. government and government agencies | $ | 112,680 | 3,506 | 0 | 116,186 | |||||||||||||||||||||
Foreign government | 18,011 | 533 | (2) | 18,542 | ||||||||||||||||||||||
Obligations of states and political subdivisions | 1,168,185 | 62,175 | (270) | 1,230,090 | ||||||||||||||||||||||
Corporate securities | 1,866,881 | 81,906 | (1,310) | 1,947,477 | ||||||||||||||||||||||
CLO and other ABS | 790,517 | 7,929 | (5,434) | 793,012 | ||||||||||||||||||||||
RMBS | 1,409,003 | 43,421 | (455) | 1,451,969 | ||||||||||||||||||||||
CMBS | 514,709 | 23,902 | (267) | 538,344 | ||||||||||||||||||||||
Total AFS fixed income securities | $ | 5,879,986 | 223,372 | (7,738) | 6,095,620 | |||||||||||||||||||||
December 31, 2017 | Net | ||||||||||||||||||
Unrealized | Unrecognized | Unrecognized | |||||||||||||||||
Amortized | Gains | Carrying | Holding | Holding | Fair | ||||||||||||||
($ in thousands) | Cost | (Losses) | Value | Gains | Losses | Value | |||||||||||||
Obligations of state and political subdivisions | $ | 25,154 | 84 | 25,238 | 1,023 | — | 26,261 | ||||||||||||
Corporate securities | 16,996 | (105 | ) | 16,891 | 1,003 | (55 | ) | 17,839 | |||||||||||
Total HTM fixed income securities | $ | 42,150 | (21 | ) | 42,129 | 2,026 | (55 | ) | 44,100 |
2020 | |||||||||||||||||||||||||||||||||||
($ in thousands) | Beginning Balance | Current Provisions for Securities without Prior Allowance | Increase (Decrease) on Securities with Prior Allowance, excluding intent (or Requirements) to Sell Securities | Reductions for Securities Sold | Reductions for Securities Identified as Intent (or Requirement) to Sell during the Period | Ending Balance | |||||||||||||||||||||||||||||
Foreign Government | $ | 0 | 19 | 0 | (18) | 0 | 1 | ||||||||||||||||||||||||||||
Obligations of states and political subdivisons | 0 | 4 | 0 | 0 | 0 | 4 | |||||||||||||||||||||||||||||
Corporate Securities | 0 | 3,645 | 0 | (781) | (82) | 2,782 | |||||||||||||||||||||||||||||
CLO and other ABS | 0 | 722 | 0 | (113) | (17) | 592 | |||||||||||||||||||||||||||||
RMBS | 0 | 623 | 0 | (62) | 0 | 561 | |||||||||||||||||||||||||||||
CMBS | 0 | 29 | 0 | 0 | 0 | 29 | |||||||||||||||||||||||||||||
Total AFS fixed income securities | $ | 0 | 5,042 | 0 | (974) | (99) | 3,969 |
December 31, 2016 | Net | ||||||||||||||||||
Unrealized | Unrecognized | Unrecognized | |||||||||||||||||
Amortized | Gains | Carrying | Holding | Holding | Fair | ||||||||||||||
($ in thousands) | Cost | (Losses) | Value | Gains | Losses | Value | |||||||||||||
Obligations of state and political subdivisions | 77,466 | 317 | 77,783 | 2,133 | — | 79,916 | |||||||||||||
Corporate securities | 22,711 | (143 | ) | 22,568 | 1,665 | (158 | ) | 24,075 | |||||||||||
CMBS | 1,220 | (15 | ) | 1,205 | 15 | — | 1,220 | ||||||||||||
Total HTM fixed income securities | $ | 101,397 | 159 | 101,556 | 3,813 | (158 | ) | 105,211 |
December 31, 2017 | |||||||||||||
Cost/ | |||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||
($ in thousands) | Cost | Gains | Losses | Value | |||||||||
AFS fixed income securities: | |||||||||||||
U.S. government and government agencies | $ | 49,326 | 647 | (233 | ) | 49,740 | |||||||
Foreign government | 18,040 | 526 | (11 | ) | 18,555 | ||||||||
Obligations of states and political subdivisions | 1,539,307 | 44,245 | (582 | ) | 1,582,970 | ||||||||
Corporate securities | 1,588,339 | 30,891 | (1,762 | ) | 1,617,468 | ||||||||
CLO and other ABS | 789,152 | 6,508 | (202 | ) | 795,458 | ||||||||
CMBS | 382,727 | 1,563 | (841 | ) | 383,449 | ||||||||
RMBS | 709,825 | 6,487 | (1,430 | ) | 714,882 | ||||||||
Total AFS fixed income securities | 5,076,716 | 90,867 | (5,061 | ) | 5,162,522 | ||||||||
AFS equity securities: | |||||||||||||
Common stock | 129,696 | 38,287 | (226 | ) | 167,757 | ||||||||
Preferred stock | 14,115 | 904 | (71 | ) | 14,948 | ||||||||
Total AFS equity securities | 143,811 | 39,191 | (297 | ) | 182,705 | ||||||||
Total AFS securities | $ | 5,220,527 | 130,058 | (5,358 | ) | 5,345,227 |
December 31, 2016 | |||||||||||||
Cost/ | |||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||
($ in thousands) | Cost | Gains | Losses | Value | |||||||||
AFS fixed income securities: | |||||||||||||
U.S. government and government agencies | $ | 75,139 | 2,230 | (36 | ) | 77,333 | |||||||
Foreign government | 26,559 | 322 | (16 | ) | 26,865 | ||||||||
Obligations of states and political subdivisions | 1,366,287 | 18,610 | (5,304 | ) | 1,379,593 | ||||||||
Corporate securities | 1,976,556 | 27,057 | (5,860 | ) | 1,997,753 | ||||||||
CLO and other ABS | 527,876 | 1,439 | (355 | ) | 528,960 | ||||||||
CMBS | 256,356 | 1,514 | (1,028 | ) | 256,842 | ||||||||
RMBS | 524,986 | 3,006 | (2,798 | ) | 525,194 | ||||||||
Total AFS fixed income securities | 4,753,759 | 54,178 | (15,397 | ) | 4,792,540 | ||||||||
AFS equity securities: | |||||||||||||
Common stock | 104,663 | 26,250 | (305 | ) | 130,608 | ||||||||
Preferred stock | 16,226 | 274 | (355 | ) | 16,145 | ||||||||
Total AFS equity securities | 120,889 | 26,524 | (660 | ) | 146,753 | ||||||||
Total AFS securities | $ | 4,874,648 | 80,702 | (16,057 | ) | 4,939,293 |
December 31, 2020 | Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||||||||||
($ in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||
AFS fixed income securities: | ||||||||||||||||||||||||||||||||||||||
U.S. government and government agencies | $ | 11,519 | (137) | 0 | 0 | 11,519 | (137) | |||||||||||||||||||||||||||||||
Foreign government | 1,122 | (3) | 0 | 0 | 1,122 | (3) | ||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | 2,223 | (11) | 0 | 0 | 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) | |||||||||||||||||||||||||||||||
December 31, 2017 | Less than 12 months | 12 months or longer | Total | ||||||||||||||||
($ in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||
AFS fixed income securities: | |||||||||||||||||||
U.S. government and government agencies | $ | 23,516 | (233 | ) | 250 | — | 23,766 | (233 | ) | ||||||||||
Foreign government | 1,481 | (11 | ) | — | — | 1,481 | (11 | ) | |||||||||||
Obligations of states and political subdivisions | 107,514 | (422 | ) | 14,139 | (160 | ) | 121,653 | (582 | ) | ||||||||||
Corporate securities | 238,326 | (1,744 | ) | 3,228 | (18 | ) | 241,554 | (1,762 | ) | ||||||||||
CLO and other ABS | 74,977 | (196 | ) | 1,655 | (6 | ) | 76,632 | (202 | ) | ||||||||||
CMBS | 154,267 | (773 | ) | 5,214 | (68 | ) | 159,481 | (841 | ) | ||||||||||
RMBS | 269,485 | (1,285 | ) | 11,200 | (145 | ) | 280,685 | (1,430 | ) | ||||||||||
Total AFS fixed income securities | 869,566 | (4,664 | ) | 35,686 | (397 | ) | 905,252 | (5,061 | ) | ||||||||||
AFS equity securities: | |||||||||||||||||||
Common stock | 4,727 | (226 | ) | — | — | 4,727 | (226 | ) | |||||||||||
Preferred stock | 3,833 | (71 | ) | — | — | 3,833 | (71 | ) | |||||||||||
Total AFS equity securities | 8,560 | (297 | ) | — | — | 8,560 | (297 | ) | |||||||||||
Total AFS securities | $ | 878,126 | (4,961 | ) | 35,686 | (397 | ) | 913,812 | (5,358 | ) |
December 31, 2019 | Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||||||||||
($ in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||
AFS fixed income securities: | ||||||||||||||||||||||||||||||||||||||
U.S. government and government agencies | $ | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||
Foreign government | 1,416 | (2) | 0 | 0 | 1,416 | (2) | ||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | 35,838 | (270) | 0 | 0 | 35,838 | (270) | ||||||||||||||||||||||||||||||||
Corporate securities | 84,832 | (480) | 20,182 | (830) | 105,014 | (1,310) | ||||||||||||||||||||||||||||||||
CLO and other ABS | 205,191 | (1,938) | 204,385 | (3,496) | 409,576 | (5,434) | ||||||||||||||||||||||||||||||||
RMBS | 126,089 | (425) | 5,375 | (30) | 131,464 | (455) | ||||||||||||||||||||||||||||||||
CMBS | 62,893 | (264) | 828 | (3) | 63,721 | (267) | ||||||||||||||||||||||||||||||||
Total AFS fixed income securities | $ | 516,259 | (3,379) | 230,770 | (4,359) | 747,029 | (7,738) | |||||||||||||||||||||||||||||||
December 31, 2016 | Less than 12 months | 12 months or longer | Total | ||||||||||||||||||
($ in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||
AFS fixed income securities: | |||||||||||||||||||||
U.S. government and government agencies | $ | 6,419 | (36 | ) | — | — | $ | 6,419 | $ | (36 | ) | ||||||||||
Foreign government | 13,075 | (16 | ) | — | — | 13,075 | (16 | ) | |||||||||||||
Obligations of states and political subdivisions | 306,509 | (5,304 | ) | — | — | 306,509 | (5,304 | ) | |||||||||||||
Corporate securities | 462,902 | (5,771 | ) | 4,913 | (89 | ) | 467,815 | (5,860 | ) | ||||||||||||
CLO and other ABS | 189,795 | (354 | ) | 319 | (1 | ) | 190,114 | (355 | ) | ||||||||||||
CMBS | 82,492 | (1,021 | ) | 1,645 | (7 | ) | 84,137 | (1,028 | ) | ||||||||||||
RMBS | 279,480 | (2,489 | ) | 8,749 | (309 | ) | 288,229 | (2,798 | ) | ||||||||||||
Total AFS fixed income securities | 1,340,672 | (14,991 | ) | 15,626 | (406 | ) | 1,356,298 | (15,397 | ) | ||||||||||||
AFS equity securities: | |||||||||||||||||||||
Common stock | 11,271 | (305 | ) | — | — | 11,271 | (305 | ) | |||||||||||||
Preferred stock | 6,168 | (355 | ) | — | — | 6,168 | (355 | ) | |||||||||||||
Total AFS equity securities | 17,439 | (660 | ) | — | — | 17,439 | (660 | ) | |||||||||||||
Total AFS securities | $ | 1,358,111 | (15,651 | ) | 15,626 | (406 | ) | $ | 1,373,737 | $ | (16,057 | ) |
AFS | HTM | AFS | HTM | |||||||||||||||||||||||||||
($ in thousands) | Fair Value | Carrying Value | Fair Value | ($ in thousands) | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||||||
Due in one year or less | $ | 315,857 | 10,997 | 11,168 | Due in one year or less | $ | 433,241 | 1,132 | 1,149 | |||||||||||||||||||||
Due after one year through five years | 2,099,529 | 23,035 | 24,235 | Due after one year through five years | 3,639,658 | 15,692 | 16,852 | |||||||||||||||||||||||
Due after five years through 10 years | 2,510,294 | 8,097 | 8,697 | Due after five years through 10 years | 1,910,480 | 0 | 0 | |||||||||||||||||||||||
Due after 10 years | 236,842 | — | — | Due after 10 years | 472,549 | 0 | 0 | |||||||||||||||||||||||
Total fixed income securities | $ | 5,162,522 | 42,129 | 44,100 | Total fixed income securities | $ | 6,455,928 | 16,824 | 18,001 |
Other Investments | December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||||
($ in thousands) | Carrying Value | Remaining Commitment | Maximum Exposure to Loss1 | Carrying Value | Remaining Commitment | Maximum Exposure to Loss1 | ||||||||||||||||||||||||||||||||
Alternative Investments | ||||||||||||||||||||||||||||||||||||||
Private equity | $ | 157,276 | 100,905 | 258,181 | 118,352 | 93,138 | 211,490 | |||||||||||||||||||||||||||||||
Private credit | 54,017 | 98,330 | 152,347 | 42,532 | 105,340 | 147,872 | ||||||||||||||||||||||||||||||||
Real assets | 19,659 | 16,493 | 36,152 | 23,256 | 20,741 | 43,997 | ||||||||||||||||||||||||||||||||
Total alternative investments | 230,952 | 215,728 | 446,680 | 184,140 | 219,219 | 403,359 | ||||||||||||||||||||||||||||||||
Other securities | 35,370 | 0 | 35,370 | 32,667 | 0 | 32,667 | ||||||||||||||||||||||||||||||||
Total other investments | $ | 266,322 | 215,728 | 482,050 | 216,807 | 219,219 | 436,026 |
Other Investments | December 31, 2017 | December 31, 2016 | |||||||||||||||||
($ in thousands) | Carrying Value | Remaining Commitment | Maximum Exposure to Loss1 | Carrying Value | Remaining Commitment | Maximum Exposure to Loss1 | |||||||||||||
Alternative Investments | |||||||||||||||||||
Private equity | $ | 52,251 | 99,026 | 151,277 | 41,135 | 76,774 | 117,909 | ||||||||||||
Private credit | 37,743 | 94,959 | 132,702 | 28,193 | 40,613 | 68,806 | |||||||||||||
Real assets | 25,379 | 27,014 | 52,393 | 14,486 | 22,899 | 37,385 | |||||||||||||
Total alternative investments | 115,373 | 220,999 | 336,372 | 83,814 | 140,286 | 224,100 | |||||||||||||
Other securities2 | 16,895 | — | 16,895 | 18,583 | 3,400 | 21,983 | |||||||||||||
Total other investments | $ | 132,268 | 220,999 | 353,267 | 102,397 | 143,686 | 246,083 |
Balance Sheet Information | ||||||||||||||
December 31, | ||||||||||||||
($ in millions) | 2020 | 2019 | ||||||||||||
Investments | $ | 55,145 | 43,857 | |||||||||||
Total assets | 58,819 | 45,432 | ||||||||||||
Total liabilities | 6,744 | 5,670 | ||||||||||||
Total partners’ capital | 52,075 | 39,762 |
Balance Sheet Information | |||||||
September 30, | |||||||
($ in millions) | 2017 | 2016 | |||||
Investments | $ | 21,046 | 11,244 | ||||
Total assets | 22,357 | 12,075 | |||||
Total liabilities | 4,767 | 1,802 | |||||
Total partners’ capital | 17,590 | 10,273 |
Income Statement Information | Income Statement Information | |||||||||||||||||||||||||||||
12 months ended September 30, | 12 months ended September 30, | |||||||||||||||||||||||||||||
($ in millions) | 2017 | 2016 | 2015 | ($ in millions) | 2020 | 2019 | 2018 | |||||||||||||||||||||||
Net investment (loss) income | $ | (143 | ) | (44 | ) | 129 | Net investment (loss) income | $ | (26) | (8) | 134 | |||||||||||||||||||
Realized gains | 325 | 1,374 | 1,187 | Realized gains | 1,452 | 695 | 1,981 | |||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) | 2,894 | (719 | ) | (1,364 | ) | |||||||||||||||||||||||||
Net income | $ | 3,076 | 611 | (48 | ) | |||||||||||||||||||||||||
Net change in unrealized appreciation | Net change in unrealized appreciation | 4,898 | 5,543 | 1,303 | ||||||||||||||||||||||||||
Net income before tax | Net income before tax | $ | 6,324 | 6,230 | 3,418 | |||||||||||||||||||||||||
Insurance Subsidiaries' alternative investments income (loss) | 12.7 | 3.1 | (1.9 | ) | ||||||||||||||||||||||||||
Alternative investment income included in "Net investment income earned" on our Consolidated Statements of Income | Alternative investment income included in "Net investment income earned" on our Consolidated Statements of Income | 26.5 | 17.9 | 17.6 |
($ in millions) | FHLBI Collateral | FHLBNY Collateral | State and Regulatory Deposits | Total | ||||||||||||||||||||||
U.S. government and government agencies | $ | 0 | 0 | 20.1 | 20.1 | |||||||||||||||||||||
Obligations of states and political subdivisions | 0 | 0 | 5.1 | 5.1 | ||||||||||||||||||||||
RMBS | 125.0 | 178.1 | 0 | 303.1 | ||||||||||||||||||||||
CMBS | 7.0 | 36.3 | 0 | 43.3 | ||||||||||||||||||||||
Total pledged as collateral | $ | 132.0 | 214.4 | 25.2 | 371.6 |
($ in millions) | FHLBI Collateral | FHLBNY Collateral | State and Regulatory Deposits | Total | |||||||||
U.S. government and government agencies | $ | 3.0 | — | 22.6 | 25.6 | ||||||||
Obligations of states and political subdivisions | — | — | 3.1 | 3.1 | |||||||||
CMBS | 6.2 | 14.1 | — | 20.3 | |||||||||
RMBS | 56.3 | 59.6 | — | 115.9 | |||||||||
Total pledged as collateral | $ | 65.5 | 73.7 | 25.7 | 164.9 |
($ in thousands) | 2017 | 2016 | 2015 | ($ in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||||||||
Fixed income securities | $ | 153,230 | 129,306 | 123,230 | Fixed income securities | $ | 203,926 | 203,255 | 178,104 | |||||||||||||||||||||
CMLs | CMLs | 844 | 0 | 0 | ||||||||||||||||||||||||||
Equity securities | 6,442 | 7,368 | 9,161 | Equity securities | 9,286 | 6,996 | 7,764 | |||||||||||||||||||||||
Short-term investments | 1,526 | 686 | 112 | Short-term investments | 1,821 | 6,653 | 3,472 | |||||||||||||||||||||||
Other investments | 12,871 | 2,940 | (1,890 | ) | Other investments | 26,922 | 18,778 | 17,799 | ||||||||||||||||||||||
Investment expenses | (12,187 | ) | (9,546 | ) | (9,297 | ) | Investment expenses | (15,692) | (13,139) | (11,803) | ||||||||||||||||||||
Net investment income earned | $ | 161,882 | 130,754 | 121,316 | Net investment income earned | $ | 227,107 | 222,543 | 195,336 |
2017 | Recognized in Earnings | |||||||||
($ in thousands) | Gross | Included in OCI | ||||||||
AFS fixed income securities: | ||||||||||
U.S. government and government agencies | $ | 36 | — | 36 | ||||||
Obligations of states and political subdivisions | 612 | — | 612 | |||||||
Corporate securities | 587 | — | 587 | |||||||
CLO and other ABS | 96 | — | 96 | |||||||
CMBS | 670 | — | 670 | |||||||
RMBS | 1,183 | (36 | ) | 1,219 | ||||||
Total AFS fixed income securities | 3,184 | (36 | ) | 3,220 | ||||||
AFS equity securities: | ||||||||||
Common stock | 1,435 | — | 1,435 | |||||||
Total AFS equity securities | 1,435 | — | 1,435 | |||||||
Other investments | $ | 190 | — | 190 | ||||||
Total OTTI losses | $ | 4,809 | (36 | ) | 4,845 |
($ in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||
Gross gains on sales | $ | 18,893 | 31,910 | 28,672 | ||||||||||||||||
Gross losses on sales | (9,745) | (5,195) | (47,647) | |||||||||||||||||
Net realized gains (losses) on disposals | 9,148 | 26,715 | (18,975) | |||||||||||||||||
Net unrealized gains (losses) on equity securities | 7,939 | (8,649) | (29,369) | |||||||||||||||||
Net credit loss (expense) benefit on fixed maturities, AFS | (5,042) | |||||||||||||||||||
Net credit loss benefit (expense) on fixed maturities, HTM | 4 | |||||||||||||||||||
Losses on securities for which we have the intent to sell | (16,266) | |||||||||||||||||||
Net OTTI losses recognized in earnings | (3,644) | (6,579) | ||||||||||||||||||
Net realized and unrealized gains (losses) | $ | (4,217) | 14,422 | (54,923) |
2016 | Recognized in Earnings | |||||||||
($ in thousands) | Gross | Included in OCI | ||||||||
AFS fixed income securities: | ||||||||||
Obligations of states and political subdivisons | $ | 2,797 | — | 2,797 | ||||||
Corporate securities | 1,880 | — | 1,880 | |||||||
CLO and other ABS | 19 | — | 19 | |||||||
CMBS | 220 | — | 220 | |||||||
RMBS | 275 | 10 | 265 | |||||||
Total AFS fixed income securities | 5,191 | 10 | 5,181 | |||||||
AFS equity securities: | ||||||||||
Common stock | 3,316 | — | 3,316 | |||||||
Preferred stock | 2 | — | 2 | |||||||
Total AFS equity securities | 3,318 | — | 3,318 | |||||||
Total OTTI losses | $ | 8,509 | 10 | 8,499 |
2015 | Recognized in Earnings | |||||||||
($ in thousands) | Gross | Included in OCI | ||||||||
AFS fixed income securities: | ||||||||||
Corporate securities | $ | 2,188 | — | 2,188 | ||||||
RMBS | 1 | — | 1 | |||||||
Total AFS fixed income securities | 2,189 | — | 2,189 | |||||||
AFS equity securities: | ||||||||||
Common stock | 15,996 | — | 15,996 | |||||||
Preferred stock | 181 | — | 181 | |||||||
Total AFS equity securities | 16,177 | — | 16,177 | |||||||
Total OTTI losses | $ | 18,366 | — | 18,366 |
($ in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||
Unrealized gains (losses) recognized in income on equity securities: | ||||||||||||||||||||
On securities remaining in our portfolio at end of period | $ | 7,936 | 1,219 | (3,098) | ||||||||||||||||
On securities sold in period | 3 | (9,868) | (26,271) | |||||||||||||||||
Total unrealized (losses) recognized in income on equity securities | $ | 7,939 | (8,649) | (29,369) |
($ in thousands) | 2017 | 2016 | 2015 | |||||||
HTM fixed income securities | ||||||||||
Gains | $ | 44 | 3 | 5 | ||||||
Losses | (1 | ) | (1 | ) | (1 | ) | ||||
AFS fixed income securities | ||||||||||
Gains | 10,193 | 7,741 | 4,515 | |||||||
Losses | (3,292 | ) | (11,411 | ) | (312 | ) | ||||
AFS equity securities | ||||||||||
Gains | 5,829 | 8,108 | 29,168 | |||||||
Losses | (1,200 | ) | (864 | ) | (1,347 | ) | ||||
Short-term investments | ||||||||||
Gains | 2 | — | — | |||||||
Losses | (6 | ) | (13 | ) | — | |||||
Other investments | ||||||||||
Gains | 494 | 3 | 162 | |||||||
Losses | (859 | ) | (4 | ) | (653 | ) | ||||
Total net realized investment gains | $ | 11,204 | 3,562 | 31,537 |
2020 | ||||||||||||||||||||
($ in thousands) | Gross | Tax | Net | |||||||||||||||||
Net income | $ | 302,988 | 56,633 | 246,355 | ||||||||||||||||
Components of OCI: | ||||||||||||||||||||
Unrealized gains (losses) on investment securities: | ||||||||||||||||||||
Unrealized holding gains during the year | 168,487 | 35,383 | 133,104 | |||||||||||||||||
Unrealized losses on securities with credit loss recognized in earnings | (8,176) | (1,717) | (6,459) | |||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
HTM securities | (24) | (5) | (19) | |||||||||||||||||
Net realized losses on disposals and losses on intent-to-sell AFS securities | 5,376 | 1,129 | 4,247 | |||||||||||||||||
Credit loss expense | 5,042 | 1,058 | 3,984 | |||||||||||||||||
Total unrealized gains on investment securities | 170,705 | 35,848 | 134,857 | |||||||||||||||||
Defined benefit pension and post-retirement plans: | ||||||||||||||||||||
Net actuarial gain | 1,515 | 318 | 1,197 | |||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
Net actuarial loss | 3,015 | 633 | 2,382 | |||||||||||||||||
Total defined benefit pension and post-retirement plans | 4,530 | 951 | 3,579 | |||||||||||||||||
Other comprehensive income | 175,235 | 36,799 | 138,436 | |||||||||||||||||
Comprehensive income | $ | 478,223 | 93,432 | 384,791 |
2019 | ||||||||||||||||||||
($ in thousands) | Gross | Tax | Net | |||||||||||||||||
Net income | $ | 336,390 | 64,767 | 271,623 | ||||||||||||||||
Components of OCI: | ||||||||||||||||||||
Unrealized gains (losses) on investment securities: | ||||||||||||||||||||
Unrealized holding gains during the year | 212,683 | 44,662 | 168,021 | |||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
HTM securities | (58) | (12) | (46) | |||||||||||||||||
Realized losses on disposals and OTTI of AFS securities | 671 | 141 | 530 | |||||||||||||||||
Total unrealized gains on investment securities | 213,296 | 44,791 | 168,505 | |||||||||||||||||
Defined benefit pension and post-retirement plans: | ||||||||||||||||||||
Net actuarial loss | (13,795) | (2,897) | (10,898) | |||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
Net actuarial loss | 2,657 | 558 | 2,099 | |||||||||||||||||
Total defined benefit pension and post-retirement plans | (11,138) | (2,339) | (8,799) | |||||||||||||||||
Other comprehensive income | 202,158 | 42,452 | 159,706 | |||||||||||||||||
Comprehensive income | $ | 538,548 | 107,219 | 431,329 |
2018 | ||||||||||||||||||||
($ in thousands) | Gross | Tax | Net | |||||||||||||||||
Net income | $ | 211,721 | 32,782 | 178,939 | ||||||||||||||||
Components of OCI: | ||||||||||||||||||||
Unrealized (losses) gains on investment securities: | ||||||||||||||||||||
Unrealized holding losses during the year | (123,145) | (25,861) | (97,284) | |||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
HTM securities | 110 | 23 | 87 | |||||||||||||||||
Realized losses on disposals and OTTI of AFS securities | 39,641 | 8,325 | 31,316 | |||||||||||||||||
Total unrealized losses on investment securities | (83,394) | (17,513) | (65,881) | |||||||||||||||||
Defined benefit pension and post-retirement plans: | ||||||||||||||||||||
Net actuarial loss | (11,273) | (2,367) | (8,906) | |||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
Net actuarial loss | 2,127 | 447 | 1,680 | |||||||||||||||||
Total defined benefit pension and post-retirement plans | (9,146) | (1,920) | (7,226) | |||||||||||||||||
Other comprehensive loss | (92,540) | (19,433) | (73,107) | |||||||||||||||||
Comprehensive income | $ | 119,181 | 13,349 | 105,832 |
2017 | ||||||||||
($ in thousands) | Gross | Tax | Net | |||||||
Net income | $ | 261,968 | 93,142 | 168,826 | ||||||
Components of OCI: | ||||||||||
Unrealized gains (losses) on investment securities: | ||||||||||
Unrealized holding gains during the year | 66,894 | 23,879 | 43,015 | |||||||
Non-credit portion of OTTI recognized in OCI | 36 | 13 | 23 | |||||||
Amounts reclassified into net income: | ||||||||||
HTM securities | (179 | ) | (63 | ) | (116 | ) | ||||
Non-credit OTTI | 104 | 36 | 68 | |||||||
Realized gains on AFS securities | (6,979 | ) | (2,442 | ) | (4,537 | ) | ||||
Net unrealized gains | 59,876 | 21,423 | 38,453 | |||||||
Defined benefit pension and post-retirement plans: | ||||||||||
Net actuarial loss | (4,684 | ) | (984 | ) | (3,700 | ) | ||||
Amounts reclassified into net income: | ||||||||||
Net actuarial loss | 2,102 | 735 | 1,367 | |||||||
Defined benefit pension and post-retirement plans | (2,582 | ) | (249 | ) | (2,333 | ) | ||||
Other comprehensive income | 57,294 | 21,174 | 36,120 | |||||||
Comprehensive income | $ | 319,262 | 114,316 | 204,946 |
2016 | ||||||||||
($ in thousands) | Gross | Tax | Net | |||||||
Net income | $ | 219,955 | 61,460 | 158,495 | ||||||
Components of OCI: | ||||||||||
Unrealized (losses) gains on investment securities: | ||||||||||
Unrealized holding losses during the year | (9,195 | ) | (3,218 | ) | (5,977 | ) | ||||
Non-credit portion of OTTI recognized in OCI | (10 | ) | (4 | ) | (6 | ) | ||||
Amounts reclassified into net income: | ||||||||||
HTM securities | (141 | ) | (49 | ) | (92 | ) | ||||
Non-credit OTTI | 213 | 75 | 138 | |||||||
Realized losses on AFS securities | 4,713 | 1,649 | 3,064 | |||||||
Net unrealized losses | (4,420 | ) | (1,547 | ) | (2,873 | ) | ||||
Defined benefit pension and post-retirement plans: | ||||||||||
Net actuarial loss | (12,079 | ) | (4,227 | ) | (7,852 | ) | ||||
Amounts reclassified into net income: | �� | |||||||||
Net actuarial loss | 6,462 | 2,262 | 4,200 | |||||||
Defined benefit pension and post-retirement plans | (5,617 | ) | (1,965 | ) | (3,652 | ) | ||||
Other comprehensive loss | (10,037 | ) | (3,512 | ) | (6,525 | ) | ||||
Comprehensive income | $ | 209,918 | 57,948 | 151,970 |
2015 | ||||||||||
($ in thousands) | Gross | Tax | Net | |||||||
Net income | $ | 232,692 | 66,831 | 165,861 | ||||||
Components of OCI: | ||||||||||
Unrealized (losses) gains on investment securities: | ||||||||||
Unrealized holding losses during the year | (40,221 | ) | (14,078 | ) | (26,143 | ) | ||||
Amounts reclassified into net income: | ||||||||||
HTM securities | (580 | ) | (203 | ) | (377 | ) | ||||
Non-credit OTTI | 357 | 125 | 232 | |||||||
Realized gains on AFS securities | (14,016 | ) | (4,906 | ) | (9,110 | ) | ||||
Net unrealized losses | (54,460 | ) | (19,062 | ) | (35,398 | ) | ||||
Defined benefit pension and post-retirement plans: | ||||||||||
Net actuarial gain | 2,438 | 853 | 1,585 | |||||||
Amounts reclassified into net income: | ||||||||||
Net actuarial loss | 7,077 | 2,477 | 4,600 | |||||||
Defined benefit pension and post-retirement plans | 9,515 | 3,330 | 6,185 | |||||||
Other comprehensive loss | (44,945 | ) | (15,732 | ) | (29,213 | ) | ||||
Comprehensive income | $ | 187,747 | 51,099 | 136,648 |
Net Unrealized (Loss) Gain on Investment Securities | Net Unrealized (Losses) Gains on Investment Securities | Defined Benefit Pension and Post-retirement Plans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | OTTI Related | HTM Related | All Other | Investments Subtotal | Defined Benefit Pension and Post- retirement Plans | Total AOCI | ($ in thousands) | Credit Loss Related1 | HTM Related | All Other | Investments Subtotal | Total AOCI | |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2015 | $ | (282 | ) | 194 | 45,083 | 44,995 | (54,420 | ) | (9,425 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2018 | Balance, December 31, 2018 | $ | (71) | 71 | 1,888 | 1,888 | (79,844) | (77,956) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
OCI before reclassifications | (6 | ) | — | (5,977 | ) | (5,983 | ) | (7,852 | ) | (13,835 | ) | OCI before reclassifications | 0 | 0 | 168,021 | 168,021 | (10,898) | 157,123 | |||||||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from AOCI | 138 | (92 | ) | 3,064 | 3,110 | 4,200 | 7,310 | Amounts reclassified from AOCI | 0 | (46) | 530 | 484 | 2,099 | 2,583 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net current period OCI | 132 | (92 | ) | (2,913 | ) | (2,873 | ) | (3,652 | ) | (6,525 | ) | Net current period OCI | 0 | (46) | 168,551 | 168,505 | (8,799) | 159,706 | |||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2016 | (150 | ) | 102 | 42,170 | 42,122 | (58,072 | ) | (15,950 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2019 | Balance, December 31, 2019 | (71) | 25 | 170,439 | 170,393 | (88,643) | 81,750 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OCI before reclassifications | 23 | — | 43,015 | 43,038 | (3,700 | ) | 39,338 | OCI before reclassifications | (6,459) | 0 | 133,104 | 126,645 | 1,197 | 127,842 | |||||||||||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from AOCI | 68 | (116 | ) | (4,537 | ) | (4,585 | ) | 1,367 | (3,218 | ) | Amounts reclassified from AOCI | 3,984 | (19) | 4,247 | 8,212 | 2,382 | 10,594 | ||||||||||||||||||||||||||||||||||||||||||||||
Net current period OCI | 91 | (116 | ) | 38,478 | 38,453 | (2,333 | ) | 36,120 | Net current period OCI | (2,475) | (19) | 137,351 | 134,857 | 3,579 | 138,436 | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2017 | $ | (59 | ) | (14 | ) | 80,648 | 80,575 | (60,405 | ) | 20,170 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2020 | Balance, December 31, 2020 | $ | (2,546) | 6 | 307,790 | 305,250 | (85,064) | 220,186 |
($ in thousands) | Year ended December 31, 2020 | Year ended December 31, 2019 | Affected Line Item in the Consolidated Statements of Income | |||||||||||||||||
HTM related | ||||||||||||||||||||
Unrealized gains on HTM disposals | $ | (16) | (46) | Net realized and unrealized investment (losses) gains | ||||||||||||||||
Amortization of net unrealized gains on HTM securities | (8) | (12) | Net investment income earned | |||||||||||||||||
(24) | (58) | Income before federal income tax | ||||||||||||||||||
5 | 12 | Total federal income tax expense | ||||||||||||||||||
(19) | (46) | Net income | ||||||||||||||||||
Net realized losses on disposals and losses on intent-to-sell AFS securities | ||||||||||||||||||||
Net realized losses on disposals and losses on intent-to-sell AFS securities | 5,376 | 671 | Net realized and unrealized investment (losses) gains | |||||||||||||||||
5,376 | 671 | Income before federal income tax | ||||||||||||||||||
(1,129) | (141) | Total federal income tax expense | ||||||||||||||||||
4,247 | 530 | Net income | ||||||||||||||||||
Credit loss related | ||||||||||||||||||||
Credit loss expense | 5,042 | 0 | Net realized and unrealized investment (losses) gains | |||||||||||||||||
5,042 | 0 | Income before federal income tax | ||||||||||||||||||
(1,058) | 0 | Total federal income tax expense | ||||||||||||||||||
3,984 | 0 | Net income | ||||||||||||||||||
Defined benefit pension and post-retirement life plans | ||||||||||||||||||||
Net actuarial loss | 647 | 582 | Loss and loss expense incurred | |||||||||||||||||
2,368 | 2,075 | Other insurance expenses | ||||||||||||||||||
Total defined benefit pension and post-retirement life | 3,015 | 2,657 | Income before federal income tax | |||||||||||||||||
(633) | (558) | Total federal income tax expense | ||||||||||||||||||
2,382 | 2,099 | Net income | ||||||||||||||||||
Total reclassifications for the period | $ | 10,594 | 2,583 | Net income |
($ in thousands) | Year ended December 31, 2017 | Year ended December 31, 2016 | Affected Line Item in the Consolidated Statements of Income | ||||||
OTTI related | |||||||||
Non-credit OTTI on disposed securities | $ | 104 | 213 | Net realized gains (losses) | |||||
104 | 213 | Income before federal income tax | |||||||
(36 | ) | (75 | ) | Total federal income tax expense | |||||
68 | 138 | Net income | |||||||
HTM related | |||||||||
Unrealized losses on HTM disposals | 32 | 169 | Net realized gains (losses) | ||||||
Amortization of net unrealized gains on HTM securities | (211 | ) | (310 | ) | Net investment income earned | ||||
(179 | ) | (141 | ) | Income before federal income tax | |||||
63 | 49 | Total federal income tax expense | |||||||
(116 | ) | (92 | ) | Net income | |||||
Realized (losses) gains on AFS | |||||||||
Realized (losses) gains on AFS disposals | (6,979 | ) | 4,713 | Net realized gains (losses) | |||||
(6,979 | ) | 4,713 | Income before federal income tax | ||||||
2,442 | (1,649 | ) | Total federal income tax expense | ||||||
(4,537 | ) | 3,064 | Net income | ||||||
Defined benefit pension and post-retirement life plans | |||||||||
Net actuarial loss | 450 | 1,486 | Loss and loss expense incurred | ||||||
1,652 | 4,976 | Other insurance expenses | |||||||
Total defined benefit pension and post-retirement life | 2,102 | 6,462 | Income before federal income tax | ||||||
(735 | ) | (2,262 | ) | Total federal income tax expense | |||||
1,367 | 4,200 | Net income | |||||||
Total reclassifications for the period | $ | (3,218 | ) | 7,310 | Net income |
December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||
($ in thousands) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||||||||||||
Financial Liabilities | ||||||||||||||||||||||||||
Long-term debt: | ||||||||||||||||||||||||||
7.25% Senior Notes | $ | 49,914 | 66,148 | 49,910 | 66,365 | |||||||||||||||||||||
6.70% Senior Notes | 99,499 | 127,886 | 99,480 | 123,104 | ||||||||||||||||||||||
5.375% Senior Notes | 294,241 | 383,669 | 294,157 | 357,025 | ||||||||||||||||||||||
1.61% Borrowings from FHLBNY | 25,000 | 25,182 | 25,000 | 24,901 | ||||||||||||||||||||||
1.56% Borrowings from FHLBNY | 25,000 | 25,198 | 25,000 | 24,875 | ||||||||||||||||||||||
3.03% Borrowings from FHLBI | 60,000 | 67,513 | 60,000 | 63,002 | ||||||||||||||||||||||
Subtotal long-term debt | 553,654 | 695,596 | 553,547 | 659,272 | ||||||||||||||||||||||
Unamortized debt issuance costs | (3,419) | (3,687) | ||||||||||||||||||||||||
Finance lease obligations | 508 | 737 | ||||||||||||||||||||||||
Total long-term debt | $ | 550,743 | $ | 550,597 |
December 31, 2017 | December 31, 2016 | ||||||||||||
($ in thousands) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||
Financial Assets | |||||||||||||
Fixed income securities: | |||||||||||||
HTM | $ | 42,129 | 44,100 | 101,556 | 105,211 | ||||||||
AFS | 5,162,522 | 5,162,522 | 4,792,540 | 4,792,540 | |||||||||
Equity securities, AFS | 182,705 | 182,705 | 146,753 | 146,753 | |||||||||
Short-term investments | 165,555 | 165,555 | 221,701 | 221,701 | |||||||||
Long-term debt: | |||||||||||||
7.25% Senior Notes | 49,904 | 61,391 | 49,901 | 56,148 | |||||||||
6.70% Senior Notes | 99,446 | 116,597 | 99,430 | 108,333 | |||||||||
5.875% Senior Notes | 185,000 | 186,332 | 185,000 | 176,860 | |||||||||
1.61% Borrowings from FHLBNY | 25,000 | 24,270 | 25,000 | 24,286 | |||||||||
1.56% Borrowings from FHLBNY | 25,000 | 24,210 | 25,000 | 24,219 | |||||||||
3.03% Borrowings from FHLBI | 60,000 | 60,334 | 60,000 | 59,313 | |||||||||
Subtotal long-term debt | 444,350 | 473,134 | 444,331 | 449,159 | |||||||||
Unamortized debt issuance costs | (5,234 | ) | (5,664 | ) | |||||||||
Total long-term debt | $ | 439,116 | 438,667 |
December 31, 2017 | Fair Value Measurements Using | ||||||||||||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2020 | Fair Value Measurements Using | |||||||||||||||||||||||||||||||||||||
($ in thousands) | Assets Measured at Fair Value | Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1)1 | Significant Other Observable Inputs (Level 2)1 | Significant Unobservable Inputs (Level 3) | ($ in thousands) | Assets Measured at Fair Value | Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||
Description | Description | ||||||||||||||||||||||||||||||||||||||
Measured on a recurring basis: | Measured on a recurring basis: | ||||||||||||||||||||||||||||||||||||||
AFS fixed income securities: | AFS fixed income securities: | ||||||||||||||||||||||||||||||||||||||
U.S. government and government agencies | $ | 49,740 | 24,652 | 25,088 | — | U.S. government and government agencies | $ | 116,140 | 40,960 | 75,180 | 0 | ||||||||||||||||||||||||||||
Foreign government | 18,555 | — | 18,555 | — | Foreign government | 18,366 | 0 | 18,366 | 0 | ||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | 1,582,970 | �� | 1,582,970 | — | Obligations of states and political subdivisions | 1,247,137 | 0 | 1,244,243 | 2,894 | ||||||||||||||||||||||||||||||
Corporate securities | 1,617,468 | — | 1,617,468 | — | Corporate securities | 2,328,052 | 0 | 2,257,352 | 70,700 | ||||||||||||||||||||||||||||||
CLO and other ABS | 795,458 | — | 795,458 | — | CLO and other ABS | 1,026,551 | 0 | 970,176 | 56,375 | ||||||||||||||||||||||||||||||
RMBS | RMBS | 1,051,788 | 0 | 1,051,788 | 0 | ||||||||||||||||||||||||||||||||||
CMBS | 383,449 | — | 376,895 | 6,554 | CMBS | 667,894 | 0 | 667,894 | 0 | ||||||||||||||||||||||||||||||
RMBS | 714,882 | — | 714,882 | — | |||||||||||||||||||||||||||||||||||
Total AFS fixed income securities | 5,162,522 | 24,652 | 5,131,316 | 6,554 | Total AFS fixed income securities | 6,455,928 | 40,960 | 6,284,999 | 129,969 | ||||||||||||||||||||||||||||||
AFS equity securities: | |||||||||||||||||||||||||||||||||||||||
Common stock2 | 167,757 | 138,640 | — | 5,398 | |||||||||||||||||||||||||||||||||||
Equity securities: | Equity securities: | ||||||||||||||||||||||||||||||||||||||
Common stock1 | Common stock1 | 308,632 | 261,846 | 0 | 0 | ||||||||||||||||||||||||||||||||||
Preferred stock | 14,948 | 14,948 | — | — | Preferred stock | 1,735 | 1,735 | 0 | 0 | ||||||||||||||||||||||||||||||
Total AFS equity securities | 182,705 | 153,588 | — | 5,398 | |||||||||||||||||||||||||||||||||||
Total AFS securities | 5,345,227 | 178,240 | 5,131,316 | 11,952 | |||||||||||||||||||||||||||||||||||
Total equity securities | Total equity securities | 310,367 | 263,581 | 0 | 0 | ||||||||||||||||||||||||||||||||||
Short-term investments | 165,555 | 165,555 | — | — | Short-term investments | 409,852 | 405,400 | 4,452 | 0 | ||||||||||||||||||||||||||||||
Total assets measured at fair value | $ | 5,510,782 | 343,795 | 5,131,316 | 11,952 | Total assets measured at fair value | $ | 7,176,147 | 709,941 | 6,289,451 | 129,969 |
December 31, 2016 | Fair Value Measurements Using | ||||||||||||||||||||||||||||||||||||||
December 31, 2019 | December 31, 2019 | Fair Value Measurements Using | |||||||||||||||||||||||||||||||||||||
($ in thousands) | Assets Measured at Fair Value | Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1)1 | Significant Other Observable Inputs (Level 2)1 | Significant Unobservable Inputs (Level 3) | ($ in thousands) | Assets Measured at Fair Value | Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||
Description | Description | ||||||||||||||||||||||||||||||||||||||
Measured on a recurring basis: | Measured on a recurring basis: | ||||||||||||||||||||||||||||||||||||||
AFS fixed income securities: | AFS fixed income securities: | ||||||||||||||||||||||||||||||||||||||
U.S. government and government agencies | $ | 77,333 | 27,520 | 49,813 | — | U.S. government and government agencies | $ | 116,186 | 41,083 | 75,103 | 0 | ||||||||||||||||||||||||||||
Foreign government | 26,865 | — | 26,865 | — | Foreign government | 18,542 | 0 | 18,542 | 0 | ||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | 1,379,593 | — | 1,379,593 | — | Obligations of states and political subdivisions | 1,230,090 | 0 | 1,230,090 | 0 | ||||||||||||||||||||||||||||||
Corporate securities | 1,997,753 | — | 1,997,753 | — | Corporate securities | 1,947,477 | 0 | 1,930,426 | 17,051 | ||||||||||||||||||||||||||||||
CLO and other ABS | 528,960 | — | 528,960 | — | CLO and other ABS | 793,012 | 3,635 | 772,343 | 17,034 | ||||||||||||||||||||||||||||||
RMBS | RMBS | 1,451,969 | 0 | 1,451,969 | 0 | ||||||||||||||||||||||||||||||||||
CMBS | 256,842 | — | 256,842 | — | CMBS | 538,344 | 0 | 538,344 | 0 | ||||||||||||||||||||||||||||||
RMBS | 525,194 | — | 525,194 | — | |||||||||||||||||||||||||||||||||||
Total AFS fixed income securities | 4,792,540 | 27,520 | 4,765,020 | — | Total AFS fixed income securities | 6,095,620 | 44,718 | 6,016,817 | 34,085 | ||||||||||||||||||||||||||||||
AFS equity securities: | |||||||||||||||||||||||||||||||||||||||
Common stock | 130,608 | 122,932 | — | 7,676 | |||||||||||||||||||||||||||||||||||
Equity securities: | Equity securities: | ||||||||||||||||||||||||||||||||||||||
Common stock1 | Common stock1 | 69,900 | 32,145 | 0 | 0 | ||||||||||||||||||||||||||||||||||
Preferred stock | 16,145 | 16,145 | — | — | Preferred stock | 3,037 | 3,037 | 0 | 0 | ||||||||||||||||||||||||||||||
Total AFS equity securities | 146,753 | 139,077 | — | 7,676 | |||||||||||||||||||||||||||||||||||
Total AFS securities | 4,939,293 | 166,597 | 4,765,020 | 7,676 | |||||||||||||||||||||||||||||||||||
Total equity securities | Total equity securities | 72,937 | 35,182 | 0 | 0 | ||||||||||||||||||||||||||||||||||
Short-term investments | 221,701 | 221,701 | — | — | Short-term investments | 282,490 | 265,306 | 17,184 | 0 | ||||||||||||||||||||||||||||||
Total assets measured at fair value | $ | 5,160,994 | 388,298 | 4,765,020 | 7,676 | Total assets measured at fair value | $ | 6,451,047 | 345,206 | 6,034,001 | 34,085 |
2020 | |||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | Obligations of states and political subdivisions | Corporate Securities | CLO and Other ABS | Total | |||||||||||||||||||||||||||||||||||||||||||
Fair value, December 31, 2019 | $ | 0 | 17,051 | 17,034 | 34,085 | ||||||||||||||||||||||||||||||||||||||||||
Total net (losses) gains for the period included in: | |||||||||||||||||||||||||||||||||||||||||||||||
OCI | 4 | (785) | 1,883 | 1,102 | |||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized (losses) gains | 0 | (1,046) | (237) | (1,283) | |||||||||||||||||||||||||||||||||||||||||||
Net investment income earned | 0 | 21 | 6 | 27 | |||||||||||||||||||||||||||||||||||||||||||
Purchases | 0 | 46,150 | 25,785 | 71,935 | |||||||||||||||||||||||||||||||||||||||||||
Sales | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||
Issuances | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||
Settlements | 0 | (283) | (2,638) | (2,921) | |||||||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 | 2,890 | 9,592 | 31,520 | 44,002 | |||||||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 | 0 | 0 | (16,978) | (16,978) | |||||||||||||||||||||||||||||||||||||||||||
Fair value, December 31, 2020 | $ | 2,894 | 70,700 | 56,375 | 129,969 | ||||||||||||||||||||||||||||||||||||||||||
Change in unrealized (losses) gains for the period included in earnings for assets held at period end | 0 | (1,046) | (237) | (1,283) | |||||||||||||||||||||||||||||||||||||||||||
Change in unrealized gains (losses) for the period included in OCI for assets held at period end | 4 | (785) | 1,883 | 1,102 |
2017 | |||||||||||||||||||||||||||||||
2019 | 2019 | ||||||||||||||||||||||||||||||
($ in thousands) | CMBS | Common Stock | ($ in thousands) | Corporate Securities | CLO and Other ABS | Total | |||||||||||||||||||||||||
Fair value, December 31, 2016 | $ | — | 7,676 | ||||||||||||||||||||||||||||
Fair value, December 31, 2018 | Fair value, December 31, 2018 | 0 | 7,409 | 7,409 | |||||||||||||||||||||||||||
Total net (losses) gains for the period included in: | Total net (losses) gains for the period included in: | ||||||||||||||||||||||||||||||
OCI | 4 | — | OCI | (118) | (261) | (379) | |||||||||||||||||||||||||
Net income | — | — | |||||||||||||||||||||||||||||
Net realized and unrealized (losses) gains | Net realized and unrealized (losses) gains | 0 | 0 | 0 | |||||||||||||||||||||||||||
Net investment income earned | Net investment income earned | 0 | 245 | 245 | |||||||||||||||||||||||||||
Purchases | 6,550 | 3,780 | Purchases | 0 | 21,282 | 21,282 | |||||||||||||||||||||||||
Sales | — | (3,958 | ) | Sales | 0 | 0 | 0 | ||||||||||||||||||||||||
Issuances | — | — | Issuances | 0 | 0 | 0 | |||||||||||||||||||||||||
Settlements | — | — | Settlements | 0 | (279) | (279) | |||||||||||||||||||||||||
Transfers into Level 3 | — | — | Transfers into Level 3 | 17,169 | 18,853 | 36,022 | |||||||||||||||||||||||||
Transfers out of Level 3 | — | (2,100 | ) | Transfers out of Level 3 | 0 | (30,215) | (30,215) | ||||||||||||||||||||||||
Fair value, December 31, 2017 | $ | 6,554 | $ | 5,398 | |||||||||||||||||||||||||||
Fair value, December 31, 2019 | Fair value, December 31, 2019 | 17,051 | 17,034 | 34,085 | |||||||||||||||||||||||||||
Change in unrealized gains (losses) for the period included in earnings for assets held at period end | Change in unrealized gains (losses) for the period included in earnings for assets held at period end | 0 | 0 | 0 |
December 31, 2020 | Fair Value Measurements Using | |||||||||||||||||||||||||
($ in thousands) | Assets/Liabilities Disclosed at Fair Value | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||
Financial Assets | ||||||||||||||||||||||||||
HTM: | ||||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 4,795 | 0 | 4,795 | 0 | |||||||||||||||||||||
Corporate securities | 13,206 | 0 | 13,206 | 0 | ||||||||||||||||||||||
Total HTM fixed income securities | $ | 18,001 | 0 | 18,001 | 0 | |||||||||||||||||||||
CMLs | $ | 47,289 | 0 | 0 | 47,289 | |||||||||||||||||||||
Financial Liabilities | ||||||||||||||||||||||||||
Long-term debt: | ||||||||||||||||||||||||||
7.25% Senior Notes | $ | 66,148 | 0 | 66,148 | 0 | |||||||||||||||||||||
6.70% Senior Notes | 127,886 | 0 | 127,886 | 0 | ||||||||||||||||||||||
5.375% Senior Notes | 383,669 | 0 | 383,669 | 0 | ||||||||||||||||||||||
1.61% Borrowings from FHLBNY | 25,182 | 0 | 25,182 | 0 | ||||||||||||||||||||||
1.56% Borrowings from FHLBNY | 25,198 | 0 | 25,198 | 0 | ||||||||||||||||||||||
3.03% Borrowings from FHLBI | 67,513 | 0 | 67,513 | 0 | ||||||||||||||||||||||
Total long-term debt | $ | 695,596 | 0 | 695,596 | 0 |
December 31, 2017 | Fair Value Measurements Using | ||||||||||||||||||||||||||||||||||||||
December 31, 2019 | December 31, 2019 | Fair Value Measurements Using | |||||||||||||||||||||||||||||||||||||
($ in thousands) | Assets/Liabilities Disclosed at Fair Value | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ($ in thousands) | Assets/Liabilities Disclosed at Fair Value | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||
Financial Assets | Financial Assets | ||||||||||||||||||||||||||||||||||||||
HTM: | HTM: | ||||||||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 26,261 | — | 26,261 | — | Obligations of states and political subdivisions | $ | 4,921 | 0 | 4,921 | 0 | ||||||||||||||||||||||||||||
Corporate securities | 17,839 | — | 12,306 | 5,533 | Corporate securities | 17,054 | 0 | 17,054 | 0 | ||||||||||||||||||||||||||||||
Total HTM fixed income securities | $ | 44,100 | — | 38,567 | 5,533 | Total HTM fixed income securities | $ | 21,975 | 0 | 21,975 | 0 | ||||||||||||||||||||||||||||
Financial Liabilities | Financial Liabilities | ||||||||||||||||||||||||||||||||||||||
Long-term debt: | Long-term debt: | ||||||||||||||||||||||||||||||||||||||
7.25% Senior Notes | $ | 61,391 | — | 61,391 | — | 7.25% Senior Notes | $ | 66,365 | 0 | 66,365 | 0 | ||||||||||||||||||||||||||||
6.70% Senior Notes | 116,597 | — | 116,597 | — | 6.70% Senior Notes | 123,104 | 0 | 123,104 | 0 | ||||||||||||||||||||||||||||||
5.875% Senior Notes | 186,332 | 186,332 | — | — | |||||||||||||||||||||||||||||||||||
5.375% Senior Notes | 5.375% Senior Notes | 357,025 | 0 | 357,025 | 0 | ||||||||||||||||||||||||||||||||||
1.61% Borrowings from FHLBNY | 24,270 | — | 24,270 | — | 1.61% Borrowings from FHLBNY | 24,901 | 0 | 24,901 | 0 | ||||||||||||||||||||||||||||||
1.56% Borrowings from FHLBNY | 24,210 | — | 24,210 | — | 1.56% Borrowings from FHLBNY | 24,875 | 0 | 24,875 | 0 | ||||||||||||||||||||||||||||||
3.03% Borrowings from FHLBI | 60,334 | — | 60,334 | — | 3.03% Borrowings from FHLBI | 63,002 | 0 | 63,002 | 0 | ||||||||||||||||||||||||||||||
Total long-term debt | $ | 473,134 | 186,332 | 286,802 | — | Total long-term debt | $ | 659,272 | 0 | 659,272 | 0 |
December 31, 2016 | Fair Value Measurements Using | ||||||||||||
($ in thousands) | Assets/Liabilities Disclosed at Fair Value | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||
Financial Assets | |||||||||||||
HTM: | |||||||||||||
Obligations of states and political subdivisions | $ | 79,916 | — | 79,916 | — | ||||||||
Corporate securities | 24,075 | — | 16,565 | 7,510 | |||||||||
CMBS | 1,220 | — | 1,220 | — | |||||||||
Total HTM fixed income securities | $ | 105,211 | — | 97,701 | 7,510 | ||||||||
Financial Liabilities | |||||||||||||
Long-term debt: | |||||||||||||
7.25% Senior Notes | $ | 56,148 | — | 56,148 | — | ||||||||
6.70% Senior Notes | 108,333 | — | 108,333 | — | |||||||||
5.875% Senior Notes | 176,860 | 176,860 | — | — | |||||||||
1.61% Borrowings from FHLBNY | 24,286 | — | 24,286 | — | |||||||||
1.56% Borrowings from FHLBNY | 24,219 | — | 24,219 | — | |||||||||
3.03% Borrowings from FHLBI | 59,313 | — | 59,313 | — | |||||||||
Total long-term debt | $ | 449,159 | 176,860 | 272,299 | — |
($ in thousands) | December 31, 2020 | |||||||||||||
Balance at beginning of year | $ | 6,400 | ||||||||||||
Cumulative effect adjustment1 | 1,058 | |||||||||||||
Balance at beginning of year, as adjusted | $ | 7,458 | ||||||||||||
Current period provision for expected credit losses | 16,751 | |||||||||||||
Write-offs charged against the allowance for credit losses | (3,754) | |||||||||||||
Recoveries | 545 | |||||||||||||
ACL, end of year | $ | 21,000 |
December 31, 2020 | ||||||||||||||||||||
($ in thousands) | Current | Past Due | Total Reinsurance Recoverables | |||||||||||||||||
Financial strength rating of rated reinsurers | ||||||||||||||||||||
A++ | $ | 37,464 | $ | 102 | $ | 37,566 | ||||||||||||||
A+ | 354,846 | 2,452 | 357,298 | |||||||||||||||||
A | 105,652 | 415 | 106,067 | |||||||||||||||||
A- | 2,139 | 0 | 2,139 | |||||||||||||||||
B++ | 56 | 324 | 380 | |||||||||||||||||
B+ | 0 | 0 | 0 | |||||||||||||||||
Total rated reinsurers | $ | 500,157 | $ | 3,293 | $ | 503,450 | ||||||||||||||
Non-rated reinsurers | ||||||||||||||||||||
Federal and state pools | $ | 82,575 | $ | 0 | $ | 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: ACL | (1,777) | |||||||||||||||||||
Total reinsurance recoverable, net | $ | 587,492 |
($ in thousands) | December 31, 2020 | |||||||||||||
Balance at beginning of year | $ | 4,400 | ||||||||||||
Cumulative effect adjustment1 | (2,903) | |||||||||||||
Balance at beginning of year, as adjusted | $ | 1,497 | ||||||||||||
Current period provision for expected credit losses | 280 | |||||||||||||
Write-offs charged against the allowance for credit losses | 0 | |||||||||||||
Recoveries | 0 | |||||||||||||
ACL, end of year | $ | 1,777 |
As of December 31, 2020 | As of December 31, 2019 | |||||||||||||||||||||||||
($ in thousands) | Reinsurance Balances | % of Reinsurance Balance | Reinsurance Balances | % of Reinsurance Balance | ||||||||||||||||||||||
Total reinsurance recoverables | $ | 587,492 | $ | 573,235 | ||||||||||||||||||||||
Total prepaid reinsurance premiums | 170,531 | 166,705 | ||||||||||||||||||||||||
Total reinsurance balance | 758,023 | 739,940 | ||||||||||||||||||||||||
Federal and state pools1: | ||||||||||||||||||||||||||
NFIP | 178,532 | 25 | % | 175,472 | 24 % | |||||||||||||||||||||
New Jersey Unsatisfied Claim Judgment Fund | 52,053 | 6 | 53,732 | 6 % | ||||||||||||||||||||||
Other | 1,625 | 0 | 2,449 | 1 | ||||||||||||||||||||||
Total federal and state pools | 232,210 | 31 | 231,653 | 31 | ||||||||||||||||||||||
Remaining reinsurance balance | $ | 525,813 | 69 | $ | 508,287 | 69 | ||||||||||||||||||||
Munich Re Group (AM Best rated "A+") | $ | 116,885 | 15 | $ | 119,748 | 16 | ||||||||||||||||||||
Hannover Ruckversicherungs AG (AM Best rated "A+") | 115,084 | 15 | 107,474 | 15 | ||||||||||||||||||||||
AXIS Reinsurance Company (AM Best rated "A") | 78,090 | 10 | 73,009 | 10 | ||||||||||||||||||||||
Swiss Re Group (AM Best rated "A+") | 33,179 | 4 | 37,190 | 5 | ||||||||||||||||||||||
Transatlantic Reinsurance Company (AM Best rated “A+”) | 24,320 | 3 | 21,824 | 3 | ||||||||||||||||||||||
All other reinsurers | 158,255 | 22 | 149,042 | 20 | ||||||||||||||||||||||
Total reinsurers | 525,813 | 69 | % | 508,287 | 69 | % | ||||||||||||||||||||
Less: collateral2 | (130,169) | (110,549) | ||||||||||||||||||||||||
Reinsurers, net of collateral | $ | 395,644 | $ | 397,738 |
As of December 31, 2017 | As of December 31, 2016 | |||||||||||||
($ in thousands) | Reinsurance Balances | % of Reinsurance Balance | Reinsurance Balances | % of Reinsurance Balance | ||||||||||
Total reinsurance recoverables | $ | 594,832 | $ | 621,537 | ||||||||||
Total prepaid reinsurance premiums | 153,493 | 146,282 | ||||||||||||
Total reinsurance balance | 748,325 | 767,819 | ||||||||||||
Federal and state pools1: | ||||||||||||||
NFIP | 204,161 | 27 | % | 211,181 | 27 | % | ||||||||
New Jersey Unsatisfied Claim Judgment Fund | 62,947 | 9 | 65,574 | 9 | ||||||||||
Other | 3,634 | — | 3,227 | — | ||||||||||
Total federal and state pools | 270,742 | 36 | 279,982 | 36 | ||||||||||
Remaining reinsurance balance | $ | 477,583 | 64 | $ | 487,837 | 64 | ||||||||
Munich Re Group (A.M. Best rated "A+") | $ | 117,460 | 16 | $ | 119,520 | 16 | ||||||||
Hannover Ruckversicherungs AG (A.M. Best rated "A+") | 101,652 | 14 | 106,298 | 13 | ||||||||||
AXIS Reinsurance Company (A.M. Best rated "A+") | 62,396 | 8 | 59,737 | 8 | ||||||||||
Swiss Re Group (A.M. Best rated "A+") | 40,772 | 5 | 50,494 | 7 | ||||||||||
Partner Reinsurance Company of the U.S. (A.M. Best rated “A”) | 16,925 | 2 | 21,125 | 3 | ||||||||||
All other reinsurers | 138,378 | 19 | 130,663 | 17 | ||||||||||
Total reinsurers | 477,583 | 64 | % | 487,837 | 64 | % | ||||||||
Less: collateral2 | (122,413 | ) | (113,763 | ) | ||||||||||
Reinsurers, net of collateral | $ | 355,170 | $ | 374,074 |
($ in thousands) | 2017 | 2016 | 2015 | ($ in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||||||||
Premiums written: | Premiums written: | |||||||||||||||||||||||||||||
Direct | $ | 2,733,459 | 2,577,259 | 2,403,519 | Direct | $ | 3,204,512 | 3,084,451 | 2,890,633 | |||||||||||||||||||||
Assumed | 26,685 | 28,779 | 23,848 | Assumed | 24,288 | 24,339 | 26,250 | |||||||||||||||||||||||
Ceded | (389,503 | ) | (368,750 | ) | (357,463 | ) | Ceded | (455,708) | (429,366) | (402,597) | ||||||||||||||||||||
Net | $ | 2,370,641 | 2,237,288 | 2,069,904 | Net | $ | 2,773,092 | 2,679,424 | 2,514,286 | |||||||||||||||||||||
Premiums earned: | Premiums earned: | |||||||||||||||||||||||||||||
Direct | $ | 2,647,488 | 2,484,715 | 2,330,267 | Direct | $ | 3,108,687 | 2,993,157 | 2,808,764 | |||||||||||||||||||||
Assumed | 25,831 | 28,214 | 23,209 | Assumed | 25,010 | 24,399 | 25,831 | |||||||||||||||||||||||
Ceded | (382,292 | ) | (363,357 | ) | (363,567 | ) | Ceded | (451,883) | (420,385) | (398,366) | ||||||||||||||||||||
Net | $ | 2,291,027 | 2,149,572 | 1,989,909 | Net | $ | 2,681,814 | 2,597,171 | 2,436,229 | |||||||||||||||||||||
Loss and loss expense incurred: | Loss and loss expense incurred: | |||||||||||||||||||||||||||||
Direct | $ | 1,570,678 | 1,560,356 | 1,274,872 | Direct | $ | 1,822,034 | 1,714,880 | 1,706,951 | |||||||||||||||||||||
Assumed | 17,588 | 22,708 | 16,996 | Assumed | 17,201 | 22,879 | 21,469 | |||||||||||||||||||||||
Ceded | (243,192 | ) | (348,267 | ) | (143,327 | ) | Ceded | (203,412) | (186,268) | (230,286) | ||||||||||||||||||||
Net | $ | 1,345,074 | 1,234,797 | 1,148,541 | Net | $ | 1,635,823 | 1,551,491 | 1,498,134 |
Ceded to NFIP ($ in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||
Ceded premiums written | $ | (274,042) | (266,925) | (248,053) | ||||||||||||||||
Ceded premiums earned | (271,598) | (259,119) | (244,238) | |||||||||||||||||
Ceded loss and loss expense incurred | (78,993) | (71,676) | (144,967) |
Ceded to NFIP ($ in thousands) | 2017 | 2016 | 2015 | |||||||
Ceded premiums written | $ | (241,345 | ) | (232,245 | ) | (228,907 | ) | |||
Ceded premiums earned | (235,088 | ) | (227,882 | ) | (233,940 | ) | ||||
Ceded loss and loss expense incurred | (160,922 | ) | (239,891 | ) | (62,078 | ) |
($ in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||
Gross reserves for loss and loss expense, at beginning of year | $ | 4,067,163 | 3,893,868 | 3,771,240 | ||||||||||||||||
Less: reinsurance recoverable on unpaid loss and loss expense, at beginning of year1 | 547,066 | 537,388 | 585,855 | |||||||||||||||||
Net reserves for loss and loss expense, at beginning of year | 3,520,097 | 3,356,480 | 3,185,385 | |||||||||||||||||
Incurred loss and loss expense for claims occurring in the: | ||||||||||||||||||||
Current year | 1,708,755 | 1,601,780 | 1,527,997 | |||||||||||||||||
Prior years | (72,932) | (50,289) | (29,863) | |||||||||||||||||
Total incurred loss and loss expense | 1,635,823 | 1,551,491 | 1,498,134 | |||||||||||||||||
Paid loss and loss expense for claims occurring in the: | ||||||||||||||||||||
Current year | 642,586 | 579,527 | 573,718 | |||||||||||||||||
Prior years | 807,248 | 805,443 | 753,321 | |||||||||||||||||
Total paid loss and loss expense | 1,449,834 | 1,384,970 | 1,327,039 | |||||||||||||||||
Net reserves for loss and loss expense, at end of year | 3,706,086 | 3,523,001 | 3,356,480 | |||||||||||||||||
Add: Reinsurance recoverable on unpaid loss and loss expense, at end of year | 554,269 | 544,162 | 537,388 | |||||||||||||||||
Gross reserves for loss and loss expense at end of year | $ | 4,260,355 | 4,067,163 | 3,893,868 |
($ in thousands) | 2017 | 2016 | 2015 | |||||||
Gross reserves for loss and loss expense, at beginning of year | $ | 3,691,719 | 3,517,728 | 3,477,870 | ||||||
Less: reinsurance recoverable on unpaid loss and loss expense, at beginning of year | 611,200 | 551,019 | 571,978 | |||||||
Net reserves for loss and loss expense, at beginning of year | 3,080,519 | 2,966,709 | 2,905,892 | |||||||
Incurred loss and loss expense for claims occurring in the: | ||||||||||
Current year | 1,384,266 | 1,300,565 | 1,217,550 | |||||||
Prior years | (39,192 | ) | (65,768 | ) | (69,009 | ) | ||||
Total incurred loss and loss expense | 1,345,074 | 1,234,797 | 1,148,541 | |||||||
Paid loss and loss expense for claims occurring in the: | ||||||||||
Current year | 497,486 | 450,811 | 446,550 | |||||||
Prior years | 742,722 | 670,176 | 641,174 | |||||||
Total paid loss and loss expense | 1,240,208 | 1,120,987 | 1,087,724 | |||||||
Net reserves for loss and loss expense, at end of year | 3,185,385 | 3,080,519 | 2,966,709 | |||||||
Add: Reinsurance recoverable on unpaid loss and loss expense, at end of year | 585,855 | 611,200 | 551,019 | |||||||
Gross reserves for loss and loss expense at end of year | $ | 3,771,240 | 3,691,719 | 3,517,728 |
(Favorable)/Unfavorable Prior Year Development | ||||||||||||||||||||
($ in millions) | 2020 | 2019 | 2018 | |||||||||||||||||
General Liability | $ | (35.0) | (5.0) | (9.5) | ||||||||||||||||
Commercial Automobile | 7.1 | 0.7 | 36.7 | |||||||||||||||||
Workers Compensation | (60.0) | (68.0) | (83.0) | |||||||||||||||||
Businessowners' Policies | 3.9 | 1.9 | (1.5) | |||||||||||||||||
Commercial Property | 9.2 | 5.1 | 7.5 | |||||||||||||||||
Homeowners | 7.7 | 7.5 | 9.8 | |||||||||||||||||
Personal Automobile | (1.8) | 4.4 | 3.0 | |||||||||||||||||
E&S Casualty Lines | 0 | 2.0 | 12.0 | |||||||||||||||||
E&S Property Lines | (4.0) | 1.0 | (4.8) | |||||||||||||||||
Other | 0 | 0.1 | (0.1) | |||||||||||||||||
Total | $ | (72.9) | (50.3) | (29.9) |
(Favorable)/Unfavorable Prior Year Development | ||||||||||
($ in millions) | 2017 | 2016 | 2015 | |||||||
General Liability | $ | (48.3 | ) | (45.0 | ) | (51.0 | ) | |||
Commercial Automobile | 35.6 | 25.3 | 2.4 | |||||||
Workers Compensation | (52.3 | ) | (56.0 | ) | (37.0 | ) | ||||
Businessowners' Policies | 1.9 | 1.8 | 2.2 | |||||||
Commercial Property | 8.7 | 0.3 | (3.0 | ) | ||||||
Homeowners | 0.4 | 1.7 | 1.5 | |||||||
Personal Automobile | 6.7 | 1.0 | 0.4 | |||||||
E&S Casualty Lines | 10.0 | 6.0 | 16.0 | |||||||
Other | (1.9 | ) | (0.9 | ) | (0.5 | ) | ||||
Total | $ | (39.2 | ) | (65.8 | ) | (69.0 | ) |
2017 | |||||||
($ in millions) | Gross | Net | |||||
Asbestos | $ | 7.6 | 6.3 | ||||
Landfill sites | 12.4 | 7.7 | |||||
Underground storage tanks | 8.4 | 7.2 | |||||
Total | $ | 28.4 | 21.2 |
2020 | ||||||||||||||
($ in millions) | Gross | Net | ||||||||||||
Asbestos | $ | 6.3 | 5.0 | |||||||||||
Landfill sites | 12.7 | 8.0 | ||||||||||||
Underground storage tanks | 9.5 | 8.4 | ||||||||||||
Total | $ | 28.5 | 21.4 |
2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||
($ in thousands) | Gross | Net | Gross | Net | Gross | Net | ||||||||||||||||||||||||||||||||
Asbestos | ||||||||||||||||||||||||||||||||||||||
Reserves for loss and loss expense at beginning of year | $ | 6,288 | 5,057 | 7,328 | 6,097 | 7,577 | 6,346 | |||||||||||||||||||||||||||||||
Incurred loss and loss expense | 320 | 320 | (375) | (375) | 0 | 0 | ||||||||||||||||||||||||||||||||
Less: loss and loss expense paid | (354) | (354) | (665) | (665) | (249) | (249) | ||||||||||||||||||||||||||||||||
Reserves for loss and loss expense at the end of year | $ | 6,254 | 5,023 | 6,288 | 5,057 | 7,328 | 6,097 | |||||||||||||||||||||||||||||||
Environmental | ||||||||||||||||||||||||||||||||||||||
Reserves for loss and loss expense at beginning of year | $ | 22,413 | 16,532 | 22,692 | 16,686 | 20,838 | 14,866 | |||||||||||||||||||||||||||||||
Incurred loss and loss expense | (447) | (474) | 723 | 609 | 3,059 | 2,877 | ||||||||||||||||||||||||||||||||
Less: loss and loss expense paid | 310 | 340 | (1,002) | (763) | (1,205) | (1,057) | ||||||||||||||||||||||||||||||||
Reserves for loss and loss expense at the end of year | $ | 22,276 | 16,398 | 22,413 | 16,532 | 22,692 | 16,686 | |||||||||||||||||||||||||||||||
Total Asbestos and Environmental Claims | ||||||||||||||||||||||||||||||||||||||
Reserves for loss and loss expense at beginning of year | $ | 28,701 | 21,589 | 30,020 | 22,783 | 28,415 | 21,212 | |||||||||||||||||||||||||||||||
Incurred loss and loss expense | (127) | (154) | 348 | 234 | 3,059 | 2,877 | ||||||||||||||||||||||||||||||||
Less: loss and loss expense paid | (44) | (14) | (1,667) | (1,428) | (1,454) | (1,306) | ||||||||||||||||||||||||||||||||
Reserves for loss and loss expense at the end of year | $ | 28,530 | 21,421 | 28,701 | 21,589 | 30,020 | 22,783 |
2017 | 2016 | 2015 | |||||||||||||||||
($ in thousands) | Gross | Net | Gross | Net | Gross | Net | |||||||||||||
Asbestos | |||||||||||||||||||
Reserves for loss and loss expense at beginning of year | $ | 7,847 | 6,615 | 8,024 | 6,793 | 8,751 | 7,314 | ||||||||||||
Incurred loss and loss expense | — | — | 77 | 77 | (428 | ) | (77 | ) | |||||||||||
Less: loss and loss expense paid | (270 | ) | (269 | ) | (254 | ) | (255 | ) | (299 | ) | (444 | ) | |||||||
Reserves for loss and loss expense at the end of year | $ | 7,577 | 6,346 | 7,847 | 6,615 | 8,024 | 6,793 | ||||||||||||
Environmental | |||||||||||||||||||
Reserves for loss and loss expense at beginning of year | $ | 22,115 | 16,101 | 22,387 | 16,368 | 21,902 | 15,680 | ||||||||||||
Incurred loss and loss expense | 126 | — | 1,406 | 1,303 | 3,396 | 3,397 | |||||||||||||
Less: loss and loss expense paid | (1,403 | ) | (1,235 | ) | (1,678 | ) | (1,570 | ) | (2,911 | ) | (2,709 | ) | |||||||
Reserves for loss and loss expense at the end of year | $ | 20,838 | 14,866 | 22,115 | 16,101 | 22,387 | 16,368 | ||||||||||||
Total Asbestos and Environmental Claims | |||||||||||||||||||
Reserves for loss and loss expense at beginning of year | $ | 29,962 | 22,716 | 30,411 | 23,161 | 30,653 | 22,994 | ||||||||||||
Incurred loss and loss expense | 126 | — | 1,483 | 1,380 | 2,968 | 3,320 | |||||||||||||
Less: loss and loss expense paid | (1,673 | ) | (1,504 | ) | (1,932 | ) | (1,825 | ) | (3,210 | ) | (3,153 | ) | |||||||
Reserves for loss and loss expense at the end of year | $ | 28,415 | 21,212 | 29,962 | 22,716 | 30,411 | 23,161 |
All Lines (in thousands, except for claim counts) | All Lines (in thousands, except for claim counts) | All Lines (in thousands, except for claim counts) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Incurred Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance | As of December 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Incurred Loss and Allocated Loss Expenses, Net of Reinsurance | Incurred Loss and Allocated Loss Expenses, Net of Reinsurance | As of December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accident Year | Unaudited | IBNR | Cumulative Number of Reported Claims | Accident Year | Unaudited | IBNR | Cumulative Number of Reported Claims | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||
2008 | $ | 957,247 | 988,584 | 990,931 | 964,862 | 947,306 | 936,975 | 927,958 | 931,785 | 926,017 | 923,978 | 41,791 | 85,338 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2009 | 920,143 | 941,972 | 916,691 | 883,590 | 870,057 | 869,927 | 857,960 | 853,401 | 848,413 | 41,937 | 85,575 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2010 | 950,114 | 973,742 | 977,959 | 956,600 | 943,118 | 922,404 | 915,131 | 907,074 | 50,293 | 94,258 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2011 | 1,042,576 | 1,061,667 | 1,062,233 | 1,056,107 | 1,033,518 | 1,023,726 | 1,019,351 | 63,891 | 104,500 | 2011 | $ | 1,042,576 | 1,061,667 | 1,062,233 | 1,056,107 | 1,033,518 | 1,023,726 | 1,019,351 | 1,013,115 | 1,013,175 | 1,009,162 | 36,641 | 105,039 | ||||||||||||||||||||||||||||||||||||||||||||
2012 | 1,065,437 | 1,071,290 | 1,020,655 | 998,028 | 973,089 | 973,644 | 77,542 | 103,745 | 2012 | 1,065,437 | 1,071,290 | 1,020,655 | 998,028 | 973,089 | 973,644 | 973,411 | 968,536 | 962,091 | 41,426 | 104,343 | |||||||||||||||||||||||||||||||||||||||||||||||
2013 | 1,044,142 | 1,062,045 | 1,047,230 | 1,021,007 | 1,002,316 | 116,449 | 90,755 | 2013 | 1,044,142 | 1,062,045 | 1,047,230 | 1,021,007 | 1,002,316 | 987,763 | 984,858 | 973,739 | 57,866 | 91,539 | |||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 1,107,513 | 1,133,798 | 1,146,990 | 1,124,014 | 171,913 | 94,375 | 2014 | 1,107,513 | 1,133,798 | 1,146,990 | 1,124,014 | 1,104,218 | 1,100,208 | 1,089,529 | 60,028 | 95,366 | |||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | 1,114,081 | 1,130,513 | 1,144,830 | 256,758 | 92,891 | 2015 | 1,114,081 | 1,130,513 | 1,144,830 | 1,138,313 | 1,119,441 | 1,108,860 | 77,855 | 94,594 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2016 | 1,188,608 | 1,203,634 | 416,010 | 92,191 | 2016 | 1,188,608 | 1,203,634 | 1,227,142 | 1,199,734 | 1,180,829 | 126,935 | 95,203 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | 1,270,110 | 634,863 | 88,941 | 2017 | 1,270,110 | 1,313,372 | 1,313,585 | 1,288,526 | 206,627 | 98,918 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | 2018 | 1,413,800 | 1,461,603 | 1,457,415 | 342,256 | 105,772 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2019 | 1,483,945 | 1,523,041 | 539,113 | 101,631 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2020 | 1,591,972 | 820,762 | 85,549 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 10,417,364 | Total | 12,185,164 |
All Lines (in thousands) | ||||||||||||||||||||||||||||||||
Cumulative Paid Loss and Allocated Loss Expenses, Net of Reinsurance | ||||||||||||||||||||||||||||||||
Accident Year | Unaudited | |||||||||||||||||||||||||||||||
2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |||||||||||||||||||||||
2011 | $ | 391,944 | 585,867 | 692,730 | 782,655 | 852,202 | 901,801 | 924,111 | 940,626 | 950,836 | 957,391 | |||||||||||||||||||||
2012 | 378,067 | 555,819 | 651,544 | 743,742 | 810,135 | 856,195 | 879,372 | 898,269 | 905,816 | |||||||||||||||||||||||
2013 | 335,956 | 518,872 | 644,475 | 748,758 | 833,823 | 872,331 | 891,841 | 904,825 | ||||||||||||||||||||||||
2014 | 405,898 | 614,075 | 736,154 | 855,959 | 936,425 | 981,868 | 1,002,157 | |||||||||||||||||||||||||
2015 | 376,641 | 581,203 | 725,385 | 845,868 | 929,222 | 967,857 | ||||||||||||||||||||||||||
2016 | 387,272 | 617,958 | 764,331 | 892,390 | 983,852 | |||||||||||||||||||||||||||
2017 | 433,440 | 678,453 | 829,134 | 954,792 | ||||||||||||||||||||||||||||
2018 | 511,271 | 779,466 | 942,893 | |||||||||||||||||||||||||||||
2019 | 510,091 | 781,462 | ||||||||||||||||||||||||||||||
2020 | 572,302 | |||||||||||||||||||||||||||||||
Total | 8,973,347 | |||||||||||||||||||||||||||||||
All outstanding liabilities before 2011, net of reinsurance | 364,395 | |||||||||||||||||||||||||||||||
Liabilities for loss and loss expenses, net of reinsurance | 3,576,212 |
General Liability (in thousands, except for claim counts) | |||||||||||||||||||||||||||||||||||||||||
Incurred Loss and Allocated Loss Expenses, Net of Reinsurance | As of December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||
Accident Year | Unaudited | IBNR | Cumulative Number of Reported Claims | ||||||||||||||||||||||||||||||||||||||
2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||||||||||||||
2011 | $ | 227,769 | 228,720 | 239,480 | 230,785 | 217,256 | 211,196 | 212,011 | 211,500 | 213,485 | 209,846 | 13,501 | 11,691 | ||||||||||||||||||||||||||||
2012 | 238,979 | 245,561 | 215,083 | 194,144 | 175,305 | 175,268 | 180,659 | 182,085 | 178,285 | 15,055 | 10,034 | ||||||||||||||||||||||||||||||
2013 | 250,609 | 251,421 | 239,776 | 225,709 | 210,785 | 203,831 | 202,697 | 195,697 | 19,110 | 10,397 | |||||||||||||||||||||||||||||||
2014 | 244,312 | 249,946 | 257,132 | 239,333 | 234,082 | 237,125 | 229,679 | 29,018 | 10,652 | ||||||||||||||||||||||||||||||||
2015 | 254,720 | 245,710 | 246,990 | 233,249 | 219,204 | 214,176 | 38,182 | 10,537 | |||||||||||||||||||||||||||||||||
2016 | 277,214 | 272,048 | 277,986 | 263,245 | 252,733 | 61,329 | 10,753 | ||||||||||||||||||||||||||||||||||
2017 | 293,747 | 293,128 | 301,384 | 289,883 | 114,160 | 11,096 | |||||||||||||||||||||||||||||||||||
2018 | 317,934 | 336,326 | 345,224 | 182,931 | 11,350 | ||||||||||||||||||||||||||||||||||||
2019 | 347,150 | 356,363 | 248,289 | 10,531 | |||||||||||||||||||||||||||||||||||||
2020 | 361,554 | 311,657 | 6,990 | ||||||||||||||||||||||||||||||||||||||
Total | 2,633,440 |
All Lines (in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance | |||||||||||||||||||||||||||||||||||||||||||||||||||||
General Liability (in thousands) | General Liability (in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative Paid Loss and Allocated Loss Expenses, Net of Reinsurance | Cumulative Paid Loss and Allocated Loss Expenses, Net of Reinsurance | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Accident Year | Unaudited | Accident Year | Unaudited | ||||||||||||||||||||||||||||||||||||||||||||||||||
2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||||||||||||||||
2008 | $ | 286,314 | 489,633 | 609,851 | 690,016 | 764,196 | 798,996 | 819,280 | 839,392 | 853,769 | 860,745 | ||||||||||||||||||||||||||||||||||||||||||
2009 | 277,275 | 442,417 | 540,982 | 634,902 | 695,249 | 736,100 | 760,589 | 775,885 | 784,713 | ||||||||||||||||||||||||||||||||||||||||||||
2010 | 328,826 | 509,910 | 625,229 | 704,895 | 773,536 | 803,773 | 823,770 | 835,532 | |||||||||||||||||||||||||||||||||||||||||||||
2011 | 391,944 | 585,867 | 692,730 | 782,655 | 852,202 | 901,801 | 924,111 | 2011 | $ | 13,924 | 42,692 | 73,643 | 102,978 | 135,377 | 159,768 | 170,525 | 181,856 | 187,276 | 190,650 | ||||||||||||||||||||||||||||||||||
2012 | 378,067 | 555,819 | 651,544 | 743,742 | 810,135 | 856,195 | 2012 | 13,030 | 35,241 | 56,580 | 89,008 | 109,448 | 130,866 | 144,451 | 156,186 | 158,397 | |||||||||||||||||||||||||||||||||||||
2013 | 335,956 | 518,872 | 644,475 | 748,758 | 833,823 | 2013 | 12,789 | 35,113 | 72,127 | 104,587 | 139,114 | 153,628 | 163,764 | 169,847 | |||||||||||||||||||||||||||||||||||||||
2014 | 405,898 | 614,075 | 736,154 | 855,959 | 2014 | 14,901 | 46,825 | 79,972 | 121,969 | 154,957 | 179,192 | 187,352 | |||||||||||||||||||||||||||||||||||||||||
2015 | 376,641 | 581,203 | 725,385 | 2015 | 14,665 | 39,978 | 78,668 | 116,804 | 144,216 | 157,071 | |||||||||||||||||||||||||||||||||||||||||||
2016 | 387,272 | 617,958 | 2016 | 15,684 | 46,549 | 89,431 | 133,757 | 164,136 | |||||||||||||||||||||||||||||||||||||||||||||
2017 | 433,440 | 2017 | 17,366 | 49,470 | 92,355 | 131,980 | |||||||||||||||||||||||||||||||||||||||||||||||
2018 | 2018 | 19,531 | 60,784 | 108,421 | |||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2019 | 18,097 | 58,284 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2020 | 21,858 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 7,727,861 | Total | 1,347,996 | ||||||||||||||||||||||||||||||||||||||||||||||||||
All outstanding liabilities before 2008, net of reinsurance | 352,192 | All outstanding liabilities before 2011, net of reinsurance | 95,458 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities for loss and loss adjustment expenses, net of reinsurance | 3,041,694 | Liabilities for loss and loss expenses, net of reinsurance | 1,380,902 |
Workers Compensation (in thousands, except for claim counts) | |||||||||||||||||||||||||||||||||||||||||
Incurred Loss and Allocated Loss Expenses, Net of Reinsurance | As of December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||
Accident Year | Unaudited | IBNR | Cumulative Number of Reported Claims | ||||||||||||||||||||||||||||||||||||||
2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||||||||||||||
2011 | $ | 205,238 | 218,973 | 214,743 | 215,114 | 210,591 | 205,708 | 200,674 | 194,821 | 192,863 | 191,875 | 21,900 | 11,863 | ||||||||||||||||||||||||||||
2012 | 203,864 | 208,036 | 199,360 | 195,197 | 188,596 | 187,359 | 183,314 | 178,774 | 177,658 | 23,181 | 11,624 | ||||||||||||||||||||||||||||||
2013 | 199,794 | 194,318 | 187,658 | 173,160 | 166,662 | 162,787 | 159,767 | 157,645 | 23,321 | 11,382 | |||||||||||||||||||||||||||||||
2014 | 199,346 | 187,065 | 182,579 | 172,515 | 164,420 | 160,646 | 159,604 | 25,582 | 10,495 | ||||||||||||||||||||||||||||||||
2015 | 193,729 | 194,639 | 183,604 | 179,642 | 176,242 | 172,572 | 22,368 | 10,551 | |||||||||||||||||||||||||||||||||
2016 | 196,774 | 184,946 | 176,248 | 166,009 | 156,540 | 29,220 | 10,582 | ||||||||||||||||||||||||||||||||||
2017 | 195,202 | 184,306 | 175,853 | 162,672 | 34,474 | 10,808 | |||||||||||||||||||||||||||||||||||
2018 | 193,894 | 193,818 | 181,151 | 48,883 | 11,111 | ||||||||||||||||||||||||||||||||||||
2019 | 188,625 | 188,596 | 69,909 | 10,267 | |||||||||||||||||||||||||||||||||||||
2020 | 168,643 | 97,510 | 7,017 | ||||||||||||||||||||||||||||||||||||||
Total | 1,716,956 |
Workers Compensation (in thousands) | ||||||||||||||||||||||||||||||||
Cumulative Paid Loss and Allocated Loss Expenses, Net of Reinsurance | ||||||||||||||||||||||||||||||||
Accident Year | Unaudited | |||||||||||||||||||||||||||||||
2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |||||||||||||||||||||||
2011 | $ | 42,941 | 90,836 | 118,847 | 134,646 | 139,232 | 149,269 | 154,320 | 158,535 | 161,696 | 163,554 | |||||||||||||||||||||
2012 | 40,911 | 86,909 | 108,211 | 122,755 | 132,052 | 139,477 | 143,281 | 146,739 | 148,750 | |||||||||||||||||||||||
2013 | 36,829 | 74,568 | 96,376 | 109,739 | 118,669 | 124,130 | 126,822 | 129,224 | ||||||||||||||||||||||||
2014 | 35,924 | 78,944 | 100,876 | 113,626 | 119,392 | 124,077 | 127,858 | |||||||||||||||||||||||||
2015 | 33,857 | 77,320 | 98,195 | 112,601 | 120,097 | 124,046 | ||||||||||||||||||||||||||
2016 | 34,525 | 78,531 | 98,037 | 109,166 | 115,159 | |||||||||||||||||||||||||||
2017 | 40,375 | 82,216 | 100,645 | 110,645 | ||||||||||||||||||||||||||||
2018 | 41,122 | 84,780 | 105,903 | |||||||||||||||||||||||||||||
2019 | 37,826 | 77,878 | ||||||||||||||||||||||||||||||
2020 | 29,559 | |||||||||||||||||||||||||||||||
Total | 1,132,576 | |||||||||||||||||||||||||||||||
All outstanding liabilities before 2011, net of reinsurance | 243,766 | |||||||||||||||||||||||||||||||
Liabilities for loss and loss expenses, net of reinsurance | 828,146 |
General Liability (in thousands, except for claim counts) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Incurred Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance | As of December 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Automobile (in thousands, except for claim counts) | Commercial Automobile (in thousands, except for claim counts) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Incurred Loss and Allocated Loss Expenses, Net of Reinsurance | Incurred Loss and Allocated Loss Expenses, Net of Reinsurance | As of December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accident Year | Unaudited | IBNR | Cumulative Number of Reported Claims | Accident Year | Unaudited | IBNR | Cumulative Number of Reported Claims | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||
2008 | $ | 250,239 | 243,755 | 243,536 | 234,770 | 233,712 | 224,236 | 219,551 | 221,640 | 221,203 | 219,617 | 14,326 | 13,769 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2009 | 237,913 | 241,625 | 233,530 | 223,146 | 212,947 | 211,243 | 206,387 | 205,741 | 201,568 | 17,629 | 13,841 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2010 | 215,208 | 228,680 | 242,499 | 237,154 | 222,328 | 211,619 | 208,968 | 202,394 | 18,403 | 12,672 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2011 | 227,769 | 228,720 | 239,480 | 230,785 | 217,256 | 211,196 | 212,011 | 25,729 | 11,579 | 2011 | $ | 174,006 | 183,044 | 182,325 | 178,421 | 172,617 | 174,882 | 174,514 | 173,507 | 173,401 | 172,684 | 205 | 25,651 | ||||||||||||||||||||||||||||||||||||||||||||
2012 | 238,979 | 245,561 | 215,083 | 194,144 | 175,305 | 175,268 | 27,702 | 9,922 | 2012 | 179,551 | 191,947 | 183,527 | 184,289 | 184,367 | 186,128 | 184,633 | 185,357 | 184,477 | 811 | 24,295 | |||||||||||||||||||||||||||||||||||||||||||||||
2013 | 250,609 | 251,421 | 239,776 | 225,709 | 210,785 | 53,014 | 10,226 | 2013 | 188,289 | 205,282 | 209,197 | 207,994 | 210,410 | 207,975 | 209,602 | 208,040 | 1,694 | 25,886 | |||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 244,312 | 249,946 | 257,132 | 239,333 | 80,168 | 10,391 | 2014 | 200,534 | 212,725 | 216,824 | 219,925 | 218,172 | 217,334 | 216,461 | 2,096 | 27,896 | |||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | 254,720 | 245,710 | 246,990 | 124,639 | 9,987 | 2015 | 220,994 | 240,958 | 253,074 | 259,495 | 260,565 | 261,386 | 2,729 | 29,590 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2016 | 277,214 | 272,048 | 178,904 | 9,617 | 2016 | 255,187 | 274,367 | 285,302 | 285,304 | 290,359 | 8,469 | 31,465 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | 293,747 | 249,085 | 8,194 | 2017 | 301,274 | 329,389 | 324,291 | 322,197 | 22,447 | 32,775 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | 2018 | 347,908 | 352,487 | 345,547 | 47,298 | 35,418 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2019 | 385,212 | 398,346 | 111,327 | 35,703 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2020 | 381,654 | 195,279 | 28,366 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 2,273,761 | Total | 2,781,151 |
Commercial Automobile (in thousands) | ||||||||||||||||||||||||||||||||
Cumulative Paid Loss and Allocated Loss Expenses, Net of Reinsurance | ||||||||||||||||||||||||||||||||
Accident Year | Unaudited | |||||||||||||||||||||||||||||||
2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |||||||||||||||||||||||
2011 | $ | 69,849 | 99,196 | 121,576 | 142,507 | 157,291 | 166,082 | 170,000 | 170,913 | 172,365 | 172,413 | |||||||||||||||||||||
2012 | 73,316 | 105,371 | 127,235 | 148,669 | 168,114 | 176,656 | 179,501 | 181,353 | 183,098 | |||||||||||||||||||||||
2013 | 76,469 | 109,893 | 140,015 | 169,850 | 189,626 | 200,750 | 202,622 | 205,064 | ||||||||||||||||||||||||
2014 | 80,810 | 117,169 | 148,884 | 180,701 | 202,821 | 209,655 | 212,481 | |||||||||||||||||||||||||
2015 | 91,347 | 132,260 | 175,866 | 211,515 | 238,142 | 249,905 | ||||||||||||||||||||||||||
2016 | 106,022 | 155,720 | 200,701 | 233,939 | 264,858 | |||||||||||||||||||||||||||
2017 | 117,287 | 178,823 | 220,422 | 262,349 | ||||||||||||||||||||||||||||
2018 | 134,867 | 193,788 | 243,713 | |||||||||||||||||||||||||||||
2019 | 149,538 | 221,590 | ||||||||||||||||||||||||||||||
2020 | 139,016 | |||||||||||||||||||||||||||||||
Total | 2,154,487 | |||||||||||||||||||||||||||||||
All outstanding liabilities before 2011, net of reinsurance | 3,848 | |||||||||||||||||||||||||||||||
Liabilities for loss and loss expenses, net of reinsurance | 630,512 |
Businessowners' Policies (in thousands, except for claim counts) | |||||||||||||||||||||||||||||||||||||||||
Incurred Loss and Allocated Loss Expenses, Net of Reinsurance | As of December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||
Accident Year | Unaudited | IBNR | Cumulative Number of Reported Claims | ||||||||||||||||||||||||||||||||||||||
2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||||||||||||||
2011 | $ | 54,469 | 57,083 | 51,047 | 58,242 | 59,256 | 58,966 | 58,456 | 58,735 | 58,948 | 58,697 | 516 | 4,961 | ||||||||||||||||||||||||||||
2012 | 54,342 | 48,029 | 46,303 | 44,172 | 44,077 | 43,747 | 43,418 | 43,717 | 43,444 | 117 | 5,545 | ||||||||||||||||||||||||||||||
2013 | 49,617 | 42,618 | 41,005 | 40,624 | 41,369 | 39,709 | 39,699 | 39,358 | 554 | 3,483 | |||||||||||||||||||||||||||||||
2014 | 55,962 | 60,949 | 62,548 | 59,806 | 58,517 | 58,093 | 57,302 | 616 | 4,066 | ||||||||||||||||||||||||||||||||
2015 | 52,871 | 53,768 | 57,245 | 55,925 | 54,454 | 52,325 | 1,178 | 3,963 | |||||||||||||||||||||||||||||||||
2016 | 52,335 | 53,792 | 54,993 | 53,835 | 53,367 | 1,877 | 3,847 | ||||||||||||||||||||||||||||||||||
2017 | 46,624 | 48,698 | 51,524 | 48,067 | 5,981 | 3,885 | |||||||||||||||||||||||||||||||||||
2018 | 55,024 | 57,202 | 62,427 | 12,432 | 4,229 | ||||||||||||||||||||||||||||||||||||
2019 | 53,531 | 59,466 | 12,872 | 3,541 | |||||||||||||||||||||||||||||||||||||
2020 | 71,836 | 17,392 | 5,019 | ||||||||||||||||||||||||||||||||||||||
Total | 546,289 |
General Liability (in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Businessowners' Policies (in thousands) | Businessowners' Policies (in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative Paid Loss and Allocated Loss Expenses, Net of Reinsurance | Cumulative Paid Loss and Allocated Loss Expenses, Net of Reinsurance | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Accident Year | Unaudited | Accident Year | Unaudited | ||||||||||||||||||||||||||||||||||||||||||||||||||
2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||||||||||||||||
2008 | $ | 16,397 | 45,595 | 82,421 | 113,088 | 151,055 | 166,394 | 176,873 | 186,896 | 194,257 | 198,360 | ||||||||||||||||||||||||||||||||||||||||||
2009 | 14,346 | 37,143 | 64,970 | 103,213 | 130,554 | 151,920 | 166,767 | 176,316 | 180,621 | ||||||||||||||||||||||||||||||||||||||||||||
2010 | 15,726 | 46,201 | 80,018 | 113,050 | 143,360 | 161,487 | 172,394 | 178,179 | |||||||||||||||||||||||||||||||||||||||||||||
2011 | 13,924 | 42,692 | 73,643 | 102,978 | 135,377 | 159,768 | 170,525 | 2011 | $ | 27,884 | 37,362 | 41,011 | 46,444 | 52,114 | 55,856 | 57,045 | 57,365 | 57,380 | 57,385 | ||||||||||||||||||||||||||||||||||
2012 | 13,030 | 35,241 | 56,580 | 89,008 | 109,448 | 130,866 | 2012 | 22,199 | 31,833 | 35,089 | 37,215 | 38,766 | 40,627 | 41,326 | 41,356 | 42,075 | |||||||||||||||||||||||||||||||||||||
2013 | 12,789 | 35,113 | 72,127 | 104,587 | 139,114 | 2013 | 17,412 | 26,592 | 30,845 | 34,760 | 37,993 | 38,464 | 39,085 | 39,212 | |||||||||||||||||||||||||||||||||||||||
2014 | 14,901 | 46,825 | 79,972 | 121,969 | 2014 | 28,914 | 40,584 | 44,911 | 49,460 | 52,940 | 55,458 | 55,708 | |||||||||||||||||||||||||||||||||||||||||
2015 | 14,665 | 39,978 | 78,668 | 2015 | 24,189 | 36,014 | 42,710 | 46,571 | 49,073 | 49,839 | |||||||||||||||||||||||||||||||||||||||||||
2016 | 15,684 | 46,549 | 2016 | 24,655 | 36,848 | 39,973 | 45,308 | 48,786 | |||||||||||||||||||||||||||||||||||||||||||||
2017 | 17,366 | 2017 | 21,865 | 31,337 | 36,950 | 40,359 | |||||||||||||||||||||||||||||||||||||||||||||||
2018 | 2018 | 29,995 | 39,791 | 44,316 | |||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2019 | 27,718 | 41,587 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2020 | 43,376 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 1,262,217 | Total | 462,643 | ||||||||||||||||||||||||||||||||||||||||||||||||||
All outstanding liabilities before 2008, net of reinsurance | 80,514 | All outstanding liabilities before 2011, net of reinsurance | 7,773 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities for loss and loss adjustment expenses, net of reinsurance | 1,092,058 | Liabilities for loss and loss expenses, net of reinsurance | 91,419 |
Commercial Property (in thousands, except for claim counts) | |||||||||||||||||||||||||||||||||||||||||
Incurred Loss and Allocated Loss Expenses, Net of Reinsurance | As of December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||
Accident Year | Unaudited | IBNR | Cumulative Number of Reported Claims | ||||||||||||||||||||||||||||||||||||||
2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||||||||||||||
2011 | $ | 136,954 | 131,667 | 130,942 | 131,282 | 131,353 | 131,113 | 131,049 | 131,009 | 131,002 | 130,994 | 9 | 9,038 | ||||||||||||||||||||||||||||
2012 | 118,464 | 114,224 | 115,375 | 116,658 | 117,102 | 117,170 | 117,225 | 117,220 | 117,200 | 6 | 8,517 | ||||||||||||||||||||||||||||||
2013 | 88,101 | 90,639 | 90,103 | 90,005 | 90,436 | 90,278 | 90,218 | 90,486 | 11 | 5,715 | |||||||||||||||||||||||||||||||
2014 | 141,192 | 136,249 | 136,820 | 138,751 | 138,155 | 136,212 | 136,237 | 13 | 6,516 | ||||||||||||||||||||||||||||||||
2015 | 110,270 | 109,513 | 111,750 | 111,566 | 112,496 | 112,582 | 24 | 6,406 | |||||||||||||||||||||||||||||||||
2016 | 121,927 | 126,185 | 125,937 | 124,487 | 123,567 | 60 | 6,741 | ||||||||||||||||||||||||||||||||||
2017 | 138,773 | 149,106 | 149,044 | 153,664 | (289) | 6,900 | |||||||||||||||||||||||||||||||||||
2018 | 183,177 | 190,834 | 192,558 | (841) | 8,280 | ||||||||||||||||||||||||||||||||||||
2019 | 173,826 | 177,075 | (738) | 7,262 | |||||||||||||||||||||||||||||||||||||
2020 | 232,060 | 37,050 | 9,494 | ||||||||||||||||||||||||||||||||||||||
Total | 1,466,423 |
Commercial Property (in thousands) | ||||||||||||||||||||||||||||||||
Cumulative Paid Loss and Allocated Loss Expenses, Net of Reinsurance | ||||||||||||||||||||||||||||||||
Accident Year | Unaudited | |||||||||||||||||||||||||||||||
2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |||||||||||||||||||||||
2011 | $ | 94,538 | 127,580 | 129,579 | 130,681 | 131,060 | 131,115 | 131,089 | 131,100 | 131,092 | 131,083 | |||||||||||||||||||||
2012 | 81,528 | 108,834 | 111,503 | 114,699 | 116,291 | 116,625 | 116,671 | 116,674 | 116,673 | |||||||||||||||||||||||
2013 | 60,244 | 87,874 | 90,446 | 90,350 | 90,840 | 90,696 | 90,646 | 90,917 | ||||||||||||||||||||||||
2014 | 101,131 | 132,909 | 136,634 | 137,883 | 137,418 | 136,008 | 135,928 | |||||||||||||||||||||||||
2015 | 79,048 | 106,182 | 109,829 | 110,994 | 110,969 | 112,117 | ||||||||||||||||||||||||||
2016 | 83,966 | 118,789 | 122,930 | 123,828 | 123,601 | |||||||||||||||||||||||||||
2017 | 99,047 | 142,338 | 148,589 | 152,018 | ||||||||||||||||||||||||||||
2018 | 135,416 | 184,813 | 192,698 | |||||||||||||||||||||||||||||
2019 | 130,891 | 172,768 | ||||||||||||||||||||||||||||||
2020 | 164,613 | |||||||||||||||||||||||||||||||
Total | 1,392,416 | |||||||||||||||||||||||||||||||
All outstanding liabilities before 2011, net of reinsurance | 175 | |||||||||||||||||||||||||||||||
Liabilities for loss and loss expenses, net of reinsurance | 74,182 |
Workers Compensation (in thousands, except for claim counts) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Incurred Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance | As of December 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Personal Automobile (in thousands, except for claim counts) | Personal Automobile (in thousands, except for claim counts) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Incurred Loss and Allocated Loss Expenses, Net of Reinsurance | Incurred Loss and Allocated Loss Expenses, Net of Reinsurance | As of December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accident Year | Unaudited | IBNR | Cumulative Number of Reported Claims | Accident Year | Unaudited | IBNR | Cumulative Number of Reported Claims | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||
2008 | $ | 219,616 | 243,186 | 255,810 | 250,423 | 241,921 | 245,993 | 244,100 | 243,512 | 238,836 | 238,218 | 25,993 | 14,401 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2009 | 197,504 | 215,946 | 213,036 | 210,109 | 210,756 | 216,992 | 212,536 | 208,611 | 208,142 | 22,575 | 12,217 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2010 | 198,371 | 214,469 | 212,815 | 211,030 | 214,916 | 212,448 | 208,155 | 204,423 | 28,964 | 12,184 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2011 | 205,238 | 218,973 | 214,743 | 215,114 | 210,591 | 205,708 | 200,674 | 32,881 | 11,845 | 2011 | $ | 113,232 | 116,164 | 113,686 | 112,993 | 114,241 | 113,830 | 113,988 | 113,921 | 114,056 | 114,038 | 31 | 22,700 | ||||||||||||||||||||||||||||||||||||||||||||
2012 | 203,864 | 208,036 | 199,360 | 195,197 | 188,596 | 187,359 | 36,233 | 11,605 | 2012 | 113,771 | 114,921 | 109,832 | 109,324 | 110,294 | 110,300 | 109,795 | 109,701 | 109,634 | 78 | 22,333 | |||||||||||||||||||||||||||||||||||||||||||||||
2013 | 199,794 | 194,318 | 187,658 | 173,160 | 166,662 | 34,776 | 11,366 | 2013 | 108,417 | 109,620 | 106,225 | 106,703 | 107,759 | 107,680 | 107,916 | 107,803 | 121 | 22,376 | |||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 199,346 | 187,065 | 182,579 | 172,515 | 42,869 | 10,482 | 2014 | 102,250 | 109,325 | 106,757 | 107,452 | 106,821 | 107,104 | 107,106 | (42) | 22,508 | |||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | 193,729 | 194,639 | 183,604 | 42,287 | 10,530 | 2015 | 96,387 | 99,698 | 100,214 | 99,570 | 98,718 | 98,588 | 295 | 20,865 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2016 | 196,774 | 184,946 | 70,424 | 10,509 | 2016 | 92,727 | 98,032 | 100,202 | 101,140 | 99,544 | 452 | 19,824 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | 195,202 | 112,086 | 10,182 | 2017 | 101,880 | 105,139 | 103,653 | 103,260 | 1,607 | 20,739 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | 2018 | 111,594 | 113,569 | 112,030 | 5,597 | 22,668 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2019 | 114,043 | 115,688 | 13,260 | 22,804 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2020 | 95,625 | 30,333 | 16,309 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 1,941,745 | Total | 1,063,316 |
Personal Automobile (in thousands) | ||||||||||||||||||||||||||||||||
Cumulative Paid Loss and Allocated Loss Expenses, Net of Reinsurance | ||||||||||||||||||||||||||||||||
Accident Year | Unaudited | |||||||||||||||||||||||||||||||
2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |||||||||||||||||||||||
2011 | $ | 61,323 | 82,102 | 93,878 | 105,068 | 111,085 | 112,732 | 113,551 | 113,664 | 113,856 | 113,996 | |||||||||||||||||||||
2012 | 63,704 | 82,729 | 94,842 | 102,977 | 107,890 | 109,355 | 109,447 | 109,482 | 109,554 | |||||||||||||||||||||||
2013 | 61,384 | 80,861 | 92,637 | 100,528 | 105,131 | 106,679 | 106,876 | 107,419 | ||||||||||||||||||||||||
2014 | 62,519 | 83,739 | 92,589 | 99,173 | 104,055 | 105,709 | 106,478 | |||||||||||||||||||||||||
2015 | 58,725 | 76,470 | 87,163 | 92,102 | 95,997 | 97,275 | ||||||||||||||||||||||||||
2016 | 57,961 | 76,823 | 86,752 | 94,372 | 98,080 | |||||||||||||||||||||||||||
2017 | 62,854 | 82,730 | 91,479 | 97,628 | ||||||||||||||||||||||||||||
2018 | 69,721 | 89,628 | 99,982 | |||||||||||||||||||||||||||||
2019 | 69,699 | 92,162 | ||||||||||||||||||||||||||||||
2020 | 53,407 | |||||||||||||||||||||||||||||||
Total | 975,981 | |||||||||||||||||||||||||||||||
All outstanding liabilities before 2011, net of reinsurance | 6,902 | |||||||||||||||||||||||||||||||
Liabilities for loss and loss expenses, net of reinsurance | 94,237 |
Homeowners (in thousands, except for claim counts) | |||||||||||||||||||||||||||||||||||||||||
Incurred Loss and Allocated Loss Expenses, Net of Reinsurance | As of December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||
Accident Year | Unaudited | IBNR | Cumulative Number of Reported Claims | ||||||||||||||||||||||||||||||||||||||
2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||||||||||||||
2011 | $ | 103,804 | 98,211 | 97,761 | 94,167 | 94,543 | 94,183 | 94,378 | 94,587 | 94,572 | 94,524 | 37 | 15,111 | ||||||||||||||||||||||||||||
2012 | 87,260 | 82,744 | 86,560 | 86,667 | 86,271 | 86,330 | 86,483 | 86,567 | 86,519 | 44 | 16,942 | ||||||||||||||||||||||||||||||
2013 | 73,670 | 72,528 | 71,494 | 72,145 | 71,714 | 72,148 | 72,318 | 71,948 | 49 | 7,749 | |||||||||||||||||||||||||||||||
2014 | 80,111 | 82,461 | 83,637 | 83,844 | 83,539 | 83,824 | 83,525 | 442 | 8,773 | ||||||||||||||||||||||||||||||||
2015 | 76,637 | 76,400 | 76,559 | 74,723 | 74,978 | 74,673 | 483 | 7,750 | |||||||||||||||||||||||||||||||||
2016 | 60,105 | 60,931 | 62,391 | 61,723 | 61,735 | 442 | 6,892 | ||||||||||||||||||||||||||||||||||
2017 | 59,167 | 67,978 | 70,365 | 70,064 | 1,822 | 7,385 | |||||||||||||||||||||||||||||||||||
2018 | 62,961 | 68,526 | 69,832 | 3,129 | 7,596 | ||||||||||||||||||||||||||||||||||||
2019 | 64,306 | 72,772 | 2,765 | 6,970 | |||||||||||||||||||||||||||||||||||||
2020 | 109,033 | 16,218 | 9,003 | ||||||||||||||||||||||||||||||||||||||
Total | 794,625 |
Workers Compensation (in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Homeowners (in thousands) | Homeowners (in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative Paid Loss and Allocated Loss Expenses, Net of Reinsurance | Cumulative Paid Loss and Allocated Loss Expenses, Net of Reinsurance | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Accident Year | Unaudited | Accident Year | Unaudited | ||||||||||||||||||||||||||||||||||||||||||||||||||
2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||||||||||||||||
2008 | $ | 39,628 | 100,678 | 139,144 | 158,083 | 171,403 | 180,556 | 188,206 | 191,265 | 195,962 | 198,512 | ||||||||||||||||||||||||||||||||||||||||||
2009 | 37,885 | 87,299 | 117,019 | 133,116 | 145,417 | 154,726 | 160,529 | 164,336 | 167,894 | ||||||||||||||||||||||||||||||||||||||||||||
2010 | 46,795 | 93,281 | 122,442 | 137,184 | 149,086 | 153,795 | 158,078 | 162,796 | |||||||||||||||||||||||||||||||||||||||||||||
2011 | 42,941 | 90,836 | 118,847 | 134,646 | 139,232 | 149,269 | 154,320 | 2011 | $ | 71,668 | 89,963 | 91,718 | 92,185 | 93,312 | 93,720 | 94,007 | 94,412 | 94,458 | 94,452 | ||||||||||||||||||||||||||||||||||
2012 | 40,911 | 86,909 | 108,211 | 122,755 | 132,052 | 139,477 | 2012 | 69,056 | 79,584 | 82,720 | 84,250 | 85,196 | 85,562 | 85,642 | 85,897 | 85,899 | |||||||||||||||||||||||||||||||||||||
2013 | 36,829 | 74,568 | 96,376 | 109,739 | 118,669 | 2013 | 50,664 | 65,528 | 67,838 | 69,775 | 71,776 | 72,197 | 72,433 | 72,446 | |||||||||||||||||||||||||||||||||||||||
2014 | 35,924 | 78,944 | 100,876 | 113,626 | 2014 | 61,561 | 76,007 | 79,751 | 81,664 | 82,583 | 82,836 | 82,831 | |||||||||||||||||||||||||||||||||||||||||
2015 | 33,857 | 77,320 | 98,195 | 2015 | 52,589 | 70,078 | 72,202 | 72,927 | 74,079 | 74,052 | |||||||||||||||||||||||||||||||||||||||||||
2016 | 34,525 | 78,531 | 2016 | 42,252 | 57,333 | 59,546 | 60,082 | 61,187 | |||||||||||||||||||||||||||||||||||||||||||||
2017 | 40,375 | 2017 | 45,466 | 63,290 | 67,193 | 67,767 | |||||||||||||||||||||||||||||||||||||||||||||||
2018 | 2018 | 49,430 | 64,137 | 65,348 | |||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2019 | 49,680 | 67,631 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2020 | 83,838 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 1,272,395 | Total | 755,451 | ||||||||||||||||||||||||||||||||||||||||||||||||||
All outstanding liabilities before 2008, net of reinsurance | 247,121 | All outstanding liabilities before 2011, net of reinsurance | 4,985 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities for loss and loss adjustment expenses, net of reinsurance | 916,471 | Liabilities for loss and loss expenses, net of reinsurance | 44,159 |
E&S Casualty Lines (in thousands, except for claim counts) | |||||||||||||||||||||||||||||||||||||||||
Incurred Loss and Allocated Loss Expenses, Net of Reinsurance | As of December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||
Accident Year | Unaudited | IBNR | Cumulative Number of Reported Claims | ||||||||||||||||||||||||||||||||||||||
2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||||||||||||||
2011 | $ | 8,127 | $ | 7,102 | 9,853 | 12,207 | 10,273 | 9,652 | 10,228 | 12,119 | 11,554 | 13,344 | 408 | 1,337 | |||||||||||||||||||||||||||
2012 | 42,367 | 42,621 | 43,175 | 46,149 | 46,165 | 45,988 | 46,444 | 44,622 | 44,348 | 2,126 | 2,055 | ||||||||||||||||||||||||||||||
2013 | 55,468 | 60,309 | 67,099 | 69,112 | 67,647 | 68,972 | 68,451 | 68,029 | 13,032 | 2,299 | |||||||||||||||||||||||||||||||
2014 | 55,316 | 63,505 | 69,929 | 71,719 | 71,206 | 71,153 | 70,846 | 2,352 | 2,101 | ||||||||||||||||||||||||||||||||
2015 | 75,498 | 76,432 | 82,404 | 90,488 | 90,355 | 90,126 | 12,518 | 2,844 | |||||||||||||||||||||||||||||||||
2016 | 94,451 | 96,416 | 104,655 | 105,120 | 104,730 | 25,507 | 2,925 | ||||||||||||||||||||||||||||||||||
2017 | 91,438 | 95,783 | 99,866 | 99,395 | 26,778 | 2,727 | |||||||||||||||||||||||||||||||||||
2018 | 98,324 | 103,004 | 103,184 | 41,204 | 2,637 | ||||||||||||||||||||||||||||||||||||
2019 | 117,087 | 118,298 | 78,482 | 2,278 | |||||||||||||||||||||||||||||||||||||
2020 | 103,872 | 90,970 | 1,138 | ||||||||||||||||||||||||||||||||||||||
Total | 816,172 |
E&S Casualty Lines (in thousands) | ||||||||||||||||||||||||||||||||
Cumulative Paid Loss and Allocated Loss Expenses, Net of Reinsurance | ||||||||||||||||||||||||||||||||
Accident Year | Unaudited | |||||||||||||||||||||||||||||||
2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |||||||||||||||||||||||
2011 | $ | 0 | $ | 806 | 3,200 | 6,445 | 9,954 | 9,912 | 10,256 | 9,819 | 9,604 | 10,744 | ||||||||||||||||||||
2012 | 3,722 | 7,914 | 16,430 | 25,064 | 32,343 | 36,278 | 38,298 | 39,832 | 40,615 | |||||||||||||||||||||||
2013 | 2,715 | 9,470 | 21,980 | 35,200 | 46,108 | 51,142 | 54,974 | 55,988 | ||||||||||||||||||||||||
2014 | 2,353 | 12,234 | 25,571 | 43,877 | 53,780 | 60,092 | 64,698 | |||||||||||||||||||||||||
2015 | 3,036 | 13,057 | 29,389 | 50,712 | 64,529 | 71,421 | ||||||||||||||||||||||||||
2016 | 3,720 | 16,195 | 33,950 | 56,581 | 69,448 | |||||||||||||||||||||||||||
2017 | 5,057 | 14,672 | 34,179 | 53,238 | ||||||||||||||||||||||||||||
2018 | 5,509 | 21,337 | 39,174 | |||||||||||||||||||||||||||||
2019 | 4,422 | 17,812 | ||||||||||||||||||||||||||||||
2020 | 3,695 | |||||||||||||||||||||||||||||||
Total | 426,833 | |||||||||||||||||||||||||||||||
All outstanding liabilities before 2011, net of reinsurance | 121 | |||||||||||||||||||||||||||||||
Liabilities for loss and loss expenses, net of reinsurance | 389,460 |
Commercial Automobile (in thousands, except for claim counts) | ||||||||||||||||||||||||||
Incurred Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance | As of December 31, 2017 | |||||||||||||||||||||||||
Accident Year | Unaudited | IBNR | Cumulative Number of Reported Claims | |||||||||||||||||||||||
2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | |||||||||||||||||
2008 | $ | 196,370 | 195,823 | 190,349 | 187,100 | 187,417 | 182,785 | 180,902 | 183,736 | 183,618 | 183,151 | 736 | 24,129 | |||||||||||||
2009 | 199,541 | 191,079 | 182,724 | 169,858 | 166,682 | 162,911 | 161,251 | 161,923 | 161,300 | 897 | 24,652 | |||||||||||||||
2010 | 187,562 | 189,305 | 187,778 | 181,923 | 179,854 | 172,969 | 173,157 | 173,471 | 1,491 | 25,301 | ||||||||||||||||
2011 | 174,006 | 183,044 | 182,325 | 178,421 | 172,617 | 174,882 | 174,514 | 2,937 | 25,272 | |||||||||||||||||
2012 | 179,551 | 191,947 | 183,527 | 184,289 | 184,367 | 186,128 | 3,880 | 23,889 | ||||||||||||||||||
2013 | 188,289 | 205,282 | 209,197 | 207,994 | 210,410 | 8,258 | 25,392 | |||||||||||||||||||
2014 | 200,534 | 212,725 | 216,824 | 219,925 | 19,053 | 27,338 | ||||||||||||||||||||
2015 | 220,994 | 240,958 | 253,074 | 36,137 | 28,818 | |||||||||||||||||||||
2016 | 255,187 | 274,367 | 71,303 | 30,480 | ||||||||||||||||||||||
2017 | 301,274 | 132,814 | 30,187 | |||||||||||||||||||||||
Total | 2,137,614 |
Commercial Automobile (in thousands) | |||||||||||||||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance | |||||||||||||||||||||
Accident Year | Unaudited | ||||||||||||||||||||
2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | ||||||||||||
2008 | $ | 69,053 | 104,711 | 130,857 | 151,741 | 166,487 | 173,795 | 175,244 | 180,779 | 181,779 | 181,979 | ||||||||||
2009 | 63,126 | 94,406 | 113,697 | 137,564 | 149,949 | 155,560 | 158,303 | 159,723 | 160,013 | ||||||||||||
2010 | 68,098 | 99,254 | 128,015 | 146,913 | 163,513 | 167,227 | 169,100 | 169,793 | |||||||||||||
2011 | 69,849 | 99,196 | 121,576 | 142,507 | 157,291 | 166,082 | 170,000 | ||||||||||||||
2012 | 73,316 | 105,371 | 127,235 | 148,669 | 168,114 | 176,656 | |||||||||||||||
2013 | 76,469 | 109,893 | 140,015 | 169,850 | 189,626 | ||||||||||||||||
2014 | 80,810 | 117,169 | 148,884 | 180,701 | |||||||||||||||||
2015 | 91,347 | 132,260 | 175,866 | ||||||||||||||||||
2016 | 106,022 | 155,720 | |||||||||||||||||||
2017 | 117,287 | ||||||||||||||||||||
Total | 1,677,641 | ||||||||||||||||||||
All outstanding liabilities before 2008, net of reinsurance | 4,158 | ||||||||||||||||||||
Liabilities for loss and loss adjustment expenses, net of reinsurance | 464,131 |
Businessowners' Policies (in thousands, except for claim counts) | ||||||||||||||||||||||||||
Incurred Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance | As of December 31, 2017 | |||||||||||||||||||||||||
Accident Year | Unaudited | IBNR | Cumulative Number of Reported Claims | |||||||||||||||||||||||
2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | |||||||||||||||||
2008 | $ | 39,660 | 38,986 | 39,334 | 32,974 | 30,250 | 29,793 | 31,066 | 31,340 | 30,967 | 31,065 | 192 | 3,258 | |||||||||||||
2009 | 48,535 | 51,762 | 46,645 | 43,828 | 43,553 | 44,938 | 44,299 | 44,273 | 43,933 | 272 | 3,474 | |||||||||||||||
2010 | 53,669 | 49,285 | 42,408 | 39,915 | 40,899 | 40,581 | 41,239 | 41,197 | 697 | 3,917 | ||||||||||||||||
2011 | 54,469 | 57,083 | 51,047 | 58,242 | 59,256 | 58,966 | 58,456 | 1,080 | 4,959 | |||||||||||||||||
2012 | 54,342 | 48,029 | 46,303 | 44,172 | 44,077 | 43,747 | 756 | 5,540 | ||||||||||||||||||
2013 | 49,617 | 42,618 | 41,005 | 40,624 | 41,369 | 3,192 | 3,479 | |||||||||||||||||||
2014 | 55,962 | 60,949 | 62,548 | 59,806 | 5,952 | 4,054 | ||||||||||||||||||||
2015 | 52,871 | 53,768 | 57,245 | 10,256 | 3,913 | |||||||||||||||||||||
2016 | 52,335 | 53,792 | 11,938 | 3,757 | ||||||||||||||||||||||
2017 | 46,624 | 15,252 | 3,462 | |||||||||||||||||||||||
Total | 477,234 |
Businessowners' Policies (in thousands) | |||||||||||||||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance | |||||||||||||||||||||
Accident Year | Unaudited | ||||||||||||||||||||
2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | ||||||||||||
2008 | $ | 15,019 | 21,765 | 24,449 | 25,738 | 28,026 | 28,660 | 28,589 | 29,778 | 30,873 | 30,873 | ||||||||||
2009 | 18,915 | 29,612 | 32,689 | 36,073 | 40,052 | 42,895 | 43,358 | 43,448 | 43,547 | ||||||||||||
2010 | 20,821 | 28,131 | 31,027 | 34,705 | 37,819 | 38,900 | 40,279 | 40,395 | |||||||||||||
2011 | 27,884 | 37,362 | 41,011 | 46,444 | 52,114 | 55,856 | 57,045 | ||||||||||||||
2012 | 22,199 | 31,833 | 35,089 | 37,215 | 38,766 | 40,627 | |||||||||||||||
2013 | 17,412 | 26,592 | 30,845 | 34,760 | 37,993 | ||||||||||||||||
2014 | 28,914 | 40,584 | 44,911 | 49,460 | |||||||||||||||||
2015 | 24,189 | 36,014 | 42,710 | ||||||||||||||||||
2016 | 24,655 | 36,848 | |||||||||||||||||||
2017 | 21,865 | ||||||||||||||||||||
Total | 401,363 | ||||||||||||||||||||
All outstanding liabilities before 2008, net of reinsurance | 7,292 | ||||||||||||||||||||
Liabilities for loss and loss adjustment expenses, net of reinsurance | 83,163 |
Commercial Property (in thousands, except for claim counts) | ||||||||||||||||||||||||||
Incurred Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance | As of December 31, 2017 | |||||||||||||||||||||||||
Accident Year | Unaudited | IBNR | Cumulative Number of Reported Claims | |||||||||||||||||||||||
2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | |||||||||||||||||
2008 | $ | 97,578 | 102,860 | 101,436 | 101,470 | 101,265 | 101,702 | 101,043 | 100,881 | 101,043 | 101,054 | 2 | 7,604 | |||||||||||||
2009 | 82,619 | 82,124 | 82,025 | 82,014 | 80,774 | 80,455 | 80,558 | 80,545 | 80,416 | 4 | 7,009 | |||||||||||||||
2010 | 105,647 | 96,851 | 97,386 | 96,127 | 95,530 | 95,363 | 95,178 | 95,155 | 5 | 7,667 | ||||||||||||||||
2011 | 136,954 | 131,667 | 130,942 | 131,282 | 131,353 | 131,113 | 131,049 | 4 | 9,036 | |||||||||||||||||
2012 | 118,464 | 114,224 | 115,375 | 116,658 | 117,102 | 117,170 | 24 | 8,514 | ||||||||||||||||||
2013 | 88,101 | 90,639 | 90,103 | 90,005 | 90,436 | 42 | 5,709 | |||||||||||||||||||
2014 | 141,192 | 136,249 | 136,820 | 138,751 | 126 | 6,512 | ||||||||||||||||||||
2015 | 110,270 | 109,513 | 111,750 | 261 | 6,398 | |||||||||||||||||||||
2016 | 121,927 | 126,185 | 804 | 6,686 | ||||||||||||||||||||||
2017 | 138,773 | 8,794 | 6,358 | |||||||||||||||||||||||
Total | 1,130,739 |
Commercial Property (in thousands) | |||||||||||||||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance | |||||||||||||||||||||
Accident Year | Unaudited | ||||||||||||||||||||
2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | ||||||||||||
2008 | $ | 68,211 | 98,921 | 100,465 | 99,288 | 100,213 | 100,752 | 100,908 | 100,868 | 101,034 | 101,032 | ||||||||||
2009 | 59,933 | 78,695 | 80,433 | 80,894 | 80,251 | 80,352 | 80,529 | 80,509 | 80,405 | ||||||||||||
2010 | 69,543 | 91,918 | 94,602 | 95,111 | 95,270 | 95,147 | 95,156 | 95,150 | |||||||||||||
2011 | 94,538 | 127,580 | 129,579 | 130,681 | 131,060 | 131,115 | 131,089 | ||||||||||||||
2012 | 81,528 | 108,834 | 111,503 | 114,699 | 116,291 | 116,625 | |||||||||||||||
2013 | 60,244 | 87,874 | 90,446 | 90,350 | 90,840 | ||||||||||||||||
2014 | 101,131 | 132,909 | 136,634 | 137,883 | |||||||||||||||||
2015 | 79,048 | 106,182 | 109,829 | ||||||||||||||||||
2016 | 83,966 | 118,789 | |||||||||||||||||||
2017 | 99,047 | ||||||||||||||||||||
Total | 1,080,689 | ||||||||||||||||||||
All outstanding liabilities before 2008, net of reinsurance | 250 | ||||||||||||||||||||
Liabilities for loss and loss adjustment expenses, net of reinsurance | 50,300 |
Personal Automobile (in thousands, except for claim counts) | ||||||||||||||||||||||||||
Incurred Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance | As of December 31, 2017 | |||||||||||||||||||||||||
Accident Year | Unaudited | IBNR | Cumulative Number of Reported Claims | |||||||||||||||||||||||
2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | |||||||||||||||||
2008 | $ | 100,311 | 106,999 | 106,842 | 103,934 | 100,213 | 99,912 | 99,686 | 99,255 | 99,116 | 99,270 | 191 | 16,042 | |||||||||||||
2009 | 93,808 | 103,319 | 105,033 | 103,908 | 104,734 | 103,866 | 103,393 | 103,412 | 103,348 | 191 | 17,346 | |||||||||||||||
2010 | 103,340 | 110,075 | 112,346 | 109,515 | 107,490 | 107,405 | 107,224 | 107,054 | 222 | 20,822 | ||||||||||||||||
2011 | 113,232 | 116,164 | 113,686 | 112,993 | 114,241 | 113,830 | 113,988 | 284 | 22,700 | |||||||||||||||||
2012 | 113,771 | 114,921 | 109,832 | 109,324 | 110,294 | 110,300 | 728 | 22,332 | ||||||||||||||||||
2013 | 108,417 | 109,620 | 106,225 | 106,703 | 107,759 | 851 | 22,371 | |||||||||||||||||||
2014 | 102,250 | 109,325 | 106,757 | 107,452 | 2,554 | 22,499 | ||||||||||||||||||||
2015 | 96,387 | 99,698 | 100,214 | 6,541 | 20,840 | |||||||||||||||||||||
2016 | 92,727 | 98,032 | 11,651 | 19,747 | ||||||||||||||||||||||
2017 | 101,880 | 22,284 | 19,818 | |||||||||||||||||||||||
Total | 1,049,297 |
Personal Automobile (in thousands) | |||||||||||||||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance | |||||||||||||||||||||
Accident Year | Unaudited | ||||||||||||||||||||
2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | ||||||||||||
2008 | $ | 50,396 | 73,194 | 84,715 | 91,834 | 95,932 | 97,723 | 98,174 | 98,604 | 98,668 | 98,810 | ||||||||||
2009 | 51,039 | 71,911 | 86,431 | 96,229 | 100,566 | 102,187 | 102,322 | 102,437 | 103,009 | ||||||||||||
2010 | 58,786 | 82,490 | 95,300 | 101,540 | 104,061 | 105,849 | 106,453 | 106,733 | |||||||||||||
2011 | 61,323 | 82,102 | 93,878 | 105,068 | 111,085 | 112,732 | 113,551 | ||||||||||||||
2012 | 63,704 | 82,729 | 94,842 | 102,977 | 107,890 | 109,355 | |||||||||||||||
2013 | 61,384 | 80,861 | 92,637 | 100,528 | 105,131 | ||||||||||||||||
2014 | 62,519 | 83,739 | 92,589 | 99,173 | |||||||||||||||||
2015 | 58,725 | 76,470 | 87,163 | ||||||||||||||||||
2016 | 57,961 | 76,823 | |||||||||||||||||||
2017 | 62,854 | ||||||||||||||||||||
Total | 962,602 | ||||||||||||||||||||
All outstanding liabilities before 2008, net of reinsurance | 5,862 | ||||||||||||||||||||
Liabilities for loss and loss adjustment expenses, net of reinsurance | 92,557 |
Homeowners (in thousands, except for claim counts) | ||||||||||||||||||||||||||
Incurred Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance | As of December 31, 2017 | |||||||||||||||||||||||||
Accident Year | Unaudited | IBNR | Cumulative Number of Reported Claims | |||||||||||||||||||||||
2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | |||||||||||||||||
2008 | $ | 41,224 | 41,747 | 39,342 | 39,203 | 38,062 | 38,410 | 38,111 | 38,042 | 38,045 | 38,038 | 56 | 5,139 | |||||||||||||
2009 | 47,636 | 44,511 | 42,609 | 40,313 | 61,927 | 40,400 | 40,465 | 40,457 | 40,451 | 73 | 5,633 | |||||||||||||||
2010 | 68,373 | 67,525 | 63,285 | 97,761 | 62,462 | 62,402 | 62,339 | 62,392 | 84 | 9,131 | ||||||||||||||||
2011 | 103,804 | 98,211 | 82,744 | 94,167 | 94,543 | 94,183 | 94,378 | 159 | 15,106 | |||||||||||||||||
2012 | 87,260 | 82,745 | 86,560 | 86,667 | 86,271 | 86,330 | 180 | 16,936 | ||||||||||||||||||
2013 | 73,670 | 72,528 | 71,494 | 72,145 | 71,714 | 284 | 7,747 | |||||||||||||||||||
2014 | 80,111 | 82,461 | 83,637 | 83,844 | 1,146 | 8,762 | ||||||||||||||||||||
2015 | 76,637 | 76,400 | 76,559 | 2,744 | 7,724 | |||||||||||||||||||||
2016 | 60,105 | 60,931 | 2,067 | 6,820 | ||||||||||||||||||||||
2017 | 59,167 | 5,315 | 6,651 | |||||||||||||||||||||||
Total | 673,804 |
Homeowners (in thousands) | |||||||||||||||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance | |||||||||||||||||||||
Accident Year | Unaudited | ||||||||||||||||||||
2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | ||||||||||||
2008 | $ | 21,277 | 33,535 | 36,271 | 37,086 | 37,763 | 37,837 | 37,933 | 37,939 | 37,930 | 37,928 | ||||||||||
2009 | 28,299 | 36,965 | 38,078 | 39,342 | 39,731 | 39,819 | 39,907 | 40,189 | 40,269 | ||||||||||||
2010 | 43,699 | 58,638 | 60,295 | 61,106 | 62,155 | 62,227 | 62,241 | 62,272 | |||||||||||||
2011 | 71,668 | 89,963 | 91,718 | 92,185 | 93,312 | 93,720 | 94,007 | ||||||||||||||
2012 | 69,056 | 79,584 | 82,720 | 84,250 | 85,196 | 85,562 | |||||||||||||||
2013 | 50,664 | 65,528 | 67,838 | 69,775 | 71,776 | ||||||||||||||||
2014 | 61,561 | 76,007 | 79,751 | 81,664 | |||||||||||||||||
2015 | 52,589 | 70,078 | 72,202 | ||||||||||||||||||
2016 | 42,252 | 57,333 | |||||||||||||||||||
2017 | 45,466 | ||||||||||||||||||||
Total | 648,479 | ||||||||||||||||||||
All outstanding liabilities before 2008, net of reinsurance | 5,403 | ||||||||||||||||||||
Liabilities for loss and loss adjustment expenses, net of reinsurance | 30,728 |
E&S Casualty Lines (in thousands, except for claim counts) | ||||||||||||||||||||
Incurred Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance | As of December 31, 2017 | |||||||||||||||||||
Accident Year | Unaudited | IBNR | Cumulative Number of Reported Claims | |||||||||||||||||
2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | ||||||||||||||
2008 | $ | 92 | 169 | 146 | 119 | 52 | (162 | ) | 119 | — | 35 | |||||||||
2009 | 885 | 1,053 | 938 | 728 | 710 | 96 | 737 | — | 274 | |||||||||||
2010 | 3,294 | 4,106 | 3,369 | 4,299 | 3,831 | 3,055 | 4,932 | — | 804 | |||||||||||
2011 | 8,127 | 7,102 | 9,853 | 12,207 | 10,273 | 9,652 | 10,228 | 361 | 1,316 | |||||||||||
2012 | 42,367 | 42,621 | 43,175 | 46,149 | 46,165 | 45,988 | 7,313 | 2,006 | ||||||||||||
2013 | 55,468 | 60,309 | 67,099 | 69,112 | 67,647 | 15,326 | 2,219 | |||||||||||||
2014 | 55,316 | 63,505 | 69,929 | 71,719 | 18,224 | 1,987 | ||||||||||||||
2015 | 75,498 | 76,432 | 82,404 | 32,909 | 2,606 | |||||||||||||||
2016 | 94,451 | 96,416 | 65,489 | 2,454 | ||||||||||||||||
2017 | 91,438 | 79,354 | 1,760 | |||||||||||||||||
Total | 471,628 |
E&S Casualty Lines (in thousands) | |||||||||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance | |||||||||||||||
Accident Year | Unaudited | ||||||||||||||
2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | |||||||||
2008 | $ | — | 24 | 70 | 80 | 79 | 92 | 97 | |||||||
2009 | — | 198 | 431 | 605 | 626 | 709 | 737 | ||||||||
2010 | — | 1,218 | 2,570 | 3,574 | 4,078 | 4,513 | 4,610 | ||||||||
2011 | — | 806 | 3,200 | 6,445 | 9,954 | 9,912 | 10,256 | ||||||||
2012 | 3,722 | 7,914 | 16,430 | 25,064 | 32,343 | 36,278 | |||||||||
2013 | 2,715 | 9,470 | 21,980 | 35,200 | 46,108 | ||||||||||
2014 | 2,353 | 12,234 | 25,571 | 43,877 | |||||||||||
2015 | 3,036 | 13,057 | 29,389 | ||||||||||||
2016 | 3,720 | 16,195 | |||||||||||||
2017 | 5,057 | ||||||||||||||
Total | 192,604 | ||||||||||||||
All outstanding liabilities before 2008, net of reinsurance | — | ||||||||||||||
Liabilities for loss and loss adjustment expenses, net of reinsurance | 279,023 |
(in thousands) | December 31, | ||||
Net outstanding liabilities: | |||||
Standard Commercial Lines | |||||
General liability | 1,380,902 | ||||
Workers compensation | |||||
Commercial automobile | |||||
Businessowners' policies | |||||
Commercial property | |||||
Other Standard Commercial Lines | |||||
Total Standard Commercial Lines net outstanding liabilities | |||||
Standard Personal Lines | |||||
Personal automobile | |||||
Homeowners | |||||
Other Standard Personal Lines | |||||
Total Standard Personal Lines net outstanding liabilities | |||||
E&S Lines | |||||
Casualty lines | |||||
Property lines | |||||
Total E&S Lines net outstanding liabilities | |||||
Total liabilities for unpaid loss and loss | |||||
Reinsurance recoverable on unpaid claims: | |||||
Standard Commercial Lines | |||||
General liability | |||||
Workers compensation | |||||
Commercial automobile | |||||
Businessowners' policies | |||||
Commercial property | |||||
Other Standard Commercial Lines | |||||
Total Standard Commercial Lines reinsurance recoverable on unpaid loss | |||||
Standard Personal Lines | |||||
Personal automobile | |||||
Homeowners | |||||
Other Standard Personal Lines | |||||
Total Standard Personal Lines reinsurance recoverable on unpaid loss | |||||
E&S Lines | |||||
Casualty lines | |||||
Property lines | |||||
Total E&S Lines reinsurance recoverable on unpaid loss | |||||
Total reinsurance recoverable on unpaid loss | |||||
Unallocated loss | |||||
Total gross liability for unpaid loss and loss | 4,260,355 |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance | ||||||||||||||||||||||||||||||||
Years | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | ||||||||||||||||||||||
General liability | 6.3% | 12.2 | 15.7 | 17.0 | 14.9 | 9.8 | 6.0 | 5.1 | 2.0 | 1.8 | ||||||||||||||||||||||
Workers compensation | 21.8 | 25.6 | 13.5 | 8.1 | 4.3 | 3.6 | 3.5 | 2.0 | 1.6 | 1.2 | ||||||||||||||||||||||
Commercial automobile | 37.5 | 17.3 | 14.1 | 12.7 | 10.0 | 4.6 | 1.6 | 0.8 | 0.9 | 0.3 | ||||||||||||||||||||||
Businessowners’ policies | 48.6 | 19.4 | 8.5 | 8.9 | 6.7 | 3.7 | 1.5 | 0.2 | 0.2 | 0.2 | ||||||||||||||||||||||
Commercial property | 70.0 | 25.7 | 2.8 | 1.0 | 0.4 | 0 | 0.1 | 0.1 | 0.1 | 0.1 | ||||||||||||||||||||||
Personal automobile | 58.4 | 18.8 | 9.6 | 6.7 | 4.2 | 1.3 | 0.5 | 0.2 | 0.2 | 0.1 | ||||||||||||||||||||||
Homeowners | 71.9 | 20.4 | 3.3 | 1.7 | 1.7 | 0.3 | 0.1 | 0.1 | 0.1 | 0.3 | ||||||||||||||||||||||
E&S Lines - casualty | 4.1 | 12.0 | 17.4 | 21.7 | 13.5 | 9.0 | 7.2 | 3.5 | 2.0 | 2.0 |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance | ||||||||||
Years | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
General liability | 6.6% | 12.5 | 15.4 | 16.7 | 14.9 | 10.1 | 6.0 | 4.6 | 2.2 | 1.3 |
Workers compensation | 20.2 | 23.9 | 13.6 | 8.3 | 5.0 | 3.9 | 2.8 | 2.0 | 1.8 | 1.9 |
Commercial automobile | 38.2 | 17.4 | 14.0 | 12.8 | 9.0 | 4.1 | 1.6 | 1.4 | 0.7 | 0.1 |
Businessowners’ policies | 46.6 | 20.8 | 8.1 | 7.5 | 7.5 | 4.1 | 2.0 | 1.6 | 0.1 | 1.1 |
Commercial property | 70.5 | 25.6 | 2.7 | 0.7 | 0.4 | 0.1 | — | — | — | — |
Personal automobile | 56.1 | 18.9 | 10.7 | 7.4 | 4.2 | 1.5 | 0.4 | 0.1 | 0.2 | — |
Homeowners | 71.1 | 21.0 | 3.3 | 2.1 | 1.6 | 0.1 | — | 0.2 | 0.2 | 0.1 |
E&S Lines - casualty | 4.5 | 12.5 | 18.2 | 20.4 | 15.5 | 8.3 | 4.0 |
Outstanding Debt | 2020 | Carry Value | ||||||||||||||||||||||||||||||||||||||||||||||||
Issuance Date | Maturity Date | Interest Rate | Original Amount | Unamortized Issuance Costs | Debt Discount | December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Description | ||||||||||||||||||||||||||||||||||||||||||||||||||
Long term | ||||||||||||||||||||||||||||||||||||||||||||||||||
(1) Senior Notes | 3/1/2019 | 3/1/2049 | 5.375 | % | 300,000 | $ | 2,934 | 5,759 | 291,307 | 291,010 | ||||||||||||||||||||||||||||||||||||||||
(2) FHLBI | 12/16/2016 | 12/16/2026 | 3.03 | % | 60,000 | 0 | 0 | 60,000 | 60,000 | |||||||||||||||||||||||||||||||||||||||||
(3) FHLBNY | 8/15/2016 | 8/16/2021 | 1.56 | % | 25,000 | 0 | 0 | 25,000 | 25,000 | |||||||||||||||||||||||||||||||||||||||||
(3) FHLBNY | 7/21/2016 | 7/21/2021 | 1.61 | % | 25,000 | 0 | 0 | 25,000 | 25,000 | |||||||||||||||||||||||||||||||||||||||||
(4) Senior Notes | 11/3/2005 | 11/1/2035 | 6.70 | % | 100,000 | 319 | 501 | 99,180 | 99,125 | |||||||||||||||||||||||||||||||||||||||||
(5) Senior Notes | 11/16/2004 | 11/15/2034 | 7.25 | % | 50,000 | 166 | 86 | 49,748 | 49,725 | |||||||||||||||||||||||||||||||||||||||||
Finance lease obligations | 508 | 737 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total long-term debt | $ | 3,419 | 6,346 | 550,743 | 550,597 |
Outstanding Debt | 2017 | Carry Value | ||||||||||||||||||
($ in thousands) | Issuance Date | Maturity Date | Interest Rate | Original Amount | Debt Discount and Unamortized Issuance Costs | December 31, 2017 | December 31, 2016 | |||||||||||||
Description | ||||||||||||||||||||
Long-term: | ||||||||||||||||||||
(1) FHLBI | 12/16/2016 | 12/16/2026 | 3.03 | % | $ | 60,000 | — | 60,000 | 60,000 | |||||||||||
(2) FHLBNY | 8/15/2016 | 8/16/2021 | 1.56 | % | 25,000 | — | 25,000 | 25,000 | ||||||||||||
(2) FHLBNY | 7/21/2016 | 7/21/2021 | 1.61 | % | 25,000 | — | 25,000 | 25,000 | ||||||||||||
(3) Senior Notes | 2/8/2013 | 2/9/2043 | 5.875 | % | 185,000 | (4,570 | ) | 180,430 | 180,068 | |||||||||||
(4) Senior Notes | 11/3/2005 | 11/1/2035 | 6.70 | % | 100,000 | (989 | ) | 99,011 | 98,952 | |||||||||||
(5) Senior Notes | 11/16/2004 | 11/15/2034 | 7.25 | % | 50,000 | (325 | ) | 49,675 | 49,647 | |||||||||||
Total long-term debt | $ | 445,000 | (5,884 | ) | 439,116 | 438,667 |
Required as of | Actual as of | ||||||||||||||||
December 31, 2020 | December 31, 2020 | ||||||||||||||||
Consolidated net worth1 | Not less than | $1.6 billion | $2.5 billion | ||||||||||||||
Debt to total capitalization ratio1 | Not to exceed | 35% | 17.9% |
Revenue by Segment | Years ended December 31, | |||||||||||||||||||
($ in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||
Standard Commercial Lines: | ||||||||||||||||||||
Net premiums earned: | ||||||||||||||||||||
Commercial automobile | $ | 615,181 | 554,256 | 493,093 | ||||||||||||||||
Workers compensation | 278,062 | 311,370 | 317,616 | |||||||||||||||||
General liability | 694,019 | 669,895 | 616,187 | |||||||||||||||||
Commercial property | 388,120 | 353,834 | 329,660 | |||||||||||||||||
Businessowners’ policies | 110,210 | 105,252 | 103,412 | |||||||||||||||||
Bonds | 36,742 | 35,726 | 33,991 | |||||||||||||||||
Other | 20,850 | 19,281 | 18,263 | |||||||||||||||||
Miscellaneous income | 15,512 | 10,889 | 8,180 | |||||||||||||||||
Total Standard Commercial Lines revenue | 2,158,696 | 2,060,503 | 1,920,402 | |||||||||||||||||
Standard Personal Lines: | ||||||||||||||||||||
Net premiums earned: | ||||||||||||||||||||
Personal automobile | 165,020 | 172,606 | 168,250 | |||||||||||||||||
Homeowners | 125,405 | 127,543 | 128,961 | |||||||||||||||||
Other | 8,715 | 7,590 | 7,230 | |||||||||||||||||
Miscellaneous income | 2,058 | 1,466 | 1,257 | |||||||||||||||||
Total Standard Personal Lines revenue | 301,198 | 309,205 | 305,698 | |||||||||||||||||
E&S Lines: | ||||||||||||||||||||
Net premiums earned: | ||||||||||||||||||||
Casualty lines | 174,408 | 182,864 | 164,313 | |||||||||||||||||
Property lines | 65,082 | 56,954 | 55,253 | |||||||||||||||||
Miscellaneous income | 0 | 0 | 1 | |||||||||||||||||
Total E&S Lines revenue | 239,490 | 239,818 | 219,567 | |||||||||||||||||
Investments: | ||||||||||||||||||||
Net investment income | 227,107 | 222,543 | 195,336 | |||||||||||||||||
Net realized and unrealized investment (losses) gains | (4,217) | 14,422 | (54,923) | |||||||||||||||||
Total Investments revenues | 222,890 | 236,965 | 140,413 | |||||||||||||||||
Total revenues | $ | 2,922,274 | 2,846,491 | 2,586,080 |
Revenue by Segment | Years ended December 31, | |||||||||
($ in thousands) | 2017 | 2016 | 2015 | |||||||
Standard Commercial Lines: | ||||||||||
Net premiums earned: | ||||||||||
Commercial automobile | $ | 442,818 | 398,942 | 358,909 | ||||||
Workers compensation | 317,982 | 308,233 | 290,075 | |||||||
General liability | 569,217 | 527,859 | 483,291 | |||||||
Commercial property | 311,932 | 293,438 | 269,022 | |||||||
Businessowners’ policies | 100,266 | 97,754 | 93,428 | |||||||
Bonds | 29,086 | 23,227 | 20,350 | |||||||
Other | 17,198 | 16,030 | 14,367 | |||||||
Miscellaneous income | 9,488 | 7,782 | 6,343 | |||||||
Total Standard Commercial Lines revenue | 1,797,987 | 1,673,265 | 1,535,785 | |||||||
Standard Personal Lines: | ||||||||||
Net premiums earned: | ||||||||||
Personal automobile | 153,147 | 142,876 | 146,784 | |||||||
Homeowners | 129,699 | 130,973 | 134,382 | |||||||
Other | 6,855 | 6,758 | 6,968 | |||||||
Miscellaneous income | 1,228 | 1,098 | 1,113 | |||||||
Total Standard Personal Lines revenue | 290,929 | 281,705 | 289,247 | |||||||
E&S Lines: | ||||||||||
Net premiums earned: | ||||||||||
Casualty lines | 157,366 | 151,638 | 126,064 | |||||||
Property lines | 55,461 | 51,844 | 46,269 | |||||||
Miscellaneous income | — | 1 | — | |||||||
Total E&S Lines revenue | 212,827 | 203,483 | 172,333 | |||||||
Investments: | ||||||||||
Net investment income | 161,882 | 130,754 | 121,316 | |||||||
Net realized investment gains (losses) | 6,359 | (4,937 | ) | 13,171 | ||||||
Total Investments revenues | 168,241 | 125,817 | 134,487 | |||||||
Total revenues | $ | 2,469,984 | 2,284,270 | 2,131,852 |
Income Before and After Federal Income Tax | Years ended December 31, | |||||||||||||||||||
($ in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||
Standard Commercial Lines: | ||||||||||||||||||||
Underwriting gain, before federal income tax | $ | 151,731 | 145,990 | 109,104 | ||||||||||||||||
Underwriting gain, after federal income tax | 119,867 | 115,332 | 86,192 | |||||||||||||||||
Combined ratio | 92.9 | % | 92.9 | % | 94.3 | % | ||||||||||||||
ROE contribution | 5.1 | % | 5.8 | 4.9 | ||||||||||||||||
Standard Personal Lines: | ||||||||||||||||||||
Underwriting (loss) gain, before federal income tax | (15,508) | 8,260 | 12,764 | |||||||||||||||||
Underwriting (loss) gain, after federal income tax | (12,251) | 6,525 | 10,084 | |||||||||||||||||
Combined ratio | 105.2 | % | 97.3 | % | 95.8 | % | ||||||||||||||
ROE contribution | (0.5) | % | 0.3 | 0.6 | ||||||||||||||||
E&S Lines: | ||||||||||||||||||||
Underwriting gain (loss), before federal income tax | 126 | 9,743 | (695) | |||||||||||||||||
Underwriting gain (loss), after federal income tax | 100 | 7,697 | (549) | |||||||||||||||||
Combined ratio | 99.9 | % | 95.9 | % | 100.3 | % | ||||||||||||||
ROE contribution | 0 | % | 0.4 | 0 | ||||||||||||||||
Investments: | ||||||||||||||||||||
Net investment income | $ | 227,107 | 222,543 | 195,336 | ||||||||||||||||
Net realized and unrealized investment (losses) gains | (4,217) | 14,422 | (54,923) | |||||||||||||||||
Total investment segment income, before federal income tax | 222,890 | 236,965 | 140,413 | |||||||||||||||||
Tax on investment segment income | 41,609 | 45,301 | 19,560 | |||||||||||||||||
Total investment segment income, after federal income tax | $ | 181,281 | 191,664 | 120,853 | ||||||||||||||||
ROE contribution of after-tax net investment income | 7.8 | % | 9.6 | 6.9 |
Reconciliation of Segment Results to Income Before Federal Income Tax | Years ended December 31, | |||||||||||||||||||
($ in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||
Underwriting gain (loss) | ||||||||||||||||||||
Standard Commercial Lines | $ | 151,731 | 145,990 | 109,104 | ||||||||||||||||
Standard Personal Lines | (15,508) | 8,260 | 12,764 | |||||||||||||||||
E&S Lines | 126 | 9,743 | (695) | |||||||||||||||||
Investment income | 222,890 | 236,965 | 140,413 | |||||||||||||||||
Total all segments | 359,239 | 400,958 | 261,586 | |||||||||||||||||
Interest expense | (30,839) | (33,668) | (24,419) | |||||||||||||||||
Corporate expenses | (25,412) | (30,900) | (25,446) | |||||||||||||||||
Income, before federal income tax | $ | 302,988 | 336,390 | 211,721 |
Income Before Federal Income Tax | Years ended December 31, | |||||||||
($ in thousands) | 2017 | 2016 | 2015 | |||||||
Standard Commercial Lines: | ||||||||||
Underwriting gain, before federal income tax | $ | 149,514 | 146,435 | 164,496 | ||||||
Underwriting gain, after federal income tax | 97,184 | 95,183 | 106,923 | |||||||
Combined ratio | 91.6 | % | 91.2 | % | 89.2 | % | ||||
Standard Personal Lines: | ||||||||||
Underwriting gain, before federal income tax | 11,104 | 12,419 | 1,336 | |||||||
Underwriting gain, after federal income tax | 7,217 | 8,072 | 868 | |||||||
Combined ratio | 96.2 | % | 95.6 | % | 99.5 | % | ||||
E&S Lines: | ||||||||||
Underwriting loss, before federal income tax | (6,282 | ) | (6,921 | ) | (16,803 | ) | ||||
Underwriting loss, after federal income tax | (4,083 | ) | (4,499 | ) | (10,922 | ) | ||||
Combined ratio | 103.0 | % | 103.4 | % | 109.8 | % | ||||
Investments: | ||||||||||
Net investment income | $ | 161,882 | 130,754 | 121,316 | ||||||
Net realized investment gains (losses) | 6,359 | (4,937 | ) | 13,171 | ||||||
Total investment income, before federal income tax | 168,241 | 125,817 | 134,487 | |||||||
Tax on investment income | 45,588 | 30,621 | 32,090 | |||||||
Total investment income, after federal income tax | $ | 122,653 | 95,196 | 102,397 |
Reconciliation of Segment Results to Income Before Federal Income Tax | Years ended December 31, | |||||||||
($ in thousands) | 2017 | 2016 | 2015 | |||||||
Underwriting gain (loss) | ||||||||||
Standard Commercial Lines | $ | 149,514 | 146,435 | 164,496 | ||||||
Standard Personal Lines | 11,104 | 12,419 | 1,336 | |||||||
E&S Lines | (6,282 | ) | (6,921 | ) | (16,803 | ) | ||||
Investment income | 168,241 | 125,817 | 134,487 | |||||||
Total all segments | 322,577 | 277,750 | 283,516 | |||||||
Interest expense | (24,354 | ) | (22,771 | ) | (22,428 | ) | ||||
Corporate expenses | (36,255 | ) | (35,024 | ) | (28,396 | ) | ||||
Income, before federal income tax | $ | 261,968 | 219,955 | 232,692 |
2020 | Income | Shares | Per Share | |||||||||||||||||
($ in thousands, except per share amounts) | (Numerator) | (Denominator) | Amount | |||||||||||||||||
Basic EPS: | ||||||||||||||||||||
Net income available to common stockholders | $ | 246,355 | 59,862 | $ | 4.12 | |||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||||
Stock compensation plans | — | 431 | ||||||||||||||||||
Diluted EPS: | ||||||||||||||||||||
Net income available to common stockholders | $ | 246,355 | 60,293 | $ | 4.09 |
2019 | 2019 | Income | Shares | Per Share | |||||||||||||||||||||||||||
($ in thousands, except per share amounts) | ($ in thousands, except per share amounts) | (Numerator) | (Denominator) | Amount | |||||||||||||||||||||||||||
Basic EPS: | Basic EPS: | ||||||||||||||||||||||||||||||
2017 | Income | Shares | Per Share | ||||||||||||||||||||||||||||
($ in thousands, except per share amounts) | (Numerator) | (Denominator) | Amount | ||||||||||||||||||||||||||||
Basic EPS: | |||||||||||||||||||||||||||||||
Net income available to common stockholders | $ | 168,826 | 58,458 | $ | 2.89 | Net income available to common stockholders | $ | 271,623 | 59,421 | $ | 4.57 | ||||||||||||||||||||
Effect of dilutive securities: | Effect of dilutive securities: | ||||||||||||||||||||||||||||||
Stock compensation plans | — | 899 | Stock compensation plans | — | 583 | ||||||||||||||||||||||||||
Diluted EPS: | Diluted EPS: | ||||||||||||||||||||||||||||||
Net income available to common stockholders | $ | 168,826 | 59,357 | $ | 2.84 | Net income available to common stockholders | $ | 271,623 | 60,004 | $ | 4.53 |
2016 | Income | Shares | Per Share | ||||||||
($ in thousands, except per share amounts) | (Numerator) | (Denominator) | Amount | ||||||||
Basic EPS: | |||||||||||
Net income available to common stockholders | $ | 158,495 | 57,889 | $ | 2.74 | ||||||
Effect of dilutive securities: | |||||||||||
Stock compensation plans | — | 858 | |||||||||
Diluted EPS: | |||||||||||
Net income available to common stockholders | $ | 158,495 | 58,747 | $ | 2.70 |
2018 | 2018 | Income | Shares | Per Share | |||||||||||||||||||||||||||
($ in thousands, except per share amounts) | ($ in thousands, except per share amounts) | (Numerator) | (Denominator) | Amount | |||||||||||||||||||||||||||
Basic EPS: | Basic EPS: | ||||||||||||||||||||||||||||||
2015 | Income | Shares | Per Share | ||||||||||||||||||||||||||||
($ in thousands, except per share amounts) | (Numerator) | (Denominator) | Amount | ||||||||||||||||||||||||||||
Basic EPS: | |||||||||||||||||||||||||||||||
Net income available to common stockholders | $ | 165,861 | 57,212 | $ | 2.90 | Net income available to common stockholders | $ | 178,939 | 58,950 | $ | 3.04 | ||||||||||||||||||||
Effect of dilutive securities: | Effect of dilutive securities: | ||||||||||||||||||||||||||||||
Stock compensation plans | — | 944 | Stock compensation plans | — | 763 | ||||||||||||||||||||||||||
Diluted EPS: | Diluted EPS: | ||||||||||||||||||||||||||||||
Net income available to common stockholders | $ | 165,861 | 58,156 | $ | 2.85 | Net income available to common stockholders | $ | 178,939 | 59,713 | $ | 3.00 |
($ in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||
Tax at statutory rate | $ | 63,627 | 70,642 | 44,461 | ||||||||||||||||
Tax-advantaged interest | (4,730) | (4,909) | (5,518) | |||||||||||||||||
Dividends received deduction | (514) | (443) | (647) | |||||||||||||||||
Executive compensation | 2,246 | 2,985 | 2,279 | |||||||||||||||||
Stock-based compensation | (1,846) | (3,253) | (3,093) | |||||||||||||||||
Other | (2,150) | (255) | (4,700) | |||||||||||||||||
Federal income tax expense | $ | 56,633 | 64,767 | 32,782 |
($ in thousands) | 2017 | 2016 | 2015 | |||||||
Tax at statutory rate of 35% | $ | 91,689 | 76,984 | 81,442 | ||||||
Tax-advantaged interest | (11,510 | ) | (12,126 | ) | (13,164 | ) | ||||
Dividends received deduction | (1,961 | ) | (1,114 | ) | (1,817 | ) | ||||
Stock based compensation | (4,281 | ) | — | — | ||||||
Tax reform rate change | 20,205 | — | — | |||||||
Other | (1,000 | ) | (2,284 | ) | 370 | |||||
Federal income tax expense from continuing operations | $ | 93,142 | 61,460 | 66,831 |
($ in thousands) | 2017 | 2016 | ($ in thousands) | 2020 | 2019 | ||||||||||||||||
Deferred tax assets: | Deferred tax assets: | ||||||||||||||||||||
Net loss reserve discounting | $ | 38,771 | 70,065 | Net loss reserve discounting | $ | 54,240 | 48,193 | ||||||||||||||
Net unearned premiums | 50,267 | 78,201 | Net unearned premiums | 60,842 | 57,004 | ||||||||||||||||
Employee benefits | 8,606 | 17,881 | Employee benefits | 8,943 | 10,646 | ||||||||||||||||
Long-term incentive compensation plans | 12,221 | 17,750 | Long-term incentive compensation plans | 5,472 | 5,727 | ||||||||||||||||
Temporary investment write-downs | 1,044 | 2,475 | Temporary investment write-downs | 6,037 | 1,059 | ||||||||||||||||
Other investment related items, net | — | 1,484 | |||||||||||||||||||
Net operating loss | 54 | 771 | |||||||||||||||||||
Other | 5,784 | 8,344 | Other | 7,195 | 6,478 | ||||||||||||||||
Total deferred tax assets | 116,747 | 196,971 | Total deferred tax assets | 142,729 | 129,107 | ||||||||||||||||
Deferred tax liabilities: | Deferred tax liabilities: | ||||||||||||||||||||
Deferred policy acquisition costs | 47,484 | 75,310 | Deferred policy acquisition costs | 60,601 | 56,949 | ||||||||||||||||
Unrealized gains on investment securities | 26,183 | 22,681 | Unrealized gains on investment securities | 81,142 | 45,294 | ||||||||||||||||
Other investment-related items, net | 2,500 | — | Other investment-related items, net | 14,760 | 7,576 | ||||||||||||||||
Accelerated depreciation and amortization | 8,590 | 14,140 | Accelerated depreciation and amortization | 13,322 | 12,512 | ||||||||||||||||
Total deferred tax liabilities | 84,757 | 112,131 | Total deferred tax liabilities | 169,825 | 122,331 | ||||||||||||||||
Net deferred federal income tax asset | $ | 31,990 | 84,840 | ||||||||||||||||||
Net deferred federal income tax (liability) asset | Net deferred federal income tax (liability) asset | $ | (27,096) | 6,776 |
December 31, | Pension Plan | |||||||||||||
($ in thousands) | 2020 | 2019 | ||||||||||||
Change in Benefit Obligation: | ||||||||||||||
Benefit obligation, beginning of year | $ | 391,021 | 334,679 | |||||||||||
Interest cost | 11,312 | 13,506 | ||||||||||||
Actuarial losses | 35,276 | 54,478 | ||||||||||||
Benefits paid | (12,448) | (11,642) | ||||||||||||
Benefit obligation, end of year | $ | 425,161 | 391,021 | |||||||||||
Change in Fair Value of Assets: | ||||||||||||||
Fair value of assets, beginning of year | $ | 385,087 | 331,680 | |||||||||||
Actual return on plan assets, net of expenses | 60,077 | 63,949 | ||||||||||||
Contributions by the employer to funded plans | 0 | 1,100 | ||||||||||||
Benefits paid | (12,448) | (11,642) | ||||||||||||
Fair value of assets, end of year | $ | 432,716 | 385,087 | |||||||||||
Funded status | $ | 7,555 | (5,934) |
December 31, | Pension Plan | ||||||
($ in thousands) | 2017 | 2016 | |||||
Change in Benefit Obligation: | |||||||
Benefit obligation, beginning of year | $ | 330,588 | 310,308 | ||||
Service cost | — | 1,647 | |||||
Interest cost | 12,490 | 12,336 | |||||
Actuarial losses | 31,158 | 15,086 | |||||
Benefits paid | (9,825 | ) | (8,789 | ) | |||
Benefit obligation, end of year | $ | 364,411 | 330,588 | ||||
Change in Fair Value of Assets: | |||||||
Fair value of assets, beginning of year | $ | 316,515 | 249,700 | ||||
Actual return on plan assets, net of expenses | 46,983 | 21,079 | |||||
Contributions by the employer to funded plans | 10,000 | 54,525 | |||||
Benefits paid | (9,825 | ) | (8,789 | ) | |||
Fair value of assets, end of year | $ | 363,673 | 316,515 | ||||
Funded status | $ | (738 | ) | (14,073 | ) |
Amounts Recognized in the Consolidated Balance Sheet: | ||||||||||||||
Assets | $ | 7,555 | 0 | |||||||||||
Liabilities | 0 | (5,934) | ||||||||||||
Net pension assets (liabilities), end of year | $ | 7,555 | (5,934) |
Amounts Recognized in AOCI: | ||||||||||||||
Net actuarial loss | $ | 101,414 | 107,125 | |||||||||||
Amounts Recognized in the Consolidated Balance Sheet: | |||||||
Liabilities | $ | (738 | ) | (14,073 | ) | ||
Net pension liability, end of year | $ | (738 | ) | (14,073 | ) |
Other Information as of December 31: | ||||||||||||||
Accumulated benefit obligation | $ | 425,161 | 391,021 |
Weighted-Average Liability Assumptions as of December 31: | ||||||||||||||
Discount rate | 2.68 | % | 3.33 |
Amounts Recognized in AOCI: | |||||||
Net actuarial loss | $ | 87,438 | 85,845 | ||||
Total | $ | 87,438 | 85,845 |
Pension Plan | ||||||||||||||||||||
($ in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||
Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income: | ||||||||||||||||||||
Net Periodic Benefit Cost (Benefit): | ||||||||||||||||||||
Interest cost | $ | 11,312 | 13,506 | 12,428 | ||||||||||||||||
Expected return on plan assets | (21,907) | (21,114) | (22,767) | |||||||||||||||||
Amortization of unrecognized actuarial loss | 2,817 | 2,575 | 1,981 | |||||||||||||||||
Total net periodic pension cost (benefit)1 | $ | (7,778) | (5,033) | (8,358) | ||||||||||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: | ||||||||||||||||||||
Net actuarial (gain) loss | $ | (2,894) | 11,643 | 12,600 | ||||||||||||||||
Reversal of amortization of net actuarial loss | (2,817) | (2,575) | (1,981) | |||||||||||||||||
Total recognized in other comprehensive income | $ | (5,711) | 9,068 | 10,619 | ||||||||||||||||
Total recognized in net periodic benefit cost and other comprehensive income | $ | (13,489) | 4,035 | 2,261 |
Other Information as of December 31: | |||||||
Accumulated benefit obligation | $ | 364,411 | 330,588 |
Weighted-Average Liability Assumptions as of December 31: | |||||
Discount rate | 3.78 | % | 4.41 |
Pension Plan | ||||||||||
($ in thousands) | 2017 | 2016 | 2015 | |||||||
Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income: | ||||||||||
Net Periodic Benefit Cost: | ||||||||||
Service cost | $ | — | 1,647 | 7,215 | ||||||
Interest cost | 12,490 | 12,336 | 13,668 | |||||||
Expected return on plan assets | (19,419 | ) | (17,309 | ) | (15,969 | ) | ||||
Amortization of unrecognized actuarial loss | 2,001 | 6,299 | 6,831 | |||||||
Total net periodic cost | $ | (4,928 | ) | 2,973 | 11,745 | |||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: | ||||||||||
Net actuarial loss (gain) | $ | 3,594 | 11,316 | (1,425 | ) | |||||
Reversal of amortization of net actuarial loss | (2,001 | ) | (6,299 | ) | (6,831 | ) | ||||
Total recognized in other comprehensive income | $ | 1,593 | 5,017 | (8,256 | ) | |||||
Total recognized in net periodic benefit cost and other comprehensive income | $ | (3,335 | ) | 7,990 | 3,489 |
Pension Plan | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Weighted-Average Expense Assumptions for the years ended December 31: | ||||||||||||||||||||
Discount rate | 3.33 | % | 4.46 | 3.78 | ||||||||||||||||
Expected return on plan assets | 5.80 | 6.50 | 6.36 |
Pension Plan | |||||||
2017 | 2016 | 2015 | |||||
Weighted-Average Expense Assumptions for the years ended December 31: | |||||||
Discount rate | 4.41 | % | 4.69 | 4.29 | |||
Expected return on plan assets | 6.24 | 6.37 | 6.27 | ||||
Rate of compensation increase1 | — | — | 4.00 |
2020 | 2019 | ||||||||||||||||||||||
Target Percentage | Actual Percentage | Actual Percentage | |||||||||||||||||||||
Minimum | Maximum | ||||||||||||||||||||||
Return seeking assets1 | 50 | % | 70% | 64 | % | 59 | % | ||||||||||||||||
Liability hedging assets | 70 | % | 80% | 35 | % | 38 | % | ||||||||||||||||
Short-term investments | - | - | 1 | % | 3 | % | |||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % |
2017 | 2016 | ||||||||
Target Percentage2 | Actual Percentage | Actual Percentage | |||||||
Return seeking assets1 | 20% - 60% | 58 | % | 50 | % | ||||
Liability hedging assets | 40% - 80% | 42 | % | 50 | % | ||||
Total | 100 | % | 100 | % | 100 | % |
December 31, 2020 | Fair Value Measurements at 12/31/20 Using | |||||||||||||||||||||||||
($ in thousands) | Assets Measured at Fair Value At 12/31/20 | Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||
Description | ||||||||||||||||||||||||||
Return seeking assets: | ||||||||||||||||||||||||||
Equities: | ||||||||||||||||||||||||||
Global equity | $ | 142,320 | 142,320 | 0 | 0 | |||||||||||||||||||||
Diversified credit | 73,762 | 73,762 | 0 | 0 | ||||||||||||||||||||||
Real assets | 61,585 | 61,585 | 0 | 0 | ||||||||||||||||||||||
Total equities | 277,667 | 277,667 | 0 | 0 | ||||||||||||||||||||||
Limited partnerships (at net asset value)1: | ||||||||||||||||||||||||||
Real assets | 73 | 0 | 0 | 0 | ||||||||||||||||||||||
Private equity | 400 | 0 | 0 | 0 | ||||||||||||||||||||||
Private credit | 29 | 0 | 0 | 0 | ||||||||||||||||||||||
Total limited partnerships | 502 | 0 | 0 | 0 | ||||||||||||||||||||||
Total return seeking assets | 278,169 | 277,667 | 0 | 0 | ||||||||||||||||||||||
Liability hedging assets: | ||||||||||||||||||||||||||
Fixed income | 99,490 | 99,490 | 0 | 0 | ||||||||||||||||||||||
U.S. Treasury overlay | 52,756 | 52,756 | 0 | 0 | ||||||||||||||||||||||
Total liability hedging assets | 152,246 | 152,246 | 0 | 0 | ||||||||||||||||||||||
Cash and short-term investments: | ||||||||||||||||||||||||||
Short-term investments | 3,273 | 3,273 | 0 | 0 | ||||||||||||||||||||||
Deposit administration contracts | 2,073 | 0 | 2,073 | 0 | ||||||||||||||||||||||
Total cash and short-term investments | 5,346 | 3,273 | 2,073 | 0 | ||||||||||||||||||||||
Total invested assets | $ | 435,761 | 433,186 | 2,073 | 0 |
December 31, 2017 | Fair Value Measurements at 12/31/17 Using | |||||||||||||||||||||||||||||||||||||||||
December 31, 2019 | December 31, 2019 | Fair Value Measurements at 12/31/19 Using | ||||||||||||||||||||||||||||||||||||||||
($ in thousands) | Assets Measured at Fair Value At 12/31/17 | Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ($ in thousands) | Assets Measured at Fair Value At 12/31/19 | Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||
Description | Description | |||||||||||||||||||||||||||||||||||||||||
Return seeking assets: | Return seeking assets: | |||||||||||||||||||||||||||||||||||||||||
Long-duration fixed income: | ||||||||||||||||||||||||||||||||||||||||||
Global asset allocation fund | $ | 41,309 | 41,309 | — | — | |||||||||||||||||||||||||||||||||||||
Global equity: | ||||||||||||||||||||||||||||||||||||||||||
Non-U.S. equity | 67,989 | 67,989 | — | — | ||||||||||||||||||||||||||||||||||||||
U.S. equity | 66,353 | 66,353 | — | — | ||||||||||||||||||||||||||||||||||||||
Total global equity | 134,342 | 134,342 | — | — | ||||||||||||||||||||||||||||||||||||||
Private assets: | ||||||||||||||||||||||||||||||||||||||||||
Equities: | Equities: | |||||||||||||||||||||||||||||||||||||||||
Global equity | Global equity | $ | 113,212 | $ | 113,212 | 0 | 0 | |||||||||||||||||||||||||||||||||||
Diversified credit | Diversified credit | 59,009 | 59,009 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
Real assets | Real assets | 57,414 | 57,414 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
Total equities | Total equities | 229,635 | 229,635 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
Limited partnerships (at net asset value)1: | Limited partnerships (at net asset value)1: | |||||||||||||||||||||||||||||||||||||||||
Real assets | 16,305 | — | — | — | Real assets | 228 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
Private equity | 1,096 | — | — | — | Private equity | 583 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
Private credit | 460 | — | — | — | Private credit | 43 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
Hedge fund | 15,192 | — | — | — | ||||||||||||||||||||||||||||||||||||||
Total limited partnerships | 33,053 | — | — | — | Total limited partnerships | 854 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
Other private assets | 980 | — | — | 980 | ||||||||||||||||||||||||||||||||||||||
Total private assets | 34,033 | — | — | 980 | ||||||||||||||||||||||||||||||||||||||
Total return seeking assets | 209,684 | 175,651 | — | 980 | Total return seeking assets | 230,489 | 229,635 | 0 | 0 | |||||||||||||||||||||||||||||||||
Liability hedging assets: | Liability hedging assets: | |||||||||||||||||||||||||||||||||||||||||
Long-duration fixed income: | ||||||||||||||||||||||||||||||||||||||||||
Extended duration fixed income | 146,837 | 146,837 | — | — | ||||||||||||||||||||||||||||||||||||||
Fixed income | Fixed income | 114,395 | 114,395 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
U.S. Treasury overlay | U.S. Treasury overlay | 30,997 | 30,997 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
Total liability hedging assets | Total liability hedging assets | 145,392 | 145,392 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
Cash and short-term investments: | Cash and short-term investments: | |||||||||||||||||||||||||||||||||||||||||
Short-term investments | 4,939 | 4,939 | — | — | Short-term investments | 8,824 | 8,824 | 0 | 0 | |||||||||||||||||||||||||||||||||
Deposit administration contracts | 1,615 | — | 1,615 | — | Deposit administration contracts | 2,215 | 0 | 2,215 | 0 | |||||||||||||||||||||||||||||||||
Total cash and short-term investments | 6,554 | 4,939 | 1,615 | — | Total cash and short-term investments | 11,039 | 8,824 | 2,215 | 0 | |||||||||||||||||||||||||||||||||
Total liability hedging assets | 153,391 | 151,776 | 1,615 | — | ||||||||||||||||||||||||||||||||||||||
Total invested assets | $ | 363,075 | $ | 327,427 | $ | 1,615 | $ | 980 | Total invested assets | $ | 386,920 | 383,851 | 2,215 | 0 |
December 31, 2016 | Fair Value Measurements at 12/31/16 Using | |||||||||||||||
($ in thousands) | Assets Measured at Fair Value At 12/31/16 | Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Description | ||||||||||||||||
Return seeking assets: | ||||||||||||||||
Long-duration fixed income: | ||||||||||||||||
Global asset allocation fund | $ | 37,878 | 37,878 | — | — | |||||||||||
Global equity: | ||||||||||||||||
Non-U.S. equity | 48,836 | 48,836 | — | — | ||||||||||||
U.S. equity | 55,073 | 55,073 | — | — | ||||||||||||
Total global equity | 103,909 | 103,909 | — | — | ||||||||||||
Private assets (limited partnerships, at net asset value)1: | ||||||||||||||||
Real assets | 15,466 | — | — | — | ||||||||||||
Private equity | 1,615 | — | — | — | ||||||||||||
Private credit | 1,108 | — | — | — | ||||||||||||
Total private assets | 18,189 | — | — | — | ||||||||||||
Total return seeking assets | 159,976 | 141,787 | — | — | ||||||||||||
Liability hedging assets: | ||||||||||||||||
Long-duration fixed income: | ||||||||||||||||
Extended duration fixed income | 131,457 | 131,457 | — | — | ||||||||||||
Cash and short-term investments: | ||||||||||||||||
Short-term investments | 23,722 | 23,722 | — | — | ||||||||||||
Deposit administration contracts | 1,832 | — | 1,832 | — | ||||||||||||
Total cash and short-term investments | 25,554 | 23,722 | 1,832 | — | ||||||||||||
Total liability hedging assets | 157,011 | 155,179 | 1,832 | — | ||||||||||||
Total invested assets | $ | 316,987 | $ | 296,966 | $ | 1,832 | $ | — |
($ in thousands) | Pension Plan | |||||||
Benefits Expected to be Paid in Future | ||||||||
Fiscal Years: | ||||||||
2021 | $ | 14,658 | ||||||
2022 | 15,213 | |||||||
2023 | 16,408 | |||||||
2024 | 17,439 | |||||||
2025 | 18,440 | |||||||
2026-2030 | 105,076 |
($ in thousands) | Pension Plan | |||
Benefits Expected to be Paid in Future | ||||
Fiscal Years: | ||||
2018 | $ | 12,913 | ||
2019 | 12,936 | |||
2020 | 13,987 | |||
2021 | 15,093 | |||
2022 | 16,128 | |||
2023-2027 | 94,542 |
Plan | Approvals | ||||
Stock Plan | Approved effective as of May 1, 2014 by stockholders on April 23, 2014. Most recently amended and restated plan was approved effective May 2, 2018 by stockholders on May 2, 2018. | ||||
Cash Plan | Approved effective April 1, 2005 by stockholders on April 27, 2005. Most recently amended and restated plan was approved effective May 1, 2014 by stockholders on April 23, 2014. | ||||
ESPP | Approved by stockholders on April 29, 2009 effective July 1, 2009. | ||||
Agent Plan | Approved by stockholders on April 26, 2006. Most recently amended, |
Plan | Types of Share-Based Payments Issued | ||||
Stock Plan | Qualified and nonqualified stock options, stock appreciation rights ("SARs"), restricted stock, restricted stock units ("RSUs"), stock grants, and other awards valued in whole or in part by reference to the Parent's common stock. The maximum exercise period for an option grant under this plan is 10 years from the date of the grant. Dividend equivalent units ("DEUs") are earned during the vesting period on RSU grants. The DEUs are reinvested in the Parent's common stock at fair value on each dividend payment date. The requisite service period for grants to employees under this plan is the lesser of: (i) the stated vested date, which is typically three years from issuance; or (ii) the date the employee becomes eligible to retire. | ||||
Cash Plan | Cash incentive units (“CIUs”). The initial dollar value of each CIU will be adjusted to reflect the percentage increase or decrease in the total shareholder return on the Parent's common stock over a specified performance period. In addition, for certain grants, the number of CIUs granted will be increased or decreased to reflect our performance on specified performance indicators | ||||
ESPP | Enables employees to purchase shares of the Parent’s common stock. The purchase price is the lower of: (i) 85% of the closing market price at the time the option is granted; or (ii) 85% of the closing price at the time the option is exercised. Shares are generally issued on June 30 and December 31 of each year. | ||||
Agent Plan | Quarterly offerings to purchase the Parent's common stock at a 10% discount with a |
As of December 31, 2020 | Authorized | Available for Issuance | Awards Outstanding | ||||||||
Stock Plan | 4,750,000 | 2,959,819 | 686,325 | ||||||||
ESPP | 1,500,000 | 257,088 | 0 | ||||||||
Agent Plan | 3,000,000 | 1,659,233 | 0 |
As of December 31, 2017 | Authorized | Available for Issuance | Awards Outstanding | |||
Stock Plan | 3,500,000 | 2,516,871 | 882,490 | |||
ESPP | 1,500,000 | 499,629 | — | |||
Agent Plan | 3,000,000 | 1,817,493 | — |
December 31, 2020 | Types of Share-Based Payments Issued | Reserve Shares | Awards Outstanding1 | ||||||||
Plan | |||||||||||
2005 Omnibus Stock Plan ("2005 Stock Plan") | Qualified and nonqualified stock options, SARs, restricted stock, RSUs, phantom stock, stock bonuses, and other awards in such amounts and with such terms and conditions as it determined, subject to the provisions of the 2005 Stock Plan. The maximum exercise period for an option grant under this plan is 10 years from the date of the grant. DEUs are earned during the vesting period on RSU grants. The DEUs are reinvested in the Parent's common stock at fair value on each dividend payment date. | 1,958,306 | 32,906 | ||||||||
Parent's Stock Compensation Plan for Non-employee Directors ("Directors Stock Compensation Plan") | Directors could elect to receive a portion of their annual compensation in shares of the Parent's common stock. | 44,468 | 44,468 |
December 31, 2017 | Types of Share-Based Payments Issued | Reserve Shares | Awards Outstanding1 | ||
Plan | |||||
2005 Omnibus Stock Plan ("2005 Stock Plan") | Qualified and nonqualified stock options, SARs, restricted stock, RSUs, phantom stock, stock bonuses, and other awards in such amounts and with such terms and conditions as it determined, subject to the provisions of the 2005 Stock Plan. The maximum exercise period for an option grant under this plan is 10 years from the date of the grant. DEUs are earned during the vesting period on RSU grants. The DEUs are reinvested in the Parent's common stock at fair value on each dividend payment date. | 2,202,532 | 277,132 | ||
Parent's Stock Compensation Plan for Non-employee Directors ("Directors Stock Compensation Plan") | Directors could elect to receive a portion of their annual compensation in shares of the Parent's common stock. | 66,506 | 66,506 |
Number of Shares | Weighted Average Grant Date Fair Value | |||||||||||||
Unvested RSU awards at December 31, 2019 | 746,725 | $ | 53.48 | |||||||||||
Granted in 2020 | 247,680 | 62.91 | ||||||||||||
Vested in 2020 | (311,951) | 44.50 | ||||||||||||
Forfeited in 2020 | (14,780) | 60.30 | ||||||||||||
Unvested RSU awards at December 31, 2020 | 667,674 | $ | 61.02 |
Number of Shares | Weighted Average Grant Date Fair Value | ||||||
Unvested RSU awards at December 31, 2016 | 916,640 | $ | 26.20 | ||||
Granted in 2017 | 321,928 | 42.66 | |||||
Vested in 2017 | (360,702 | ) | 22.78 | ||||
Forfeited in 2017 | (12,279 | ) | 32.09 | ||||
Unvested RSU awards at December 31, 2017 | 865,587 | $ | 33.66 |
Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life in Years | Aggregate Intrinsic Value ($ in thousands) | ||||||||||
Outstanding at December 31, 2016 | 355,391 | $ | 16.87 | ||||||||||
Granted in 2017 | — | — | |||||||||||
Exercised in 2017 | (120,496 | ) | 19.39 | ||||||||||
Forfeited or expired in 2017 | (5,031 | ) | 24.54 | ||||||||||
Outstanding at December 31, 2017 | 229,864 | $ | 15.38 | 1.50 | $ | 9,958 | |||||||
Exercisable at December 31, 2017 | 229,864 | $ | 15.38 | 1.50 | $ | 9,958 |
Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life in Years | Aggregate Intrinsic Value ($ in thousands) | |||||||||||||||||||||||
Outstanding at December 31, 2019 | 26,823 | $ | 16.71 | |||||||||||||||||||||||
Granted in 2020 | 0 | 0 | ||||||||||||||||||||||||
Exercised in 2020 | 26,823 | 16.71 | ||||||||||||||||||||||||
Forfeited or expired in 2020 | 0 | 0 | ||||||||||||||||||||||||
Outstanding at December 31, 2020 | 0 | $ | 0 | 0.00 | $ | 0 | ||||||||||||||||||||
Exercisable at December 31, 2020 | 0 | $ | 0 | 0.00 | $ | 0 |
2020 | 2019 | 2018 | |||||||||
ESPP Issuances | 99,141 | 72,952 | 70,448 | ||||||||
Agent Plan Issuances | 69,238 | 47,888 | 41,134 |
2017 | 2016 | 2015 | ||||
ESPP Issuances | 75,093 | 88,432 | 100,944 | |||
Agent Plan Issuances | 49,794 | 69,867 | 82,142 |
ESPP | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Risk-free interest rate | 0.76 | % | 2.33 | 1.88 | ||||||||||||||||
Expected term | 6 months | 6 months | 6 months | |||||||||||||||||
Dividend yield | 1.6 | % | 1.2 | 1.3 | ||||||||||||||||
Expected volatility | 37 | % | 26 | 18 |
ESPP | |||||||
2017 | 2016 | 2015 | |||||
Risk-free interest rate | 1.07 | % | 0.47 | 0.10 | |||
Expected term | 6 months | 6 months | 6 months | ||||
Dividend yield | 1.3 | % | 1.7 | 2.0 | |||
Expected volatility | 24 | % | 31 | 20 |
2020 | 2019 | 2018 | ||||||||||||||||||
RSUs | $ | 62.91 | 63.60 | 55.96 | ||||||||||||||||
ESPP: | ||||||||||||||||||||
Six month option | 4.82 | 4.32 | 2.67 | |||||||||||||||||
Discount of grant date market value | 8.61 | 9.99 | 8.50 | |||||||||||||||||
Total ESPP | 13.43 | 14.31 | 11.17 | |||||||||||||||||
Agent Plan: | ||||||||||||||||||||
Discount of grant date market value | 5.73 | 7.00 | 5.99 |
2017 | 2016 | 2015 | ||||||||
RSUs | $ | 42.66 | 32.53 | 25.22 | ||||||
ESPP: | ||||||||||
Six month option | 2.73 | 2.63 | 1.26 | |||||||
Discount of grant date market value | 7.06 | 5.23 | 4.16 | |||||||
Total ESPP | 9.79 | 7.86 | 5.42 | |||||||
Agent Plan: | ||||||||||
Discount of grant date market value | 5.04 | 3.79 | 2.94 |
($ in millions) | 2020 | 2019 | 2018 | |||||||||||||||||
Share-based compensation expense, pre-tax | $ | 19.8 | 24.5 | 19.3 | ||||||||||||||||
Income tax benefit, including the benefit related to stock grants that vested during the year | (5.7) | (8.2) | (7.0) | |||||||||||||||||
Share-based compensation expense, after-tax | $ | 14.1 | 16.3 | 12.3 |
($ in millions) | 2017 | 2016 | 2015 | ||||||
Share-based compensation expense, pre-tax | $ | 31.2 | 30.3 | 23.8 | |||||
Income tax benefit, including the benefit related to stock grants that have vested during the year | (15.0 | ) | (10.3 | ) | (8.0 | ) | |||
Share-based compensation expense, after-tax | $ | 16.2 | 20.0 | 15.8 |
($ in thousands) | 2020 | 2019 | ||||||||||||
Operating lease cost, included in Other insurance expenses on the Consolidated Statements of Income | $ | 9,498 | 8,808 | |||||||||||
Finance lease cost: | ||||||||||||||
Amortization of assets, included in Other insurance expenses on the Consolidated Statements of Income | 550 | 984 | ||||||||||||
Interest on lease liabilities, included in Interest expense on the Consolidated Statements of Income | 15 | 16 | ||||||||||||
Total finance lease cost | 565 | 1,000 | ||||||||||||
Variable lease cost, included in Other insurance expenses on the Consolidated Statements of Income | 758 | 48 | ||||||||||||
Short-term lease cost, included in Other insurance expenses on the Consolidated Statements of Income | $ | 2,011 | 2,165 |
December 31, 2020 | December 31, 2019 | |||||||||||||
Weighted-average remaining lease term | ||||||||||||||
Operating leases | 8 | 6 | years | |||||||||||
Finance leases | 2 | 2 | ||||||||||||
Weighted-average discount rate | ||||||||||||||
Operating leases | 2.3 | 3.4 | % | |||||||||||
Finance leases | 1.6 | 2.1 |
($ in thousands) | December 31, 2020 | December 31, 2019 | |||||||||
Operating leases | |||||||||||
Other assets | $ | 40,215 | 26,535 | ||||||||
Other liabilities | 41,674 | 27,506 | |||||||||
Finance leases | |||||||||||
Property and equipment - at cost, net of accumulated depreciation and amortization | 502 | 731 | |||||||||
Long-term debt | $ | 508 | 737 |
($ in thousands) | Finance Leases | Operating Leases | Total | |||||||||||||||||
Year ended December 31, | ||||||||||||||||||||
2021 | $ | 330 | 8,372 | 8,702 | ||||||||||||||||
2022 | 127 | 6,788 | 6,915 | |||||||||||||||||
2023 | 56 | 5,411 | 5,467 | |||||||||||||||||
2024 | 0 | 4,690 | 4,690 | |||||||||||||||||
2025 | 0 | 3,572 | 3,572 | |||||||||||||||||
Thereafter | 0 | 16,234 | 16,234 | |||||||||||||||||
Total lease payments | 513 | 45,067 | 45,580 | |||||||||||||||||
Less: imputed interest | 5 | 3,393 | 3,398 | |||||||||||||||||
Less: leases that have not yet commenced | 0 | 0 | 0 | |||||||||||||||||
Total lease liabilities | $ | 508 | 41,674 | 42,182 |
($ in thousands) | Finance Leases | Operating Leases | Total | |||||||||||||||||
Year ended December 31, | ||||||||||||||||||||
2020 | $ | 451 | 8,244 | 8,695 | ||||||||||||||||
2021 | 248 | 6,168 | 6,416 | |||||||||||||||||
2022 | 54 | 4,590 | 4,644 | |||||||||||||||||
2023 | 0 | 3,329 | 3,329 | |||||||||||||||||
2024 | 0 | 2,920 | 2,920 | |||||||||||||||||
Thereafter | 0 | 8,638 | 8,638 | |||||||||||||||||
Total lease payments | 753 | 33,889 | 34,642 | |||||||||||||||||
Less: imputed interest | 16 | 2,995 | 3,011 | |||||||||||||||||
Less: leases that have not yet commenced | 0 | 3,388 | 3,388 | |||||||||||||||||
Total lease liabilities | $ | 737 | 27,506 | 28,243 |
($ in millions) | Capital Leases | Operating Leases | Total | |||||
2018 | $ | 2.3 | 10.0 | 12.3 | ||||
2019 | 0.1 | 7.5 | 7.6 | |||||
2020 | — | 6.0 | 6.0 | |||||
2021 | — | 3.7 | 3.7 | |||||
2022 | — | 2.1 | 2.1 | |||||
After 2022 | — | 2.6 | 2.6 | |||||
Total minimum payment required | $ | 2.4 | 31.9 | 34.3 |
($ in millions) | Amount of Obligation | Year of Expiration of Obligation | ||||||||||||
Alternative and other investments | $ | 215.7 | 2036 | |||||||||||
Non-publicly traded collateralized loan obligations in our fixed income securities portfolio | 37.7 | 2030 | ||||||||||||
Non-publicly traded common stock within our equity portfolio | 2.0 | 2021 | ||||||||||||
Commercial mortgage loans | 4.4 | Less than 1 year | ||||||||||||
Total | $ | 259.8 |
State of Domicile | Unassigned Surplus | Statutory Surplus | Statutory Net Income | |||||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||||||||||
SICA | New Jersey | $ | 574.2 | 525.9 | 739.4 | 680.1 | 81.8 | 113.9 | 78.0 | |||||||||||||||||||||||||||||||||||||||||
Selective Way Insurance Company ("SWIC") | New Jersey | 374.0 | 339.2 | 430.0 | 388.2 | 54.0 | 59.2 | 47.5 | ||||||||||||||||||||||||||||||||||||||||||
SICSC | Indiana | 148.6 | 132.6 | 182.8 | 163.8 | 20.8 | 23.9 | 16.5 | ||||||||||||||||||||||||||||||||||||||||||
SICSE | Indiana | 115.9 | 103.1 | 143.5 | 128.7 | 16.8 | 18.5 | 12.9 | ||||||||||||||||||||||||||||||||||||||||||
SICNY | New York | 111.7 | 99.4 | 139.4 | 127.1 | 15.3 | 17.0 | 12.0 | ||||||||||||||||||||||||||||||||||||||||||
Selective Insurance Company of New England ("SICNE") | New Jersey | 30.0 | 25.3 | 61.2 | 55.4 | 6.8 | 7.8 | 5.6 | ||||||||||||||||||||||||||||||||||||||||||
Selective Auto Insurance Company of New Jersey ("SAICNJ") | New Jersey | 70.0 | 62.5 | 114.9 | 105.4 | 12.9 | 14.9 | 9.9 | ||||||||||||||||||||||||||||||||||||||||||
MUSIC | New Jersey | 34.4 | 27.1 | 103.9 | 95.6 | 11.4 | 13.2 | 9.4 | ||||||||||||||||||||||||||||||||||||||||||
Selective Casualty Insurance Company ("SCIC") | New Jersey | 71.1 | 58.2 | 147.5 | 132.7 | 16.2 | 16.8 | 13.3 | ||||||||||||||||||||||||||||||||||||||||||
Selective Fire and Casualty Insurance Company ("SFCIC") | New Jersey | 29.2 | 23.5 | 62.1 | 55.4 | 6.4 | 7.5 | 5.5 | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,559.1 | 1,396.8 | 2,124.7 | 1,932.4 | 242.4 | 292.7 | 210.6 |
State of Domicile | Unassigned Surplus | Statutory Surplus | Statutory Net Income | |||||||||||||||||||||
($ in millions) | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2015 | |||||||||||||||||
SICA | New Jersey | $ | 455.5 | 414.4 | 609.7 | 568.6 | 84.6 | 72.2 | 69.6 | |||||||||||||||
Selective Way Insurance Company ("SWIC") | New Jersey | 276.1 | 260.5 | 325.1 | 309.5 | 43.6 | 41.2 | 42.3 | ||||||||||||||||
SICSC | Indiana | 112.9 | 110.6 | 144.1 | 141.9 | 17.9 | 17.4 | 15.9 | ||||||||||||||||
SICSE | Indiana | 86.2 | 83.5 | 111.8 | 109.1 | 14.7 | 13.4 | 12.1 | ||||||||||||||||
SICNY | New York | 78.8 | 74.1 | 106.5 | 101.8 | 13.4 | 12.9 | 12.7 | ||||||||||||||||
Selective Insurance Company of New England ("SICNE") | New Jersey | 16.1 | 13.6 | 46.3 | 43.7 | 6.3 | 5.9 | 5.5 | ||||||||||||||||
Selective Auto Insurance Company of New Jersey ("SAICNJ") | New Jersey | 42.1 | 36.9 | 84.9 | 79.8 | 11.4 | 11.5 | 10.8 | ||||||||||||||||
MUSIC | New Jersey | 21.4 | 16.7 | 89.9 | 85.2 | 10.3 | 9.7 | 9.5 | ||||||||||||||||
Selective Casualty Insurance Company ("SCIC") | New Jersey | 34.5 | 26.6 | 109.0 | 101.0 | 13.4 | 12.6 | 12.1 | ||||||||||||||||
Selective Fire and Casualty Insurance Company ("SFCIC") | New Jersey | 13.7 | 11.3 | 45.6 | 43.2 | 5.6 | 5.5 | 5.3 | ||||||||||||||||
Total | $ | 1,137.3 | 1,048.2 | 1,672.9 | 1,583.8 | 221.2 | 202.3 | 195.8 |
Dividends | Twelve Months ended December 31, 2017 | |||||
($ in millions) | State of Domicile | Ordinary Dividends Paid | ||||
SICA | New Jersey | $ | 28.0 | |||
SWIC | New Jersey | 19.0 | ||||
SICSC | Indiana | 10.0 | ||||
SICSE | Indiana | 7.5 | ||||
SICNY | New York | 4.5 | ||||
SICNE | New Jersey | 2.0 | ||||
SAICNJ | New Jersey | 2.5 | ||||
MUSIC | New Jersey | 2.1 | ||||
SCIC | New Jersey | 3.0 | ||||
SFCIC | New Jersey | 1.5 | ||||
Total | $ | 80.1 |
Dividends | Twelve Months ended December 31, 2020 | 2021 | ||||||||||||||||||||||||||||||
($ in millions) | State of Domicile | Ordinary Dividends Paid | Maximum Ordinary Dividends | |||||||||||||||||||||||||||||
SICA | New Jersey | $ | 46.6 | $ | 81.8 | |||||||||||||||||||||||||||
SWIC | New Jersey | 22.5 | 54.1 | |||||||||||||||||||||||||||||
SICSC | Indiana | 7.5 | 20.8 | |||||||||||||||||||||||||||||
SICSE | Indiana | 5.3 | 16.8 | |||||||||||||||||||||||||||||
SICNY | New York | 3.0 | 13.9 | |||||||||||||||||||||||||||||
SICNE | New Jersey | 2.2 | 6.7 | |||||||||||||||||||||||||||||
SAICNJ | New Jersey | 5.9 | 12.9 | |||||||||||||||||||||||||||||
MUSIC | New Jersey | 6.0 | 11.4 | |||||||||||||||||||||||||||||
SCIC | New Jersey | 5.2 | 16.2 | |||||||||||||||||||||||||||||
SFCIC | New Jersey | 0.8 | 6.4 | |||||||||||||||||||||||||||||
Total | $ | 105.0 | $ | 241.0 |
2018 | ||||||
($ in millions) | State of Domicile | Maximum Ordinary Dividends | ||||
SICA | New Jersey | $ | 77.6 | |||
SWIC | New Jersey | 43.3 | ||||
SICSC | Indiana | 17.9 | ||||
SICSE | Indiana | 14.7 | ||||
SICNY | New York | 10.7 | ||||
SICNE | New Jersey | 6.2 | ||||
SAICNJ | New Jersey | 11.3 | ||||
MUSIC | New Jersey | 10.3 | ||||
SCIC | New Jersey | 13.4 | ||||
SFCIC | New Jersey | 5.6 | ||||
Total | $ | 211.0 |
(unaudited, $ in thousands, | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||||||||||
except per share data) | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 1 | 2016 | |||||||||||||||||
Net premiums earned | $ | 560,854 | 522,458 | 568,030 | 531,932 | 572,055 | 542,429 | 590,088 | 552,753 | ||||||||||||||||
Net investment income earned | 37,419 | 30,769 | 41,430 | 31,182 | 40,446 | 33,375 | 42,587 | 35,428 | |||||||||||||||||
Net realized (losses) gains | (1,045 | ) | (2,704 | ) | 1,734 | 1,765 | 6,798 | 3,688 | (1,128 | ) | (7,686 | ) | |||||||||||||
Other income | 3,241 | 951 | 3,291 | 3,868 | 1,994 | 2,199 | 2,190 | 1,863 | |||||||||||||||||
Total revenues | 600,469 | 551,474 | 614,485 | 568,747 | 621,293 | 581,691 | 633,737 | 582,358 | |||||||||||||||||
Income before federal income taxes | 67,574 | 51,875 | 58,929 | 62,311 | 67,315 | 55,443 | 68,150 | 50,326 | |||||||||||||||||
Net income | 50,440 | 37,032 | 41,426 | 43,601 | 46,718 | 38,502 | 30,242 | 39,360 | |||||||||||||||||
Net income per share: | |||||||||||||||||||||||||
Basic | 0.87 | 0.64 | 0.71 | 0.75 | 0.80 | 0.66 | 0.52 | 0.68 | |||||||||||||||||
Diluted | 0.85 | 0.63 | 0.70 | 0.74 | 0.79 | 0.66 | 0.51 | 0.67 |
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||||||||||||||||||||||||||||||||||||
(unaudited, $ in thousands, except per share data) | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||
Net premiums earned | $ | 651,703 | 632,573 | 630,671 | 642,619 | 694,541 | 653,620 | 704,899 | 668,359 | |||||||||||||||||||||||||||||||||||||||||
Net investment income earned | 55,967 | 50,618 | 34,444 | 58,505 | 68,185 | 55,826 | 68,511 | 57,594 | ||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized (losses) gains | (44,666) | 13,451 | 12,649 | 4,027 | 7,721 | (2,183) | 20,079 | (873) | ||||||||||||||||||||||||||||||||||||||||||
Other income | 1,825 | 2,320 | 4,683 | 3,053 | 6,119 | 3,162 | 4,943 | 3,820 | ||||||||||||||||||||||||||||||||||||||||||
Total revenues | 664,829 | 698,962 | 682,447 | 708,204 | 776,566 | 710,425 | 798,432 | 728,900 | ||||||||||||||||||||||||||||||||||||||||||
Income before federal income taxes | 15,997 | 73,694 | 42,693 | 90,225 | 85,257 | 71,178 | 159,041 | 101,293 | ||||||||||||||||||||||||||||||||||||||||||
Net income | 15,236 | 61,348 | 34,183 | 72,266 | 69,875 | 56,150 | 127,061 | 81,859 | ||||||||||||||||||||||||||||||||||||||||||
Net income available to common stockholders | 15,236 | 61,348 | 34,183 | 72,266 | 69,875 | 56,150 | 127,061 | 81,859 | ||||||||||||||||||||||||||||||||||||||||||
Net income available to common stockholders per common share: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | 0.26 | 1.04 | 0.57 | 1.22 | 1.17 | 0.94 | 2.12 | 1.38 | ||||||||||||||||||||||||||||||||||||||||||
Diluted | 0.25 | 1.02 | 0.57 | 1.21 | 1.16 | 0.93 | 2.10 | 1.36 | ||||||||||||||||||||||||||||||||||||||||||
Form 10-K | |||||
Page | |||||
Consolidated Balance Sheets as of December 31, | |||||
Consolidated Statements of Income for the Years Ended December 31, | |||||
Consolidated Statements of Comprehensive Income for the Years Ended December 31, | |||||
Consolidated Statements of Stockholders' Equity for the Years Ended December 31, | |||||
Consolidated Statements of Cash Flows for the Years Ended December 31, | |||||
Notes to Consolidated Financial Statements, December 31, |
Form 10-K | ||||||||
Page | ||||||||
Schedule I | Summary of Investments – Other than Investments in Related Parties at December 31, | |||||||
Schedule II | Condensed Financial Information of Registrant at December 31, | |||||||
Schedule III | Supplementary Insurance Information for the Years Ended December 31, | |||||||
Schedule IV | Reinsurance for the Years Ended December 31, | |||||||
Schedule V | Allowance for |
Types of investment | ||||||||||||||||||||
($ in thousands) | Amortized Cost or Cost | Fair Value | Carrying Amount | |||||||||||||||||
Fixed income securities: | ||||||||||||||||||||
Held-to-maturity: | ||||||||||||||||||||
Obligations of states and political subdivisions | $ | 4,505 | 4,795 | 4,507 | ||||||||||||||||
Public utilities | 2,436 | 2,579 | 2,464 | |||||||||||||||||
All other corporate securities | 9,898 | 10,627 | 9,853 | |||||||||||||||||
Total fixed income securities, held-to-maturity | 16,839 | 18,001 | 16,824 | |||||||||||||||||
Available-for-sale: | ||||||||||||||||||||
U.S. government and government agencies | 110,038 | 116,140 | 116,140 | |||||||||||||||||
Foreign government | 16,801 | 18,366 | 18,366 | |||||||||||||||||
Obligations of states and political subdivisions | 1,159,588 | 1,247,137 | 1,247,137 | |||||||||||||||||
Public utilities | 68,269 | 73,821 | 73,821 | |||||||||||||||||
All other corporate securities | 2,083,934 | 2,254,231 | 2,254,231 | |||||||||||||||||
Collateralized loan obligation securities and other asset-backed securities | 1,014,820 | 1,026,551 | 1,026,551 | |||||||||||||||||
Residential mortgage-backed securities | 999,485 | 1,051,788 | 1,051,788 | |||||||||||||||||
Commercial mortgage-backed securities | 620,582 | 667,894 | 667,894 | |||||||||||||||||
Total fixed income securities, available-for-sale | 6,073,517 | 6,455,928 | 6,455,928 | |||||||||||||||||
Equity securities: | ||||||||||||||||||||
Common stock: | ||||||||||||||||||||
Banks, trusts and insurance companies | 18,366 | 17,474 | 17,474 | |||||||||||||||||
Industrial, miscellaneous and all other | 281,619 | 291,158 | 291,158 | |||||||||||||||||
Nonredeemable preferred stock | 1,566 | 1,735 | 1,735 | |||||||||||||||||
Total equity securities | 301,551 | 310,367 | 310,367 | |||||||||||||||||
Commercial mortgage loans | 46,306 | 46,306 | ||||||||||||||||||
Short-term investments | 409,865 | 409,852 | ||||||||||||||||||
Other investments | 266,322 | 266,322 | ||||||||||||||||||
Total investments | $ | 7,114,400 | 7,505,599 |
Types of investment | ||||||||||
($ in thousands) | Amortized Cost or Cost | Fair Value | Carrying Amount | |||||||
Fixed income securities: | ||||||||||
Held-to-maturity: | ||||||||||
Obligations of states and political subdivisions | $ | 25,154 | 26,261 | 25,238 | ||||||
Public utilities | 7,466 | 7,956 | 7,443 | |||||||
All other corporate securities | 9,530 | 9,883 | 9,448 | |||||||
Total fixed income securities, held-to-maturity | 42,150 | 44,100 | 42,129 | |||||||
Available-for-sale: | ||||||||||
U.S. government and government agencies | 49,326 | 49,740 | 49,740 | |||||||
Foreign government | 18,040 | 18,555 | 18,555 | |||||||
Obligations of states and political subdivisions | 1,539,307 | 1,582,970 | 1,582,970 | |||||||
Public utilities | 50,071 | 51,035 | 51,035 | |||||||
All other corporate securities | 1,538,268 | 1,566,433 | 1,566,433 | |||||||
Collateralized loan obligation securities and other asset-backed securities | 789,152 | 795,458 | 795,458 | |||||||
Commercial mortgage-backed securities | 382,727 | 383,449 | 383,449 | |||||||
Residential mortgage-backed securities | 709,825 | 714,882 | 714,882 | |||||||
Total fixed income securities, available-for-sale | 5,076,716 | 5,162,522 | 5,162,522 | |||||||
Equity securities: | ||||||||||
Common stock: | ||||||||||
Public utilities | 5,957 | 6,156 | 6,156 | |||||||
Banks, trusts and insurance companies | 34,301 | 40,510 | 40,510 | |||||||
Industrial, miscellaneous and all other | 89,438 | 121,091 | 121,091 | |||||||
Total common stock, available-for-sale | 129,696 | 167,757 | 167,757 | |||||||
Preferred stock: | ||||||||||
Banks, trusts and insurance companies | 14,115 | 14,948 | 14,948 | |||||||
Total preferred stock, available-for-sale | 14,115 | 14,948 | 14,948 | |||||||
Total equity securities, available-for-sale | 143,811 | 182,705 | 182,705 | |||||||
Short-term investments | 165,555 | 165,555 | 165,555 | |||||||
Other investments | 132,268 | 132,268 | ||||||||
Total investments | $ | 5,560,500 | 5,685,179 |
December 31, | December 31, | ||||||||||||||||||||
($ in thousands, except share amounts) | 2017 | 2016 | ($ in thousands, except share amounts) | 2020 | 2019 | ||||||||||||||||
Assets: | Assets: | ||||||||||||||||||||
Fixed income securities, available-for-sale – at fair value (amortized cost: $89,799 – 2017; $73,471 – 2016) | $ | 89,872 | 73,509 | ||||||||||||||||||
Fixed income securities, available-for-sale - at fair value (allowance for credit losses: $22 – 2020; amortized cost $272,256 – 2020; $233,753 – 2019 | Fixed income securities, available-for-sale - at fair value (allowance for credit losses: $22 – 2020; amortized cost $272,256 – 2020; $233,753 – 2019 | $ | 290,428 | 241,526 | |||||||||||||||||
Equity securities | Equity securities | 159,524 | 0 | ||||||||||||||||||
Short-term investments | 24,080 | 17,777 | Short-term investments | 36,425 | 36,219 | ||||||||||||||||
Other investments | Other investments | 3,392 | 0 | ||||||||||||||||||
Cash | 534 | 458 | Cash | 394 | 300 | ||||||||||||||||
Investment in subsidiaries | 2,013,304 | 1,845,410 | Investment in subsidiaries | 2,754,012 | 2,416,209 | ||||||||||||||||
Current federal income tax | 22,266 | 19,766 | Current federal income tax | 11,040 | 16,116 | ||||||||||||||||
Deferred federal income tax | 13,239 | 19,562 | Deferred federal income tax | 2,218 | 4,875 | ||||||||||||||||
Other assets | 871 | 840 | Other assets | 1,959 | 1,692 | ||||||||||||||||
Total assets | $ | 2,164,166 | 1,977,322 | Total assets | $ | 3,259,392 | 2,716,937 | ||||||||||||||
Liabilities: | Liabilities: | ||||||||||||||||||||
Long-term debt | $ | 329,116 | 328,667 | Long-term debt | $ | 440,235 | 439,860 | ||||||||||||||
Intercompany notes payable | 78,443 | 79,324 | Intercompany notes payable | 59,611 | 61,163 | ||||||||||||||||
Accrued long-term stock compensation | 37,017 | 32,029 | Accrued long-term stock compensation | 8,238 | 8,604 | ||||||||||||||||
Other liabilities | 6,633 | 5,932 | Other liabilities | 12,419 | 12,374 | ||||||||||||||||
Total liabilities | $ | 451,209 | 445,952 | Total liabilities | $ | 520,503 | 522,001 | ||||||||||||||
Stockholders’ Equity: | Stockholders’ Equity: | ||||||||||||||||||||
Preferred stock at $0 par value per share: | |||||||||||||||||||||
Authorized shares 5,000,000; no shares issued or outstanding | $ | — | — | ||||||||||||||||||
Preferred stock of $0 par value per share: | Preferred stock of $0 par value per share: | ||||||||||||||||||||
Authorized shares: 5,000,000; Issued shares: 8,000 with $25,000 liquidation preference per share – 2020; 0 shares issued or outstanding – 2019 | Authorized shares: 5,000,000; Issued shares: 8,000 with $25,000 liquidation preference per share – 2020; 0 shares issued or outstanding – 2019 | $ | 200,000 | 0 | |||||||||||||||||
Common stock of $2 par value per share: | Common stock of $2 par value per share: | ||||||||||||||||||||
Authorized shares: 360,000,000 | Authorized shares: 360,000,000 | ||||||||||||||||||||
Issued: 102,284,564 – 2017; 101,620,436 – 2016 | 204,569 | 203,241 | |||||||||||||||||||
Issued: 104,032,912 – 2020; 103,484,159 – 2019 | Issued: 104,032,912 – 2020; 103,484,159 – 2019 | 208,066 | 206,968 | ||||||||||||||||||
Additional paid-in capital | 367,717 | 347,295 | Additional paid-in capital | 438,985 | 418,521 | ||||||||||||||||
Retained earnings | 1,698,613 | 1,568,881 | Retained earnings | 2,271,537 | 2,080,529 | ||||||||||||||||
Accumulated other comprehensive income (loss) | 20,170 | (15,950 | ) | ||||||||||||||||||
Treasury stock – at cost (shares: 43,789,442 – 2017; 43,653,237 – 2016) | (578,112 | ) | (572,097 | ) | |||||||||||||||||
Accumulated other comprehensive income | Accumulated other comprehensive income | 220,186 | 81,750 | ||||||||||||||||||
Treasury stock – at cost (shares: 44,127,109 – 2020; 44,023,006 – 2019) | Treasury stock – at cost (shares: 44,127,109 – 2020; 44,023,006 – 2019) | (599,885) | (592,832) | ||||||||||||||||||
Total stockholders’ equity | 1,712,957 | 1,531,370 | Total stockholders’ equity | 2,738,889 | 2,194,936 | ||||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,164,166 | 1,977,322 | Total liabilities and stockholders’ equity | $ | 3,259,392 | 2,716,937 |
Year ended December 31, | Year ended December 31, | |||||||||||||||||||||||||||||
($ in thousands) | 2017 | 2016 | 2015 | ($ in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||||||||
Revenues: | Revenues: | |||||||||||||||||||||||||||||
Dividends from subsidiaries | $ | 80,096 | 61,014 | 57,752 | Dividends from subsidiaries | $ | 104,992 | 110,004 | 100,060 | |||||||||||||||||||||
Net investment income earned | 2,044 | 1,259 | 852 | Net investment income earned | 7,579 | 7,301 | 3,425 | |||||||||||||||||||||||
Net realized losses | (15 | ) | (220 | ) | — | |||||||||||||||||||||||||
Net realized and unrealized investment gains (losses) | Net realized and unrealized investment gains (losses) | 1,756 | 207 | (1,567) | ||||||||||||||||||||||||||
Total revenues | 82,125 | 62,053 | 58,604 | Total revenues | 114,327 | 117,512 | 101,918 | |||||||||||||||||||||||
Expenses: | Expenses: | |||||||||||||||||||||||||||||
Interest expense | 24,721 | 24,030 | 24,057 | Interest expense | 29,220 | 33,426 | 24,652 | |||||||||||||||||||||||
Other expenses | 36,251 | 35,020 | 28,393 | Other expenses | 25,412 | 30,900 | 25,446 | |||||||||||||||||||||||
Total expenses | 60,972 | 59,050 | 52,450 | Total expenses | 54,632 | 64,326 | 50,098 | |||||||||||||||||||||||
Income before federal income tax | 21,153 | 3,003 | 6,154 | Income before federal income tax | 59,695 | 53,186 | 51,820 | |||||||||||||||||||||||
Federal income tax (benefit) expense: | Federal income tax (benefit) expense: | |||||||||||||||||||||||||||||
Current | (22,187 | ) | (17,924 | ) | (16,609 | ) | Current | (10,987) | (16,080) | (14,173) | ||||||||||||||||||||
Deferred | 6,311 | (2,143 | ) | (1,603 | ) | Deferred | 473 | 3,606 | 3,141 | |||||||||||||||||||||
Total federal income tax benefit | (15,876 | ) | (20,067 | ) | (18,212 | ) | Total federal income tax benefit | (10,514) | (12,474) | (11,032) | ||||||||||||||||||||
Net income before equity in undistributed income of subsidiaries | 37,029 | 23,070 | 24,366 | Net income before equity in undistributed income of subsidiaries | 70,209 | 65,660 | 62,852 | |||||||||||||||||||||||
Equity in undistributed income of subsidiaries, net of tax | 131,797 | 135,425 | 141,495 | Equity in undistributed income of subsidiaries, net of tax | 176,146 | 205,963 | 116,087 | |||||||||||||||||||||||
Net income | $ | 168,826 | 158,495 | 165,861 | Net income | $ | 246,355 | 271,623 | 178,939 | |||||||||||||||||||||
Preferred stock dividends | Preferred stock dividends | 0 | 0 | 0 | ||||||||||||||||||||||||||
Net income available to common stockholders | Net income available to common stockholders | $ | 246,355 | 271,623 | 178,939 |
Year ended December 31, | ||||||||||||||||||||
($ in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||
Operating Activities: | ||||||||||||||||||||
Net income | $ | 246,355 | 271,623 | 178,939 | ||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||
Equity in undistributed income of subsidiaries, net of tax | (176,146) | (205,963) | (116,087) | |||||||||||||||||
Stock-based compensation expense | 16,227 | 19,077 | 14,507 | |||||||||||||||||
Net realized and unrealized investment (gains) losses | (1,756) | (207) | 1,567 | |||||||||||||||||
Undistributed losses of equity method investments | 672 | 0 | 0 | |||||||||||||||||
Amortization – other | 1,080 | 4,614 | 567 | |||||||||||||||||
Changes in assets and liabilities: | ||||||||||||||||||||
Decrease in accrued long-term stock compensation | (366) | (12,970) | (15,443) | |||||||||||||||||
Decrease in net federal income taxes | 5,549 | 1,651 | 11,246 | |||||||||||||||||
Increase in other assets | (317) | (533) | (343) | |||||||||||||||||
(Decrease) increase in other liabilities | (390) | 3,919 | 1,712 | |||||||||||||||||
Net cash provided by operating activities | 90,908 | 81,211 | 76,665 | |||||||||||||||||
Investing Activities: | ||||||||||||||||||||
Purchase of fixed income securities, available-for-sale | (89,726) | (153,482) | (75,046) | |||||||||||||||||
Purchase of equity securities | (157,411) | (10,824) | 0 | |||||||||||||||||
Purchase of short-term investments | (523,961) | (1,116,766) | (207,115) | |||||||||||||||||
Purchase of other investments | (4,065) | 0 | 0 | |||||||||||||||||
Redemption and maturities of fixed income securities, available-for-sale | 26,877 | 10,579 | 6,849 | |||||||||||||||||
Sale of fixed income securities, available-for-sale | 23,276 | 20,189 | 45,099 | |||||||||||||||||
Sale of equity securities | 0 | 10,828 | 0 | |||||||||||||||||
Sale of short-term investments | 523,813 | 1,116,253 | 195,846 | |||||||||||||||||
Capital contribution to subsidiaries | (30,000) | 0 | 0 | |||||||||||||||||
Net cash used in investing activities | (231,197) | (123,223) | (34,367) | |||||||||||||||||
Financing Activities: | ||||||||||||||||||||
Dividends to preferred stockholders | 0 | 0 | 0 | |||||||||||||||||
Dividends to common stockholders | (54,486) | (47,675) | (42,097) | |||||||||||||||||
Acquisition of treasury stock | (7,053) | (8,164) | (6,556) | |||||||||||||||||
Proceeds from borrowings | 50,000 | 290,757 | 0 | |||||||||||||||||
Repayment of borrowings | (50,000) | (185,000) | 0 | |||||||||||||||||
Net proceeds from stock purchase and compensation plans | 8,411 | 8,243 | 7,252 | |||||||||||||||||
Preferred stock issued, net of issuance costs | 195,063 | 0 | 0 | |||||||||||||||||
Principal payment on borrowings from subsidiaries | (1,552) | (16,354) | (926) | |||||||||||||||||
Net cash provided by (used in) financing activities | 140,383 | 41,807 | (42,327) | |||||||||||||||||
Net increase (decrease) in cash | 94 | (205) | (29) | |||||||||||||||||
Cash, beginning of year | 300 | 505 | 534 | |||||||||||||||||
Cash, end of year | $ | 394 | 300 | 505 |
Year ended December 31, | ||||||||||
($ in thousands) | 2017 | 2016 | 2015 | |||||||
Operating Activities: | ||||||||||
Net income | $ | 168,826 | 158,495 | 165,861 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||
Equity in undistributed income of subsidiaries, net of tax | (131,797 | ) | (135,425 | ) | (141,495 | ) | ||||
Stock-based compensation expense | 12,089 | 10,449 | 8,973 | |||||||
Net realized losses | 15 | 220 | — | |||||||
Amortization – other | 678 | 648 | 740 | |||||||
Changes in assets and liabilities: | ||||||||||
Increase in accrued long-term stock compensation | 4,988 | 5,564 | 4,575 | |||||||
Decrease (increase) in net federal income taxes | 3,811 | (3,612 | ) | (3,052 | ) | |||||
Decrease in other assets | (60 | ) | (202 | ) | (12 | ) | ||||
Increase (decrease) in other liabilities | 714 | 80 | (202 | ) | ||||||
Net cash provided by operating activities | 59,264 | 36,217 | 35,388 | |||||||
Investing Activities: | ||||||||||
Purchase of fixed income securities, available-for-sale | (58,832 | ) | (45,789 | ) | (33,717 | ) | ||||
Redemption and maturities of fixed income securities, available-for-sale | 10,465 | 14,983 | 21,578 | |||||||
Sale of fixed income securities, available-for-sale | 31,819 | 18,768 | — | |||||||
Purchase of short-term investments | (185,590 | ) | (119,501 | ) | (106,933 | ) | ||||
Sale of short-term investments | 179,292 | 130,841 | 94,422 | |||||||
Net cash used in investing activities | (22,846 | ) | (698 | ) | (24,650 | ) | ||||
Financing Activities: | ||||||||||
Dividends to stockholders | (37,045 | ) | (33,758 | ) | (31,052 | ) | ||||
Acquisition of treasury stock | (6,015 | ) | (4,992 | ) | (4,182 | ) | ||||
Net proceeds from stock purchase and compensation plans | 7,599 | 7,811 | 10,089 | |||||||
Excess tax benefits from share-based payment arrangements | — | 1,819 | 1,736 | |||||||
Principal payment on borrowings from subsidiaries | (881 | ) | (6,839 | ) | (2,798 | ) | ||||
Net cash used in financing activities | (36,342 | ) | (35,959 | ) | (26,207 | ) | ||||
Net increase (decrease) in cash | 76 | (440 | ) | (15,469 | ) | |||||
Cash, beginning of year | 458 | 898 | 16,367 | |||||||
Cash, end of year | $ | 534 | 458 | 898 |
($ in thousands) | Deferred policy acquisition costs | Reserve for loss and loss expense | Unearned premiums | Net premiums earned | Net investment income1 | Loss and loss expense incurred | Amortization of deferred policy acquisition costs | Other operating expenses2 | Net premiums written | |||||||||||||||||||||||||||||||||||||||||||||||
Standard Commercial Lines Segment | $ | 246,494 | 3,596,340 | 1,196,243 | 2,143,184 | 0 | 1,245,627 | 474,322 | 271,504 | 2,230,636 | ||||||||||||||||||||||||||||||||||||||||||||||
Standard Personal Lines Segment | 13,803 | 228,348 | 308,183 | 299,140 | 0 | 233,260 | 30,694 | 50,694 | 295,166 | |||||||||||||||||||||||||||||||||||||||||||||||
E&S Lines Segment | 28,281 | 435,667 | 113,845 | 239,490 | 0 | 156,936 | 55,255 | 27,173 | 247,290 | |||||||||||||||||||||||||||||||||||||||||||||||
Investments Segment | 0 | 0 | 0 | 0 | 222,890 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 288,578 | 4,260,355 | 1,618,271 | 2,681,814 | 222,890 | 1,635,823 | 560,271 | 349,371 | 2,773,092 |
($ in thousands) | Deferred policy acquisition costs | Reserve for loss and loss expense | Unearned premiums | Net premiums earned | Net investment income1 | Loss and loss expense incurred | Amortization of deferred policy acquisition costs | Other operating expenses2 | Net premiums written | |||||||||||||||||||
Standard Commercial Lines Segment | $ | 193,408 | 3,165,217 | 956,173 | 1,788,499 | — | 1,008,150 | 387,552 | 243,283 | 1,858,735 | ||||||||||||||||||
Standard Personal Lines Segment | 16,952 | 263,166 | 295,435 | 289,701 | — | 189,294 | 32,542 | 56,761 | 296,775 | |||||||||||||||||||
E&S Lines Segment | 24,695 | 342,857 | 98,036 | 212,827 | — | 147,630 | 49,142 | 22,337 | 215,131 | |||||||||||||||||||
Investments Segment | — | — | — | — | 168,241 | — | — | — | — | |||||||||||||||||||
Total | $ | 235,055 | 3,771,240 | 1,349,644 | 2,291,027 | 168,241 | 1,345,074 | 469,236 | 322,381 | 2,370,641 |
Other insurance expenses | $ | 366,941 | |||
Other income | (17,570) | ||||
Total | $ | 349,371 |
Other insurance expenses | $ | 333,097 | |
Other income | (10,716 | ) | |
Total | $ | 322,381 |
($ in thousands) | Deferred policy acquisition costs | Reserve for loss and loss expense | Unearned premiums | Net premiums earned | Net investment income1 | Loss and loss expense incurred | Amortization of deferred policy acquisition costs | Other operating expenses2 | Net premiums written | |||||||||||||||||||||||||||||||||||||||||||||||
Standard Commercial Lines Segment | $ | 226,464 | 3,436,363 | 1,108,009 | 2,049,614 | 0 | 1,187,856 | 445,661 | 270,107 | 2,137,071 | ||||||||||||||||||||||||||||||||||||||||||||||
Standard Personal Lines Segment | 16,848 | 224,200 | 309,125 | 307,739 | 0 | 211,300 | 34,477 | 53,702 | 304,592 | |||||||||||||||||||||||||||||||||||||||||||||||
E&S Lines Segment | 27,874 | 406,600 | 106,033 | 239,818 | 0 | 152,335 | 55,835 | 21,905 | 237,761 | |||||||||||||||||||||||||||||||||||||||||||||||
Investments Segment | 0 | 0 | 0 | 0 | 236,965 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 271,186 | 4,067,163 | 1,523,167 | 2,597,171 | 236,965 | 1,551,491 | 535,973 | 345,714 | 2,679,424 |
($ in thousands) | Deferred policy acquisition costs | Reserve for loss and loss expense | Unearned premiums | Net premiums earned | Net investment income1 | Loss and loss expense incurred | Amortization of deferred policy acquisition costs | Other operating expenses2 | Net premiums written | |||||||||||||||||||
Standard Commercial Lines Segment | $ | 181,193 | 3,098,554 | 884,976 | 1,665,483 | — | 913,506 | 367,813 | 237,729 | 1,745,782 | ||||||||||||||||||
Standard Personal Lines Segment | 16,664 | 286,081 | 282,111 | 280,607 | — | 177,749 | 34,105 | 56,334 | 281,822 | |||||||||||||||||||
E&S Lines Segment | 24,707 | 307,084 | 95,732 | 203,482 | — | 143,542 | 48,410 | 18,451 | 209,684 | |||||||||||||||||||
Investments Segment | — | — | — | — | 125,817 | — | — | — | — | |||||||||||||||||||
Total | $ | 222,564 | 3,691,719 | 1,262,819 | 2,149,572 | 125,817 | 1,234,797 | 450,328 | 312,514 | 2,237,288 |
Other insurance expenses | $ | 358,069 | |||
Other income | (12,355) | ||||
Total | $ | 345,714 |
Other insurance expenses | $ | 321,395 | |
Other income | (8,881 | ) | |
Total | $ | 312,514 |
($ in thousands) | Deferred policy acquisition costs | Reserve for loss and loss expense | Unearned premiums | Net premiums earned | Net investment income1 | Loss and loss expense incurred | Amortization of deferred policy acquisition costs | Other operating expenses2 | Net premiums written | |||||||||||||||||||
Standard Commercial Lines Segment | $ | 171,476 | 2,998,749 | 803,648 | 1,529,442 | — | 819,573 | 323,754 | 221,619 | 1,596,965 | ||||||||||||||||||
Standard Personal Lines Segment | 17,258 | 265,054 | 276,533 | 288,134 | — | 200,237 | 33,638 | 52,923 | 283,926 | |||||||||||||||||||
E&S Lines Segment | 24,425 | 253,925 | 89,529 | 172,333 | — | 128,731 | 42,044 | 18,361 | 189,013 | |||||||||||||||||||
Investments Segment | — | — | — | — | 134,487 | — | — | — | — | |||||||||||||||||||
Total | $ | 213,159 | 3,517,728 | 1,169,710 | 1,989,909 | 134,487 | 1,148,541 | 399,436 | 292,903 | 2,069,904 |
Other insurance expenses | $ | 300,359 | |
Other income | (7,456 | ) | |
Total | $ | 292,903 |
($ in thousands) | Deferred policy acquisition costs | Reserve for loss and loss expense | Unearned premiums | Net premiums earned | Net investment income1 | Loss and loss expense incurred | Amortization of deferred policy acquisition costs | Other operating expenses2 | Net premiums written | |||||||||||||||||||||||||||||||||||||||||||||||
Standard Commercial Lines Segment | $ | 206,391 | 3,283,531 | 1,020,054 | 1,912,222 | 0 | 1,141,038 | 412,420 | 249,660 | 1,975,683 | ||||||||||||||||||||||||||||||||||||||||||||||
Standard Personal Lines Segment | 18,070 | 223,223 | 304,085 | 304,441 | 0 | 206,752 | 33,617 | 51,308 | 309,277 | |||||||||||||||||||||||||||||||||||||||||||||||
E&S Lines Segment | 28,151 | 387,114 | 107,793 | 219,566 | 0 | 150,344 | 49,005 | 20,912 | 229,326 | |||||||||||||||||||||||||||||||||||||||||||||||
Investments Segment | 0 | 0 | 0 | 0 | 140,413 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 252,612 | 3,893,868 | 1,431,932 | 2,436,229 | 140,413 | 1,498,134 | 495,042 | 321,880 | 2,514,286 |
Other insurance expenses | $ | 331,318 | |||
Other income | (9,438) | ||||
Total | $ | 321,880 |
($ thousands) | Direct Amount | Assumed from Other Companies | Ceded to Other Companies | Net Amount | % of Amount Assumed to Net | |||||||||||
2017 | ||||||||||||||||
Premiums earned: | ||||||||||||||||
Accident and health insurance | $ | 24 | — | 24 | — | — | ||||||||||
Property and liability insurance | 2,647,464 | 25,831 | 382,268 | 2,291,027 | 1 | % | ||||||||||
Total premiums earned | 2,647,488 | 25,831 | 382,292 | 2,291,027 | 1 | % | ||||||||||
2016 | ||||||||||||||||
Premiums earned: | ||||||||||||||||
Accident and health insurance | $ | 32 | — | — | 32 | — | ||||||||||
Property and liability insurance | 2,484,683 | 28,214 | 363,357 | 2,149,540 | 1 | % | ||||||||||
Total premiums earned | 2,484,715 | 28,214 | 363,357 | 2,149,572 | 1 | % | ||||||||||
2015 | ||||||||||||||||
Premiums earned: | ||||||||||||||||
Accident and health insurance | $ | 37 | — | 37 | — | — | ||||||||||
Property and liability insurance | 2,330,230 | 23,209 | 363,530 | 1,989,909 | 1 | % | ||||||||||
Total premiums earned | 2,330,267 | 23,209 | 363,567 | 1,989,909 | 1 | % |
($ thousands) | Direct Amount | Assumed from Other Companies | Ceded to Other Companies | Net Amount | % of Amount Assumed to Net | |||||||||||||||||||||||||||
2020 | ||||||||||||||||||||||||||||||||
Premiums earned: | ||||||||||||||||||||||||||||||||
Accident and health insurance | $ | 13 | 0 | 13 | 0 | 0 | ||||||||||||||||||||||||||
Property and liability insurance | 3,108,674 | 25,010 | 451,870 | 2,681,814 | 1 % | |||||||||||||||||||||||||||
Total premiums earned | 3,108,687 | 25,010 | 451,883 | 2,681,814 | 1 % | |||||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||||||
Premiums earned: | ||||||||||||||||||||||||||||||||
Accident and health insurance | $ | 17 | 0 | 17 | 0 | 0 | ||||||||||||||||||||||||||
Property and liability insurance | 2,993,140 | 24,399 | 420,368 | 2,597,171 | 1 | % | ||||||||||||||||||||||||||
Total premiums earned | 2,993,157 | 24,399 | 420,385 | 2,597,171 | 1 | % | ||||||||||||||||||||||||||
2018 | ||||||||||||||||||||||||||||||||
Premiums earned: | ||||||||||||||||||||||||||||||||
Accident and health insurance | $ | 19 | 0 | 19 | 0 | 0 | ||||||||||||||||||||||||||
Property and liability insurance | 2,808,745 | 25,831 | 398,347 | 2,436,229 | 1 | % | ||||||||||||||||||||||||||
Total premiums earned | 2,808,764 | 25,831 | 398,366 | 2,436,229 | 1 | % |
($ in thousands) | 2017 | 2016 | 2015 | |||||||
Balance, January 1 | $ | 11,480 | 10,122 | 11,037 | ||||||
Additions | 6,414 | 4,669 | 3,604 | |||||||
Deductions | (3,294 | ) | (3,311 | ) | (4,519 | ) | ||||
Balance, December 31 | $ | 14,600 | 11,480 | 10,122 |
($ in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||
Balance, January 1 | $ | 10,800 | 13,900 | 14,600 | ||||||||||||||||
Cumulative effect adjustment1 | (1,845) | 0 | 0 | |||||||||||||||||
Balance at the beginning of the period, as adjusted | 8,955 | 13,900 | 14,600 | |||||||||||||||||
Additions | 17,576 | 2,730 | 4,022 | |||||||||||||||||
Deductions | (3,754) | (5,830) | (4,722) | |||||||||||||||||
Balance, December 31 | $ | 22,777 | 10,800 | 13,900 |
Exhibit | ||||||||
Number | ||||||||
Amended and Restated Certificate of Incorporation of Selective Insurance Group, Inc., filed May 4, 2010, as amended by Certificate of Correction thereto, dated August 17, 2020 and effective May 4, 2010 (incorporated by reference herein to Exhibit 3.1 of the Company’s Quarterly Report on Form 10-Q | ||||||||
Certificate of Amendment of the | ||||||||
By-Laws of Selective Insurance Group, Inc., effective July 29, 2015 (incorporated by reference herein to Exhibit 3.2 of the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2015, File No. 001-33067). | ||||||||
Indenture, dated as of September 24, 2002, between Selective Insurance Group, Inc. and National City Bank, as Trustee, relating to the Company's 1.6155% Senior Convertible Notes due September 24, 2032 (incorporated by reference herein to Exhibit 4.1 of the Company's Registration Statement on Form S-3 filed November 26, 2002 File No. 333-101489). | ||||||||
Indenture, dated as of November 16, 2004, between Selective Insurance Group, Inc. and Wachovia Bank, National Association, as Trustee, relating to the Company's 7.25% Senior Notes due 2034 (incorporated by reference herein to Exhibit 4.1 of the Company's Current Report on Form 8-K filed November 18, 2004, File No. 000-08641). | ||||||||
Indenture, dated as of November 3, 2005, between Selective Insurance Group, Inc. and Wachovia Bank, National Association, as Trustee, relating to the Company’s 6.70% Senior Notes due 2035 (incorporated by reference herein to Exhibit 4.1 of the Company’s Current Report on Form 8-K filed November 9, 2005, File No. 000-08641). | ||||||||
Registration Rights Agreement, dated as of November 16, 2004, between Selective Insurance Group, Inc. and Keefe, Bruyette & Woods, Inc. (incorporated by reference herein to Exhibit 4.2 of the Company’s Current Report on Form 8-K filed November 18, 2004, File No. 000-08641). | ||||||||
Registration Rights Agreement, dated as of November 3, 2005, between Selective Insurance Group, Inc. and Keefe, Bruyette & Woods, Inc. (incorporated by reference herein to Exhibit 4.2 of the Company’s Current Report on Form 8-K filed November 9, 2005, File No. 000-08641). | ||||||||
Indenture, dated as of February 8, 2013, between Selective Insurance Group, Inc. and U.S. Bank National Association, as Trustee (incorporated by reference herein to Exhibit 4.1 of the Company's Current Report on Form 8-K filed February 8, 2013, File No. 001-33067). | ||||||||
Deposit Agreement, dated as of December 9, 2020, among the Company and Equiniti Trust Company, acting as Depositary, Registrar and Transfer Agent, and the holders from time to time of the depositary receipts described therein (incorporated by reference herein to Exhibit 4.2 of the Company’s Current Report on Form 8-K filed | ||||||||
Description of the Company's Securities Registered Under Section 12 of the Securities Exchange Act of 1934. |
Exhibit | ||||||||
Number | ||||||||
Selective Insurance Supplemental Pension Plan, As Amended and Restated Effective January 1, 2005 (incorporated by reference herein to Exhibit 10.1 of the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2008, File No. 001-33067). | ||||||||
Amendment No. 1 to Selective Insurance Supplemental Pension Plan, As Amended and Restated Effective January 1, 2005 (incorporated by reference herein to Exhibit 10.1 of the Company's Current Report on Form 8-K filed March 25, 2013, File No. 001-33067). | ||||||||
Amendment No. 2 to Selective Insurance Supplemental Pension Plan, As Amended and Restated Effective January 1, 2005 (incorporated by reference herein to Exhibit 10.1 of the Company's Quarterly Report on Form 10-Q filed May 5, 2020, File No. 001-33067). | ||||||||
Selective Insurance Company of America Deferred Compensation Plan (2005), As Amended and Restated Effective as of January 1, 2010 (incorporated by reference herein to Exhibit 10.2 of the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2011, File No. 001-33067). | ||||||||
Amendment No 1. to Selective Insurance Company of America Deferred Compensation Plan (2005) (incorporated by reference herein to Exhibit 10.2a of the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2011, File No. 001-33067). |
Amendment No. 2 to Selective Insurance Company of America Deferred Compensation Plan (2005), As Amended and Restated Effective as of January 1, 2010 (incorporated by reference herein to Exhibit 10.2 of the Company's Current Report on Form 8-K filed March 25, 2013, File No. 001-33067). | ||||||||
Selective Insurance Group, Inc. 2014 Omnibus Stock Plan, effective May 1, 2014 (incorporated by reference herein to Appendix A-1 to the Company’s Definitive Proxy Statement for its 2014 Annual Meeting of Stockholders filed April 3, 2014, File No. | ||||||||
Selective Insurance Group, Inc. 2014 Omnibus Stock Plan Director Stock Option Agreement (incorporated by reference herein to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, File No. | ||||||||
Selective Insurance Group, Inc. 2014 Omnibus Stock Plan Stock Option Agreement (incorporated by reference herein to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, File No. | ||||||||
Selective Insurance Group, Inc. 2014 Omnibus Stock Plan Service-Based Restricted Stock Agreement (incorporated by reference herein to Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, File No. | ||||||||
Selective Insurance Group, Inc. 2014 Omnibus Stock Plan Performance-Based Restricted Stock Agreement (incorporated by reference herein to Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, File No. | ||||||||
Selective Insurance Group, Inc. 2014 Omnibus Stock Plan Service-Based Restricted Stock Unit Agreement (incorporated by reference herein to Exhibit 10.5 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, File No. | ||||||||
Selective Insurance Group, Inc. 2014 Omnibus Stock Plan Performance-Based Restricted Stock Unit Agreement (incorporated by reference herein to Exhibit 10.6 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, File No. | ||||||||
Selective Insurance Group, Inc. 2014 Omnibus Stock Plan Director Restricted Stock Unit Agreement (incorporated by reference herein to Exhibit 10.7 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, File No. |
Exhibit | ||||||||
Number | ||||||||
Selective Insurance Group, Inc. 2005 Omnibus Stock Plan As Amended and Restated Effective as of May 1, 2010 (incorporated by reference herein to Appendix C of the Company’s Definitive Proxy Statement for its 2010 Annual Meeting of Stockholders filed March 25, 2010, File No. 001-33067). | ||||||||
Selective Insurance Group, Inc. | ||||||||
Selective Insurance Group, Inc. 2005 Omnibus Stock Plan Director Stock Option Agreement (incorporated by reference herein to Exhibit 10.9 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2005, File No. 000-08641). | ||||||||
Selective Insurance Group, Inc. 2005 Omnibus Stock Plan Automatic Director Stock Option Agreement (incorporated by reference herein to Exhibit 2 of the Company’s Definitive Proxy Statement for its 2005 Annual Meeting of Stockholders filed April 6, 2005, File No. 000-08641). | ||||||||
Selective Insurance Group, Inc. Non-Employee Directors’ Compensation and Deferral Plan, As Amended and Restated Effective as of January 1, 2017 (incorporated by reference herein to Exhibit 10.18 to the Company's Annual Report on Form 10-K for the year ended December 31, 2016, File No. | ||||||||
Deferred Compensation Plan for Directors (incorporated by reference herein to Exhibit 10.5 to the Company’s Annual Report on Form 10-K for the year ended December 31, 1993, File No. 000-08641) | ||||||||
Selective Insurance Group, Inc. Employee Stock Purchase Plan (2009), amended and restated effective July 1, 2009 (incorporated by reference herein to Appendix A to the Company’s Definitive Proxy Statement for its 2009 Annual Meeting of Stockholders filed March 26, 2009, File No. 001-33067). | ||||||||
Selective Insurance Group, Inc. Cash Incentive Plan As Amended and Restated as of May 1, 2014 (incorporated by reference herein to Appendix B to the Company’s Definitive Proxy Statement for its 2014 Annual Meeting of Stockholders filed March 24, 2014, File No. 001-33067). | ||||||||
Selective Insurance Group, Inc. Cash Incentive Plan Service-Based Cash Incentive Unit Award Agreement (incorporated by reference herein to Exhibit 10.8 of the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, File No. 001-33067). | ||||||||
Selective Insurance Group, Inc. Cash Incentive Plan Performance-Based Cash Incentive Unit Award Agreement (incorporated by reference herein to Exhibit 10.9 of the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, File No. 001-33067). | ||||||||
Selective Insurance Group, Inc. Cash Incentive Plan Cash Incentive Unit Award Agreement (incorporated by reference herein to Exhibit 10.14c of the Company’s Annual Report on Form 10-K for the year ended December 31, 2007, File No. 001-33067). | ||||||||
Selective Insurance Group, Inc. Cash Incentive Plan Cash Incentive Unit Award Agreement (incorporated by reference herein to Exhibit 10.14d of the Company’s Annual Report on Form 10-K for the year ended December 31, 2007, File No. 001-33067). | ||||||||
Amended and Restated Selective Insurance Group, Inc. Stock Purchase Plan for Independent Insurance Agencies (2010), Amended and Restated as of | ||||||||
Selective Insurance Group, Inc. Stock Option Plan for Directors (incorporated by reference herein to Exhibit B of the Company’s Definitive Proxy Statement for its 2000 Annual Meeting of Stockholders filed March 31, 2000, File No. 000-08641). | ||||||||
Exhibit | ||||||||
Number | ||||||||
Amendment to the Selective Insurance Group, Inc. Stock Option Plan for Directors, as amended, effective as of July 26, 2006, (incorporated by reference herein to Exhibit 10.3 of the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2006, File No. 000-08641). | ||||||||
Selective Insurance Group, Inc. Stock Compensation Plan for Nonemployee Directors, (incorporated by reference herein to Exhibit A of the Company’s Definitive Proxy Statement for its 2000 Annual Meeting of Stockholders filed March 31, 2000, File No. 000-08641). |
Amendment to Selective Insurance Group, Inc. Stock Compensation Plan for Nonemployee Directors, as amended (incorporated by reference herein to Exhibit 10.22a of the Company’s Annual Report on Form 10-K for the year ended December 31, 2008, File No. 001-33067). | ||||||||
Employment Agreement between Selective Insurance Company of America and Gregory E. Murphy, | ||||||||
Employment Agreement between Selective Insurance Company of America and John J. Marchioni, dated as of | ||||||||
Employment Agreement between Selective Insurance Company of America and Mark A. Wilcox, dated as of October 28, 2016 (incorporated by reference herein to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed October 31, 2016, File No. 001-33067). | ||||||||
Employment Agreement between Selective Insurance Company of America and Michael H. Lanza, dated as of March 2, 2020 (incorporated by reference herein to Exhibit 10.1 of the Company's Current Report on Form 8-K filed March 2, 2020, File No. 001-33067). | ||||||||
Credit Agreement among Selective Insurance Group, Inc., the Lenders Named Therein and | ||||||||
Form of Indemnification Agreement between Selective Insurance Group, Inc. and each of its directors and executive officers, as adopted on May 19, 2005 (incorporated by reference herein to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed May 20, 2005, File No. 000-08641). | ||||||||
Selective Insurance Group, Inc. Non-Employee Directors’ Deferred Compensation Plan (incorporated by reference herein to Exhibit 10.27 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2009, File No. 001-33067). | ||||||||
Amendment No. 1 to the Selective Insurance Group, Inc. Non-Employee Directors’ Deferred Compensation Plan (incorporated by reference herein to Exhibit 10.27a of the Company’s Annual Report on Form 10-K for the year ended December 31, 2010, File No. 001-33067). | ||||||||
Exhibit | ||||||||
Number | ||||||||
Subsidiaries of Selective Insurance Group, Inc. | ||||||||
Consent of KPMG LLP. | ||||||||
Power of Attorney of | ||||||||
Power of Attorney of | ||||||||
Power of Attorney of John C. Burville. | ||||||||
Power of Attorney of Terrence W. Cavanaugh. | ||||||||
Power of Attorney of Wole C. Coaxum. | ||||||||
Power of Attorney of Robert Kelly Doherty. | ||||||||
Power of Attorney of Thomas A. McCarthy. | ||||||||
Power of Attorney of Stephen C. Mills. | ||||||||
Power of Attorney of H. Elizabeth Mitchell. | ||||||||
Power of Attorney of Michael J. Morrissey. | ||||||||
Power of Attorney of Gregory E. Murphy. | ||||||||
Power of Attorney of Cynthia S. Nicholson. | ||||||||
Power of Attorney of William M. Rue. | ||||||||
Power of Attorney of John S. Scheid. | ||||||||
Power of Attorney of J. Brian Thebault. | ||||||||
Power of Attorney of Philip H. Urban. | ||||||||
Certification of Chief Executive Officer in accordance with Section 302 of the Sarbanes-Oxley Act of 2002. | ||||||||
Certification of Chief Financial Officer in accordance with Section 302 of the Sarbanes-Oxley Act of 2002. | ||||||||
Certification of Chief Executive Officer in accordance with Section 906 of the Sarbanes-Oxley Act of 2002. | ||||||||
Certification of Chief Financial Officer in accordance with Section 906 of the Sarbanes-Oxley Act of 2002. | ||||||||
** 101 | The following financial statements from the Company's Annual report on Form 10-K for the year ended December 31, 2020, formatted in Inline Extensible Business Reporting Language (iXBRL): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Income, (II) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Stockholders' Equity, (v) Consolidated Statements of Cash Flows and (vi) Notes to Consolidated Financial Statements. | |||||||
** 104 | The cover page from the Company's Annual Report on Form 10-K for the year ended December 31, 2020, formatted in iXBRL |
SELECTIVE INSURANCE GROUP, INC. | ||||||||
By: /s/ | February | |||||||
(principal executive officer) | ||||||||
By: /s/ Mark A. Wilcox | February | |||||||
Mark A. Wilcox | ||||||||
Executive Vice President and Chief Financial Officer | ||||||||
(principal financial officer) | ||||||||
By: /s/ Anthony D. Harnett | February | |||||||
Anthony D. Harnett | ||||||||
Senior Vice President and Chief Accounting Officer | ||||||||
(principal accounting officer) |
By: /s/ John J. Marchioni | February 12, 2021 | |||||||
John J. Marchioni | ||||||||
President and Chief Executive Officer | ||||||||
* | February 12, 2021 | |||||||
Ainar D. Aijala, Jr. | ||||||||
Director | ||||||||
February | ||||||||
* | February | |||||||
John C. Burville | ||||||||
Director | ||||||||
* | February 12, 2021 | |||||||
Terrence W. Cavanaugh | ||||||||
Director | ||||||||
* | February 12, 2021 | |||||||
Wole C. Coaxum | ||||||||
Director | ||||||||
* | February 12, 2021 | |||||||
Robert Kelly Doherty | ||||||||
Director | ||||||||
* | February 12, 2021 | |||||||
Thomas A. McCarthy | ||||||||
Director | ||||||||
* | February 12, 2021 | |||||||
Stephen C. Mills | ||||||||
Director | ||||||||
* | February 12, 2021 | |||||||
H. Elizabeth Mitchell | ||||||||
Director | ||||||||
* | February 12, 2021 | |||||||
Michael J. Morrissey | ||||||||
Director | ||||||||
* | February 12, 2021 | |||||||
Gregory E. Murphy | ||||||||
Non-Executive Chairperson of the Board | ||||||||
* | February 12, 2021 | |||||||
Cynthia S. Nicholson | ||||||||
Director | ||||||||
* | February 12, 2021 | |||||||
William M. Rue | ||||||||
Director | ||||||||
* | February | |||||||
John S. Scheid | ||||||||
Director | ||||||||
* | February | |||||||
J. Brian Thebault | ||||||||
Director | ||||||||
* | February | |||||||
Philip H. Urban | ||||||||
Director |
* By: /s/ Michael H. Lanza | February | |||||||
Michael H. Lanza | ||||||||
Attorney-in-fact |