New Jersey | 22-2168890 | |||||||
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
973 | 948-3000 | ||||
(Registrant’s Telephone Number, Including Area Code) | |||||
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report) |
Title of each class | Trading Symbol (s) | Name of each exchange on which registered | ||||||||||||
Common Stock, par value $2 per share | SIGI | The Nasdaq Stock Market LLC | ||||||||||||
Depositary Shares, each representing a 1/1,000th interest in a share of 4.60% Non-Cumulative Preferred Stock, Series B, without par value | SIGIP | The Nasdaq Stock Market LLC |
Large accelerated filer | ☒ | Accelerated filer ☐ | |||||||||
Non-accelerated filer ☐ | Smaller reporting company | ☐ | |||||||||
Emerging growth company | ☐ |
SELECTIVE INSURANCE GROUP, INC. | ||||||||
Table of Contents | ||||||||
Page No. | ||||||||
PART I. FINANCIAL INFORMATION |
ITEM 1. FINANCIAL STATEMENTS. |
SELECTIVE INSURANCE GROUP, INC. CONSOLIDATED BALANCE SHEETS | SELECTIVE INSURANCE GROUP, INC. CONSOLIDATED BALANCE SHEETS | Unaudited | SELECTIVE INSURANCE GROUP, INC. CONSOLIDATED BALANCE SHEETS | Unaudited | ||||||||||||||||||||||||
($ in thousands, except share amounts) | ($ in thousands, except share amounts) | June 30, 2021 | December 31, 2020 | ($ in thousands, except share amounts) | March 31, 2022 | December 31, 2021 | ||||||||||||||||||||||
ASSETS | ASSETS | ASSETS | ||||||||||||||||||||||||||
Investments: | Investments: | Investments: | ||||||||||||||||||||||||||
Fixed income securities, held-to-maturity – at carrying value (fair value: $27,882 – 2021; $18,001 – 2020) | $ | 27,035 | 16,846 | |||||||||||||||||||||||||
Fixed income securities, held-to-maturity – at carrying value (fair value: $32,625 – 2022; $29,460 – 2021) | Fixed income securities, held-to-maturity – at carrying value (fair value: $32,625 – 2022; $29,460 – 2021) | $ | 33,085 | 28,850 | ||||||||||||||||||||||||
Less: allowance for credit losses | Less: allowance for credit losses | (79) | (22) | Less: allowance for credit losses | (50) | (65) | ||||||||||||||||||||||
Fixed income securities, held-to-maturity, net of allowance for credit losses | Fixed income securities, held-to-maturity, net of allowance for credit losses | 26,956 | 16,824 | Fixed income securities, held-to-maturity, net of allowance for credit losses | 33,035 | 28,785 | ||||||||||||||||||||||
Fixed income securities, available-for-sale – at fair value (allowance for credit losses: $6,011 – 2021 and $3,969 – 2020; amortized cost: $6,311,749 – 2021 and $6,073,517 – 2020) | 6,626,400 | 6,455,928 | ||||||||||||||||||||||||||
Fixed income securities, available-for-sale – at fair value (allowance for credit losses: $37,599 – 2022 and $9,724 – 2021; amortized cost: $6,717,907 – 2022 and $6,490,753 – 2021) | Fixed income securities, available-for-sale – at fair value (allowance for credit losses: $37,599 – 2022 and $9,724 – 2021; amortized cost: $6,717,907 – 2022 and $6,490,753 – 2021) | 6,598,822 | 6,709,976 | |||||||||||||||||||||||||
Commercial mortgage loans – at carrying value (fair value: $73,559 – 2021 and $47,289 – 2020) | 72,034 | 46,306 | ||||||||||||||||||||||||||
Commercial mortgage loans – at carrying value (fair value: $113,106 – 2022 and $97,598 – 2021) | Commercial mortgage loans – at carrying value (fair value: $113,106 – 2022 and $97,598 – 2021) | 115,893 | 95,795 | |||||||||||||||||||||||||
Less: allowance for credit losses | Less: allowance for credit losses | 0 | 0 | Less: allowance for credit losses | — | — | ||||||||||||||||||||||
Commercial mortgage loans, net of allowance for credit losses | Commercial mortgage loans, net of allowance for credit losses | 72,034 | 46,306 | Commercial mortgage loans, net of allowance for credit losses | 115,893 | 95,795 | ||||||||||||||||||||||
Equity securities – at fair value (cost: $320,586 – 2021; $301,551 – 2020) | 348,342 | 310,367 | ||||||||||||||||||||||||||
Equity securities – at fair value (cost: $320,040 – 2022; $308,840 – 2021) | Equity securities – at fair value (cost: $320,040 – 2022; $308,840 – 2021) | 344,583 | 335,537 | |||||||||||||||||||||||||
Short-term investments | Short-term investments | 351,230 | 409,852 | Short-term investments | 256,712 | 447,863 | ||||||||||||||||||||||
Other investments | Other investments | 330,479 | 266,322 | Other investments | 425,666 | 409,032 | ||||||||||||||||||||||
Total investments (Note 4 and 5) | Total investments (Note 4 and 5) | 7,755,441 | 7,505,599 | Total investments (Note 4 and 5) | $ | 7,774,711 | 8,026,988 | |||||||||||||||||||||
Cash | Cash | 450 | 394 | Cash | 410 | 455 | ||||||||||||||||||||||
Restricted cash | Restricted cash | 8,803 | 14,837 | Restricted cash | 17,474 | 44,608 | ||||||||||||||||||||||
Interest and dividends due or accrued | 46,069 | 45,004 | ||||||||||||||||||||||||||
Accrued investment income | Accrued investment income | 48,427 | 48,247 | |||||||||||||||||||||||||
Premiums receivable | Premiums receivable | 1,006,250 | 857,014 | Premiums receivable | 1,025,833 | 958,787 | ||||||||||||||||||||||
Less: allowance for credit losses (Note 6) | Less: allowance for credit losses (Note 6) | (18,300) | (21,000) | Less: allowance for credit losses (Note 6) | (14,300) | (13,600) | ||||||||||||||||||||||
Premiums receivable, net of allowance for credit losses | Premiums receivable, net of allowance for credit losses | 987,950 | 836,014 | Premiums receivable, net of allowance for credit losses | 1,011,533 | 945,187 | ||||||||||||||||||||||
Reinsurance recoverable | Reinsurance recoverable | 598,658 | 589,269 | Reinsurance recoverable | 578,959 | 601,668 | ||||||||||||||||||||||
Less: allowance for credit losses (Note 7) | Less: allowance for credit losses (Note 7) | (1,777) | (1,777) | Less: allowance for credit losses (Note 7) | (1,600) | (1,600) | ||||||||||||||||||||||
Reinsurance recoverable, net of allowance for credit losses | Reinsurance recoverable, net of allowance for credit losses | 596,881 | 587,492 | Reinsurance recoverable, net of allowance for credit losses | 577,359 | 600,068 | ||||||||||||||||||||||
Prepaid reinsurance premiums | Prepaid reinsurance premiums | 177,663 | 170,531 | Prepaid reinsurance premiums | 174,951 | 183,007 | ||||||||||||||||||||||
Property and equipment – at cost, net of accumulated depreciation and amortization of: $251,533 – 2021; $240,150 – 2020 | 75,142 | 77,696 | ||||||||||||||||||||||||||
Current federal income tax | Current federal income tax | — | 772 | |||||||||||||||||||||||||
Deferred federal income tax | Deferred federal income tax | 55,274 | — | |||||||||||||||||||||||||
Property and equipment – at cost, net of accumulated depreciation and amortization of: $259,522 – 2022; $253,427 – 2021 | Property and equipment – at cost, net of accumulated depreciation and amortization of: $259,522 – 2022; $253,427 – 2021 | 83,180 | 82,053 | |||||||||||||||||||||||||
Deferred policy acquisition costs | Deferred policy acquisition costs | 323,155 | 288,578 | Deferred policy acquisition costs | 341,689 | 326,915 | ||||||||||||||||||||||
Goodwill | Goodwill | 7,849 | 7,849 | Goodwill | 7,849 | 7,849 | ||||||||||||||||||||||
Other assets | Other assets | 188,468 | 153,919 | Other assets | 217,690 | 195,240 | ||||||||||||||||||||||
Total assets | Total assets | $ | 10,167,871 | 9,687,913 | Total assets | $ | 10,310,547 | 10,461,389 | ||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | LIABILITIES AND STOCKHOLDERS’ EQUITY | LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||||||
Liabilities: | Liabilities: | Liabilities: | ||||||||||||||||||||||||||
Reserve for loss and loss expense (Note 8) | Reserve for loss and loss expense (Note 8) | $ | 4,437,253 | 4,260,355 | Reserve for loss and loss expense (Note 8) | $ | 4,644,391 | 4,580,903 | ||||||||||||||||||||
Unearned premiums | Unearned premiums | 1,791,308 | 1,618,271 | Unearned premiums | 1,872,666 | 1,803,207 | ||||||||||||||||||||||
Long-term debt | Long-term debt | 550,881 | 550,743 | Long-term debt | 505,566 | 506,050 | ||||||||||||||||||||||
Current federal income tax | Current federal income tax | 7,451 | 14,021 | Current federal income tax | 16,473 | — | ||||||||||||||||||||||
Deferred federal income tax | Deferred federal income tax | 10,881 | 27,096 | Deferred federal income tax | — | 13,413 | ||||||||||||||||||||||
Accrued salaries and benefits | Accrued salaries and benefits | 103,383 | 114,868 | Accrued salaries and benefits | 90,584 | 121,057 | ||||||||||||||||||||||
Other liabilities | Other liabilities | 375,347 | 363,670 | Other liabilities | 402,626 | 453,874 | ||||||||||||||||||||||
Total liabilities | Total liabilities | $ | 7,276,504 | 6,949,024 | Total liabilities | $ | 7,532,306 | 7,478,504 | ||||||||||||||||||||
Stockholders’ Equity: | Stockholders’ Equity: | Stockholders’ Equity: | ||||||||||||||||||||||||||
Preferred stock of $0 par value per share: | Preferred stock of $0 par value per share: | $ | 200,000 | 200,000 | Preferred stock of $0 par value per share: | $ | 200,000 | 200,000 | ||||||||||||||||||||
Authorized shares 5,000,000; Issued shares: 8,000 with $25,000 liquidation preference per share - 2021 and 2020 | ||||||||||||||||||||||||||||
Authorized shares 5,000,000; Issued shares: 8,000 with $25,000 liquidation preference per share - 2022 and 2021 | Authorized shares 5,000,000; Issued shares: 8,000 with $25,000 liquidation preference per share - 2022 and 2021 | |||||||||||||||||||||||||||
Common stock of $2 par value per share: | 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 | Authorized shares 360,000,000 | ||||||||||||||||||||||||||
Issued: 104,371,083 – 2021; 104,032,912 – 2020 | 208,742 | 208,066 | ||||||||||||||||||||||||||
Issued: 104,674,999 – 2022; 104,450,916 – 2021 | Issued: 104,674,999 – 2022; 104,450,916 – 2021 | 209,336 | 208,902 | |||||||||||||||||||||||||
Additional paid-in capital | Additional paid-in capital | 454,459 | 438,985 | Additional paid-in capital | 472,790 | 464,347 | ||||||||||||||||||||||
Retained earnings | Retained earnings | 2,467,596 | 2,271,537 | Retained earnings | 2,640,437 | 2,603,472 | ||||||||||||||||||||||
Accumulated other comprehensive income (Note 11) | 169,371 | 220,186 | ||||||||||||||||||||||||||
Treasury stock – at cost (shares: 44,264,847 – 2021; 44,127,109 – 2020) (Note 12) | (608,801) | (599,885) | ||||||||||||||||||||||||||
Accumulated other comprehensive (loss) income (Note 11) | Accumulated other comprehensive (loss) income (Note 11) | (129,795) | 115,099 | |||||||||||||||||||||||||
Treasury stock – at cost (shares: 44,339,527 – 2022; 44,266,534 – 2021) | Treasury stock – at cost (shares: 44,339,527 – 2022; 44,266,534 – 2021) | (614,527) | (608,935) | |||||||||||||||||||||||||
Total stockholders’ equity | Total stockholders’ equity | $ | 2,891,367 | 2,738,889 | Total stockholders’ equity | $ | 2,778,241 | 2,982,885 | ||||||||||||||||||||
Commitments and contingencies | Commitments and contingencies | 0 | 0 | Commitments and contingencies | 0 | 0 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity | Total liabilities and stockholders’ equity | $ | 10,167,871 | 9,687,913 | Total liabilities and stockholders’ equity | $ | 10,310,547 | 10,461,389 |
SELECTIVE INSURANCE GROUP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF INCOME | SELECTIVE INSURANCE GROUP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF INCOME | Quarter ended June 30, | Six Months ended June 30, | SELECTIVE INSURANCE GROUP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF INCOME | Quarter ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands, except per share amounts) | ($ in thousands, except per share amounts) | 2021 | 2020 | 2021 | 2020 | ($ in thousands, except per share amounts) | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Revenues: | Revenues: | Revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net premiums earned | Net premiums earned | $ | 740,518 | 630,671 | $ | 1,465,478 | 1,282,374 | Net premiums earned | $ | 812,283 | 724,960 | |||||||||||||||||||||||||||||||||||||||||
Net investment income earned | Net investment income earned | 83,731 | 34,444 | 153,447 | 90,411 | Net investment income earned | 72,602 | 69,716 | ||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized investment gains (losses) | 10,057 | 12,649 | 15,176 | (32,017) | ||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized investment (losses) gains | Net realized and unrealized investment (losses) gains | (40,352) | 5,119 | |||||||||||||||||||||||||||||||||||||||||||||||||
Other income | Other income | 6,212 | 4,683 | 10,324 | 6,508 | Other income | 1,529 | 4,112 | ||||||||||||||||||||||||||||||||||||||||||||
Total revenues | Total revenues | 840,518 | 682,447 | 1,644,425 | 1,347,276 | Total revenues | 846,062 | 803,907 | ||||||||||||||||||||||||||||||||||||||||||||
Expenses: | Expenses: | Expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Loss and loss expense incurred | Loss and loss expense incurred | 421,623 | 403,949 | 835,024 | 804,273 | Loss and loss expense incurred | 494,236 | 413,401 | ||||||||||||||||||||||||||||||||||||||||||||
Amortization of deferred policy acquisition costs | Amortization of deferred policy acquisition costs | 154,357 | 136,931 | 303,408 | 273,432 | Amortization of deferred policy acquisition costs | 169,757 | 149,051 | ||||||||||||||||||||||||||||||||||||||||||||
Other insurance expenses | Other insurance expenses | 94,862 | 84,601 | 183,772 | 179,947 | Other insurance expenses | 93,990 | 88,910 | ||||||||||||||||||||||||||||||||||||||||||||
Interest expense | Interest expense | 7,366 | 7,928 | 14,725 | 15,529 | Interest expense | 7,168 | 7,359 | ||||||||||||||||||||||||||||||||||||||||||||
Corporate expenses | Corporate expenses | 9,112 | 6,345 | 18,666 | 15,405 | Corporate expenses | 11,021 | 9,554 | ||||||||||||||||||||||||||||||||||||||||||||
Total expenses | Total expenses | 687,320 | 639,754 | 1,355,595 | 1,288,586 | Total expenses | 776,172 | 668,275 | ||||||||||||||||||||||||||||||||||||||||||||
Income before federal income tax | Income before federal income tax | 153,198 | 42,693 | 288,830 | 58,690 | Income before federal income tax | 69,890 | 135,632 | ||||||||||||||||||||||||||||||||||||||||||||
Federal income tax expense: | Federal income tax expense: | Federal income tax expense: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Current | Current | 32,017 | (1,350) | 60,441 | 8,536 | Current | 17,178 | 28,424 | ||||||||||||||||||||||||||||||||||||||||||||
Deferred | Deferred | (702) | 9,860 | (2,764) | 735 | Deferred | (3,618) | (2,062) | ||||||||||||||||||||||||||||||||||||||||||||
Total federal income tax expense | Total federal income tax expense | 31,315 | 8,510 | 57,677 | 9,271 | Total federal income tax expense | 13,560 | 26,362 | ||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | $ | 121,883 | 34,183 | $ | 231,153 | 49,419 | Net income | $ | 56,330 | 109,270 | |||||||||||||||||||||||||||||||||||||||||
Preferred stock dividends | Preferred stock dividends | 2,300 | 0 | 4,753 | 0 | Preferred stock dividends | 2,300 | 2,453 | ||||||||||||||||||||||||||||||||||||||||||||
Net income available to common stockholders | Net income available to common stockholders | $ | 119,583 | 34,183 | $ | 226,400 | 49,419 | Net income available to common stockholders | $ | 54,030 | 106,817 | |||||||||||||||||||||||||||||||||||||||||
Earnings per common share: | Earnings per common share: | Earnings per common share: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income available to common stockholders - Basic | Net income available to common stockholders - Basic | $ | 1.99 | 0.57 | $ | 3.77 | 0.83 | Net income available to common stockholders - Basic | $ | 0.89 | 1.78 | |||||||||||||||||||||||||||||||||||||||||
Net income available to common stockholders - Diluted | Net income available to common stockholders - Diluted | $ | 1.98 | 0.57 | $ | 3.74 | 0.82 | Net income available to common stockholders - Diluted | $ | 0.89 | 1.77 |
SELECTIVE INSURANCE GROUP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | SELECTIVE INSURANCE GROUP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | Quarter ended June 30, | Six Months ended June 30, | SELECTIVE INSURANCE GROUP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | Quarter ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | 2021 | 2020 | 2021 | 2020 | ($ in thousands) | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | $ | 121,883 | 34,183 | $ | 231,153 | 49,419 | Net income | $ | 56,330 | 109,270 | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) ("OCI"), net of tax: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gains (losses) on investment securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized holding gains (losses) arising during period | 28,086 | 149,127 | (53,527) | 74,882 | ||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gains (losses) on securities with credit loss recognized in earnings | 7,888 | 29,608 | (1,055) | (22,050) | ||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss ("OCI"), net of tax: | Other comprehensive loss ("OCI"), net of tax: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized losses on investment securities: | Unrealized losses on investment securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized holding losses arising during period | Unrealized holding losses arising during period | (206,848) | (81,613) | |||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized losses on securities with credit loss recognized in earnings | Unrealized losses on securities with credit loss recognized in earnings | (68,430) | (8,943) | |||||||||||||||||||||||||||||||||||||||||||||||||
Amounts reclassified into net income: | Amounts reclassified into net income: | Amounts reclassified into net income: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Held-to-maturity ("HTM") securities | Held-to-maturity ("HTM") securities | (2) | (25) | (4) | (5) | Held-to-maturity ("HTM") securities | 1 | (2) | ||||||||||||||||||||||||||||||||||||||||||||
Net realized losses (gains) on disposals and intent-to-sell available-for-sale ("AFS") securities | 46 | (1,332) | 523 | 7,616 | ||||||||||||||||||||||||||||||||||||||||||||||||
Credit loss (benefit) expense | (1,795) | (3,890) | 2,153 | 8,582 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net realized losses on disposals and intent-to-sell available-for-sale ("AFS") securities | Net realized losses on disposals and intent-to-sell available-for-sale ("AFS") securities | 12,633 | 477 | |||||||||||||||||||||||||||||||||||||||||||||||||
Credit loss expense | Credit loss expense | 17,421 | 3,948 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total unrealized gains (losses) on investment securities | 34,223 | 173,488 | (51,910) | 69,025 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total unrealized losses on investment securities | Total unrealized losses on investment securities | (245,223) | (86,133) | |||||||||||||||||||||||||||||||||||||||||||||||||
Defined benefit pension and post-retirement plans: | Defined benefit pension and post-retirement plans: | Defined benefit pension and post-retirement plans: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Amounts reclassified into net income: | Amounts reclassified into net income: | Amounts reclassified into net income: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net actuarial loss | Net actuarial loss | 548 | 595 | 1,095 | 1,191 | Net actuarial loss | 329 | 547 | ||||||||||||||||||||||||||||||||||||||||||||
Total defined benefit pension and post-retirement plans | Total defined benefit pension and post-retirement plans | 548 | 595 | 1,095 | 1,191 | Total defined benefit pension and post-retirement plans | 329 | 547 | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | 34,771 | 174,083 | (50,815) | 70,216 | ||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | $ | 156,654 | 208,266 | $ | 180,338 | 119,635 | ||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | Other comprehensive loss | (244,894) | (85,586) | |||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive (loss) income | Comprehensive (loss) income | $ | (188,564) | 23,684 |
SELECTIVE INSURANCE GROUP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY | SELECTIVE INSURANCE GROUP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY | Quarter ended June 30, | Six Months ended June 30, | SELECTIVE INSURANCE GROUP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY | Quarter ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands, except share and per share amounts) | ($ in thousands, except share and per share amounts) | 2021 | 2020 | 2021 | 2020 | ($ in thousands, except share and per share amounts) | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Preferred stock: | Preferred stock: | Preferred stock: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning of period | Beginning of period | $ | 200,000 | 0 | $ | 200,000 | 0 | Beginning of period | $ | 200,000 | 200,000 | |||||||||||||||||||||||||||||||||||||||||
Issuance of preferred stock | Issuance of preferred stock | 0 | 0 | 0 | 0 | Issuance of preferred stock | — | — | ||||||||||||||||||||||||||||||||||||||||||||
End of period | End of period | 200,000 | 0 | 200,000 | 0 | End of period | 200,000 | 200,000 | ||||||||||||||||||||||||||||||||||||||||||||
Common stock: | Common stock: | Common stock: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning of period | Beginning of period | 208,576 | 207,665 | 208,066 | 206,968 | Beginning of period | 208,902 | 208,066 | ||||||||||||||||||||||||||||||||||||||||||||
Dividend reinvestment plan | Dividend reinvestment plan | 11 | 16 | 24 | 30 | Dividend reinvestment plan | 11 | 13 | ||||||||||||||||||||||||||||||||||||||||||||
Stock purchase and compensation plans | Stock purchase and compensation plans | 155 | 194 | 652 | 877 | Stock purchase and compensation plans | 423 | 497 | ||||||||||||||||||||||||||||||||||||||||||||
End of period | End of period | 208,742 | 207,875 | 208,742 | 207,875 | End of period | 209,336 | 208,576 | ||||||||||||||||||||||||||||||||||||||||||||
Additional paid-in capital: | Additional paid-in capital: | Additional paid-in capital: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning of period | Beginning of period | 446,410 | 427,328 | 438,985 | 418,521 | Beginning of period | 464,347 | 438,985 | ||||||||||||||||||||||||||||||||||||||||||||
Dividend reinvestment plan | Dividend reinvestment plan | 416 | 407 | 845 | 815 | Dividend reinvestment plan | 443 | 429 | ||||||||||||||||||||||||||||||||||||||||||||
Stock purchase and compensation plans | Stock purchase and compensation plans | 7,633 | 7,284 | 14,629 | 15,683 | Stock purchase and compensation plans | 8,000 | 6,996 | ||||||||||||||||||||||||||||||||||||||||||||
End of period | End of period | 454,459 | 435,019 | 454,459 | 435,019 | End of period | 472,790 | 446,410 | ||||||||||||||||||||||||||||||||||||||||||||
Retained earnings: | Retained earnings: | Retained earnings: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning of period, as previously reported | 2,363,189 | 2,083,340 | 2,271,537 | 2,080,529 | ||||||||||||||||||||||||||||||||||||||||||||||||
Beginning of period | Beginning of period | 2,603,472 | 2,271,537 | |||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative effect adjustment due to adoption of guidance on allowance for credit losses, net of tax | 0 | 0 | 0 | 1,435 | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period, as adjusted | 2,363,189 | 2,083,340 | 2,271,537 | 2,081,964 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | 121,883 | 34,183 | 231,153 | 49,419 | Net income | 56,330 | 109,270 | ||||||||||||||||||||||||||||||||||||||||||||
Dividends to preferred stockholders | Dividends to preferred stockholders | (2,300) | 0 | (4,753) | 0 | Dividends to preferred stockholders | (2,300) | (2,453) | ||||||||||||||||||||||||||||||||||||||||||||
Dividends to common stockholders | Dividends to common stockholders | (15,176) | (13,894) | (30,341) | (27,754) | Dividends to common stockholders | (17,065) | (15,165) | ||||||||||||||||||||||||||||||||||||||||||||
End of period | End of period | 2,467,596 | 2,103,629 | 2,467,596 | 2,103,629 | End of period | 2,640,437 | 2,363,189 | ||||||||||||||||||||||||||||||||||||||||||||
Accumulated other comprehensive income (loss) ("AOCI"): | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated other comprehensive (loss) income ("AOCI"): | Accumulated other comprehensive (loss) income ("AOCI"): | |||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning of period | Beginning of period | 134,600 | (22,117) | 220,186 | 81,750 | Beginning of period | 115,099 | 220,186 | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | 34,771 | 174,083 | (50,815) | 70,216 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | Other comprehensive loss | (244,894) | (85,586) | |||||||||||||||||||||||||||||||||||||||||||||||||
End of period | End of period | 169,371 | 151,966 | 169,371 | 151,966 | End of period | (129,795) | 134,600 | ||||||||||||||||||||||||||||||||||||||||||||
Treasury stock: | Treasury stock: | Treasury stock: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning of period | Beginning of period | (608,730) | (599,760) | (599,885) | (592,832) | Beginning of period | (608,935) | (599,885) | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition of treasury stock - share repurchase authorization | Acquisition of treasury stock - share repurchase authorization | 0 | 0 | (3,404) | 0 | Acquisition of treasury stock - share repurchase authorization | (76) | (3,404) | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition of treasury stock - shares acquired related to employee-share based compensation plans | (71) | (54) | (5,512) | (6,982) | ||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition of treasury stock - shares acquired related to employee share-based compensation plans | Acquisition of treasury stock - shares acquired related to employee share-based compensation plans | (5,516) | (5,441) | |||||||||||||||||||||||||||||||||||||||||||||||||
End of period | End of period | (608,801) | (599,814) | (608,801) | (599,814) | End of period | (614,527) | (608,730) | ||||||||||||||||||||||||||||||||||||||||||||
Total stockholders’ equity | Total stockholders’ equity | $ | 2,891,367 | 2,298,675 | $ | 2,891,367 | 2,298,675 | Total stockholders’ equity | $ | 2,778,241 | 2,744,045 | |||||||||||||||||||||||||||||||||||||||||
Dividends declared per preferred share | Dividends declared per preferred share | $ | 287.50 | 0 | $ | 594.17 | 0 | Dividends declared per preferred share | $ | 287.50 | 306.67 | |||||||||||||||||||||||||||||||||||||||||
Dividends declared per common share | Dividends declared per common share | $ | 0.25 | 0.23 | $ | 0.50 | 0.46 | Dividends declared per common share | $ | 0.28 | 0.25 | |||||||||||||||||||||||||||||||||||||||||
Preferred stock, shares outstanding: | Preferred stock, shares outstanding: | Preferred stock, shares outstanding: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning of period | Beginning of period | 8,000 | 0 | 8,000 | 0 | Beginning of period | 8,000 | 8,000 | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of preferred stock | Issuance of preferred stock | 0 | 0 | 0 | 0 | Issuance of preferred stock | — | — | ||||||||||||||||||||||||||||||||||||||||||||
End of period | End of period | 8,000 | 0 | 8,000 | 0 | End of period | 8,000 | 8,000 | ||||||||||||||||||||||||||||||||||||||||||||
Common stock, shares outstanding: | Common stock, shares outstanding: | Common stock, shares outstanding: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning of period | Beginning of period | 60,023,883 | 59,707,545 | 59,905,803 | 59,461,153 | Beginning of period | 60,184,382 | 59,905,803 | ||||||||||||||||||||||||||||||||||||||||||||
Dividend reinvestment plan | Dividend reinvestment plan | 5,636 | 7,899 | 12,056 | 14,874 | Dividend reinvestment plan | 5,641 | 6,420 | ||||||||||||||||||||||||||||||||||||||||||||
Stock purchase and compensation plan | Stock purchase and compensation plan | 77,656 | 97,365 | 326,115 | 438,601 | Stock purchase and compensation plan | 218,442 | 248,459 | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition of treasury stock - share repurchase authorization | Acquisition of treasury stock - share repurchase authorization | 0 | 0 | (52,781) | 0 | Acquisition of treasury stock - share repurchase authorization | (1,000) | (52,781) | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition of treasury stock - shares acquired related to employee share-based compensation plans | Acquisition of treasury stock - shares acquired related to employee share-based compensation plans | (939) | (1,067) | (84,957) | (102,886) | Acquisition of treasury stock - shares acquired related to employee share-based compensation plans | (71,993) | (84,018) | ||||||||||||||||||||||||||||||||||||||||||||
End of period | End of period | 60,106,236 | 59,811,742 | 60,106,236 | 59,811,742 | End of period | 60,335,472 | 60,023,883 |
SELECTIVE INSURANCE GROUP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS | SELECTIVE INSURANCE GROUP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS | Six Months ended June 30, | SELECTIVE INSURANCE GROUP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS | Quarter ended March 31, | ||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | 2021 | 2020 | ($ in thousands) | 2022 | 2021 | ||||||||||||||||||||||
Operating Activities | Operating Activities | Operating Activities | ||||||||||||||||||||||||||
Net income | Net income | $ | 231,153 | 49,419 | Net income | $ | 56,330 | 109,270 | ||||||||||||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | Adjustments to reconcile net income to net cash provided by (used in) operating activities: | Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||||||||||||||||
Depreciation and amortization | Depreciation and amortization | 27,451 | 29,634 | Depreciation and amortization | 12,807 | 13,703 | ||||||||||||||||||||||
Stock-based compensation expense | Stock-based compensation expense | 10,927 | 11,198 | Stock-based compensation expense | 7,031 | 6,493 | ||||||||||||||||||||||
Undistributed (gains) losses of equity method investments | (34,841) | 7,319 | ||||||||||||||||||||||||||
Undistributed gains of equity method investments | Undistributed gains of equity method investments | (9,406) | (13,905) | |||||||||||||||||||||||||
Distributions in excess of current year income of equity method investments | Distributions in excess of current year income of equity method investments | 1,817 | 8,488 | Distributions in excess of current year income of equity method investments | 11,626 | 2,309 | ||||||||||||||||||||||
Net realized and unrealized (gains) losses | (15,176) | 32,017 | ||||||||||||||||||||||||||
Net realized and unrealized losses (gains) | Net realized and unrealized losses (gains) | 40,352 | (5,119) | |||||||||||||||||||||||||
Loss on disposal of fixed assets | Loss on disposal of fixed assets | 10 | 17 | Loss on disposal of fixed assets | 2 | 3 | ||||||||||||||||||||||
Changes in assets and liabilities: | Changes in assets and liabilities: | Changes in assets and liabilities: | ||||||||||||||||||||||||||
Increase in reserve for loss and loss expense, net of reinsurance recoverable | Increase in reserve for loss and loss expense, net of reinsurance recoverable | 167,509 | 101,151 | Increase in reserve for loss and loss expense, net of reinsurance recoverable | 86,197 | 106,468 | ||||||||||||||||||||||
Increase in unearned premiums, net of prepaid reinsurance | Increase in unearned premiums, net of prepaid reinsurance | 165,905 | 89,705 | Increase in unearned premiums, net of prepaid reinsurance | 77,515 | 73,218 | ||||||||||||||||||||||
(Decrease) increase in net federal income taxes | (9,278) | 8,340 | ||||||||||||||||||||||||||
Increase in net federal income taxes | Increase in net federal income taxes | 13,656 | 25,927 | |||||||||||||||||||||||||
Increase in premiums receivable | Increase in premiums receivable | (151,936) | (44,095) | Increase in premiums receivable | (66,346) | (59,182) | ||||||||||||||||||||||
Increase in deferred policy acquisition costs | Increase in deferred policy acquisition costs | (34,577) | (14,269) | Increase in deferred policy acquisition costs | (14,774) | (14,074) | ||||||||||||||||||||||
Increase in interest and dividends due or accrued | (1,124) | (934) | ||||||||||||||||||||||||||
Increase in accrued investment income | Increase in accrued investment income | (185) | (1,101) | |||||||||||||||||||||||||
Decrease in accrued salaries and benefits | Decrease in accrued salaries and benefits | (11,485) | (44,082) | Decrease in accrued salaries and benefits | (30,473) | (31,216) | ||||||||||||||||||||||
Increase in other assets | Increase in other assets | (21,991) | (2,753) | Increase in other assets | (10,789) | (14,302) | ||||||||||||||||||||||
Decrease in other liabilities | Decrease in other liabilities | (31,912) | (33,770) | Decrease in other liabilities | (80,864) | (68,236) | ||||||||||||||||||||||
Net cash provided by operating activities | Net cash provided by operating activities | 292,452 | 197,385 | Net cash provided by operating activities | 92,679 | 130,256 | ||||||||||||||||||||||
Investing Activities | Investing Activities | Investing Activities | ||||||||||||||||||||||||||
Purchase of fixed income securities, held-to-maturity | (11,250) | 0 | ||||||||||||||||||||||||||
Purchase of fixed income securities, available-for-sale | (1,158,017) | (961,803) | ||||||||||||||||||||||||||
Purchase of fixed income securities, HTM | Purchase of fixed income securities, HTM | (5,000) | (9,000) | |||||||||||||||||||||||||
Purchase of fixed income securities, AFS | Purchase of fixed income securities, AFS | (874,665) | (671,909) | |||||||||||||||||||||||||
Purchase of commercial mortgage loans | Purchase of commercial mortgage loans | (25,945) | (17,934) | Purchase of commercial mortgage loans | (20,399) | (14,860) | ||||||||||||||||||||||
Purchase of equity securities | Purchase of equity securities | (76,793) | (73,879) | Purchase of equity securities | (13,952) | (48,910) | ||||||||||||||||||||||
Purchase of other investments | Purchase of other investments | (40,286) | (39,400) | Purchase of other investments | (15,555) | (18,589) | ||||||||||||||||||||||
Purchase of short-term investments | Purchase of short-term investments | (2,596,863) | (3,368,828) | Purchase of short-term investments | (910,191) | (1,723,212) | ||||||||||||||||||||||
Sale of fixed income securities, available-for-sale | 307,057 | 302,342 | ||||||||||||||||||||||||||
Sale of fixed income securities, AFS | Sale of fixed income securities, AFS | 425,234 | 212,891 | |||||||||||||||||||||||||
Proceeds from commercial mortgage loans | Proceeds from commercial mortgage loans | 217 | 54 | Proceeds from commercial mortgage loans | 301 | 99 | ||||||||||||||||||||||
Sale of short-term investments | Sale of short-term investments | 2,655,450 | 3,278,106 | Sale of short-term investments | 1,101,725 | 1,795,239 | ||||||||||||||||||||||
Redemption and maturities of fixed income securities, held-to-maturity | 1,032 | 1,200 | ||||||||||||||||||||||||||
Redemption and maturities of fixed income securities, available-for-sale | 629,512 | 461,527 | ||||||||||||||||||||||||||
Redemption and maturities of fixed income securities, HTM | Redemption and maturities of fixed income securities, HTM | 756 | 1,461 | |||||||||||||||||||||||||
Redemption and maturities of fixed income securities, AFS | Redemption and maturities of fixed income securities, AFS | 216,024 | 319,469 | |||||||||||||||||||||||||
Sale of equity securities | Sale of equity securities | 57,316 | 1,320 | Sale of equity securities | 2,626 | 42,782 | ||||||||||||||||||||||
Sale of other investments | Sale of other investments | 3,128 | 53 | Sale of other investments | 525 | 3,004 | ||||||||||||||||||||||
Distributions from other investments | Distributions from other investments | 6,245 | 7,349 | Distributions from other investments | 4,342 | 5,162 | ||||||||||||||||||||||
Purchase of property and equipment | Purchase of property and equipment | (9,491) | (12,634) | Purchase of property and equipment | (7,677) | (4,561) | ||||||||||||||||||||||
Net cash used in investing activities | Net cash used in investing activities | (258,688) | (422,527) | Net cash used in investing activities | (95,906) | (110,934) | ||||||||||||||||||||||
Financing Activities | Financing Activities | Financing Activities | ||||||||||||||||||||||||||
Dividends to preferred stockholders | Dividends to preferred stockholders | (4,753) | 0 | Dividends to preferred stockholders | (2,300) | (2,453) | ||||||||||||||||||||||
Dividends to common stockholders | Dividends to common stockholders | (29,155) | (26,631) | Dividends to common stockholders | (16,447) | (14,569) | ||||||||||||||||||||||
Acquisition of treasury stock | Acquisition of treasury stock | (8,916) | (6,982) | Acquisition of treasury stock | (5,592) | (8,845) | ||||||||||||||||||||||
Net proceeds from stock purchase and compensation plans | Net proceeds from stock purchase and compensation plans | 3,790 | 4,731 | Net proceeds from stock purchase and compensation plans | 999 | 824 | ||||||||||||||||||||||
Preferred stock issued, net of issuance costs | Preferred stock issued, net of issuance costs | (479) | 0 | Preferred stock issued, net of issuance costs | — | (479) | ||||||||||||||||||||||
Proceeds from borrowings | 0 | 387,000 | ||||||||||||||||||||||||||
Repayments of borrowings | 0 | (135,000) | ||||||||||||||||||||||||||
Repayments of finance lease obligations | Repayments of finance lease obligations | (229) | (314) | Repayments of finance lease obligations | (612) | (115) | ||||||||||||||||||||||
Net cash (used in) provided by financing activities | (39,742) | 222,804 | ||||||||||||||||||||||||||
Net cash used in financing activities | Net cash used in financing activities | (23,952) | (25,637) | |||||||||||||||||||||||||
Net decrease in cash and restricted cash | Net decrease in cash and restricted cash | (5,978) | (2,338) | Net decrease in cash and restricted cash | (27,179) | (6,315) | ||||||||||||||||||||||
Cash and restricted cash, beginning of year | Cash and restricted cash, beginning of year | 15,231 | 7,975 | Cash and restricted cash, beginning of year | 45,063 | 15,231 | ||||||||||||||||||||||
Cash and restricted cash, end of period | Cash and restricted cash, end of period | $ | 9,253 | 5,637 | Cash and restricted cash, end of period | $ | 17,884 | 8,916 |
Six Months ended June 30, | Quarter ended March 31, | |||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | 2021 | 2020 | ($ in thousands) | 2022 | 2021 | ||||||||||||||||||||||
Cash paid during the period for: | ||||||||||||||||||||||||||||
Cash paid (received) during the period for: | Cash paid (received) during the period for: | |||||||||||||||||||||||||||
Interest | Interest | $ | 14,547 | 14,920 | Interest | $ | 8,523 | 8,722 | ||||||||||||||||||||
Federal income tax | Federal income tax | 66,000 | 0 | Federal income tax | (800) | — | ||||||||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | Cash paid for amounts included in the measurement of lease liabilities: | Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||||||||||||||
Operating cash flows from operating leases | Operating cash flows from operating leases | 4,348 | 4,443 | Operating cash flows from operating leases | 2,058 | 2,226 | ||||||||||||||||||||||
Operating cash flows from financing leases | Operating cash flows from financing leases | 4 | 10 | Operating cash flows from financing leases | 11 | 2 | ||||||||||||||||||||||
Financing cash flows from finance leases | Financing cash flows from finance leases | 229 | 314 | Financing cash flows from finance leases | 612 | 115 | ||||||||||||||||||||||
Non-cash items: | Non-cash items: | Non-cash items: | ||||||||||||||||||||||||||
Corporate actions related to fixed income securities, AFS1 | Corporate actions related to fixed income securities, AFS1 | 45,392 | 18,224 | Corporate actions related to fixed income securities, AFS1 | 1,244 | 26,085 | ||||||||||||||||||||||
Corporate actions related to fixed income securities, HTM1 | 0 | 2,596 | ||||||||||||||||||||||||||
Corporate actions related to equity securities1 | 527 | 890 | ||||||||||||||||||||||||||
Assets acquired under finance lease arrangements | Assets acquired under finance lease arrangements | 183 | 119 | Assets acquired under finance lease arrangements | 38 | 183 | ||||||||||||||||||||||
Assets acquired under operating lease arrangements | Assets acquired under operating lease arrangements | 16 | 4,358 | Assets acquired under operating lease arrangements | 5,760 | 16 | ||||||||||||||||||||||
Non-cash purchase of property and equipment | Non-cash purchase of property and equipment | 35 | 60 | Non-cash purchase of property and equipment | — | 3 |
($ in thousands) | June 30, 2021 | December 31, 2020 | ||||||||||||
Cash | $ | 450 | 394 | |||||||||||
Restricted cash | 8,803 | 14,837 | ||||||||||||
Total cash and restricted cash shown in the Statements of Cash Flows | $ | 9,253 | 15,231 |
($ in thousands) | March 31, 2022 | December 31, 2021 | ||||||||||||
Cash | $ | 410 | 455 | |||||||||||
Restricted cash | 17,474 | 44,608 | ||||||||||||
Total cash and restricted cash shown in the Consolidated Statements of Cash Flows | $ | 17,884 | 45,063 |
June 30, 2021 | ||||||||||||||||||||||||||||||||
($ in thousands) | Cost/ Amortized Cost | Allowance for Credit Losses | Unrealized Gains | Unrealized Losses | Fair Value | |||||||||||||||||||||||||||
AFS fixed income securities: | ||||||||||||||||||||||||||||||||
U.S. government and government agencies | $ | 132,506 | 0 | 4,319 | (631) | 136,194 | ||||||||||||||||||||||||||
Foreign government | 14,578 | (49) | 819 | (73) | 15,275 | |||||||||||||||||||||||||||
Obligations of states and political subdivisions | 1,119,039 | (38) | 81,003 | (103) | 1,199,901 | |||||||||||||||||||||||||||
Corporate securities | 2,325,858 | (3,477) | 146,061 | (1,555) | 2,466,887 | |||||||||||||||||||||||||||
Collateralized loan obligations ("CLO") and other asset-backed securities ("ABS") | 1,266,236 | (1,399) | 20,110 | (2,724) | 1,282,223 | |||||||||||||||||||||||||||
Residential mortgage-backed securities ("RMBS") | 820,650 | (1,034) | 35,655 | (774) | 854,497 | |||||||||||||||||||||||||||
Commercial mortgage-backed securities ("CMBS") | 632,882 | (14) | 39,420 | (865) | 671,423 | |||||||||||||||||||||||||||
Total AFS fixed income securities | $ | 6,311,749 | (6,011) | 327,387 | (6,725) | 6,626,400 |
March 31, 2022 | ||||||||||||||||||||||||||||||||
($ in thousands) | Cost/ Amortized Cost | Allowance for Credit Losses | Unrealized Gains | Unrealized Losses | Fair Value | |||||||||||||||||||||||||||
AFS fixed income securities: | ||||||||||||||||||||||||||||||||
U.S. government and government agencies | $ | 131,986 | — | 490 | (5,383) | 127,093 | ||||||||||||||||||||||||||
Foreign government | 17,160 | (150) | 145 | (452) | 16,703 | |||||||||||||||||||||||||||
Obligations of states and political subdivisions | 1,122,132 | (1,991) | 15,329 | (10,039) | 1,125,431 | |||||||||||||||||||||||||||
Corporate securities | 2,445,468 | (23,066) | 25,658 | (60,320) | 2,387,740 | |||||||||||||||||||||||||||
Collateralized loan obligations ("CLO") and other asset-backed securities ("ABS") | 1,444,224 | (2,283) | 7,974 | (32,701) | 1,417,214 | |||||||||||||||||||||||||||
Residential mortgage-backed securities ("RMBS") | 903,800 | (10,029) | 6,779 | (22,591) | 877,959 | |||||||||||||||||||||||||||
Commercial mortgage-backed securities ("CMBS") | 653,137 | (80) | 5,618 | (11,993) | 646,682 | |||||||||||||||||||||||||||
Total AFS fixed income securities | $ | 6,717,907 | (37,599) | 61,993 | (143,479) | 6,598,822 |
December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2021 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | Cost/ Amortized Cost | Allowance for Credit Losses | Unrealized Gains | Unrealized Losses | Fair Value | ($ in thousands) | Cost/ Amortized Cost | Allowance for Credit Losses | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||||||||||||||||||||||||||||||||||||||||||
AFS fixed income securities: | AFS fixed income securities: | AFS fixed income securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government and government agencies | U.S. government and government agencies | $ | 110,038 | 0 | 6,239 | (137) | 116,140 | U.S. government and government agencies | $ | 127,974 | — | 3,629 | (1,145) | 130,458 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign government | Foreign government | 16,801 | (1) | 1,569 | (3) | 18,366 | Foreign government | 15,420 | (46) | 609 | (123) | 15,860 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | Obligations of states and political subdivisions | 1,159,588 | (4) | 87,564 | (11) | 1,247,137 | Obligations of states and political subdivisions | 1,121,422 | (137) | 68,258 | (235) | 1,189,308 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate securities | Corporate securities | 2,152,203 | (2,782) | 180,971 | (2,340) | 2,328,052 | Corporate securities | 2,478,348 | (6,682) | 106,890 | (4,953) | 2,573,603 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
CLO and other ABS | CLO and other ABS | 1,014,820 | (592) | 20,166 | (7,843) | 1,026,551 | CLO and other ABS | 1,343,687 | (939) | 14,350 | (6,284) | 1,350,814 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
RMBS | RMBS | 999,485 | (561) | 53,065 | (201) | 1,051,788 | RMBS | 756,280 | (1,909) | 24,813 | (2,932) | 776,252 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
CMBS | CMBS | 620,582 | (29) | 48,348 | (1,007) | 667,894 | CMBS | 647,622 | (11) | 27,752 | (1,682) | 673,681 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total AFS fixed income securities | Total AFS fixed income securities | $ | 6,073,517 | (3,969) | 397,922 | (11,542) | 6,455,928 | Total AFS fixed income securities | $ | 6,490,753 | (9,724) | 246,301 | (17,354) | 6,709,976 |
Quarter ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||
($ in thousands) | Beginning Balance | Current Provision for Securities without Prior Allowance | Increase (Decrease) on Securities with Prior Allowance, excluding intent (or Requirement) to Sell Securities | Reductions for Securities Sold | Reductions for Securities Identified as Intent (or Requirement) to Sell during the Period | Ending Balance | ||||||||||||||||||||||||||||||||
Foreign government | $ | 56 | 0 | (7) | 0 | 0 | 49 | |||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | 201 | 0 | (163) | 0 | 0 | 38 | ||||||||||||||||||||||||||||||||
Corporate securities | 6,166 | 148 | (2,403) | (373) | (61) | 3,477 | ||||||||||||||||||||||||||||||||
CLO and other ABS | 1,470 | 0 | (70) | (1) | 0 | 1,399 | ||||||||||||||||||||||||||||||||
RMBS | 864 | 3 | 230 | (63) | 0 | 1,034 | ||||||||||||||||||||||||||||||||
CMBS | 24 | 4 | (14) | 0 | 0 | 14 | ||||||||||||||||||||||||||||||||
Total AFS fixed income securities | $ | 8,781 | 155 | (2,427) | (437) | (61) | 6,011 |
Quarter ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||||
($ in thousands) | Beginning Balance | Current Provision for Securities without Prior Allowance | Increase (Decrease) on Securities with Prior Allowance, excluding intent (or Requirement) to Sell Securities | Reductions for Securities Sold | Reductions for Securities Identified as Intent (or Requirement) to Sell during the Period | Ending Balance | ||||||||||||||||||||||||||||||||
Foreign government | $ | 21 | 0 | 7 | 0 | 0 | 28 | |||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | 29 | 15 | (27) | 0 | 0 | 17 | ||||||||||||||||||||||||||||||||
Corporate securities | 13,412 | 813 | (5,686) | (395) | (67) | 8,077 | ||||||||||||||||||||||||||||||||
CLO and other ABS | 1,565 | 27 | (145) | (58) | 0 | 1,389 | ||||||||||||||||||||||||||||||||
RMBS | 722 | 0 | 124 | (15) | 0 | 831 | ||||||||||||||||||||||||||||||||
CMBS | 38 | 8 | 7 | 0 | 0 | 53 | ||||||||||||||||||||||||||||||||
Total AFS fixed income securities | $ | 15,787 | 863 | (5,720) | (468) | (67) | 10,395 |
Six Months ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||
($ in thousands) | Beginning Balance | Current Provision for Securities without Prior Allowance | Increase (Decrease) on Securities with Prior Allowance, excluding intent (or Requirement) to Sell Securities | Reductions for Securities Sold | Reductions for Securities Identified as Intent (or Requirement) to Sell during the Period | Ending Balance | ||||||||||||||||||||||||||||||||
Foreign government | $ | 1 | 49 | (1) | 0 | 0 | 49 | |||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | 4 | 25 | 9 | 0 | 0 | 38 | ||||||||||||||||||||||||||||||||
Corporate securities | 2,782 | 2,185 | (909) | (520) | (61) | 3,477 | ||||||||||||||||||||||||||||||||
CLO and other ABS | 592 | 941 | (116) | (18) | 0 | 1,399 | ||||||||||||||||||||||||||||||||
RMBS | 561 | 618 | (68) | (77) | 0 | 1,034 | ||||||||||||||||||||||||||||||||
CMBS | 29 | 2 | (17) | 0 | 0 | 14 | ||||||||||||||||||||||||||||||||
Total AFS fixed income securities | $ | 3,969 | 3,820 | (1,102) | (615) | (61) | 6,011 |
Quarter ended March 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | Beginning Balance | Current Provision for Securities without Prior Allowance | Initial Allowance for Purchased Credit Deteriorated Assets with Credit Deterioration | Increase (Decrease) on Securities with Prior Allowance, excluding intent (or Requirement) to Sell Securities | Reductions for Securities Sold | Reductions for Securities Identified as Intent (or Requirement) to Sell during the Period | Ending Balance | |||||||||||||||||||||||||||||||||||||
Foreign government | $ | 46 | 103 | — | 1 | — | — | 150 | ||||||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | 137 | 1,732 | — | 132 | (10) | — | 1,991 | |||||||||||||||||||||||||||||||||||||
Corporate securities | 6,682 | 15,393 | — | 3,337 | (1,247) | (1,099) | 23,066 | |||||||||||||||||||||||||||||||||||||
CLO and other ABS | 939 | 1,288 | — | 59 | (3) | — | 2,283 | |||||||||||||||||||||||||||||||||||||
RMBS | 1,909 | — | 8,318 | (63) | (135) | — | 10,029 | |||||||||||||||||||||||||||||||||||||
CMBS | 11 | 72 | — | (3) | — | — | 80 | |||||||||||||||||||||||||||||||||||||
Total AFS fixed income securities | $ | 9,724 | 18,588 | 8,318 | 3,463 | (1,395) | (1,099) | 37,599 |
Six Months ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarter ended March 31, 2021 | Quarter ended March 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | Beginning Balance | Current Provision for Securities without Prior Allowance | Increase (Decrease) on Securities with Prior Allowance, excluding intent (or Requirement) to Sell Securities | Reductions for Securities Sold | Reductions for Securities Identified as Intent (or Requirement) to Sell during the Period | Ending Balance | ($ in thousands) | Beginning Balance | Current Provision for Securities without Prior Allowance | Increase (Decrease) on Securities with Prior Allowance, excluding intent (or Requirement) to Sell Securities | Reductions for Securities Sold | Reductions for Securities Identified as Intent (or Requirement) to Sell during the Period | Ending Balance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign government | Foreign government | $ | 0 | 28 | 0 | 0 | 0 | 28 | Foreign government | $ | 1 | 56 | (1) | — | — | 56 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | Obligations of states and political subdivisions | 0 | 17 | 0 | 0 | 0 | 17 | Obligations of states and political subdivisions | 4 | 186 | 11 | — | — | 201 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate securities | Corporate securities | 0 | 8,539 | 0 | (395) | (67) | 8,077 | Corporate securities | 2,782 | 4,058 | (527) | (147) | — | 6,166 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CLO and other ABS | CLO and other ABS | 0 | 1,447 | 0 | (58) | 0 | 1,389 | CLO and other ABS | 592 | 1,001 | (106) | (17) | — | 1,470 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RMBS | RMBS | 0 | 846 | 0 | (15) | 0 | 831 | RMBS | 561 | 356 | (39) | (14) | — | 864 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CMBS | CMBS | 0 | 53 | 0 | 0 | 0 | 53 | CMBS | 29 | 10 | (15) | — | — | 24 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total AFS fixed income securities | Total AFS fixed income securities | $ | 0 | 10,930 | 0 | (468) | (67) | 10,395 | Total AFS fixed income securities | $ | 3,969 | 5,667 | (677) | (178) | — | 8,781 |
June 30, 2021 | Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2022 | March 31, 2022 | Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ($ in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AFS fixed income securities: | AFS fixed income securities: | AFS fixed income securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government and government agencies | U.S. government and government agencies | $ | 17,582 | (631) | 0 | 0 | 17,582 | (631) | U.S. government and government agencies | $ | 89,044 | (4,410) | 5,252 | (973) | 94,296 | (5,383) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign government | Foreign government | 3,122 | (73) | 0 | 0 | 3,122 | (73) | Foreign government | 5,394 | (268) | 1,996 | (184) | 7,390 | (452) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | Obligations of states and political subdivisions | 7,222 | (103) | 0 | 0 | 7,222 | (103) | Obligations of states and political subdivisions | 223,497 | (9,846) | 2,834 | (193) | 226,331 | (10,039) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate securities | Corporate securities | 84,676 | (880) | 6,163 | (675) | 90,839 | (1,555) | Corporate securities | 1,002,980 | (59,605) | 6,823 | (715) | 1,009,803 | (60,320) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CLO and other ABS | CLO and other ABS | 415,284 | (1,699) | 71,126 | (1,025) | 486,410 | (2,724) | CLO and other ABS | 937,362 | (28,658) | 101,722 | (4,043) | 1,039,084 | (32,701) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RMBS | RMBS | 84,141 | (774) | 0 | 0 | 84,141 | (774) | RMBS | 545,934 | (21,444) | 13,731 | (1,147) | 559,665 | (22,591) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CMBS | CMBS | 54,258 | (704) | 14,511 | (161) | 68,769 | (865) | CMBS | 337,995 | (9,807) | 23,123 | (2,186) | 361,118 | (11,993) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total AFS fixed income securities | Total AFS fixed income securities | $ | 666,285 | (4,864) | 91,800 | (1,861) | 758,085 | (6,725) | Total AFS fixed income securities | $ | 3,142,206 | (134,038) | 155,481 | (9,441) | 3,297,687 | (143,479) |
December 31, 2020 | Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2021 | December 31, 2021 | Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ($ in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AFS fixed income securities: | AFS fixed income securities: | AFS fixed income securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government and government agencies | U.S. government and government agencies | $ | 11,519 | (137) | 0 | 0 | 11,519 | (137) | U.S. government and government agencies | $ | 34,857 | (746) | 7,827 | (399) | 42,684 | (1,145) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign government | Foreign government | 1,122 | (3) | 0 | 0 | 1,122 | (3) | Foreign government | 2,000 | (84) | 1,061 | (39) | 3,061 | (123) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | Obligations of states and political subdivisions | 2,223 | (11) | 0 | 0 | 2,223 | (11) | Obligations of states and political subdivisions | 25,837 | (235) | — | — | 25,837 | (235) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate securities | Corporate securities | 65,187 | (2,152) | 2,400 | (188) | 67,587 | (2,340) | Corporate securities | 300,549 | (4,903) | 2,520 | (50) | 303,069 | (4,953) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CLO and other ABS | CLO and other ABS | 261,746 | (2,995) | 165,661 | (4,848) | 427,407 | (7,843) | CLO and other ABS | 663,976 | (4,934) | 53,368 | (1,350) | 717,344 | (6,284) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RMBS | RMBS | 18,227 | (194) | 1,181 | (7) | 19,408 | (201) | RMBS | 236,010 | (2,931) | 20 | (1) | 236,030 | (2,932) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CMBS | CMBS | 55,482 | (616) | 16,093 | (391) | 71,575 | (1,007) | CMBS | 112,899 | (1,016) | 20,326 | (666) | 133,225 | (1,682) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total AFS fixed income securities | Total AFS fixed income securities | $ | 415,506 | (6,108) | 185,335 | (5,434) | 600,841 | (11,542) | Total AFS fixed income securities | $ | 1,376,128 | (14,849) | 85,122 | (2,505) | 1,461,250 | (17,354) |
AFS | HTM | |||||||||||||||||||
($ in thousands) | Fair Value | Carrying Value | Fair Value | |||||||||||||||||
Due in one year or less | $ | 537,130 | 1,032 | 1,033 | ||||||||||||||||
Due after one year through five years | 3,365,039 | 14,971 | 15,808 | |||||||||||||||||
Due after five years through 10 years | 2,109,060 | 10,953 | 11,041 | |||||||||||||||||
Due after 10 years | 615,171 | 0 | 0 | |||||||||||||||||
Total fixed income securities | $ | 6,626,400 | 26,956 | 27,882 |
AFS | HTM | |||||||||||||||||||
($ in thousands) | Fair Value | Carrying Value | Fair Value | |||||||||||||||||
Due in one year or less | $ | 396,074 | 6,727 | 6,899 | ||||||||||||||||
Due after one year through five years | 2,915,421 | 5,977 | 6,012 | |||||||||||||||||
Due after five years through 10 years | 2,425,811 | 20,331 | 19,714 | |||||||||||||||||
Due after 10 years | 861,516 | — | — | |||||||||||||||||
Total fixed income securities | $ | 6,598,822 | 33,035 | 32,625 |
Other Investments | June 30, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||||||||
($ in thousands) | Carrying Value | Remaining Commitment | Maximum Exposure to Loss1 | Carrying Value | Remaining Commitment | Maximum Exposure to Loss1 | ||||||||||||||||||||||||||||||||
Alternative Investments | ||||||||||||||||||||||||||||||||||||||
Private equity | $ | 218,385 | 110,998 | 329,383 | 157,276 | 100,905 | 258,181 | |||||||||||||||||||||||||||||||
Private credit | 58,674 | 96,132 | 154,806 | 54,017 | 98,330 | 152,347 | ||||||||||||||||||||||||||||||||
Real assets | 19,970 | 15,773 | 35,743 | 19,659 | 16,493 | 36,152 | ||||||||||||||||||||||||||||||||
Total alternative investments | 297,029 | 222,903 | 519,932 | 230,952 | 215,728 | 446,680 | ||||||||||||||||||||||||||||||||
Other securities | 33,450 | 0 | 33,450 | 35,370 | 0 | 35,370 | ||||||||||||||||||||||||||||||||
Total other investments | $ | 330,479 | 222,903 | 553,382 | 266,322 | 215,728 | 482,050 |
Other Investments | March 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||||
($ in thousands) | Carrying Value | Remaining Commitment | Maximum Exposure to Loss1 | Carrying Value | Remaining Commitment | Maximum Exposure to Loss1 | ||||||||||||||||||||||||||||||||
Alternative Investments | ||||||||||||||||||||||||||||||||||||||
Private equity | $ | 281,352 | 124,761 | 406,113 | 273,070 | 99,734 | 372,804 | |||||||||||||||||||||||||||||||
Private credit | 60,476 | 92,279 | 152,755 | 63,138 | 92,674 | 155,812 | ||||||||||||||||||||||||||||||||
Real assets | 26,159 | 20,914 | 47,073 | 23,524 | 22,579 | 46,103 | ||||||||||||||||||||||||||||||||
Total alternative investments | 367,987 | 237,954 | 605,941 | 359,732 | 214,987 | 574,719 | ||||||||||||||||||||||||||||||||
Other securities | 57,679 | — | 57,679 | 49,300 | — | 49,300 | ||||||||||||||||||||||||||||||||
Total other investments | $ | 425,666 | 237,954 | 663,620 | 409,032 | 214,987 | 624,019 |
Income Statement Information | Quarter ended June 30, | Six Months ended June 30, | ||||||||||||||||||||||||
($ in millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Net investment income | $ | 8.4 | (3.1) | $ | 490.0 | 9.6 | ||||||||||||||||||||
Realized gains | 1,392.5 | 179.0 | 2,168.6 | 343.8 | ||||||||||||||||||||||
Net change in unrealized appreciation | 4,948.9 | (2,862.9) | 9,579.7 | (1,658.9) | ||||||||||||||||||||||
Net income | $ | 6,349.8 | (2,687.0) | $ | 12,238.3 | (1,305.5) | ||||||||||||||||||||
Insurance Subsidiaries’ alternative investments income | $ | 29.9 | (16.0) | $ | 50.1 | (9.7) |
Income Statement Information | Quarter ended March 31, | |||||||||||||||||||||||||
($ in millions) | 2022 | 2021 | ||||||||||||||||||||||||
Net investment income | $ | 135.5 | 481.6 | |||||||||||||||||||||||
Realized gains | 2,748.0 | 776.0 | ||||||||||||||||||||||||
Net change in unrealized appreciation | 5,178.2 | 4,630.8 | ||||||||||||||||||||||||
Net income | $ | 8,061.7 | 5,888.4 | |||||||||||||||||||||||
Alternative investment income included in "Net investment income earned" on our Consolidated Statements of Income | $ | 19.1 | 20.2 |
($ in millions) | FHLBI Collateral | FHLBNY Collateral | State and Regulatory Deposits | Total | ||||||||||||||||||||||||||||
U.S. government and government agencies | $ | 0 | 0 | 21.6 | 21.6 | |||||||||||||||||||||||||||
Obligations of states and political subdivisions | 0 | 0 | 5.0 | 5.0 | ||||||||||||||||||||||||||||
RMBS | 78.5 | 48.9 | 0 | 127.4 | ||||||||||||||||||||||||||||
CMBS | 6.7 | 15.6 | 0 | 22.3 | ||||||||||||||||||||||||||||
Total pledged as collateral | $ | 85.2 | 64.5 | 26.6 | 176.3 |
($ in millions) | FHLBI Collateral | FHLBNY Collateral | State and Regulatory Deposits | Total | ||||||||||||||||||||||||||||
U.S. government and government agencies | $ | — | — | 20.3 | 20.3 | |||||||||||||||||||||||||||
Obligations of states and political subdivisions | — | — | 3.8 | 3.8 | ||||||||||||||||||||||||||||
RMBS | 63.1 | 35.9 | — | 99.0 | ||||||||||||||||||||||||||||
CMBS | 5.8 | 12.8 | — | 18.6 | ||||||||||||||||||||||||||||
Total pledged as collateral | $ | 68.9 | 48.7 | 24.1 | 141.7 |
Quarter ended June 30, | Six Months ended June 30, | |||||||||||||||||||||||||
($ in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Fixed income securities | $ | 52,608 | 51,079 | $ | 105,431 | 101,332 | ||||||||||||||||||||
Commercial mortgage loans ("CMLs") | 695 | 156 | 1,209 | 218 | ||||||||||||||||||||||
Equity securities | 2,982 | 2,023 | 5,470 | 3,575 | ||||||||||||||||||||||
Short-term investments | 55 | 420 | 140 | 1,586 | ||||||||||||||||||||||
Other investments | 32,860 | (15,846) | 50,293 | (9,504) | ||||||||||||||||||||||
Investment expenses | (5,469) | (3,388) | (9,096) | (6,796) | ||||||||||||||||||||||
Net investment income earned | $ | 83,731 | 34,444 | $ | 153,447 | 90,411 |
Quarter ended March 31, | ||||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | ||||||||||||||||||||||||
Fixed income securities | $ | 53,925 | 52,823 | |||||||||||||||||||||||
Commercial mortgage loans ("CMLs") | 970 | 514 | ||||||||||||||||||||||||
Equity securities | 2,418 | 2,488 | ||||||||||||||||||||||||
Short-term investments | 101 | 85 | ||||||||||||||||||||||||
Other investments | 19,305 | 17,433 | ||||||||||||||||||||||||
Investment expenses | (4,117) | (3,627) | ||||||||||||||||||||||||
Net investment income earned | $ | 72,602 | 69,716 |
Quarter ended June 30, | Six Months ended June 30, | |||||||||||||||||||||||||
($ in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Gross gains on sales | $ | 2,079 | 6,478 | $ | 5,755 | 12,151 | ||||||||||||||||||||
Gross losses on sales | (1,811) | (3,863) | (6,282) | (5,436) | ||||||||||||||||||||||
Net realized gains (losses) on disposals | 268 | 2,615 | (527) | 6,715 | ||||||||||||||||||||||
Net unrealized gains (losses) on equity securities | 7,661 | 5,701 | 18,941 | (11,436) | ||||||||||||||||||||||
Net credit loss benefit (expense) on fixed income securities, AFS | 2,272 | 4,923 | (2,725) | (10,864) | ||||||||||||||||||||||
Net credit loss (expense) benefit on fixed income securities, HTM | (53) | 1 | (60) | 1 | ||||||||||||||||||||||
Net credit loss benefit (expense) on CMLs | 0 | 22 | 0 | (218) | ||||||||||||||||||||||
Losses on securities for which we have the intent to sell | (91) | (613) | (453) | (16,215) | ||||||||||||||||||||||
Net realized and unrealized gains (losses) | $ | 10,057 | 12,649 | $ | 15,176 | (32,017) |
Quarter ended March 31, | ||||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | ||||||||||||||||||||||||
Gross gains on sales | $ | 2,197 | 3,676 | |||||||||||||||||||||||
Gross losses on sales | (13,560) | (4,471) | ||||||||||||||||||||||||
Net realized losses on disposals | (11,363) | (795) | ||||||||||||||||||||||||
Net unrealized (losses) gains on equity securities | (2,154) | 11,280 | ||||||||||||||||||||||||
Net credit loss expense on fixed income securities, AFS | (22,052) | (4,997) | ||||||||||||||||||||||||
Net credit loss benefit (expense) on fixed income securities, HTM | 14 | (7) | ||||||||||||||||||||||||
Losses on securities for which we have the intent to sell | (4,797) | (362) | ||||||||||||||||||||||||
Net realized and unrealized (losses) gains | $ | (40,352) | 5,119 |
Quarter ended June 30, | Six Months ended June 30, | |||||||||||||||||||||||||
($ in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Unrealized gains (losses) recognized in income on equity securities: | ||||||||||||||||||||||||||
On securities remaining in our portfolio at period end | $ | 7,458 | 5,701 | $ | 16,942 | (11,439) | ||||||||||||||||||||
On securities sold during period | 203 | 0 | 1,999 | 3 | ||||||||||||||||||||||
Total unrealized gains (losses) recognized in income on equity securities | $ | 7,661 | 5,701 | $ | 18,941 | (11,436) |
Quarter ended March 31, | ||||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | ||||||||||||||||||||||||
Unrealized (losses) gains recognized in income on equity securities: | ||||||||||||||||||||||||||
On securities remaining in our portfolio at end of period | $ | (2,220) | 10,097 | |||||||||||||||||||||||
On securities sold in period | 66 | 1,183 | ||||||||||||||||||||||||
Total unrealized (losses) gains recognized in income on equity securities | $ | (2,154) | 11,280 |
June 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||
($ in thousands) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||||||||||||
Financial Liabilities | ||||||||||||||||||||||||||
Long-term debt: | ||||||||||||||||||||||||||
7.25% Senior Notes | $ | 49,915 | 64,485 | 49,914 | 66,148 | |||||||||||||||||||||
6.70% Senior Notes | 99,509 | 124,997 | 99,499 | 127,886 | ||||||||||||||||||||||
5.375% Senior Notes | 294,285 | 372,432 | 294,241 | 383,669 | ||||||||||||||||||||||
1.61% borrowings from FHLBNY | 25,000 | 25,026 | 25,000 | 25,182 | ||||||||||||||||||||||
1.56% borrowings from FHLBNY | 25,000 | 25,050 | 25,000 | 25,198 | ||||||||||||||||||||||
3.03% borrowings from FHLBI | 60,000 | 65,549 | 60,000 | 67,513 | ||||||||||||||||||||||
Subtotal long-term debt | 553,709 | 677,539 | 553,654 | 695,596 | ||||||||||||||||||||||
Unamortized debt issuance costs | (3,291) | (3,419) | ||||||||||||||||||||||||
Finance lease obligations | 463 | 508 | ||||||||||||||||||||||||
Total long-term debt | $ | 550,881 | 550,743 |
March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||
($ in thousands) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||||||||||||
Financial Liabilities | ||||||||||||||||||||||||||
Long-term debt: | ||||||||||||||||||||||||||
7.25% Senior Notes | $ | 49,919 | 59,828 | 49,917 | 63,719 | |||||||||||||||||||||
6.70% Senior Notes | 99,525 | 116,980 | 99,520 | 127,574 | ||||||||||||||||||||||
5.375% Senior Notes | 294,353 | 332,644 | 294,330 | 395,652 | ||||||||||||||||||||||
3.03% borrowings from FHLBI | 60,000 | 60,747 | 60,000 | 64,126 | ||||||||||||||||||||||
Subtotal long-term debt | 503,797 | 570,199 | 503,767 | 651,071 | ||||||||||||||||||||||
Unamortized debt issuance costs | (3,106) | (3,167) | ||||||||||||||||||||||||
Finance lease obligations | 4,875 | 5,450 | ||||||||||||||||||||||||
Total long-term debt | $ | 505,566 | 506,050 |
June 30, 2021 | Fair Value Measurements Using | |||||||||||||||||||||||||
($ 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 | ||||||||||||||||||||||||||
Measured on a recurring basis: | ||||||||||||||||||||||||||
AFS fixed income securities: | ||||||||||||||||||||||||||
U.S. government and government agencies | $ | 136,194 | 59,569 | 76,625 | 0 | |||||||||||||||||||||
Foreign government | 15,275 | 0 | 15,275 | 0 | ||||||||||||||||||||||
Obligations of states and political subdivisions | 1,199,901 | 0 | 1,191,919 | 7,982 | ||||||||||||||||||||||
Corporate securities | 2,466,887 | 0 | 2,376,482 | 90,405 | ||||||||||||||||||||||
CLO and other ABS | 1,282,223 | 0 | 1,211,486 | 70,737 | ||||||||||||||||||||||
RMBS | 854,497 | 0 | 854,497 | 0 | ||||||||||||||||||||||
CMBS | 671,423 | 0 | 671,423 | 0 | ||||||||||||||||||||||
Total AFS fixed income securities | 6,626,400 | 59,569 | 6,397,707 | 169,124 | ||||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||
Common stock1 | 346,232 | 260,971 | 0 | 0 | ||||||||||||||||||||||
Preferred stock | 2,110 | 2,110 | 0 | 0 | ||||||||||||||||||||||
Total equity securities | 348,342 | 263,081 | 0 | 0 | ||||||||||||||||||||||
Short-term investments | 351,230 | 351,133 | 97 | 0 | ||||||||||||||||||||||
Total assets measured at fair value | $ | 7,325,972 | 673,783 | 6,397,804 | 169,124 |
March 31, 2022 | Fair Value Measurements Using | |||||||||||||||||||||||||
($ 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 | ||||||||||||||||||||||||||
Measured on a recurring basis: | ||||||||||||||||||||||||||
AFS fixed income securities: | ||||||||||||||||||||||||||
U.S. government and government agencies | $ | 127,093 | 31,671 | 95,422 | — | |||||||||||||||||||||
Foreign government | 16,703 | — | 16,703 | — | ||||||||||||||||||||||
Obligations of states and political subdivisions | 1,125,431 | — | 1,118,186 | 7,245 | ||||||||||||||||||||||
Corporate securities | 2,387,740 | — | 2,264,938 | 122,802 | ||||||||||||||||||||||
CLO and other ABS | 1,417,214 | — | 1,286,296 | 130,918 | ||||||||||||||||||||||
RMBS | 877,959 | — | 877,959 | — | ||||||||||||||||||||||
CMBS | 646,682 | — | 646,243 | 439 | ||||||||||||||||||||||
Total AFS fixed income securities | 6,598,822 | 31,671 | 6,305,747 | 261,404 | ||||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||
Common stock1 | 342,572 | 246,178 | — | — | ||||||||||||||||||||||
Preferred stock | 2,011 | 2,011 | — | — | ||||||||||||||||||||||
Total equity securities | 344,583 | 248,189 | — | — | ||||||||||||||||||||||
Short-term investments | 256,712 | 250,938 | 5,774 | — | ||||||||||||||||||||||
Total assets measured at fair value | $ | 7,200,117 | 530,798 | 6,311,521 | 261,404 |
December 31, 2020 | Fair Value Measurements Using | |||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2021 | December 31, 2021 | Fair Value Measurements Using | ||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ 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) | ($ 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 | Description | ||||||||||||||||||||||||||||||||||||||||||||||||||
Measured on a recurring basis: | Measured on a recurring basis: | Measured on a recurring basis: | ||||||||||||||||||||||||||||||||||||||||||||||||||
AFS fixed income securities: | AFS fixed income securities: | AFS fixed income securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government and government agencies | U.S. government and government agencies | $ | 116,140 | 40,960 | 75,180 | 0 | U.S. government and government agencies | $ | 130,458 | 60,615 | 69,843 | — | ||||||||||||||||||||||||||||||||||||||||
Foreign government | Foreign government | 18,366 | 0 | 18,366 | 0 | Foreign government | 15,860 | — | 15,860 | — | ||||||||||||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | Obligations of states and political subdivisions | 1,247,137 | 0 | 1,244,243 | 2,894 | Obligations of states and political subdivisions | 1,189,308 | — | 1,181,563 | 7,745 | ||||||||||||||||||||||||||||||||||||||||||
Corporate securities | Corporate securities | 2,328,052 | 0 | 2,257,352 | 70,700 | Corporate securities | 2,573,603 | — | 2,459,476 | 114,127 | ||||||||||||||||||||||||||||||||||||||||||
CLO and other ABS | CLO and other ABS | 1,026,551 | 0 | 970,176 | 56,375 | CLO and other ABS | 1,350,814 | — | 1,225,905 | 124,909 | ||||||||||||||||||||||||||||||||||||||||||
RMBS | RMBS | 1,051,788 | 0 | 1,051,788 | 0 | RMBS | 776,252 | — | 776,007 | 245 | ||||||||||||||||||||||||||||||||||||||||||
CMBS | CMBS | 667,894 | 0 | 667,894 | 0 | CMBS | 673,681 | — | 669,425 | 4,256 | ||||||||||||||||||||||||||||||||||||||||||
Total AFS fixed income securities | Total AFS fixed income securities | 6,455,928 | 40,960 | 6,284,999 | 129,969 | Total AFS fixed income securities | 6,709,976 | 60,615 | 6,398,079 | 251,282 | ||||||||||||||||||||||||||||||||||||||||||
Equity securities: | Equity securities: | Equity securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock1 | Common stock1 | 308,632 | 261,846 | 0 | 0 | Common stock1 | 333,449 | 249,846 | — | — | ||||||||||||||||||||||||||||||||||||||||||
Preferred stock | Preferred stock | 1,735 | 1,735 | 0 | 0 | Preferred stock | 2,088 | 2,088 | — | — | ||||||||||||||||||||||||||||||||||||||||||
Total equity securities | Total equity securities | 310,367 | 263,581 | 0 | 0 | Total equity securities | 335,537 | 251,934 | — | — | ||||||||||||||||||||||||||||||||||||||||||
Short-term investments | Short-term investments | 409,852 | 405,400 | 4,452 | 0 | Short-term investments | 447,863 | 442,723 | 5,140 | — | ||||||||||||||||||||||||||||||||||||||||||
Total assets measured at fair value | Total assets measured at fair value | $ | 7,176,147 | 709,941 | 6,289,451 | 129,969 | Total assets measured at fair value | $ | 7,493,376 | 755,272 | 6,403,219 | 251,282 |
June 30, 2021 | |||||||||||||||||||||||||||||
($ in thousands) | Obligations of States and Political Subdivisions | Corporate Securities | CLO and Other ABS | Total | |||||||||||||||||||||||||
Fair value, December 31, 2020 | $ | 2,894 | 70,700 | 56,375 | 129,969 | ||||||||||||||||||||||||
Total net (losses) gains for the period included in: | |||||||||||||||||||||||||||||
OCI | (13) | 1,899 | 396 | 2,282 | |||||||||||||||||||||||||
Net realized and unrealized (losses) gains | 0 | 11 | (82) | (71) | |||||||||||||||||||||||||
Net investment income earned | 0 | 13 | 6 | 19 | |||||||||||||||||||||||||
Purchases | 0 | 25,403 | 17,639 | 43,042 | |||||||||||||||||||||||||
Sales | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||
Issuances | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||
Settlements | 0 | (167) | (1,429) | (1,596) | |||||||||||||||||||||||||
Transfers into Level 3 | 5,101 | 0 | 3,226 | 8,327 | |||||||||||||||||||||||||
Transfers out of Level 3 | 0 | (7,454) | (5,394) | (12,848) | |||||||||||||||||||||||||
Fair value, June 30, 2021 | $ | 7,982 | 90,405 | 70,737 | 169,124 | ||||||||||||||||||||||||
Change in unrealized (losses) gains for the period included in earnings for assets held at period end | 0 | 11 | (82) | (71) | |||||||||||||||||||||||||
Change in unrealized gains (losses) for the period included in OCI for assets held at period end | (13) | 1,899 | 396 | 2,282 |
June 30, 2020 | |||||||||||||||||||||||
($ in thousands) | Obligation of state 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 | (111) | (1,770) | (367) | (2,248) | |||||||||||||||||||
Net realized and unrealized (losses) gains | 0 | (384) | (349) | (733) | |||||||||||||||||||
Net investment income earned | 0 | 0 | 1 | 1 | |||||||||||||||||||
Purchases | 0 | 3,002 | 9,690 | 12,692 | |||||||||||||||||||
Sales | 0 | 0 | 0 | 0 | |||||||||||||||||||
Issuances | 0 | 0 | 0 | 0 | |||||||||||||||||||
Settlements | 0 | (138) | (1,032) | (1,170) | |||||||||||||||||||
Transfers into Level 3 | 2,890 | 4,592 | 20,107 | 27,589 | |||||||||||||||||||
Transfers out of Level 3 | 0 | 0 | (9,924) | (9,924) | |||||||||||||||||||
Fair value, June 30, 2020 | $ | 2,779 | 22,353 | 35,160 | 60,292 | ||||||||||||||||||
Change in unrealized gains (losses) for the period included in earnings for assets held at period end | 0 | (384) | (349) | (733) | |||||||||||||||||||
Change in unrealized gains (losses) for the period included in OCI for assets held at period end | (111) | (1,770) | (367) | (2,248) |
Quarter ended March 31, 2022 | |||||||||||||||||||||||||||||||||||||||||
($ in thousands) | Obligations of States and Political Subdivisions | Corporate Securities | CLO and Other ABS | RMBS | CMBS | Total | |||||||||||||||||||||||||||||||||||
Fair value, December 31, 2021 | $ | 7,745 | 114,127 | 124,909 | 245 | 4,256 | 251,282 | ||||||||||||||||||||||||||||||||||
Total net (losses) gains for the period included in: | |||||||||||||||||||||||||||||||||||||||||
OCI | (343) | (6,529) | (4,335) | (17) | (415) | (11,639) | |||||||||||||||||||||||||||||||||||
Net realized and unrealized (losses) gains | (157) | (1,809) | (472) | — | (7) | (2,445) | |||||||||||||||||||||||||||||||||||
Net investment income earned | — | 4 | 15 | — | 47 | 66 | |||||||||||||||||||||||||||||||||||
Purchases | — | 2,964 | 27,033 | — | — | 29,997 | |||||||||||||||||||||||||||||||||||
Sales | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Issuances | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Settlements | — | (69) | (136) | (11) | (11) | (227) | |||||||||||||||||||||||||||||||||||
Transfers into Level 3 | — | 17,055 | — | — | — | 17,055 | |||||||||||||||||||||||||||||||||||
Transfers out of Level 3 | — | (2,941) | (16,096) | (217) | (3,431) | (22,685) | |||||||||||||||||||||||||||||||||||
Fair value, March 31, 2022 | $ | 7,245 | 122,802 | 130,918 | — | 439 | 261,404 | ||||||||||||||||||||||||||||||||||
Change in unrealized losses for the period included in earnings for assets held at period end | (157) | (1,809) | (472) | — | (7) | (2,445) | |||||||||||||||||||||||||||||||||||
Change in unrealized gains for the period included in OCI for assets held at period end | (343) | (6,529) | (4,335) | (17) | (415) | (11,639) |
Quarter ended March 31, 2021 | |||||||||||||||||||||||||||||||||||
($ in thousands) | Obligation of state and Political Subdivisions | Corporate Securities | CLO and Other ABS | Total | |||||||||||||||||||||||||||||||
Fair value, December 31, 2020 | $ | 2,894 | 70,700 | 56,375 | 129,969 | ||||||||||||||||||||||||||||||
Total net (losses) gains for the period included in: | |||||||||||||||||||||||||||||||||||
OCI | (99) | (2,388) | (1,116) | (3,603) | |||||||||||||||||||||||||||||||
Net realized and unrealized (losses) gains | — | (91) | (143) | (234) | |||||||||||||||||||||||||||||||
Net investment income earned | — | 1 | 3 | 4 | |||||||||||||||||||||||||||||||
Purchases | — | 21,100 | 10,672 | 31,772 | |||||||||||||||||||||||||||||||
Sales | — | — | — | — | |||||||||||||||||||||||||||||||
Issuances | — | — | — | — | |||||||||||||||||||||||||||||||
Settlements | — | — | (412) | (412) | |||||||||||||||||||||||||||||||
Transfers into Level 3 | 5,101 | — | — | 5,101 | |||||||||||||||||||||||||||||||
Transfers out of Level 3 | — | — | (490) | (490) | |||||||||||||||||||||||||||||||
Fair value, March 31, 2021 | $ | 7,896 | 89,322 | 64,889 | 162,107 | ||||||||||||||||||||||||||||||
Change in unrealized (losses) gains for the period included in earnings for assets held at period end | — | (91) | (143) | (234) | |||||||||||||||||||||||||||||||
Change in unrealized gains (losses) for the period included in OCI for assets held at period end | (99) | (2,388) | (1,116) | (3,603) |
March 31, 2022 | ||||||||||||||||||||||||||
($ in thousands) | Assets Measured at Fair Value | Valuation Techniques | Unobservable Inputs | Range (Weighted Average) | ||||||||||||||||||||||
Internal valuations: | ||||||||||||||||||||||||||
Corporate securities | $ | 56,510 | Discounted Cash Flow | Illiquidity Spread | (4.4)% - 5.3% (1.1)% | |||||||||||||||||||||
CLO and other ABS | 46,816 | Discounted Cash Flow | Illiquidity Spread | 0.01% - 8.0% (1.9)% | ||||||||||||||||||||||
Total internal valuations | 103,326 | |||||||||||||||||||||||||
Other1 | 158,078 | |||||||||||||||||||||||||
Total Level 3 securities | $ | 261,404 |
December 31, 2021 | ||||||||||||||||||||||||||
($ in thousands) | Assets Measured at Fair Value | Valuation Techniques | Unobservable Inputs | Range (Weighted Average) | ||||||||||||||||||||||
Internal valuations: | ||||||||||||||||||||||||||
Corporate securities | $ | 54,135 | Discounted Cash Flow | Illiquidity Spread | 0.3% - 3.0% (1.2)% | |||||||||||||||||||||
CLO and other ABS | 34,903 | Discounted Cash Flow | Illiquidity Spread | 0.7% - 8.0% (2.1)% | ||||||||||||||||||||||
Total internal valuations | 89,038 | |||||||||||||||||||||||||
Other1 | 162,244 | |||||||||||||||||||||||||
Total Level 3 securities | $ | 251,282 |
June 30, 2021 | 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 | $ | 4,665 | 0 | 4,665 | 0 | |||||||||||||||||||||
Corporate securities | 23,217 | 0 | 23,217 | 0 | ||||||||||||||||||||||
Total HTM fixed income securities | $ | 27,882 | 0 | 27,882 | 0 | |||||||||||||||||||||
CMLs | $ | 73,559 | 0 | 0 | 73,559 | |||||||||||||||||||||
Financial Liabilities | ||||||||||||||||||||||||||
Long-term debt: | ||||||||||||||||||||||||||
7.25% Senior Notes | $ | 64,485 | 0 | 64,485 | 0 | |||||||||||||||||||||
6.70% Senior Notes | 124,997 | 0 | 124,997 | 0 | ||||||||||||||||||||||
5.375% Senior Notes | 372,432 | 0 | 372,432 | 0 | ||||||||||||||||||||||
1.61% borrowings from FHLBNY | 25,026 | 0 | 25,026 | 0 | ||||||||||||||||||||||
1.56% borrowings from FHLBNY | 25,050 | 0 | 25,050 | 0 | ||||||||||||||||||||||
3.03% borrowings from FHLBI | 65,549 | 0 | 65,549 | 0 | ||||||||||||||||||||||
Total long-term debt | $ | 677,539 | 0 | 677,539 | 0 |
March 31, 2022 | 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 | $ | 3,502 | — | 3,502 | — | |||||||||||||||||||||
Corporate securities | 29,123 | — | 29,123 | — | ||||||||||||||||||||||
Total HTM fixed income securities | $ | 32,625 | — | 32,625 | — | |||||||||||||||||||||
CMLs | $ | 113,106 | — | — | 113,106 | |||||||||||||||||||||
Financial Liabilities | ||||||||||||||||||||||||||
Long-term debt: | ||||||||||||||||||||||||||
7.25% Senior Notes | $ | 59,828 | — | 59,828 | — | |||||||||||||||||||||
6.70% Senior Notes | 116,980 | — | 116,980 | — | ||||||||||||||||||||||
5.375% Senior Notes | 332,644 | — | 332,644 | — | ||||||||||||||||||||||
3.03% borrowings from FHLBI | 60,747 | — | 60,747 | — | ||||||||||||||||||||||
Total long-term debt | $ | 570,199 | — | 570,199 | — |
December 31, 2021 | 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 | $ | 3,576 | — | 3,576 | — | |||||||||||||||||||||
Corporate securities | 25,884 | — | 25,884 | — | ||||||||||||||||||||||
Total HTM fixed income securities | $ | 29,460 | — | 29,460 | — | |||||||||||||||||||||
CMLs | $ | 97,598 | — | — | 97,598 | |||||||||||||||||||||
Financial Liabilities | ||||||||||||||||||||||||||
Long-term debt: | ||||||||||||||||||||||||||
7.25% Senior Notes | $ | 63,719 | — | 63,719 | — | |||||||||||||||||||||
6.70% Senior Notes | 127,574 | — | 127,574 | — | ||||||||||||||||||||||
5.375% Senior Notes | 395,652 | — | 395,652 | — | ||||||||||||||||||||||
3.03% borrowings from FHLBI | 64,126 | — | 64,126 | — | ||||||||||||||||||||||
Total long-term debt | $ | 651,071 | — | 651,071 | — |
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 |
Quarter ended June 30, | Six Months ended June 30, | |||||||||||||||||||||||||
($ in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Balance at beginning of period | $ | 21,000 | $ | 18,000 | $ | 21,000 | $ | 6,400 | ||||||||||||||||||
Cumulative effect adjustment1 | 0 | 0 | 0 | 1,058 | ||||||||||||||||||||||
Balance at beginning of period, as adjusted | $ | 21,000 | $ | 18,000 | $ | 21,000 | $ | 7,458 | ||||||||||||||||||
Current period provision for expected credit losses | 733 | 4,597 | 1,541 | 15,792 | ||||||||||||||||||||||
Write-offs charged against the allowance for credit losses | (3,526) | (1,597) | (4,400) | (2,250) | ||||||||||||||||||||||
Recoveries | 93 | 0 | 159 | 0 | ||||||||||||||||||||||
Allowance for credit losses, end of period | $ | 18,300 | $ | 21,000 | $ | 18,300 | $ | 21,000 |
Quarter ended March 31, | ||||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | ||||||||||||||||||||||||
Balance at beginning of period | $ | 13,600 | $ | 21,000 | ||||||||||||||||||||||
Current period change for expected credit losses | 916 | 808 | ||||||||||||||||||||||||
Write-offs charged against the allowance for credit losses | (520) | (874) | ||||||||||||||||||||||||
Recoveries | 304 | 66 | ||||||||||||||||||||||||
Allowance for credit losses, end of period | $ | 14,300 | $ | 21,000 |
June 30, 2021 | ||||||||||||||||||||
($ in thousands) | Current | Past Due | Total Reinsurance Recoverables | |||||||||||||||||
Financial strength rating of rated reinsurers | ||||||||||||||||||||
A++ | $ | 40,382 | $ | 14 | $ | 40,396 | ||||||||||||||
A+ | 357,328 | 2,554 | 359,882 | |||||||||||||||||
A | 105,600 | 87 | 105,687 | |||||||||||||||||
A- | 2,054 | 0 | 2,054 | |||||||||||||||||
B++ | 135 | 244 | 379 | |||||||||||||||||
B+ | 0 | 0 | 0 | |||||||||||||||||
Total rated reinsurers | $ | 505,499 | $ | 2,899 | $ | 508,398 | ||||||||||||||
Non-rated reinsurers | ||||||||||||||||||||
Federal and state pools | $ | 86,512 | $ | 0 | $ | 86,512 | ||||||||||||||
Other than federal and state pools | 3,474 | 274 | 3,748 | |||||||||||||||||
Total non-rated reinsurers | $ | 89,986 | $ | 274 | $ | 90,260 | ||||||||||||||
Total reinsurance recoverable, gross | $ | 595,485 | $ | 3,173 | $ | 598,658 | ||||||||||||||
Less: allowance for credit losses1 | (1,777) | |||||||||||||||||||
Total reinsurance recoverable, net | $ | 596,881 |
December 31, 2020 | March 31, 2022 | |||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | Current | Past Due | Total Reinsurance Recoverables | ($ in thousands) | Current | Past Due | Total Reinsurance Recoverables | ||||||||||||||||||||||||||||||||
Financial strength rating of rated reinsurers | Financial strength rating of rated reinsurers | Financial strength rating of rated reinsurers | ||||||||||||||||||||||||||||||||||||||
A++ | A++ | $ | 37,464 | $ | 102 | $ | 37,566 | A++ | $ | 42,025 | $ | (3) | $ | 42,022 | ||||||||||||||||||||||||||
A+ | A+ | 354,846 | 2,452 | 357,298 | A+ | 349,963 | 735 | 350,698 | ||||||||||||||||||||||||||||||||
A | A | 105,652 | 415 | 106,067 | A | 97,115 | 926 | 98,041 | ||||||||||||||||||||||||||||||||
A- | A- | 2,139 | 0 | 2,139 | A- | 3,230 | 79 | 3,309 | ||||||||||||||||||||||||||||||||
B++ | B++ | 56 | 324 | 380 | B++ | — | — | — | ||||||||||||||||||||||||||||||||
B+ | B+ | 0 | 0 | 0 | B+ | — | — | — | ||||||||||||||||||||||||||||||||
Total rated reinsurers | Total rated reinsurers | $ | 500,157 | $ | 3,293 | $ | 503,450 | Total rated reinsurers | $ | 492,333 | $ | 1,737 | $ | 494,070 | ||||||||||||||||||||||||||
Non-rated reinsurers | Non-rated reinsurers | Non-rated reinsurers | ||||||||||||||||||||||||||||||||||||||
Federal and state pools | Federal and state pools | $ | 82,575 | $ | 0 | $ | 82,575 | Federal and state pools | $ | 79,980 | $ | — | $ | 79,980 | ||||||||||||||||||||||||||
Other than federal and state pools | Other than federal and state pools | 2,676 | 568 | 3,244 | Other than federal and state pools | 4,744 | 165 | 4,909 | ||||||||||||||||||||||||||||||||
Total non-rated reinsurers | Total non-rated reinsurers | $ | 85,251 | $ | 568 | $ | 85,819 | Total non-rated reinsurers | $ | 84,724 | $ | 165 | $ | 84,889 | ||||||||||||||||||||||||||
Total reinsurance recoverable, gross | Total reinsurance recoverable, gross | $ | 585,408 | $ | 3,861 | $ | 589,269 | Total reinsurance recoverable, gross | $ | 577,057 | $ | 1,902 | $ | 578,959 | ||||||||||||||||||||||||||
Less: allowance for credit losses1 | (1,777) | |||||||||||||||||||||||||||||||||||||||
Less: allowance for credit losses | Less: allowance for credit losses | (1,600) | ||||||||||||||||||||||||||||||||||||||
Total reinsurance recoverable, net | Total reinsurance recoverable, net | $ | 587,492 | Total reinsurance recoverable, net | $ | 577,359 |
December 31, 2021 | ||||||||||||||||||||
($ in thousands) | Current | Past Due | Total Reinsurance Recoverables | |||||||||||||||||
Financial strength rating of rated reinsurers | ||||||||||||||||||||
A++ | $ | 38,601 | $ | 9 | $ | 38,610 | ||||||||||||||
A+ | 339,857 | 1,520 | 341,377 | |||||||||||||||||
A | 95,675 | 1,227 | 96,902 | |||||||||||||||||
A- | 3,209 | 145 | 3,354 | |||||||||||||||||
B++ | — | — | — | |||||||||||||||||
B+ | — | — | — | |||||||||||||||||
Total rated reinsurers | $ | 477,342 | $ | 2,901 | $ | 480,243 | ||||||||||||||
Non-rated reinsurers | ||||||||||||||||||||
Federal and state pools | $ | 116,378 | $ | — | $ | 116,378 | ||||||||||||||
Other than federal and state pools | 4,597 | 450 | 5,047 | |||||||||||||||||
Total non-rated reinsurers | $ | 120,975 | $ | 450 | $ | 121,425 | ||||||||||||||
Total reinsurance recoverable, gross | $ | 598,317 | $ | 3,351 | $ | 601,668 | ||||||||||||||
Less: allowance for credit losses | (1,600) | |||||||||||||||||||
Total reinsurance recoverable, net | $ | 600,068 |
($ in thousands) | Quarter ended March 31, | |||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||||
Balance at beginning of period | $ | 1,600 | 1,777 | |||||||||||||||||||||||
Current period change for expected credit losses | — | 63 | ||||||||||||||||||||||||
Write-offs charged against the allowance for credit losses | — | — | ||||||||||||||||||||||||
Recoveries | — | — | ||||||||||||||||||||||||
Allowance for credit losses, end of period | $ | 1,600 | 1,840 |
($ in thousands) | Quarter ended June 30, | Six Months ended June 30, | ||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
Balance at beginning of period | $ | 1,840 | 1,502 | $ | 1,777 | 4,400 | ||||||||||||||||||||
Cumulative effect adjustment1 | 0 | 0 | 0 | (2,903) | ||||||||||||||||||||||
Balance at beginning of period, as adjusted | $ | 1,840 | 1,502 | $ | 1,777 | 1,497 | ||||||||||||||||||||
Current period provision for expected credit losses | (63) | 894 | 0 | 899 | ||||||||||||||||||||||
Write-offs charged against the allowance for credit losses | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Recoveries | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Allowance for credit losses, end of period | $ | 1,777 | 2,396 | $ | 1,777 | 2,396 |
Quarter ended June 30, | Six Months ended June 30, | |||||||||||||||||||||||||
($ in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Premiums written: | ||||||||||||||||||||||||||
Direct | $ | 954,770 | 834,643 | $ | 1,863,544 | 1,581,074 | ||||||||||||||||||||
Assumed | 4,872 | 6,410 | 10,405 | 12,453 | ||||||||||||||||||||||
Ceded | (126,437) | (116,301) | (242,566) | (221,448) | ||||||||||||||||||||||
Net | $ | 833,205 | 724,752 | $ | 1,631,383 | 1,372,079 | ||||||||||||||||||||
Premiums earned: | ||||||||||||||||||||||||||
Direct | $ | 853,456 | 733,647 | $ | 1,690,825 | 1,488,538 | ||||||||||||||||||||
Assumed | 4,411 | 6,055 | 10,087 | 12,228 | ||||||||||||||||||||||
Ceded | (117,349) | (109,031) | (235,434) | (218,392) | ||||||||||||||||||||||
Net | $ | 740,518 | 630,671 | $ | 1,465,478 | 1,282,374 | ||||||||||||||||||||
Loss and loss expenses incurred: | ||||||||||||||||||||||||||
Direct | $ | 460,073 | 451,013 | $ | 901,580 | 876,808 | ||||||||||||||||||||
Assumed | 3,217 | 4,300 | 6,664 | 9,198 | ||||||||||||||||||||||
Ceded | (41,667) | (51,364) | (73,220) | (81,733) | ||||||||||||||||||||||
Net | $ | 421,623 | 403,949 | $ | 835,024 | 804,273 |
Quarter ended March 31, | ||||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | ||||||||||||||||||||||||
Premiums written: | ||||||||||||||||||||||||||
Direct | $ | 1,001,049 | 908,774 | |||||||||||||||||||||||
Assumed | 5,314 | 5,533 | ||||||||||||||||||||||||
Ceded | (116,565) | (116,129) | ||||||||||||||||||||||||
Net | $ | 889,798 | 798,178 | |||||||||||||||||||||||
Premiums earned: | ||||||||||||||||||||||||||
Direct | $ | 931,376 | 837,369 | |||||||||||||||||||||||
Assumed | 5,528 | 5,676 | ||||||||||||||||||||||||
Ceded | (124,621) | (118,085) | ||||||||||||||||||||||||
Net | $ | 812,283 | 724,960 | |||||||||||||||||||||||
Loss and loss expenses incurred: | ||||||||||||||||||||||||||
Direct | $ | 528,588 | 441,507 | |||||||||||||||||||||||
Assumed | 4,278 | 3,447 | ||||||||||||||||||||||||
Ceded | (38,630) | (31,553) | ||||||||||||||||||||||||
Net | $ | 494,236 | 413,401 |
Ceded to NFIP | Quarter ended June 30, | Six Months ended June 30, | ||||||||||||||||||||||||
($ in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Ceded premiums written | $ | (75,081) | (74,187) | $ | (140,823) | (136,274) | ||||||||||||||||||||
Ceded premiums earned | (66,833) | (67,369) | (134,352) | (134,230) | ||||||||||||||||||||||
Ceded loss and loss expenses incurred | (18,941) | (12,991) | (21,148) | (18,087) |
Ceded to NFIP | Quarter ended March 31, | |||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | ||||||||||||||||||||||||
Ceded premiums written | $ | (60,889) | (65,742) | |||||||||||||||||||||||
Ceded premiums earned | (69,268) | (67,519) | ||||||||||||||||||||||||
Ceded loss and loss expenses incurred | (2,417) | (2,207) |
Six Months ended June 30, | ||||||||||||||
($ in thousands) | 2021 | 2020 | ||||||||||||
Gross reserve for loss and loss expense, at beginning of year | $ | 4,260,355 | 4,067,163 | |||||||||||
Less: reinsurance recoverable on unpaid loss and loss expense, at beginning of year1 | 554,269 | 547,066 | ||||||||||||
Net reserve for loss and loss expense, at beginning of year | 3,706,086 | 3,520,097 | ||||||||||||
Incurred loss and loss expense for claims occurring in the: | ||||||||||||||
Current year | 886,801 | 825,201 | ||||||||||||
Prior years | (51,777) | (20,928) | ||||||||||||
Total incurred loss and loss expense | 835,024 | 804,273 | ||||||||||||
Paid loss and loss expense for claims occurring in the: | ||||||||||||||
Current year | 227,505 | 221,422 | ||||||||||||
Prior years | 455,919 | 479,736 | ||||||||||||
Total paid loss and loss expense | 683,424 | 701,158 | ||||||||||||
Net reserve for loss and loss expense, at end of period | 3,857,686 | 3,623,212 | ||||||||||||
Add: Reinsurance recoverable on unpaid loss and loss expense, at end of period | 579,567 | 553,694 | ||||||||||||
Gross reserve for loss and loss expense at end of period | $ | 4,437,253 | 4,176,906 |
Quarter ended March 31, | ||||||||||||||
($ in thousands) | 2022 | 2021 | ||||||||||||
Gross reserve for loss and loss expense, at beginning of period | $ | 4,580,903 | 4,260,355 | |||||||||||
Less: reinsurance recoverable on unpaid loss and loss expense, at beginning of period | 578,641 | 554,269 | ||||||||||||
Net reserve for loss and loss expense, at beginning of period | 4,002,262 | 3,706,086 | ||||||||||||
Incurred loss and loss expense for claims occurring in the: | ||||||||||||||
Current year | 508,299 | 447,170 | ||||||||||||
Prior years | (14,063) | (33,769) | ||||||||||||
Total incurred loss and loss expense | 494,236 | 413,401 | ||||||||||||
Paid loss and loss expense for claims occurring in the: | ||||||||||||||
Current year | 91,292 | 80,158 | ||||||||||||
Prior years | 312,926 | 243,687 | ||||||||||||
Total paid loss and loss expense | 404,218 | 323,845 | ||||||||||||
Net reserve for loss and loss expense, at end of period | 4,092,280 | 3,795,642 | ||||||||||||
Add: Reinsurance recoverable on unpaid loss and loss expense, at end of period | 552,111 | 564,546 | ||||||||||||
Gross reserve for loss and loss expense at end of period | $ | 4,644,391 | 4,360,188 |
Revenue by Segment | Quarter ended June 30, | Six Months ended June 30, | ||||||||||||||||||||||||
($ in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Standard Commercial Lines: | ||||||||||||||||||||||||||
Net premiums earned: | ||||||||||||||||||||||||||
Commercial property | $ | 106,113 | 95,413 | $ | 208,923 | 189,282 | ||||||||||||||||||||
Workers compensation | 74,337 | 61,906 | 152,527 | 128,612 | ||||||||||||||||||||||
General liability | 197,293 | 163,273 | 390,813 | 327,853 | ||||||||||||||||||||||
Commercial automobile | 178,028 | 138,535 | 349,909 | 288,225 | ||||||||||||||||||||||
Businessowners' policies | 29,311 | 27,516 | 57,938 | 54,552 | ||||||||||||||||||||||
Bonds | 8,993 | 9,210 | 17,586 | 18,849 | ||||||||||||||||||||||
Other | 5,679 | 5,151 | 11,199 | 10,211 | ||||||||||||||||||||||
Miscellaneous income | 5,795 | 4,195 | 9,502 | 5,586 | ||||||||||||||||||||||
Total Standard Commercial Lines revenue | 605,549 | 505,199 | 1,198,397 | 1,023,170 | ||||||||||||||||||||||
Standard Personal Lines: | ||||||||||||||||||||||||||
Net premiums earned: | ||||||||||||||||||||||||||
Personal automobile | 41,009 | 38,189 | 82,402 | 80,676 | ||||||||||||||||||||||
Homeowners | 30,570 | 31,652 | 61,168 | 63,142 | ||||||||||||||||||||||
Other | 1,714 | 1,792 | 3,544 | 3,943 | ||||||||||||||||||||||
Miscellaneous income | 417 | 488 | 822 | 922 | ||||||||||||||||||||||
Total Standard Personal Lines revenue | 73,710 | 72,121 | 147,936 | 148,683 | ||||||||||||||||||||||
E&S Lines: | ||||||||||||||||||||||||||
Net premiums earned: | ||||||||||||||||||||||||||
Casualty lines | 47,642 | 42,722 | 91,475 | 86,794 | ||||||||||||||||||||||
Property lines | 19,829 | 15,312 | 37,994 | 30,235 | ||||||||||||||||||||||
Total E&S Lines revenue | 67,471 | 58,034 | 129,469 | 117,029 | ||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||
Net investment income | 83,731 | 34,444 | 153,447 | 90,411 | ||||||||||||||||||||||
Net realized and unrealized investment gains (losses) | 10,057 | 12,649 | 15,176 | (32,017) | ||||||||||||||||||||||
Total Investments revenue | 93,788 | 47,093 | 168,623 | 58,394 | ||||||||||||||||||||||
Total revenues | $ | 840,518 | 682,447 | $ | 1,644,425 | 1,347,276 |
Revenue by Segment | Quarter ended March 31, | |||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | ||||||||||||||||||||||||
Standard Commercial Lines: | ||||||||||||||||||||||||||
Net premiums earned: | ||||||||||||||||||||||||||
General liability | $ | 216,325 | 193,520 | |||||||||||||||||||||||
Commercial automobile | 193,830 | 171,881 | ||||||||||||||||||||||||
Commercial property | 120,062 | 102,810 | ||||||||||||||||||||||||
Workers compensation | 84,680 | 78,190 | ||||||||||||||||||||||||
Businessowners' policies | 30,044 | 28,627 | ||||||||||||||||||||||||
Bonds | 10,360 | 8,593 | ||||||||||||||||||||||||
Other | 6,168 | 5,520 | ||||||||||||||||||||||||
Miscellaneous income | 1,101 | 3,707 | ||||||||||||||||||||||||
Total Standard Commercial Lines revenue | 662,570 | 592,848 | ||||||||||||||||||||||||
Standard Personal Lines: | ||||||||||||||||||||||||||
Net premiums earned: | ||||||||||||||||||||||||||
Personal automobile | 39,716 | 41,393 | ||||||||||||||||||||||||
Homeowners | 31,187 | 30,598 | ||||||||||||||||||||||||
Other | 1,739 | 1,830 | ||||||||||||||||||||||||
Miscellaneous income | 428 | 405 | ||||||||||||||||||||||||
Total Standard Personal Lines revenue | 73,070 | 74,226 | ||||||||||||||||||||||||
E&S Lines: | ||||||||||||||||||||||||||
Net premiums earned: | ||||||||||||||||||||||||||
Casualty lines | 54,624 | 43,833 | ||||||||||||||||||||||||
Property lines | 23,548 | 18,165 | ||||||||||||||||||||||||
Total E&S Lines revenue | 78,172 | 61,998 | ||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||
Net investment income | 72,602 | 69,716 | ||||||||||||||||||||||||
Net realized and unrealized investment (losses) gains | (40,352) | 5,119 | ||||||||||||||||||||||||
Total Investments revenue | 32,250 | 74,835 | ||||||||||||||||||||||||
Total revenues | $ | 846,062 | 803,907 |
Income Before and After Federal Income Tax | Quarter ended June 30, | Six Months ended June 30, | ||||||||||||||||||||||||
($ in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Standard Commercial Lines: | ||||||||||||||||||||||||||
Underwriting gain, before federal income tax | $ | 67,938 | 16,730 | $ | 137,437 | 33,856 | ||||||||||||||||||||
Underwriting gain, after federal income tax | 53,671 | 13,217 | 108,575 | 26,747 | ||||||||||||||||||||||
Combined ratio | 88.7 | % | 96.7 | 88.4 | 96.7 | |||||||||||||||||||||
ROE contribution | 8.2 | 2.4 | 8.3 | 2.4 | ||||||||||||||||||||||
Standard Personal Lines: | ||||||||||||||||||||||||||
Underwriting gain (loss), before federal income tax | $ | 5,644 | (6,325) | $ | 13,339 | (5,938) | ||||||||||||||||||||
Underwriting gain (loss), after federal income tax | 4,459 | (4,997) | 10,538 | (4,691) | ||||||||||||||||||||||
Combined ratio | 92.3 | % | 108.8 | 90.9 | 104.0 | |||||||||||||||||||||
ROE contribution | 0.7 | (0.9) | 0.8 | (0.4) | ||||||||||||||||||||||
E&S Lines: | ||||||||||||||||||||||||||
Underwriting gain (loss), before federal income tax | $ | 2,306 | (532) | $ | 2,822 | 3,312 | ||||||||||||||||||||
Underwriting gain (loss), after federal income tax | 1,822 | (420) | 2,229 | 2,616 | ||||||||||||||||||||||
Combined ratio | 96.6 | % | 100.9 | 97.8 | 97.2 | |||||||||||||||||||||
ROE contribution | 0.3 | (0.1) | 0.2 | 0.2 | ||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||
Net investment income | $ | 83,731 | 34,444 | $ | 153,447 | 90,411 | ||||||||||||||||||||
Net realized and unrealized investment gains (losses) | 10,057 | 12,649 | 15,176 | (32,017) | ||||||||||||||||||||||
Total investment segment income, before federal income tax | 93,788 | 47,093 | 168,623 | 58,394 | ||||||||||||||||||||||
Tax on investment segment income | 18,402 | 8,558 | 32,850 | 9,662 | ||||||||||||||||||||||
Total investment segment income, after federal income tax | $ | 75,386 | 38,535 | $ | 135,773 | 48,732 | ||||||||||||||||||||
ROE contribution of after-tax net investment income | 10.3 | 5.2 | 9.5 | 6.6 |
Income Before and After Federal Income Tax | Quarter ended March 31, | |||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | ||||||||||||||||||||||||
Standard Commercial Lines: | ||||||||||||||||||||||||||
Underwriting income, before federal income tax | $ | 42,384 | 69,499 | |||||||||||||||||||||||
Underwriting income, after federal income tax | 33,483 | 54,904 | ||||||||||||||||||||||||
Combined ratio | 93.6 | % | 88.2 | |||||||||||||||||||||||
ROE contribution | 5.0 | 8.6 | ||||||||||||||||||||||||
Standard Personal Lines: | ||||||||||||||||||||||||||
Underwriting income, before federal income tax | $ | 6,520 | 7,695 | |||||||||||||||||||||||
Underwriting income, after federal income tax | 5,151 | 6,079 | ||||||||||||||||||||||||
Combined ratio | 91.0 | % | 89.6 | |||||||||||||||||||||||
ROE contribution | 0.8 | 1.0 | ||||||||||||||||||||||||
E&S Lines: | ||||||||||||||||||||||||||
Underwriting income, before federal income tax | $ | 6,925 | 516 | |||||||||||||||||||||||
Underwriting income, after federal income tax | 5,471 | 408 | ||||||||||||||||||||||||
Combined ratio | 91.1 | % | 99.2 | |||||||||||||||||||||||
ROE contribution | 0.8 | 0.1 | ||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||
Net investment income | $ | 72,602 | 69,716 | |||||||||||||||||||||||
Net realized and unrealized investment (losses) gains | (40,352) | 5,119 | ||||||||||||||||||||||||
Total investments segment income, before federal income tax | 32,250 | 74,835 | ||||||||||||||||||||||||
Tax on investments segment income | 5,613 | 14,448 | ||||||||||||||||||||||||
Total investments segment income, after federal income tax | $ | 26,637 | 60,387 | |||||||||||||||||||||||
ROE contribution of after-tax net investment income earned | 8.7 | 8.9 |
Reconciliation of Segment Results to Income Before Federal Income Tax | Reconciliation of Segment Results to Income Before Federal Income Tax | Quarter ended June 30, | Six Months ended June 30, | Reconciliation of Segment Results to Income Before Federal Income Tax | Quarter ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | 2021 | 2020 | 2021 | 2020 | ($ in thousands) | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Underwriting gain | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Underwriting income | Underwriting income | |||||||||||||||||||||||||||||||||||||||||||||||||||
Standard Commercial Lines | Standard Commercial Lines | $ | 67,938 | 16,730 | $ | 137,437 | 33,856 | Standard Commercial Lines | $ | 42,384 | 69,499 | |||||||||||||||||||||||||||||||||||||||||
Standard Personal Lines | Standard Personal Lines | 5,644 | (6,325) | 13,339 | (5,938) | Standard Personal Lines | 6,520 | 7,695 | ||||||||||||||||||||||||||||||||||||||||||||
E&S Lines | E&S Lines | 2,306 | (532) | 2,822 | 3,312 | E&S Lines | 6,925 | 516 | ||||||||||||||||||||||||||||||||||||||||||||
Investment income | Investment income | 93,788 | 47,093 | 168,623 | 58,394 | Investment income | 32,250 | 74,835 | ||||||||||||||||||||||||||||||||||||||||||||
Total all segments | Total all segments | 169,676 | 56,966 | 322,221 | 89,624 | Total all segments | 88,079 | 152,545 | ||||||||||||||||||||||||||||||||||||||||||||
Interest expense | Interest expense | (7,366) | (7,928) | (14,725) | (15,529) | Interest expense | (7,168) | (7,359) | ||||||||||||||||||||||||||||||||||||||||||||
Corporate expenses | Corporate expenses | (9,112) | (6,345) | (18,666) | (15,405) | Corporate expenses | (11,021) | (9,554) | ||||||||||||||||||||||||||||||||||||||||||||
Income, before federal income tax | Income, before federal income tax | $ | 153,198 | 42,693 | $ | 288,830 | 58,690 | Income, before federal income tax | $ | 69,890 | 135,632 | |||||||||||||||||||||||||||||||||||||||||
Preferred stock dividends | Preferred stock dividends | (2,300) | 0 | (4,753) | 0 | Preferred stock dividends | (2,300) | (2,453) | ||||||||||||||||||||||||||||||||||||||||||||
Income available to common stockholders, before federal income tax | Income available to common stockholders, before federal income tax | $ | 150,898 | 42,693 | $ | 284,077 | 58,690 | Income available to common stockholders, before federal income tax | $ | 67,590 | 133,179 |
Pension Plan | Pension Plan | |||||||||||||||||||||||||
Quarter ended June 30, | Six Months ended June 30, | |||||||||||||||||||||||||
($ in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Net Periodic Pension Cost (Benefit): | ||||||||||||||||||||||||||
Interest cost | $ | 2,149 | 2,828 | $ | 4,297 | 5,656 | ||||||||||||||||||||
Expected return on plan assets | (5,744) | (5,476) | (11,488) | (10,953) | ||||||||||||||||||||||
Amortization of unrecognized net actuarial loss | 625 | 704 | 1,250 | 1,408 | ||||||||||||||||||||||
Total net periodic pension cost (benefit)1 | $ | (2,970) | (1,944) | $ | (5,941) | (3,889) |
Pension Plan | ||||||||||||||||||||||||||
Quarter ended March 31, | ||||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | ||||||||||||||||||||||||
Net Periodic Pension Cost (Benefit): | ||||||||||||||||||||||||||
Interest cost | $ | 2,486 | 2,148 | |||||||||||||||||||||||
Expected return on plan assets | (5,537) | (5,744) | ||||||||||||||||||||||||
Amortization of unrecognized net actuarial loss | 366 | 625 | ||||||||||||||||||||||||
Total net periodic pension cost (benefit)1 | $ | (2,685) | (2,971) |
Pension Plan | Pension Plan | |||||||||||||||||||||||||||
Six Months ended June 30, | Quarter ended March 31, | |||||||||||||||||||||||||||
2021 | 2020 | 2022 | 2021 | |||||||||||||||||||||||||
Weighted-Average Expense Assumptions: | Weighted-Average Expense Assumptions: | Weighted-Average Expense Assumptions: | ||||||||||||||||||||||||||
Discount rate | Discount rate | 2.68 | % | 3.33 | % | Discount rate | 2.98 | % | 2.68 | % | ||||||||||||||||||
Effective interest rate for calculation of interest cost | Effective interest rate for calculation of interest cost | 2.06 | 2.95 | Effective interest rate for calculation of interest cost | 2.48 | 2.06 | ||||||||||||||||||||||
Expected return on plan assets | Expected return on plan assets | 5.40 | 5.80 | Expected return on plan assets | 5.00 | 5.40 |
Second Quarter 2021 | ||||||||||||||||||||
($ in thousands) | Gross | Tax | Net | |||||||||||||||||
Net income | $ | 153,198 | 31,315 | 121,883 | ||||||||||||||||
Components of OCI: | ||||||||||||||||||||
Unrealized gains on investment securities: | ||||||||||||||||||||
Unrealized holding gains during the period | 35,553 | 7,467 | 28,086 | |||||||||||||||||
Unrealized gains on securities with credit loss recognized in earnings | 9,985 | 2,097 | 7,888 | |||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
HTM securities | (3) | (1) | (2) | |||||||||||||||||
Net realized losses on disposals and losses on intent-to-sell AFS securities | 58 | 12 | 46 | |||||||||||||||||
Credit loss benefit | (2,272) | (477) | (1,795) | |||||||||||||||||
Total unrealized gains on investment securities | 43,321 | 9,098 | 34,223 | |||||||||||||||||
Defined benefit pension and post-retirement plans: | ||||||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
Net actuarial loss | 693 | 145 | 548 | |||||||||||||||||
Total defined benefit pension and post-retirement plans | 693 | 145 | 548 | |||||||||||||||||
Other comprehensive income | 44,014 | 9,243 | 34,771 | |||||||||||||||||
Comprehensive income | $ | 197,212 | 40,558 | 156,654 | ||||||||||||||||
Second Quarter 2020 | ||||||||||||||||||||
($ in thousands) | Gross | Tax | Net | |||||||||||||||||
Net income | $ | 42,693 | 8,510 | 34,183 | ||||||||||||||||
Components of OCI: | ||||||||||||||||||||
Unrealized gains on investment securities: | ||||||||||||||||||||
Unrealized holding gains during the period | 188,768 | 39,641 | 149,127 | |||||||||||||||||
Unrealized gains on securities with credit loss recognized in earnings | 37,479 | 7,871 | 29,608 | |||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
HTM securities | (31) | (6) | (25) | |||||||||||||||||
Net realized gains on disposals and losses on intent-to-sell AFS securities | (1,686) | (354) | (1,332) | |||||||||||||||||
Credit loss benefit | (4,924) | (1,034) | (3,890) | |||||||||||||||||
Total unrealized gains on investment securities | 219,606 | 46,118 | 173,488 | |||||||||||||||||
Defined benefit pension and post-retirement plans: | ||||||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
Net actuarial loss | 753 | 158 | 595 | |||||||||||||||||
Total defined benefit pension and post-retirement plans | 753 | 158 | 595 | |||||||||||||||||
Other comprehensive income | 220,359 | 46,276 | 174,083 | |||||||||||||||||
Comprehensive income | $ | 263,052 | 54,786 | 208,266 |
First Quarter 2022 | ||||||||||||||||||||
($ in thousands) | Gross | Tax | Net | |||||||||||||||||
Net income | $ | 69,890 | 13,560 | 56,330 | ||||||||||||||||
Components of OCI: | ||||||||||||||||||||
Unrealized losses on investment securities: | ||||||||||||||||||||
Unrealized holding losses during the period | (261,832) | (54,984) | (206,848) | |||||||||||||||||
Unrealized losses on securities with credit loss recognized in earnings | (86,621) | (18,191) | (68,430) | |||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
HTM securities | 1 | — | 1 | |||||||||||||||||
Net realized losses on disposals and intent-to-sell AFS securities | 15,991 | 3,358 | 12,633 | |||||||||||||||||
Credit loss expense | 22,052 | 4,631 | 17,421 | |||||||||||||||||
Total unrealized losses on investment securities | (310,409) | (65,186) | (245,223) | |||||||||||||||||
Defined benefit pension and post-retirement plans: | ||||||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
Net actuarial loss | 417 | 88 | 329 | |||||||||||||||||
Total defined benefit pension and post-retirement plans | 417 | 88 | 329 | |||||||||||||||||
Other comprehensive loss | (309,992) | (65,098) | (244,894) | |||||||||||||||||
Comprehensive loss | $ | (240,102) | (51,538) | (188,564) | ||||||||||||||||
First Quarter 2021 | ||||||||||||||||||||
($ in thousands) | Gross | Tax | Net | |||||||||||||||||
Net income | $ | 135,632 | 26,362 | 109,270 | ||||||||||||||||
Components of OCI: | ||||||||||||||||||||
Unrealized losses on investment securities: | ||||||||||||||||||||
Unrealized holding losses during the period | (103,308) | (21,695) | (81,613) | |||||||||||||||||
Unrealized losses on securities with credit loss recognized in earnings | (11,320) | (2,377) | (8,943) | |||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
HTM securities | (2) | — | (2) | |||||||||||||||||
Net realized losses on disposals and intent-to-sell AFS securities | 604 | 127 | 477 | |||||||||||||||||
Credit loss expense | 4,997 | 1,049 | 3,948 | |||||||||||||||||
Total unrealized losses on investment securities | (109,029) | (22,896) | (86,133) | |||||||||||||||||
Defined benefit pension and post-retirement plans: | ||||||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
Net actuarial loss | 693 | 146 | 547 | |||||||||||||||||
Total defined benefit pension and post-retirement plans | 693 | 146 | 547 | |||||||||||||||||
Other comprehensive loss | (108,336) | (22,750) | (85,586) | |||||||||||||||||
Comprehensive income | $ | 27,296 | 3,612 | 23,684 |
Six Months 2021 | ||||||||||||||||||||
($ in thousands) | Gross | Tax | Net | |||||||||||||||||
Net income | $ | 288,830 | 57,677 | 231,153 | ||||||||||||||||
Components of OCI: | ||||||||||||||||||||
Unrealized losses on investment securities: | ||||||||||||||||||||
Unrealized holding losses during the period | (67,755) | (14,228) | (53,527) | |||||||||||||||||
Unrealized losses on securities with credit loss recognized in earnings | (1,335) | (280) | (1,055) | |||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
HTM securities | (5) | (1) | (4) | |||||||||||||||||
Net realized losses on disposals and losses on intent-to-sell AFS securities | 662 | 139 | 523 | |||||||||||||||||
Credit loss expense | 2,725 | 572 | 2,153 | |||||||||||||||||
Total unrealized losses on investment securities | (65,708) | (13,798) | (51,910) | |||||||||||||||||
Defined benefit pension and post-retirement plans: | ||||||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
Net actuarial loss | 1,386 | 291 | 1,095 | |||||||||||||||||
Total defined benefit pension and post-retirement plans | 1,386 | 291 | 1,095 | |||||||||||||||||
Other comprehensive loss | (64,322) | (13,507) | (50,815) | |||||||||||||||||
Comprehensive income | $ | 224,508 | 44,170 | 180,338 | ||||||||||||||||
Six Months 2020 | ||||||||||||||||||||
($ in thousands) | Gross | Tax | Net | |||||||||||||||||
Net income | $ | 58,690 | 9,271 | 49,419 | ||||||||||||||||
Components of OCI: | ||||||||||||||||||||
Unrealized gains on investment securities: | ||||||||||||||||||||
Unrealized holding gains during the period | 94,787 | 19,905 | 74,882 | |||||||||||||||||
Unrealized losses on securities with credit loss recognized in earnings | (27,911) | (5,861) | (22,050) | |||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
HTM securities | (6) | (1) | (5) | |||||||||||||||||
Net realized losses on disposals and losses on intent-to-sell AFS securities | 9,641 | 2,025 | 7,616 | |||||||||||||||||
Credit loss expense | 10,863 | 2,281 | 8,582 | |||||||||||||||||
Total unrealized gains on investment securities | 87,374 | 18,349 | 69,025 | |||||||||||||||||
Defined benefit pension and post-retirement plans: | ||||||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
Net actuarial loss | 1,507 | 316 | 1,191 | |||||||||||||||||
Total defined benefit pension and post-retirement plans | 1,507 | 316 | 1,191 | |||||||||||||||||
Other comprehensive income | 88,881 | 18,665 | 70,216 | |||||||||||||||||
Comprehensive income | $ | 147,571 | 27,936 | 119,635 |
June 30, 2021 | Defined Benefit Pension and Post-Retirement Plans | |||||||||||||||||||||||||||||||||||||
Net Unrealized (Losses) Gains on Investment Securities | Total AOCI | |||||||||||||||||||||||||||||||||||||
($ in thousands) | Credit Loss Related1 | HTM Related | All Other | Investments Subtotal | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2020 | $ | (2,546) | 6 | 307,790 | 305,250 | (85,064) | 220,186 | |||||||||||||||||||||||||||||||
OCI before reclassifications | (1,055) | 0 | (53,527) | (54,582) | 0 | (54,582) | ||||||||||||||||||||||||||||||||
Amounts reclassified from AOCI | 2,153 | (4) | 523 | 2,672 | 1,095 | 3,767 | ||||||||||||||||||||||||||||||||
Net current period OCI | 1,098 | (4) | (53,004) | (51,910) | 1,095 | (50,815) | ||||||||||||||||||||||||||||||||
Balance, June 30, 2021 | $ | (1,448) | 2 | 254,786 | 253,340 | (83,969) | 169,371 |
Net Unrealized (Losses) Gains on Investment Securities | Defined Benefit Pension and Post-Retirement Plans | Total AOCI | ||||||||||||||||||||||||||||||||||||
($ in thousands) | Credit Loss Related1 | HTM Related | All Other | Investments Subtotal | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2021 | $ | (4,287) | (3) | 185,170 | 180,880 | (65,781) | 115,099 | |||||||||||||||||||||||||||||||
OCI before reclassifications | (68,430) | — | (206,848) | (275,278) | — | (275,278) | ||||||||||||||||||||||||||||||||
Amounts reclassified from AOCI | 17,421 | 1 | 12,633 | 30,055 | 329 | 30,384 | ||||||||||||||||||||||||||||||||
Net current period OCI | (51,009) | 1 | (194,215) | (245,223) | 329 | (244,894) | ||||||||||||||||||||||||||||||||
Balance, March 31, 2022 | $ | (55,296) | (2) | (9,045) | (64,343) | (65,452) | (129,795) |
Quarter ended June 30, | Six Months ended June 30, | Affected Line Item in the Unaudited Consolidated Statements of Income | |||||||||||||||||||||||||||
($ in thousands) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
HTM related | |||||||||||||||||||||||||||||
Unrealized losses on HTM disposals | $ | 0 | 0 | $ | 0 | 1 | Net realized and unrealized investment gains (losses) | ||||||||||||||||||||||
Amortization of net unrealized gains on HTM securities | (3) | (31) | (5) | (7) | Net investment income earned | ||||||||||||||||||||||||
(3) | (31) | (5) | (6) | Income before federal income tax | |||||||||||||||||||||||||
1 | 6 | 1 | 1 | Total federal income tax expense | |||||||||||||||||||||||||
(2) | (25) | (4) | (5) | Net income | |||||||||||||||||||||||||
Net realized losses (gains) on disposals and intent-to-sell AFS securities | |||||||||||||||||||||||||||||
Net realized losses (gains) on disposals and intent-to-sell AFS securities | 58 | (1,686) | 662 | 9,641 | Net realized and unrealized investment gains (losses) | ||||||||||||||||||||||||
58 | (1,686) | 662 | 9,641 | Income before federal income tax | |||||||||||||||||||||||||
(12) | 354 | (139) | (2,025) | Total federal income tax expense | |||||||||||||||||||||||||
46 | (1,332) | 523 | 7,616 | Net income | |||||||||||||||||||||||||
Credit loss related | |||||||||||||||||||||||||||||
Credit loss (benefit) expense | (2,272) | (4,924) | 2,725 | 10,863 | Net realized and unrealized investment gains (losses) | ||||||||||||||||||||||||
(2,272) | (4,924) | 2,725 | 10,863 | Income before federal income tax | |||||||||||||||||||||||||
477 | 1,034 | (572) | (2,281) | Total federal income tax expense | |||||||||||||||||||||||||
(1,795) | (3,890) | 2,153 | 8,582 | Net income | |||||||||||||||||||||||||
Defined benefit pension and post-retirement life plans | |||||||||||||||||||||||||||||
Net actuarial loss | 160 | 162 | 319 | 324 | Loss and loss expense incurred | ||||||||||||||||||||||||
533 | 591 | 1,067 | 1,183 | Other insurance expenses | |||||||||||||||||||||||||
Total defined benefit pension and post-retirement life | 693 | 753 | 1,386 | 1,507 | Income before federal income tax | ||||||||||||||||||||||||
(145) | (158) | (291) | (316) | Total federal income tax expense | |||||||||||||||||||||||||
548 | 595 | 1,095 | 1,191 | Net income | |||||||||||||||||||||||||
Total reclassifications for the period | $ | (1,203) | (4,652) | $ | 3,767 | 17,384 | Net income |
Quarter ended March 31, | Affected Line Item in the Unaudited Consolidated Statements of Income | ||||||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | |||||||||||||||||||||||||||
HTM related | |||||||||||||||||||||||||||||
Unrealized (gains) losses on HTM disposals | $ | — | — | Net realized and unrealized investment (losses) gains | |||||||||||||||||||||||||
Amortization of net unrealized losses (gains) on HTM securities | 1 | (2) | Net investment income earned | ||||||||||||||||||||||||||
1 | (2) | Income before federal income tax | |||||||||||||||||||||||||||
— | — | Total federal income tax expense | |||||||||||||||||||||||||||
1 | (2) | Net income | |||||||||||||||||||||||||||
Net realized losses on disposals and intent-to-sell AFS securities | |||||||||||||||||||||||||||||
Net realized losses on disposals and intent-to-sell AFS securities | 15,991 | 604 | Net realized and unrealized investment (losses) gains | ||||||||||||||||||||||||||
15,991 | 604 | Income before federal income tax | |||||||||||||||||||||||||||
(3,358) | (127) | Total federal income tax expense | |||||||||||||||||||||||||||
12,633 | 477 | Net income | |||||||||||||||||||||||||||
Credit loss related | |||||||||||||||||||||||||||||
Credit loss expense | 22,052 | 4,997 | Net realized and unrealized investment (losses) gains | ||||||||||||||||||||||||||
22,052 | 4,997 | Income before federal income tax | |||||||||||||||||||||||||||
(4,631) | (1,049) | Total federal income tax expense | |||||||||||||||||||||||||||
17,421 | 3,948 | Net income | |||||||||||||||||||||||||||
Defined benefit pension and post-retirement life plans | |||||||||||||||||||||||||||||
Net actuarial loss | 96 | 159 | Loss and loss expense incurred | ||||||||||||||||||||||||||
321 | 534 | Other insurance expenses | |||||||||||||||||||||||||||
Total defined benefit pension and post-retirement life | 417 | 693 | Income before federal income tax | ||||||||||||||||||||||||||
(88) | (146) | Total federal income tax expense | |||||||||||||||||||||||||||
329 | 547 | Net income | |||||||||||||||||||||||||||
Total reclassifications for the period | $ | 30,384 | 4,970 | Net income |
($ and shares in thousands, except per share amounts) | ($ and shares in thousands, except per share amounts) | Quarter ended June 30, | Change % or Points | Six Months ended June 30, | Change % or Points | ($ and shares in thousands, except per share amounts) | Quarter ended March 31, | Change % or Points | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Data: | Financial Data: | Financial Data: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | Revenues | $ | 840,518 | 682,447 | 23 | % | $ | 1,644,425 | 1,347,276 | 22 | % | Revenues | $ | 846,062 | 803,907 | 5 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
After-tax net investment income | After-tax net investment income | 67,441 | 28,542 | 136 | 123,784 | 74,025 | 67 | After-tax net investment income | 58,515 | 56,343 | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
After-tax underwriting income | After-tax underwriting income | 59,952 | 7,800 | 669 | 121,342 | 24,672 | 392 | After-tax underwriting income | 44,105 | 61,391 | (28) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income before federal income tax | Net income before federal income tax | 153,198 | 42,693 | 259 | 288,830 | 58,690 | 392 | Net income before federal income tax | 69,890 | 135,632 | (48) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | 121,883 | 34,183 | 257 | 231,153 | 49,419 | 368 | Net income | 56,330 | 109,270 | (48) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income available to common stockholders | Net income available to common stockholders | 119,583 | 34,183 | 250 | 226,400 | 49,419 | 358 | Net income available to common stockholders | 54,030 | 106,817 | (49) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Key Metrics: | Key Metrics: | Key Metrics: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Combined ratio | Combined ratio | 89.8 | % | 98.4 | (8.6) | pts | 89.5 | % | 97.6 | (8.1) | pts | Combined ratio | 93.1 | % | 89.3 | 3.8 | pts | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Invested assets per dollar of common stockholders' equity | Invested assets per dollar of common stockholders' equity | $ | 2.88 | 3.10 | (7) | % | $ | 2.88 | 3.10 | (7) | % | Invested assets per dollar of common stockholders' equity | $ | 3.02 | 2.97 | 2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Annualized return on common equity ("ROE") | Annualized return on common equity ("ROE") | 18.3 | 6.2 | 12.1 | pts | 17.3 | 4.4 | 12.9 | pts | Annualized return on common equity ("ROE") | 8.1 | 16.8 | (8.7) | pts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Statutory premiums to surplus ratio | 1.33 | x | 1.39 | (0.06) | 1.33 | x | 1.39 | (0.06) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net premiums written to statutory surplus ratio | Net premiums written to statutory surplus ratio | 1.36 | x | 1.33 | 0.03 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per Common Share Amounts: | Per Common Share Amounts: | Per Common Share Amounts: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Diluted net income per share | Diluted net income per share | $ | 1.98 | 0.57 | 247 | % | $ | 3.74 | 0.82 | 356 | % | Diluted net income per share | $ | 0.89 | 1.77 | (50) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Book value per share | Book value per share | 44.78 | 38.43 | 17 | 44.78 | 38.43 | 17 | Book value per share | 42.73 | 42.38 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared per share to common stockholders | Dividends declared per share to common stockholders | 0.25 | 0.23 | 9 | 0.50 | 0.46 | 9 | Dividends declared per share to common stockholders | 0.28 | 0.25 | 12 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP Information: | Non-GAAP Information: | Non-GAAP Information: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP operating income2 | Non-GAAP operating income2 | $ | 111,638 | 24,190 | 362 | % | $ | 214,411 | 74,712 | 187 | % | Non-GAAP operating income2 | $ | 85,908 | 102,773 | (16) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Diluted non-GAAP operating income per common share2 | Diluted non-GAAP operating income per common share2 | 1.85 | 0.40 | 363 | 3.54 | 1.24 | 185 | Diluted non-GAAP operating income per common share2 | 1.41 | 1.70 | (17) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Annualized non-GAAP operating ROE2 | Annualized non-GAAP operating ROE2 | 17.1 | % | 4.4 | 12.7 | pts | 16.4 | % | 6.7 | 9.7 | pts | Annualized non-GAAP operating ROE2 | 12.8 | % | 16.2 | (3.4) | pts | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted book value per common share2 | Adjusted book value per common share2 | $ | 43.80 | 38.73 | 13 | % |
Reconciliation of net income available to common stockholders to non-GAAP operating income | Quarter ended June 30, | Six Months ended June 30, | ||||||||||||||||||||||||
($ in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Net income available to common stockholders | $ | 119,583 | 34,183 | $ | 226,400 | 49,419 | ||||||||||||||||||||
Net realized and unrealized (gains) losses, before tax | (10,057) | (12,649) | (15,176) | 32,017 | ||||||||||||||||||||||
Tax on reconciling items | 2,112 | 2,656 | 3,187 | (6,724) | ||||||||||||||||||||||
Non-GAAP operating income | $ | 111,638 | 24,190 | $ | 214,411 | 74,712 |
Reconciliation of net income available to common stockholders to non-GAAP operating income | Quarter ended March 31, | |||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | ||||||||||||||||||||||||
Net income available to common stockholders | $ | 54,030 | 106,817 | |||||||||||||||||||||||
Net realized and unrealized investment losses (gains) included in net income, before tax | 40,352 | (5,119) | ||||||||||||||||||||||||
Tax on reconciling items | (8,474) | 1,075 | ||||||||||||||||||||||||
Non-GAAP operating income | $ | 85,908 | 102,773 |
Reconciliation of net income available to common stockholders per diluted common share to non-GAAP operating income per diluted common share | Reconciliation of net income available to common stockholders per diluted common share to non-GAAP operating income per diluted common share | Quarter ended June 30, | Six Months ended June 30, | Reconciliation of net income available to common stockholders per diluted common share to non-GAAP operating income per diluted common share | Quarter ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
Net income available to common stockholders per diluted common share | Net income available to common stockholders per diluted common share | $ | 1.98 | 0.57 | $ | 3.74 | 0.82 | Net income available to common stockholders per diluted common share | $ | 0.89 | 1.77 | |||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized (gains) losses, before tax | (0.17) | (0.21) | (0.25) | 0.53 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized investment losses (gains) included in net income, before tax | Net realized and unrealized investment losses (gains) included in net income, before tax | 0.66 | (0.08) | |||||||||||||||||||||||||||||||||||||||||||||||||
Tax on reconciling items | Tax on reconciling items | 0.04 | 0.04 | 0.05 | (0.11) | Tax on reconciling items | (0.14) | 0.01 | ||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP operating income per diluted common share | Non-GAAP operating income per diluted common share | $ | 1.85 | 0.40 | $ | 3.54 | 1.24 | Non-GAAP operating income per diluted common share | $ | 1.41 | 1.70 |
Reconciliation of annualized ROE to annualized non-GAAP operating ROE | Reconciliation of annualized ROE to annualized non-GAAP operating ROE | Quarter ended June 30, | Six Months ended June 30, | Reconciliation of annualized ROE to annualized non-GAAP operating ROE | Quarter ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
Annualized ROE | Annualized ROE | 18.3 | % | 6.2 | 17.3 | % | 4.4 | Annualized ROE | 8.1 | % | 16.8 | |||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized (gains) losses, before tax | (1.5) | (2.3) | (1.1) | 2.9 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized investment losses (gains) included in net income, before tax | Net realized and unrealized investment losses (gains) included in net income, before tax | 6.0 | (0.8) | |||||||||||||||||||||||||||||||||||||||||||||||||
Tax on reconciling items | Tax on reconciling items | 0.3 | 0.5 | 0.2 | (0.6) | Tax on reconciling items | (1.3) | 0.2 | ||||||||||||||||||||||||||||||||||||||||||||
Annualized non-GAAP operating ROE | Annualized non-GAAP operating ROE | 17.1 | % | 4.4 | 16.4 | % | 6.7 | Annualized non-GAAP operating ROE | 12.8 | % | 16.2 |
Reconciliation of book value per common share to adjusted book value per common share | Quarter ended March 31, | |||||||||||||||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||||||||||||||||
Book value per common share | $ | 42.73 | 42.38 | |||||||||||||||||||||||||||||||||||
Total unrealized investment losses (gains) included in accumulated other comprehensive (loss) income, before tax | 1.35 | (4.62) | ||||||||||||||||||||||||||||||||||||
Tax on reconciling items | (0.28) | 0.97 | ||||||||||||||||||||||||||||||||||||
Adjusted book value per common share | $ | 43.80 | 38.73 |
Annualized ROE and non-GAAP operating ROE Components | Quarter ended March 31, | Change Points | ||||||||||||||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||||||||||||||||
Standard Commercial Lines Segment | 5.0 | % | 8.6 | (3.6) | ||||||||||||||||||||||||||||||||||
Standard Personal Lines Segment | 0.8 | 1.0 | (0.2) | |||||||||||||||||||||||||||||||||||
E&S Lines Segment | 0.8 | 0.1 | 0.7 | |||||||||||||||||||||||||||||||||||
Total insurance operations | 6.6 | 9.7 | (3.1) | |||||||||||||||||||||||||||||||||||
Investment income | 8.7 | 8.9 | (0.2) | |||||||||||||||||||||||||||||||||||
Net realized and unrealized investment (losses) gains | (4.7) | 0.6 | (5.3) | |||||||||||||||||||||||||||||||||||
Total investments segment | 4.0 | 9.5 | (5.5) | |||||||||||||||||||||||||||||||||||
Other | (2.5) | (2.4) | (0.1) | |||||||||||||||||||||||||||||||||||
Annualized ROE | 8.1 | % | 16.8 | (8.7) | ||||||||||||||||||||||||||||||||||
Net realized and unrealized investment losses (gains), after tax | 4.7 | (0.6) | 5.3 | |||||||||||||||||||||||||||||||||||
Annualized Non-GAAP Operating ROE | 12.8 | % | 16.2 | (3.4) | ||||||||||||||||||||||||||||||||||
Annualized ROE Components | Quarter ended June 30, | Change Points | Six Months ended June 30, | Change Points | ||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||
Standard Commercial Lines Segment | 8.2 | % | 2.4 | 5.8 | 8.3 | % | 2.4 | 5.9 | ||||||||||||||||||||||||||||||
Standard Personal Lines Segment | 0.7 | (0.9) | 1.6 | 0.8 | (0.4) | 1.2 | ||||||||||||||||||||||||||||||||
E&S Lines Segment | 0.3 | (0.1) | 0.4 | 0.2 | 0.2 | — | ||||||||||||||||||||||||||||||||
Total insurance operations | 9.2 | 1.4 | 7.8 | 9.3 | 2.2 | 7.1 | ||||||||||||||||||||||||||||||||
Investment income | 10.3 | 5.2 | 5.1 | 9.5 | 6.6 | 2.9 | ||||||||||||||||||||||||||||||||
Net realized and unrealized investment gains (losses) | 1.2 | 1.8 | (0.6) | 0.9 | (2.3) | 3.2 | ||||||||||||||||||||||||||||||||
Total investments segment | 11.5 | 7.0 | 4.5 | 10.4 | 4.3 | 6.1 | ||||||||||||||||||||||||||||||||
Other | (2.4) | (2.2) | (0.2) | (2.4) | (2.1) | (0.3) | ||||||||||||||||||||||||||||||||
Annualized ROE | 18.3 | % | 6.2 | 12.1 | 17.3 | % | 4.4 | 12.9 | ||||||||||||||||||||||||||||||
All Lines | Quarter ended June 30, | Change % or Points | Six Months ended June 30, | Change % or Points | ||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||
Insurance Operations Results: | ||||||||||||||||||||||||||||||||||||||||||||
Net premiums written ("NPW") | $ | 833,205 | 724,752 | 15 | % | $ | 1,631,383 | 1,372,079 | 19 | % | ||||||||||||||||||||||||||||||||||
Net premiums earned (“NPE”) | 740,518 | 630,671 | 17 | 1,465,478 | 1,282,374 | 14 | ||||||||||||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||||||
Loss and loss expense incurred | 421,623 | 403,949 | 4 | 835,024 | 804,273 | 4 | ||||||||||||||||||||||||||||||||||||||
Net underwriting expenses incurred | 241,825 | 216,191 | 12 | 474,451 | 445,428 | 7 | ||||||||||||||||||||||||||||||||||||||
Dividends to policyholders | 1,182 | 658 | 80 | 2,405 | 1,443 | 67 | ||||||||||||||||||||||||||||||||||||||
Underwriting income | $ | 75,888 | 9,873 | 669 | % | $ | 153,598 | 31,230 | 392 | % | ||||||||||||||||||||||||||||||||||
Combined Ratios: | ||||||||||||||||||||||||||||||||||||||||||||
Loss and loss expense ratio | 56.9 | % | 64.0 | (7.1) | pts | 56.9 | % | 62.8 | (5.9) | pts | ||||||||||||||||||||||||||||||||||
Underwriting expense ratio | 32.7 | 34.3 | (1.6) | 32.4 | 34.7 | (2.3) | ||||||||||||||||||||||||||||||||||||||
Dividends to policyholders ratio | 0.2 | 0.1 | 0.1 | 0.2 | 0.1 | 0.1 | ||||||||||||||||||||||||||||||||||||||
Combined ratio | 89.8 | 98.4 | (8.6) | 89.5 | 97.6 | (8.1) |
All Lines | Quarter ended March 31, | Change % or Points | ||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||
Insurance Operations Results: | ||||||||||||||||||||||||||||||||||||||||||||
Net premiums written ("NPW") | $ | 889,798 | 798,178 | 11 | % | |||||||||||||||||||||||||||||||||||||||
Net premiums earned (“NPE”) | 812,283 | 724,960 | 12 | |||||||||||||||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||||||
Loss and loss expense incurred | 494,236 | 413,401 | 20 | |||||||||||||||||||||||||||||||||||||||||
Net underwriting expenses incurred | 260,639 | 232,626 | 12 | |||||||||||||||||||||||||||||||||||||||||
Dividends to policyholders | 1,579 | 1,223 | 29 | |||||||||||||||||||||||||||||||||||||||||
Underwriting income | $ | 55,829 | 77,710 | (28) | % | |||||||||||||||||||||||||||||||||||||||
Combined Ratios: | ||||||||||||||||||||||||||||||||||||||||||||
Loss and loss expense ratio | 60.8 | % | 57.0 | 3.8 | pts | |||||||||||||||||||||||||||||||||||||||
Underwriting expense ratio | 32.1 | 32.1 | — | |||||||||||||||||||||||||||||||||||||||||
Dividends to policyholders ratio | 0.2 | 0.2 | — | |||||||||||||||||||||||||||||||||||||||||
Combined ratio | 93.1 | 89.3 | 3.8 |
Quarter ended June 30, | Change % or Points | Six Months ended June 30, | Change % or Points | |||||||||||||||||||||||||||||||||||||||||
($ in millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||
Direct new business | $ | 173.3 | 150.1 | 16 | % | $ | 329.0 | 302.9 | 9 | % | ||||||||||||||||||||||||||||||||||
Renewal pure price increases | 5.1 | 3.9 | 1.2 | 5.2 | 4.0 | 1.2 | ||||||||||||||||||||||||||||||||||||||
Quarter ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||
Direct new business premiums | $ | 177.2 | 155.6 | |||||||||||||||||||||||||||||||||||||||||
Renewal pure price increases on NPW | 4.6 | % | 5.2 | |||||||||||||||||||||||||||||||||||||||||
First Quarter 2022 | First Quarter 2021 | |||||||||||||||||||||||||||||||||||||
($ in millions) | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Change in Ratio | |||||||||||||||||||||||||||||||||
Net catastrophe losses | $ | 20.6 | 2.5 | pts | $ | 29.9 | 4.1 | pts | (1.6) | pts | ||||||||||||||||||||||||||||
(Favorable) prior year casualty reserve development | (20.0) | (2.5) | (35.0) | (4.8) | 2.3 | |||||||||||||||||||||||||||||||||
Non-catastrophe property loss and loss expenses | 150.4 | 18.5 | 115.6 | 15.9 | 2.6 | |||||||||||||||||||||||||||||||||
Total | $ | 151.0 | 18.5 | $ | 110.5 | 15.2 | 3.3 | |||||||||||||||||||||||||||||||
Second Quarter 2021 | Second Quarter 2020 | ||||||||||||||||||||||||||||
($ in millions) | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Change in Ratio | ||||||||||||||||||||||||
Catastrophe losses | $ | 22.6 | 3.1 | pts | $ | 83.2 | 13.2 | pts | (10.1) | pts | |||||||||||||||||||
(Favorable) prior year casualty reserve development | (17.0) | (2.3) | (15.0) | (2.4) | 0.1 | ||||||||||||||||||||||||
Non-catastrophe property loss and loss expenses | 107.3 | 14.5 | 81.8 | 13.0 | 1.5 | ||||||||||||||||||||||||
Total | $ | 112.9 | 15.3 | $ | 150.0 | 23.8 | (8.5) | ||||||||||||||||||||||
Six Months 2021 | Six Months 2020 | ||||||||||||||||||||||||||||
($ in millions) | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Change in Ratio | ||||||||||||||||||||||||
Catastrophe losses | $ | 52.6 | 3.6 | pts | $ | 116.4 | 9.1 | pts | (5.5) | pts | |||||||||||||||||||
(Favorable) prior year casualty reserve development | (52.0) | (3.5) | (25.0) | (1.9) | (1.6) | ||||||||||||||||||||||||
Non-catastrophe property loss and loss expenses | 222.9 | 15.2 | 189.9 | 14.8 | 0.4 | ||||||||||||||||||||||||
Total | $ | 223.5 | 15.3 | $ | 281.3 | 22.0 | (6.7) |
(Favorable)/Unfavorable Prior Year Casualty Reserve Development | Quarter ended June 30, | Six Months ended June 30, | ||||||||||||||||||||||||
($ in millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
General liability | $ | (10.0) | (10.0) | $ | (25.0) | (10.0) | ||||||||||||||||||||
Commercial automobile | — | 10.0 | — | 10.0 | ||||||||||||||||||||||
Workers compensation | (5.0) | (15.0) | (20.0) | (25.0) | ||||||||||||||||||||||
Total Standard Commercial Lines | (15.0) | (15.0) | (45.0) | (25.0) | ||||||||||||||||||||||
E&S | (2.0) | — | (7.0) | — | ||||||||||||||||||||||
Total (favorable) prior year casualty reserve development | $ | (17.0) | (15.0) | $ | (52.0) | (25.0) | ||||||||||||||||||||
(Favorable) impact on loss ratio | (2.3) | pts | (2.4) | (3.5) | (1.9) |
(Favorable)/Unfavorable Prior Year Casualty Reserve Development | Quarter ended March 31, | ||||||||||||||||||||||||||||
($ in millions) | 2022 | 2021 | |||||||||||||||||||||||||||
General liability | $ | (5.0) | (15.0) | ||||||||||||||||||||||||||
Workers compensation | (10.0) | (15.0) | |||||||||||||||||||||||||||
Bonds | (5.0) | — | |||||||||||||||||||||||||||
Total Standard Commercial Lines | (20.0) | (30.0) | |||||||||||||||||||||||||||
Homeowners | — | — | |||||||||||||||||||||||||||
Personal automobile | — | — | |||||||||||||||||||||||||||
Total Standard Personal Lines | — | — | |||||||||||||||||||||||||||
E&S | — | (5.0) | |||||||||||||||||||||||||||
Total (favorable) prior year casualty reserve development | $ | (20.0) | (35.0) | ||||||||||||||||||||||||||
(Favorable) impact on loss ratio | (2.5) | pts | (4.8) |
Quarter ended June 30, | Change % or Points | Six Months ended June 30, | Change % or Points | Quarter ended March 31, | Change % or Points | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | 2021 | 2020 | 2021 | 2020 | ($ in thousands) | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance Segments Results: | Insurance Segments Results: | Insurance Segments Results: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NPW | NPW | $ | 677,128 | 583,342 | 16 | % | $ | 1,342,694 | 1,101,774 | 22 | % | NPW | $ | 737,639 | 665,565 | 11 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NPE | NPE | 599,754 | 501,004 | 20 | 1,188,895 | 1,017,584 | 17 | NPE | 661,469 | 589,141 | 12 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less: | Less: | Less: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss and loss expense incurred | Loss and loss expense incurred | 329,817 | 307,037 | 7 | 654,667 | 619,195 | 6 | Loss and loss expense incurred | 399,474 | 324,850 | 23 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net underwriting expenses incurred | Net underwriting expenses incurred | 200,817 | 176,579 | 14 | 394,386 | 363,090 | 9 | Net underwriting expenses incurred | 218,032 | 193,569 | 13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends to policyholders | Dividends to policyholders | 1,182 | 658 | 80 | 2,405 | 1,443 | 67 | Dividends to policyholders | 1,579 | 1,223 | 29 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Underwriting income | Underwriting income | $ | 67,938 | 16,730 | 306 | % | $ | 137,437 | 33,856 | 306 | % | Underwriting income | 42,384 | 69,499 | (39) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Combined Ratios: | Combined Ratios: | Combined Ratios: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss and loss expense ratio | Loss and loss expense ratio | 55.0 | % | 61.4 | (6.4) | pts | 55.0 | % | 60.9 | (5.9) | pts | Loss and loss expense ratio | 60.4 | % | 55.1 | 5.3 | pts | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Underwriting expense ratio | Underwriting expense ratio | 33.5 | 35.2 | (1.7) | 33.2 | 35.7 | (2.5) | Underwriting expense ratio | 33.0 | 32.9 | 0.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends to policyholders ratio | Dividends to policyholders ratio | 0.2 | 0.1 | 0.1 | 0.2 | 0.1 | 0.1 | Dividends to policyholders ratio | 0.2 | 0.2 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Combined ratio | Combined ratio | 88.7 | 96.7 | (8.0) | 88.4 | 96.7 | (8.3) | Combined ratio | 93.6 | 88.2 | 5.4 |
Quarter ended June 30, | Change % or Points | Six Months ended June 30, | Change % or Points | ||||||||||||||||||||||||||||||||||||||
($ in millions) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||
Direct new business | $ | 128.7 | 109.9 | 17 | % | $ | 243.2 | 225.3 | 8 | % | |||||||||||||||||||||||||||||||
Retention | 85 | % | 86 | (1) | pts | 85 | % | 85 | — | pts | |||||||||||||||||||||||||||||||
Renewal pure price increases | 5.5 | 3.9 | 1.6 | 5.5 | 4.0 | 1.5 | |||||||||||||||||||||||||||||||||||
Quarter ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||
Direct new business premiums | $ | 128.4 | 114.5 | |||||||||||||||||||||||||||||||||||||||||
Retention | 87 | % | 86 | |||||||||||||||||||||||||||||||||||||||||
Renewal pure price increases on NPW | 4.8 | 5.5 | ||||||||||||||||||||||||||||||||||||||||||
Second Quarter 2021 | Second Quarter 2020 | ||||||||||||||||||||||||||||
($ in millions) | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Change in Ratio | ||||||||||||||||||||||||
Catastrophe losses | $ | 11.3 | 1.9 | pts | $ | 50.7 | 10.1 | pts | (8.2) | pts | |||||||||||||||||||
Non-catastrophe property loss and loss expenses | 74.6 | 12.4 | 60.9 | 12.2 | 0.2 | ||||||||||||||||||||||||
(Favorable) prior year casualty reserve development | (15.0) | (2.5) | (15.0) | (3.0) | 0.5 | ||||||||||||||||||||||||
Total | 70.9 | 11.8 | 96.6 | 19.3 | (7.5) | ||||||||||||||||||||||||
Six Months 2021 | Six Months 2020 | ||||||||||||||||||||||||||||
($ in millions) | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Change in Ratio | ||||||||||||||||||||||||
Catastrophe losses | $ | 27.3 | 2.3 | pts | $ | 71.4 | 7.0 | pts | (4.7) | pts | |||||||||||||||||||
Non-catastrophe property loss and loss expenses | 158.3 | 13.3 | 140.5 | 13.8 | (0.5) | ||||||||||||||||||||||||
(Favorable) prior year casualty reserve development | (45.0) | (3.8) | (25.0) | (2.5) | (1.3) | ||||||||||||||||||||||||
Total | 140.6 | 11.8 | 186.9 | 18.3 | (6.5) |
First Quarter 2022 | First Quarter 2021 | ||||||||||||||||||||||||||||||||||
($ in millions) | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Change in Ratio | ||||||||||||||||||||||||||||||
Net catastrophe losses | $ | 14.9 | 2.3 | pts | $ | 16.1 | 2.7 | (0.4) | pts | ||||||||||||||||||||||||||
Non-catastrophe property loss and loss expenses | 115.7 | 17.5 | 83.6 | 14.2 | 3.3 | ||||||||||||||||||||||||||||||
(Favorable) prior year casualty reserve development | (20.0) | (3.0) | (30.0) | (5.1) | 2.1 | ||||||||||||||||||||||||||||||
Total | 110.6 | 16.8 | 69.7 | 11.8 | 5.0 | ||||||||||||||||||||||||||||||
General Liability | ||||||||||||||||||||||||||||||||||||||||||||
Quarter ended June 30, | Change % or Points | Six Months ended June 30, | Change % or Points | |||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||
NPW | $ | 225,503 | 200,917 | 12 | % | $ | 447,565 | 351,711 | 27 | % | ||||||||||||||||||||||||||||||||||
Direct new business | 37,174 | 31,468 | 18 | 71,428 | 67,354 | 6 | ||||||||||||||||||||||||||||||||||||||
Retention | 85 | % | 87 | (2) | pts | 85 | % | 86 | (1) | pts | ||||||||||||||||||||||||||||||||||
Renewal pure price increases | 4.6 | 3.8 | 0.8 | 4.6 | 3.8 | 0.8 | ||||||||||||||||||||||||||||||||||||||
NPE | $ | 197,293 | 163,273 | 21 | % | $ | 390,813 | 327,853 | 19 | % | ||||||||||||||||||||||||||||||||||
Underwriting income | 31,045 | 25,108 | 24 | 67,618 | 38,182 | 77 | ||||||||||||||||||||||||||||||||||||||
Combined ratio | 84.3 | % | 84.6 | (0.3) | pts | 82.7 | % | 88.4 | % | (5.7) | pts | |||||||||||||||||||||||||||||||||
% of total Standard Commercial Lines NPW | 33 | 34 | 33 | 32 |
General Liability | |||||||||||||||||||||||||||||||||||||||||||||||
Quarter ended March 31, | Change % or Points1 | ||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||
NPW | $ | 244,118 | 222,062 | 10 | % | ||||||||||||||||||||||||||||||||||||||||||
Direct new business | 37,883 | 34,253 | n/a | ||||||||||||||||||||||||||||||||||||||||||||
Retention | 87 | % | 86 | n/a | |||||||||||||||||||||||||||||||||||||||||||
Renewal pure price increases | 4.0 | 4.4 | n/a | ||||||||||||||||||||||||||||||||||||||||||||
NPE | $ | 216,325 | 193,520 | 12 | % | ||||||||||||||||||||||||||||||||||||||||||
Underwriting income | 28,817 | 36,573 | (21) | ||||||||||||||||||||||||||||||||||||||||||||
Combined ratio | 86.7 | % | 81.1 | 5.6 | pts | ||||||||||||||||||||||||||||||||||||||||||
% of total Standard Commercial Lines NPW | 33 | 33 |
First Quarter 2022 | First Quarter 2021 | |||||||||||||||||||||||||||||||||||||
($ in millions) | Loss and Loss Expense Incurred | Impact on Combined Ratio | Loss and Loss Expense Incurred | Impact on Combined Ratio | Change in Ratio | |||||||||||||||||||||||||||||||||
(Favorable) prior year casualty reserve development | $ | (5.0) | (2.3) | pts | $ | (15.0) | (7.8) | 5.5 | pts | |||||||||||||||||||||||||||||
Commercial Automobile | |||||||||||||||||||||||||||||||||||||||||||||||
Quarter ended March 31, | Change % or Points1 | ||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||
NPW | $ | 212,595 | 190,646 | 12 | % | ||||||||||||||||||||||||||||||||||||||||||
Direct new business | 31,413 | 28,746 | n/a | ||||||||||||||||||||||||||||||||||||||||||||
Retention | 87 | % | 87 | n/a | |||||||||||||||||||||||||||||||||||||||||||
Renewal pure price increases | 7.4 | 9.0 | n/a | ||||||||||||||||||||||||||||||||||||||||||||
NPE | $ | 193,830 | 171,881 | 13 | % | ||||||||||||||||||||||||||||||||||||||||||
Underwriting (loss) income | (10,918) | 2,792 | (491) | ||||||||||||||||||||||||||||||||||||||||||||
Combined ratio | 105.6 | % | 98.4 | 7.2 | pts | ||||||||||||||||||||||||||||||||||||||||||
% of total Standard Commercial Lines NPW | 29 | 29 |
First Quarter 2022 | First Quarter 2021 | |||||||||||||||||||||||||||||||||||||
($ in millions) | Loss and Loss Expense Incurred | Impact on Combined Ratio | Loss and Loss Expense Incurred | Impact on Combined Ratio | Change in Ratio | |||||||||||||||||||||||||||||||||
Net catastrophe losses | $ | 0.3 | 0.2 | pts | $ | 0.2 | 0.1 | 0.1 | pts | |||||||||||||||||||||||||||||
Non-catastrophe property loss and loss expenses | 43.0 | 22.2 | 29.4 | 17.1 | 5.1 | |||||||||||||||||||||||||||||||||
Total | $ | 43.3 | 22.4 | $ | 29.6 | 17.2 | 5.2 | |||||||||||||||||||||||||||||||
Commercial Property | |||||||||||||||||||||||||||||||||||||||||||||||
Quarter ended March 31, | Change % or Points1 | ||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||
NPW | $ | 130,905 | 113,382 | 15 | % | ||||||||||||||||||||||||||||||||||||||||||
Direct new business | 27,817 | 24,270 | n/a | ||||||||||||||||||||||||||||||||||||||||||||
Retention | 86 | % | 85 | n/a | |||||||||||||||||||||||||||||||||||||||||||
Renewal pure price increases | 6.2 | 6.0 | n/a | ||||||||||||||||||||||||||||||||||||||||||||
NPE | $ | 120,062 | 102,810 | 17 | % | ||||||||||||||||||||||||||||||||||||||||||
Underwriting income | 176 | 6,766 | 97 | ||||||||||||||||||||||||||||||||||||||||||||
Combined ratio | 99.9 | % | 93.4 | 6.5 | pts | ||||||||||||||||||||||||||||||||||||||||||
% of total Standard Commercial Lines NPW | 18 | 17 |
First Quarter 2022 | First Quarter 2021 | |||||||||||||||||||||||||||||||||||||
($ in millions) | Loss and Loss Expense Incurred | Impact on Combined Ratio | Loss and Loss Expense Incurred | Impact on Combined Ratio | Change in Ratio | |||||||||||||||||||||||||||||||||
Net catastrophe losses | $ | 12.9 | 10.8 | pts | 13.7 | 13.3 | (2.5) | pts | ||||||||||||||||||||||||||||||
Non-catastrophe property loss and loss expenses | 63.1 | 52.5 | 44.6 | 43.4 | 9.1 | |||||||||||||||||||||||||||||||||
Total | $ | 76.0 | 63.3 | 58.3 | 56.7 | 6.6 | ||||||||||||||||||||||||||||||||
Second Quarter 2021 | Second Quarter 2020 | |||||||||||||||||||||||||
($ in millions) | Loss and Loss Expense Incurred | Impact on Combined Ratio | Loss and Loss Expense Incurred | Impact on Combined Ratio | Change in Ratio | |||||||||||||||||||||
(Favorable) prior year casualty reserve development | $ | (10.0) | (5.1) | pts | $ | (10.0) | (6.1) | pts | 1.0 | pts | ||||||||||||||||
Six Months 2021 | Six Months 2020 | |||||||||||||||||||||||||
($ in millions) | Loss and Loss Expense Incurred | Impact on Combined Ratio | Loss and Loss Expense Incurred | Impact on Combined Ratio | Change in Ratio | |||||||||||||||||||||
(Favorable) prior year casualty reserve development | $ | (25.0) | (6.4) | pts | $ | (10.0) | (3.1) | pts | (3.3) | pts |
Workers Compensation | |||||||||||||||||||||||||||||||||||||||||||||||
Quarter ended March 31, | Change % or Points1 | ||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||
NPW | $ | 97,459 | 92,291 | 6 | % | ||||||||||||||||||||||||||||||||||||||||||
Direct new business | 16,946 | 15,946 | n/a | ||||||||||||||||||||||||||||||||||||||||||||
Retention | 87 | % | 86 | n/a | |||||||||||||||||||||||||||||||||||||||||||
Renewal pure price increases | (1.1) | 0.2 | n/a | ||||||||||||||||||||||||||||||||||||||||||||
NPE | $ | 84,680 | 78,190 | 8 | % | ||||||||||||||||||||||||||||||||||||||||||
Underwriting income | 15,905 | 20,418 | (22) | ||||||||||||||||||||||||||||||||||||||||||||
Combined ratio | 81.2 | % | 73.9 | 7.3 | pts | ||||||||||||||||||||||||||||||||||||||||||
% of total Standard Commercial Lines NPW | 13 | 14 |
First Quarter 2022 | First Quarter 2021 | |||||||||||||||||||||||||||||||||||||
($ in millions) | Loss and Loss Expense Incurred | Impact on Combined Ratio | Loss and Loss Expense Incurred | Impact on Combined Ratio | Change in Ratio | |||||||||||||||||||||||||||||||||
(Favorable) prior year casualty reserve development | $ | (10.0) | (11.8) | pts | $ | (15.0) | (19.2) | 7.4 | pts | |||||||||||||||||||||||||||||
Quarter ended March 31, | Change % or Points | ||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||
Insurance Segments Results: | |||||||||||||||||||||||||||||||||||||||||||||||
NPW | $ | 65,057 | 65,077 | — | % | ||||||||||||||||||||||||||||||||||||||||||
NPE | 72,642 | 73,821 | (2) | ||||||||||||||||||||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||||||||||||||||||||
Loss and loss expense incurred | 48,547 | 47,166 | 3 | ||||||||||||||||||||||||||||||||||||||||||||
Net underwriting expenses incurred | 17,575 | 18,960 | (7) | ||||||||||||||||||||||||||||||||||||||||||||
Underwriting income | 6,520 | 7,695 | (15) | ||||||||||||||||||||||||||||||||||||||||||||
Combined Ratios: | |||||||||||||||||||||||||||||||||||||||||||||||
Loss and loss expense ratio | 66.8 | % | 63.9 | 2.9 | pts | ||||||||||||||||||||||||||||||||||||||||||
Underwriting expense ratio | 24.2 | 25.7 | (1.5) | ||||||||||||||||||||||||||||||||||||||||||||
Combined ratio | 91.0 | 89.6 | 1.4 |
Quarter ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||
Direct new business premiums1 | $ | 9.6 | 9.8 | |||||||||||||||||||||||||||||||||||||||||
Retention | 84 | % | 83 | |||||||||||||||||||||||||||||||||||||||||
Renewal pure price increases on NPW | 0.6 | 0.8 |
Commercial Automobile | ||||||||||||||||||||||||||||||||||||||||||||
Quarter ended June 30, | Change % or Points | Six Months ended June 30, | Change % or Points | |||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||
NPW | $ | 205,906 | 160,697 | 28 | % | $ | 396,552 | 329,007 | 21 | % | ||||||||||||||||||||||||||||||||||
Direct new business | 33,406 | 32,143 | 4 | 62,152 | 61,000 | 2 | ||||||||||||||||||||||||||||||||||||||
Retention | 86 | % | 86 | — | pts | 86 | % | 86 | — | pts | ||||||||||||||||||||||||||||||||||
Renewal pure price increases | 9.0 | 7.6 | 1.4 | 9.0 | 7.6 | 1.4 | ||||||||||||||||||||||||||||||||||||||
NPE | $ | 178,028 | 138,535 | 29 | % | $ | 349,909 | 288,225 | 21 | % | ||||||||||||||||||||||||||||||||||
Underwriting income (loss) | 4,241 | (7,706) | 155 | 7,033 | (8,480) | 183 | ||||||||||||||||||||||||||||||||||||||
Combined ratio | 97.6 | % | 105.6 | (8.0) | pts | 98.0 | % | 102.9 | (4.9) | pts | ||||||||||||||||||||||||||||||||||
% of total Standard Commercial Lines NPW | 30 | 28 | 30 | 30 |
Second Quarter 2021 | Second Quarter 2020 | |||||||||||||||||||||||||||||||
($ in millions) | Loss and Loss Expense Incurred | Impact on Combined Ratio | Loss and Loss Expense Incurred | Impact on Combined Ratio | Change in Ratio | |||||||||||||||||||||||||||
Catastrophe losses | $ | 0.5 | 0.3 | pts | $ | 1.1 | 0.8 | pts | (0.5) | pts | ||||||||||||||||||||||
Non-catastrophe property loss and loss expenses | 26.2 | 14.7 | 17.1 | 12.3 | 2.4 | |||||||||||||||||||||||||||
Unfavorable prior year casualty reserve development | — | — | 10.0 | 7.2 | (7.2) | |||||||||||||||||||||||||||
Total | $ | 26.7 | 15.0 | $ | 28.2 | 20.3 | (5.3) |
Six Months 2021 | Six Months 2020 | |||||||||||||||||||||||||||||||
($ in millions) | Loss and Loss Expense Incurred | Impact on Combined Ratio | Loss and Loss Expense Incurred | Impact on Combined Ratio | Change in Ratio | |||||||||||||||||||||||||||
Catastrophe losses | $ | 0.7 | 0.2 | pts | $ | 1.4 | 0.5 | pts | (0.3) | pts | ||||||||||||||||||||||
Non-catastrophe property loss and loss expenses | 55.6 | 15.9 | 40.1 | 13.9 | 2.0 | |||||||||||||||||||||||||||
Unfavorable prior year casualty reserve development | — | — | 10.0 | 3.5 | (3.5) | |||||||||||||||||||||||||||
Total | $ | 56.3 | 16.1 | $ | 51.5 | 17.9 | (1.8) |
Workers Compensation | ||||||||||||||||||||||||||||||||||||||||||||
Quarter ended June 30, | Change % or Points | Six Months ended June 30, | Change % or Points | |||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||
NPW | $ | 80,491 | 74,984 | 7 | % | $ | 172,782 | 126,180 | 37 | % | ||||||||||||||||||||||||||||||||||
Direct new business | 16,002 | 12,612 | 27 | 31,947 | 27,969 | 14 | ||||||||||||||||||||||||||||||||||||||
Retention | 86 | % | 85 | 1 | pts | 86 | % | 84 | 2 | pts | ||||||||||||||||||||||||||||||||||
Renewal pure price (decreases) increases | (0.1) | (2.9) | 2.8 | 0.1 | (2.7) | 2.8 | ||||||||||||||||||||||||||||||||||||||
NPE | $ | 74,337 | 61,906 | 20 | % | $ | 152,527 | 128,612 | 19 | % | ||||||||||||||||||||||||||||||||||
Underwriting income | 8,686 | 15,720 | (45) | 29,104 | 26,755 | 9 | ||||||||||||||||||||||||||||||||||||||
Combined ratio | 88.3 | % | 74.6 | 13.7 | pts | 80.9 | % | 79.2 | 1.7 | pts | ||||||||||||||||||||||||||||||||||
% of total Standard Commercial Lines NPW | 12 | 13 | 13 | 11 |
Second Quarter 2021 | Second Quarter 2020 | ||||||||||||||||||||||||||||
($ in millions) | Loss and Loss Expense Incurred | Impact on Combined Ratio | Loss and Loss Expense Incurred | Impact on Combined Ratio | Change in Ratio | ||||||||||||||||||||||||
(Favorable) prior year casualty reserve development | $ | (5.0) | (6.7) | pts | $ | (15.0) | (24.2) | pts | 17.5 | pts | |||||||||||||||||||
Six Months 2021 | Six Months 2020 | ||||||||||||||||||||||||||||
($ in millions) | Loss and Loss Expense Incurred | Impact on Combined Ratio | Loss and Loss Expense Incurred | Impact on Combined Ratio | Change in Ratio | ||||||||||||||||||||||||
(Favorable) prior year casualty reserve development | $ | (20.0) | (13.1) | pts | $ | (25.0) | (19.4) | pts | 6.3 | pts |
Commercial Property | ||||||||||||||||||||||||||||||||||||||||||||
Quarter ended June 30, | Change % or Points | Six Months ended June 30, | Change % or Points | |||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||
NPW | $ | 119,140 | 104,060 | 14 | % | $ | 232,524 | 207,186 | 12 | % | ||||||||||||||||||||||||||||||||||
Direct new business | 29,943 | 23,858 | 26 | 54,212 | 48,444 | 12 | ||||||||||||||||||||||||||||||||||||||
Retention | 84 | % | 84 | — | pts | 84 | % | 84 | — | pts | ||||||||||||||||||||||||||||||||||
Renewal pure price increases | 5.6 | 3.9 | 1.7 | 5.8 | 4.0 | 1.8 | ||||||||||||||||||||||||||||||||||||||
NPE | $ | 106,113 | 95,413 | 11 | % | $ | 208,923 | 189,282 | 10 | % | ||||||||||||||||||||||||||||||||||
Underwriting income (loss) | 16,820 | (14,339) | 217 | 23,586 | (22,891) | 203 | ||||||||||||||||||||||||||||||||||||||
Combined ratio | 84.1 | % | 115.0 | (30.9) | pts | 88.7 | % | 112.1 | (23.4) | pts | ||||||||||||||||||||||||||||||||||
% of total Standard Commercial Lines NPW | 18 | 18 | 17 | 19 |
Second Quarter 2021 | Second Quarter 2020 | |||||||||||||||||||||||||||||||
($ in millions) | Loss and Loss Expense Incurred | Impact on Combined Ratio | Loss and Loss Expense Incurred | Impact on Combined Ratio | Change in Ratio | |||||||||||||||||||||||||||
Catastrophe losses | $ | 9.2 | 8.6 | pts | 35.3 | 37.0 | pts | (28.4) | pts | |||||||||||||||||||||||
Non-catastrophe property loss and loss expenses | 40.3 | 38.0 | 38.3 | 40.1 | (2.1) | |||||||||||||||||||||||||||
Total | $ | 49.5 | 46.6 | 73.6 | 77.1 | (30.5) | ||||||||||||||||||||||||||
Six Months 2021 | Six Months 2020 | |||||||||||||||||||||||||||||||
($ in millions) | Loss and Loss Expense Incurred | Impact on Combined Ratio | Loss and Loss Expense Incurred | Impact on Combined Ratio | Change in Ratio | |||||||||||||||||||||||||||
Catastrophe losses | $ | 22.9 | 10.9 | pts | 55.0 | 29.0 | pts | (18.1) | pts | |||||||||||||||||||||||
Non-catastrophe property loss and loss expenses | 84.9 | 40.6 | 83.9 | 44.3 | (3.7) | |||||||||||||||||||||||||||
Total | $ | 107.8 | 51.5 | 138.9 | 73.3 | (21.8) |
First Quarter 2022 | First Quarter 2021 | |||||||||||||||||||||||||||||||||||||
($ in millions) | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Change in Ratio | |||||||||||||||||||||||||||||||||
Net catastrophe losses | $ | 4.3 | 6.0 | pts | 5.6 | 7.6 | (1.6) | pts | ||||||||||||||||||||||||||||||
Non-catastrophe property loss and loss expenses | 25.6 | 35.2 | 23.1 | 31.3 | 3.9 | |||||||||||||||||||||||||||||||||
Total | $ | 29.9 | 41.2 | 28.7 | 38.9 | 2.3 | ||||||||||||||||||||||||||||||||
Quarter ended March 31, | Change % or Points | ||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||
Insurance Segments Results: | |||||||||||||||||||||||||||||||||||||||||||||||
NPW | $ | 87,102 | 67,536 | 29 | % | ||||||||||||||||||||||||||||||||||||||||||
NPE | 78,172 | 61,998 | 26 | ||||||||||||||||||||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||||||||||||||||||||
Loss and loss expense incurred | 46,215 | 41,385 | 12 | ||||||||||||||||||||||||||||||||||||||||||||
Net underwriting expenses incurred | 25,032 | 20,097 | 25 | ||||||||||||||||||||||||||||||||||||||||||||
Underwriting income (loss) | 6,925 | 516 | 1,242 | ||||||||||||||||||||||||||||||||||||||||||||
Combined Ratios: | |||||||||||||||||||||||||||||||||||||||||||||||
Loss and loss expense ratio | 59.1 | % | 66.8 | (7.7) | pts | ||||||||||||||||||||||||||||||||||||||||||
Underwriting expense ratio | 32.0 | 32.4 | (0.4) | ||||||||||||||||||||||||||||||||||||||||||||
Combined ratio | 91.1 | 99.2 | (8.1) |
Quarter ended March 31, | |||||||||||||||||||||||||||||||||||||||||
($ in millions) | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||
Direct new business premiums | $ | 39.2 | 31.3 | ||||||||||||||||||||||||||||||||||||||
Overall renewal price increases on NPW | 7.7 | 7.3 |
Quarter ended June 30, | Change % or Points | Six Months ended June 30, | Change % or Points | ||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||
Insurance Segments Results: | |||||||||||||||||||||||||||||||||||||||||||||||
NPW | $ | 78,559 | 78,173 | — | % | $ | 143,636 | 145,813 | (1) | % | |||||||||||||||||||||||||||||||||||||
NPE | 73,293 | 71,633 | 2 | 147,114 | 147,761 | — | |||||||||||||||||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||||||||||||||||||||
Loss and loss expense incurred | 47,984 | 58,151 | (17) | 95,150 | 112,483 | (15) | |||||||||||||||||||||||||||||||||||||||||
Net underwriting expenses incurred | 19,665 | 19,807 | (1) | 38,625 | 41,216 | (6) | |||||||||||||||||||||||||||||||||||||||||
Underwriting income (loss) | $ | 5,644 | (6,325) | 189 | % | $ | 13,339 | (5,938) | 325 | % | |||||||||||||||||||||||||||||||||||||
Combined Ratios: | |||||||||||||||||||||||||||||||||||||||||||||||
Loss and loss expense ratio | 65.5 | % | 81.1 | (15.6) | pts | 64.6 | % | 76.1 | (11.5) | pts | |||||||||||||||||||||||||||||||||||||
Underwriting expense ratio | 26.8 | 27.7 | (0.9) | 26.3 | 27.9 | (1.6) | |||||||||||||||||||||||||||||||||||||||||
Combined ratio | 92.3 | 108.8 | (16.5) | 90.9 | 104.0 | (13.1) |
Quarter ended June 30, | Change % or Points | Six Months ended June 30, | Change % or Points | |||||||||||||||||||||||||||||||||||
($ in millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||
Direct new business | $ | 10.9 | 11.8 | (8) | % | $ | 20.8 | 21.8 | (5) | % | ||||||||||||||||||||||||||||
Retention | 84 | % | 84 | — | pts | 83 | % | 83 | — | pts | ||||||||||||||||||||||||||||
Renewal pure price increases | 1.1 | 3.1 | (2.0) | 0.9 | 3.4 | (2.5) |
Second Quarter 2021 | Second Quarter 2020 | ||||||||||||||||||||||||||||
($ in millions) | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Change in Ratio | ||||||||||||||||||||||||
Catastrophe losses | $ | 5.0 | 6.8 | pts | 26.0 | 36.2 | pts | (29.4) | pts | ||||||||||||||||||||
Non-catastrophe property loss and loss expenses | 24.9 | 34.0 | 15.3 | 21.4 | 12.6 | ||||||||||||||||||||||||
Total | $ | 29.9 | 40.8 | 41.3 | 57.6 | (16.8) | |||||||||||||||||||||||
Six Months 2021 | Six Months 2020 | ||||||||||||||||||||||||||||
($ in millions) | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Change in Ratio | ||||||||||||||||||||||||
Catastrophe losses | $ | 10.6 | 7.2 | pts | 37.9 | 25.7 | pts | (18.5) | pts | ||||||||||||||||||||
Non-catastrophe property loss and loss expenses | 48.0 | 32.6 | 38.1 | 25.8 | 6.8 | ||||||||||||||||||||||||
Total | $ | 58.6 | 39.8 | 76.0 | 51.5 | (11.7) | |||||||||||||||||||||||
Quarter ended June 30, | Change % or Points | Six Months ended June 30, | Change % or Points | |||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||
Insurance Segments Results: | ||||||||||||||||||||||||||||||||||||||||||||
NPW | $ | 77,518 | 63,237 | 23 | % | $ | 145,053 | 124,492 | 17 | % | ||||||||||||||||||||||||||||||||||
NPE | 67,471 | 58,034 | 16 | 129,469 | 117,029 | 11 | ||||||||||||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||||||
Loss and loss expense incurred | 43,822 | 38,761 | 13 | 85,207 | 72,595 | 17 | ||||||||||||||||||||||||||||||||||||||
Net underwriting expenses incurred | 21,343 | 19,805 | 8 | 41,440 | 41,122 | 1 | ||||||||||||||||||||||||||||||||||||||
Underwriting income (loss) | $ | 2,306 | (532) | 533 | % | $ | 2,822 | 3,312 | (15) | % | ||||||||||||||||||||||||||||||||||
Combined Ratios: | ||||||||||||||||||||||||||||||||||||||||||||
Loss and loss expense ratio | 65.0 | % | 66.8 | (1.8) | pts | 65.8 | % | 62.1 | 3.7 | pts | ||||||||||||||||||||||||||||||||||
Underwriting expense ratio | 31.6 | 34.1 | (2.5) | 32.0 | 35.1 | (3.1) | ||||||||||||||||||||||||||||||||||||||
Combined ratio | 96.6 | 100.9 | (4.3) | 97.8 | 97.2 | 0.6 |
Quarter ended June 30, | Change % or Points | Six Months ended June 30, | Change % or Points | |||||||||||||||||||||||||||||||||||
($ in millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||
Direct new business | $ | 33.7 | 28.3 | 19 | % | $ | 65.0 | 55.8 | 16 | % | ||||||||||||||||||||||||||||
Renewal pure price increases | 6.9 | 5.5 | 1.4 | 7.1 | 4.8 | 2.3 |
Second Quarter 2021 | Second Quarter 2020 | ||||||||||||||||||||||||||||
($ in millions) | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Change in Ratio | ||||||||||||||||||||||||
Catastrophe losses | $ | 6.4 | 9.5 | pts | $ | 6.5 | 11.3 | pts | (1.8) | pts | |||||||||||||||||||
Non-catastrophe property loss and loss expenses | 7.8 | 11.5 | 5.6 | 9.6 | 1.9 | ||||||||||||||||||||||||
(Favorable) prior year casualty reserve development | (2.0) | (3.0) | — | — | (3.0) | ||||||||||||||||||||||||
Total | $ | 12.2 | 18.0 | $ | 12.1 | 20.9 | (2.9) | ||||||||||||||||||||||
Six Months 2021 | Six Months 2020 | ||||||||||||||||||||||||||||
($ in millions) | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Change in Ratio | ||||||||||||||||||||||||
Catastrophe losses | $ | 14.7 | 11.3 | pts | $ | 7.0 | 6.0 | pts | 5.3 | pts | |||||||||||||||||||
Non-catastrophe property loss and loss expenses | 16.6 | 12.9 | 11.3 | 9.7 | 3.2 | ||||||||||||||||||||||||
(Favorable) prior year casualty reserve development | (7.0) | (5.4) | — | — | (5.4) | ||||||||||||||||||||||||
Total | $ | 24.3 | 18.8 | $ | 18.3 | 15.7 | 3.1 |
First Quarter 2022 | First Quarter 2021 | |||||||||||||||||||||||||||||||||||||
($ in millions) | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Change in Ratio | |||||||||||||||||||||||||||||||||
Net catastrophe losses | $ | 1.3 | 1.7 | pts | $ | 8.3 | 13.3 | (11.6) | pts | |||||||||||||||||||||||||||||
Non-catastrophe property loss and loss expenses | 9.1 | 11.6 | 8.9 | 14.3 | (2.7) | |||||||||||||||||||||||||||||||||
(Favorable) prior year casualty reserve development | — | — | (5.0) | (8.1) | 8.1 | |||||||||||||||||||||||||||||||||
Total | $ | 10.4 | 13.3 | $ | 12.2 | 19.5 | (6.2) | |||||||||||||||||||||||||||||||
Total Invested Assets | |||||||||||||||||||||||
($ in thousands) | June 30, 2021 | December 31, 2020 | Change | ||||||||||||||||||||
Total invested assets | $ | 7,755,441 | 7,505,599 | 3 | % | ||||||||||||||||||
Invested assets per dollar of common stockholders' equity | 2.88 | 2.96 | (3) | ||||||||||||||||||||
Unrealized gain – before tax1 | 348,440 | 395,207 | (12) | ||||||||||||||||||||
Unrealized gain – after tax1 | 275,268 | 312,214 | (12) |
Total Invested Assets | |||||||||||||||||||||||
($ in thousands) | March 31, 2022 | December 31, 2021 | Change | ||||||||||||||||||||
Total invested assets | $ | 7,774,711 | 8,026,988 | (3) | % | ||||||||||||||||||
Invested assets per dollar of common stockholders' equity | 3.02 | 2.88 | 5 | ||||||||||||||||||||
Unrealized (loss) gain – before tax1 | (56,904) | 255,658 | (122) | ||||||||||||||||||||
Unrealized (loss) gain – after tax1 | (44,954) | 201,970 | (122) |
Quarter ended June 30, | Change % or Points | Six Months ended June 30, | Change % or Points | ||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||
Fixed income securities | $ | 52,608 | 51,079 | 3 | % | $ | 105,431 | 101,332 | 4 | % | |||||||||||||||||||||||||||||||
Commercial mortgage loans ("CMLs") | 695 | 156 | 346 | 1,209 | 218 | 455 | |||||||||||||||||||||||||||||||||||
Equity securities | 2,982 | 2,023 | 47 | 5,470 | 3,575 | 53 | |||||||||||||||||||||||||||||||||||
Short-term investments | 55 | 420 | (87) | 140 | 1,586 | (91) | |||||||||||||||||||||||||||||||||||
Other investments | 32,860 | (15,846) | (307) | 50,293 | (9,504) | (629) | |||||||||||||||||||||||||||||||||||
Investment expenses | (5,469) | (3,388) | 61 | (9,096) | (6,796) | 34 | |||||||||||||||||||||||||||||||||||
Net investment income earned – before tax | 83,731 | 34,444 | 143 | 153,447 | 90,411 | 70 | |||||||||||||||||||||||||||||||||||
Net investment income tax expense | (16,290) | (5,902) | 176 | (29,663) | (16,386) | 81 | |||||||||||||||||||||||||||||||||||
Net investment income earned – after tax | $ | 67,441 | 28,542 | 136 | $ | 123,784 | 74,025 | 67 | |||||||||||||||||||||||||||||||||
Effective tax rate | 19.5 | % | 17.1 | 2.4 | pts | 19.3 | % | 18.1 | 1.2 | pts | |||||||||||||||||||||||||||||||
Annualized after-tax yield on fixed income investments | 2.6 | 2.7 | (0.1) | 2.6 | 2.6 | — | |||||||||||||||||||||||||||||||||||
Annualized after-tax yield on investment portfolio | 3.5 | 1.6 | 1.9 | 3.2 | 2.1 | 1.1 |
Quarter ended March 31, | Change % or Points | ||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||
Fixed income securities | $ | 53,925 | 52,823 | 2 | % | ||||||||||||||||||||||||||||||||||||
Commercial mortgage loans ("CMLs") | 970 | 514 | 89 | ||||||||||||||||||||||||||||||||||||||
Equity securities | 2,418 | 2,488 | (3) | ||||||||||||||||||||||||||||||||||||||
Short-term investments | 101 | 85 | 19 | ||||||||||||||||||||||||||||||||||||||
Other investments | 19,305 | 17,433 | 11 | ||||||||||||||||||||||||||||||||||||||
Investment expenses | (4,117) | (3,627) | 14 | ||||||||||||||||||||||||||||||||||||||
Net investment income earned – before tax | 72,602 | 69,716 | 4 | ||||||||||||||||||||||||||||||||||||||
Net investment income tax expense | (14,087) | (13,373) | 5 | ||||||||||||||||||||||||||||||||||||||
Net investment income earned – after tax | $ | 58,515 | 56,343 | 4 | |||||||||||||||||||||||||||||||||||||
Effective tax rate | 19.4 | % | 19.2 | 0.2 | pts | ||||||||||||||||||||||||||||||||||||
Annualized after-tax yield on fixed income investments | 2.6 | 2.6 | — | ||||||||||||||||||||||||||||||||||||||
Annualized after-tax yield on investment portfolio | 3.0 | 3.0 | — |
Quarter ended June 30, | Change % | Six Months ended June 30, | Change % | |||||||||||||||||||||||||||||||||||
($ in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||
Net realized gains (losses) on disposals | $ | 268 | 2,615 | (90) | % | $ | (527) | 6,715 | (108) | % | ||||||||||||||||||||||||||||
Net unrealized gains (losses) equity securities | 7,661 | 5,701 | 34 | 18,941 | (11,436) | (266) | ||||||||||||||||||||||||||||||||
Net credit loss benefit (expense) on fixed income securities, AFS | 2,272 | 4,923 | (54) | (2,725) | (10,864) | (75) | ||||||||||||||||||||||||||||||||
Net credit loss (expense) benefit on fixed income securities, HTM | (53) | 1 | N/M | (60) | 1 | N/M | ||||||||||||||||||||||||||||||||
Net credit loss benefit (expense) on CMLs | — | 22 | (100) | — | (218) | (100) | ||||||||||||||||||||||||||||||||
Losses on securities for which we have the intent to sell | (91) | (613) | (85) | (453) | (16,215) | (97) | ||||||||||||||||||||||||||||||||
Total net realized and unrealized gains (losses) | $ | 10,057 | 12,649 | (20) | $ | 15,176 | (32,017) | (147) |
Quarter ended March 31, | Change % | |||||||||||||||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||
Net realized losses on disposals | $ | (11,363) | (795) | 1,329 | % | |||||||||||||||||||||||||||||||||
Net unrealized (losses) gains on equity securities | (2,154) | 11,280 | (119) | |||||||||||||||||||||||||||||||||||
Net credit loss expense on fixed income securities, AFS | (22,052) | (4,997) | 341 | |||||||||||||||||||||||||||||||||||
Net credit loss expense on fixed income securities, held-to-maturity | 14 | (7) | (300) | |||||||||||||||||||||||||||||||||||
Losses on securities for which we have the intent to sell | (4,797) | (362) | 1,225 | |||||||||||||||||||||||||||||||||||
Total net realized and unrealized investment (losses) gains | $ | (40,352) | 5,119 | (888) |
Quarter ended June 30, | Six Months ended June 30, | |||||||||||||||||||||||||
($ in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Tax at statutory rate | $ | 32,172 | 8,965 | $ | 60,655 | 12,325 | ||||||||||||||||||||
Tax-advantaged interest | (1,139) | (1,171) | (2,317) | (2,385) | ||||||||||||||||||||||
Dividends received deduction | (167) | (165) | (276) | (220) | ||||||||||||||||||||||
Executive compensation | 763 | 365 | 970 | 716 | ||||||||||||||||||||||
Stock-based compensation | (160) | 51 | (623) | (1,830) | ||||||||||||||||||||||
Other | (154) | 465 | (732) | 665 | ||||||||||||||||||||||
Federal income tax expense | $ | 31,315 | 8,510 | $ | 57,677 | 9,271 | ||||||||||||||||||||
Income before federal income tax, less preferred stock dividends | $ | 150,898 | 42,693 | $ | 284,077 | 58,690 | ||||||||||||||||||||
Effective tax rate | 20.8 | % | 19.9 | 20.3 | 15.8 |
Quarter ended March 31, | ||||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | ||||||||||||||||||||||||
Tax at statutory rate | $ | 14,677 | 28,483 | |||||||||||||||||||||||
Tax-advantaged interest | (1,074) | (1,178) | ||||||||||||||||||||||||
Dividends received deduction | (106) | (109) | ||||||||||||||||||||||||
Executive compensation | 258 | 207 | ||||||||||||||||||||||||
Stock-based compensation | (731) | (464) | ||||||||||||||||||||||||
Other | 536 | (577) | ||||||||||||||||||||||||
Federal income tax expense | 13,560 | 26,362 | ||||||||||||||||||||||||
Income before federal income tax, less preferred stock dividends | 67,590 | 133,179 | ||||||||||||||||||||||||
Effective tax rate | 20.1 | % | 19.8 |
Branch | Insurance Subsidiary Member | ||||
FHLBI | Selective Insurance Company of South Carolina ("SICSC")1 Selective Insurance Company of the Southeast ("SICSE")1 | ||||
FHLBNY | Selective Insurance Company of America ("SICA") Selective Insurance Company of New York ("SICNY") |
($ in millions) | Amount of Obligation | Year of Expiration of Obligation | |||||||||
Alternative and other investments | $ | 238.0 | 2036 | ||||||||
Non-publicly traded collateralized loan obligations in our fixed income securities portfolio | 60.0 | 2037 | |||||||||
Non-publicly traded common stock within our equity portfolio | 16.4 | 2027 | |||||||||
CMLs | 6.3 | 2024 | |||||||||
Privately-placed corporate securities | 65.1 | 2026 | |||||||||
Total | $ | 385.8 |
NRSRO | Financial Strength Rating | Outlook | ||||||||||||
AM Best Company | ||||||||||||||
Moody's Investors Services | A2 | Stable | ||||||||||||
Fitch Ratings ("Fitch") | A+ | Stable | ||||||||||||
Standard & Poor's Global Ratings | A | Stable |
($ in millions) | Amount of Obligation | Year of Expiration of Obligation | |||||||||
Alternative and other investments | $ | 222.9 | 2036 | ||||||||
Non-publicly traded collateralized loan obligations in our fixed income securities portfolio | 39.9 | 2030 | |||||||||
Non-publicly traded common stock within our equity portfolio | 9.4 | 2027 | |||||||||
CMLs | 5.4 | 2023 | |||||||||
Privately-placed corporate securities | 16.0 | Less than a year | |||||||||
Total | $ | 293.6 |
Period | Total Number of Shares Purchased1 | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Announced Programs (in millions)2 | ||||||||||||||||||||||
April 1 – 30, 2021 | 166 | $ | 73.33 | — | $ | 96.6 | ||||||||||||||||||||
May 1 – 31, 2021 | 398 | 77.43 | — | 96.6 | ||||||||||||||||||||||
June 1 – 30, 2021 | 375 | 76.26 | — | 96.6 | ||||||||||||||||||||||
Total | 939 | $ | 76.24 | — | $ | 96.6 |
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 Programs (in millions)2 | ||||||||||||||||||||||
January 1 – 31, 2022 | 846 | $ | 80.04 | — | $ | 96.6 | ||||||||||||||||||||
February 1 – 28, 2022 | 70,816 | 76.56 | 1,000 | 96.5 | ||||||||||||||||||||||
March 1 – 31, 2022 | 331 | 83.26 | — | 96.5 | ||||||||||||||||||||||
Total | 71,993 | $ | 76.63 | 1,000 | $ | 96.5 |
Exhibit No. | ||||||||
Statement Re: Computation of Per Share | ||||||||
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 Quarterly Report on Form 10-Q for the quarter ended | |||||||
**104 | The cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended |
Date: | By: /s/ John J. Marchioni | ||||||||||
John J. Marchioni | |||||||||||
Chairperson of the Board, President and Chief Executive Officer | |||||||||||
(principal executive officer) | |||||||||||
Date: | By: /s/ Mark A. Wilcox | ||||||||||
Mark A. Wilcox | |||||||||||
Executive Vice President and Chief Financial Officer | |||||||||||
(principal financial officer) |