Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 28, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-15202 | |
Entity Registrant Name | W. R. BERKLEY CORP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 22-1867895 | |
Entity Address, Address Line One | 475 Steamboat Road | |
Entity Address, City or Town | Greenwich | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06830 | |
City Area Code | (203) | |
Local Phone Number | 629-3000 | |
Title of 12(b) Security | Common Stock, par value $.20 per share | |
Trading Symbol | WRB | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 178,220,903 | |
Entity Central Index Key | 0000011544 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
5.90% Subordinated Debentures due 2056 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 5.90% Subordinated Debentures due 2056 | |
Trading Symbol | WRB-PC | |
Security Exchange Name | NYSE | |
5.75% Subordinated Debentures due 2056 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 5.75% Subordinated Debentures due 2056 | |
Trading Symbol | WRB-PD | |
Security Exchange Name | NYSE | |
5.70% Subordinated Debentures due 2058 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 5.70% Subordinated Debentures due 2058 | |
Trading Symbol | WRB-PE | |
Security Exchange Name | NYSE | |
5.10% Subordinated Debentures due 2059 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 5.10% Subordinated Debentures due 2059 | |
Trading Symbol | WRB-PF | |
Security Exchange Name | NYSE | |
4.25% Subordinated Debentures due 2060 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 4.25% Subordinated Debentures due 2060 | |
Trading Symbol | WRB-PG | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets Con
Consolidated Balance Sheets Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Investments: | ||
Fixed maturity securities (amortized cost of $13,536,264 and $13,976,647; allowance for expected credit losses of $2,567 at September 30, 2020) | $ 13,893,046 | $ 14,180,961 |
Real estate | 2,106,474 | 2,105,950 |
Investment funds | 1,163,707 | 1,213,535 |
Arbitrage trading account | 595,727 | 400,809 |
Equity securities | 435,303 | 480,620 |
Loans receivable (net of allowance for expected credit losses of $5,843 at September 30, 2020) | 84,771 | 91,799 |
Total investments | 18,279,028 | 18,473,674 |
Cash and cash equivalents | 2,571,447 | 1,023,710 |
Premiums and fees receivable (net of allowance for expected credit losses of $23,033 at September 30, 2020) | 2,162,192 | 1,997,186 |
Due from reinsurers (net of allowance for expected credit losses of $7,741 at September 30, 2020) | 2,323,833 | 2,133,683 |
Deferred policy acquisition costs | 560,739 | 517,364 |
Prepaid reinsurance premiums | 626,229 | 567,595 |
Trading account receivables from brokers and clearing organizations | 252,223 | 423,543 |
Property, furniture and equipment | 410,228 | 422,091 |
Goodwill | 169,652 | 169,652 |
Accrued investment income | 128,370 | 138,789 |
Federal and foreign income taxes | 30,069 | 0 |
Other assets | 698,360 | 762,743 |
Total assets | 28,212,370 | 26,630,030 |
Liabilities: | ||
Reserves for losses and loss expenses | 13,459,359 | 12,583,249 |
Unearned premiums | 4,054,471 | 3,656,507 |
Due to reinsurers | 406,844 | 360,314 |
Trading account securities sold but not yet purchased | 19,254 | 36,143 |
Federal and foreign income taxes | 0 | 4,308 |
Other liabilities | 1,159,957 | 1,244,888 |
Senior notes and other debt | 1,629,077 | 1,427,575 |
Subordinated debentures | 1,443,736 | 1,198,704 |
Total liabilities | 22,172,698 | 20,511,688 |
Equity: | ||
Perferred stock, par value $.10 per share: Authorized 5,000,000 shares; issued and outstanding - none | 0 | 0 |
Common stock, par value $.20 per share: Authorized 500,000,000 shares, issued and outstanding, net of treasury shares, 177,930,502 and 183,411,907 shares, respectively | 70,535 | 70,535 |
Additional paid-in capital | 1,064,719 | 1,056,042 |
Retained earnings | 8,057,556 | 7,932,372 |
Accumulated other comprehensive loss | (170,886) | (257,299) |
Treasury stock, at cost, 174,458,963 and 169,264,857 shares, respectively | (3,026,812) | (2,726,711) |
Total stockholders’ equity | 5,995,112 | 6,074,939 |
Noncontrolling interests | 44,560 | 43,403 |
Total equity | 6,039,672 | 6,118,342 |
Total liabilities and equity | $ 28,212,370 | $ 26,630,030 |
Consolidated Balance Sheets C_2
Consolidated Balance Sheets Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Fixed maturity securities, allowance for credit loss | $ 2,567 | |
Fixed maturity securities, amortized cost | 13,536,264 | $ 13,976,647 |
Cumulative effect adjustment resulting from changes in accounting principles | 5,843 | 2,146 |
Cumulative effect adjustment resulting from changes in accounting principles | 23,033 | 19,823 |
Reinsurance recoverable, allowance for credit loss | $ 7,741 | $ 690 |
Preferred stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Preferred stock issued (in shares) | 5,000,000 | 5,000,000 |
Preferred stock outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollar per share) | $ 0.20 | $ 0.20 |
Common shares authorized (in shares) | 750,000,000 | 750,000,000 |
Common shares issued (in shares) | 178,217,537 | 183,411,907 |
Common shares outstanding (in shares) | 178,217,537 | 183,411,907 |
Treasury stock issued at cost (in shares) | 174,458,963 | 169,264,857 |
Consolidated Statements Income
Consolidated Statements Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
REVENUES: | ||||
Net premiums written | $ 1,879,316 | $ 1,749,906 | $ 5,464,980 | $ 5,202,971 |
Change in net unearned premiums | (130,395) | (73,096) | (347,727) | (286,464) |
Net premiums earned | 1,748,921 | 1,676,810 | 5,117,253 | 4,916,507 |
Net investment income | 142,650 | 161,692 | 402,844 | 508,279 |
Net realized and unrealized (losses) gains on investments | (7,772) | 1,465 | (89,404) | 143,691 |
Change in allowance for expected credit losses on investments | 46,750 | 0 | 29,093 | 0 |
Net investment gains (losses) | 38,978 | 1,465 | (60,311) | 143,691 |
Revenues from non-insurance businesses | 87,495 | 101,880 | 256,966 | 283,005 |
Insurance service fees | 21,635 | 23,681 | 67,256 | 71,440 |
Other income | 140 | 188 | 2,446 | 3,200 |
Total revenues | 2,039,819 | 1,965,716 | 5,786,454 | 5,926,122 |
OPERATING COSTS AND EXPENSES: | ||||
Losses and loss expenses | 1,114,632 | 1,041,471 | 3,357,011 | 3,058,950 |
Other operating costs and expenses | 593,969 | 581,045 | 1,753,142 | 1,760,961 |
Expenses from non-insurance businesses | 85,036 | 101,743 | 256,032 | 280,141 |
Interest expense | 39,768 | 38,475 | 114,874 | 119,913 |
Total operating costs and expenses | 1,833,405 | 1,762,734 | 5,481,059 | 5,219,965 |
Income before income taxes | 206,414 | 202,982 | 305,395 | 706,157 |
Income tax expense | (54,048) | (37,831) | (84,900) | (141,965) |
Net income before noncontrolling interests | 152,366 | 165,151 | 220,495 | 564,192 |
Noncontrolling interests | (688) | 57 | (1,975) | (1,554) |
Net income to common stockholders | $ 151,678 | $ 165,208 | $ 218,520 | $ 562,638 |
NET INCOME PER SHARE: | ||||
Basic (in dollar per share) | $ 0.82 | $ 0.87 | $ 1.17 | $ 2.95 |
Diluted (in dollar per share) | $ 0.81 | $ 0.85 | $ 1.15 | $ 2.91 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income before noncontrolling interests | $ 152,366 | $ 165,151 | $ 220,495 | $ 564,192 |
Other comprehensive income (loss): | ||||
Change in unrealized currency translation adjustments | 40,194 | (36,682) | (36,553) | (31,414) |
Change in unrealized investment gains (losses), net of taxes | 38,273 | (24,745) | 98,016 | 219,679 |
Other comprehensive income (loss) | 78,467 | (61,427) | 61,463 | 188,265 |
Comprehensive income | 230,833 | 103,724 | 281,958 | 752,457 |
Noncontrolling interests | (685) | (66) | (1,973) | (1,659) |
Comprehensive income to common stockholders | $ 230,148 | $ 103,658 | $ 279,985 | $ 750,798 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Retained earnings | Accumulated Other Comprehensive Income (Loss) | Unrealized investment gain | Currency Translation Adjustments | Treasury stock | Noncontrolling interest | Cumulative effect adjustment resulting from changes in accounting principlesRetained earnings | Cumulative effect adjustment resulting from changes in accounting principlesAccumulated Other Comprehensive Income (Loss) | Cumulative effect adjustment resulting from changes in accounting principlesUnrealized investment gain | Cumulative effect adjustment resulting from changes in accounting principlesCurrency Translation Adjustments |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Cumulative effect adjustment resulting from changes in accounting principles | $ 70,535 | $ 1,039,633 | $ 7,558,619 | $ (510,470) | $ (91,491) | $ (418,979) | $ (2,720,466) | $ 41,947 | $ 0 | $ 0 | |||
Beginning of period at Dec. 31, 2018 | 70,535 | 1,039,633 | 7,558,619 | (510,470) | (91,491) | (418,979) | (2,720,466) | 41,947 | 0 | 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Restricted stock units issued | (30,659) | ||||||||||||
Restricted stock units expensed | 36,474 | ||||||||||||
Cumulative effect adjustment resulting from changes in accounting principles | 70,535 | 1,045,448 | 7,971,019 | (322,100) | 128,293 | (450,393) | (2,708,606) | 43,147 | 0 | 0 | |||
Net income before noncontrolling interests | $ 564,192 | 562,638 | 1,554 | ||||||||||
Dividends ($0.12, $0.11, $0.35 and $0.82 per share, respectively) | (150,238) | ||||||||||||
Change in unrealized gains (losses) on securities without an allowance for expected credit losses | 219,679 | 219,388 | |||||||||||
Change in unrealized gains on securities with an allowance for expected credit losses | 396 | ||||||||||||
Net change in period | (31,414) | (31,414) | |||||||||||
Stock exercised/vested | 11,860 | ||||||||||||
Stock repurchased | 0 | ||||||||||||
Distributions | (459) | ||||||||||||
Other comprehensive (loss) income, net of tax | $ 188,265 | 188,265 | (31,414) | 105 | |||||||||
End of period at Sep. 30, 2019 | 1,045,448 | 7,971,019 | (322,100) | 128,293 | (450,393) | (2,708,606) | 43,147 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Common stock dividends, per share, cash paid (in dollars per share) | $ 0.82 | ||||||||||||
Cumulative effect adjustment resulting from changes in accounting principles | 70,535 | 1,058,416 | 7,826,015 | (260,796) | 152,915 | (413,711) | (2,717,410) | 43,318 | 0 | 0 | |||
Beginning of period at Jun. 30, 2019 | 70,535 | 1,058,416 | 7,826,015 | (260,796) | 152,915 | (413,711) | (2,717,410) | 43,318 | 0 | 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Restricted stock units issued | (28,155) | ||||||||||||
Restricted stock units expensed | 15,187 | ||||||||||||
Cumulative effect adjustment resulting from changes in accounting principles | 70,535 | 1,045,448 | 7,971,019 | (322,100) | 128,293 | (413,711) | (2,708,606) | 43,147 | 0 | 0 | |||
Net income before noncontrolling interests | $ 165,151 | 165,208 | (57) | ||||||||||
Dividends ($0.12, $0.11, $0.35 and $0.82 per share, respectively) | (20,204) | ||||||||||||
Change in unrealized gains (losses) on securities without an allowance for expected credit losses | (24,745) | (25,005) | |||||||||||
Change in unrealized gains on securities with an allowance for expected credit losses | 383 | ||||||||||||
Net change in period | (36,682) | (36,682) | |||||||||||
Stock exercised/vested | 8,804 | ||||||||||||
Stock repurchased | 0 | ||||||||||||
Distributions | (237) | ||||||||||||
Other comprehensive (loss) income, net of tax | $ (61,427) | (61,427) | (36,682) | 123 | |||||||||
End of period at Sep. 30, 2019 | 1,045,448 | 7,971,019 | (322,100) | 128,293 | (450,393) | (2,708,606) | 43,147 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Common stock dividends, per share, cash paid (in dollars per share) | $ 0.11 | ||||||||||||
Cumulative effect adjustment resulting from changes in accounting principles | 1,045,448 | 7,971,019 | (322,100) | 128,293 | (450,393) | (2,708,606) | 43,147 | ||||||
Cumulative effect adjustment resulting from changes in accounting principles | $ 6,118,342 | 70,535 | 1,056,042 | 7,932,372 | (257,299) | 124,514 | (381,813) | (2,726,711) | 43,403 | (30,514) | $ 24,952 | 24,952 | $ 0 |
Beginning of period at Dec. 31, 2019 | 6,118,342 | 70,535 | 1,056,042 | 7,932,372 | (257,299) | 124,514 | (381,813) | (2,726,711) | 43,403 | (30,514) | 24,952 | 24,952 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Restricted stock units issued | (26,773) | ||||||||||||
Restricted stock units expensed | 35,450 | ||||||||||||
Cumulative effect adjustment resulting from changes in accounting principles | 6,118,342 | 70,535 | 1,064,719 | 8,057,556 | (170,886) | 247,480 | (418,366) | (3,026,812) | 44,560 | (30,514) | $ 24,952 | 24,952 | $ 0 |
Net income before noncontrolling interests | 220,495 | 218,520 | 1,975 | ||||||||||
Dividends ($0.12, $0.11, $0.35 and $0.82 per share, respectively) | (62,822) | ||||||||||||
Change in unrealized gains (losses) on securities without an allowance for expected credit losses | 98,016 | 77,537 | |||||||||||
Change in unrealized gains on securities with an allowance for expected credit losses | 20,477 | ||||||||||||
Net change in period | (36,553) | (36,553) | |||||||||||
Stock exercised/vested | 11,758 | ||||||||||||
Stock repurchased | (311,859) | ||||||||||||
Distributions | (816) | ||||||||||||
Other comprehensive (loss) income, net of tax | 61,463 | 61,463 | (36,553) | (2) | |||||||||
End of period at Sep. 30, 2020 | $ 6,039,672 | 1,064,719 | 8,057,556 | (170,886) | 247,480 | (418,366) | (3,026,812) | 44,560 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Common stock dividends, per share, cash paid (in dollars per share) | $ 0.35 | ||||||||||||
Cumulative effect adjustment resulting from changes in accounting principles | 70,535 | 1,076,043 | 7,927,280 | (249,350) | 209,210 | (458,560) | (3,023,392) | 44,275 | 0 | 0 | |||
Beginning of period at Jun. 30, 2020 | 70,535 | 1,076,043 | 7,927,280 | (249,350) | 209,210 | (458,560) | (3,023,392) | 44,275 | 0 | 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Restricted stock units issued | (23,387) | ||||||||||||
Restricted stock units expensed | 12,063 | ||||||||||||
Cumulative effect adjustment resulting from changes in accounting principles | $ 6,039,672 | $ 70,535 | 1,064,719 | 8,057,556 | (170,886) | 247,480 | (418,366) | (3,026,812) | 44,560 | $ 0 | $ 0 | ||
Net income before noncontrolling interests | 152,366 | 151,678 | 688 | ||||||||||
Dividends ($0.12, $0.11, $0.35 and $0.82 per share, respectively) | (21,402) | ||||||||||||
Change in unrealized gains (losses) on securities without an allowance for expected credit losses | 38,273 | 35,111 | |||||||||||
Change in unrealized gains on securities with an allowance for expected credit losses | 3,159 | ||||||||||||
Net change in period | 40,194 | 40,194 | |||||||||||
Stock exercised/vested | 9,537 | ||||||||||||
Stock repurchased | (12,957) | ||||||||||||
Distributions | (400) | ||||||||||||
Other comprehensive (loss) income, net of tax | 78,467 | 78,467 | 40,194 | (3) | |||||||||
End of period at Sep. 30, 2020 | $ 6,039,672 | 1,064,719 | 8,057,556 | (170,886) | 247,480 | (418,366) | (3,026,812) | 44,560 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Common stock dividends, per share, cash paid (in dollars per share) | $ 0.12 | ||||||||||||
Cumulative effect adjustment resulting from changes in accounting principles | $ 6,039,672 | $ 1,064,719 | $ 8,057,556 | $ (170,886) | $ 247,480 | $ (418,366) | $ (3,026,812) | $ 44,560 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
CASH FROM OPERATING ACTIVITIES: | ||
Net income to common stockholders | $ 218,520 | $ 562,638 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Net investment losses (gains) | 60,311 | (143,691) |
Depreciation and amortization | 96,195 | 42,007 |
Noncontrolling interests | 1,975 | 1,554 |
Investment funds | (1,260) | (77,284) |
Stock incentive plans | 37,842 | 38,440 |
Change in: | ||
Arbitrage trading account | (40,487) | (20,422) |
Premiums and fees receivable | (175,636) | (206,867) |
Reinsurance accounts | (204,396) | (116,359) |
Deferred policy acquisition costs | (43,955) | (30,537) |
Income taxes | (56,955) | (16,449) |
Reserves for losses and loss expenses | 879,277 | 443,454 |
Unearned premiums | 407,227 | 336,664 |
Other | (41,713) | (18,104) |
Net cash from operating activities | 1,136,945 | 795,044 |
CASH FROM (USED IN) INVESTING ACTIVITIES: | ||
Proceeds from sale of fixed maturity securities | 3,525,926 | 1,341,688 |
Proceeds from sale of equity securities | 66,850 | 40,709 |
Distributions from investment funds | 83,935 | 187,321 |
Proceeds from maturities and prepayments of fixed maturity securities | 2,876,642 | 2,278,264 |
Purchase of fixed maturity securities | (6,074,429) | (3,853,108) |
Purchase of equity securities | (77,840) | (66,305) |
Real estate purchased | (42,405) | (176,538) |
Change in loans receivable | 1,202 | 3,156 |
Net purchases of property, furniture and equipment | (31,047) | (1,802) |
Change in balances due to security brokers | 36,561 | 54,620 |
Other | 65 | 45 |
Net cash from (used in) investing activities | 365,460 | (191,950) |
CASH FROM (USED IN) FINANCING ACTIVITIES: | ||
Repayment of senior notes and other debt | (302,453) | (448,409) |
Net proceeds from issuance of debt | 747,399 | 0 |
Cash dividends to common stockholders | (62,822) | (130,035) |
Purchase of common treasury shares | (311,859) | 0 |
Other, net | (18,465) | (20,750) |
Net cash from (used in) financing activities | 51,800 | (599,194) |
Net impact on cash due to change in foreign exchange rates | (6,468) | (8,952) |
Net change in cash and cash equivalents | 1,547,737 | (5,052) |
Cash and cash equivalents at beginning of year | 1,023,710 | 817,602 |
Cash and cash equivalents at end of period | $ 2,571,447 | $ 812,550 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Consolidated Statements of Comprehensive Income | Consolidated Statements of Comprehensive Income The following table presents the components of the changes in accumulated other comprehensive (loss) income ("AOCI"): (In thousands) Unrealized Investment Gains (Losses) Currency Translation Adjustments Accumulated Other Comprehensive As of and for the nine months ended September 30, 2020 Changes in AOCI Beginning of period $ 124,514 $ (381,813) $ (257,299) Cumulative effect adjustment resulting from changes in accounting principles 24,952 — 24,952 Restated beginning of period 149,466 (381,813) (232,347) Other comprehensive income (loss) before reclassifications 76,474 (36,553) 39,921 Amounts reclassified from AOCI 21,542 — 21,542 Other comprehensive income (loss) 98,016 (36,553) 61,463 Unrealized investment gain related to noncontrolling interest (2) — (2) End of period $ 247,480 $ (418,366) $ (170,886) Amounts reclassified from AOCI Pre-tax $ 27,268 (1) $ — $ 27,268 Tax effect (5,726) (2) — (5,726) After-tax amounts reclassified $ 21,542 $ — $ 21,542 Other comprehensive income (loss) Pre-tax $ 111,756 $ (36,553) $ 75,203 Tax effect (13,740) — (13,740) Other comprehensive income (loss) $ 98,016 $ (36,553) $ 61,463 As of and for the three months ended September 30, 2020 Changes in AOCI Beginning of period $ 209,210 $ (458,560) $ (249,350) Other comprehensive income before reclassifications 39,488 40,194 79,682 Amounts reclassified from AOCI (1,215) — (1,215) Other comprehensive income 38,273 40,194 78,467 Unrealized investment gain related to noncontrolling interest (3) — (3) Ending balance $ 247,480 $ (418,366) $ (170,886) Amounts reclassified from AOCI Pre-tax $ (1,538) (1) $ — $ (1,538) Tax effect 323 (2) — 323 After-tax amounts reclassified $ (1,215) $ — $ (1,215) Other comprehensive income Pre-tax $ 48,980 $ 40,194 $ 89,174 Tax effect (10,707) — (10,707) Other comprehensive income $ 38,273 $ 40,194 $ 78,467 As of and for the nine months ended September 30, 2019 Changes in AOCI Beginning of period $ (91,491) $ (418,979) $ (510,470) Other comprehensive income (loss) before reclassifications 218,592 (31,414) 187,178 Amounts reclassified from AOCI 1,087 — 1,087 Other comprehensive income (loss) 219,679 (31,414) 188,265 Unrealized investment loss related to noncontrolling interest 105 — 105 End of period $ 128,293 $ (450,393) $ (322,100) Amounts reclassified from AOCI Pre-tax $ 1,376 (1) $ — $ 1,376 Tax effect (289) (2) — (289) After-tax amounts reclassified $ 1,087 $ — $ 1,087 Other comprehensive income (loss) Pre-tax $ 287,739 $ (31,414) $ 256,325 Tax effect (68,060) — (68,060) Other comprehensive income (loss) $ 219,679 $ (31,414) $ 188,265 As of and for the three months ended September 30, 2019 Changes in AOCI Beginning of period $ 152,915 $ (413,711) $ (260,796) Other comprehensive loss before reclassifications (27,023) (36,682) (63,705) Amounts reclassified from AOCI 2,278 — 2,278 Other comprehensive loss (24,745) (36,682) (61,427) Unrealized investment loss related to noncontrolling interest 123 — 123 Ending balance $ 128,293 $ (450,393) $ (322,100) Amounts reclassified from AOCI Pre-tax $ 2,884 (1) $ — $ 2,884 Tax effect (606) (2) — (606) After-tax amounts reclassified $ 2,278 $ — $ 2,278 Other comprehensive loss Pre-tax $ (28,592) $ (36,682) $ (65,274) Tax effect 3,847 — 3,847 Other comprehensive loss $ (24,745) $ (36,682) $ (61,427) ____________ (1) Net investment gains (losses) in the consolidated statements of income. (2) Income tax expense in the consolidated statements of income. |
Statements of Cash Flows
Statements of Cash Flows | 9 Months Ended |
Sep. 30, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Statements of Cash Flows | Statements of Cash Flows Interest payments were $126,932,000 and $145,930,000 for the nine months ended September 30, 2020 and 2019, respectively. Income taxes paid were $96,000,000 and $127,282,000 for the nine months ended September 30, 2020 and 2019, respectively. |
Net Investment Income
Net Investment Income | 9 Months Ended |
Sep. 30, 2020 | |
Net Investment Income [Abstract] | |
Net Investment Income | Net Investment Income Net investment income consisted of the following: For the Three Months For the Nine Months (In thousands) 2020 2019 2020 2019 Investment income earned on: Fixed maturity securities, including cash and cash equivalents and loans receivable $ 97,080 $ 125,957 $ 330,941 $ 386,978 Investment funds 18,235 19,033 1,260 77,284 Arbitrage trading account 19,543 8,400 51,985 26,184 Real estate 7,666 7,987 18,807 17,468 Equity securities 1,907 1,392 6,194 3,984 Gross investment income 144,430 162,769 409,187 511,898 Investment expense (1,780) (1,077) (6,343) (3,619) Net investment income $ 142,650 $ 161,692 $ 402,844 $ 508,279 |
Consolidated Statements of Co_3
Consolidated Statements of Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Components of changes in accumulated other comprehensive income (loss) | The following table presents the components of the changes in accumulated other comprehensive (loss) income ("AOCI"): (In thousands) Unrealized Investment Gains (Losses) Currency Translation Adjustments Accumulated Other Comprehensive As of and for the nine months ended September 30, 2020 Changes in AOCI Beginning of period $ 124,514 $ (381,813) $ (257,299) Cumulative effect adjustment resulting from changes in accounting principles 24,952 — 24,952 Restated beginning of period 149,466 (381,813) (232,347) Other comprehensive income (loss) before reclassifications 76,474 (36,553) 39,921 Amounts reclassified from AOCI 21,542 — 21,542 Other comprehensive income (loss) 98,016 (36,553) 61,463 Unrealized investment gain related to noncontrolling interest (2) — (2) End of period $ 247,480 $ (418,366) $ (170,886) Amounts reclassified from AOCI Pre-tax $ 27,268 (1) $ — $ 27,268 Tax effect (5,726) (2) — (5,726) After-tax amounts reclassified $ 21,542 $ — $ 21,542 Other comprehensive income (loss) Pre-tax $ 111,756 $ (36,553) $ 75,203 Tax effect (13,740) — (13,740) Other comprehensive income (loss) $ 98,016 $ (36,553) $ 61,463 As of and for the three months ended September 30, 2020 Changes in AOCI Beginning of period $ 209,210 $ (458,560) $ (249,350) Other comprehensive income before reclassifications 39,488 40,194 79,682 Amounts reclassified from AOCI (1,215) — (1,215) Other comprehensive income 38,273 40,194 78,467 Unrealized investment gain related to noncontrolling interest (3) — (3) Ending balance $ 247,480 $ (418,366) $ (170,886) Amounts reclassified from AOCI Pre-tax $ (1,538) (1) $ — $ (1,538) Tax effect 323 (2) — 323 After-tax amounts reclassified $ (1,215) $ — $ (1,215) Other comprehensive income Pre-tax $ 48,980 $ 40,194 $ 89,174 Tax effect (10,707) — (10,707) Other comprehensive income $ 38,273 $ 40,194 $ 78,467 As of and for the nine months ended September 30, 2019 Changes in AOCI Beginning of period $ (91,491) $ (418,979) $ (510,470) Other comprehensive income (loss) before reclassifications 218,592 (31,414) 187,178 Amounts reclassified from AOCI 1,087 — 1,087 Other comprehensive income (loss) 219,679 (31,414) 188,265 Unrealized investment loss related to noncontrolling interest 105 — 105 End of period $ 128,293 $ (450,393) $ (322,100) Amounts reclassified from AOCI Pre-tax $ 1,376 (1) $ — $ 1,376 Tax effect (289) (2) — (289) After-tax amounts reclassified $ 1,087 $ — $ 1,087 Other comprehensive income (loss) Pre-tax $ 287,739 $ (31,414) $ 256,325 Tax effect (68,060) — (68,060) Other comprehensive income (loss) $ 219,679 $ (31,414) $ 188,265 As of and for the three months ended September 30, 2019 Changes in AOCI Beginning of period $ 152,915 $ (413,711) $ (260,796) Other comprehensive loss before reclassifications (27,023) (36,682) (63,705) Amounts reclassified from AOCI 2,278 — 2,278 Other comprehensive loss (24,745) (36,682) (61,427) Unrealized investment loss related to noncontrolling interest 123 — 123 Ending balance $ 128,293 $ (450,393) $ (322,100) Amounts reclassified from AOCI Pre-tax $ 2,884 (1) $ — $ 2,884 Tax effect (606) (2) — (606) After-tax amounts reclassified $ 2,278 $ — $ 2,278 Other comprehensive loss Pre-tax $ (28,592) $ (36,682) $ (65,274) Tax effect 3,847 — 3,847 Other comprehensive loss $ (24,745) $ (36,682) $ (61,427) ____________ (1) Net investment gains (losses) in the consolidated statements of income. (2) Income tax expense in the consolidated statements of income. |
Net Investment Income (Tables)
Net Investment Income (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Net Investment Income [Abstract] | |
Schedule of Net Investment Income | Net investment income consisted of the following: For the Three Months For the Nine Months (In thousands) 2020 2019 2020 2019 Investment income earned on: Fixed maturity securities, including cash and cash equivalents and loans receivable $ 97,080 $ 125,957 $ 330,941 $ 386,978 Investment funds 18,235 19,033 1,260 77,284 Arbitrage trading account 19,543 8,400 51,985 26,184 Real estate 7,666 7,987 18,807 17,468 Equity securities 1,907 1,392 6,194 3,984 Gross investment income 144,430 162,769 409,187 511,898 Investment expense (1,780) (1,077) (6,343) (3,619) Net investment income $ 142,650 $ 161,692 $ 402,844 $ 508,279 |
Consolidated Statements of Co_4
Consolidated Statements of Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning of period | $ 6,118,342 | |||
Other comprehensive income (loss) | $ 78,467 | $ (61,427) | 61,463 | $ 188,265 |
End of period | 6,039,672 | 6,039,672 | ||
Net realized and unrealized (losses) gains on investments | (7,772) | 1,465 | (89,404) | 143,691 |
Income before income taxes | 206,414 | 202,982 | 305,395 | 706,157 |
Tax effect | (54,048) | (37,831) | (84,900) | (141,965) |
Net income before noncontrolling interests | 152,366 | 165,151 | 220,495 | 564,192 |
Total change in unrealized investment gains (losses) | 48,980 | (28,592) | 111,756 | 287,739 |
Net change in period | 40,194 | (36,682) | (36,553) | (31,414) |
Other comprehensive income (loss), pre-tax | 89,174 | (65,274) | 75,203 | 256,325 |
Other comprehensive income (loss), tax effect | (10,707) | 3,847 | (13,740) | (68,060) |
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning of period | (249,350) | (260,796) | (257,299) | (510,470) |
Other comprehensive income (loss) before reclassifications | 79,682 | (63,705) | 39,921 | 187,178 |
Amounts reclassified from AOCI | (1,215) | 2,278 | 21,542 | 1,087 |
Other comprehensive income (loss) | 78,467 | (61,427) | 61,463 | 188,265 |
Unrealized investment loss related to noncontrolling interest | (3) | 123 | (2) | 105 |
End of period | (170,886) | (322,100) | (170,886) | (322,100) |
Accumulated Other Comprehensive Income (Loss) | Amounts reclassified from AOCI | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Income before income taxes | (1,538) | 2,884 | 27,268 | 1,376 |
Tax effect | 323 | (606) | (5,726) | (289) |
Net income before noncontrolling interests | (1,215) | 2,278 | 21,542 | 1,087 |
Unrealized Investment Gains (Losses) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning of period | 209,210 | 152,915 | 124,514 | (91,491) |
Other comprehensive income (loss) before reclassifications | 39,488 | (27,023) | 76,474 | 218,592 |
Amounts reclassified from AOCI | (1,215) | 2,278 | 21,542 | 1,087 |
Other comprehensive income (loss) | 38,273 | (24,745) | 98,016 | 219,679 |
Unrealized investment loss related to noncontrolling interest | (3) | 123 | (2) | 105 |
End of period | 247,480 | 128,293 | 247,480 | 128,293 |
Total change in unrealized investment gains (losses) | 48,980 | (28,592) | 111,756 | 287,739 |
Unrealized investment gains, tax effect | (10,707) | 3,847 | (13,740) | (68,060) |
Unrealized investment gains (losses), after-tax amounts | 38,273 | (24,745) | 98,016 | 219,679 |
Unrealized Investment Gains (Losses) | Amounts reclassified from AOCI | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Net realized and unrealized (losses) gains on investments | (1,538) | 2,884 | 27,268 | 1,376 |
Tax effect | 323 | (606) | (5,726) | (289) |
Net income before noncontrolling interests | (1,215) | 2,278 | 21,542 | 1,087 |
Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning of period | (458,560) | (413,711) | (381,813) | (418,979) |
Other comprehensive income (loss) before reclassifications | 40,194 | (36,682) | (36,553) | (31,414) |
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | 40,194 | (36,682) | (36,553) | (31,414) |
Unrealized investment loss related to noncontrolling interest | 0 | 0 | 0 | 0 |
End of period | (418,366) | (450,393) | (418,366) | (450,393) |
Currency translation adjustment, pre-tax | 40,194 | (36,682) | (36,553) | (31,414) |
Currency translation adjustment, tax effect | 0 | 0 | 0 | 0 |
Net change in period | 40,194 | (36,682) | (36,553) | (31,414) |
Currency Translation Adjustments | Amounts reclassified from AOCI | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Income before income taxes | 0 | 0 | 0 | 0 |
Tax effect | 0 | 0 | 0 | 0 |
Net income before noncontrolling interests | $ 0 | $ 0 | 0 | $ 0 |
Cumulative effect adjustment resulting from changes in accounting principles | Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning of period | 24,952 | |||
Cumulative effect adjustment resulting from changes in accounting principles | Unrealized Investment Gains (Losses) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning of period | 24,952 | |||
Cumulative effect adjustment resulting from changes in accounting principles | Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning of period | 0 | |||
Cumulative Effect, Period Of Adoption, Adjusted Balance | Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning of period | (232,347) | |||
Cumulative Effect, Period Of Adoption, Adjusted Balance | Unrealized Investment Gains (Losses) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning of period | 149,466 | |||
Cumulative Effect, Period Of Adoption, Adjusted Balance | Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning of period | $ (381,813) |
Net Investment Income (Details)
Net Investment Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net Investment Income [Line Items] | ||||
Gross investment income | $ 144,430 | $ 162,769 | $ 409,187 | $ 511,898 |
Investment expense | (1,780) | (1,077) | (6,343) | (3,619) |
Net investment income | 142,650 | 161,692 | 402,844 | 508,279 |
Fixed maturity securities, including cash and cash equivalents and loans receivable | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 97,080 | 125,957 | 330,941 | 386,978 |
Investment funds | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 18,235 | 19,033 | 1,260 | 77,284 |
Arbitrage trading account | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 19,543 | 8,400 | 51,985 | 26,184 |
Real estate | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 7,666 | 7,987 | 18,807 | 17,468 |
Equity securities | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | $ 1,907 | $ 1,392 | $ 6,194 | $ 3,984 |
General
General | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General The unaudited consolidated financial statements, which include the accounts of W. R. Berkley Corporation and its subsidiaries (the “Company”), have been prepared on the basis of U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all the information and notes required by GAAP for annual financial statements. The unaudited consolidated financial statements reflect all adjustments, consisting only of normal recurring items, which are necessary to present fairly the Company’s financial position and results of operations on a basis consistent with the prior audited consolidated financial statements. Operating results for interim periods are not necessarily indicative of the results that may be expected for the year. All significant intercompany accounts and transactions have been eliminated. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the revenues and expenses reflected during the reporting period. For further information related to areas of judgment and estimates and other information necessary to understand the Company’s financial position and results of operations, refer to the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. The income tax provision has been computed based on the Company’s estimated annual effective tax rate. The effective income tax rate differs from the federal income tax rate of 21% principally because the utilization of losses in certain foreign jurisdictions was limited, which was partially offset by tax-exempt investment income and tax benefits related to equity-based compensation. |
Per Share Data
Per Share Data | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Per Share Data | Per Share Data The Company presents both basic and diluted net income per share (“EPS”) amounts. Basic EPS is calculated by dividing net income by the weighted average number of common shares outstanding during the period (including 7,575,168 and 7,389,781 common shares held in a grantor trust as of September 30, 2020 and 2019, respectively). The common shares held in the grantor trust are for delivery upon settlement of vested but mandatorily deferred restricted stock units ("RSUs"). Shares held by the grantor trust do not affect diluted shares outstanding since the shares deliverable under vested RSUs were already included in diluted shares outstanding. Diluted EPS is based upon the weighted average number of basic and common equivalent shares outstanding during the period and is calculated using the treasury stock method for stock incentive plans. Common equivalent shares are excluded from the computation in periods in which they have an anti-dilutive effect. The weighted average number of common shares used in the computation of basic and diluted earnings per share was as follows: For the Three Months For the Nine Months (In thousands) 2020 2019 2020 2019 Basic 185,765 190,862 187,338 190,593 Diluted 187,717 193,589 189,515 193,557 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements and Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements and Accounting Policies | Recent Accounting Pronouncements and Accounting Policies Recently adopted accounting pronouncements: In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses, which amended the accounting guidance for credit losses on financial instruments. The updated guidance amended the then current other-than-temporary impairment model for available for sale debt securities by requiring the recognition of impairments relating to expected credit losses through an allowance account and limits the amount of credit loss to the difference between a security’s amortized cost basis and its fair value. This guidance also applies a new current expected credit loss model for determining credit-related impairments for financial instruments measured at amortized cost, such as reinsurance recoverables. The updated guidance was effective for reporting periods beginning after December 15, 2019. The adoption of this guidance on January 1, 2020 resulted in the recognition of an allowance for expected credit losses in connection with operating assets (premiums and fees receivable and due from reinsurers) of $5.7 million (net of tax) and a corresponding cumulative effect adjustment that decreased common stockholders' equity. Certain investments (primarily fixed maturity securities available for sale) established an allowance for expected credit loss of $24.8 million (net of tax), with a cumulative effect adjustment decreasing retained earnings by $24.8 million (net of tax) and increasing accumulated other comprehensive (loss) income ("AOCI") by $25.0 million (net of tax), resulting in $0.2 million net impact to total common stockholders' equity. All other accounting and reporting standards that have become effective in 2020 were either not applicable to the Company or their adoption did not have a material impact on the Company. Accounting and reporting standards that are not yet effective: All recently issued but not yet effective accounting and reporting standards are either not applicable to the Company or are not expected to have a material impact on the Company. Accounting policies: The following accounting policies have been updated to reflect the Company's adoption of Financial Instruments - Credit Losses as described above. Revenue recognition (related to premiums and fees receivable) Insurance premiums are recognized as written at the inception of the policy. Reinsurance premiums are estimated based upon information received from ceding companies, and subsequent differences from such estimates are recorded in the period they are determined. Insurance and reinsurance premiums are primarily earned on a pro rata basis over the policy term. Fees for services are earned over the period that the services are provided. Premiums and fees receivable are reported net of an allowance for expected credit losses with the allowance being estimated based on current and future expected conditions, historical loss data and specific identification of collectability concerns where applicable. Changes in the allowance are reported within other operating costs and expenses. Reinsurance ceded (related to due from reinsurers) The unearned portion of premiums ceded to reinsurers is reported as prepaid reinsurance premiums and earned ratably over the policy term. The estimated amounts of reinsurance recoverable on unpaid losses are reported as due from reinsurers. To the extent any reinsurer does not meet its obligations under reinsurance agreements, the Company must discharge its liability. Amounts due from reinsurers are reflected net of funds held where the right of offset is present. The Company has provided an allowance for expected credit losses for estimated uncollectible reinsurance. The allowance is estimated based on the composition of the recoverable balance, considering reinsurer credit ratings, collateral received from financial institutions and funds withheld arrangements, length of collection periods, probability of default methodology, and specific identification of collectability concerns. Changes in the allowance are reported within losses and loss expenses. Investments For available for sale securities in an unrealized loss position where the Company intends to sell, or it is more likely than not that it will be required to sell the security before recovery in value, the amortized cost basis is written down to fair value through net investment gains (losses). For available for sale securities in an unrealized loss position where the Company does not intend to sell, or it is more likely than not that it will not be required to sell the security before recovery in value, the Company evaluates whether the decline in fair value has resulted from credit losses or all other factors (non-credit factors). In making this assessment, the Company considers the extent to which fair value is less than amortized cost, changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, an allowance for expected credit losses is recorded for the credit loss through net investment gains (losses), limited by the amount that the fair value is less than the amortized cost basis. The allowance is adjusted for any change in expected credit losses and subsequent recoveries through net investment gains (losses). The impairment related to non-credit factors is recognized in other comprehensive income. For financial assets carried at amortized cost, which includes held to maturity securities and loans receivable, the Company estimates an allowance for expected credit losses based on relevant information about past events, including historical loss experience, current conditions and forecasts that affect the expected collectability of the amortized cost of the financial asset. The allowance for expected credit losses is presented as a reduction to amortized cost of the financial asset in the consolidated balance sheet and changes to the estimate for expected credit losses are recognized through net investment gains (losses). The Company’s credit assessment of allowance for expected credit losses uses a third party model for available for sale and held to maturity securities, as well as loans receivable. The allowance for expected credit losses is generally based on the performance of the underlying collateral under various economic and default scenarios that involve subjective judgments and estimates by management. Modeling these securities involves various factors, such as projected default rates, the nature and realizable value of the collateral, if any, the ability of the issuer to make scheduled payments, historical performance and other relevant economic and performance factors. A discounted cash flow analysis is used to ascertain the amount of the allowance for expected credit losses, if any. In general, the model reverts to the rating-level long-term average marginal default rates based on 10 years of historical data, beyond the forecast period. For other inputs, the model in most cases reverts to the baseline long-term assumptions linearly over 5 years beyond the forecast period. The long-term assumptions are based on the historical averages. The Company reports accrued investment income separately from fixed maturity securities, and has elected not to measure an allowance for expected credit losses for accrued investment income. Accrued investment income is written off through net investment income at the time the issuer of the bond defaults or is expected to default on payments. |
Investments In Fixed Maturity S
Investments In Fixed Maturity Securities | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments In Fixed Maturity Securities | Investments in Fixed Maturity Securities At September 30, 2020 and December 31, 2019, investments in fixed maturity securities were as follows: (In thousands) Amortized Allowance for Expected Credit Losses (1) Gross Unrealized Fair Carrying Gains Losses September 30, 2020 Held to maturity: State and municipal $ 66,532 $ (871) $ 13,406 $ — $ 79,067 $ 65,661 Residential mortgage-backed 6,856 — 1,109 — 7,965 6,856 Total held to maturity 73,388 (871) 14,515 — 87,032 72,517 Available for sale: U.S. government and government agency 676,493 — 21,080 (141) 697,432 697,432 State and municipal: Special revenue 2,195,851 — 93,278 (2,455) 2,286,674 2,286,674 State general obligation 356,321 — 31,586 — 387,907 387,907 Pre-refunded 257,570 — 22,521 (149) 279,942 279,942 Corporate backed 223,508 — 9,641 (549) 232,600 232,600 Local general obligation 396,831 — 41,975 (534) 438,272 438,272 Total state and municipal 3,430,081 — 199,001 (3,687) 3,625,395 3,625,395 Mortgage-backed securities: Residential 848,878 — 29,989 (2,513) 876,354 876,354 Commercial 199,217 — 7,168 (360) 206,025 206,025 Total mortgage-backed securities 1,048,095 — 37,157 (2,873) 1,082,379 1,082,379 Asset-backed 3,347,867 — 11,665 (53,093) 3,306,439 3,306,439 Corporate: Industrial 2,240,914 (606) 104,694 (18,404) 2,326,598 2,326,598 Financial 1,471,997 — 55,706 (3,067) 1,524,636 1,524,636 Utilities 325,809 — 30,270 (460) 355,619 355,619 Other 32,262 — 445 (20) 32,687 32,687 Total corporate 4,070,982 (606) 191,115 (21,951) 4,239,540 4,239,540 Foreign government 889,358 (1,090) 26,626 (45,550) 869,344 869,344 Total available for sale 13,462,876 (1,696) 486,644 (127,295) 13,820,529 13,820,529 Total investments in fixed maturity securities $ 13,536,264 $ (2,567) $ 501,159 $ (127,295) $ 13,907,561 $ 13,893,046 ____________ (1) Represents the amount of impairment that has resulted from credit-related factors. The change in the allowance for expected credit losses, excluding the cumulative effect adjustment resulting from changes in accounting principles, is recognized in the consolidated statements of income. Amount excludes unrealized losses relating to non-credit factors. (In thousands) Amortized Gross Unrealized Fair Carrying Gains Losses December 31, 2019 Held to maturity: State and municipal $ 70,312 $ 13,000 $ — $ 83,312 $ 70,312 Residential mortgage-backed 8,371 994 — 9,365 8,371 Total held to maturity 78,683 13,994 — 92,677 78,683 Available for sale: U.S. government and government agency 775,157 13,249 (1,475) 786,931 786,931 State and municipal: Special revenue 2,343,209 64,586 (4,152) 2,403,643 2,403,643 State general obligation 359,298 22,074 (97) 381,275 381,275 Pre-refunded 364,571 20,342 (128) 384,785 384,785 Corporate backed 255,230 7,232 (903) 261,559 261,559 Local general obligation 432,333 32,684 (647) 464,370 464,370 Total state and municipal 3,754,641 146,918 (5,927) 3,895,632 3,895,632 Mortgage-backed securities: Residential 1,298,145 23,230 (5,155) 1,316,220 1,316,220 Commercial 304,506 5,214 (346) 309,374 309,374 Total mortgage-backed securities 1,602,651 28,444 (5,501) 1,625,594 1,625,594 Asset-backed 2,802,588 9,532 (21,490) 2,790,630 2,790,630 Corporate: Industrial 2,260,073 72,900 (3,800) 2,329,173 2,329,173 Financial 1,447,589 37,681 (4,118) 1,481,152 1,481,152 Utilities 325,762 15,281 (402) 340,641 340,641 Other 5,219 230 — 5,449 5,449 Total corporate 4,038,643 126,092 (8,320) 4,156,415 4,156,415 Foreign government 924,284 16,465 (93,673) 847,076 847,076 Total available for sale 13,897,964 340,700 (136,386) 14,102,278 14,102,278 Total investments in fixed maturity securities $ 13,976,647 $ 354,694 $ (136,386) $ 14,194,955 $ 14,180,961 The following table presents the rollforward of the allowance for expected credit losses for held to maturity securities for the nine months ended September 30, 2020: State and Municipal (In thousands) Allowance for expected credit losses at January 1, 2020 $ — Cumulative effect adjustment resulting from changes in accounting principles 69 Provision for expected credit losses 802 Allowance for expected credit losses at September 30, 2020 $ 871 The following table presents the rollforward of the allowance for expected credit losses for held to maturity securities for the three months ended September 30, 2020: State and Municipal (In thousands) Allowance for expected credit losses at July 1, 2020 $ 948 Provision for expected credit losses (77) Allowance for expected credit losses at September 30, 2020 $ 871 The following table presents the rollforward of the allowance for expected credit losses for available for sale securities for the nine months ended September 30, 2020: Foreign Government Corporate Total (In thousands) Allowance for expected credit losses at January 1, 2020 $ — $ — $ — Cumulative effect adjustment resulting from changes in accounting principles 35,645 — 35,645 Expected credit losses on securities for which credit losses were not previously recorded 12,494 7,058 19,552 Expected credit losses on securities for which credit losses were previously recorded 295 (3,767) (3,472) Reduction due to disposals (47,344) (2,685) (50,029) Allowance for expected credit losses at September 30, 2020 $ 1,090 $ 606 $ 1,696 The following table presents the rollforward of the allowance for expected credit losses for available for sale securities for the three months ended September 30, 2020: Foreign Government Corporate Total (In thousands) Allowance for expected credit losses at July 1, 2020 $ 44,769 $ 724 $ 45,493 Expected credit losses on securities for which credit losses were not previously recorded — 261 261 Expected credit losses on securities for which credit losses were previously recorded (252) (9) (261) Reduction due to disposals (43,427) (370) (43,797) Allowance for expected credit losses at September 30, 2020 $ 1,090 $ 606 $ 1,696 During the three and nine months ended September 30, 2020, the Company decreased the allowance for expected credit losses utilizing its credit loss assessment process and inputs used in its credit loss model, primarily due to the disposition of securities which previously had an allowance recorded. The amortized cost and fair value of fixed maturity securities at September 30, 2020, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because certain issuers may have the right to call or prepay obligations. (In thousands) Amortized Fair Due in one year or less $ 1,372,865 $ 1,364,023 Due after one year through five years 5,200,384 5,376,126 Due after five years through ten years 3,313,415 3,461,879 Due after ten years 2,593,778 2,615,189 Mortgage-backed securities 1,054,951 1,090,344 Total $ 13,535,393 $ 13,907,561 ________________ (1) Amortized cost is reduced by the allowance for expected credit losses of $871 thousand related to held to maturity securities. |
Investments in Equity Securitie
Investments in Equity Securities | 9 Months Ended |
Sep. 30, 2020 | |
Debt Securities, Available-for-sale [Line Items] | |
Investments in Equity Securities | Investments in Fixed Maturity Securities At September 30, 2020 and December 31, 2019, investments in fixed maturity securities were as follows: (In thousands) Amortized Allowance for Expected Credit Losses (1) Gross Unrealized Fair Carrying Gains Losses September 30, 2020 Held to maturity: State and municipal $ 66,532 $ (871) $ 13,406 $ — $ 79,067 $ 65,661 Residential mortgage-backed 6,856 — 1,109 — 7,965 6,856 Total held to maturity 73,388 (871) 14,515 — 87,032 72,517 Available for sale: U.S. government and government agency 676,493 — 21,080 (141) 697,432 697,432 State and municipal: Special revenue 2,195,851 — 93,278 (2,455) 2,286,674 2,286,674 State general obligation 356,321 — 31,586 — 387,907 387,907 Pre-refunded 257,570 — 22,521 (149) 279,942 279,942 Corporate backed 223,508 — 9,641 (549) 232,600 232,600 Local general obligation 396,831 — 41,975 (534) 438,272 438,272 Total state and municipal 3,430,081 — 199,001 (3,687) 3,625,395 3,625,395 Mortgage-backed securities: Residential 848,878 — 29,989 (2,513) 876,354 876,354 Commercial 199,217 — 7,168 (360) 206,025 206,025 Total mortgage-backed securities 1,048,095 — 37,157 (2,873) 1,082,379 1,082,379 Asset-backed 3,347,867 — 11,665 (53,093) 3,306,439 3,306,439 Corporate: Industrial 2,240,914 (606) 104,694 (18,404) 2,326,598 2,326,598 Financial 1,471,997 — 55,706 (3,067) 1,524,636 1,524,636 Utilities 325,809 — 30,270 (460) 355,619 355,619 Other 32,262 — 445 (20) 32,687 32,687 Total corporate 4,070,982 (606) 191,115 (21,951) 4,239,540 4,239,540 Foreign government 889,358 (1,090) 26,626 (45,550) 869,344 869,344 Total available for sale 13,462,876 (1,696) 486,644 (127,295) 13,820,529 13,820,529 Total investments in fixed maturity securities $ 13,536,264 $ (2,567) $ 501,159 $ (127,295) $ 13,907,561 $ 13,893,046 ____________ (1) Represents the amount of impairment that has resulted from credit-related factors. The change in the allowance for expected credit losses, excluding the cumulative effect adjustment resulting from changes in accounting principles, is recognized in the consolidated statements of income. Amount excludes unrealized losses relating to non-credit factors. (In thousands) Amortized Gross Unrealized Fair Carrying Gains Losses December 31, 2019 Held to maturity: State and municipal $ 70,312 $ 13,000 $ — $ 83,312 $ 70,312 Residential mortgage-backed 8,371 994 — 9,365 8,371 Total held to maturity 78,683 13,994 — 92,677 78,683 Available for sale: U.S. government and government agency 775,157 13,249 (1,475) 786,931 786,931 State and municipal: Special revenue 2,343,209 64,586 (4,152) 2,403,643 2,403,643 State general obligation 359,298 22,074 (97) 381,275 381,275 Pre-refunded 364,571 20,342 (128) 384,785 384,785 Corporate backed 255,230 7,232 (903) 261,559 261,559 Local general obligation 432,333 32,684 (647) 464,370 464,370 Total state and municipal 3,754,641 146,918 (5,927) 3,895,632 3,895,632 Mortgage-backed securities: Residential 1,298,145 23,230 (5,155) 1,316,220 1,316,220 Commercial 304,506 5,214 (346) 309,374 309,374 Total mortgage-backed securities 1,602,651 28,444 (5,501) 1,625,594 1,625,594 Asset-backed 2,802,588 9,532 (21,490) 2,790,630 2,790,630 Corporate: Industrial 2,260,073 72,900 (3,800) 2,329,173 2,329,173 Financial 1,447,589 37,681 (4,118) 1,481,152 1,481,152 Utilities 325,762 15,281 (402) 340,641 340,641 Other 5,219 230 — 5,449 5,449 Total corporate 4,038,643 126,092 (8,320) 4,156,415 4,156,415 Foreign government 924,284 16,465 (93,673) 847,076 847,076 Total available for sale 13,897,964 340,700 (136,386) 14,102,278 14,102,278 Total investments in fixed maturity securities $ 13,976,647 $ 354,694 $ (136,386) $ 14,194,955 $ 14,180,961 The following table presents the rollforward of the allowance for expected credit losses for held to maturity securities for the nine months ended September 30, 2020: State and Municipal (In thousands) Allowance for expected credit losses at January 1, 2020 $ — Cumulative effect adjustment resulting from changes in accounting principles 69 Provision for expected credit losses 802 Allowance for expected credit losses at September 30, 2020 $ 871 The following table presents the rollforward of the allowance for expected credit losses for held to maturity securities for the three months ended September 30, 2020: State and Municipal (In thousands) Allowance for expected credit losses at July 1, 2020 $ 948 Provision for expected credit losses (77) Allowance for expected credit losses at September 30, 2020 $ 871 The following table presents the rollforward of the allowance for expected credit losses for available for sale securities for the nine months ended September 30, 2020: Foreign Government Corporate Total (In thousands) Allowance for expected credit losses at January 1, 2020 $ — $ — $ — Cumulative effect adjustment resulting from changes in accounting principles 35,645 — 35,645 Expected credit losses on securities for which credit losses were not previously recorded 12,494 7,058 19,552 Expected credit losses on securities for which credit losses were previously recorded 295 (3,767) (3,472) Reduction due to disposals (47,344) (2,685) (50,029) Allowance for expected credit losses at September 30, 2020 $ 1,090 $ 606 $ 1,696 The following table presents the rollforward of the allowance for expected credit losses for available for sale securities for the three months ended September 30, 2020: Foreign Government Corporate Total (In thousands) Allowance for expected credit losses at July 1, 2020 $ 44,769 $ 724 $ 45,493 Expected credit losses on securities for which credit losses were not previously recorded — 261 261 Expected credit losses on securities for which credit losses were previously recorded (252) (9) (261) Reduction due to disposals (43,427) (370) (43,797) Allowance for expected credit losses at September 30, 2020 $ 1,090 $ 606 $ 1,696 During the three and nine months ended September 30, 2020, the Company decreased the allowance for expected credit losses utilizing its credit loss assessment process and inputs used in its credit loss model, primarily due to the disposition of securities which previously had an allowance recorded. The amortized cost and fair value of fixed maturity securities at September 30, 2020, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because certain issuers may have the right to call or prepay obligations. (In thousands) Amortized Fair Due in one year or less $ 1,372,865 $ 1,364,023 Due after one year through five years 5,200,384 5,376,126 Due after five years through ten years 3,313,415 3,461,879 Due after ten years 2,593,778 2,615,189 Mortgage-backed securities 1,054,951 1,090,344 Total $ 13,535,393 $ 13,907,561 ________________ (1) Amortized cost is reduced by the allowance for expected credit losses of $871 thousand related to held to maturity securities. |
Equity securities | |
Debt Securities, Available-for-sale [Line Items] | |
Investments in Equity Securities | Investments in Equity Securities At September 30, 2020 and December 31, 2019, investments in equity securities were as follows: (In thousands) Cost Gross Unrealized Fair Carrying Gains Losses September 30, 2020 Common stocks $ 184,196 $ 8,042 $ (31,380) $ 160,858 $ 160,858 Preferred stocks 177,444 100,004 (3,003) 274,445 274,445 Total $ 361,640 $ 108,046 $ (34,383) $ 435,303 $ 435,303 December 31, 2019 Common stocks $ 175,928 $ 16,967 $ (26,090) $ 166,805 $ 166,805 Preferred stocks 169,171 148,243 (3,599) 313,815 313,815 Total $ 345,099 $ 165,210 $ (29,689) $ 480,620 $ 480,620 |
Arbitrage Trading Account
Arbitrage Trading Account | 9 Months Ended |
Sep. 30, 2020 | |
Debt Securities, Trading, and Equity Securities, FV-NI [Abstract] | |
Arbitrage Trading Account | Arbitrage Trading Account At September 30, 2020 and December 31, 2019, the fair and carrying values of the arbitrage trading account were $596 million and $401 million, respectively. The primary focus of the trading account is merger arbitrage. Merger arbitrage is the business of investing in the securities of publicly held companies which are the targets in announced tender offers and mergers. Arbitrage investing differs from other types of investing in its focus on transactions and events believed likely to bring about a change in value over a relatively short time period (usually four months or less). The Company uses put options and call options in order to mitigate the impact of potential changes in market conditions on the merger arbitrage trading account. These options are reported at fair value. As of September 30, 2020, the fair value of long option contracts outstanding was $73 thousand (notional amount of $6.4 million) and the fair value of short option contracts outstanding was $77 thousand (notional amount of $11.4 million). Other than with respect to the use of these trading account securities, the Company does not make use of derivatives. |
Investment Funds
Investment Funds | 9 Months Ended |
Sep. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment Funds | Investment Funds The Company evaluates whether it is an investor in a variable interest entity ("VIE"). Such entities do not have sufficient equity at risk to finance their activities without additional subordinated financial support, or the equity investors, as a group, do not have the characteristics of a controlling financial interest (primary beneficiary). The Company determines whether it is the primary beneficiary of an entity subject to consolidation based on a qualitative assessment of the VIE's capital structure, contractual terms, nature of the VIE's operations and purpose, and the Company's relative exposure to the related risks of the VIE on the date it becomes initially involved in the VIE and on an ongoing basis. The Company is not the primary beneficiary in any of its investment funds, and accordingly, carries its interests in investment funds under the equity method of accounting. The Company’s maximum exposure to loss with respect to these investments is limited to the carrying amount reported on the Company’s consolidated balance sheet and its unfunded commitments, which were $136 million as of September 30, 2020. Investment funds consisted of the following: Carrying Value as of Income (Loss) from September 30, December 31, For the Nine Months (In thousands) 2020 2019 2020 2019 Real estate $ 312,181 $ 412,275 $ 2,140 $ 17,279 Financial services 351,695 280,705 3,303 36,516 Energy 136,250 156,869 (13,689) (10,342) Transportation 144,265 147,034 (3,521) 12,222 Other funds 219,316 216,652 13,027 21,609 Total $ 1,163,707 $ 1,213,535 $ 1,260 $ 77,284 The Company's share of the earnings or losses from investment funds is generally reported on a one-quarter lag in order to facilitate the timely completion of the Company's consolidated financial statements. |
Real Estate
Real Estate | 9 Months Ended |
Sep. 30, 2020 | |
Real Estate [Abstract] | |
Real Estate | Real Estate Investment in real estate represents directly owned property held for investment, as follows: Carrying Value September 30, December 31, (In thousands) 2020 2019 Properties in operation $ 1,651,343 $ 1,351,249 Properties under development 455,131 754,701 Total $ 2,106,474 $ 2,105,950 As of September 30, 2020, properties in operation included a long-term ground lease in Washington, D.C., two office complexes in New York City, office buildings in West Palm Beach and Palm Beach, Florida, an office building in London, and the completed portion of a mixed-use project in Washington D.C.. Properties in operation are net of accumulated depreciation and amortization of $78,113,000 and $59,832,000 as of September 30, 2020 and December 31, 2019, respectively. Related depreciation expense was $19,818,000 and $8,871,000 for the nine months ended September 30, 2020 and 2019, respectively. Future minimum rental income expected on operating leases relating to properties in operation is $19,629,625 in 2020, $82,022,840 in 2021, $83,544,465 in 2022, $77,429,542 in 2023, $74,828,766 in 2024, $71,126,366 in 2025 and $672,867,459 thereafter. The Company borrowed $101,750,000 through a non-recourse loan secured by the West Palm Beach office building in 2018. The loan matures in November 2028 and carries a fixed interest rate of 4.21%. The carrying value does not reflect the outstanding financing, which is reflected within senior notes and other debt on the Company's consolidated balance sheet. |
Loans Receivable
Loans Receivable | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Loans Receivable | Loans Receivable At September 30, 2020 and December 31, 2019, loans receivable were as follows: (In thousands) September 30, December 31, Amortized cost (net of allowance for expected credit losses): Real estate loans $ 52,089 $ 58,541 Commercial loans 32,682 33,258 Total $ 84,771 $ 91,799 Fair value: Real estate loans $ 53,848 $ 59,853 Commercial loans 32,682 34,760 Total $ 86,530 $ 94,613 The real estate loans are secured by commercial real estate primarily located in New York. These loans generally earn interest at floating LIBOR-based interest rates and have maturities (inclusive of extension options) through August 2025. The commercial loans are with small business owners who have secured the related financing with the assets of the business. Commercial loans primarily earn interest on a fixed basis and have varying maturities generally not exceeding 10 years. Loans receivable in non-accrual status were both $0.2 million as of September 30, 2020 and December 31, 2019. The following table presents the rollforward of the allowance for expected credit losses for loans receivable for the nine months ended September 30, 2020: Real Estate Loans Commercial Loans Total (In thousands) Allowance for expected credit losses at January 1, 2020 $ 1,502 $ 644 $ 2,146 Cumulative effect adjustment resulting from changes in accounting principles (905) 548 (357) Provision for expected credit losses 1,162 2,892 4,054 Allowance for expected credit losses at September 30, 2020 $ 1,759 $ 4,084 $ 5,843 The following table presents the rollforward of the allowance for expected credit losses for loans receivable for the three months ended September 30, 2020: Real Estate Loans Commercial Loans Total (In thousands) Allowance for expected credit losses at July 1, 2020 $ 4,318 $ 4,401 $ 8,719 Provision for expected credit losses (2,559) (317) (2,876) Allowance for expected credit losses at September 30, 2020 $ 1,759 $ 4,084 $ 5,843 The Company monitors the performance of its loans receivable and assesses the ability of the borrower to pay principal and interest based upon loan structure, underlying property values, cash flow and related financial and operating performance of the property and market conditions. |
Net Investment Gains (Losses)
Net Investment Gains (Losses) | 9 Months Ended |
Sep. 30, 2020 | |
Realized and Unrealized Investment Gains (Losses) [Abstract] | |
Net Investment Gains (Losses) | Net Investment Gains (Losses) Net investment gains (losses) were as follows: For the Three Months For the Nine Months (In thousands) 2020 2019 2020 2019 Net investment gains (losses): Fixed maturity securities: Gains $ 3,811 $ 2,100 $ 23,586 $ 10,503 Losses (39,162) (4,984) (53,243) (11,879) Equity securities (1): Net realized (losses) gains on investment sales (176) (11) 5,551 23,328 Change in unrealized gains (losses) 30,693 4,226 (61,859) 115,722 Investment funds 203 (456) 31,299 (398) Real estate 3,841 417 (3,983) 6,184 Loans receivable — — — (970) Other (6,982) 173 (30,755) 1,201 Net realized and unrealized (losses) gains on investments in earnings before allowance for expected credit losses (7,772) 1,465 (89,404) 143,691 Change in allowance for expected credit losses on investments (2): Fixed maturity securities 43,874 — 33,147 — Loans receivable 2,876 — (4,054) — Change in allowance for expected credit losses on investments 46,750 — 29,093 — Net investment gains (losses) 38,978 1,465 (60,311) 143,691 Income tax (expense) benefit (8,855) (308) 13,622 (30,175) After-tax net investment gains (losses) $ 30,123 $ 1,157 $ (46,689) $ 113,516 Change in unrealized investment gains (losses) on available for sale securities: Fixed maturity securities without allowance for expected credit losses $ 46,164 $ (12,178) $ 89,363 $ 308,945 Fixed maturity securities with allowance for expected credit losses 5,036 384 30,027 396 Investment funds (198) (2,689) (3,632) 4,863 Other (2,022) (14,109) (4,002) (26,465) Total change in unrealized investment gains (losses) 48,980 (28,592) 111,756 287,739 Income tax (expense) benefit (10,707) 3,847 (13,740) (68,060) Noncontrolling interests (3) 123 (2) 105 After-tax change in unrealized investment gains (losses) of available for sale securities $ 38,270 $ (24,622) $ 98,014 $ 219,784 ______________________ (1) The net realized gains or losses on investment sales represent the total gains or losses from the purchase dates of the equity securities. The change in unrealized gains (losses) consists of two components: (i) the reversal of the gain or loss recognized in previous periods on equity securities sold and (ii) the change in unrealized gain or loss resulting from mark-to-market adjustments on equity securities still held. (2) The inclusion of the allowance for expected credit losses on investments commenced January 1, 2020 due to the adoption of ASU 2016-13. See Note 3 for more details. |
Fixed Maturity Securities In An
Fixed Maturity Securities In An Unrealized Loss Position | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Fixed Maturity Securities In An Unrealized Loss Position | Fixed Maturity Securities in an Unrealized Loss Position The following tables summarize all fixed maturity securities in an unrealized loss position at September 30, 2020 and December 31, 2019 by the length of time those securities have been continuously in an unrealized loss position: Less Than 12 Months 12 Months or Greater Total (In thousands) Fair Gross Fair Gross Fair Gross September 30, 2020 U.S. government and government agency $ 115,161 $ 141 $ 18 $ — $ 115,179 $ 141 State and municipal 204,907 2,809 24,290 878 229,197 3,687 Mortgage-backed securities 116,958 2,673 28,578 200 145,536 2,873 Asset-backed securities 1,443,178 15,094 665,759 37,999 2,108,937 53,093 Corporate 636,250 19,158 40,224 2,793 676,474 21,951 Foreign government 127,441 25,088 5,706 20,462 133,147 45,550 Fixed maturity securities $ 2,643,895 $ 64,963 $ 764,575 $ 62,332 $ 3,408,470 $ 127,295 December 31, 2019 U.S. government and government agency $ 83,837 $ 618 $ 53,089 $ 857 $ 136,926 $ 1,475 State and municipal 365,184 4,245 127,210 1,682 492,394 5,927 Mortgage-backed securities 301,358 2,281 180,148 3,220 481,506 5,501 Asset-backed securities 755,259 2,307 774,508 19,183 1,529,767 21,490 Corporate 307,367 3,148 121,470 5,172 428,837 8,320 Foreign government 164,536 32,028 107,266 61,645 271,802 93,673 Fixed maturity securities $ 1,977,541 $ 44,627 $ 1,363,691 $ 91,759 $ 3,341,232 $ 136,386 Substantially all of the securities in an unrealized loss position are rated investment grade, except for the securities in the foreign government classification. In general, fair value in all classifications were affected by market disruptions caused by COVID-19. A significant amount of the unrealized loss on foreign government securities is the result of changes in currency exchange rates. A summary of the Company’s non-investment grade fixed maturity securities that were in an unrealized loss position at September 30, 2020 is presented in the table below: ($ in thousands) Number of Aggregate Gross Foreign government 22 $ 91,413 $ 45,247 Corporate 13 28,816 6,343 Mortgage-backed securities 8 1,659 34 Total 43 $ 121,888 $ 51,624 For fixed maturity securities that management does not intend to sell or to be required to sell, the portion of the decline in value that is considered to be due to credit factors is recognized in earnings, and the portion of the decline in value that is considered to be due to non-credit factors is recognized in other comprehensive income. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company’s fixed maturity available for sale securities, equity securities and its arbitrage trading account securities are carried at fair value. Fair value is defined as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” The Company utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels, as follows: Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 - Quoted prices for similar assets or valuations based on inputs that are observable. Level 3 - Estimates of fair value based on internal pricing methodologies using unobservable inputs. Unobservable inputs are only used to measure fair value to the extent that observable inputs are not available. Substantially all of the Company’s fixed maturity securities were priced by independent pricing services. The prices provided by the independent pricing services are estimated based on observable market data in active markets utilizing pricing models and processes, which may include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, sector groupings, matrix pricing and reference data. The pricing services may prioritize inputs differently on any given day for any security based on market conditions, and not all inputs are available for each security evaluation on any given day. The pricing services used by the Company have indicated that they will only produce an estimate of fair value if objectively verifiable information is available. The determination of whether markets are active or inactive is based upon the volume and level of activity for a particular asset class. The Company reviews the prices provided by pricing services for reasonableness and periodically performs independent price tests of a sample of securities to ensure proper valuation. If prices from independent pricing services are not available for fixed maturity securities, the Company estimates the fair value. For Level 2 securities, the Company utilizes pricing models and processes which may include benchmark yields, sector groupings, matrix pricing, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, bids, offers and reference data. Where broker quotes are used, the Company generally requests two or more quotes and sets a price within the range of quotes received based on its assessment of the credibility of the quote and its own evaluation of the security. The Company generally does not adjust quotes received from brokers. For securities traded only in private negotiations, the Company determines fair value based primarily on the cost of such securities, which is adjusted to reflect prices of recent placements of securities of the same issuer, financial projections, credit quality and business developments of the issuer and other relevant information. For Level 3 securities, the Company generally uses a discounted cash flow model to estimate the fair value of fixed maturity securities. The cash flow models are based upon assumptions as to prevailing credit spreads, interest rate and interest rate volatility, time to maturity and subordination levels. Projected cash flows are discounted at rates that are adjusted to reflect illiquidity, where appropriate. The following tables present the assets and liabilities measured at fair value on a recurring basis as of September 30, 2020 and December 31, 2019 by level: (In thousands) Total Level 1 Level 2 Level 3 September 30, 2020 Assets: Fixed maturity securities available for sale: U.S. government and government agency $ 697,432 $ — $ 697,432 $ — State and municipal 3,625,395 — 3,625,395 — Mortgage-backed securities 1,082,379 — 1,082,379 — Asset-backed securities 3,306,439 — 3,306,439 — Corporate 4,239,540 — 4,239,540 — Foreign government 869,344 — 869,344 — Total fixed maturity securities available for sale 13,820,529 — 13,820,529 — Equity securities: Common stocks 160,858 152,508 — 8,350 Preferred stocks 274,445 — 265,117 9,328 Total equity securities 435,303 152,508 265,117 17,678 Arbitrage trading account 595,727 307,915 287,812 — Total $ 14,851,559 $ 460,423 $ 14,373,458 $ 17,678 Liabilities: Trading account securities sold but not yet purchased $ 19,254 $ 19,254 $ — $ — December 31, 2019 Assets: Fixed maturity securities available for sale: U.S. government and government agency $ 786,931 $ — $ 786,931 $ — State and municipal 3,895,632 — 3,895,632 — Mortgage-backed securities 1,625,594 — 1,625,594 — Asset-backed securities 2,790,630 — 2,790,630 — Corporate 4,156,415 — 4,156,415 — Foreign government 847,076 — 847,076 — Total fixed maturity securities available for sale 14,102,278 — 14,102,278 — Equity securities: Common stocks 166,805 157,752 — 9,053 Preferred stocks 313,815 — 307,310 6,505 Total equity securities 480,620 157,752 307,310 15,558 Arbitrage trading account 400,809 381,061 19,748 — Total $ 14,983,707 $ 538,813 $ 14,429,336 $ 15,558 Liabilities: Trading account securities sold but not yet purchased $ 36,143 $ 36,143 $ — $ — The following tables summarize changes in Level 3 assets and liabilities for the nine months ended September 30, 2020 and for the year ended December 31, 2019: Gains (Losses) Included in: (In thousands) Beginning Earnings (Losses) Other Impairments Purchases (Sales) Paydowns / Maturities Transfers In / (Out) Ending Nine Months Ended September 30, 2020 Assets: Equity securities: Common stocks $ 9,053 $ 363 $ — $ — $ — $ (1,066) $ — $ — $ 8,350 Preferred stocks 6,505 (177) — — 3,000 — — — 9,328 Total $ 15,558 $ 186 $ — $ — $ 3,000 $ (1,066) $ — $ — $ 17,678 Year Ended Assets: Fixed maturities securities available for sale: Asset-backed securities $ 99 $ (26) $ 61 $ — $ — $ (134) $ — $ — $ — Total 99 (26) 61 — — (134) — — — Equity securities: Common stocks 8,596 2,005 — — (1,548) — — 9,053 Preferred stocks 3,945 (42) — — 2,602 — — — 6,505 Total 12,541 1,963 — — 2,602 (1,548) — — 15,558 Arbitrage trading account 17,308 (8,731) — — 14,767 (38,233) — 14,889 — Total $ 29,948 $ (6,794) $ 61 $ — $ 17,369 $ (39,915) $ — $ 14,889 $ 15,558 Liabilities: Trading account securities sold but not yet purchased $ 793 $ 133 $ — $ — $ 7,609 $ (8,535) $ — $ — $ — For the nine months ended September 30, 2020, there were no securities transferred into or out of Level 3. For the year ended December 31, 2019, there were two common stocks transferred into Level 3 in the arbitrage trading account where publicly traded prices were no longer available, and both were sold by year end. The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments: September 30, 2020 December 31, 2019 (In thousands) Carrying Value Fair Value Carrying Value Fair Value Assets: Fixed maturity securities $ 13,893,046 $ 13,907,561 $ 14,180,961 $ 14,194,955 Equity securities 435,303 435,303 480,620 480,620 Arbitrage trading account 595,727 595,727 400,809 400,809 Loans receivable 84,771 86,530 91,799 94,613 Cash and cash equivalents 2,571,447 2,571,447 1,023,710 1,023,710 Trading account receivables from brokers and clearing organizations 252,223 252,223 423,543 423,543 Liabilities: Due to broker 58,893 58,893 27,116 27,116 Trading account securities sold but not yet purchased 19,254 19,254 36,143 36,143 Subordinated debentures 1,443,736 1,530,810 1,198,704 1,274,088 Senior notes and other debt 1,629,077 1,898,483 1,427,575 1,582,290 The estimated fair values of the Company’s fixed maturity securities, equity securities and arbitrage trading account securities are based on various valuation techniques that rely on fair value measurements as described in Note 15. The fair value of loans receivable are estimated by using current institutional purchaser yield requirements for loans with similar credit characteristics, which is considered a Level 2 input. The fair value of the senior notes and other debt and the subordinated debentures is based on spreads for similar securities, which is considered a Level 2 input. In October 2020, the Company redeemed $350 million aggregate principal amount of 5.625% subordinated debentures due 2053. |
Reserves for Loss and Loss Expe
Reserves for Loss and Loss Expenses | 9 Months Ended |
Sep. 30, 2020 | |
Insurance [Abstract] | |
Reserves for Loss and Loss Expenses | Reserves for Loss and Loss Expenses The Company's reserves for losses and loss expenses are comprised of case reserves and incurred but not reported liabilities ("IBNR"). When a claim is reported, a case reserve is established for the estimated ultimate payment based upon known information about the claim. As more information about the claim becomes available over time, case reserves are adjusted up or down as appropriate. Reserves are also established on an aggregate basis to provide for IBNR liabilities and expected loss reserve development on reported claims. Loss reserves included in the Company’s financial statements represent management’s best estimates based upon an actuarially derived point estimate and other considerations. The Company uses a variety of actuarial techniques and methods to derive an actuarial point estimate for each operating unit. These methods include paid loss development, incurred loss development, paid and incurred Bornhuetter-Ferguson methods and frequency and severity methods. In circumstances where one actuarial method is considered more credible than the others, that method is used to set the point estimate. The actuarial point estimate may also be based on a judgmental weighting of estimates produced from each of the methods considered. Industry loss experience is used to supplement the Company’s own data in selecting “tail factors” in areas where the Company’s own data is limited. The actuarial data is analyzed by line of business, coverage and accident or policy year, as appropriate, for each operating unit. The establishment of the actuarially derived loss reserve point estimate also includes consideration of qualitative factors that may affect the ultimate losses. These qualitative considerations include, among others, the impact of re-underwriting initiatives, changes in the mix of business, changes in distribution sources and changes in policy terms and conditions. The key assumptions used to arrive at the best estimate of loss reserves are the expected loss ratios, rate of loss cost inflation, and reported and paid loss emergence patterns. Expected loss ratios represent management’s expectation of losses at the time the business is priced and written, before any actual claims experience has emerged. This expectation is a significant determinant of the estimate of loss reserves for recently written business where there is little paid or incurred loss data to consider. Expected loss ratios are generally derived from historical loss ratios adjusted for the impact of rate changes, loss cost trends and known changes in the type of risks underwritten. Expected loss ratios are estimated for each key line of business within each operating unit. Expected loss cost inflation is particularly important for the long-tail lines, such as excess casualty, and claims with a high medical component, such as workers’ compensation. Reported and paid loss emergence patterns are used to project current reported or paid loss amounts to their ultimate settlement value. Loss development factors are based on the historical emergence patterns of paid and incurred losses, and are derived from the Company’s own experience and industry data. The paid loss emergence pattern is also significant to excess and assumed workers’ compensation reserves because those reserves are discounted to their estimated present value based upon such estimated payout patterns. Loss frequency and severity are measures of loss activity that are considered in determining the key assumptions described in our discussion of loss and loss expense reserves, including expected loss ratios, rate of loss cost inflation and reported and paid loss emergence patterns. Loss frequency is a measure of the number of claims per unit of insured exposure, and loss severity is a measure of the average size of claims. Factors affecting loss frequency include the effectiveness of loss controls and safety programs and changes in economic activity or weather patterns. Factors affecting loss severity include changes in policy limits, retentions, rate of inflation and judicial interpretations. Another factor affecting estimates of loss frequency and severity is the loss reporting lag, which is the period of time between the occurrence of a loss and the date the loss is reported to the Company. The length of the loss reporting lag affects our ability to accurately predict loss frequency (loss frequencies are more predictable for lines with short reporting lags) as well as the amount of reserves needed for incurred but not reported losses (less IBNR is required for lines with short reporting lags). As a result, loss reserves for lines with short reporting lags are likely to have less variation from initial loss estimates. For lines with short reporting lags, which include commercial automobile, primary workers’ compensation, other liability (claims-made) and property business, the key assumption is the loss emergence pattern used to project ultimate loss estimates from known losses paid or reported to date. For lines of business with long reporting lags, which include other liability (occurrence), products liability, excess workers’ compensation and liability reinsurance, the key assumption is the expected loss ratio since there is often little paid or incurred loss data to consider. Historically, the Company has experienced less variation from its initial loss estimates for lines of businesses with short reporting lags than for lines of business with long reporting lags. The key assumptions used in calculating the most recent estimate of the loss reserves are reviewed each quarter and adjusted, to the extent necessary, to reflect the latest reported loss data, current trends and other factors observed. The table below provides a reconciliation of the beginning and ending reserve balances: September 30, (In thousands) 2020 2019 Net reserves at beginning of period $ 10,697,998 $ 10,248,883 Cumulative effect adjustment resulting from changes in accounting principles 5,927 — Restated net reserves at beginning of period 10,703,925 10,248,883 Net provision for losses and loss expenses: Claims occurring during the current year (1) 3,328,827 3,007,364 Increase in estimates for claims occurring in prior years (2) (3) 849 22,340 Loss reserve discount accretion 27,335 29,246 Total 3,357,011 3,058,950 Net payments for claims: Current year 570,924 767,945 Prior years 2,077,945 1,907,979 Total 2,648,869 2,675,924 Foreign currency translation (21,003) (49,455) Net reserves at end of period 11,391,064 10,582,454 Ceded reserves at end of period 2,068,295 1,814,501 Gross reserves at end of period $ 13,459,359 $ 12,396,955 _______________________________________ (1) Claims occurring during the current year are net of loss reserve discounts of $8 million and $15 million for the nine months ended September 30, 2020 and 2019, respectively. (2) The change in estimates for claims occurring in prior years is net of loss reserve discount. On an undiscounted basis, the estimates for claims occurring in prior years decreased by $19 million and increased by $12 million for the nine months ended September 30, 2020 and 2019, respectively. (3) For certain retrospectively rated insurance policies and reinsurance agreements, reserve development is offset by additional or return premiums. Favorable development, net of additional and return premiums, was $12 million and $17 million for the nine months ended September 30, 2020 and 2019, respectively. The ongoing COVID-19 global pandemic has impacted, and will likely continue to impact, the Company’s results through its effect on claim frequency and severity. Loss cost trends have been impacted and will likely be further impacted by COVID-19-related claims in certain lines of business, as well as by other effects of COVID-19 associated with economic conditions, inflation, and social distancing and work from home rules, for example. Although it is still too early to determine the net impact, it appears that the losses incurred due to COVID-19-related claims are being offset, to a certain extent, by lower claim frequency in certain lines of our businesses, including commercial auto, workers’ compensation, and other liability. However, given the continuing nature of the pandemic, the impact of COVID-19 could ultimately increase or decrease overall loss cost trends and is likely to have differing impacts on the Company's different lines of business. Most of the COVID-19-related claims reported to the Company to date involve certain short-tailed lines of business, including contingency and event cancellation, business interruption, and film production delay. The Company expects additional claims to be reported for these lines of business. The Company has also received COVID-19-related claims for longer-tailed casualty lines of business such as workers’ compensation and other liability; however, the estimated incurred loss impact for these reported claims appears to be modest at this time. Given the continuing uncertainty regarding the pandemic's pervasiveness and the time needed to develop widespread treatments and vaccines, and the related economic impacts, the future impact that the pandemic may have on claim frequency and severity remains uncertain at this time. In workers’ compensation, for example, nearly two-thirds of the states have enacted rules, legislation or administrative orders creating a presumption that certain “essential” workers who contract COVID-19 did so through the course of their employment. Several other states are considering similar actions, including varying the definition of “essential” workers. While the ultimate impact of these presumptions are unknown at this time, the Company believes that such state actions will likely increase workers’ compensation claims with respect to workers deemed “essential,” although this impact may be partially offset by lower workers’ compensation claim frequency with respect to non-essential workers. The Company has estimated the potential COVID-19 impact to its workers’ compensation, contingency and event cancellation, and other lines of business under a number of possible scenarios; however, due to COVID-19’s evolving impact and the still limited amount of available data, there remains a high degree of uncertainty around the Company’s COVID-19 reserves. In addition, several states (and international jurisdictions), through regulation, legislation and/or judicial action, continue to seek to expand policy coverage terms beyond the policy’s intended coverage, including, for example, but not limited to, property coverages, where there are attempts to extend business interruption coverage where there is no physical damage or loss to property, and attempts to disregard policy exclusions for communicable disease. Accordingly, losses arising from these actions, and the other factors described above, could exceed the Company’s reserves established for those related policies. For the nine months ended September 30, 2020, the Company has recognized losses for COVID-19-related claims activity, net of reinsurance, of approximately $143 million, of which $121 million relates to the Insurance segment and $22 million relates to the Reinsurance & Monoline Excess segment. Of the $143 million of COVID-19-related losses, $69 million are reported losses and $74 million is booked as IBNR. During the nine months ended September 30, 2020, favorable prior year development (net of additional and return premiums) of $12 million included $19 million of favorable development for the Insurance segment, partially offset by $7 million of adverse development for the Reinsurance & Monoline Excess segment. The overall favorable development for the Insurance segment was primarily attributable to favorable development on workers’ compensation business, partially offset by adverse development on professional liability business. The favorable workers’ compensation development was spread across many prior accident years, including prior to 2010, but was especially significant in accident year 2019. The favorable workers’ compensation development reflects a continuation of the benign loss cost trends experienced during recent years, particularly the favorable claim frequency trends. Our ongoing workers’ compensation claims management efforts, including active medical case management and use of networks and specialty vendors to control medical and pharmaceutical benefit costs, have also added to the favorable workers’ compensation prior year development. The adverse professional liability development was mainly concentrated in accident years 2016 through 2018 and was largely driven by higher than expected large losses being reported in the directors and officers and lawyers professional liability lines of business. The adverse development for the Reinsurance & Monoline Excess segment was mainly driven by non-proportional reinsurance assumed liability business written in the U.K. for accident years 2016 through 2018, partially offset by favorable development on excess workers’ compensation business. The adverse development was driven by a greater than expected number of reported large losses. During the nine months ended September 30, 2019, favorable prior year development (net of additional and return premiums) of $17 million included $18 million of favorable development for the Insurance segment, partially offset by $1 million of adverse development for the Reinsurance & Monoline Excess segment. The overall favorable development for the Insurance segment was primarily attributable to favorable development on workers’ compensation business, partially offset by adverse development on general liability, professional liability, and commercial auto liability business. The favorable workers’ compensation development was mainly attributable to accident years 2014 through 2018, and reflects a continuation of the benign loss cost trends experienced during recent years, particularly the favorable claim frequency trends (i.e., number of reported claims per unit of exposure). The adverse general liability development was mainly related to accident years 2015 through 2017 and was driven by a higher than expected number of large losses being reported in the period. The adverse professional liability development was mainly from accident years 2013 through 2016 and was driven by an increased frequency of large losses relating to lawyers professional and directors and officers liability. The adverse commercial auto liability development was primarily related to accident years 2015 through 2018 (with most in 2018), and was driven by a higher than expected number of large losses. |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Of Financial Instruments | Fair Value Measurements The Company’s fixed maturity available for sale securities, equity securities and its arbitrage trading account securities are carried at fair value. Fair value is defined as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” The Company utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels, as follows: Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 - Quoted prices for similar assets or valuations based on inputs that are observable. Level 3 - Estimates of fair value based on internal pricing methodologies using unobservable inputs. Unobservable inputs are only used to measure fair value to the extent that observable inputs are not available. Substantially all of the Company’s fixed maturity securities were priced by independent pricing services. The prices provided by the independent pricing services are estimated based on observable market data in active markets utilizing pricing models and processes, which may include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, sector groupings, matrix pricing and reference data. The pricing services may prioritize inputs differently on any given day for any security based on market conditions, and not all inputs are available for each security evaluation on any given day. The pricing services used by the Company have indicated that they will only produce an estimate of fair value if objectively verifiable information is available. The determination of whether markets are active or inactive is based upon the volume and level of activity for a particular asset class. The Company reviews the prices provided by pricing services for reasonableness and periodically performs independent price tests of a sample of securities to ensure proper valuation. If prices from independent pricing services are not available for fixed maturity securities, the Company estimates the fair value. For Level 2 securities, the Company utilizes pricing models and processes which may include benchmark yields, sector groupings, matrix pricing, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, bids, offers and reference data. Where broker quotes are used, the Company generally requests two or more quotes and sets a price within the range of quotes received based on its assessment of the credibility of the quote and its own evaluation of the security. The Company generally does not adjust quotes received from brokers. For securities traded only in private negotiations, the Company determines fair value based primarily on the cost of such securities, which is adjusted to reflect prices of recent placements of securities of the same issuer, financial projections, credit quality and business developments of the issuer and other relevant information. For Level 3 securities, the Company generally uses a discounted cash flow model to estimate the fair value of fixed maturity securities. The cash flow models are based upon assumptions as to prevailing credit spreads, interest rate and interest rate volatility, time to maturity and subordination levels. Projected cash flows are discounted at rates that are adjusted to reflect illiquidity, where appropriate. The following tables present the assets and liabilities measured at fair value on a recurring basis as of September 30, 2020 and December 31, 2019 by level: (In thousands) Total Level 1 Level 2 Level 3 September 30, 2020 Assets: Fixed maturity securities available for sale: U.S. government and government agency $ 697,432 $ — $ 697,432 $ — State and municipal 3,625,395 — 3,625,395 — Mortgage-backed securities 1,082,379 — 1,082,379 — Asset-backed securities 3,306,439 — 3,306,439 — Corporate 4,239,540 — 4,239,540 — Foreign government 869,344 — 869,344 — Total fixed maturity securities available for sale 13,820,529 — 13,820,529 — Equity securities: Common stocks 160,858 152,508 — 8,350 Preferred stocks 274,445 — 265,117 9,328 Total equity securities 435,303 152,508 265,117 17,678 Arbitrage trading account 595,727 307,915 287,812 — Total $ 14,851,559 $ 460,423 $ 14,373,458 $ 17,678 Liabilities: Trading account securities sold but not yet purchased $ 19,254 $ 19,254 $ — $ — December 31, 2019 Assets: Fixed maturity securities available for sale: U.S. government and government agency $ 786,931 $ — $ 786,931 $ — State and municipal 3,895,632 — 3,895,632 — Mortgage-backed securities 1,625,594 — 1,625,594 — Asset-backed securities 2,790,630 — 2,790,630 — Corporate 4,156,415 — 4,156,415 — Foreign government 847,076 — 847,076 — Total fixed maturity securities available for sale 14,102,278 — 14,102,278 — Equity securities: Common stocks 166,805 157,752 — 9,053 Preferred stocks 313,815 — 307,310 6,505 Total equity securities 480,620 157,752 307,310 15,558 Arbitrage trading account 400,809 381,061 19,748 — Total $ 14,983,707 $ 538,813 $ 14,429,336 $ 15,558 Liabilities: Trading account securities sold but not yet purchased $ 36,143 $ 36,143 $ — $ — The following tables summarize changes in Level 3 assets and liabilities for the nine months ended September 30, 2020 and for the year ended December 31, 2019: Gains (Losses) Included in: (In thousands) Beginning Earnings (Losses) Other Impairments Purchases (Sales) Paydowns / Maturities Transfers In / (Out) Ending Nine Months Ended September 30, 2020 Assets: Equity securities: Common stocks $ 9,053 $ 363 $ — $ — $ — $ (1,066) $ — $ — $ 8,350 Preferred stocks 6,505 (177) — — 3,000 — — — 9,328 Total $ 15,558 $ 186 $ — $ — $ 3,000 $ (1,066) $ — $ — $ 17,678 Year Ended Assets: Fixed maturities securities available for sale: Asset-backed securities $ 99 $ (26) $ 61 $ — $ — $ (134) $ — $ — $ — Total 99 (26) 61 — — (134) — — — Equity securities: Common stocks 8,596 2,005 — — (1,548) — — 9,053 Preferred stocks 3,945 (42) — — 2,602 — — — 6,505 Total 12,541 1,963 — — 2,602 (1,548) — — 15,558 Arbitrage trading account 17,308 (8,731) — — 14,767 (38,233) — 14,889 — Total $ 29,948 $ (6,794) $ 61 $ — $ 17,369 $ (39,915) $ — $ 14,889 $ 15,558 Liabilities: Trading account securities sold but not yet purchased $ 793 $ 133 $ — $ — $ 7,609 $ (8,535) $ — $ — $ — For the nine months ended September 30, 2020, there were no securities transferred into or out of Level 3. For the year ended December 31, 2019, there were two common stocks transferred into Level 3 in the arbitrage trading account where publicly traded prices were no longer available, and both were sold by year end. The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments: September 30, 2020 December 31, 2019 (In thousands) Carrying Value Fair Value Carrying Value Fair Value Assets: Fixed maturity securities $ 13,893,046 $ 13,907,561 $ 14,180,961 $ 14,194,955 Equity securities 435,303 435,303 480,620 480,620 Arbitrage trading account 595,727 595,727 400,809 400,809 Loans receivable 84,771 86,530 91,799 94,613 Cash and cash equivalents 2,571,447 2,571,447 1,023,710 1,023,710 Trading account receivables from brokers and clearing organizations 252,223 252,223 423,543 423,543 Liabilities: Due to broker 58,893 58,893 27,116 27,116 Trading account securities sold but not yet purchased 19,254 19,254 36,143 36,143 Subordinated debentures 1,443,736 1,530,810 1,198,704 1,274,088 Senior notes and other debt 1,629,077 1,898,483 1,427,575 1,582,290 The estimated fair values of the Company’s fixed maturity securities, equity securities and arbitrage trading account securities are based on various valuation techniques that rely on fair value measurements as described in Note 15. The fair value of loans receivable are estimated by using current institutional purchaser yield requirements for loans with similar credit characteristics, which is considered a Level 2 input. The fair value of the senior notes and other debt and the subordinated debentures is based on spreads for similar securities, which is considered a Level 2 input. In October 2020, the Company redeemed $350 million aggregate principal amount of 5.625% subordinated debentures due 2053. |
Premiums and Reinsurance Relate
Premiums and Reinsurance Related Information | 9 Months Ended |
Sep. 30, 2020 | |
Insurance [Abstract] | |
Premiums and Reinsurance Related Information | Premiums and Reinsurance Related Information The following is a summary of insurance and reinsurance financial information: For the Three Months For the Nine Months (In thousands) 2020 2019 2020 2019 Written premiums: Direct $ 2,018,530 $ 1,853,881 $ 5,875,379 $ 5,566,728 Assumed 244,015 239,169 750,784 662,412 Ceded (383,229) (343,144) (1,161,183) (1,026,169) Total net premiums written $ 1,879,316 $ 1,749,906 $ 5,464,980 $ 5,202,971 Earned premiums: Direct $ 1,877,234 $ 1,797,726 $ 5,511,791 $ 5,294,773 Assumed 237,815 209,094 699,025 595,946 Ceded (366,128) (330,010) (1,093,563) (974,212) Total net premiums earned $ 1,748,921 $ 1,676,810 $ 5,117,253 $ 4,916,507 Ceded losses and loss expenses incurred $ 209,706 $ 172,009 $ 677,761 $ 584,323 Ceded commissions earned $ 89,104 $ 76,001 $ 255,742 $ 220,110 The following table presents the rollforward of the allowance for expected credit losses for premiums and fees receivable for the nine months ended September 30, 2020: (In thousands) Allowance for expected credit losses at January 1, 2020 $ 19,823 Cumulative effect adjustment resulting from changes in accounting principles 1,270 Provision for expected credit losses 1,940 Allowance for expected credit losses at September 30, 2020 $ 23,033 The following table presents the rollforward of the allowance for expected credit losses for premiums and fees receivable for the three months ended September 30, 2020: (In thousands) Allowance for expected credit losses at July 1, 2020 $ 22,106 Provision for expected credit losses 927 Allowance for expected credit losses at September 30, 2020 $ 23,033 The Company reinsures a portion of its insurance exposures in order to reduce its net liability on individual risks and catastrophe losses. The Company also cedes premiums to state assigned risk plans and captive insurance companies. Estimated amounts due from reinsurers are reported net of an allowance for expected credit losses. The following table presents the rollforward of the allowance for expected credit losses associated with due from reinsurers for the nine months ended September 30, 2020: (In thousands) Allowance for expected credit losses at January 1, 2020 $ 690 Cumulative effect adjustment resulting from changes in accounting principles 5,927 Provision for expected credit losses 1,124 Allowance for expected credit losses at September 30, 2020 $ 7,741 The following table presents the rollforward of the allowance for expected credit losses associated with due from reinsurers for the three months ended September 30, 2020: (In thousands) Allowance for expected credit losses at July 1, 2020 $ 7,175 Provision for expected credit losses 566 Allowance for expected credit losses at September 30, 2020 $ 7,741 |
Restricted Stock Units
Restricted Stock Units | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Restricted Stock Units | Restricted Stock Units Pursuant to its stock incentive plan, the Company may issue restricted stock units ("RSUs") to employees of the Company and its subsidiaries. The RSUs generally vest three ($ in thousands) Units Fair Value 2020 953,519 $ 59,683 2019 839,263 $ 59,435 |
Litigation and Contingent Liabi
Litigation and Contingent Liabilities | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation and Contingent Liabilities | Litigation and Contingent Liabilities In the ordinary course of business, the Company is subject to disputes, litigation and arbitration arising from its insurance and reinsurance businesses. These matters are generally related to insurance and reinsurance claims and are considered in the establishment of loss and loss expense reserves. In addition, the Company may also become involved in legal actions which seek extra-contractual damages, punitive damages or penalties, including claims alleging bad faith in handling of insurance claims. The Company expects its ultimate liability with respect to such matters will not be material to its financial condition. However, adverse outcomes on such matters are possible, from time to time, and could be material to the Company’s results of operations in any particular financial reporting period. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | Leases Lessees are required to recognize a right-of-use asset and a lease liability for leases with terms of more than 12 months on the balance sheet. All leases disclosed within this footnote are classified as operating leases. Recognized right-of-use asset and lease liability are reported within other assets and other liabilities, respectively, in the consolidated balance sheet. Lease expense is reported in other operating costs and expenses in the consolidated statement of income and accounted for on a straight-line basis over the lease term. To determine the discount rate used to calculate present value of future minimum lease payments, the Company uses its incremental borrowing rate during the lease commencement period in line with the respective lease duration. In certain cases, the Company has the option to renew the lease. Lease renewal future payments are included in the present value of the future minimum lease payments when the Company determines it is reasonably certain to renew. The main leases entered into by the Company are for office space used by the Company’s operating units across the world. Additionally, the Company, to a lesser extent, has equipment leases mainly for office equipment. Further information relating to operating lease expense and other operating lease information are as follows: For the Three Months Ended For the Nine Months Ended September 30, (In thousands) 2020 2019 2020 2019 Leases: Lease cost $ 11,016 $ 10,734 $ 33,130 $ 32,969 Cash paid for amounts included in the measurement of lease liabilities reported in operating cash flows $ 11,560 $ 11,241 $ 33,869 $ 34,030 Right-of-use assets obtained in exchange for new lease liabilities $ 1,344 $ 23,211 $ 5,639 $ 31,095 As of September 30, ($ in thousands) 2020 2019 Right-of-use assets $ 172,473 $ 194,553 Lease liabilities $ 211,808 $ 226,291 Weighted-average remaining lease term 6.7 years 7.2 years Weighted-average discount rate 5.93 % 5.97 % Contractual maturities of the Company’s future minimum lease payments are as follows: (In thousands) September 30, 2020 Contractual Maturities: 2020 $ 12,162 2021 46,835 2022 41,637 2023 37,737 2024 31,439 Thereafter 78,806 Total undiscounted future minimum lease payments 248,616 Less: Discount impact (36,808) Total lease liability $ 211,808 |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The Company’s reportable segments include the following two business segments, plus a corporate segment: • Insurance - predominantly commercial insurance business, including excess and surplus lines, admitted lines and specialty personal lines throughout the United States, as well as insurance business in the United Kingdom, Continental Europe, South America, Canada, Mexico, Scandinavia, Asia and Australia. • Reinsurance & Monoline Excess - reinsurance business on a facultative and treaty basis, primarily in the United States, the United Kingdom, Continental Europe, Australia, the Asia-Pacific Region and South Africa, as well as operations that solely retain risk on an excess basis. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. Income tax expense and benefits are calculated based upon the Company's overall effective tax rate. Summary financial information about the Company's reporting segments is presented in the following tables. Income (loss) before income taxes by segment includes allocated investment income. Identifiable assets by segment are those assets used in or allocated to the operation of each segment. Revenues (In thousands) Earned Investment Other Total (2) Pre-Tax Income (Loss) Net Income (Loss) to Common Stockholders Three months ended September 30, 2020 Insurance $ 1,531,093 $ 87,828 $ 9,463 $ 1,628,384 $ 178,971 $ 130,266 Reinsurance & Monoline Excess 217,828 40,306 — 258,134 61,532 49,070 Corporate, other and eliminations (3) — 14,516 99,807 114,323 (73,067) (57,781) Net investment gains — — 38,978 38,978 38,978 30,123 Total $ 1,748,921 $ 142,650 $ 148,248 $ 2,039,819 $ 206,414 $ 151,678 Three months ended September 30, 2019 Insurance $ 1,493,854 $ 99,628 $ 11,611 $ 1,605,093 $ 202,390 $ 162,994 Reinsurance & Monoline Excess 182,956 43,768 — 226,724 46,863 38,240 Corporate, other and eliminations (3) — 18,296 114,138 132,434 (47,736) (37,184) Net investment gains — — 1,465 1,465 1,465 1,158 Total $ 1,676,810 $ 161,692 $ 127,214 $ 1,965,716 $ 202,982 $ 165,208 Nine months ended September 30, 2020 Insurance $ 4,481,092 $ 255,392 $ 25,953 $ 4,762,437 $ 431,464 $ 315,733 Reinsurance & Monoline Excess 636,161 101,477 — 737,638 110,611 88,947 Corporate, other and eliminations (3) — 45,975 300,715 346,690 (176,369) (139,471) Net investment losses — — (60,311) (60,311) (60,311) (46,689) Total $ 5,117,253 $ 402,844 $ 266,357 $ 5,786,454 $ 305,395 $ 218,520 Nine months ended September 30, 2019 Insurance $ 4,396,071 $ 332,072 $ 38,542 $ 4,766,685 $ 612,777 $ 488,228 Reinsurance & Monoline Excess 520,436 127,791 — 648,227 144,353 115,630 Corporate, other and eliminations (3) — 48,416 319,103 367,519 (194,664) (154,736) Net investment gains — — 143,691 143,691 143,691 113,516 Total $ 4,916,507 $ 508,279 $ 501,336 $ 5,926,122 $ 706,157 $ 562,638 _________________ (1) Certain amounts included in earned premiums of each segment are related to inter-segment transactions. (2) Revenues for Insurance from foreign countries for the three months ended September 30, 2020 and 2019 were $183 million and $185 million, respectively, and for the nine months ended September 30, 2020 and 2019 were $500 million and $535 million, respectively. Revenues for Reinsurance & Monoline Excess from foreign countries for the three months ended September 30, 2020 and 2019 were $77 million and $65 million, respectively, and for the nine months ended September 30, 2020 and 2019 were $212 million and $186 million, respectively. (3) Corporate, other and eliminations represent corporate revenues and expenses that are not allocated to business segments. Identifiable Assets (In thousands) September 30, December 31, Insurance $ 21,060,144 $ 20,005,802 Reinsurance & Monoline Excess 4,697,249 4,710,819 Corporate, other and eliminations 2,454,977 1,913,409 Consolidated $ 28,212,370 $ 26,630,030 Net premiums earned by major line of business are as follows: For the Three Months For the Nine Months (In thousands) 2020 2019 2020 2019 Insurance: Other liability $ 561,595 $ 527,253 $ 1,653,189 $ 1,523,534 Short-tail lines (1) 326,019 310,423 917,466 905,365 Workers' compensation 271,802 321,872 852,101 979,059 Commercial automobile 203,047 191,136 583,024 560,340 Professional liability 168,630 143,170 475,312 427,773 Total Insurance 1,531,093 1,493,854 4,481,092 4,396,071 Reinsurance & Monoline Excess: Casualty reinsurance 130,186 106,532 383,375 292,471 Monoline excess (2) 43,577 40,639 126,800 119,020 Property reinsurance 44,065 35,785 125,986 108,945 Total Reinsurance & Monoline Excess 217,828 182,956 636,161 520,436 Total $ 1,748,921 $ 1,676,810 $ 5,117,253 $ 4,916,507 ______________ (1) Short-tail lines include commercial multi-peril (non-liability), inland marine, accident and health, fidelity and surety, boiler and machinery and other lines. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements and Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Per Share Data | Per Share Data The Company presents both basic and diluted net income per share (“EPS”) amounts. Basic EPS is calculated by dividing net income by the weighted average number of common shares outstanding during the period (including 7,575,168 and 7,389,781 common shares held in a grantor trust as of September 30, 2020 and 2019, respectively). The common shares held in the grantor trust are for delivery upon settlement of vested but mandatorily deferred restricted stock units ("RSUs"). Shares held by the grantor trust do not affect diluted shares outstanding since the shares deliverable under vested RSUs were already included in diluted shares outstanding. Diluted EPS is based upon the weighted average number of basic and common equivalent shares outstanding during the period and is calculated using the treasury stock method for stock incentive plans. Common equivalent shares are excluded from the computation in periods in which they have an anti-dilutive effect |
Recent Accounting Pronouncements | Recent Accounting Pronouncements and Accounting Policies Recently adopted accounting pronouncements: In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses, which amended the accounting guidance for credit losses on financial instruments. The updated guidance amended the then current other-than-temporary impairment model for available for sale debt securities by requiring the recognition of impairments relating to expected credit losses through an allowance account and limits the amount of credit loss to the difference between a security’s amortized cost basis and its fair value. This guidance also applies a new current expected credit loss model for determining credit-related impairments for financial instruments measured at amortized cost, such as reinsurance recoverables. The updated guidance was effective for reporting periods beginning after December 15, 2019. The adoption of this guidance on January 1, 2020 resulted in the recognition of an allowance for expected credit losses in connection with operating assets (premiums and fees receivable and due from reinsurers) of $5.7 million (net of tax) and a corresponding cumulative effect adjustment that decreased common stockholders' equity. Certain investments (primarily fixed maturity securities available for sale) established an allowance for expected credit loss of $24.8 million (net of tax), with a cumulative effect adjustment decreasing retained earnings by $24.8 million (net of tax) and increasing accumulated other comprehensive (loss) income ("AOCI") by $25.0 million (net of tax), resulting in $0.2 million net impact to total common stockholders' equity. All other accounting and reporting standards that have become effective in 2020 were either not applicable to the Company or their adoption did not have a material impact on the Company. Accounting and reporting standards that are not yet effective: All recently issued but not yet effective accounting and reporting standards are either not applicable to the Company or are not expected to have a material impact on the Company. |
Per Share Data (Tables)
Per Share Data (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Weighted average number of common shares | The weighted average number of common shares used in the computation of basic and diluted earnings per share was as follows: For the Three Months For the Nine Months (In thousands) 2020 2019 2020 2019 Basic 185,765 190,862 187,338 190,593 Diluted 187,717 193,589 189,515 193,557 |
Investments in Fixed Maturity_2
Investments in Fixed Maturity Securities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of investments in fixed maturity securities | At September 30, 2020 and December 31, 2019, investments in fixed maturity securities were as follows: (In thousands) Amortized Allowance for Expected Credit Losses (1) Gross Unrealized Fair Carrying Gains Losses September 30, 2020 Held to maturity: State and municipal $ 66,532 $ (871) $ 13,406 $ — $ 79,067 $ 65,661 Residential mortgage-backed 6,856 — 1,109 — 7,965 6,856 Total held to maturity 73,388 (871) 14,515 — 87,032 72,517 Available for sale: U.S. government and government agency 676,493 — 21,080 (141) 697,432 697,432 State and municipal: Special revenue 2,195,851 — 93,278 (2,455) 2,286,674 2,286,674 State general obligation 356,321 — 31,586 — 387,907 387,907 Pre-refunded 257,570 — 22,521 (149) 279,942 279,942 Corporate backed 223,508 — 9,641 (549) 232,600 232,600 Local general obligation 396,831 — 41,975 (534) 438,272 438,272 Total state and municipal 3,430,081 — 199,001 (3,687) 3,625,395 3,625,395 Mortgage-backed securities: Residential 848,878 — 29,989 (2,513) 876,354 876,354 Commercial 199,217 — 7,168 (360) 206,025 206,025 Total mortgage-backed securities 1,048,095 — 37,157 (2,873) 1,082,379 1,082,379 Asset-backed 3,347,867 — 11,665 (53,093) 3,306,439 3,306,439 Corporate: Industrial 2,240,914 (606) 104,694 (18,404) 2,326,598 2,326,598 Financial 1,471,997 — 55,706 (3,067) 1,524,636 1,524,636 Utilities 325,809 — 30,270 (460) 355,619 355,619 Other 32,262 — 445 (20) 32,687 32,687 Total corporate 4,070,982 (606) 191,115 (21,951) 4,239,540 4,239,540 Foreign government 889,358 (1,090) 26,626 (45,550) 869,344 869,344 Total available for sale 13,462,876 (1,696) 486,644 (127,295) 13,820,529 13,820,529 Total investments in fixed maturity securities $ 13,536,264 $ (2,567) $ 501,159 $ (127,295) $ 13,907,561 $ 13,893,046 ____________ (1) Represents the amount of impairment that has resulted from credit-related factors. The change in the allowance for expected credit losses, excluding the cumulative effect adjustment resulting from changes in accounting principles, is recognized in the consolidated statements of income. Amount excludes unrealized losses relating to non-credit factors. (In thousands) Amortized Gross Unrealized Fair Carrying Gains Losses December 31, 2019 Held to maturity: State and municipal $ 70,312 $ 13,000 $ — $ 83,312 $ 70,312 Residential mortgage-backed 8,371 994 — 9,365 8,371 Total held to maturity 78,683 13,994 — 92,677 78,683 Available for sale: U.S. government and government agency 775,157 13,249 (1,475) 786,931 786,931 State and municipal: Special revenue 2,343,209 64,586 (4,152) 2,403,643 2,403,643 State general obligation 359,298 22,074 (97) 381,275 381,275 Pre-refunded 364,571 20,342 (128) 384,785 384,785 Corporate backed 255,230 7,232 (903) 261,559 261,559 Local general obligation 432,333 32,684 (647) 464,370 464,370 Total state and municipal 3,754,641 146,918 (5,927) 3,895,632 3,895,632 Mortgage-backed securities: Residential 1,298,145 23,230 (5,155) 1,316,220 1,316,220 Commercial 304,506 5,214 (346) 309,374 309,374 Total mortgage-backed securities 1,602,651 28,444 (5,501) 1,625,594 1,625,594 Asset-backed 2,802,588 9,532 (21,490) 2,790,630 2,790,630 Corporate: Industrial 2,260,073 72,900 (3,800) 2,329,173 2,329,173 Financial 1,447,589 37,681 (4,118) 1,481,152 1,481,152 Utilities 325,762 15,281 (402) 340,641 340,641 Other 5,219 230 — 5,449 5,449 Total corporate 4,038,643 126,092 (8,320) 4,156,415 4,156,415 Foreign government 924,284 16,465 (93,673) 847,076 847,076 Total available for sale 13,897,964 340,700 (136,386) 14,102,278 14,102,278 Total investments in fixed maturity securities $ 13,976,647 $ 354,694 $ (136,386) $ 14,194,955 $ 14,180,961 |
Debt Securities, Held-to-maturity, Allowance for Credit Loss | The following table presents the rollforward of the allowance for expected credit losses for held to maturity securities for the nine months ended September 30, 2020: State and Municipal (In thousands) Allowance for expected credit losses at January 1, 2020 $ — Cumulative effect adjustment resulting from changes in accounting principles 69 Provision for expected credit losses 802 Allowance for expected credit losses at September 30, 2020 $ 871 The following table presents the rollforward of the allowance for expected credit losses for held to maturity securities for the three months ended September 30, 2020: State and Municipal (In thousands) Allowance for expected credit losses at July 1, 2020 $ 948 Provision for expected credit losses (77) Allowance for expected credit losses at September 30, 2020 $ 871 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | The following table presents the rollforward of the allowance for expected credit losses for available for sale securities for the nine months ended September 30, 2020: Foreign Government Corporate Total (In thousands) Allowance for expected credit losses at January 1, 2020 $ — $ — $ — Cumulative effect adjustment resulting from changes in accounting principles 35,645 — 35,645 Expected credit losses on securities for which credit losses were not previously recorded 12,494 7,058 19,552 Expected credit losses on securities for which credit losses were previously recorded 295 (3,767) (3,472) Reduction due to disposals (47,344) (2,685) (50,029) Allowance for expected credit losses at September 30, 2020 $ 1,090 $ 606 $ 1,696 The following table presents the rollforward of the allowance for expected credit losses for available for sale securities for the three months ended September 30, 2020: Foreign Government Corporate Total (In thousands) Allowance for expected credit losses at July 1, 2020 $ 44,769 $ 724 $ 45,493 Expected credit losses on securities for which credit losses were not previously recorded — 261 261 Expected credit losses on securities for which credit losses were previously recorded (252) (9) (261) Reduction due to disposals (43,427) (370) (43,797) Allowance for expected credit losses at September 30, 2020 $ 1,090 $ 606 $ 1,696 |
Amortized cost and fair value of fixed maturity securities by contractual maturity | The amortized cost and fair value of fixed maturity securities at September 30, 2020, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because certain issuers may have the right to call or prepay obligations. (In thousands) Amortized Fair Due in one year or less $ 1,372,865 $ 1,364,023 Due after one year through five years 5,200,384 5,376,126 Due after five years through ten years 3,313,415 3,461,879 Due after ten years 2,593,778 2,615,189 Mortgage-backed securities 1,054,951 1,090,344 Total $ 13,535,393 $ 13,907,561 ________________ |
Investments in Equity Securit_2
Investments in Equity Securities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity securities | |
Debt Securities, Available-for-sale [Line Items] | |
Schedule of Investments in Equity Securities | At September 30, 2020 and December 31, 2019, investments in equity securities were as follows: (In thousands) Cost Gross Unrealized Fair Carrying Gains Losses September 30, 2020 Common stocks $ 184,196 $ 8,042 $ (31,380) $ 160,858 $ 160,858 Preferred stocks 177,444 100,004 (3,003) 274,445 274,445 Total $ 361,640 $ 108,046 $ (34,383) $ 435,303 $ 435,303 December 31, 2019 Common stocks $ 175,928 $ 16,967 $ (26,090) $ 166,805 $ 166,805 Preferred stocks 169,171 148,243 (3,599) 313,815 313,815 Total $ 345,099 $ 165,210 $ (29,689) $ 480,620 $ 480,620 |
Investment Funds (Tables)
Investment Funds (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Investment Funds | Investment funds consisted of the following: Carrying Value as of Income (Loss) from September 30, December 31, For the Nine Months (In thousands) 2020 2019 2020 2019 Real estate $ 312,181 $ 412,275 $ 2,140 $ 17,279 Financial services 351,695 280,705 3,303 36,516 Energy 136,250 156,869 (13,689) (10,342) Transportation 144,265 147,034 (3,521) 12,222 Other funds 219,316 216,652 13,027 21,609 Total $ 1,163,707 $ 1,213,535 $ 1,260 $ 77,284 |
Real Estate (Tables)
Real Estate (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Real Estate [Abstract] | |
Schedule of Real Estate Investments | Investment in real estate represents directly owned property held for investment, as follows: Carrying Value September 30, December 31, (In thousands) 2020 2019 Properties in operation $ 1,651,343 $ 1,351,249 Properties under development 455,131 754,701 Total $ 2,106,474 $ 2,105,950 |
Loans Receivable Loans Receivab
Loans Receivable Loans Receivable (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Schedule of Loans Receivable | oans receivable were as follows: (In thousands) September 30, December 31, Amortized cost (net of allowance for expected credit losses): Real estate loans $ 52,089 $ 58,541 Commercial loans 32,682 33,258 Total $ 84,771 $ 91,799 Fair value: Real estate loans $ 53,848 $ 59,853 Commercial loans 32,682 34,760 Total $ 86,530 $ 94,613 |
Financing Receivable, Allowance for Credit Loss | The following table presents the rollforward of the allowance for expected credit losses for loans receivable for the nine months ended September 30, 2020: Real Estate Loans Commercial Loans Total (In thousands) Allowance for expected credit losses at January 1, 2020 $ 1,502 $ 644 $ 2,146 Cumulative effect adjustment resulting from changes in accounting principles (905) 548 (357) Provision for expected credit losses 1,162 2,892 4,054 Allowance for expected credit losses at September 30, 2020 $ 1,759 $ 4,084 $ 5,843 The following table presents the rollforward of the allowance for expected credit losses for loans receivable for the three months ended September 30, 2020: Real Estate Loans Commercial Loans Total (In thousands) Allowance for expected credit losses at July 1, 2020 $ 4,318 $ 4,401 $ 8,719 Provision for expected credit losses (2,559) (317) (2,876) Allowance for expected credit losses at September 30, 2020 $ 1,759 $ 4,084 $ 5,843 |
Net Investment Gains (Losses) (
Net Investment Gains (Losses) (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Realized and Unrealized Investment Gains (Losses) [Abstract] | |
Realized And Unrealized Investment Gains (Losses) | Net investment gains (losses) were as follows: For the Three Months For the Nine Months (In thousands) 2020 2019 2020 2019 Net investment gains (losses): Fixed maturity securities: Gains $ 3,811 $ 2,100 $ 23,586 $ 10,503 Losses (39,162) (4,984) (53,243) (11,879) Equity securities (1): Net realized (losses) gains on investment sales (176) (11) 5,551 23,328 Change in unrealized gains (losses) 30,693 4,226 (61,859) 115,722 Investment funds 203 (456) 31,299 (398) Real estate 3,841 417 (3,983) 6,184 Loans receivable — — — (970) Other (6,982) 173 (30,755) 1,201 Net realized and unrealized (losses) gains on investments in earnings before allowance for expected credit losses (7,772) 1,465 (89,404) 143,691 Change in allowance for expected credit losses on investments (2): Fixed maturity securities 43,874 — 33,147 — Loans receivable 2,876 — (4,054) — Change in allowance for expected credit losses on investments 46,750 — 29,093 — Net investment gains (losses) 38,978 1,465 (60,311) 143,691 Income tax (expense) benefit (8,855) (308) 13,622 (30,175) After-tax net investment gains (losses) $ 30,123 $ 1,157 $ (46,689) $ 113,516 Change in unrealized investment gains (losses) on available for sale securities: Fixed maturity securities without allowance for expected credit losses $ 46,164 $ (12,178) $ 89,363 $ 308,945 Fixed maturity securities with allowance for expected credit losses 5,036 384 30,027 396 Investment funds (198) (2,689) (3,632) 4,863 Other (2,022) (14,109) (4,002) (26,465) Total change in unrealized investment gains (losses) 48,980 (28,592) 111,756 287,739 Income tax (expense) benefit (10,707) 3,847 (13,740) (68,060) Noncontrolling interests (3) 123 (2) 105 After-tax change in unrealized investment gains (losses) of available for sale securities $ 38,270 $ (24,622) $ 98,014 $ 219,784 ______________________ (1) The net realized gains or losses on investment sales represent the total gains or losses from the purchase dates of the equity securities. The change in unrealized gains (losses) consists of two components: (i) the reversal of the gain or loss recognized in previous periods on equity securities sold and (ii) the change in unrealized gain or loss resulting from mark-to-market adjustments on equity securities still held. (2) The inclusion of the allowance for expected credit losses on investments commenced January 1, 2020 due to the adoption of ASU 2016-13. See Note 3 for more details. |
Fixed Maturity Securities In _2
Fixed Maturity Securities In An Unrealized Loss Position (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities in an unrealized loss position | The following tables summarize all fixed maturity securities in an unrealized loss position at September 30, 2020 and December 31, 2019 by the length of time those securities have been continuously in an unrealized loss position: Less Than 12 Months 12 Months or Greater Total (In thousands) Fair Gross Fair Gross Fair Gross September 30, 2020 U.S. government and government agency $ 115,161 $ 141 $ 18 $ — $ 115,179 $ 141 State and municipal 204,907 2,809 24,290 878 229,197 3,687 Mortgage-backed securities 116,958 2,673 28,578 200 145,536 2,873 Asset-backed securities 1,443,178 15,094 665,759 37,999 2,108,937 53,093 Corporate 636,250 19,158 40,224 2,793 676,474 21,951 Foreign government 127,441 25,088 5,706 20,462 133,147 45,550 Fixed maturity securities $ 2,643,895 $ 64,963 $ 764,575 $ 62,332 $ 3,408,470 $ 127,295 December 31, 2019 U.S. government and government agency $ 83,837 $ 618 $ 53,089 $ 857 $ 136,926 $ 1,475 State and municipal 365,184 4,245 127,210 1,682 492,394 5,927 Mortgage-backed securities 301,358 2,281 180,148 3,220 481,506 5,501 Asset-backed securities 755,259 2,307 774,508 19,183 1,529,767 21,490 Corporate 307,367 3,148 121,470 5,172 428,837 8,320 Foreign government 164,536 32,028 107,266 61,645 271,802 93,673 Fixed maturity securities $ 1,977,541 $ 44,627 $ 1,363,691 $ 91,759 $ 3,341,232 $ 136,386 |
Non-Investment Grade Fixed Maturity Securities | A summary of the Company’s non-investment grade fixed maturity securities that were in an unrealized loss position at September 30, 2020 is presented in the table below: ($ in thousands) Number of Aggregate Gross Foreign government 22 $ 91,413 $ 45,247 Corporate 13 28,816 6,343 Mortgage-backed securities 8 1,659 34 Total 43 $ 121,888 $ 51,624 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Assets And Liabilities Measured At Fair value, On A Recurring Basis | The following tables present the assets and liabilities measured at fair value on a recurring basis as of September 30, 2020 and December 31, 2019 by level: (In thousands) Total Level 1 Level 2 Level 3 September 30, 2020 Assets: Fixed maturity securities available for sale: U.S. government and government agency $ 697,432 $ — $ 697,432 $ — State and municipal 3,625,395 — 3,625,395 — Mortgage-backed securities 1,082,379 — 1,082,379 — Asset-backed securities 3,306,439 — 3,306,439 — Corporate 4,239,540 — 4,239,540 — Foreign government 869,344 — 869,344 — Total fixed maturity securities available for sale 13,820,529 — 13,820,529 — Equity securities: Common stocks 160,858 152,508 — 8,350 Preferred stocks 274,445 — 265,117 9,328 Total equity securities 435,303 152,508 265,117 17,678 Arbitrage trading account 595,727 307,915 287,812 — Total $ 14,851,559 $ 460,423 $ 14,373,458 $ 17,678 Liabilities: Trading account securities sold but not yet purchased $ 19,254 $ 19,254 $ — $ — December 31, 2019 Assets: Fixed maturity securities available for sale: U.S. government and government agency $ 786,931 $ — $ 786,931 $ — State and municipal 3,895,632 — 3,895,632 — Mortgage-backed securities 1,625,594 — 1,625,594 — Asset-backed securities 2,790,630 — 2,790,630 — Corporate 4,156,415 — 4,156,415 — Foreign government 847,076 — 847,076 — Total fixed maturity securities available for sale 14,102,278 — 14,102,278 — Equity securities: Common stocks 166,805 157,752 — 9,053 Preferred stocks 313,815 — 307,310 6,505 Total equity securities 480,620 157,752 307,310 15,558 Arbitrage trading account 400,809 381,061 19,748 — Total $ 14,983,707 $ 538,813 $ 14,429,336 $ 15,558 Liabilities: Trading account securities sold but not yet purchased $ 36,143 $ 36,143 $ — $ — |
Summarize Changes In Level 3 Assets | The following tables summarize changes in Level 3 assets and liabilities for the nine months ended September 30, 2020 and for the year ended December 31, 2019: Gains (Losses) Included in: (In thousands) Beginning Earnings (Losses) Other Impairments Purchases (Sales) Paydowns / Maturities Transfers In / (Out) Ending Nine Months Ended September 30, 2020 Assets: Equity securities: Common stocks $ 9,053 $ 363 $ — $ — $ — $ (1,066) $ — $ — $ 8,350 Preferred stocks 6,505 (177) — — 3,000 — — — 9,328 Total $ 15,558 $ 186 $ — $ — $ 3,000 $ (1,066) $ — $ — $ 17,678 Year Ended Assets: Fixed maturities securities available for sale: Asset-backed securities $ 99 $ (26) $ 61 $ — $ — $ (134) $ — $ — $ — Total 99 (26) 61 — — (134) — — — Equity securities: Common stocks 8,596 2,005 — — (1,548) — — 9,053 Preferred stocks 3,945 (42) — — 2,602 — — — 6,505 Total 12,541 1,963 — — 2,602 (1,548) — — 15,558 Arbitrage trading account 17,308 (8,731) — — 14,767 (38,233) — 14,889 — Total $ 29,948 $ (6,794) $ 61 $ — $ 17,369 $ (39,915) $ — $ 14,889 $ 15,558 Liabilities: Trading account securities sold but not yet purchased $ 793 $ 133 $ — $ — $ 7,609 $ (8,535) $ — $ — $ — |
Reserves for Loss and Loss Ex_2
Reserves for Loss and Loss Expenses (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Insurance [Abstract] | |
Reserve Balances | The table below provides a reconciliation of the beginning and ending reserve balances: September 30, (In thousands) 2020 2019 Net reserves at beginning of period $ 10,697,998 $ 10,248,883 Cumulative effect adjustment resulting from changes in accounting principles 5,927 — Restated net reserves at beginning of period 10,703,925 10,248,883 Net provision for losses and loss expenses: Claims occurring during the current year (1) 3,328,827 3,007,364 Increase in estimates for claims occurring in prior years (2) (3) 849 22,340 Loss reserve discount accretion 27,335 29,246 Total 3,357,011 3,058,950 Net payments for claims: Current year 570,924 767,945 Prior years 2,077,945 1,907,979 Total 2,648,869 2,675,924 Foreign currency translation (21,003) (49,455) Net reserves at end of period 11,391,064 10,582,454 Ceded reserves at end of period 2,068,295 1,814,501 Gross reserves at end of period $ 13,459,359 $ 12,396,955 _______________________________________ (1) Claims occurring during the current year are net of loss reserve discounts of $8 million and $15 million for the nine months ended September 30, 2020 and 2019, respectively. (2) The change in estimates for claims occurring in prior years is net of loss reserve discount. On an undiscounted basis, the estimates for claims occurring in prior years decreased by $19 million and increased by $12 million for the nine months ended September 30, 2020 and 2019, respectively. (3) For certain retrospectively rated insurance policies and reinsurance agreements, reserve development is offset by additional or return premiums. Favorable development, net of additional and return premiums, was $12 million and $17 million for the nine months ended September 30, 2020 and 2019, respectively. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Carrying Amounts And Estimated Fair Values Of Financial Instruments | The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments: September 30, 2020 December 31, 2019 (In thousands) Carrying Value Fair Value Carrying Value Fair Value Assets: Fixed maturity securities $ 13,893,046 $ 13,907,561 $ 14,180,961 $ 14,194,955 Equity securities 435,303 435,303 480,620 480,620 Arbitrage trading account 595,727 595,727 400,809 400,809 Loans receivable 84,771 86,530 91,799 94,613 Cash and cash equivalents 2,571,447 2,571,447 1,023,710 1,023,710 Trading account receivables from brokers and clearing organizations 252,223 252,223 423,543 423,543 Liabilities: Due to broker 58,893 58,893 27,116 27,116 Trading account securities sold but not yet purchased 19,254 19,254 36,143 36,143 Subordinated debentures 1,443,736 1,530,810 1,198,704 1,274,088 Senior notes and other debt 1,629,077 1,898,483 1,427,575 1,582,290 |
Premiums and Reinsurance Rela_2
Premiums and Reinsurance Related Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Insurance [Abstract] | |
Reinsurance Financial Information | The following is a summary of insurance and reinsurance financial information: For the Three Months For the Nine Months (In thousands) 2020 2019 2020 2019 Written premiums: Direct $ 2,018,530 $ 1,853,881 $ 5,875,379 $ 5,566,728 Assumed 244,015 239,169 750,784 662,412 Ceded (383,229) (343,144) (1,161,183) (1,026,169) Total net premiums written $ 1,879,316 $ 1,749,906 $ 5,464,980 $ 5,202,971 Earned premiums: Direct $ 1,877,234 $ 1,797,726 $ 5,511,791 $ 5,294,773 Assumed 237,815 209,094 699,025 595,946 Ceded (366,128) (330,010) (1,093,563) (974,212) Total net premiums earned $ 1,748,921 $ 1,676,810 $ 5,117,253 $ 4,916,507 Ceded losses and loss expenses incurred $ 209,706 $ 172,009 $ 677,761 $ 584,323 Ceded commissions earned $ 89,104 $ 76,001 $ 255,742 $ 220,110 |
Premium receivable, allowance for credit loss | The following table presents the rollforward of the allowance for expected credit losses for premiums and fees receivable for the nine months ended September 30, 2020: (In thousands) Allowance for expected credit losses at January 1, 2020 $ 19,823 Cumulative effect adjustment resulting from changes in accounting principles 1,270 Provision for expected credit losses 1,940 Allowance for expected credit losses at September 30, 2020 $ 23,033 The following table presents the rollforward of the allowance for expected credit losses for premiums and fees receivable for the three months ended September 30, 2020: (In thousands) Allowance for expected credit losses at July 1, 2020 $ 22,106 Provision for expected credit losses 927 Allowance for expected credit losses at September 30, 2020 $ 23,033 |
Reinsurance Recoverable, Allowance for Credit Loss | The following table presents the rollforward of the allowance for expected credit losses associated with due from reinsurers for the nine months ended September 30, 2020: (In thousands) Allowance for expected credit losses at January 1, 2020 $ 690 Cumulative effect adjustment resulting from changes in accounting principles 5,927 Provision for expected credit losses 1,124 Allowance for expected credit losses at September 30, 2020 $ 7,741 The following table presents the rollforward of the allowance for expected credit losses associated with due from reinsurers for the three months ended September 30, 2020: (In thousands) Allowance for expected credit losses at July 1, 2020 $ 7,175 Provision for expected credit losses 566 Allowance for expected credit losses at September 30, 2020 $ 7,741 |
Restricted Stock Units (Tables)
Restricted Stock Units (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary Of Restricted Stock Units Issued | A summary of RSUs issued in the nine months ended September 30, 2020 and 2019 follows: ($ in thousands) Units Fair Value 2020 953,519 $ 59,683 2019 839,263 $ 59,435 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Lease, Cost | Further information relating to operating lease expense and other operating lease information are as follows: For the Three Months Ended For the Nine Months Ended September 30, (In thousands) 2020 2019 2020 2019 Leases: Lease cost $ 11,016 $ 10,734 $ 33,130 $ 32,969 Cash paid for amounts included in the measurement of lease liabilities reported in operating cash flows $ 11,560 $ 11,241 $ 33,869 $ 34,030 Right-of-use assets obtained in exchange for new lease liabilities $ 1,344 $ 23,211 $ 5,639 $ 31,095 |
Supplemental Balance Sheet Information | As of September 30, ($ in thousands) 2020 2019 Right-of-use assets $ 172,473 $ 194,553 Lease liabilities $ 211,808 $ 226,291 Weighted-average remaining lease term 6.7 years 7.2 years Weighted-average discount rate 5.93 % 5.97 % |
Maturities of Operating Lease Liabilities | Contractual maturities of the Company’s future minimum lease payments are as follows: (In thousands) September 30, 2020 Contractual Maturities: 2020 $ 12,162 2021 46,835 2022 41,637 2023 37,737 2024 31,439 Thereafter 78,806 Total undiscounted future minimum lease payments 248,616 Less: Discount impact (36,808) Total lease liability $ 211,808 |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Financial Information Of Company Operating Segments | Revenues (In thousands) Earned Investment Other Total (2) Pre-Tax Income (Loss) Net Income (Loss) to Common Stockholders Three months ended September 30, 2020 Insurance $ 1,531,093 $ 87,828 $ 9,463 $ 1,628,384 $ 178,971 $ 130,266 Reinsurance & Monoline Excess 217,828 40,306 — 258,134 61,532 49,070 Corporate, other and eliminations (3) — 14,516 99,807 114,323 (73,067) (57,781) Net investment gains — — 38,978 38,978 38,978 30,123 Total $ 1,748,921 $ 142,650 $ 148,248 $ 2,039,819 $ 206,414 $ 151,678 Three months ended September 30, 2019 Insurance $ 1,493,854 $ 99,628 $ 11,611 $ 1,605,093 $ 202,390 $ 162,994 Reinsurance & Monoline Excess 182,956 43,768 — 226,724 46,863 38,240 Corporate, other and eliminations (3) — 18,296 114,138 132,434 (47,736) (37,184) Net investment gains — — 1,465 1,465 1,465 1,158 Total $ 1,676,810 $ 161,692 $ 127,214 $ 1,965,716 $ 202,982 $ 165,208 Nine months ended September 30, 2020 Insurance $ 4,481,092 $ 255,392 $ 25,953 $ 4,762,437 $ 431,464 $ 315,733 Reinsurance & Monoline Excess 636,161 101,477 — 737,638 110,611 88,947 Corporate, other and eliminations (3) — 45,975 300,715 346,690 (176,369) (139,471) Net investment losses — — (60,311) (60,311) (60,311) (46,689) Total $ 5,117,253 $ 402,844 $ 266,357 $ 5,786,454 $ 305,395 $ 218,520 Nine months ended September 30, 2019 Insurance $ 4,396,071 $ 332,072 $ 38,542 $ 4,766,685 $ 612,777 $ 488,228 Reinsurance & Monoline Excess 520,436 127,791 — 648,227 144,353 115,630 Corporate, other and eliminations (3) — 48,416 319,103 367,519 (194,664) (154,736) Net investment gains — — 143,691 143,691 143,691 113,516 Total $ 4,916,507 $ 508,279 $ 501,336 $ 5,926,122 $ 706,157 $ 562,638 _________________ (1) Certain amounts included in earned premiums of each segment are related to inter-segment transactions. (2) Revenues for Insurance from foreign countries for the three months ended September 30, 2020 and 2019 were $183 million and $185 million, respectively, and for the nine months ended September 30, 2020 and 2019 were $500 million and $535 million, respectively. Revenues for Reinsurance & Monoline Excess from foreign countries for the three months ended September 30, 2020 and 2019 were $77 million and $65 million, respectively, and for the nine months ended September 30, 2020 and 2019 were $212 million and $186 million, respectively. |
Identifiable Assets By Segment | (In thousands) September 30, December 31, Insurance $ 21,060,144 $ 20,005,802 Reinsurance & Monoline Excess 4,697,249 4,710,819 Corporate, other and eliminations 2,454,977 1,913,409 Consolidated $ 28,212,370 $ 26,630,030 |
Net Premiums Earned By Major Line Of Business | Net premiums earned by major line of business are as follows: For the Three Months For the Nine Months (In thousands) 2020 2019 2020 2019 Insurance: Other liability $ 561,595 $ 527,253 $ 1,653,189 $ 1,523,534 Short-tail lines (1) 326,019 310,423 917,466 905,365 Workers' compensation 271,802 321,872 852,101 979,059 Commercial automobile 203,047 191,136 583,024 560,340 Professional liability 168,630 143,170 475,312 427,773 Total Insurance 1,531,093 1,493,854 4,481,092 4,396,071 Reinsurance & Monoline Excess: Casualty reinsurance 130,186 106,532 383,375 292,471 Monoline excess (2) 43,577 40,639 126,800 119,020 Property reinsurance 44,065 35,785 125,986 108,945 Total Reinsurance & Monoline Excess 217,828 182,956 636,161 520,436 Total $ 1,748,921 $ 1,676,810 $ 5,117,253 $ 4,916,507 ______________ (1) Short-tail lines include commercial multi-peril (non-liability), inland marine, accident and health, fidelity and surety, boiler and machinery and other lines. |
General (Details)
General (Details) | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Federal Income Tax Rate | 21.00% |
Per Share Data (Narrative) (Det
Per Share Data (Narrative) (Details) - shares | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||
Weighted average number of shares held in grantor trust | 7,575,168,000 | 7,389,781 |
Per Share Data (Weighted Averag
Per Share Data (Weighted Average Number of Common Shares Used In the Computation of Basic and Diluted Earnings per Share) (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Basic (shares) | 185,765 | 190,862 | 187,338 | 190,593 |
Diluted (shares) | 187,717 | 193,589 | 189,515 | 193,557 |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements and Accounting Policies (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative effect adjustment resulting from changes in accounting principles | $ 6,039,672 | $ 6,118,342 | |||||
Fixed maturity securities, allowance for credit loss | 2,567 | ||||||
Cumulative effect adjustment resulting from changes in accounting principles | Accounting Standards Update 2016-13 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Premium receivable and reinsurance recoverable, allowance for credit loss | $ 5,700 | ||||||
Fixed maturity securities, allowance for credit loss | 24,800 | ||||||
Retained earnings | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative effect adjustment resulting from changes in accounting principles | 8,057,556 | $ 7,927,280 | 7,932,372 | $ 7,971,019 | $ 7,826,015 | $ 7,558,619 | |
Retained earnings | Cumulative effect adjustment resulting from changes in accounting principles | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative effect adjustment resulting from changes in accounting principles | 0 | (30,514) | 0 | 0 | |||
Retained earnings | Cumulative effect adjustment resulting from changes in accounting principles | Accounting Standards Update 2016-13 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative effect adjustment resulting from changes in accounting principles | (5,700) | ||||||
Accumulated Other Comprehensive Income (Loss) | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative effect adjustment resulting from changes in accounting principles | $ 247,480 | 209,210 | 124,514 | $ 128,293 | 152,915 | (91,491) | |
Accumulated Other Comprehensive Income (Loss) | Cumulative effect adjustment resulting from changes in accounting principles | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative effect adjustment resulting from changes in accounting principles | $ 0 | $ 24,952 | $ 0 | $ 0 | |||
Investments | Cumulative effect adjustment resulting from changes in accounting principles | Accounting Standards Update 2016-13 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative effect adjustment resulting from changes in accounting principles | 200 | ||||||
Investments | Retained earnings | Cumulative effect adjustment resulting from changes in accounting principles | Accounting Standards Update 2016-13 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative effect adjustment resulting from changes in accounting principles | (24,800) | ||||||
Investments | Accumulated Other Comprehensive Income (Loss) | Cumulative effect adjustment resulting from changes in accounting principles | Accounting Standards Update 2016-13 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative effect adjustment resulting from changes in accounting principles | $ 25,000 |
Statements of Cash Flows (Detai
Statements of Cash Flows (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Supplemental Cash Flow Elements [Abstract] | ||
Interest payments | $ 126,932,000 | $ 145,930,000 |
Income taxes paid | $ 96,000,000 | $ 127,282,000 |
Investments in Fixed Maturity_3
Investments in Fixed Maturity Securities (Investments in fixed maturity securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | |||
Total held to maturity, Amortized Cost | $ 73,388 | $ 78,683 | |
Held-to-maturity, Allowance for Credit Loss | (871) | $ 948 | 0 |
Held to maturity, Gross Unrealized Gains | 14,515 | 13,994 | |
Held to maturity, Gross Unrealized Losses | 0 | 0 | |
Total held to maturity, Fair Value | 87,032 | 92,677 | |
Total held to maturity, Carrying Value | 72,517 | 78,683 | |
Total available for sale, Amortized Cost | 13,462,876 | 13,897,964 | |
Available-for-sale, Allowance for Credit Loss | (1,696) | (45,493) | 0 |
Total available for sale, Gross Unrealized Gains | 486,644 | 340,700 | |
Total available for sale, Gross Unrealized Losses | (127,295) | (136,386) | |
Total available for sale, Fair Value | 13,820,529 | 14,102,278 | |
Total available for sale, Carrying Value | 13,820,529 | 14,102,278 | |
Total investments in fixed maturity securities, Amortized Value | 13,536,264 | 13,976,647 | |
Fixed maturity securities, allowance for credit loss | (2,567) | ||
Total investments in fixed maturity securities, Gross Unrealized Gains | 501,159 | 354,694 | |
Total investments in fixed maturity securities, Gross Unrealized Losses | (127,295) | (136,386) | |
Total investments in fixed maturity securities, Fair Value | 13,907,561 | 14,194,955 | |
Total investments in fixed maturity securities, Carrying Value | 13,893,046 | 14,180,961 | |
State and municipal | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total held to maturity, Amortized Cost | 66,532 | 70,312 | |
Held-to-maturity, Allowance for Credit Loss | (871) | ||
Held to maturity, Gross Unrealized Gains | 13,406 | 13,000 | |
Held to maturity, Gross Unrealized Losses | 0 | 0 | |
Total held to maturity, Fair Value | 79,067 | 83,312 | |
Total held to maturity, Carrying Value | 65,661 | 70,312 | |
Total available for sale, Amortized Cost | 3,430,081 | 3,754,641 | |
Available-for-sale, Allowance for Credit Loss | 0 | ||
Total available for sale, Gross Unrealized Gains | 199,001 | 146,918 | |
Total available for sale, Gross Unrealized Losses | (3,687) | (5,927) | |
Total available for sale, Fair Value | 3,625,395 | 3,895,632 | |
Total available for sale, Carrying Value | 3,625,395 | 3,895,632 | |
Residential mortgage-backed | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total held to maturity, Amortized Cost | 6,856 | 8,371 | |
Held-to-maturity, Allowance for Credit Loss | 0 | ||
Held to maturity, Gross Unrealized Gains | 1,109 | 994 | |
Held to maturity, Gross Unrealized Losses | 0 | 0 | |
Total held to maturity, Fair Value | 7,965 | 9,365 | |
Total held to maturity, Carrying Value | 6,856 | 8,371 | |
Total available for sale, Amortized Cost | 848,878 | 1,298,145 | |
Available-for-sale, Allowance for Credit Loss | 0 | ||
Total available for sale, Gross Unrealized Gains | 29,989 | 23,230 | |
Total available for sale, Gross Unrealized Losses | (2,513) | (5,155) | |
Total available for sale, Fair Value | 876,354 | 1,316,220 | |
Total available for sale, Carrying Value | 876,354 | 1,316,220 | |
U.S. government and government agency | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total available for sale, Amortized Cost | 676,493 | 775,157 | |
Available-for-sale, Allowance for Credit Loss | 0 | ||
Total available for sale, Gross Unrealized Gains | 21,080 | 13,249 | |
Total available for sale, Gross Unrealized Losses | (141) | (1,475) | |
Total available for sale, Fair Value | 697,432 | 786,931 | |
Total available for sale, Carrying Value | 697,432 | 786,931 | |
Special revenue | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total available for sale, Amortized Cost | 2,195,851 | 2,343,209 | |
Available-for-sale, Allowance for Credit Loss | 0 | ||
Total available for sale, Gross Unrealized Gains | 93,278 | 64,586 | |
Total available for sale, Gross Unrealized Losses | (2,455) | (4,152) | |
Total available for sale, Fair Value | 2,286,674 | 2,403,643 | |
Total available for sale, Carrying Value | 2,286,674 | 2,403,643 | |
State general obligation | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total available for sale, Amortized Cost | 356,321 | 359,298 | |
Available-for-sale, Allowance for Credit Loss | 0 | ||
Total available for sale, Gross Unrealized Gains | 31,586 | 22,074 | |
Total available for sale, Gross Unrealized Losses | 0 | (97) | |
Total available for sale, Fair Value | 387,907 | 381,275 | |
Total available for sale, Carrying Value | 387,907 | 381,275 | |
Pre-refunded | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total available for sale, Amortized Cost | 257,570 | 364,571 | |
Available-for-sale, Allowance for Credit Loss | 0 | ||
Total available for sale, Gross Unrealized Gains | 22,521 | 20,342 | |
Total available for sale, Gross Unrealized Losses | (149) | (128) | |
Total available for sale, Fair Value | 279,942 | 384,785 | |
Total available for sale, Carrying Value | 279,942 | 384,785 | |
Corporate backed | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total available for sale, Amortized Cost | 223,508 | 255,230 | |
Available-for-sale, Allowance for Credit Loss | 0 | ||
Total available for sale, Gross Unrealized Gains | 9,641 | 7,232 | |
Total available for sale, Gross Unrealized Losses | (549) | (903) | |
Total available for sale, Fair Value | 232,600 | 261,559 | |
Total available for sale, Carrying Value | 232,600 | 261,559 | |
Local general obligation | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total available for sale, Amortized Cost | 396,831 | 432,333 | |
Available-for-sale, Allowance for Credit Loss | 0 | ||
Total available for sale, Gross Unrealized Gains | 41,975 | 32,684 | |
Total available for sale, Gross Unrealized Losses | (534) | (647) | |
Total available for sale, Fair Value | 438,272 | 464,370 | |
Total available for sale, Carrying Value | 438,272 | 464,370 | |
Commercial | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total available for sale, Amortized Cost | 199,217 | 304,506 | |
Available-for-sale, Allowance for Credit Loss | 0 | ||
Total available for sale, Gross Unrealized Gains | 7,168 | 5,214 | |
Total available for sale, Gross Unrealized Losses | (360) | (346) | |
Total available for sale, Fair Value | 206,025 | 309,374 | |
Total available for sale, Carrying Value | 206,025 | 309,374 | |
Mortgage-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total available for sale, Amortized Cost | 1,048,095 | 1,602,651 | |
Available-for-sale, Allowance for Credit Loss | 0 | ||
Total available for sale, Gross Unrealized Gains | 37,157 | 28,444 | |
Total available for sale, Gross Unrealized Losses | (2,873) | (5,501) | |
Total available for sale, Fair Value | 1,082,379 | 1,625,594 | |
Total available for sale, Carrying Value | 1,082,379 | 1,625,594 | |
Asset-backed | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total available for sale, Amortized Cost | 3,347,867 | 2,802,588 | |
Available-for-sale, Allowance for Credit Loss | 0 | ||
Total available for sale, Gross Unrealized Gains | 11,665 | 9,532 | |
Total available for sale, Gross Unrealized Losses | (53,093) | (21,490) | |
Total available for sale, Fair Value | 3,306,439 | 2,790,630 | |
Total available for sale, Carrying Value | 3,306,439 | 2,790,630 | |
Industrial | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total available for sale, Amortized Cost | 2,240,914 | 2,260,073 | |
Available-for-sale, Allowance for Credit Loss | (606) | ||
Total available for sale, Gross Unrealized Gains | 104,694 | 72,900 | |
Total available for sale, Gross Unrealized Losses | (18,404) | (3,800) | |
Total available for sale, Fair Value | 2,326,598 | 2,329,173 | |
Total available for sale, Carrying Value | 2,326,598 | 2,329,173 | |
Financial | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total available for sale, Amortized Cost | 1,471,997 | 1,447,589 | |
Available-for-sale, Allowance for Credit Loss | 0 | ||
Total available for sale, Gross Unrealized Gains | 55,706 | 37,681 | |
Total available for sale, Gross Unrealized Losses | (3,067) | (4,118) | |
Total available for sale, Fair Value | 1,524,636 | 1,481,152 | |
Total available for sale, Carrying Value | 1,524,636 | 1,481,152 | |
Utilities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total available for sale, Amortized Cost | 325,809 | 325,762 | |
Available-for-sale, Allowance for Credit Loss | 0 | ||
Total available for sale, Gross Unrealized Gains | 30,270 | 15,281 | |
Total available for sale, Gross Unrealized Losses | (460) | (402) | |
Total available for sale, Fair Value | 355,619 | 340,641 | |
Total available for sale, Carrying Value | 355,619 | 340,641 | |
Other | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total available for sale, Amortized Cost | 32,262 | 5,219 | |
Available-for-sale, Allowance for Credit Loss | 0 | ||
Total available for sale, Gross Unrealized Gains | 445 | 230 | |
Total available for sale, Gross Unrealized Losses | (20) | 0 | |
Total available for sale, Fair Value | 32,687 | 5,449 | |
Total available for sale, Carrying Value | 32,687 | 5,449 | |
Corporate | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total available for sale, Amortized Cost | 4,070,982 | 4,038,643 | |
Available-for-sale, Allowance for Credit Loss | (606) | (724) | 0 |
Total available for sale, Gross Unrealized Gains | 191,115 | 126,092 | |
Total available for sale, Gross Unrealized Losses | (21,951) | (8,320) | |
Total available for sale, Fair Value | 4,239,540 | 4,156,415 | |
Total available for sale, Carrying Value | 4,239,540 | 4,156,415 | |
Foreign government | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total available for sale, Amortized Cost | 889,358 | 924,284 | |
Available-for-sale, Allowance for Credit Loss | (1,090) | $ (44,769) | 0 |
Total available for sale, Gross Unrealized Gains | 26,626 | 16,465 | |
Total available for sale, Gross Unrealized Losses | (45,550) | (93,673) | |
Total available for sale, Fair Value | 869,344 | 847,076 | |
Total available for sale, Carrying Value | $ 869,344 | $ 847,076 |
Investments in Fixed Maturity_4
Investments in Fixed Maturity Securities (HTM Allowance for Credit Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | ||
Allowance for expected credit losses at January 1, 2020 | $ (948) | $ 0 |
Cumulative effect adjustment resulting from changes in accounting principles | 871 | 871 |
Provision for expected credit losses | (77) | 802 |
Allowance for expected credit losses at September 30, 2020 | $ 871 | 871 |
Cumulative effect adjustment resulting from changes in accounting principles | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | ||
Allowance for expected credit losses at January 1, 2020 | 69 | |
Cumulative effect adjustment resulting from changes in accounting principles | $ 69 |
Investments in Fixed Maturity_5
Investments in Fixed Maturity Securities (AFS Allowance for Credit Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Allowance for expected credit losses at January 1, 2020 | $ 45,493 | $ 0 |
Cumulative effect adjustment resulting from changes in accounting principles | 1,696 | 1,696 |
Expected credit losses on securities for which credit losses were not previously recorded | 261 | 19,552 |
Expected credit losses on securities for which credit losses were previously recorded | (261) | (3,472) |
Reduction due to disposals | (43,797) | (50,029) |
Allowance for expected credit losses at September 30, 2020 | 1,696 | 1,696 |
Cumulative effect adjustment resulting from changes in accounting principles | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Allowance for expected credit losses at January 1, 2020 | 35,645 | |
Cumulative effect adjustment resulting from changes in accounting principles | 35,645 | |
Foreign government | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Allowance for expected credit losses at January 1, 2020 | 44,769 | 0 |
Cumulative effect adjustment resulting from changes in accounting principles | 1,090 | 1,090 |
Expected credit losses on securities for which credit losses were not previously recorded | 0 | 12,494 |
Expected credit losses on securities for which credit losses were previously recorded | (252) | 295 |
Reduction due to disposals | (43,427) | (47,344) |
Allowance for expected credit losses at September 30, 2020 | 1,090 | 1,090 |
Foreign government | Cumulative effect adjustment resulting from changes in accounting principles | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Allowance for expected credit losses at January 1, 2020 | 35,645 | |
Cumulative effect adjustment resulting from changes in accounting principles | 35,645 | |
Corporate | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Allowance for expected credit losses at January 1, 2020 | 724 | 0 |
Cumulative effect adjustment resulting from changes in accounting principles | 724 | 0 |
Expected credit losses on securities for which credit losses were not previously recorded | 261 | 7,058 |
Expected credit losses on securities for which credit losses were previously recorded | (9) | (3,767) |
Reduction due to disposals | (370) | (2,685) |
Allowance for expected credit losses at September 30, 2020 | $ 606 | 606 |
Corporate | Cumulative effect adjustment resulting from changes in accounting principles | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Allowance for expected credit losses at January 1, 2020 | 0 | |
Cumulative effect adjustment resulting from changes in accounting principles | $ 0 |
Investments in Fixed Maturity_6
Investments in Fixed Maturity Securities (Amortized cost and fair value of fixed maturity securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Investments, Debt and Equity Securities [Abstract] | |||
Amortized Cost, Due in one year or less | $ 1,372,865 | ||
Amortized Cost, Due after one year through five years | 5,200,384 | ||
Amortized Cost, Due after five years through ten years | 3,313,415 | ||
Amortized Cost, Due after ten years | 2,593,778 | ||
Amortized Cost, Mortgaged-backed securities | 1,054,951 | ||
Total investments in fixed maturity securities, Amortized Value | 13,535,393 | ||
Fair Value, Due in one year or less | 1,364,023 | ||
Fair Value, Due after one year through five years | 5,376,126 | ||
Fair Value, Due after five years through ten years | 3,461,879 | ||
Fair Value, Due after ten years | 2,615,189 | ||
Fair Value, Mortgage-backed securities | 1,090,344 | ||
Total investments in fixed maturity securities, Fair Value | 13,907,561 | $ 14,194,955 | |
Cumulative effect adjustment resulting from changes in accounting principles | $ 871 | $ (948) | $ 0 |
Investments in Equity Securit_3
Investments in Equity Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities | $ 435,303 | $ 480,620 |
Fair Value | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 361,640 | 345,099 |
Gross Unrealized, Gains | 108,046 | 165,210 |
Gross Unrealized, Losses | (34,383) | (29,689) |
Equity securities | 435,303 | 480,620 |
Fair Value | Common stock | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 184,196 | 175,928 |
Gross Unrealized, Gains | 8,042 | 16,967 |
Gross Unrealized, Losses | (31,380) | (26,090) |
Equity securities | 160,858 | 166,805 |
Fair Value | Preferred stocks | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 177,444 | 169,171 |
Gross Unrealized, Gains | 100,004 | 148,243 |
Gross Unrealized, Losses | (3,003) | (3,599) |
Equity securities | 274,445 | 313,815 |
Carrying Value | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities | 435,303 | 480,620 |
Carrying Value | Common stock | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities | 160,858 | 166,805 |
Carrying Value | Preferred stocks | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities | $ 274,445 | $ 313,815 |
Arbitrage Trading Account (Deta
Arbitrage Trading Account (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Arbitrage trading account | $ 595,727,000 | $ 400,809,000 |
Long | Options held | ||
Derivative [Line Items] | ||
Fair value of derivative | 73,000 | |
Notional amount of derivative | 6,400,000 | |
Short | Options held | ||
Derivative [Line Items] | ||
Fair value of derivative | 77,000 | |
Notional amount of derivative | $ 11,400,000 |
Investment Funds (Details)
Investment Funds (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Unfunded commitments | $ 136,000 | ||
Investment funds | 1,163,707 | $ 1,213,535 | |
Income (Loss) from Investment Funds | 1,260 | $ 77,284 | |
Real estate | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment funds | 312,181 | 412,275 | |
Income (Loss) from Investment Funds | 2,140 | 17,279 | |
Financial services | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment funds | 351,695 | 280,705 | |
Income (Loss) from Investment Funds | 3,303 | 36,516 | |
Energy | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment funds | 136,250 | 156,869 | |
Income (Loss) from Investment Funds | (13,689) | (10,342) | |
Transportation | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment funds | 144,265 | 147,034 | |
Income (Loss) from Investment Funds | (3,521) | 12,222 | |
Other funds | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment funds | 219,316 | $ 216,652 | |
Income (Loss) from Investment Funds | $ 13,027 | $ 21,609 |
Real Estate (Details)
Real Estate (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Real Estate [Abstract] | ||
Properties in operation | $ 1,651,343 | $ 1,351,249 |
Properties under development | 455,131 | 754,701 |
Total | $ 2,106,474 | $ 2,105,950 |
Real Estate (Narrative) (Detail
Real Estate (Narrative) (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Accumulated depreciation and amortization on properties | $ 78,113,000 | $ 59,832,000 | |
Real estate depreciation expense | 19,818,000 | $ 8,871,000 | |
Lease future minimum payments 2020 | 19,629,625 | ||
Lease future minimum payments 2021 | 82,022,840 | ||
Lease future minimum payments 2022 | 83,544,465 | ||
Lease future minimum payments 2023 | 77,429,542 | ||
Lease future minimum payments 2024 | 74,828,766 | ||
Lease future minimum payments 2025 | 71,126,366 | ||
Lease future minimum payments there after | 672,867,459 | ||
Secured Debt | |||
Debt Instrument [Line Items] | |||
Fae value of debt | $ 101,750,000 | ||
Interest rate, percent | 4.21% |
Loans Receivable (Details)
Loans Receivable (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, gross | $ 84,771 | $ 91,799 |
Loans receivable | 86,530 | 94,613 |
Loans in nonaccrual status | 200 | 200 |
Real estate loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, gross | 52,089 | 58,541 |
Loans receivable | 53,848 | 59,853 |
Commercial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, gross | 32,682 | 33,258 |
Loans receivable | $ 32,682 | $ 34,760 |
Loans receivable maturity term | 10 years |
Loans Receivable - Allowance Fo
Loans Receivable - Allowance For Credit Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Allowance for expected credit losses at January 1, 2020 | $ 8,719 | $ 2,146 |
Cumulative effect adjustment resulting from changes in accounting principles | 8,719 | 2,146 |
Provision for expected credit losses | (2,876) | 4,054 |
Allowance for expected credit losses at September 30, 2020 | 5,843 | 5,843 |
Real estate loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Allowance for expected credit losses at January 1, 2020 | 4,318 | 1,502 |
Cumulative effect adjustment resulting from changes in accounting principles | 1,759 | 1,759 |
Provision for expected credit losses | (2,559) | 1,162 |
Allowance for expected credit losses at September 30, 2020 | 1,759 | 1,759 |
Commercial loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Allowance for expected credit losses at January 1, 2020 | 4,401 | 644 |
Cumulative effect adjustment resulting from changes in accounting principles | 4,084 | 4,084 |
Provision for expected credit losses | (317) | 2,892 |
Allowance for expected credit losses at September 30, 2020 | $ 4,084 | 4,084 |
Cumulative effect adjustment resulting from changes in accounting principles | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Allowance for expected credit losses at January 1, 2020 | (357) | |
Cumulative effect adjustment resulting from changes in accounting principles | (357) | |
Cumulative effect adjustment resulting from changes in accounting principles | Real estate loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Allowance for expected credit losses at January 1, 2020 | (905) | |
Cumulative effect adjustment resulting from changes in accounting principles | (905) | |
Cumulative effect adjustment resulting from changes in accounting principles | Commercial loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Allowance for expected credit losses at January 1, 2020 | 548 | |
Cumulative effect adjustment resulting from changes in accounting principles | $ 548 |
Net Investment Gains (Losses)_2
Net Investment Gains (Losses) (Net Investment Gains (Losses)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Fixed maturity securities, gains | $ 3,811 | $ 2,100 | $ 23,586 | $ 10,503 |
Fixed maturity securities, losses | (39,162) | (4,984) | (53,243) | (11,879) |
Net realized (losses) gains on investment sales | (176) | (11) | 5,551 | 23,328 |
Change in unrealized gains (losses) | 30,693 | 4,226 | (61,859) | 115,722 |
Investment funds | 203 | (456) | 31,299 | (398) |
Real estate | 3,841 | 417 | (3,983) | 6,184 |
Loans receivable | 0 | 0 | 0 | (970) |
Other | (6,982) | 173 | (30,755) | 1,201 |
Net realized and unrealized (losses) gains on investments in earnings before allowance for expected credit losses | (7,772) | 1,465 | (89,404) | 143,691 |
Fixed maturity securities | 43,874 | 0 | 33,147 | 0 |
Loans receivable | 2,876 | 0 | (4,054) | 0 |
Change in allowance for expected credit losses on investments | 46,750 | 0 | 29,093 | 0 |
Net investment gains (losses) | 38,978 | 1,465 | (60,311) | 143,691 |
Income tax (expense) benefit | (8,855) | (308) | 13,622 | (30,175) |
After-tax net investment gains (losses) | $ 30,123 | $ 1,157 | $ (46,689) | $ 113,516 |
Net Investment Gains (Losses)_3
Net Investment Gains (Losses) (Change in Unrealized Gains (Losses) of Available For Sales Securities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Realized and Unrealized Investment Gains Losses [Line Items] | ||||
Total change in unrealized investment gains (losses) | $ 48,980 | $ (28,592) | $ 111,756 | $ 287,739 |
Income tax (expense) benefit | (10,707) | 3,847 | (13,740) | (68,060) |
Noncontrolling interests | (3) | 123 | (2) | 105 |
Total change in unrealized gains | 38,270 | (24,622) | 98,014 | 219,784 |
Debt securities | ||||
Realized and Unrealized Investment Gains Losses [Line Items] | ||||
Total change in unrealized investment gains (losses) | 46,164 | (12,178) | 89,363 | 308,945 |
Fixed maturity securities with allowance for expected credit losses | ||||
Realized and Unrealized Investment Gains Losses [Line Items] | ||||
Total change in unrealized investment gains (losses) | 5,036 | 384 | 30,027 | 396 |
Investment funds | ||||
Realized and Unrealized Investment Gains Losses [Line Items] | ||||
Total change in unrealized investment gains (losses) | (198) | (2,689) | (3,632) | 4,863 |
Other | ||||
Realized and Unrealized Investment Gains Losses [Line Items] | ||||
Total change in unrealized investment gains (losses) | $ (2,022) | $ (14,109) | $ (4,002) | $ (26,465) |
Fixed Maturity Securities In _3
Fixed Maturity Securities In An Unrealized Loss Position (Securities in an Unrealized Loss Position) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | $ 2,643,895 | $ 1,977,541 |
Gross Unrealized Losses, Less than 12 Months | 64,963 | 44,627 |
Fair Value, 12 Months or Greater | 764,575 | 1,363,691 |
Gross Unrealized Losses, 12 Months or Greater | 62,332 | 91,759 |
Fair Value, Total | 3,408,470 | 3,341,232 |
Gross Unrealized Losses, Total | 127,295 | 136,386 |
U.S. government and government agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | 115,161 | 83,837 |
Gross Unrealized Losses, Less than 12 Months | 141 | 618 |
Fair Value, 12 Months or Greater | 18 | 53,089 |
Gross Unrealized Losses, 12 Months or Greater | 0 | 857 |
Fair Value, Total | 115,179 | 136,926 |
Gross Unrealized Losses, Total | 141 | 1,475 |
State and municipal | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | 204,907 | 365,184 |
Gross Unrealized Losses, Less than 12 Months | 2,809 | 4,245 |
Fair Value, 12 Months or Greater | 24,290 | 127,210 |
Gross Unrealized Losses, 12 Months or Greater | 878 | 1,682 |
Fair Value, Total | 229,197 | 492,394 |
Gross Unrealized Losses, Total | 3,687 | 5,927 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | 116,958 | 301,358 |
Gross Unrealized Losses, Less than 12 Months | 2,673 | 2,281 |
Fair Value, 12 Months or Greater | 28,578 | 180,148 |
Gross Unrealized Losses, 12 Months or Greater | 200 | 3,220 |
Fair Value, Total | 145,536 | 481,506 |
Gross Unrealized Losses, Total | 2,873 | 5,501 |
Asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | 1,443,178 | 755,259 |
Gross Unrealized Losses, Less than 12 Months | 15,094 | 2,307 |
Fair Value, 12 Months or Greater | 665,759 | 774,508 |
Gross Unrealized Losses, 12 Months or Greater | 37,999 | 19,183 |
Fair Value, Total | 2,108,937 | 1,529,767 |
Gross Unrealized Losses, Total | 53,093 | 21,490 |
Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | 636,250 | 307,367 |
Gross Unrealized Losses, Less than 12 Months | 19,158 | 3,148 |
Fair Value, 12 Months or Greater | 40,224 | 121,470 |
Gross Unrealized Losses, 12 Months or Greater | 2,793 | 5,172 |
Fair Value, Total | 676,474 | 428,837 |
Gross Unrealized Losses, Total | 21,951 | 8,320 |
Foreign government | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | 127,441 | 164,536 |
Gross Unrealized Losses, Less than 12 Months | 25,088 | 32,028 |
Fair Value, 12 Months or Greater | 5,706 | 107,266 |
Gross Unrealized Losses, 12 Months or Greater | 20,462 | 61,645 |
Fair Value, Total | 133,147 | 271,802 |
Gross Unrealized Losses, Total | $ 45,550 | $ 93,673 |
Fixed Maturity Securities In _4
Fixed Maturity Securities In An Unrealized Loss Position (Non-Investment Grade Fixed Maturity Securities) (Details) $ in Thousands | Sep. 30, 2020USD ($)position | Dec. 31, 2019USD ($) |
Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Aggregate Fair Value | $ 676,474 | $ 428,837 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Aggregate Fair Value | 145,536 | 481,506 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Aggregate Fair Value | $ 2,108,937 | $ 1,529,767 |
Noninvestment Grade Investments at Loss Position | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of Securities | position | 43 | |
Aggregate Fair Value | $ 121,888 | |
Gross Unrealized Loss | $ 51,624 | |
Noninvestment Grade Investments at Loss Position | Foreign government | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of Securities | position | 22 | |
Aggregate Fair Value | $ 91,413 | |
Gross Unrealized Loss | $ 45,247 | |
Noninvestment Grade Investments at Loss Position | Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of Securities | position | 13 | |
Aggregate Fair Value | $ 28,816 | |
Gross Unrealized Loss | $ 6,343 | |
Noninvestment Grade Investments at Loss Position | Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of Securities | position | 8 | |
Aggregate Fair Value | $ 1,659 | |
Gross Unrealized Loss | $ 34 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured At Fair Value, On a Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets: | ||
Total fixed maturity securities available for sale | $ 13,820,529 | $ 14,102,278 |
Equity securities | 435,303 | 480,620 |
Arbitrage trading account | 595,727 | 400,809 |
Fair Value, Measurements, Recurring | ||
Assets: | ||
Total fixed maturity securities available for sale | 13,820,529 | 14,102,278 |
Equity securities | 435,303 | 480,620 |
Arbitrage trading account | 595,727 | 400,809 |
Assets, fair value disclosure | 14,851,559 | 14,983,707 |
Liabilities: | ||
Trading account securities sold but not yet purchased | 19,254 | 36,143 |
Fair Value, Measurements, Recurring | U.S. government and government agency | ||
Assets: | ||
Total fixed maturity securities available for sale | 697,432 | 786,931 |
Fair Value, Measurements, Recurring | State and municipal | ||
Assets: | ||
Total fixed maturity securities available for sale | 3,625,395 | 3,895,632 |
Fair Value, Measurements, Recurring | Mortgage-backed securities | ||
Assets: | ||
Total fixed maturity securities available for sale | 1,082,379 | 1,625,594 |
Fair Value, Measurements, Recurring | Asset-backed | ||
Assets: | ||
Total fixed maturity securities available for sale | 3,306,439 | 2,790,630 |
Fair Value, Measurements, Recurring | Corporate | ||
Assets: | ||
Total fixed maturity securities available for sale | 4,239,540 | 4,156,415 |
Fair Value, Measurements, Recurring | Foreign government | ||
Assets: | ||
Total fixed maturity securities available for sale | 869,344 | 847,076 |
Fair Value, Measurements, Recurring | Common stocks | ||
Assets: | ||
Equity securities | 160,858 | 166,805 |
Fair Value, Measurements, Recurring | Preferred stocks | ||
Assets: | ||
Equity securities | 274,445 | 313,815 |
Level 1 | Fair Value, Measurements, Recurring | ||
Assets: | ||
Total fixed maturity securities available for sale | 0 | 0 |
Equity securities | 152,508 | 157,752 |
Arbitrage trading account | 307,915 | 381,061 |
Assets, fair value disclosure | 460,423 | 538,813 |
Liabilities: | ||
Trading account securities sold but not yet purchased | 19,254 | 36,143 |
Level 1 | Fair Value, Measurements, Recurring | U.S. government and government agency | ||
Assets: | ||
Total fixed maturity securities available for sale | 0 | 0 |
Level 1 | Fair Value, Measurements, Recurring | State and municipal | ||
Assets: | ||
Total fixed maturity securities available for sale | 0 | 0 |
Level 1 | Fair Value, Measurements, Recurring | Mortgage-backed securities | ||
Assets: | ||
Total fixed maturity securities available for sale | 0 | 0 |
Level 1 | Fair Value, Measurements, Recurring | Asset-backed | ||
Assets: | ||
Total fixed maturity securities available for sale | 0 | 0 |
Level 1 | Fair Value, Measurements, Recurring | Corporate | ||
Assets: | ||
Total fixed maturity securities available for sale | 0 | 0 |
Level 1 | Fair Value, Measurements, Recurring | Foreign government | ||
Assets: | ||
Total fixed maturity securities available for sale | 0 | 0 |
Level 1 | Fair Value, Measurements, Recurring | Common stocks | ||
Assets: | ||
Equity securities | 152,508 | 157,752 |
Level 1 | Fair Value, Measurements, Recurring | Preferred stocks | ||
Assets: | ||
Equity securities | 0 | 0 |
Level 2 | Fair Value, Measurements, Recurring | ||
Assets: | ||
Total fixed maturity securities available for sale | 13,820,529 | 14,102,278 |
Equity securities | 265,117 | 307,310 |
Arbitrage trading account | 287,812 | 19,748 |
Assets, fair value disclosure | 14,373,458 | 14,429,336 |
Liabilities: | ||
Trading account securities sold but not yet purchased | 0 | 0 |
Level 2 | Fair Value, Measurements, Recurring | U.S. government and government agency | ||
Assets: | ||
Total fixed maturity securities available for sale | 697,432 | 786,931 |
Level 2 | Fair Value, Measurements, Recurring | State and municipal | ||
Assets: | ||
Total fixed maturity securities available for sale | 3,625,395 | 3,895,632 |
Level 2 | Fair Value, Measurements, Recurring | Mortgage-backed securities | ||
Assets: | ||
Total fixed maturity securities available for sale | 1,082,379 | 1,625,594 |
Level 2 | Fair Value, Measurements, Recurring | Asset-backed | ||
Assets: | ||
Total fixed maturity securities available for sale | 3,306,439 | 2,790,630 |
Level 2 | Fair Value, Measurements, Recurring | Corporate | ||
Assets: | ||
Total fixed maturity securities available for sale | 4,239,540 | 4,156,415 |
Level 2 | Fair Value, Measurements, Recurring | Foreign government | ||
Assets: | ||
Total fixed maturity securities available for sale | 869,344 | 847,076 |
Level 2 | Fair Value, Measurements, Recurring | Common stocks | ||
Assets: | ||
Equity securities | 0 | 0 |
Level 2 | Fair Value, Measurements, Recurring | Preferred stocks | ||
Assets: | ||
Equity securities | 265,117 | 307,310 |
Level 3 | Fair Value, Measurements, Recurring | ||
Assets: | ||
Total fixed maturity securities available for sale | 0 | 0 |
Equity securities | 17,678 | 15,558 |
Arbitrage trading account | 0 | 0 |
Assets, fair value disclosure | 17,678 | 15,558 |
Liabilities: | ||
Trading account securities sold but not yet purchased | 0 | 0 |
Level 3 | Fair Value, Measurements, Recurring | U.S. government and government agency | ||
Assets: | ||
Total fixed maturity securities available for sale | 0 | 0 |
Level 3 | Fair Value, Measurements, Recurring | State and municipal | ||
Assets: | ||
Total fixed maturity securities available for sale | 0 | 0 |
Level 3 | Fair Value, Measurements, Recurring | Mortgage-backed securities | ||
Assets: | ||
Total fixed maturity securities available for sale | 0 | 0 |
Level 3 | Fair Value, Measurements, Recurring | Asset-backed | ||
Assets: | ||
Total fixed maturity securities available for sale | 0 | 0 |
Level 3 | Fair Value, Measurements, Recurring | Corporate | ||
Assets: | ||
Total fixed maturity securities available for sale | 0 | 0 |
Level 3 | Fair Value, Measurements, Recurring | Foreign government | ||
Assets: | ||
Total fixed maturity securities available for sale | 0 | 0 |
Level 3 | Fair Value, Measurements, Recurring | Common stocks | ||
Assets: | ||
Equity securities | 8,350 | 9,053 |
Level 3 | Fair Value, Measurements, Recurring | Preferred stocks | ||
Assets: | ||
Equity securities | $ 9,328 | $ 6,505 |
Fair Value Measurements (Summar
Fair Value Measurements (Summarize Changes in Level 3 Assets) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Assets, impairments | $ 0 | |
Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Assets, beginning balance | $ 15,558 | 29,948 |
Assets, earnings | (6,794) | |
Assets, other comprehensive income | 61 | |
Assets, purchases | 17,369 | |
Assets, (sales) | (39,915) | |
Assets. transfers out | 14,889 | |
Assets, ending balance | 15,558 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Liabilities, beginning balance | 0 | 793 |
Liabilities, earnings | 133 | |
Liabilities, other comprehensive income | 0 | |
Liabilities, impairments | 0 | |
Liabilities, purchases | 7,609 | |
Liabilities, (sales) | (8,535) | |
Liabilities, maturities | 0 | |
Liabilities, transfers out | 0 | |
Liabilities, ending balance | 0 | |
Level 3 | Debt securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Assets, beginning balance | 0 | 99 |
Assets, earnings | (26) | |
Assets, other comprehensive income | 61 | |
Assets, impairments | 0 | |
Assets, purchases | 0 | |
Assets, (sales) | (134) | |
Assets. transfers out | 0 | |
Assets, ending balance | 0 | |
Level 3 | Asset-backed | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Assets, beginning balance | 0 | 99 |
Assets, earnings | (26) | |
Assets, other comprehensive income | 61 | |
Assets, impairments | 0 | |
Assets, purchases | 0 | |
Assets, (sales) | (134) | |
Assets, maturities | 0 | |
Assets. transfers out | 0 | |
Assets, ending balance | 0 | |
Level 3 | Equity securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Assets, beginning balance | 15,558 | 12,541 |
Assets, earnings | 186 | 1,963 |
Assets, other comprehensive income | 0 | 0 |
Assets, impairments | 0 | 0 |
Assets, purchases | 3,000 | 2,602 |
Assets, (sales) | (1,066) | (1,548) |
Assets, maturities | 0 | |
Assets. transfers out | 0 | 0 |
Assets, ending balance | 17,678 | 15,558 |
Level 3 | Common stock | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Assets, beginning balance | 9,053 | 8,596 |
Assets, earnings | 363 | 2,005 |
Assets, other comprehensive income | 0 | |
Assets, impairments | 0 | 0 |
Assets, purchases | 0 | 0 |
Assets, (sales) | (1,066) | (1,548) |
Assets. transfers out | 0 | 0 |
Assets, ending balance | 8,350 | 9,053 |
Level 3 | Preferred stocks | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Assets, beginning balance | 6,505 | 3,945 |
Assets, earnings | (177) | (42) |
Assets, other comprehensive income | 0 | 0 |
Assets, impairments | 0 | 0 |
Assets, purchases | 3,000 | 2,602 |
Assets, (sales) | 0 | 0 |
Assets. transfers out | 0 | 0 |
Assets, ending balance | 9,328 | 6,505 |
Level 3 | Arbitrage trading account | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Assets, beginning balance | $ 0 | 17,308 |
Assets, earnings | (8,731) | |
Assets, other comprehensive income | 0 | |
Assets, impairments | 0 | |
Assets, purchases | 14,767 | |
Assets, (sales) | (38,233) | |
Assets. transfers out | 14,889 | |
Assets, ending balance | $ 0 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | ||
Securities transferred into or out of level 3, net | $ 0 | |
Securities transferred into or out of level 3, net | $ 2 |
Reserves for Loss and Loss Ex_3
Reserves for Loss and Loss Expenses (Details) - USD ($) $ in Thousands | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||||
Net reserves at beginning of period | $ 10,697,998 | $ 10,248,883 | |||
Net provision for losses and loss expenses: | |||||
Claims occurring during the current year | 3,328,827 | 3,007,364 | |||
Decrease in estimates for claims occurring in prior years | 849 | 22,340 | |||
Loss reserve discount accretion | 27,335 | 29,246 | |||
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred Claims | 3,357,011 | 3,058,950 | |||
Net payments for claims: | |||||
Current year | 570,924 | 767,945 | |||
Prior years | 2,077,945 | 1,907,979 | |||
Total | 2,648,869 | 2,675,924 | |||
Foreign currency translation | (21,003) | (49,455) | |||
Net reserves at end of period | 10,697,998 | 10,248,883 | $ 11,391,064 | $ 10,697,998 | $ 10,582,454 |
Ceded reserves at end of period | 2,068,295 | 1,814,501 | |||
Gross reserves at end of period | $ 13,459,359 | 12,583,249 | $ 12,396,955 | ||
Cumulative effect adjustment resulting from changes in accounting principles | |||||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||||
Net reserves at beginning of period | 5,927 | 0 | |||
Net payments for claims: | |||||
Net reserves at end of period | 5,927 | 0 | 5,927 | ||
Cumulative Effect, Period Of Adoption, Adjusted Balance | |||||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||||
Net reserves at beginning of period | 10,703,925 | 10,248,883 | |||
Net payments for claims: | |||||
Net reserves at end of period | $ 10,703,925 | $ 10,248,883 | $ 10,703,925 |
Reserves for Loss and Loss Ex_4
Reserves for Loss and Loss Expenses (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net of loss reserve discounts | $ 8 | $ 15 |
Increase (decrease) in estimates for claims | 19 | (12) |
Adjustment expense | 12 | 17 |
Liability recognized for best estimate net of reinsurance | 143 | |
Liability recognized for best estimate net of reinsurance, reported losses | 69 | |
Liability recognized for best estimate net of reinsurance, incurred but not reported (IBNR) | 74 | |
Insurance | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Liability recognized for best estimate net of reinsurance | 121 | |
Favorable reserve development net of premium offsets | 19 | 18 |
Reinsurance & Monoline Excess | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Liability recognized for best estimate net of reinsurance | 22 | |
Unfavorable reserve development net of premium offsets | $ 7 | $ 1 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Carrying Amounts and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets: | ||
Arbitrage trading account | $ 595,727 | $ 400,809 |
Loans receivable | 86,530 | 94,613 |
Carrying Value | ||
Assets: | ||
Fixed maturity securities | 13,893,046 | 14,180,961 |
Equity securities | 435,303 | 480,620 |
Arbitrage trading account | 595,727 | 400,809 |
Loans receivable | 84,771 | 91,799 |
Cash and cash equivalents | 2,571,447 | 1,023,710 |
Trading account receivables from brokers and clearing organizations | 252,223 | 423,543 |
Liabilities: | ||
Due to broker | 58,893 | 27,116 |
Trading account securities sold but not yet purchased | 19,254 | 36,143 |
Subordinated debentures | 1,443,736 | 1,198,704 |
Senior notes and other debt | 1,629,077 | 1,427,575 |
Fair Value | ||
Assets: | ||
Fixed maturity securities | 13,907,561 | 14,194,955 |
Equity securities | 435,303 | 480,620 |
Arbitrage trading account | 595,727 | 400,809 |
Loans receivable | 86,530 | 94,613 |
Cash and cash equivalents | 2,571,447 | 1,023,710 |
Trading account receivables from brokers and clearing organizations | 252,223 | 423,543 |
Liabilities: | ||
Due to broker | 58,893 | 27,116 |
Trading account securities sold but not yet purchased | 19,254 | 36,143 |
Subordinated debentures | 1,530,810 | 1,274,088 |
Senior notes and other debt | $ 1,898,483 | $ 1,582,290 |
Fair Value Of Financial Instr_4
Fair Value Of Financial Instruments Fair Value of Financial Instruments (Narrative) (Details) - Subordinated Debt - Subsequent Event | 1 Months Ended |
Oct. 31, 2020USD ($) | |
Debt Instrument, Redemption [Line Items] | |
Subordinated debt, redemption price, amount | $ 350,000,000 |
Subordinated debt, redemption price, percentage | 5.625% |
Premiums and Reinsurance Rela_3
Premiums and Reinsurance Related Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | Dec. 31, 2019 | |
Written premiums: | ||||||
Written premiums, direct | $ 2,018,530 | $ 1,853,881 | $ 5,875,379 | $ 5,566,728 | ||
Written premiums, assumed | 244,015 | 239,169 | 750,784 | 662,412 | ||
Written premiums, ceded | (383,229) | (343,144) | (1,161,183) | (1,026,169) | ||
Total net premiums written | 1,879,316 | 1,749,906 | 5,464,980 | 5,202,971 | ||
Earned premiums: | ||||||
Earned premiums, direct | 1,877,234 | 1,797,726 | 5,511,791 | 5,294,773 | ||
Earned premiums, assumed | 237,815 | 209,094 | 699,025 | 595,946 | ||
Earned premiums, ceded | (366,128) | (330,010) | (1,093,563) | (974,212) | ||
Net premiums earned | 1,748,921 | 1,676,810 | 5,117,253 | 4,916,507 | ||
Ceded losses and loss expenses incurred | 209,706 | 172,009 | 677,761 | 584,323 | ||
Ceded commissions earned | 89,104 | $ 76,001 | 255,742 | $ 220,110 | ||
Cumulative effect adjustment resulting from changes in accounting principles | $ 7,741 | $ 7,741 | $ 7,175 | $ 690 |
Premiums and Reinsurance Rela_4
Premiums and Reinsurance Related Information - Premiums and Reinsurance, Allowance For Credit Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Premium Receivable, Allowance for Credit Loss [Roll Forward] | ||
Allowance for expected credit losses at January 1, 2020 | $ 22,106 | $ 19,823 |
Cumulative effect adjustment resulting from changes in accounting principles | 23,033 | 23,033 |
Provision for expected credit losses | 927 | 1,940 |
Allowance for expected credit losses at September 30, 2020 | 23,033 | 23,033 |
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward] | ||
Allowance for expected credit losses at January 1, 2020 | 7,175 | 690 |
Cumulative effect adjustment resulting from changes in accounting principles | 7,175 | 7,741 |
Reinsurance Recoverable, Credit Loss Expense (Reversal) | 566 | 1,124 |
Allowance for expected credit losses at September 30, 2020 | $ 7,741 | 7,741 |
Cumulative effect adjustment resulting from changes in accounting principles | ||
Premium Receivable, Allowance for Credit Loss [Roll Forward] | ||
Allowance for expected credit losses at January 1, 2020 | 1,270 | |
Cumulative effect adjustment resulting from changes in accounting principles | 1,270 | |
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward] | ||
Allowance for expected credit losses at January 1, 2020 | 5,927 | |
Cumulative effect adjustment resulting from changes in accounting principles | $ 5,927 |
Restricted Stock Units (Summary
Restricted Stock Units (Summary of Restricted Stock Units Issued) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Share-Based Compensation Arrangement by Share-based Payment Award [Line Item] | ||
Share based compensation expense | $ 35,000 | $ 36,000 |
Restricted stock | ||
Share-Based Compensation Arrangement by Share-based Payment Award [Line Item] | ||
Restricted stock units (in units) | 953,519 | 839,263 |
Fair Value | $ 59,683 | $ 59,435 |
Minimum | Restricted stock | ||
Share-Based Compensation Arrangement by Share-based Payment Award [Line Item] | ||
Award vesting period | 3 years | |
Maximum | Restricted stock | ||
Share-Based Compensation Arrangement by Share-based Payment Award [Line Item] | ||
Award vesting period | 5 years |
Leases (Lease Cost) (Details)
Leases (Lease Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||||
Lease cost | $ 11,016 | $ 10,734 | $ 33,130 | $ 32,969 |
Cash paid for amounts included in the measurement of lease liabilities reported in operating cash flows | 11,560 | 11,241 | 33,869 | 34,030 |
Right-of-use assets obtained in exchange for new lease liabilities | $ 1,344 | $ 23,211 | $ 5,639 | $ 31,095 |
Leases (Supplemental Balance Sh
Leases (Supplemental Balance Sheet Information) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Leases [Abstract] | ||
Operating lease, right-of-use asset | $ 172,473 | $ 194,553 |
Operating lease, liability | $ 211,808 | $ 226,291 |
Weighted-average remaining lease term | 6 years 8 months 12 days | 7 years 2 months 12 days |
Weighted-average discount rate | 5.93% | 5.97% |
Leases (Maturities of Operating
Leases (Maturities of Operating Lease Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Leases [Abstract] | ||
Remainder of 2019 | $ 12,162 | |
2021 | 46,835 | |
2022 | 41,637 | |
2023 | 37,737 | |
2024 | 31,439 | |
Thereafter | 78,806 | |
Total undiscounted future minimum lease payments | 248,616 | |
Less: Discount impact | (36,808) | |
Total lease liability | $ 211,808 | $ 226,291 |
Business Segments (Financial In
Business Segments (Financial Information of Company Operating Segments) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)segment | Sep. 30, 2019USD ($) | |
Segment Reporting [Abstract] | ||||
Number of reportable segments | segment | 2 | |||
Segment Reporting Information [Line Items] | ||||
Earned Premiums (1) | $ 1,748,921 | $ 1,676,810 | $ 5,117,253 | $ 4,916,507 |
Investment Income | 142,650 | 161,692 | 402,844 | 508,279 |
Other | 148,248 | 127,214 | 266,357 | 501,336 |
Total revenues | 2,039,819 | 1,965,716 | 5,786,454 | 5,926,122 |
Pre-Tax Income (Loss) | 206,414 | 202,982 | 305,395 | 706,157 |
Net Income (Loss) to Common Stockholders | 151,678 | 165,208 | 218,520 | 562,638 |
Net investment gains | 38,978 | 1,465 | (60,311) | 143,691 |
Net investment gains, net of tax | 30,123 | 1,158 | (46,689) | 113,516 |
Corporate, other and eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Earned Premiums (1) | 0 | 0 | 0 | 0 |
Investment Income | 14,516 | 18,296 | 45,975 | 48,416 |
Other | 99,807 | 114,138 | 300,715 | 319,103 |
Total revenues | 114,323 | 132,434 | 346,690 | 367,519 |
Pre-Tax Income (Loss) | (73,067) | (47,736) | (176,369) | (194,664) |
Net Income (Loss) to Common Stockholders | (57,781) | (37,184) | (139,471) | (154,736) |
Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Earned Premiums (1) | 1,493,854 | 4,396,071 | ||
Insurance | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Earned Premiums (1) | 1,531,093 | 1,493,854 | 4,481,092 | 4,396,071 |
Investment Income | 87,828 | 99,628 | 255,392 | 332,072 |
Other | 9,463 | 11,611 | 25,953 | 38,542 |
Total revenues | 1,628,384 | 1,605,093 | 4,762,437 | 4,766,685 |
Pre-Tax Income (Loss) | 178,971 | 202,390 | 431,464 | 612,777 |
Net Income (Loss) to Common Stockholders | 130,266 | 162,994 | 315,733 | 488,228 |
Reinsurance & Monoline Excess | ||||
Segment Reporting Information [Line Items] | ||||
Earned Premiums (1) | 182,956 | 520,436 | ||
Reinsurance & Monoline Excess | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Earned Premiums (1) | 217,828 | 182,956 | 636,161 | 520,436 |
Investment Income | 40,306 | 43,768 | 101,477 | 127,791 |
Other | 0 | 0 | 0 | 0 |
Total revenues | 258,134 | 226,724 | 737,638 | 648,227 |
Pre-Tax Income (Loss) | 61,532 | 46,863 | 110,611 | 144,353 |
Net Income (Loss) to Common Stockholders | 49,070 | 38,240 | 88,947 | 115,630 |
Re-insurance - International | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 77,000 | 65,000 | 212,000 | 186,000 |
Net investment gains | ||||
Segment Reporting Information [Line Items] | ||||
Earned Premiums (1) | 0 | 0 | 0 | 0 |
Investment Income | 0 | 0 | 0 | 0 |
Insurance-International Segment | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 183,000 | $ 185,000 | $ 500,000 | $ 535,000 |
Business Segments (Identifiable
Business Segments (Identifiable Assets by Segment) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated Assets | $ 28,212,370 | $ 26,630,030 |
Operating Segments | Insurance | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated Assets | 21,060,144 | 20,005,802 |
Operating Segments | Reinsurance & Monoline Excess | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated Assets | 4,697,249 | 4,710,819 |
Corporate, other and eliminations | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated Assets | $ 2,454,977 | $ 1,913,409 |
Business Segments (Net Premiums
Business Segments (Net Premiums Earned By Major Line of Business) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue from External Customer [Line Items] | ||||
Net premiums earned | $ 1,748,921 | $ 1,676,810 | $ 5,117,253 | $ 4,916,507 |
Insurance | ||||
Revenue from External Customer [Line Items] | ||||
Net premiums earned | 1,493,854 | 4,396,071 | ||
Insurance | Operating Segments | ||||
Revenue from External Customer [Line Items] | ||||
Net premiums earned | 1,531,093 | 1,493,854 | 4,481,092 | 4,396,071 |
Insurance | Other liability | ||||
Revenue from External Customer [Line Items] | ||||
Net premiums earned | 561,595 | 527,253 | 1,653,189 | 1,523,534 |
Insurance | Short-tail lines | ||||
Revenue from External Customer [Line Items] | ||||
Net premiums earned | 326,019 | 310,423 | 917,466 | 905,365 |
Insurance | Workers' compensation | ||||
Revenue from External Customer [Line Items] | ||||
Net premiums earned | 271,802 | 321,872 | 852,101 | 979,059 |
Insurance | Commercial automobile | ||||
Revenue from External Customer [Line Items] | ||||
Net premiums earned | 203,047 | 191,136 | 583,024 | 560,340 |
Insurance | Professional liability | ||||
Revenue from External Customer [Line Items] | ||||
Net premiums earned | 168,630 | 143,170 | 475,312 | 427,773 |
Reinsurance & Monoline Excess | ||||
Revenue from External Customer [Line Items] | ||||
Net premiums earned | 182,956 | 520,436 | ||
Reinsurance & Monoline Excess | Operating Segments | ||||
Revenue from External Customer [Line Items] | ||||
Net premiums earned | 217,828 | 182,956 | 636,161 | 520,436 |
Reinsurance & Monoline Excess | Casualty reinsurance | ||||
Revenue from External Customer [Line Items] | ||||
Net premiums earned | 130,186 | 106,532 | 383,375 | 292,471 |
Reinsurance & Monoline Excess | Monoline excess | ||||
Revenue from External Customer [Line Items] | ||||
Net premiums earned | 43,577 | 40,639 | 126,800 | 119,020 |
Reinsurance & Monoline Excess | Property reinsurance | ||||
Revenue from External Customer [Line Items] | ||||
Net premiums earned | $ 44,065 | $ 35,785 | $ 125,986 | $ 108,945 |