Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 31, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-40399 | |
Entity Registrant Name | Enact Holdings, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 46-1579166 | |
Entity Address, Address Line One | 8325 Six Forks Road | |
Entity Address, City or Town | Raleigh | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 27615 | |
City Area Code | 919 | |
Local Phone Number | 846-4100 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | ACT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 159,993,788 | |
Entity Central Index Key | 0001823529 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Fixed maturity securities available-for-sale, at fair value (amortized cost of $5,354,262 and $5,371,673 as of June 30, 2023, and December 31, 2022, respectively) | $ 4,915,039 | $ 4,884,760 |
Short-term investments, at fair value | 10,849 | 3,047 |
Total investments | 4,925,888 | 4,887,807 |
Cash and cash equivalents | 691,416 | 513,775 |
Accrued investment income | 37,726 | 35,844 |
Deferred acquisition costs | 25,843 | 26,121 |
Premiums receivable (net of allowance for credit losses of $894 and $873 as of June 30, 2023, and December 31, 2022, respectively) | 43,525 | 41,738 |
Other assets | 80,363 | 76,391 |
Deferred tax asset | 119,099 | 127,473 |
Total assets | 5,923,860 | 5,709,149 |
Liabilities: | ||
Loss reserves | 490,203 | 519,008 |
Unearned premiums | 174,561 | 202,717 |
Other liabilities | 139,100 | 143,686 |
Long-term borrowings | 744,100 | 742,830 |
Total liabilities | 1,547,964 | 1,608,241 |
Equity: | ||
Common stock ($0.01 par value; 600,000 shares authorized; 160,234 shares issued and outstanding as of June 30, 2023, and 162,779 shares issued and outstanding as of December 31, 2022) | 1,602 | 1,628 |
Additional paid-in capital | 2,324,527 | 2,382,068 |
Accumulated other comprehensive income | (345,243) | (382,744) |
Retained earnings | 2,395,010 | 2,099,956 |
Total equity | 4,375,896 | 4,100,908 |
Total liabilities and equity | $ 5,923,860 | $ 5,709,149 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Amortized cost | $ 5,354,262 | $ 5,371,673 |
Premiums receivable, allowance for credit losses | $ 894 | $ 873 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 600,000 | 600,000 |
Common stock, issued (in shares) | 160,234 | 162,779 |
Common stock, outstanding (in shares) | 160,234 | 162,779 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenues: | ||||
Premiums | $ 238,520 | $ 237,386 | $ 473,628 | $ 471,665 |
Net investment income | 50,915 | 35,776 | 96,256 | 70,922 |
Net investment gains (losses) | (13,001) | (381) | (13,123) | (720) |
Other income | 1,088 | 760 | 1,700 | 1,262 |
Total revenues | 277,522 | 273,541 | 558,461 | 543,129 |
Losses and expenses: | ||||
Losses incurred | (4,070) | (61,563) | (15,054) | (72,009) |
Acquisition and operating expenses, net of deferrals | 51,887 | 58,201 | 103,592 | 112,463 |
Amortization of deferred acquisition costs and intangibles | 2,645 | 3,230 | 5,285 | 6,320 |
Interest expense | 12,913 | 12,786 | 25,978 | 25,562 |
Total losses and expenses | 63,375 | 12,654 | 119,801 | 72,336 |
Income before income taxes | 214,147 | 260,887 | 438,660 | 470,793 |
Provision for income taxes | 46,127 | 56,152 | 94,652 | 101,428 |
Net income | $ 168,020 | $ 204,735 | $ 344,008 | $ 369,365 |
Net income per common share: | ||||
Basic (in usd per share) | $ 1.04 | $ 1.26 | $ 2.13 | $ 2.27 |
Diluted (in usd per share) | $ 1.04 | $ 1.25 | $ 2.11 | $ 2.26 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 161,318 | 162,842 | 161,880 | 162,842 |
Diluted (in shares) | 162,171 | 163,225 | 162,675 | 163,140 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 168,020 | $ 204,735 | $ 344,008 | $ 369,365 |
Other comprehensive income (loss), net of taxes: | ||||
Net unrealized gains (losses) on securities without an allowance for credit losses | (25,000) | (152,401) | 37,510 | (376,701) |
Foreign currency translation | (1) | 64 | (9) | 93 |
Other comprehensive income (loss) | (25,001) | (152,337) | 37,501 | (376,608) |
Total comprehensive income (loss) | $ 143,019 | $ 52,398 | $ 381,509 | $ (7,243) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Retained earnings |
Beginning balance at Dec. 31, 2021 | $ 4,105,523 | $ 1,628 | $ 2,371,861 | $ 83,581 | $ 1,648,453 |
Comprehensive income (loss): | |||||
Net income | 369,365 | 369,365 | |||
Other comprehensive income (loss) | (376,608) | (376,608) | |||
Stock-based compensation expense and exercises and other | 5,018 | 5,181 | (163) | ||
Dividends | (22,798) | (22,798) | |||
Ending balance at Jun. 30, 2022 | 4,080,500 | 1,628 | 2,377,042 | (293,027) | 1,994,857 |
Beginning balance at Mar. 31, 2022 | 4,048,589 | 1,628 | 2,374,568 | (140,690) | 1,813,083 |
Comprehensive income (loss): | |||||
Net income | 204,735 | 204,735 | |||
Other comprehensive income (loss) | (152,337) | (152,337) | |||
Stock-based compensation expense and exercises and other | 2,311 | 2,474 | (163) | ||
Dividends | (22,798) | (22,798) | |||
Ending balance at Jun. 30, 2022 | 4,080,500 | 1,628 | 2,377,042 | (293,027) | 1,994,857 |
Beginning balance at Dec. 31, 2022 | 4,100,908 | 1,628 | 2,382,068 | (382,744) | 2,099,956 |
Comprehensive income (loss): | |||||
Net income | 344,008 | 344,008 | |||
Other comprehensive income (loss) | 37,501 | 37,501 | |||
Repurchase of common stock | 63,435 | 27 | 63,408 | ||
Stock-based compensation expense and exercises and other | 5,372 | 1 | 5,867 | (496) | |
Dividends | (48,458) | (48,458) | |||
Ending balance at Jun. 30, 2023 | 4,375,896 | 1,602 | 2,324,527 | (345,243) | 2,395,010 |
Beginning balance at Mar. 31, 2023 | 4,296,621 | 1,619 | 2,362,281 | (320,242) | 2,252,963 |
Comprehensive income (loss): | |||||
Net income | 168,020 | 168,020 | |||
Other comprehensive income (loss) | (25,001) | (25,001) | |||
Repurchase of common stock | 41,235 | 17 | 41,218 | ||
Stock-based compensation expense and exercises and other | 3,193 | 0 | 3,464 | (271) | |
Dividends | (25,702) | (25,702) | |||
Ending balance at Jun. 30, 2023 | $ 4,375,896 | $ 1,602 | $ 2,324,527 | $ (345,243) | $ 2,395,010 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 344,008 | $ 369,365 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net investment (gains) losses | 13,123 | 720 |
Amortization of fixed maturity securities discounts and premiums | (2,222) | (1,529) |
Amortization of deferred acquisition costs and intangibles | 5,285 | 6,320 |
Acquisition costs deferred | (3,238) | (3,316) |
Deferred income taxes | (1,824) | 1,475 |
Stock-based compensation expense | 5,372 | 5,040 |
Amortization of debt issuance costs | 1,270 | 1,186 |
Other | 0 | (20) |
Change in certain assets and liabilities: | ||
Accrued investment income | (1,882) | (2,042) |
Premiums receivable | (1,787) | 1,230 |
Other assets | 1,273 | 1,931 |
Loss reserves | (28,805) | (82,431) |
Unearned premiums | (28,156) | (21,538) |
Other liabilities | (15,232) | 25,354 |
Net cash provided by operating activities | 287,185 | 301,745 |
Cash flows from investing activities: | ||
Purchases of fixed maturity securities available-for-sale | (599,050) | (624,909) |
Proceeds from sales of fixed maturity securities available-for-sale | 393,899 | 261,732 |
Proceeds from maturities of fixed maturity securities available-for-sale | 220,782 | 242,349 |
Net change in short-term investments | (7,293) | 0 |
Other | (5,989) | 0 |
Net cash provided by (used in) investing activities | 2,349 | (120,828) |
Cash flows from financing activities: | ||
Repurchase of common stock | (63,435) | 0 |
Dividends paid | (48,458) | (22,798) |
Net cash used in financing activities | (111,893) | (22,798) |
Net increase in cash and cash equivalents | 177,641 | 158,119 |
Cash and cash equivalents at beginning of period | 513,775 | 425,828 |
Cash and cash equivalents at end of period | $ 691,416 | $ 583,947 |
Nature of business, organizatio
Nature of business, organization structure and basis of presentation | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of business, organization structure and basis of presentation | Nature of business, organization structure and basis of presentation The accompanying unaudited condensed consolidated financial statements include, on a consolidated basis, the accounts of Enact Holdings, Inc. (“EHI,” together with its subsidiaries, the “Company,” “we,” “us” or “our”) (formerly known as Genworth Mortgage Holdings, Inc.). EHI is a subsidiary of Genworth Financial, Inc. (“Genworth” or “Parent”) and has been since EHI’s incorporation in Delaware in 2012. In September 2021, we completed a minority initial public offering (“IPO”) of 18.4% of EHI’s common stock. We are engaged in the business of writing and assuming residential mortgage guaranty insurance. The insurance protects lenders and investors against certain losses resulting from nonpayment of loans secured by mortgages, deeds of trust, or other instruments constituting a lien on residential real estate. We offer private mortgage insurance products predominantly insuring prime-based, individually underwritten residential mortgage loans (“primary mortgage insurance”). Our primary mortgage insurance enables borrowers to buy homes with a down payment of less than 20% of the home’s value. Primary mortgage insurance also facilitates the sale of these low down payment mortgage loans in the secondary mortgage market, most of which are sold to government sponsored enterprises. We also selectively enter into insurance transactions with lenders and investors, under which we insure a portfolio of loans at or after origination. We also perform fee-based contract underwriting services for mortgage lenders. The provision of underwriting services by mortgage insurers eliminates the duplicative lender and mortgage insurer underwriting activities and expedites the approval process. We operate our business through our primary insurance subsidiary, Enact Mortgage Insurance Corporation, (“EMICO”), formerly known as Genworth Mortgage Insurance Corporation, with operations in all 50 states and the District of Columbia. We completed name changes to some of our subsidiary legal entities during the first quarter of 2022. EMICO is an approved insurer by the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”). Fannie Mae and Freddie Mac are government-sponsored enterprises and we refer to them collectively as the “GSEs.” We also offer mortgage-related insurance and reinsurance through our wholly owned Bermuda-based subsidiary, Enact Re Ltd. ("Enact Re"). We contributed $250 million into Enact Re during the second quarter of 2023. As of June 30, 2023, Enact Re provided reinsurance relating to GSE risk share and reinsures EMICO’s new and existing insurance in-force under quota share reinsurance agreements. We operate our business in a single segment, which is how our chief operating decision maker (who is our Chief Executive Officer) reviews our financial performance and allocates resources. Our segment includes a run-off insurance block with reference properties in Mexico (“run-off business”), which is immaterial to our condensed consolidated financial statements. The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). Preparing financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect reported amounts and related disclosures. Actual results could differ from those estimates. These unaudited condensed consolidated financial statements include all adjustments (including normal recurring adjustments) considered necessary by management to present a fair statement of the financial position, results of operations and cash flows for the periods presented. The results reported in these unaudited condensed consolidated financial statements should not be regarded as necessarily indicative of results that may be expected for the entire year. The unaudited condensed consolidated financial |
Accounting changes
Accounting changes | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Accounting changes | Accounting changes Accounting Pronouncements Recently Adopted We have not adopted new accounting pronouncements in 2023. Accounting Pronouncements Not Yet Adopted There are no significant new accounting pronouncements impacting our financial statements. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Net Investment Income Sources of net investment income were as follows for the periods indicated: Three months ended Six months ended (Amounts in thousands) 2023 2022 2023 2022 Fixed maturity securities available-for-sale $ 44,542 $ 36,810 $ 85,917 $ 73,344 Cash, cash equivalents and short-term investments 7,955 422 13,575 432 Gross investment income before expenses and fees 52,497 37,232 99,492 73,776 Investment expenses and fees (1,582) (1,456) (3,236) (2,854) Net investment income $ 50,915 $ 35,776 $ 96,256 $ 70,922 Net Investment Gains (Losses) The following table sets forth net investment gains (losses) for the periods indicated: Three months ended Six months ended (Amounts in thousands) 2023 2022 2023 2022 Fixed maturity securities available-for-sale: Gross realized gains $ 20 $ 291 $ 20 $ 641 Gross realized (losses) (13,008) (672) (13,130) (1,534) Net realized gains (losses) (12,988) (381) (13,110) (893) Net change in allowance for credit losses on commitment (13) — (13) 173 Net investment gains (losses) $ (13,001) $ (381) $ (13,123) $ (720) There was no allowance for credit losses recorded on fixed maturity securities classified as available-for-sale as of June 30, 2023, or December 31, 2022, or activity during the six months ended June 30, 2023. We recorded an immaterial allowance for credit losses on an investment purchase commitment during the second quarter of 2023. Unrealized Investment Gains (Losses) Net unrealized gains and losses on available-for-sale securities reflected as a separate component of accumulated other comprehensive income (“AOCI”) were as follows as of the dates indicated: (Amounts in thousands) June 30, 2023 December 31, 2022 Net unrealized gains (losses) on investment securities: Fixed maturity securities $ (439,223) $ (486,913) Short-term investments (12) (30) Unrealized gains (losses) on investment securities (439,235) (486,943) Income taxes 93,849 104,047 Net unrealized investment gains (losses) $ (345,386) $ (382,896) The change in net unrealized gains (losses) on available-for-sale securities reported in accumulated other comprehensive income was as follows as of and for the periods indicated: Three months ended (Amounts in thousands) 2023 2022 Beginning balance $ (320,386) $ (140,712) Unrealized gains (losses) arising during the period: Unrealized gains (losses) on investment securities (44,767) (193,949) Provision for income taxes 9,506 41,247 Change in unrealized gains (losses) on investment securities (35,261) (152,702) Reclassification adjustments to net investment (gains) losses, net of taxes of $(2,727) and $(80), respectively 10,261 301 Change in net unrealized investment gains (losses) (25,000) (152,401) Ending balance $ (345,386) $ (293,113) Six months ended (Amounts in thousands) 2023 2022 Beginning balance $ (382,896) $ 83,588 Unrealized gains (losses) arising during the period: Unrealized gains (losses) on investment securities 34,599 (479,350) Provision for income taxes (7,446) 101,944 Change in unrealized gains (losses) on investment securities 27,153 (377,406) Reclassification adjustments to net investment (gains) losses, net of taxes of $(2,753) and $(188), respectively 10,357 705 Change in net unrealized investment gains (losses) 37,510 (376,701) Ending balance $ (345,386) $ (293,113) Amounts reclassified out of accumulated other comprehensive income to net investment gains (losses) include realized gains (losses) on sales of securities, which are determined on a specific identification basis. Fixed Maturity Securities Available-For-Sale As of June 30, 2023, the amortized cost, gross unrealized gains (losses) and fair value of our investment securities were as follows: (Amounts in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value U.S. government, agencies and GSEs $ 112,190 $ 67 $ (1,719) $ 110,538 State and political subdivisions 510,288 1,735 (85,495) 426,528 Non-U.S. government 12,382 — (1,176) 11,206 U.S. corporate 2,728,245 1,468 (220,234) 2,509,479 Non-U.S. corporate 696,177 344 (56,471) 640,050 Residential mortgage-backed 9,647 1 (174) 9,474 Other asset-backed 1,285,333 494 (78,063) 1,207,764 Total fixed maturity securities available-for-sale $ 5,354,262 $ 4,109 $ (443,332) $ 4,915,039 Short-term investments 10,861 — (12) 10,849 Total investments $ 5,365,123 $ 4,109 $ (443,344) $ 4,925,888 As of December 31, 2022, the amortized cost, gross unrealized gains (losses) and fair value of our investment securities were as follows: (Amounts in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value U.S. government, agencies and GSEs $ 46,319 $ 59 $ (1,609) $ 44,769 State and political subdivisions 515,935 1,815 (97,894) 419,856 Non-U.S. government 10,607 — (1,258) 9,349 U.S. corporate 2,886,269 1,355 (240,761) 2,646,863 Non-U.S. corporate 716,333 158 (63,647) 652,844 Residential mortgage-backed 11,162 — (119) 11,043 Other asset-backed 1,185,048 462 (85,474) 1,100,036 Total fixed maturity securities available-for-sale $ 5,371,673 $ 3,849 $ (490,762) $ 4,884,760 Short-term investments 3,077 — (30) 3,047 Total investments $ 5,374,750 $ 3,849 $ (490,792) $ 4,887,807 Gross Unrealized Losses and Fair Values of Fixed Maturity Securities Available-For-Sale The following table presents the gross unrealized losses and fair values of our fixed maturity securities for which an allowance for credit losses has not been recorded, aggregated by investment type and length of time that individual fixed maturity securities have been in a continuous unrealized loss position, as of June 30, 2023: Less than 12 months 12 months or more Total (Amounts in thousands) Fair value Gross unrealized losses Number of securities Fair value Gross unrealized losses Number of securities Fair value Gross unrealized losses Number of securities Fixed maturity securities: U.S. government, agencies and GSEs $ 77,177 $ (418) 20 $ 32,550 $ (1,301) 13 $ 109,727 $ (1,719) 33 State and political subdivisions 1,423 (29) 2 405,608 (85,466) 86 407,031 (85,495) 88 Non-U.S. government 1,846 (1) 1 9,360 (1,175) 1 11,206 (1,176) 2 U.S. corporate 825,996 (25,319) 261 1,578,403 (194,915) 291 2,404,399 (220,234) 552 Non-U.S. corporate 183,459 (4,240) 63 425,132 (52,231) 85 608,591 (56,471) 148 Residential mortgage-backed 8,533 (174) 5 — — — 8,533 (174) 5 Other asset-backed 316,247 (5,395) 118 808,242 (72,668) 182 1,124,489 (78,063) 300 Total for fixed maturity securities in an unrealized loss position $ 1,414,681 $ (35,576) 470 $ 3,259,295 $ (407,756) 658 $ 4,673,976 $ (443,332) 1,128 We did not recognize an allowance for credit losses on securities in an unrealized loss position included in the table above. Based on a qualitative and quantitative review of the issuers of the securities, we believe the unrealized losses are largely due to changes in interest rates and recent market volatility, and are not indicative of credit losses. The issuers continue to make timely principal and interest payments. For all securities in an unrealized loss position without an allowance for credit losses, we expect to recover the amortized cost based on our estimate of the amount and timing of cash flows to be collected. We do not intend to sell nor do we expect that we will be required to sell these securities prior to recovering our amortized cost. The following table presents the gross unrealized losses and fair values of our fixed maturity securities, aggregated by investment type and length of time that individual fixed maturity securities have been in a continuous unrealized loss position, as of December 31, 2022: Less than 12 months 12 months or more Total (Amounts in thousands) Fair value Gross unrealized losses Number of securities Fair value Gross unrealized losses Number of securities Fair value Gross unrealized losses Number of securities Fixed maturity securities: U.S. government, agencies and GSEs $ 43,873 $ (1,600) 18 $ 96 $ (9) 1 $ 43,969 $ (1,609) 19 State and political subdivisions 203,752 (40,988) 43 196,235 (56,906) 46 399,987 (97,894) 89 Non-U.S. government — — — 9,349 (1,258) 1 9,349 (1,258) 1 U.S. corporate 2,033,713 (131,150) 468 568,171 (109,611) 92 2,601,884 (240,761) 560 Non-U.S. corporate 486,117 (35,515) 125 155,345 (28,132) 27 641,462 (63,647) 152 Residential mortgage-backed 11,043 (119) 6 — — — 11,043 (119) 6 Other asset-backed 655,525 (31,684) 217 375,810 (53,790) 71 1,031,335 (85,474) 288 Total for fixed maturity securities in an unrealized loss position $ 3,434,023 $ (241,056) 877 $ 1,305,006 $ (249,706) 238 $ 4,739,029 $ (490,762) 1,115 Contractual Maturities of Fixed Maturity Securities Available-For-Sale The scheduled maturity distribution of fixed maturity securities as of June 30, 2023, is set forth below. Actual maturities may differ from contractual maturities because issuers of securities may have the right to call or prepay obligations with or without call or prepayment penalties. (Amounts in thousands) Amortized cost Fair value Due one year or less $ 254,992 $ 250,690 Due after one year through five years 2,049,802 1,901,357 Due after five years through ten years 1,478,171 1,296,200 Due after ten years 276,317 249,554 Subtotal 4,059,282 3,697,801 Residential mortgage-backed 9,647 9,474 Other asset-backed 1,285,333 1,207,764 Total fixed maturity securities available-for-sale $ 5,354,262 $ 4,915,039 As of June 30, 2023, securities issued by the finance and insurance, technology and communications, consumer—non-cyclical, and utilities industry groups represented approximately 33%, 13%, 11%, and 10%, respectively, of our domestic and foreign corporate fixed maturity securities portfolio. No other industry group comprised more than 9% of our investment portfolio. As of June 30, 2023, we did not hold any fixed maturity securities in any single issuer, other than securities issued or guaranteed by the U.S. government, which exceeded 10% of equity. As of June 30, 2023, and December 31, 2022, $25.2 million and $25.1 million, respectively, of securities in our portfolio were on deposit with various state insurance commissioners in order to comply with relevant insurance regulations. |
Fair value
Fair value | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair value | Fair value Recurring fair value measurements We hold fixed maturity securities and short-term investments, which are carried at fair value. The fair value of fixed maturity securities and short-term investments are estimated primarily based on information derived from third-party pricing services (“pricing services”), internal models and/or broker quotes, which use a market approach, income approach or a combination of the market and income approach depending on the type of instrument and availability of information. In general, a market approach is utilized if there is readily available and relevant market activity for an individual security. In certain cases where market information is not available for a specific security but is available for similar securities, that security is valued using market information for similar securities, which is also a market approach. When market information is not available for a specific security (or similar securities) or is available but such information is less relevant or reliable, an income approach or a combination of a market and income approach is utilized. For securities with optionality, such as call or prepayment features (including asset-backed securities), an income or combination approach may be used. These valuation techniques may change from period to period, based on the relevance and availability of market data. Further, while we consider the valuations provided by pricing services and broker quotes to be of high quality, management determines the fair value of our investment securities after considering all relevant and available information. In general, we first obtain valuations from pricing services. If prices are unavailable for public securities, we obtain broker quotes. For all securities, excluding certain private fixed maturity securities, if neither a pricing service nor broker quotes valuation is available, we determine fair value using internal models. For certain private fixed maturity securities where we do not obtain valuations from pricing services, we utilize an internal model to determine fair value since transactions for similar securities are not readily observable and these securities are not typically valued by pricing services. Given our understanding of the pricing methodologies and procedures of pricing services, the securities valued by pricing services are typically classified as Level 2 unless we determine the valuation process for a security or group of securities utilizes significant unobservable inputs, which would result in the valuation being classified as Level 3. Broker quotes are typically based on an income approach given the lack of available market data. As the valuation typically includes significant unobservable inputs, we classify the securities where fair value is based on our consideration of broker quotes as Level 3 measurements. For private fixed maturity securities, we utilize an income approach where we obtain public bond spreads and utilize those in an internal model to determine fair value. Other inputs to the model include rating and weighted-average life, as well as sector which is used to assign the spread. We then add an additional premium, which represents an unobservable input, to the public bond spread to adjust for the liquidity and other features of our private placements. We utilize the estimated market yield to discount the expected cash flows of the security to determine fair value. We utilize price caps for securities where the estimated market yield results in a valuation that may exceed the amount that would be received in a market transaction. When a security does not have an external rating, we assign the security an internal rating to determine the appropriate public bond spread that should be utilized in the valuation. While we generally consider the public bond spreads by sector and maturity to be observable inputs, we evaluate the similarities of our private placement with the public bonds, any price caps utilized, liquidity premiums applied, and whether external ratings are available for our private placements to determine whether the spreads utilized would be considered observable inputs. We classify private securities without an external rating or public bond spread as Level 3. In general, a significant increase (decrease) in credit spreads would have resulted in a significant decrease (increase) in the fair value for our fixed maturity securities as of June 30, 2023. For remaining securities priced using internal models, we determine fair value using an income approach. We maximize the use of observable inputs but typically utilize significant unobservable inputs to determine fair value. Accordingly, the valuations are typically classified as Level 3. Our assessment of whether or not there were significant unobservable inputs related to fixed maturity securities was based on our observations obtained through the course of managing our investment portfolio, including interaction with other market participants, observations related to the availability and consistency of pricing and/or rating, and understanding of general market activity such as new issuance and the level of secondary market trading for a class of securities. Additionally, we considered data obtained from pricing services to determine whether our estimated values incorporate significant unobservable inputs that would result in the valuation being classified as Level 3. A summary of the inputs used for our fixed maturity securities and short-term investments based on the level in which instruments are classified is included below. We have combined certain classes of instruments together as the nature of the inputs is similar. Level 1 measurements There were no fixed maturity securities classified as Level 1 as of June 30, 2023, and December 31, 2022. Level 2 measurements Fixed maturity securities: Third-party pricing services In estimating the fair value of fixed maturity securities, approximately 89% of our portfolio was priced using third-party pricing services as of June 30, 2023. These pricing services utilize industry-standard valuation techniques that include market-based approaches, income-based approaches, a combination of market-based and income-based approaches or other proprietary, internally generated models as part of the valuation processes. These third-party pricing vendors maximize the use of publicly available data inputs to generate valuations for each asset class. Priority and type of inputs used may change frequently as certain inputs may be more direct drivers of valuation at the time of pricing. Examples of significant inputs incorporated by pricing services may include sector and issuer spreads, seasoning, capital structure, security optionality, collateral data, prepayment assumptions, default assumptions, delinquencies, debt covenants, benchmark yields, trade data, dealer quotes, credit ratings, maturity and weighted-average life. We conduct regular meetings with our pricing services for the purpose of understanding the methodologies, techniques and inputs used by the third-party pricing providers. The following table presents a summary of the significant inputs used by our pricing services for certain fair value measurements of fixed maturity securities that are classified as Level 2 as of June 30, 2023: (Amounts in thousands) Fair value Primary methodologies Significant inputs U.S. government, agencies and GSEs $ 110,538 Price quotes from trading desk, broker feeds Bid side prices, trade prices, Option Adjusted Spread (“OAS”) to swap curve, Bond Market Association OAS, Treasury Curve, Agency Bullet Curve, maturity to issuer spread State and political subdivisions $ 426,528 Multi-dimensional attribute-based modeling systems, third-party pricing vendors Trade prices, material event notices, Municipal Market Data benchmark yields, broker quotes Non-U.S. government $ 11,206 Matrix pricing, spread priced to benchmark curves, price quotes from market makers Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources U.S. corporate $ 2,105,532 Multi-dimensional attribute-based modeling systems, broker quotes, price quotes from market makers, internal models, OAS-based models Bid side prices to Treasury Curve, Issuer Curve, which includes sector, quality, duration, OAS percentage and change for spread matrix, trade prices, comparative transactions, Trade Reporting and Compliance Engine (“TRACE”) reports Non-U.S. corporate $ 495,138 Multi-dimensional attribute-based modeling systems, OAS-based models, price quotes from market makers Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources Residential mortgage-backed $ 9,474 OAS-based models, single factor binomial models, internally priced Prepayment and default assumptions, aggregation of bonds with similar characteristics, including collateral type, vintage, tranche type, weighted-average life, weighted-average loan age, issuer program and delinquency ratio, pay up and pay down factors, TRACE reports Other asset-backed $ 1,196,812 Multi-dimensional attribute-based modeling systems, spread matrix priced to swap curves, price quotes from market makers Spreads to daily updated swap curves, spreads derived from trade prices and broker quotes, bid side prices, new issue data, collateral performance, analysis of prepayment speeds, cash flows, collateral loss analytics, historical issue analysis, trade data from market makers, TRACE reports Internal models A portion of our Level 2 U.S. corporate and non-U.S. corporate securities are valued using internal models. The fair value of these fixed maturity securities was $181.6 million and $72.2 million, respectively, as of June 30, 2023. Internally modeled securities are primarily private fixed maturity securities where we use market observable inputs such as an interest rate yield curve, published credit spreads for similar securities based on the external ratings of the instrument and related industry sector of the issuer. Additionally, we may apply certain price caps and liquidity premiums in the valuation of private fixed maturity securities. Price caps and liquidity premiums are established using inputs from market participants. Short-term investments: The fair value of short-term investments classified as Level 2 is determined after considering prices obtained by pricing services. Level 3 measurements Broker quotes A portion of our U.S. corporate and other asset-backed securities are valued using broker quotes. Broker quotes are obtained from third-party providers that have current market knowledge to provide a reasonable price for securities not routinely priced by pricing services. Brokers utilized for valuation of assets are reviewed annually. The fair value of our Level 3 fixed maturity securities priced by broker quotes was $23.3 million as of June 30, 2023. Internal models A portion of our U.S. corporate and non-U.S. corporate securities are valued using internal models. The primary inputs to the valuation of the bond population include quoted prices for identical assets, or similar assets in markets that are not active, contractual cash flows, duration, call provisions, issuer rating, benchmark yields and credit spreads. Certain private fixed maturity securities are valued using an internal model using market observable inputs such as the interest rate yield curve, as well as published credit spreads for similar securities, which includes significant unobservable inputs. Additionally, we may apply certain price caps and liquidity premiums in the valuation of private fixed maturity securities. Price caps are established using inputs from market participants. For structured securities, the primary inputs to the valuation include quoted prices for identical assets, or similar assets in markets that are not active, contractual cash flows, weighted-average coupon, weighted-average maturity, issuer rating, structure of the security, expected prepayment speeds and volumes, collateral type, current and forecasted loss severity, average delinquency rates, vintage of the loans, geographic region, debt service coverage ratios, payment priority with the tranche, benchmark yields and credit spreads. The fair value of our Level 3 fixed maturity securities priced using internal models was $282.7 million as of June 30, 2023. The following tables set forth our assets by class of instrument that are measured at fair value on a recurring basis as of the dates indicated: June 30, 2023 (Amounts in thousands) Total Level 1 Level 2 Level 3 Fixed maturity securities: U.S. government, agencies and GSEs $ 110,538 $ — $ 110,538 $ — State and political subdivisions 426,528 — 426,528 — Non-U.S. government 11,206 — 11,206 — U.S. corporate 2,509,479 — 2,287,178 222,301 Non-U.S. corporate 640,050 — 567,326 72,724 Residential mortgage-backed 9,474 — 9,474 — Other asset-backed 1,207,764 — 1,196,812 10,952 Total fixed maturity securities 4,915,039 — 4,609,062 305,977 Short-term investments 10,849 — 10,849 — Total $ 4,925,888 $ — $ 4,619,911 $ 305,977 December 31, 2022 (Amounts in thousands) Total Level 1 Level 2 Level 3 Fixed maturity securities: U.S. government, agencies and GSEs $ 44,769 $ — $ 44,769 $ — State and political subdivisions 419,856 — 419,856 — Non-U.S. government 9,349 — 9,349 — U.S. corporate 2,646,863 — 2,426,237 220,626 Non-U.S. corporate 652,844 — 557,690 95,154 Residential mortgage-backed 11,043 — 11,043 — Other asset-backed 1,100,036 — 1,096,555 3,481 Total fixed maturity securities 4,884,760 — 4,565,499 319,261 Short-term investments 3,047 — 3,047 — Total $ 4,887,807 $ — $ 4,568,546 $ 319,261 We had no liabilities recorded at fair value as of June 30, 2023, and December 31, 2022. The following tables present additional information about assets measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value as of or for the dates indicated: Beginning balance as of April 1, 2023 Total realized and unrealized gains (losses) Purchases Sales Settlements Transfer into Level 3 (1) Transfer out of Level 3 (1) Ending balance as of June 30, 2023 Total gains (losses) attributable to assets still held (Amounts in thousands) Included in net income Included in OCI Included in net income Included in OCI Fixed maturity securities: U.S. corporate $ 216,330 $ (8) $ (4,021) $ 18,000 $ — $ (8,000) $ — $ — $ 222,301 $ (7) $ (4,842) Non-U.S. corporate 74,131 8 (1,309) — — (106) — — 72,724 8 (1,310) Other asset-backed 984 2 (24) 9,991 — (1) — — 10,952 2 (24) Total $ 291,445 $ 2 $ (5,354) $ 27,991 $ — $ (8,107) $ — $ — $ 305,977 $ 3 $ (6,176) Beginning balance as of April 1, 2022 Total realized and unrealized gains (losses) Purchases Sales Settlements Transfer into Level 3 (1) Transfer out of Level 3 (1) Ending balance as of June 30, 2022 Total gains (losses) attributable to assets still held (Amounts in thousands) Included in net income Included in OCI Included in net income Included in OCI Fixed maturity securities: U.S. corporate $ 243,463 $ (13) $ (13,386) $ — $ — $ — $ — $ (13,410) $ 216,654 $ (13) $ (12,893) Non-U.S. corporate 84,418 (84) (3,933) 3,009 — (105) — — 83,305 (84) (3,931) Other asset-backed — — 57 14,997 — — — — 15,054 — 57 Total $ 327,881 $ (97) $ (17,262) $ 18,006 $ — $ (105) $ — $ (13,410) $ 315,013 $ (97) $ (16,767) ______________ (1) The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads. Beginning balance as of January 1, 2023 Total realized and unrealized gains (losses) Purchases Sales Settlements Transfer into Level 3 (1) Transfer out of Level 3 (1) Ending balance as of June 30, 2023 Total gains (losses) attributable to assets still held (Amounts in thousands) Included in net income Included in OCI Included in net income Included in OCI Fixed maturity securities: U.S. corporate $ 220,626 $ (21) $ 3 $ 21,000 $ (6,899) $ (12,408) $ — $ — $ 222,301 $ (16) $ (1,093) Non-U.S. corporate 95,154 (717) 1,458 3,759 (3,543) (23,387) — — 72,724 16 122 Other asset-backed 3,481 5 (10) 9,991 — (1) — (2,514) 10,952 5 (28) Total $ 319,261 $ (733) $ 1,451 $ 34,750 $ (10,442) $ (35,796) $ — $ (2,514) $ 305,977 $ 5 $ (999) (Amounts in thousands) Beginning balance as of January 1, 2022 Total realized and Purchases Sales Settlements Transfer into Level 3 (1) Transfer out of Level 3 (1) Ending balance as of June 30, 2022 Total gains Included Included Included in net income Included in OCI Fixed maturity securities: U.S. corporate $ 220,733 $ (28) $ (30,170) $ 39,969 $ — $ (440) $ — $ (13,410) $ 216,654 $ (28) $ (29,677) Non-U.S. corporate 83,664 (168) (9,270) 13,009 — (211) — (3,719) 83,305 (168) (8,975) Other asset-backed 24,223 — (1,567) 14,997 — — — (22,599) 15,054 — 57 Total $ 328,620 $ (196) $ (41,007) $ 67,975 $ — $ (651) $ — $ (39,728) $ 315,013 $ (196) $ (38,595) ______________ (1) The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads. Purchases, sales, issuances and settlements represent the activity that occurred during the period that results in a change of the asset but does not represent changes in fair value for the instruments held at the beginning of the period. The amount presented for realized and unrealized gains (losses) included in net income for fixed maturity securities primarily represents amortization and accretion of premiums and discounts on certain fixed maturity securities recorded within net investment income. The following table presents a summary of the significant unobservable inputs used for certain asset fair value measurements that are based on internal models and classified as Level 3 as of June 30, 2023: (Amounts in thousands) Valuation technique Fair value (1) Unobservable input Range (bps) Weighted- average (2) (bps) Fixed maturity securities: U.S. corporate Internal models $ 220,136 Credit spreads 64 - 263 146 Non-U.S. corporate Internal models $ 62,527 Credit spreads 92 - 197 147 ______________ (1) Certain classes of instruments classified as Level 3 are excluded as a result of not being material or due to limitations in being able to obtain the underlying inputs used by certain third-party sources, such as broker quotes, used as an input in determining fair value. (2) Unobservable inputs weighted by the relative fair value of the associated instrument. We have certain financial instruments that are not recorded at fair value, including cash and cash equivalents and accrued investment income, the carrying value of which approximate fair value due to the short-term nature of these instruments and are not included in this disclosure. Liabilities not required to be carried at fair value The following represents our estimated fair value of financial liabilities that are not required to be carried at fair value, classified as Level 2, as of the dates indicated: June 30, 2023 December 31, 2022 (Amounts in thousands) Carrying amount Fair value Carrying amount Fair value Long-term borrowings $ 744,100 $ 737,790 $ 742,830 $ 739,020 |
Loss reserves
Loss reserves | 6 Months Ended |
Jun. 30, 2023 | |
Insurance [Abstract] | |
Loss reserves | Loss reserves Activity for the liability for loss reserves for the six months ended June 30, is summarized as follows: (Amounts in thousands) 2023 2022 Loss reserves, beginning balance $ 519,008 $ 641,325 Reinsurance recoverable, beginning balance — — Run-off reserves (678) (681) Net loss reserves, beginning balance 518,330 640,644 Losses and LAE incurred related to current accident year 120,175 75,562 Losses and LAE incurred related to prior accident years (135,366) (147,558) Total incurred (1) (15,191) (71,996) Losses and LAE paid related to current accident year (359) (461) Losses and LAE paid related to prior accident years (13,689) (9,966) Total paid (1) (14,048) (10,427) Net loss reserves, ending balance 489,091 558,221 Reinsurance recoverable, ending balance 213 — Run-off reserves 899 673 Loss reserves, ending balance $ 490,203 $ 558,894 ______________ (1) Losses and loss adjustment expenses (“LAE”) incurred and paid exclude losses related to our run-off business. The liability for loss reserves represents our current best estimate; however, there may be future adjustments to this estimate and related assumptions. Such adjustments, reflecting any variety of new and adverse trends, could possibly be significant, and result in future increases to reserves by amounts that could be material to our results of operations, financial condition and liquidity. Losses incurred related to insured events of the current accident year relate to defaults that occurred in that year and represent the estimated ultimate amount of losses to be paid on such defaults. Losses incurred related to insured events of prior accident years represent the (favorable) or unfavorable development of reserves as a result of the actual rates at which delinquencies go to claim (“claim rates”) and claim amounts being different than those we estimated when originally establishing the reserves. Such estimates are based on our historical experience, which we believe is representative of expected future losses at the time of estimation. As a result of the extended period of time that may exist between the reporting of a delinquency and the claim payment, as well as changes in economic conditions and the real estate market, significant uncertainty and variability exist on amounts ultimately paid. A portion of delinquencies in the periods presented were from borrowers participating in deferred or reduced payments (“forbearance”) as a result of COVID-19. When establishing loss reserves for borrowers in forbearance from 2020 to 2022, we assumed a lower rate of delinquencies becoming active claims, which had the effect of producing a lower reserve compared to delinquencies that were not in forbearance. Historical experience with localized natural disasters, such as hurricanes, indicates a higher cure rate for borrowers in forbearance. Loss reserves recorded on these new delinquencies have a high degree of estimation due to the level of uncertainty regarding whether delinquencies in forbearance will ultimately cure or result in claim payments as well as the timing and severity of those payments. For the six months ended June 30, 2023, losses and LAE incurred of $120 million related to insured events of the current accident year was primarily attributable to new delinquencies compared to $76 million for the six months ended June 30, 2022. We also recorded favorable adjustments on prior accident year reserves of $133 million, which were driven primarily by cure performance of delinquencies from 2021 and earlier, including those related to COVID-19 as well as delinquencies from early 2022. During the peak of COVID-19, we experienced elevated new delinquencies subject to forbearance plans. Those delinquencies have continued to perform at levels above our reserve expectations. A portion of the reserve release also related to delinquencies from the first half of 2022, as uncertainty in the economic environment has not negatively impacted cure performance as expected. During the first six months of 2022, we released $146 million of reserves primarily related to COVID-19 delinquencies from 2020. |
Reinsurance
Reinsurance | 6 Months Ended |
Jun. 30, 2023 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Reinsurance | Reinsurance We reinsure a portion of our policy risks in order to reduce our ultimate losses, diversify our exposures and comply with regulatory requirements. We also assume certain policy risks written by other companies. Reinsurance does not relieve us from our obligations to policyholders. In the event that the reinsurers are unable to meet their obligations, we remain liable for the reinsured claims. We monitor both the financial condition of individual reinsurers and risk concentrations arising from similar geographic regions, activities and economic characteristics of reinsurers to lessen the risk of default by such reinsurers. The following table sets forth the effects of reinsurance on premiums written and earned for the periods indicated: Three months ended Six months ended (Amounts in thousands) 2023 2022 2023 2022 Net premiums written: Direct $ 245,160 $ 245,819 $ 486,099 $ 488,424 Assumed 256 66 315 134 Ceded (21,015) (20,129) (40,942) (38,431) Net premiums written $ 224,401 $ 225,756 $ 445,472 $ 450,127 Net premiums earned: Direct $ 259,279 $ 257,449 $ 514,255 $ 509,962 Assumed 256 66 315 134 Ceded (21,015) (20,129) (40,942) (38,431) Net premiums earned $ 238,520 $ 237,386 $ 473,628 $ 471,665 The difference between written premiums of $224.4 million and earned premiums of $238.5 million represents the decrease in unearned premiums for the three months ended June 30, 2023. The difference between written premiums of $445.5 million and earned premiums of $473.6 million represents the decrease in unearned premiums for the six months ended June 30, 2023. The decrease in unearned premiums was primarily the result of policy cancellations in our single premium mortgage insurance product. Excess-of-loss reinsurance We engage in excess-of-loss (“XOL”) insurance transactions either through a panel of traditional reinsurance providers or through collateralized reinsurance with unaffiliated special purpose insurers (“Triangle Re Entities”). During the respective coverage periods of these agreements, EMICO retains the first layer of aggregate loss exposure on covered policies while the reinsurer provides the second layer of coverage, up to the defined reinsurance coverage amount. EMICO retains losses in excess of the respective reinsurance coverage amount. The Triangle Re Entities fully collateralize their coverage by issuing insurance-linked notes (“ILNs”) to eligible capital market investors in unregistered private offerings. Traditional reinsurance providers collateralize a portion of their coverage by holding funds in trust. We believe that the risk transfer requirements for reinsurance accounting were met as these excess of loss insurance transactions assume significant insurance risk and a reasonable possibility of significant loss. EMICO has rights to terminate the ILNs or traditional XOL reinsurance agreements upon the occurrence of certain events. The following table presents the issue date, policy dates, initial and current first layer retained aggregate loss and initial and current reinsurance coverage amount under each reinsurance transaction. Current amounts are presented as of June 30, 2023: Mortgage insurance-linked notes (Amounts in millions) Issue date Policy dates Initial first layer retained loss Current first layer retained loss Initial reinsurance coverage Current reinsurance coverage Triangle Re 2020-1 Ltd. 10/22/2020 1/01/2020 - 8/31/2020 $522 $521 $350 $28 Triangle Re 2021-1 Ltd. 3/02/2021 1/01/2014 - 12/31/2018, 10/01/2019 - 12/31/2019 $212 $212 $495 $105 Triangle Re 2021-2 Ltd. 4/16/2021 9/01/2020 - 12/31/2020 $189 $188 $303 $209 Triangle Re 2021-3 Ltd. 9/02/2021 1/01/2021 - 6/30/2021 $304 $303 $372 $303 Total $645 Traditional excess-of-loss reinsurance (Amounts in millions) Issue date Policy dates Initial first layer retained loss Current first layer retained loss Initial reinsurance coverage Current reinsurance coverage 2020 XOL 1/01/2020 1/01/2020 - 12/31/2020 $691 $690 $168 $34 2021 XOL 2/04/2021 1/01/2021 - 12/31/2021 $671 $671 $206 $163 2022-1 XOL 1/27/2022 1/01/2022 - 12/31/2022 $462 $462 $196 $196 2022-2 XOL 1/27/2022 1/01/2022 - 12/31/2022 $385 $385 $25 $25 2022-3 XOL 3/24/2022 7/01/2021 - 12/31/2021 $317 $316 $289 $275 2022-4 XOL 3/24/2022 7/01/2021 - 12/31/2021 $264 $264 $36 $36 2022-5 XOL 9/15/2022 1/01/2022 - 6/30/2022 $256 $256 $201 $193 2023-1 XOL 3/08/2023 1/01/2023 - 12/31/2023 $210 $210 $92 $92 Total $1,014 On March 8, 2023, we executed an excess of loss reinsurance transaction with a panel of reinsurers, which provides up to $180 million of reinsurance coverage on a portion of current and expected new insurance written for the 2023 book year, effective January 1, 2023. Quota Share Reinsurance On June 30, 2023, EMICO engaged in a quota share reinsurance agreement with a panel of third-party reinsurers. Under the agreement, we cede premiums earned on all eligible policies in exchange for reimbursement of ceded claims and claims expenses on covered policies, a specific ceding commission and profit commission determined based on ceded claims. EMICO has rights to terminate the reinsurance agreement upon the occurrence of certain events. Reinsurance recoverables are recorded in Other assets on the consolidated balance sheets. Agreement Issue date Policy dates Ceding percentage Ceding commission Profit commission QS 2023-1 6/30/2023 1/01/2023 - 12/31/2023 13.125% 20% up to 55% |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings In 2020, we issued $750 million aggregate principal amount of 6.5% senior notes due in 2025 (the “2025 Senior Notes”). Interest on the 2025 Senior Notes is payable semi-annually in arrears on February 15 and August 15 of each year. The 2025 Senior Notes mature on August 15, 2025. The following table sets forth long-term borrowings as of the dates indicated: (Amounts in thousands) June 30, December 31, 6.5% Senior Notes, due 2025 $ 750,000 $ 750,000 Deferred borrowing charges (5,900) (7,170) Total $ 744,100 $ 742,830 Revolving Credit Agreement On June 30, 2022, we entered into a credit agreement with a syndicate of lenders that provides for a five-year, unsecured revolving credit facility (the “Facility”) in the initial aggregate principal amount of $200 million, including the ability for EHI to increase the commitments under the Facility, on an uncommitted basis, by an additional aggregate principal amount of up to $100 million. Borrowings under the Facility will accrue interest at a floating rate tied to a standard short-term borrowing index, selected at EHI’s option, plus an applicable margin. The applicable margin is based on the ratings established by certain debt rating agencies for EHI’s senior unsecured debt. |
Income taxes
Income taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes We compute the provision for income taxes on a separate return with benefits-for-loss method. If during the three- and six-month periods ended June 30, 2023 and 2022, we had computed taxes using the separate return method, the provision for income taxes would have been unchanged. |
Related party transactions
Related party transactions | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related party transactions | Related party transactions We have various agreements with Genworth that provide for reimbursement to and from Genworth of certain administrative and operating expenses that include, but are not limited to, information technology services and administrative services (such as finance, human resources and employee benefit administration). These agreements provide for an allocation of corporate expenses to all Genworth businesses or subsidiaries. We incurred costs for these services of $4.5 million and $7.5 million for the three months ended June 30, 2023 and 2022, respectively. We incurred costs for these services of $9.2 million and $15.3 million for the six months ended June 30, 2023 and 2022, respectively. The investment portfolios of our insurance subsidiaries are managed by Genworth. Under the terms of the investment management agreement, we are charged a fee by Genworth. All fees paid to Genworth are charged to investment expense and are included in net investment income in the condensed consolidated statements of income. The total investment expenses paid to Genworth were $1.7 million and $1.4 million for the three months ended June 30, 2023 and 2022, respectively. The total investment expenses paid to Genworth were $3.3 million and $2.8 million for the six months ended June 30, 2023 and 2022, respectively. Our employees participate in certain benefit plans sponsored by Genworth and certain share-based compensation plans that utilize shares of Genworth common stock and other incentive plans. We provide certain information technology and administrative services (such as facilities and maintenance) to Genworth. We charged Genworth $0.1 million and $0.2 million for these services for the three months ended June 30, 2023 and 2022, respectively. We charged Genworth $0.2 million and $0.4 million for these services for the six months ended June 30, 2023 and 2022, respectively. We have a tax sharing agreement in place with Genworth, such that we participate in a single U.S. consolidated income tax return filing. All intercompany balances related to this agreement are settled at least annually. The condensed consolidated financial statements include the following amounts due to and from Genworth relating to recurring service and expense agreements as of: (Amounts in thousands) June 30, 2023 December 31, 2022 Amounts payable to Genworth $ 11,618 $ 9,291 Amounts receivable from Genworth $ 153 $ 167 |
Net income per common share
Net income per common share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net income per common share | Net income per common share The basic earnings per share computation is based on the weighted average number of shares of common stock outstanding. For the six months ended June 30, 2023 and 2022, the calculation of dilutive weighted average shares considers the impact of restricted stock units and performance stock units issued to employees as well as deferred stock units issued to our directors. The calculation of basic and diluted net income per share is as follows: Three months ended Six months ended (Amounts in thousands, except per share amounts) 2023 2022 2023 2022 Net income available to EHI common stockholders $ 168,020 $ 204,735 $ 344,008 $ 369,365 Net income per common share: Basic $ 1.04 $ 1.26 $ 2.13 $ 2.27 Diluted $ 1.04 $ 1.25 $ 2.11 $ 2.26 Weighted average common shares outstanding: Basic 161,318 162,842 161,880 162,842 Diluted 162,171 163,225 162,675 163,140 |
Changes in accumulated other co
Changes in accumulated other comprehensive income | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Changes in accumulated other comprehensive income | Changes in accumulated other comprehensive income The following tables present a roll forward of accumulated other comprehensive income for the three months indicated: (Amounts in thousands) Net unrealized Foreign currency translation Total Balance as of April 1, 2023, net of tax $ (320,386) $ 144 $ (320,242) Other comprehensive income (loss) before reclassifications (35,261) (1) (35,262) Amounts reclassified from other comprehensive income (loss) 10,261 — 10,261 Total other comprehensive income (loss) (25,000) (1) (25,001) Balance as of June 30, 2023, net of tax $ (345,386) $ 143 $ (345,243) (Amounts in thousands) Net unrealized Foreign currency translation Total Balance as of April 1, 2022, net of tax $ (140,712) $ 22 $ (140,690) Other comprehensive income (loss) before reclassifications (152,702) 64 (152,638) Amounts reclassified from other comprehensive income (loss) 301 — 301 Total other comprehensive income (loss) (152,401) 64 (152,337) Balance as of June 30, 2022, net of tax $ (293,113) $ 86 $ (293,027) The following tables present a roll forward of accumulated other comprehensive income for the six months indicated: (Amounts in thousands) Net unrealized investment gains (losses) Foreign currency translation Total Balance as of January 1, 2023, net of tax $ (382,896) $ 152 $ (382,744) Other comprehensive income (loss) before reclassifications 27,153 (9) 27,144 Amounts reclassified from other comprehensive income (loss) 10,357 — 10,357 Total other comprehensive income (loss) 37,510 (9) 37,501 Balance as of June 30, 2023, net of tax $ (345,386) $ 143 $ (345,243) (Amounts in thousands) Net unrealized Foreign currency translation Total Balance as of January 1, 2022, net of tax $ 83,588 $ (7) $ 83,581 Other comprehensive income (loss) before reclassifications (377,406) 93 (377,313) Amounts reclassified from other comprehensive income (loss) 705 — 705 Total other comprehensive income (loss) (376,701) 93 (376,608) Balance as of June 30, 2022, net of tax $ (293,113) $ 86 $ (293,027) The following table presents the effect of the reclassifications of significant items out of accumulated other comprehensive income on the respective line items of the consolidated statements of income, for the periods indicated: Amount reclassified from accumulated other comprehensive income Affected line item in the condensed consolidated statements of income Three months ended Six months ended (Amounts in thousands) 2023 2022 2023 2022 Net unrealized gains (losses) on investments $ (12,988) $ (381) $ (13,110) $ (893) Net investment gains (losses) Benefit (expense) from income taxes 2,727 80 2,753 188 Provision for income taxes |
Stockholders' equity
Stockholders' equity | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Stockholders' equity | Stockholders’ equity Share Repurchase Program On November 1, 2022, our Board of Directors approved a share repurchase program authorizing the Company to spend up to $75 million, excluding commissions, to repurchase EHI common stock in the open market or in privately negotiated transactions, based on market and business conditions, stock price and other factors. EHI generally operates its share repurchase programs pursuant to a trading plan under Rule 10b5-1 of the Exchange Act, which permits the Company to purchase shares, at predetermined price targets, when it may otherwise be precluded from doing so. During the three months ended June 30, 2023, the Company purchased 1,705,169 shares at an average price of $24.13 per share, including commissions. During the six months ended June 30, 2023, the Company purchased 2,621,945 shares at an average price of $24.15 per share, including commissions. As of June 30, 2023, $10.1 million remained available under this program. All treasury stock has been retired as of June 30, 2023. Subsequent to quarter end, the Company purchased 241,946 shares at an average price of $25.96 through July 31, 2023. In August 2023, we announced a new share repurchase authorization which allows for the purchase of an additional $100 million of EHI common stock. Cash Dividends We paid a quarterly cash dividend of $0.16 per share in the second quarter of 2023. In the first quarter of 2023 and the second quarter of 2022, we paid a dividends of $0.14 per share. |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Accounting changes (Policies)
Accounting changes (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Accounting Pronouncements Recently Adopted and Accounting Pronouncements Not Yet Adopted | Accounting Pronouncements Recently Adopted We have not adopted new accounting pronouncements in 2023. Accounting Pronouncements Not Yet Adopted There are no significant new accounting pronouncements impacting our financial statements. |
Recurring fair value measurements | We hold fixed maturity securities and short-term investments, which are carried at fair value. The fair value of fixed maturity securities and short-term investments are estimated primarily based on information derived from third-party pricing services (“pricing services”), internal models and/or broker quotes, which use a market approach, income approach or a combination of the market and income approach depending on the type of instrument and availability of information. In general, a market approach is utilized if there is readily available and relevant market activity for an individual security. In certain cases where market information is not available for a specific security but is available for similar securities, that security is valued using market information for similar securities, which is also a market approach. When market information is not available for a specific security (or similar securities) or is available but such information is less relevant or reliable, an income approach or a combination of a market and income approach is utilized. For securities with optionality, such as call or prepayment features (including asset-backed securities), an income or combination approach may be used. These valuation techniques may change from period to period, based on the relevance and availability of market data. Further, while we consider the valuations provided by pricing services and broker quotes to be of high quality, management determines the fair value of our investment securities after considering all relevant and available information. In general, we first obtain valuations from pricing services. If prices are unavailable for public securities, we obtain broker quotes. For all securities, excluding certain private fixed maturity securities, if neither a pricing service nor broker quotes valuation is available, we determine fair value using internal models. For certain private fixed maturity securities where we do not obtain valuations from pricing services, we utilize an internal model to determine fair value since transactions for similar securities are not readily observable and these securities are not typically valued by pricing services. Given our understanding of the pricing methodologies and procedures of pricing services, the securities valued by pricing services are typically classified as Level 2 unless we determine the valuation process for a security or group of securities utilizes significant unobservable inputs, which would result in the valuation being classified as Level 3. Broker quotes are typically based on an income approach given the lack of available market data. As the valuation typically includes significant unobservable inputs, we classify the securities where fair value is based on our consideration of broker quotes as Level 3 measurements. For private fixed maturity securities, we utilize an income approach where we obtain public bond spreads and utilize those in an internal model to determine fair value. Other inputs to the model include rating and weighted-average life, as well as sector which is used to assign the spread. We then add an additional premium, which represents an unobservable input, to the public bond spread to adjust for the liquidity and other features of our private placements. We utilize the estimated market yield to discount the expected cash flows of the security to determine fair value. We utilize price caps for securities where the estimated market yield results in a valuation that may exceed the amount that would be received in a market transaction. When a security does not have an external rating, we assign the security an internal rating to determine the appropriate public bond spread that should be utilized in the valuation. While we generally consider the public bond spreads by sector and maturity to be observable inputs, we evaluate the similarities of our private placement with the public bonds, any price caps utilized, liquidity premiums applied, and whether external ratings are available for our private placements to determine whether the spreads utilized would be considered observable inputs. We classify private securities without an external rating or public bond spread as Level 3. In general, a significant increase (decrease) in credit spreads would have resulted in a significant decrease (increase) in the fair value for our fixed maturity securities as of June 30, 2023. For remaining securities priced using internal models, we determine fair value using an income approach. We maximize the use of observable inputs but typically utilize significant unobservable inputs to determine fair value. Accordingly, the valuations are typically classified as Level 3. |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary Investment Income | Sources of net investment income were as follows for the periods indicated: Three months ended Six months ended (Amounts in thousands) 2023 2022 2023 2022 Fixed maturity securities available-for-sale $ 44,542 $ 36,810 $ 85,917 $ 73,344 Cash, cash equivalents and short-term investments 7,955 422 13,575 432 Gross investment income before expenses and fees 52,497 37,232 99,492 73,776 Investment expenses and fees (1,582) (1,456) (3,236) (2,854) Net investment income $ 50,915 $ 35,776 $ 96,256 $ 70,922 |
Summary of Net Investment Gains (Losses) | The following table sets forth net investment gains (losses) for the periods indicated: Three months ended Six months ended (Amounts in thousands) 2023 2022 2023 2022 Fixed maturity securities available-for-sale: Gross realized gains $ 20 $ 291 $ 20 $ 641 Gross realized (losses) (13,008) (672) (13,130) (1,534) Net realized gains (losses) (12,988) (381) (13,110) (893) Net change in allowance for credit losses on commitment (13) — (13) 173 Net investment gains (losses) $ (13,001) $ (381) $ (13,123) $ (720) |
Schedule of Unrealized Gain (Loss) on Investments | Net unrealized gains and losses on available-for-sale securities reflected as a separate component of accumulated other comprehensive income (“AOCI”) were as follows as of the dates indicated: (Amounts in thousands) June 30, 2023 December 31, 2022 Net unrealized gains (losses) on investment securities: Fixed maturity securities $ (439,223) $ (486,913) Short-term investments (12) (30) Unrealized gains (losses) on investment securities (439,235) (486,943) Income taxes 93,849 104,047 Net unrealized investment gains (losses) $ (345,386) $ (382,896) The change in net unrealized gains (losses) on available-for-sale securities reported in accumulated other comprehensive income was as follows as of and for the periods indicated: Three months ended (Amounts in thousands) 2023 2022 Beginning balance $ (320,386) $ (140,712) Unrealized gains (losses) arising during the period: Unrealized gains (losses) on investment securities (44,767) (193,949) Provision for income taxes 9,506 41,247 Change in unrealized gains (losses) on investment securities (35,261) (152,702) Reclassification adjustments to net investment (gains) losses, net of taxes of $(2,727) and $(80), respectively 10,261 301 Change in net unrealized investment gains (losses) (25,000) (152,401) Ending balance $ (345,386) $ (293,113) Six months ended (Amounts in thousands) 2023 2022 Beginning balance $ (382,896) $ 83,588 Unrealized gains (losses) arising during the period: Unrealized gains (losses) on investment securities 34,599 (479,350) Provision for income taxes (7,446) 101,944 Change in unrealized gains (losses) on investment securities 27,153 (377,406) Reclassification adjustments to net investment (gains) losses, net of taxes of $(2,753) and $(188), respectively 10,357 705 Change in net unrealized investment gains (losses) 37,510 (376,701) Ending balance $ (345,386) $ (293,113) |
Summary of Fixed Maturity Securities Classified as Available-for-Sale | As of June 30, 2023, the amortized cost, gross unrealized gains (losses) and fair value of our investment securities were as follows: (Amounts in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value U.S. government, agencies and GSEs $ 112,190 $ 67 $ (1,719) $ 110,538 State and political subdivisions 510,288 1,735 (85,495) 426,528 Non-U.S. government 12,382 — (1,176) 11,206 U.S. corporate 2,728,245 1,468 (220,234) 2,509,479 Non-U.S. corporate 696,177 344 (56,471) 640,050 Residential mortgage-backed 9,647 1 (174) 9,474 Other asset-backed 1,285,333 494 (78,063) 1,207,764 Total fixed maturity securities available-for-sale $ 5,354,262 $ 4,109 $ (443,332) $ 4,915,039 Short-term investments 10,861 — (12) 10,849 Total investments $ 5,365,123 $ 4,109 $ (443,344) $ 4,925,888 As of December 31, 2022, the amortized cost, gross unrealized gains (losses) and fair value of our investment securities were as follows: (Amounts in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value U.S. government, agencies and GSEs $ 46,319 $ 59 $ (1,609) $ 44,769 State and political subdivisions 515,935 1,815 (97,894) 419,856 Non-U.S. government 10,607 — (1,258) 9,349 U.S. corporate 2,886,269 1,355 (240,761) 2,646,863 Non-U.S. corporate 716,333 158 (63,647) 652,844 Residential mortgage-backed 11,162 — (119) 11,043 Other asset-backed 1,185,048 462 (85,474) 1,100,036 Total fixed maturity securities available-for-sale $ 5,371,673 $ 3,849 $ (490,762) $ 4,884,760 Short-term investments 3,077 — (30) 3,047 Total investments $ 5,374,750 $ 3,849 $ (490,792) $ 4,887,807 |
Schedule of Unrealized Losses and FV of Fixed Maturity Securities Available for Sale | The following table presents the gross unrealized losses and fair values of our fixed maturity securities for which an allowance for credit losses has not been recorded, aggregated by investment type and length of time that individual fixed maturity securities have been in a continuous unrealized loss position, as of June 30, 2023: Less than 12 months 12 months or more Total (Amounts in thousands) Fair value Gross unrealized losses Number of securities Fair value Gross unrealized losses Number of securities Fair value Gross unrealized losses Number of securities Fixed maturity securities: U.S. government, agencies and GSEs $ 77,177 $ (418) 20 $ 32,550 $ (1,301) 13 $ 109,727 $ (1,719) 33 State and political subdivisions 1,423 (29) 2 405,608 (85,466) 86 407,031 (85,495) 88 Non-U.S. government 1,846 (1) 1 9,360 (1,175) 1 11,206 (1,176) 2 U.S. corporate 825,996 (25,319) 261 1,578,403 (194,915) 291 2,404,399 (220,234) 552 Non-U.S. corporate 183,459 (4,240) 63 425,132 (52,231) 85 608,591 (56,471) 148 Residential mortgage-backed 8,533 (174) 5 — — — 8,533 (174) 5 Other asset-backed 316,247 (5,395) 118 808,242 (72,668) 182 1,124,489 (78,063) 300 Total for fixed maturity securities in an unrealized loss position $ 1,414,681 $ (35,576) 470 $ 3,259,295 $ (407,756) 658 $ 4,673,976 $ (443,332) 1,128 The following table presents the gross unrealized losses and fair values of our fixed maturity securities, aggregated by investment type and length of time that individual fixed maturity securities have been in a continuous unrealized loss position, as of December 31, 2022: Less than 12 months 12 months or more Total (Amounts in thousands) Fair value Gross unrealized losses Number of securities Fair value Gross unrealized losses Number of securities Fair value Gross unrealized losses Number of securities Fixed maturity securities: U.S. government, agencies and GSEs $ 43,873 $ (1,600) 18 $ 96 $ (9) 1 $ 43,969 $ (1,609) 19 State and political subdivisions 203,752 (40,988) 43 196,235 (56,906) 46 399,987 (97,894) 89 Non-U.S. government — — — 9,349 (1,258) 1 9,349 (1,258) 1 U.S. corporate 2,033,713 (131,150) 468 568,171 (109,611) 92 2,601,884 (240,761) 560 Non-U.S. corporate 486,117 (35,515) 125 155,345 (28,132) 27 641,462 (63,647) 152 Residential mortgage-backed 11,043 (119) 6 — — — 11,043 (119) 6 Other asset-backed 655,525 (31,684) 217 375,810 (53,790) 71 1,031,335 (85,474) 288 Total for fixed maturity securities in an unrealized loss position $ 3,434,023 $ (241,056) 877 $ 1,305,006 $ (249,706) 238 $ 4,739,029 $ (490,762) 1,115 The scheduled maturity distribution of fixed maturity securities as of June 30, 2023, is set forth below. Actual maturities may differ from contractual maturities because issuers of securities may have the right to call or prepay obligations with or without call or prepayment penalties. (Amounts in thousands) Amortized cost Fair value Due one year or less $ 254,992 $ 250,690 Due after one year through five years 2,049,802 1,901,357 Due after five years through ten years 1,478,171 1,296,200 Due after ten years 276,317 249,554 Subtotal 4,059,282 3,697,801 Residential mortgage-backed 9,647 9,474 Other asset-backed 1,285,333 1,207,764 Total fixed maturity securities available-for-sale $ 5,354,262 $ 4,915,039 |
Fair value (Tables)
Fair value (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Summary of Significant Inputs used for Fair Value Measurement of Fixed Maturity Securities | The following table presents a summary of the significant inputs used by our pricing services for certain fair value measurements of fixed maturity securities that are classified as Level 2 as of June 30, 2023: (Amounts in thousands) Fair value Primary methodologies Significant inputs U.S. government, agencies and GSEs $ 110,538 Price quotes from trading desk, broker feeds Bid side prices, trade prices, Option Adjusted Spread (“OAS”) to swap curve, Bond Market Association OAS, Treasury Curve, Agency Bullet Curve, maturity to issuer spread State and political subdivisions $ 426,528 Multi-dimensional attribute-based modeling systems, third-party pricing vendors Trade prices, material event notices, Municipal Market Data benchmark yields, broker quotes Non-U.S. government $ 11,206 Matrix pricing, spread priced to benchmark curves, price quotes from market makers Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources U.S. corporate $ 2,105,532 Multi-dimensional attribute-based modeling systems, broker quotes, price quotes from market makers, internal models, OAS-based models Bid side prices to Treasury Curve, Issuer Curve, which includes sector, quality, duration, OAS percentage and change for spread matrix, trade prices, comparative transactions, Trade Reporting and Compliance Engine (“TRACE”) reports Non-U.S. corporate $ 495,138 Multi-dimensional attribute-based modeling systems, OAS-based models, price quotes from market makers Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources Residential mortgage-backed $ 9,474 OAS-based models, single factor binomial models, internally priced Prepayment and default assumptions, aggregation of bonds with similar characteristics, including collateral type, vintage, tranche type, weighted-average life, weighted-average loan age, issuer program and delinquency ratio, pay up and pay down factors, TRACE reports Other asset-backed $ 1,196,812 Multi-dimensional attribute-based modeling systems, spread matrix priced to swap curves, price quotes from market makers Spreads to daily updated swap curves, spreads derived from trade prices and broker quotes, bid side prices, new issue data, collateral performance, analysis of prepayment speeds, cash flows, collateral loss analytics, historical issue analysis, trade data from market makers, TRACE reports |
Schedule of Fair Value Assets Measured on Recurring Basis | The following tables set forth our assets by class of instrument that are measured at fair value on a recurring basis as of the dates indicated: June 30, 2023 (Amounts in thousands) Total Level 1 Level 2 Level 3 Fixed maturity securities: U.S. government, agencies and GSEs $ 110,538 $ — $ 110,538 $ — State and political subdivisions 426,528 — 426,528 — Non-U.S. government 11,206 — 11,206 — U.S. corporate 2,509,479 — 2,287,178 222,301 Non-U.S. corporate 640,050 — 567,326 72,724 Residential mortgage-backed 9,474 — 9,474 — Other asset-backed 1,207,764 — 1,196,812 10,952 Total fixed maturity securities 4,915,039 — 4,609,062 305,977 Short-term investments 10,849 — 10,849 — Total $ 4,925,888 $ — $ 4,619,911 $ 305,977 December 31, 2022 (Amounts in thousands) Total Level 1 Level 2 Level 3 Fixed maturity securities: U.S. government, agencies and GSEs $ 44,769 $ — $ 44,769 $ — State and political subdivisions 419,856 — 419,856 — Non-U.S. government 9,349 — 9,349 — U.S. corporate 2,646,863 — 2,426,237 220,626 Non-U.S. corporate 652,844 — 557,690 95,154 Residential mortgage-backed 11,043 — 11,043 — Other asset-backed 1,100,036 — 1,096,555 3,481 Total fixed maturity securities 4,884,760 — 4,565,499 319,261 Short-term investments 3,047 — 3,047 — Total $ 4,887,807 $ — $ 4,568,546 $ 319,261 |
Schedule of Fair Value Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables present additional information about assets measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value as of or for the dates indicated: Beginning balance as of April 1, 2023 Total realized and unrealized gains (losses) Purchases Sales Settlements Transfer into Level 3 (1) Transfer out of Level 3 (1) Ending balance as of June 30, 2023 Total gains (losses) attributable to assets still held (Amounts in thousands) Included in net income Included in OCI Included in net income Included in OCI Fixed maturity securities: U.S. corporate $ 216,330 $ (8) $ (4,021) $ 18,000 $ — $ (8,000) $ — $ — $ 222,301 $ (7) $ (4,842) Non-U.S. corporate 74,131 8 (1,309) — — (106) — — 72,724 8 (1,310) Other asset-backed 984 2 (24) 9,991 — (1) — — 10,952 2 (24) Total $ 291,445 $ 2 $ (5,354) $ 27,991 $ — $ (8,107) $ — $ — $ 305,977 $ 3 $ (6,176) Beginning balance as of April 1, 2022 Total realized and unrealized gains (losses) Purchases Sales Settlements Transfer into Level 3 (1) Transfer out of Level 3 (1) Ending balance as of June 30, 2022 Total gains (losses) attributable to assets still held (Amounts in thousands) Included in net income Included in OCI Included in net income Included in OCI Fixed maturity securities: U.S. corporate $ 243,463 $ (13) $ (13,386) $ — $ — $ — $ — $ (13,410) $ 216,654 $ (13) $ (12,893) Non-U.S. corporate 84,418 (84) (3,933) 3,009 — (105) — — 83,305 (84) (3,931) Other asset-backed — — 57 14,997 — — — — 15,054 — 57 Total $ 327,881 $ (97) $ (17,262) $ 18,006 $ — $ (105) $ — $ (13,410) $ 315,013 $ (97) $ (16,767) ______________ (1) The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads. Beginning balance as of January 1, 2023 Total realized and unrealized gains (losses) Purchases Sales Settlements Transfer into Level 3 (1) Transfer out of Level 3 (1) Ending balance as of June 30, 2023 Total gains (losses) attributable to assets still held (Amounts in thousands) Included in net income Included in OCI Included in net income Included in OCI Fixed maturity securities: U.S. corporate $ 220,626 $ (21) $ 3 $ 21,000 $ (6,899) $ (12,408) $ — $ — $ 222,301 $ (16) $ (1,093) Non-U.S. corporate 95,154 (717) 1,458 3,759 (3,543) (23,387) — — 72,724 16 122 Other asset-backed 3,481 5 (10) 9,991 — (1) — (2,514) 10,952 5 (28) Total $ 319,261 $ (733) $ 1,451 $ 34,750 $ (10,442) $ (35,796) $ — $ (2,514) $ 305,977 $ 5 $ (999) (Amounts in thousands) Beginning balance as of January 1, 2022 Total realized and Purchases Sales Settlements Transfer into Level 3 (1) Transfer out of Level 3 (1) Ending balance as of June 30, 2022 Total gains Included Included Included in net income Included in OCI Fixed maturity securities: U.S. corporate $ 220,733 $ (28) $ (30,170) $ 39,969 $ — $ (440) $ — $ (13,410) $ 216,654 $ (28) $ (29,677) Non-U.S. corporate 83,664 (168) (9,270) 13,009 — (211) — (3,719) 83,305 (168) (8,975) Other asset-backed 24,223 — (1,567) 14,997 — — — (22,599) 15,054 — 57 Total $ 328,620 $ (196) $ (41,007) $ 67,975 $ — $ (651) $ — $ (39,728) $ 315,013 $ (196) $ (38,595) ______________ (1) The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads. The following table presents a summary of the significant unobservable inputs used for certain asset fair value measurements that are based on internal models and classified as Level 3 as of June 30, 2023: (Amounts in thousands) Valuation technique Fair value (1) Unobservable input Range (bps) Weighted- average (2) (bps) Fixed maturity securities: U.S. corporate Internal models $ 220,136 Credit spreads 64 - 263 146 Non-U.S. corporate Internal models $ 62,527 Credit spreads 92 - 197 147 ______________ (1) Certain classes of instruments classified as Level 3 are excluded as a result of not being material or due to limitations in being able to obtain the underlying inputs used by certain third-party sources, such as broker quotes, used as an input in determining fair value. |
Schedule of Estimated Fair Value Liabilities | The following represents our estimated fair value of financial liabilities that are not required to be carried at fair value, classified as Level 2, as of the dates indicated: June 30, 2023 December 31, 2022 (Amounts in thousands) Carrying amount Fair value Carrying amount Fair value Long-term borrowings $ 744,100 $ 737,790 $ 742,830 $ 739,020 |
Loss reserves (Tables)
Loss reserves (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Insurance [Abstract] | |
Schedule of Liability for Loss Reserves | Activity for the liability for loss reserves for the six months ended June 30, is summarized as follows: (Amounts in thousands) 2023 2022 Loss reserves, beginning balance $ 519,008 $ 641,325 Reinsurance recoverable, beginning balance — — Run-off reserves (678) (681) Net loss reserves, beginning balance 518,330 640,644 Losses and LAE incurred related to current accident year 120,175 75,562 Losses and LAE incurred related to prior accident years (135,366) (147,558) Total incurred (1) (15,191) (71,996) Losses and LAE paid related to current accident year (359) (461) Losses and LAE paid related to prior accident years (13,689) (9,966) Total paid (1) (14,048) (10,427) Net loss reserves, ending balance 489,091 558,221 Reinsurance recoverable, ending balance 213 — Run-off reserves 899 673 Loss reserves, ending balance $ 490,203 $ 558,894 ______________ (1) Losses and loss adjustment expenses (“LAE”) incurred and paid exclude losses related to our run-off business. |
Reinsurance (Tables)
Reinsurance (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Effects of Reinsurance | The following table sets forth the effects of reinsurance on premiums written and earned for the periods indicated: Three months ended Six months ended (Amounts in thousands) 2023 2022 2023 2022 Net premiums written: Direct $ 245,160 $ 245,819 $ 486,099 $ 488,424 Assumed 256 66 315 134 Ceded (21,015) (20,129) (40,942) (38,431) Net premiums written $ 224,401 $ 225,756 $ 445,472 $ 450,127 Net premiums earned: Direct $ 259,279 $ 257,449 $ 514,255 $ 509,962 Assumed 256 66 315 134 Ceded (21,015) (20,129) (40,942) (38,431) Net premiums earned $ 238,520 $ 237,386 $ 473,628 $ 471,665 |
Schedule of Retained Aggregate Loss and Reinsurance Coverage | The following table presents the issue date, policy dates, initial and current first layer retained aggregate loss and initial and current reinsurance coverage amount under each reinsurance transaction. Current amounts are presented as of June 30, 2023: Mortgage insurance-linked notes (Amounts in millions) Issue date Policy dates Initial first layer retained loss Current first layer retained loss Initial reinsurance coverage Current reinsurance coverage Triangle Re 2020-1 Ltd. 10/22/2020 1/01/2020 - 8/31/2020 $522 $521 $350 $28 Triangle Re 2021-1 Ltd. 3/02/2021 1/01/2014 - 12/31/2018, 10/01/2019 - 12/31/2019 $212 $212 $495 $105 Triangle Re 2021-2 Ltd. 4/16/2021 9/01/2020 - 12/31/2020 $189 $188 $303 $209 Triangle Re 2021-3 Ltd. 9/02/2021 1/01/2021 - 6/30/2021 $304 $303 $372 $303 Total $645 Traditional excess-of-loss reinsurance (Amounts in millions) Issue date Policy dates Initial first layer retained loss Current first layer retained loss Initial reinsurance coverage Current reinsurance coverage 2020 XOL 1/01/2020 1/01/2020 - 12/31/2020 $691 $690 $168 $34 2021 XOL 2/04/2021 1/01/2021 - 12/31/2021 $671 $671 $206 $163 2022-1 XOL 1/27/2022 1/01/2022 - 12/31/2022 $462 $462 $196 $196 2022-2 XOL 1/27/2022 1/01/2022 - 12/31/2022 $385 $385 $25 $25 2022-3 XOL 3/24/2022 7/01/2021 - 12/31/2021 $317 $316 $289 $275 2022-4 XOL 3/24/2022 7/01/2021 - 12/31/2021 $264 $264 $36 $36 2022-5 XOL 9/15/2022 1/01/2022 - 6/30/2022 $256 $256 $201 $193 2023-1 XOL 3/08/2023 1/01/2023 - 12/31/2023 $210 $210 $92 $92 Total $1,014 |
Quota Share Reinsurance Ceding Percentage, Ceding Commission, And Profit Commission | EMICO has rights to terminate the reinsurance agreement upon the occurrence of certain events. Reinsurance recoverables are recorded in Other assets on the consolidated balance sheets. Agreement Issue date Policy dates Ceding percentage Ceding commission Profit commission QS 2023-1 6/30/2023 1/01/2023 - 12/31/2023 13.125% 20% up to 55% |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Borrowings | The following table sets forth long-term borrowings as of the dates indicated: (Amounts in thousands) June 30, December 31, 6.5% Senior Notes, due 2025 $ 750,000 $ 750,000 Deferred borrowing charges (5,900) (7,170) Total $ 744,100 $ 742,830 |
Related party transactions (Tab
Related party transactions (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The condensed consolidated financial statements include the following amounts due to and from Genworth relating to recurring service and expense agreements as of: (Amounts in thousands) June 30, 2023 December 31, 2022 Amounts payable to Genworth $ 11,618 $ 9,291 Amounts receivable from Genworth $ 153 $ 167 |
Net income per common share (Ta
Net income per common share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Income Per Share | The calculation of basic and diluted net income per share is as follows: Three months ended Six months ended (Amounts in thousands, except per share amounts) 2023 2022 2023 2022 Net income available to EHI common stockholders $ 168,020 $ 204,735 $ 344,008 $ 369,365 Net income per common share: Basic $ 1.04 $ 1.26 $ 2.13 $ 2.27 Diluted $ 1.04 $ 1.25 $ 2.11 $ 2.26 Weighted average common shares outstanding: Basic 161,318 162,842 161,880 162,842 Diluted 162,171 163,225 162,675 163,140 |
Changes in accumulated other _2
Changes in accumulated other comprehensive income (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables present a roll forward of accumulated other comprehensive income for the three months indicated: (Amounts in thousands) Net unrealized Foreign currency translation Total Balance as of April 1, 2023, net of tax $ (320,386) $ 144 $ (320,242) Other comprehensive income (loss) before reclassifications (35,261) (1) (35,262) Amounts reclassified from other comprehensive income (loss) 10,261 — 10,261 Total other comprehensive income (loss) (25,000) (1) (25,001) Balance as of June 30, 2023, net of tax $ (345,386) $ 143 $ (345,243) (Amounts in thousands) Net unrealized Foreign currency translation Total Balance as of April 1, 2022, net of tax $ (140,712) $ 22 $ (140,690) Other comprehensive income (loss) before reclassifications (152,702) 64 (152,638) Amounts reclassified from other comprehensive income (loss) 301 — 301 Total other comprehensive income (loss) (152,401) 64 (152,337) Balance as of June 30, 2022, net of tax $ (293,113) $ 86 $ (293,027) The following tables present a roll forward of accumulated other comprehensive income for the six months indicated: (Amounts in thousands) Net unrealized investment gains (losses) Foreign currency translation Total Balance as of January 1, 2023, net of tax $ (382,896) $ 152 $ (382,744) Other comprehensive income (loss) before reclassifications 27,153 (9) 27,144 Amounts reclassified from other comprehensive income (loss) 10,357 — 10,357 Total other comprehensive income (loss) 37,510 (9) 37,501 Balance as of June 30, 2023, net of tax $ (345,386) $ 143 $ (345,243) (Amounts in thousands) Net unrealized Foreign currency translation Total Balance as of January 1, 2022, net of tax $ 83,588 $ (7) $ 83,581 Other comprehensive income (loss) before reclassifications (377,406) 93 (377,313) Amounts reclassified from other comprehensive income (loss) 705 — 705 Total other comprehensive income (loss) (376,701) 93 (376,608) Balance as of June 30, 2022, net of tax $ (293,113) $ 86 $ (293,027) |
Reclassification out of Accumulated Other Comprehensive Income | The following table presents the effect of the reclassifications of significant items out of accumulated other comprehensive income on the respective line items of the consolidated statements of income, for the periods indicated: Amount reclassified from accumulated other comprehensive income Affected line item in the condensed consolidated statements of income Three months ended Six months ended (Amounts in thousands) 2023 2022 2023 2022 Net unrealized gains (losses) on investments $ (12,988) $ (381) $ (13,110) $ (893) Net investment gains (losses) Benefit (expense) from income taxes 2,727 80 2,753 188 Provision for income taxes |
Nature of business, organizat_2
Nature of business, organization structure and basis of presentation (Details) $ in Thousands | 1 Months Ended | 3 Months Ended |
Sep. 30, 2021 | Jun. 30, 2023 USD ($) state | |
Equity, Class of Treasury Stock [Line Items] | ||
Number of states in which entity operates | state | 50 | |
Enact Re Ltd | ||
Equity, Class of Treasury Stock [Line Items] | ||
Payments of Distributions to Affiliates | $ | $ 250,000 | |
IPO | ||
Equity, Class of Treasury Stock [Line Items] | ||
Minority initial public offering, percentage | 18.40% |
Investments - Net Investment In
Investments - Net Investment Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | $ 52,497 | $ 37,232 | $ 99,492 | $ 73,776 |
Investment expenses and fees | (1,582) | (1,456) | (3,236) | (2,854) |
Net investment income | 50,915 | 35,776 | 96,256 | 70,922 |
Fixed maturity securities available-for-sale | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 44,542 | 36,810 | 85,917 | 73,344 |
Cash, cash equivalents and short-term investments | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | $ 7,955 | $ 422 | $ 13,575 | $ 432 |
Investments - Net Investment Ga
Investments - Net Investment Gains (Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Fixed maturity securities available-for-sale: | ||||
Gross realized gains | $ 20 | $ 291 | $ 20 | $ 641 |
Gross realized (losses) | (13,008) | (672) | (13,130) | (1,534) |
Net realized gains (losses) | (12,988) | (381) | (13,110) | (893) |
Net change in allowance for credit losses on commitment | (13) | 0 | (13) | 173 |
Net investment gains (losses) | $ (13,001) | $ (381) | $ (13,123) | $ (720) |
Investments - Net Unrealized Ga
Investments - Net Unrealized Gains and Losses on Available-for-Sale Securities as a Separate Component of OCI (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Net Investment Income [Line Items] | ||
Unrealized gains (losses) on investment securities | $ (439,235) | $ (486,943) |
Income taxes | 93,849 | 104,047 |
Net unrealized investment gains (losses) | (345,386) | (382,896) |
Fixed maturity securities | ||
Net Investment Income [Line Items] | ||
Unrealized gains (losses) on investment securities | (439,223) | (486,913) |
Short-term investments | ||
Net Investment Income [Line Items] | ||
Unrealized gains (losses) on investment securities | $ (12) | $ (30) |
Investments - Change in Net Unr
Investments - Change in Net Unrealized Gains (Losses) on Available-for-Sale Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Roll Forward] | ||||
Beginning balance | $ 4,296,621 | $ 4,048,589 | $ 4,100,908 | $ 4,105,523 |
Change in net unrealized investment gains (losses) | (25,000) | (152,401) | 37,510 | (376,701) |
Ending balance | 4,375,896 | 4,080,500 | 4,375,896 | 4,080,500 |
Reclassification adjustments to net investment (gains) losses, tax | (2,727) | (80) | (2,753) | (188) |
Amount reclassified from accumulated other comprehensive income | ||||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Roll Forward] | ||||
Beginning balance | (320,386) | (140,712) | (382,896) | 83,588 |
Unrealized gains (losses) on investment securities | (44,767) | (193,949) | 34,599 | (479,350) |
Provision for income taxes | 9,506 | 41,247 | (7,446) | 101,944 |
Change in unrealized gains (losses) on investment securities | (35,261) | (152,702) | 27,153 | (377,406) |
Reclassification adjustments to net investment (gains) losses, net of taxes of $(2,727) and $(80), respectively | 10,261 | 301 | 10,357 | 705 |
Change in net unrealized investment gains (losses) | (25,000) | (152,401) | 37,510 | (376,701) |
Ending balance | $ (345,386) | $ (293,113) | $ (345,386) | $ (293,113) |
Investments - Summary of Fixed
Investments - Summary of Fixed Maturity Securities Classified as Available-for-Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | $ 5,354,262 | $ 5,371,673 |
Gross unrealized gains | 4,109 | 3,849 |
Gross unrealized losses | (443,332) | (490,762) |
Fair value | 4,915,039 | 4,884,760 |
Total investments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 5,365,123 | 5,374,750 |
Gross unrealized gains | 4,109 | 3,849 |
Gross unrealized losses | (443,344) | (490,792) |
Fair value | 4,925,888 | 4,887,807 |
U.S. government, agencies and GSEs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 112,190 | 46,319 |
Gross unrealized gains | 67 | 59 |
Gross unrealized losses | (1,719) | (1,609) |
Fair value | 110,538 | 44,769 |
State and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 510,288 | 515,935 |
Gross unrealized gains | 1,735 | 1,815 |
Gross unrealized losses | (85,495) | (97,894) |
Fair value | 426,528 | 419,856 |
Non-U.S. government | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 12,382 | 10,607 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (1,176) | (1,258) |
Fair value | 11,206 | 9,349 |
U.S. corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 2,728,245 | 2,886,269 |
Gross unrealized gains | 1,468 | 1,355 |
Gross unrealized losses | (220,234) | (240,761) |
Fair value | 2,509,479 | 2,646,863 |
Non-U.S. corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 696,177 | 716,333 |
Gross unrealized gains | 344 | 158 |
Gross unrealized losses | (56,471) | (63,647) |
Fair value | 640,050 | 652,844 |
Residential mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 9,647 | 11,162 |
Gross unrealized gains | 1 | 0 |
Gross unrealized losses | (174) | (119) |
Fair value | 9,474 | 11,043 |
Other asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 1,285,333 | 1,185,048 |
Gross unrealized gains | 494 | 462 |
Gross unrealized losses | (78,063) | (85,474) |
Fair value | 1,207,764 | 1,100,036 |
Short-term investments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 10,861 | 3,077 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (12) | (30) |
Fair value | $ 10,849 | $ 3,047 |
Investments - Schedule of Fixed
Investments - Schedule of Fixed Maturity Securities in a Continuous Unrealized Loss Position (Details) $ in Thousands | Jun. 30, 2023 USD ($) security | Dec. 31, 2022 USD ($) security |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months, Fair value | $ 1,414,681 | $ 3,434,023 |
Less than 12 months, Gross unrealized losses | $ (35,576) | $ (241,056) |
Less than 12 months, Number of securities | security | 470,000 | 877,000 |
12 months or more, Fair value | $ 3,259,295 | $ 1,305,006 |
12 months or more, Gross unrealized losses | $ (407,756) | $ (249,706) |
12 months or more, Number of securities | security | 658,000 | 238,000 |
Fair value | $ 4,673,976 | $ 4,739,029 |
Gross unrealized losses | $ (443,332) | $ (490,762) |
Number of securities | security | 1,128,000 | 1,115,000 |
U.S. government, agencies and GSEs | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months, Fair value | $ 77,177 | $ 43,873 |
Less than 12 months, Gross unrealized losses | $ (418) | $ (1,600) |
Less than 12 months, Number of securities | security | 20,000 | 18,000 |
12 months or more, Fair value | $ 32,550 | $ 96 |
12 months or more, Gross unrealized losses | $ (1,301) | $ (9) |
12 months or more, Number of securities | security | 13,000 | 1,000 |
Fair value | $ 109,727 | $ 43,969 |
Gross unrealized losses | $ (1,719) | $ (1,609) |
Number of securities | security | 33,000 | 19,000 |
State and political subdivisions | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months, Fair value | $ 1,423 | $ 203,752 |
Less than 12 months, Gross unrealized losses | $ (29) | $ (40,988) |
Less than 12 months, Number of securities | security | 2,000 | 43,000 |
12 months or more, Fair value | $ 405,608 | $ 196,235 |
12 months or more, Gross unrealized losses | $ (85,466) | $ (56,906) |
12 months or more, Number of securities | security | 86,000 | 46,000 |
Fair value | $ 407,031 | $ 399,987 |
Gross unrealized losses | $ (85,495) | $ (97,894) |
Number of securities | security | 88,000 | 89,000 |
Non-U.S. government | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months, Fair value | $ 1,846 | $ 0 |
Less than 12 months, Gross unrealized losses | $ (1) | $ 0 |
Less than 12 months, Number of securities | security | 1,000 | 0 |
12 months or more, Fair value | $ 9,360 | $ 9,349 |
12 months or more, Gross unrealized losses | $ (1,175) | $ (1,258) |
12 months or more, Number of securities | security | 1,000 | 1,000 |
Fair value | $ 11,206 | $ 9,349 |
Gross unrealized losses | $ (1,176) | $ (1,258) |
Number of securities | security | 2,000 | 1,000 |
U.S. corporate | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months, Fair value | $ 825,996 | $ 2,033,713 |
Less than 12 months, Gross unrealized losses | $ (25,319) | $ (131,150) |
Less than 12 months, Number of securities | security | 261,000 | 468,000 |
12 months or more, Fair value | $ 1,578,403 | $ 568,171 |
12 months or more, Gross unrealized losses | $ (194,915) | $ (109,611) |
12 months or more, Number of securities | security | 291,000 | 92,000 |
Fair value | $ 2,404,399 | $ 2,601,884 |
Gross unrealized losses | $ (220,234) | $ (240,761) |
Number of securities | security | 552,000 | 560,000 |
Non-U.S. corporate | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months, Fair value | $ 183,459 | $ 486,117 |
Less than 12 months, Gross unrealized losses | $ (4,240) | $ (35,515) |
Less than 12 months, Number of securities | security | 63,000 | 125,000 |
12 months or more, Fair value | $ 425,132 | $ 155,345 |
12 months or more, Gross unrealized losses | $ (52,231) | $ (28,132) |
12 months or more, Number of securities | security | 85,000 | 27,000 |
Fair value | $ 608,591 | $ 641,462 |
Gross unrealized losses | $ (56,471) | $ (63,647) |
Number of securities | security | 148,000 | 152,000 |
Residential mortgage-backed | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months, Fair value | $ 8,533 | $ 11,043 |
Less than 12 months, Gross unrealized losses | $ (174) | $ (119) |
Less than 12 months, Number of securities | security | 5,000 | 6,000 |
12 months or more, Fair value | $ 0 | $ 0 |
12 months or more, Gross unrealized losses | $ 0 | $ 0 |
12 months or more, Number of securities | security | 0 | 0 |
Fair value | $ 8,533 | $ 11,043 |
Gross unrealized losses | $ (174) | $ (119) |
Number of securities | security | 5,000 | 6,000 |
Other asset-backed | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months, Fair value | $ 316,247 | $ 655,525 |
Less than 12 months, Gross unrealized losses | $ (5,395) | $ (31,684) |
Less than 12 months, Number of securities | security | 118,000 | 217,000 |
12 months or more, Fair value | $ 808,242 | $ 375,810 |
12 months or more, Gross unrealized losses | $ (72,668) | $ (53,790) |
12 months or more, Number of securities | security | 182,000 | 71,000 |
Fair value | $ 1,124,489 | $ 1,031,335 |
Gross unrealized losses | $ (78,063) | $ (85,474) |
Number of securities | security | 300,000 | 288,000 |
Investments - Summary of Contra
Investments - Summary of Contractual Maturities of Fixed Maturity Securities Available-For-Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Amortized cost | ||
Due one year or less | $ 254,992 | |
Due after one year through five years | 2,049,802 | |
Due after five years through ten years | 1,478,171 | |
Due after ten years | 276,317 | |
Subtotal | 4,059,282 | |
Amortized cost | 5,354,262 | $ 5,371,673 |
Fair value | ||
Due one year or less | 250,690 | |
Due after one year through five years | 1,901,357 | |
Due after five years through ten years | 1,296,200 | |
Due after ten years | 249,554 | |
Subtotal | 3,697,801 | |
Fair value | 4,915,039 | 4,884,760 |
Residential mortgage-backed | ||
Amortized cost | ||
Residential mortgage-backed and other asset-backed, amortization | 9,647 | |
Amortized cost | 9,647 | 11,162 |
Fair value | ||
Residential mortgage-backed and other asset-backed, fair value | 9,474 | |
Fair value | 9,474 | 11,043 |
Other asset-backed | ||
Amortized cost | ||
Residential mortgage-backed and other asset-backed, amortization | 1,285,333 | |
Amortized cost | 1,285,333 | 1,185,048 |
Fair value | ||
Residential mortgage-backed and other asset-backed, fair value | 1,207,764 | |
Fair value | $ 1,207,764 | $ 1,100,036 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Deposits | ||
Debt Securities, Available-for-sale [Line Items] | ||
Assets held by insurance regulators | $ 25.2 | $ 25.1 |
Financial Services Sector | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities portfolio, percentage | 33% | |
Technology And Communications Sector | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities portfolio, percentage | 13% | |
Non-Cyclical Consumer Sector | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities portfolio, percentage | 11% | |
Utilities Industry Group | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities portfolio, percentage | 10% |
Fair value - Narrative (Details
Fair value - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | $ 4,915,039 | $ 4,884,760 |
U.S. corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 2,509,479 | 2,646,863 |
Non-U.S. corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 640,050 | 652,844 |
Fair value, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 4,915,039 | 4,884,760 |
Liabilities, fair value | 0 | 0 |
Fair value, recurring | U.S. corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 2,509,479 | 2,646,863 |
Fair value, recurring | Non-U.S. corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 640,050 | 652,844 |
Level 1 | Fair value, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 0 | 0 |
Level 1 | Fair value, recurring | U.S. corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 0 | 0 |
Level 1 | Fair value, recurring | Non-U.S. corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 0 | 0 |
Level 2 | Fair value, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | $ 4,609,062 | 4,565,499 |
Percentage of portfolio priced using third-party pricing services | 89% | |
Level 2 | Fair value, recurring | U.S. corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | $ 2,287,178 | 2,426,237 |
Level 2 | Fair value, recurring | U.S. corporate | Internal models | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 181,600 | |
Level 2 | Fair value, recurring | Non-U.S. corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 567,326 | 557,690 |
Level 2 | Fair value, recurring | Non-U.S. corporate | Internal models | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 72,200 | |
Level 3 | Fair value, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 305,977 | 319,261 |
Level 3 | Fair value, recurring | Internal models | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 282,700 | |
Level 3 | Fair value, recurring | Valuation technique, broker quotes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 23,300 | |
Level 3 | Fair value, recurring | U.S. corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 222,301 | 220,626 |
Level 3 | Fair value, recurring | U.S. corporate | Internal models | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 220,136 | |
Level 3 | Fair value, recurring | Non-U.S. corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 72,724 | $ 95,154 |
Level 3 | Fair value, recurring | Non-U.S. corporate | Internal models | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | $ 62,527 |
Fair value - Summary of Signifi
Fair value - Summary of Significant Inputs used for Fair Value Measurement of Fixed Maturity Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | $ 4,915,039 | $ 4,884,760 |
State and political subdivisions | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | 426,528 | 419,856 |
Non-U.S. government | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | 11,206 | 9,349 |
U.S. corporate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | 2,509,479 | 2,646,863 |
Non-U.S. corporate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | 640,050 | 652,844 |
Residential mortgage-backed | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | 9,474 | 11,043 |
Other asset-backed | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | 1,207,764 | 1,100,036 |
Fair value, recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | 4,915,039 | 4,884,760 |
Fair value, recurring | U.S. government, agencies and GSEs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | 110,538 | 44,769 |
Fair value, recurring | State and political subdivisions | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | 426,528 | 419,856 |
Fair value, recurring | Non-U.S. government | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | 11,206 | 9,349 |
Fair value, recurring | U.S. corporate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | 2,509,479 | 2,646,863 |
Fair value, recurring | Non-U.S. corporate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | 640,050 | 652,844 |
Fair value, recurring | Residential mortgage-backed | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | 9,474 | 11,043 |
Fair value, recurring | Other asset-backed | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | 1,207,764 | 1,100,036 |
Level 2 | Fair value, recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | 4,609,062 | 4,565,499 |
Level 2 | Fair value, recurring | U.S. government, agencies and GSEs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | 110,538 | 44,769 |
Level 2 | Fair value, recurring | State and political subdivisions | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | 426,528 | 419,856 |
Level 2 | Fair value, recurring | Non-U.S. government | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | 11,206 | 9,349 |
Level 2 | Fair value, recurring | U.S. corporate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | 2,287,178 | 2,426,237 |
Level 2 | Fair value, recurring | Non-U.S. corporate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | 567,326 | 557,690 |
Level 2 | Fair value, recurring | Residential mortgage-backed | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | 9,474 | 11,043 |
Level 2 | Fair value, recurring | Other asset-backed | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | 1,196,812 | $ 1,096,555 |
Pricing Services | Level 2 | Fair value, recurring | U.S. government, agencies and GSEs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | 110,538 | |
Pricing Services | Level 2 | Fair value, recurring | State and political subdivisions | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | 426,528 | |
Pricing Services | Level 2 | Fair value, recurring | Non-U.S. government | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | 11,206 | |
Pricing Services | Level 2 | Fair value, recurring | U.S. corporate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | 2,105,532 | |
Pricing Services | Level 2 | Fair value, recurring | Non-U.S. corporate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | 495,138 | |
Pricing Services | Level 2 | Fair value, recurring | Residential mortgage-backed | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | 9,474 | |
Pricing Services | Level 2 | Fair value, recurring | Other asset-backed | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | $ 1,196,812 |
Fair value - Schedule of Fair V
Fair value - Schedule of Fair Value Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | $ 4,915,039 | $ 4,884,760 |
Short-term investments | 10,849 | 3,047 |
State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 426,528 | 419,856 |
Non-U.S. government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 11,206 | 9,349 |
U.S. corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 2,509,479 | 2,646,863 |
Non-U.S. corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 640,050 | 652,844 |
Residential mortgage-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 9,474 | 11,043 |
Other asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 1,207,764 | 1,100,036 |
Fair value, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 4,915,039 | 4,884,760 |
Short-term investments | 10,849 | 3,047 |
Total | 4,925,888 | 4,887,807 |
Fair value, recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 0 | 0 |
Short-term investments | 0 | 0 |
Total | 0 | 0 |
Fair value, recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 4,609,062 | 4,565,499 |
Short-term investments | 10,849 | 3,047 |
Total | 4,619,911 | 4,568,546 |
Fair value, recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 305,977 | 319,261 |
Short-term investments | 0 | 0 |
Total | 305,977 | 319,261 |
Fair value, recurring | U.S. government, agencies and GSEs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 110,538 | 44,769 |
Fair value, recurring | U.S. government, agencies and GSEs | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 0 | 0 |
Fair value, recurring | U.S. government, agencies and GSEs | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 110,538 | 44,769 |
Fair value, recurring | U.S. government, agencies and GSEs | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 0 | 0 |
Fair value, recurring | State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 426,528 | 419,856 |
Fair value, recurring | State and political subdivisions | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 0 | 0 |
Fair value, recurring | State and political subdivisions | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 426,528 | 419,856 |
Fair value, recurring | State and political subdivisions | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 0 | 0 |
Fair value, recurring | Non-U.S. government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 11,206 | 9,349 |
Fair value, recurring | Non-U.S. government | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 0 | 0 |
Fair value, recurring | Non-U.S. government | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 11,206 | 9,349 |
Fair value, recurring | Non-U.S. government | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 0 | 0 |
Fair value, recurring | U.S. corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 2,509,479 | 2,646,863 |
Fair value, recurring | U.S. corporate | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 0 | 0 |
Fair value, recurring | U.S. corporate | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 2,287,178 | 2,426,237 |
Fair value, recurring | U.S. corporate | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 222,301 | 220,626 |
Fair value, recurring | Non-U.S. corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 640,050 | 652,844 |
Fair value, recurring | Non-U.S. corporate | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 0 | 0 |
Fair value, recurring | Non-U.S. corporate | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 567,326 | 557,690 |
Fair value, recurring | Non-U.S. corporate | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 72,724 | 95,154 |
Fair value, recurring | Residential mortgage-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 9,474 | 11,043 |
Fair value, recurring | Residential mortgage-backed | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 0 | 0 |
Fair value, recurring | Residential mortgage-backed | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 9,474 | 11,043 |
Fair value, recurring | Residential mortgage-backed | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 0 | 0 |
Fair value, recurring | Other asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 1,207,764 | 1,100,036 |
Fair value, recurring | Other asset-backed | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 0 | 0 |
Fair value, recurring | Other asset-backed | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 1,196,812 | 1,096,555 |
Fair value, recurring | Other asset-backed | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | $ 10,952 | $ 3,481 |
Fair value - Schedule of Additi
Fair value - Schedule of Additional Information about Fair Value Assets Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | $ 291,445 | $ 327,881 | $ 319,261 | $ 328,620 |
Total realized and unrealized gains (losses) included in net income | 2 | (97) | (733) | (196) |
Total realized and unrealized gains (losses) included in OCI | (5,354) | (17,262) | 1,451 | (41,007) |
Purchases | 27,991 | 18,006 | 34,750 | 67,975 |
Sales | 0 | 0 | (10,442) | 0 |
Settlements | (8,107) | (105) | (35,796) | (651) |
Transfer into Level 3 | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | 0 | (13,410) | (2,514) | (39,728) |
Ending Balance | 305,977 | 315,013 | 305,977 | 315,013 |
Total gains (losses) attributable to assets still held included in net income | 3 | (97) | 5 | (196) |
Total gains (losses) attributable to assets still held included in OCI | (6,176) | (16,767) | (999) | (38,595) |
U.S. corporate | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 216,330 | 243,463 | 220,626 | 220,733 |
Total realized and unrealized gains (losses) included in net income | (8) | (13) | (21) | (28) |
Total realized and unrealized gains (losses) included in OCI | (4,021) | (13,386) | 3 | (30,170) |
Purchases | 18,000 | 0 | 21,000 | 39,969 |
Sales | 0 | 0 | (6,899) | 0 |
Settlements | (8,000) | 0 | (12,408) | (440) |
Transfer into Level 3 | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | 0 | (13,410) | 0 | (13,410) |
Ending Balance | 222,301 | 216,654 | 222,301 | 216,654 |
Total gains (losses) attributable to assets still held included in net income | (7) | (13) | (16) | (28) |
Total gains (losses) attributable to assets still held included in OCI | (4,842) | (12,893) | (1,093) | (29,677) |
Non-U.S. corporate | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 74,131 | 84,418 | 95,154 | 83,664 |
Total realized and unrealized gains (losses) included in net income | 8 | (84) | (717) | (168) |
Total realized and unrealized gains (losses) included in OCI | (1,309) | (3,933) | 1,458 | (9,270) |
Purchases | 0 | 3,009 | 3,759 | 13,009 |
Sales | 0 | 0 | (3,543) | 0 |
Settlements | (106) | (105) | (23,387) | (211) |
Transfer into Level 3 | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | 0 | 0 | 0 | (3,719) |
Ending Balance | 72,724 | 83,305 | 72,724 | 83,305 |
Total gains (losses) attributable to assets still held included in net income | 8 | (84) | 16 | (168) |
Total gains (losses) attributable to assets still held included in OCI | (1,310) | (3,931) | 122 | (8,975) |
Other asset-backed | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 984 | 0 | 3,481 | 24,223 |
Total realized and unrealized gains (losses) included in net income | 2 | 0 | 5 | 0 |
Total realized and unrealized gains (losses) included in OCI | (24) | 57 | (10) | (1,567) |
Purchases | 9,991 | 14,997 | 9,991 | 14,997 |
Sales | 0 | 0 | 0 | 0 |
Settlements | (1) | 0 | (1) | 0 |
Transfer into Level 3 | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | 0 | 0 | (2,514) | (22,599) |
Ending Balance | 10,952 | 15,054 | 10,952 | 15,054 |
Total gains (losses) attributable to assets still held included in net income | 2 | 0 | 5 | 0 |
Total gains (losses) attributable to assets still held included in OCI | $ (24) | $ 57 | $ (28) | $ 57 |
Fair value - Summary of Fair Va
Fair value - Summary of Fair Value Assets Measured on Recurring Basis, Significant Unobservable Input (Details) $ in Thousands | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value | $ 4,915,039 | $ 4,884,760 |
U.S. corporate | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value | 2,509,479 | 2,646,863 |
Non-U.S. corporate | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value | 640,050 | 652,844 |
Fair value, recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value | 4,915,039 | 4,884,760 |
Fair value, recurring | U.S. corporate | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value | 2,509,479 | 2,646,863 |
Fair value, recurring | Non-U.S. corporate | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value | $ 640,050 | 652,844 |
Level 3 | U.S. corporate | Internal models | Credit spreads | Minimum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fixed maturity securities, measurement input (in basis points) | 0.0064 | |
Level 3 | U.S. corporate | Internal models | Credit spreads | Maximum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fixed maturity securities, measurement input (in basis points) | 0.0263 | |
Level 3 | U.S. corporate | Internal models | Credit spreads | Weighted average | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fixed maturity securities, measurement input (in basis points) | 0.0146 | |
Level 3 | Non-U.S. corporate | Internal models | Credit spreads | Minimum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fixed maturity securities, measurement input (in basis points) | 0.0092 | |
Level 3 | Non-U.S. corporate | Internal models | Credit spreads | Maximum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fixed maturity securities, measurement input (in basis points) | 0.0197 | |
Level 3 | Non-U.S. corporate | Internal models | Credit spreads | Weighted average | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fixed maturity securities, measurement input (in basis points) | 0.0147 | |
Level 3 | Fair value, recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value | $ 305,977 | 319,261 |
Level 3 | Fair value, recurring | Internal models | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value | 282,700 | |
Level 3 | Fair value, recurring | U.S. corporate | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value | 222,301 | 220,626 |
Level 3 | Fair value, recurring | U.S. corporate | Internal models | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value | 220,136 | |
Level 3 | Fair value, recurring | Non-U.S. corporate | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value | 72,724 | $ 95,154 |
Level 3 | Fair value, recurring | Non-U.S. corporate | Internal models | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value | $ 62,527 |
Fair value - Schedule of Estima
Fair value - Schedule of Estimated Fair Value Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Carrying amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term borrowings | $ 744,100 | $ 742,830 |
Level 2 | Fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term borrowings | $ 737,790 | $ 739,020 |
Loss reserves - Activity for th
Loss reserves - Activity for the Liability for Loss Reserves (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||
Loss reserves, beginning balance | $ 519,008 | $ 641,325 | ||
Reinsurance recoverable, beginning balance | 0 | 0 | ||
Run-off reserves | 899 | 673 | $ (678) | $ (681) |
Net loss reserves, beginning balance | 518,330 | 640,644 | ||
Losses and LAE incurred related to current accident year | 120,175 | 75,562 | ||
Losses and LAE incurred related to prior accident years | (135,366) | (147,558) | ||
Total incurred | (15,191) | (71,996) | ||
Losses and LAE paid related to current accident year | (359) | (461) | ||
Losses and LAE paid related to prior accident years | (13,689) | (9,966) | ||
Total paid | (14,048) | (10,427) | ||
Net loss reserves, ending balance | 489,091 | 558,221 | ||
Reinsurance recoverable, ending balance | 213 | 0 | ||
Loss reserves, ending balance | $ 490,203 | $ 558,894 |
Loss reserves - Narrative (Deta
Loss reserves - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Losses and LAE incurred | $ 120,175 | $ 75,562 |
Adjustments on prior accident year reserves | (135,366) | (147,558) |
Scenario One | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Losses and LAE incurred | 120,000 | 76,000 |
Adjustments on prior accident year reserves | $ 133,000 | |
Scenario Two | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Adjustments on prior accident year reserves | $ 146,000 |
Reinsurance - Summary of Effect
Reinsurance - Summary of Effects of Reinsurance on Premiums Written and Earned (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Net premiums written: | ||||
Direct | $ 245,160 | $ 245,819 | $ 486,099 | $ 488,424 |
Assumed | 256 | 66 | 315 | 134 |
Ceded | (21,015) | (20,129) | (40,942) | (38,431) |
Net premiums written | 224,401 | 225,756 | 445,472 | 450,127 |
Net premiums earned: | ||||
Direct | 259,279 | 257,449 | 514,255 | 509,962 |
Assumed | 256 | 66 | 315 | 134 |
Ceded | (21,015) | (20,129) | (40,942) | (38,431) |
Net premiums earned | $ 238,520 | $ 237,386 | $ 473,628 | $ 471,665 |
Reinsurance - Narrative (Detail
Reinsurance - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 08, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Reinsurance Retention Policy [Line Items] | |||||
Written premiums | $ 224,401 | $ 225,756 | $ 445,472 | $ 450,127 | |
Premiums | $ 238,520 | $ 237,386 | $ 473,628 | $ 471,665 | |
Reinsurance Policy, Type [Axis]: New Insurance Written | |||||
Reinsurance Retention Policy [Line Items] | |||||
Excess of loss reinsurance coverage | $ 180,000 |
Reinsurance - Schedule of Retai
Reinsurance - Schedule of Retained Aggregate Loss and Initial and Current Reinsurance Coverage (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Reinsurance Policy, Type [Axis]: 2020 XOL | |
Reinsurance Retention Policy [Line Items] | |
Initial first layer retained loss | $ 691 |
Current first layer retained loss | 690 |
Initial reinsurance coverage | 168 |
Current reinsurance coverage | 34 |
Reinsurance Policy, Type [Axis]: 2021 XOL | |
Reinsurance Retention Policy [Line Items] | |
Initial first layer retained loss | 671 |
Current first layer retained loss | 671 |
Initial reinsurance coverage | 206 |
Current reinsurance coverage | 163 |
Reinsurance Policy, Type [Axis]: 2022-1 XOL | |
Reinsurance Retention Policy [Line Items] | |
Initial first layer retained loss | 462 |
Current first layer retained loss | 462 |
Initial reinsurance coverage | 196 |
Current reinsurance coverage | 196 |
Reinsurance Policy, Type [Axis]: 2022-2 XOL | |
Reinsurance Retention Policy [Line Items] | |
Initial first layer retained loss | 385 |
Current first layer retained loss | 385 |
Initial reinsurance coverage | 25 |
Current reinsurance coverage | 25 |
Reinsurance Policy, Type [Axis]: 2022-3 XOL | |
Reinsurance Retention Policy [Line Items] | |
Initial first layer retained loss | 317 |
Current first layer retained loss | 316 |
Initial reinsurance coverage | 289 |
Current reinsurance coverage | 275 |
Reinsurance Policy, Type [Axis]: 2022-4 XOL | |
Reinsurance Retention Policy [Line Items] | |
Initial first layer retained loss | 264 |
Current first layer retained loss | 264 |
Initial reinsurance coverage | 36 |
Current reinsurance coverage | 36 |
Reinsurance Policy, Type [Axis]: 2022-5 XOL | |
Reinsurance Retention Policy [Line Items] | |
Initial first layer retained loss | 256 |
Current first layer retained loss | 256 |
Initial reinsurance coverage | 201 |
Current reinsurance coverage | 193 |
Reinsurance Policy, Type [Axis]: 2023-1 XOL | |
Reinsurance Retention Policy [Line Items] | |
Initial first layer retained loss | 210 |
Current first layer retained loss | 210 |
Initial reinsurance coverage | 92 |
Current reinsurance coverage | 92 |
Reinsurance Policy, Type [Axis]: Mortgage Insurance-Linked Notes | |
Reinsurance Retention Policy [Line Items] | |
Current reinsurance coverage | 645 |
Reinsurance Policy, Type [Axis]: Traditional Excess-of-Loss Reinsurance | |
Reinsurance Retention Policy [Line Items] | |
Current reinsurance coverage | 1,014 |
Reinsurance Policy, Type [Axis]: Triangle Re 2020-1 Ltd. | |
Reinsurance Retention Policy [Line Items] | |
Initial first layer retained loss | 522 |
Current first layer retained loss | 521 |
Initial reinsurance coverage | 350 |
Current reinsurance coverage | 28 |
Reinsurance Policy, Type [Axis]: Triangle Re 2021-1 Ltd. | |
Reinsurance Retention Policy [Line Items] | |
Initial first layer retained loss | 212 |
Current first layer retained loss | 212 |
Initial reinsurance coverage | 495 |
Current reinsurance coverage | 105 |
Reinsurance Policy, Type [Axis]: Triangle Re 2021-2 Ltd. | |
Reinsurance Retention Policy [Line Items] | |
Initial first layer retained loss | 189 |
Current first layer retained loss | 188 |
Initial reinsurance coverage | 303 |
Current reinsurance coverage | 209 |
Reinsurance Policy, Type [Axis]: Triangle Re 2021-3 Ltd. | |
Reinsurance Retention Policy [Line Items] | |
Initial first layer retained loss | 304 |
Current first layer retained loss | 303 |
Initial reinsurance coverage | 372 |
Current reinsurance coverage | $ 303 |
Reinsurance - Quota Share Reins
Reinsurance - Quota Share Reinsurance (Details) - Reinsurance Policy, Type [Axis]: QS 2023 - 1 | Jun. 30, 2023 |
Reinsurance Retention Policy [Line Items] | |
Ceding percentage | 13.125% |
Ceding commission | 20% |
Profit commission | 55% |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2023 | Dec. 31, 2020 |
Line of Credit | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Debt instrument, term (in years) | 5 years | ||
Line of credit facility, maximum borrowing capacity | $ 200,000,000 | ||
Line of credit facility, additional borrowing capacity | $ 100,000,000 | ||
6.5% Senior Notes, due 2025 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Face amount | $ 750,000,000 | ||
Stated interest rate | 6.50% | 6.50% |
Borrowings - Schedule of Long-t
Borrowings - Schedule of Long-term Borrowings (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||
Total | $ 744,100 | $ 742,830 | |
6.5% Senior Notes, due 2025 | Senior Notes | |||
Debt Instrument [Line Items] | |||
6.5% Senior Notes, due 2025 | 750,000 | 750,000 | |
Deferred borrowing charges | (5,900) | (7,170) | |
Total | $ 744,100 | $ 742,830 | |
Stated interest rate | 6.50% | 6.50% |
Related party transactions - Na
Related party transactions - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Related Party Transaction [Line Items] | ||||
Investment expenses and fees | $ 1,582 | $ 1,456 | $ 3,236 | $ 2,854 |
Total revenues | 277,522 | 273,541 | 558,461 | 543,129 |
Related Party | ||||
Related Party Transaction [Line Items] | ||||
General and administrative expense | 4,500 | 7,500 | 9,200 | 15,300 |
Investment expenses and fees | 1,700 | 1,400 | 3,300 | 2,800 |
Total revenues | $ 100 | $ 200 | $ 200 | $ 400 |
Related party transactions - Sc
Related party transactions - Schedule of Related Party Transactions (Details) - Related Party - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Related Party Transaction [Line Items] | ||
Amounts payable to Genworth | $ 11,618 | $ 9,291 |
Amounts receivable from Genworth | $ 153 | $ 167 |
Net income per common share - S
Net income per common share - Schedule of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Net income available to EHI common stockholders | $ 168,020 | $ 204,735 | $ 344,008 | $ 369,365 |
Net income per common share, basic (in usd per share) | $ 1.04 | $ 1.26 | $ 2.13 | $ 2.27 |
Net income per common share, diluted (in usd per share) | $ 1.04 | $ 1.25 | $ 2.11 | $ 2.26 |
Weighted average common shares outstanding - basic (in shares) | 161,318 | 162,842 | 161,880 | 162,842 |
Weighted average common shares outstanding - diluted (in shares) | 162,171 | 163,225 | 162,675 | 163,140 |
Changes in accumulated other _3
Changes in accumulated other comprehensive income - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 4,296,621 | $ 4,048,589 | $ 4,100,908 | $ 4,105,523 |
Other comprehensive income (loss) before reclassifications | (35,262) | (152,638) | 27,144 | (377,313) |
Amounts reclassified from other comprehensive income (loss) | 10,261 | 301 | 10,357 | 705 |
Total other comprehensive income (loss) | (25,001) | (152,337) | 37,501 | (376,608) |
Ending balance | 4,375,896 | 4,080,500 | 4,375,896 | 4,080,500 |
Total | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (320,242) | (140,690) | (382,744) | 83,581 |
Ending balance | (345,243) | (293,027) | (345,243) | (293,027) |
Net unrealized investment gains (losses) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (320,386) | (140,712) | (382,896) | 83,588 |
Other comprehensive income (loss) before reclassifications | (35,261) | (152,702) | 27,153 | (377,406) |
Amounts reclassified from other comprehensive income (loss) | 10,261 | 301 | 10,357 | 705 |
Total other comprehensive income (loss) | (25,000) | (152,401) | 37,510 | (376,701) |
Ending balance | (345,386) | (293,113) | (345,386) | (293,113) |
Foreign currency translation | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 144 | 22 | 152 | (7) |
Other comprehensive income (loss) before reclassifications | (1) | 64 | (9) | 93 |
Amounts reclassified from other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Total other comprehensive income (loss) | (1) | 64 | (9) | 93 |
Ending balance | $ 143 | $ 86 | $ 143 | $ 86 |
Changes in accumulated other _4
Changes in accumulated other comprehensive income - Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Benefit (expense) from income taxes | $ (46,127) | $ (56,152) | $ (94,652) | $ (101,428) |
Reclassification out of Accumulated Other Comprehensive Income | Amount reclassified from accumulated other comprehensive income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net unrealized gains (losses) on investments | (12,988) | (381) | (13,110) | (893) |
Benefit (expense) from income taxes | $ 2,727 | $ 80 | $ 2,753 | $ 188 |
Stockholders' equity (Details)
Stockholders' equity (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Jul. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Aug. 04, 2023 | Nov. 01, 2022 | |
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock repurchase program, authorized amount | $ 75,000,000 | ||||||
Stock repurchased and retired during period (in shares) | 1,705,169 | 2,621,945 | |||||
Stock acquired, average cost per share (in usd per share) | $ 24.13 | $ 24.15 | |||||
Stock repurchase program, remaining authorized repurchase amount | $ 10,100,000 | $ 10,100,000 | |||||
Cash dividends paid (in usd per share) | $ 0.16 | $ 0.14 | $ 0.14 | ||||
Subsequent Event | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock repurchase program, authorized amount | $ 100,000,000 | ||||||
Stock repurchased and retired during period (in shares) | 241,946 | ||||||
Stock acquired, average cost per share (in usd per share) | $ 25.96 |