Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 19, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-33067 | |
Entity Registrant Name | SELECTIVE INSURANCE GROUP, INC | |
Entity Incorporation, State or Country Code | NJ | |
Entity Tax Identification Number | 22-2168890 | |
Entity Address, Address Line One | 40 Wantage Avenue | |
Entity Address, City or Town | Branchville, | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07890 | |
City Area Code | 973 | |
Local Phone Number | 948-3000 | |
Title of 12(b) Security | Common Stock, par value $2 per share | |
Trading Symbol | SIGI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock , Shares Outstanding | 59,370,023 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000230557 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Fixed income securities, held-to-maturity – at carrying value (fair value: $33,855 – 2019; $38,317 – 2018) | $ 32,364 | $ 37,110 |
Fixed income securities, available-for-sale – at fair value (amortized cost: $5,571,491 – 2019; $5,270,798 – 2018) | 5,757,898 | 5,273,100 |
Equity securities – at fair value (cost: $135,761 – 2019; $138,144 – 2018) | 157,519 | 147,639 |
Short-term investments (at cost which approximates fair value) | 291,365 | 323,864 |
Other investments | 182,109 | 178,938 |
Total investments (Note 4 and 6) | 6,421,255 | 5,960,651 |
Cash | 504 | 505 |
Restricted cash | 7,139 | 16,414 |
Interest and dividends due or accrued | 43,137 | 41,620 |
Premiums receivable, net of allowance for uncollectible accounts of: $7,800 – 2019; $9,400 – 2018 | 877,708 | 770,518 |
Reinsurance recoverable, net of allowance for uncollectible accounts of: $4,400 – 2019; $4,500 – 2018 | 577,274 | 549,172 |
Prepaid reinsurance premiums | 163,530 | 157,723 |
Deferred federal income tax | 14,698 | 53,540 |
Property and equipment – at cost, net of accumulated depreciation and amortization of: $219,670 – 2019; $211,657 – 2018 | 73,678 | 65,248 |
Deferred policy acquisition costs | 273,128 | 252,612 |
Goodwill | 7,849 | 7,849 |
Other assets | 115,705 | 76,877 |
Total assets | 8,575,605 | 7,952,729 |
Liabilities And Stockholders' Equity | ||
Reserve for loss and loss expense (Note 8) | 4,027,052 | 3,893,868 |
Unearned premiums | 1,536,891 | 1,431,932 |
Long-term Debt | 550,778 | |
Long-term Debt | 439,540 | |
Current federal income tax | 3,182 | 1,302 |
Accrued salaries and benefits | 87,582 | 116,706 |
Other liabilities | 310,576 | 277,579 |
Total liabilities | 6,516,061 | 6,160,927 |
Stockholders' Equity: | ||
Preferred stock of $0 par value per share: Authorized shares: 5,000,000; no shares issued or outstanding | 0 | 0 |
Common stock of $2 par value per share: Authorized shares: 360,000,000; Issued: 103,332,584 – 2019; 102,848,394 – 2018 | 206,665 | 205,697 |
Additional paid-in capital | 407,382 | 390,315 |
Retained earnings | 1,968,374 | 1,858,414 |
Accumulated other comprehensive income (loss) (Note 11) | 68,506 | (77,956) |
Treasury stock – at cost (shares: 44,004,476 – 2019; 43,899,840 – 2018) | (591,383) | (584,668) |
Total stockholders' equity | 2,059,544 | 1,791,802 |
Commitments and contingencies | ||
Total liabilities and stockholders' equity | $ 8,575,605 | $ 7,952,729 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fixed income securities, held-to-maturity, fair value | $ 33,855 | $ 38,317 |
Fixed income securities, available-for-sale, amortized cost | 5,571,491 | 5,270,798 |
Equity securities, cost | 135,761 | 138,144 |
Premiums receivable, allowance for uncollectible accounts | 7,800 | 9,400 |
Reinsurance recoverable, allowance for uncollectible accounts | 4,400 | 4,500 |
Property and equipment - at cost, accumulated depreciation and amortization | $ 219,670 | $ 211,657 |
Preferred stock, par value per share | $ 0 | $ 0 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value per share | $ 2 | $ 2 |
Common stock, shares authorized | 360,000,000 | 360,000,000 |
Common stock, shares issued | 103,332,584 | 102,848,394 |
Treasury stock - at cost, shares | 44,004,476 | 43,899,840 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues: | ||||
Net premiums earned | $ 642,619 | $ 604,836 | $ 1,275,192 | $ 1,196,664 |
Net investment income earned | 58,505 | 45,553 | 109,123 | 88,784 |
Net realized and unrealized gains (losses): | ||||
Net realized investment gains on disposals | 2,883 | 54 | 6,327 | 4,785 |
Other-than-temporary impairments | (971) | (2,821) | (1,075) | (4,033) |
Unrealized gains (losses) on equity securities | 2,115 | 1,115 | 12,226 | (12,953) |
Total net realized and unrealized gains (losses) | 4,027 | (1,652) | 17,478 | (12,201) |
Other income | 3,053 | 3,179 | 5,373 | 5,358 |
Total revenues | 708,204 | 651,916 | 1,407,166 | 1,278,605 |
Expenses: | ||||
Loss and loss expense incurred | 380,984 | 366,328 | 767,563 | 751,269 |
Amortization of deferred policy acquisition costs | 133,401 | 122,661 | 263,075 | 243,754 |
Other insurance expenses | 86,662 | 80,994 | 171,741 | 164,234 |
Interest expense | 7,366 | 6,125 | 18,892 | 12,277 |
Corporate expenses | 9,566 | 3,283 | 21,976 | 14,615 |
Total expenses | 617,979 | 579,391 | 1,243,247 | 1,186,149 |
Income before federal income tax | 90,225 | 72,525 | 163,919 | 92,456 |
Federal income tax expense: | ||||
Current | 17,958 | 12,782 | 30,539 | 13,215 |
Deferred | 1 | 924 | (234) | 1,497 |
Total federal income tax expense | 17,959 | 13,706 | 30,305 | 14,712 |
Net income | $ 72,266 | $ 58,819 | $ 133,614 | $ 77,744 |
Earnings per share: | ||||
Basic net income | $ 1.22 | $ 1 | $ 2.25 | $ 1.32 |
Diluted net income | $ 1.21 | $ 0.99 | $ 2.23 | $ 1.30 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net income | $ 72,266 | $ 58,819 | $ 133,614 | $ 77,744 |
Unrealized holding gains (losses) arising during period | 66,002 | (18,955) | 147,315 | (86,353) |
Amounts reclassified into net income: Held-to-maturity securities | (17) | (6) | (24) | (16) |
Amounts reclassified into net income: Realized (gains) losses on disposals and OTTI of available-for-sale securities | (1,027) | 2,267 | (1,878) | 5,861 |
Total unrealized gains (losses) on investment securities | 64,958 | (16,694) | 145,413 | (80,508) |
Amount reclassified into net income: Net actuarial loss | 524 | 420 | 1,049 | 840 |
Total defined benefit pension and post-retirement plans | 524 | 420 | 1,049 | 840 |
Other comprehensive income (loss) | 65,482 | (16,274) | 146,462 | (79,668) |
Comprehensive income (loss) | $ 137,748 | $ 42,545 | $ 280,076 | $ (1,924) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional paid-in capital [Member] | Retained Earnings [Member] | Accumulated other comprehensive income (loss) [Member] | Treasury stock [Member] |
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2016-01 [Member] | $ 30,726 | $ (30,726) | ||||
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2018-02 [Member] | (5,707) | 5,707 | ||||
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2016-02 [Member] | 0 | |||||
Balance at beginning of year, as adjusted | 1,723,632 | (4,849) | ||||
Beginning of year at Dec. 31, 2017 | $ 204,569 | $ 367,717 | 1,698,613 | 20,170 | $ (578,112) | |
Dividend reinvestment plan | 25 | 686 | ||||
Stock purchase and compensation plans | 866 | 13,238 | ||||
Net income | $ 77,744 | 77,744 | ||||
Dividends to stockholders | (21,448) | |||||
Other comprehensive income (loss) | (79,668) | (79,668) | ||||
Acquisition of treasury stock | (6,245) | |||||
End of period at Jun. 30, 2018 | $ 1,698,155 | 205,460 | 381,641 | 1,779,928 | (84,517) | (584,357) |
Dividends declared per share to stockholders | $ 0.36 | |||||
Common stock, shares outstanding, beginning of period at Dec. 31, 2017 | 58,495,122 | |||||
Dividend reinvestment plan, shares | 12,373 | |||||
Stock purchase and compensation plan, shares | 433,009 | |||||
Acquisition of treasury stock, shares | (105,452) | |||||
Common stock, shares outstanding, end of period at Jun. 30, 2018 | 58,835,052 | |||||
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2016-01 [Member] | 0 | 0 | ||||
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2018-02 [Member] | 0 | 0 | ||||
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2016-02 [Member] | 0 | |||||
Balance at beginning of year, as adjusted | 1,731,832 | (68,243) | ||||
Beginning of year at Mar. 31, 2018 | 205,280 | 375,155 | 1,731,832 | (68,243) | (584,228) | |
Dividend reinvestment plan | 12 | 333 | ||||
Stock purchase and compensation plans | 168 | 6,153 | ||||
Net income | $ 58,819 | 58,819 | ||||
Dividends to stockholders | (10,723) | |||||
Other comprehensive income (loss) | (16,274) | (16,274) | ||||
Acquisition of treasury stock | (129) | |||||
End of period at Jun. 30, 2018 | $ 1,698,155 | 205,460 | 381,641 | 1,779,928 | (84,517) | (584,357) |
Dividends declared per share to stockholders | $ 0.18 | |||||
Common stock, shares outstanding, beginning of period at Mar. 31, 2018 | 58,747,505 | |||||
Dividend reinvestment plan, shares | 6,075 | |||||
Stock purchase and compensation plan, shares | 83,754 | |||||
Acquisition of treasury stock, shares | (2,282) | |||||
Common stock, shares outstanding, end of period at Jun. 30, 2018 | 58,835,052 | |||||
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2016-01 [Member] | 0 | 0 | ||||
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2018-02 [Member] | 0 | 0 | ||||
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2016-02 [Member] | 342 | |||||
Balance at beginning of year, as adjusted | 1,858,756 | (77,956) | ||||
Beginning of year at Dec. 31, 2018 | $ 1,791,802 | 205,697 | 390,315 | 1,858,414 | (77,956) | (584,668) |
Dividend reinvestment plan | 22 | 729 | ||||
Stock purchase and compensation plans | 946 | 16,338 | ||||
Net income | 133,614 | 133,614 | ||||
Dividends to stockholders | (23,996) | |||||
Other comprehensive income (loss) | 146,462 | 146,462 | ||||
Acquisition of treasury stock | (6,715) | |||||
End of period at Jun. 30, 2019 | $ 2,059,544 | 206,665 | 407,382 | 1,968,374 | 68,506 | (591,383) |
Dividends declared per share to stockholders | $ 0.40 | |||||
Common stock, shares outstanding, beginning of period at Dec. 31, 2018 | 58,948,554 | |||||
Dividend reinvestment plan, shares | 10,912 | |||||
Stock purchase and compensation plan, shares | 473,278 | |||||
Acquisition of treasury stock, shares | (104,636) | |||||
Common stock, shares outstanding, end of period at Jun. 30, 2019 | 59,328,108 | |||||
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2016-01 [Member] | 0 | 0 | ||||
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2018-02 [Member] | 0 | 0 | ||||
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2016-02 [Member] | 0 | |||||
Balance at beginning of year, as adjusted | 1,908,119 | 3,024 | ||||
Beginning of year at Mar. 31, 2019 | 206,451 | 398,881 | 1,908,119 | 3,024 | (591,253) | |
Dividend reinvestment plan | 11 | 364 | ||||
Stock purchase and compensation plans | 203 | 8,137 | ||||
Net income | $ 72,266 | 72,266 | ||||
Dividends to stockholders | (12,011) | |||||
Other comprehensive income (loss) | 65,482 | 65,482 | ||||
Acquisition of treasury stock | (130) | |||||
End of period at Jun. 30, 2019 | $ 2,059,544 | $ 206,665 | $ 407,382 | $ 1,968,374 | $ 68,506 | $ (591,383) |
Dividends declared per share to stockholders | $ 0.20 | |||||
Common stock, shares outstanding, beginning of period at Mar. 31, 2019 | 59,222,905 | |||||
Dividend reinvestment plan, shares | 5,218 | |||||
Stock purchase and compensation plan, shares | 101,650 | |||||
Acquisition of treasury stock, shares | (1,665) | |||||
Common stock, shares outstanding, end of period at Jun. 30, 2019 | 59,328,108 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | Jun. 30, 2019 | Jun. 30, 2018 |
Preferred stock, par value per share | $ 0 | $ 0 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Series A Preferred Stock [Member] | ||
Preferred stock, par value per share | $ 0 | $ 0 |
Preferred stock, shares authorized | 300,000 | 300,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Operating Activities | ||
Net income | $ 133,614 | $ 77,744 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 28,327 | 21,771 |
Stock-based compensation expense | 11,654 | 9,636 |
Undistributed gains of equity method investments | (4,934) | (1,628) |
Distributions in excess of current year income of equity method investments | 2,157 | 1,450 |
Loss on disposal of fixed assets | 0 | 29 |
Net realized and unrealized (gains) losses | (17,478) | 12,201 |
Changes in assets and liabilities: | ||
Increase in reserve for loss and loss expense, net of reinsurance recoverable | 105,082 | 82,978 |
Increase in unearned premiums, net of prepaid reinsurance | 99,152 | 83,143 |
Decrease in net federal income taxes | 1,698 | 9,887 |
Increase in premiums receivable | (107,190) | (74,144) |
Increase in deferred policy acquisition costs | (20,516) | (13,412) |
(Increase) decrease in interest and dividends due or accrued | (1,399) | 2 |
Decrease in accrued salaries and benefits | (29,124) | (46,478) |
Increase in other assets | (22,320) | (6,550) |
Decrease in other liabilities | (13,583) | (64,372) |
Net cash provided by operating activities | 165,140 | 92,257 |
Investing Activities | ||
Purchase of fixed income securities, held-to-maturity | 0 | (3,650) |
Purchase of fixed income securities, available-for-sale | (891,241) | (1,331,607) |
Purchase of equity securities | (24,699) | (46,402) |
Purchase of other investments | (25,822) | (26,032) |
Purchase of short-term investments | (3,258,852) | (1,462,238) |
Sale of fixed income securities, available-for-sale | 372,159 | 938,276 |
Sale of short-term investments | 3,291,878 | 1,463,726 |
Redemption and maturities of fixed income securities, held-to-maturity | 4,643 | 3,654 |
Redemption and maturities of fixed income securities, available-for-sale | 236,705 | 311,590 |
Sale of equity securities | 30,094 | 43,590 |
Sale of other investments | 12,609 | 3,497 |
Distributions from other investments | 14,489 | 15,927 |
Purchase of property and equipment | (16,985) | (6,733) |
Net cash used in investing activities | (255,022) | (96,402) |
Financing Activities | ||
Dividends to stockholders | (22,940) | (20,437) |
Acquisition of treasury stock | (6,715) | (6,245) |
Net proceeds from stock purchase and compensation plans | 5,100 | 3,930 |
Proceeds from borrowings | 340,757 | 130,000 |
Repayments of borrowings | (235,000) | (130,000) |
Repayments of finance lease obligations | (596) | (1,333) |
Net cash provided by (used in) financing activities | 80,606 | (24,085) |
Net decrease in cash and restricted cash | (9,276) | (28,230) |
Cash and restricted cash, beginning of year | 16,919 | 44,710 |
Cash and restricted cash, end of period | $ 7,643 | $ 16,480 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Basis of Presentation And Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation As used herein, the "Company,” “we,” “us,” or “our” refers to Selective Insurance Group, Inc. (the "Parent"), and its subsidiaries, except as expressly indicated or unless the context otherwise requires. Our interim unaudited consolidated financial statements (“Financial Statements”) have been prepared by us in conformity with U.S. generally accepted accounting principles (“GAAP”) and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The preparation of the Financial Statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported financial statement balances, as well as the disclosure of contingent assets and liabilities. Actual results could differ from those estimates. All significant intercompany accounts and transactions between the Parent and its subsidiaries are eliminated in consolidation. Our Financial Statements reflect all adjustments that, in our opinion, are normal, recurring, and necessary for a fair presentation of our results of operations and financial condition. Our Financial Statements cover the second quarters ended June 30, 2019 (“ Second Quarter 2019 ”) and June 30, 2018 (“ Second Quarter 2018 ”) and the six-month periods ended June 30, 2019 (“Six Months 2019”) and June 30, 2018 (“Six Months 2018”). These Financial Statements do not include all of the information and disclosures required by GAAP and the SEC for audited annual financial statements. Additionally, results of operations for any interim period are not necessarily indicative of results for a full year. Consequently, our Financial Statements should be read in conjunction with the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2018 (“ 2018 Annual Report”) filed with the SEC. |
Accounting Pronouncements
Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Accounting Pronouncements | Adoption of Accounting Pronouncements The Financial Accounting Standards Board ("FASB") issued new leasing guidance through ASU 2016-02, Leases , which was issued in February 2016, as well as additional implementation guidance that was issued in 2018 and 2019 (collectively referred to as "ASU 2016-02"). ASU 2016-02 requires all lessees to recognize assets and liabilities on their balance sheets for the rights and obligations created by leases with terms longer than 12 months. For leases with a term of 12 months or less, an accounting policy election is allowed to recognize lease expense on a straight-line basis over the lease term. ASU 2016-02 allows for certain practical expedients, accounting policy elections, and a transition method election. We adopted practical expedients related to reassessing: (i) whether our existing contracts are, or contain, leases; (ii) lease classification for existing leases; and (iii) initial direct costs for existing leases. Additionally, we adopted accounting policy elections to: (i) aggregate lease and non-lease components of a contract into a single lease component; and (ii) expense short-term leases on a straight-line basis over the lease term. We adopted ASU 2016-02 effective January 1, 2019. See Note 12. "Leases" in this Form 10-Q for additional information regarding our leases and the impact of this guidance on our financial condition and results of operations. In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting ("ASU 2018-07"). The amendments in ASU 2018-07 expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. We adopted ASU 2018-07 in the first quarter of 2019 and it did not have a material impact on our financial condition or results of operations. Pronouncements to be effective in the future In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses, as well as additional implementation guidance issued in 2018 and 2019 (collectively referred to as “ASU 2016-13”). ASU 2016-13 will change the way entities recognize impairment of financial assets by requiring immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets, including, among others, held-to-maturity ("HTM") debt securities, trade receivables, and reinsurance recoverables. ASU 2016-13 requires a valuation allowance to be calculated on financial assets, and that they be presented on the financial statements net of the valuation allowance. The valuation allowance is a measurement of expected losses that is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. This methodology is referred to as the current expected credit loss model. This ASU also made targeted changes to the impairment accounting model for available-for-sale ("AFS") debt securities. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those annual periods. We are currently evaluating the impact of this guidance on our financial condition and results of operations. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement: Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). ASU 2018-13 modifies the disclosure requirements for fair value measurements. The modifications removed the following disclosure requirements: (i) the amount of, and reasons for, transfers between Level 1 and Level 2 of the fair value hierarchy; (ii) the policy for timing of transfers between levels; and (iii) the valuation processes for Level 3 fair value measurements. This ASU added the following disclosure requirements: (i) the changes in unrealized gains and losses for the period included in other comprehensive income ("OCI") for recurring Level 3 fair value measurements held at the end of the reporting period; and (ii) the range and weighted average of significant observable inputs used to develop Level 3 fair value measurements. This update is effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. As the requirements of this literature are disclosure only, ASU 2018-13 will not impact our financial condition or results of operations. In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General: Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans (“ASU 2018-14”). ASU 2018-14 modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. These modifications include: (i) removing the requirement to disclose the amount in accumulated other comprehensive income ("AOCI") expected to be recognized as components of net periodic benefit cost over the next fiscal year; and (ii) adding the requirement to disclose an explanation of the reasons for significant gains or losses related to changes in the benefit obligation for the period. This update is effective for fiscal years ending after December 15, 2020, with early adoption permitted. As the requirements of this literature are disclosure only, ASU 2018-14 will not impact our financial condition or results of operations. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This update is effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. We are currently evaluating the impact of this guidance on our financial condition or results of operations. |
Statements of Cash Flows
Statements of Cash Flows | 6 Months Ended |
Jun. 30, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Statements of Cash Flows | Statements of Cash Flows Supplemental cash flow information was as follows: Six Months ended June 30, ($ in thousands) 2019 2018 Cash paid during the period for: Interest $ 10,512 12,064 Federal income tax 28,000 4,193 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 1 3,994 — Operating cash flows from financing leases 7 — Financing cash flows from finance leases 596 1,333 Non-cash items: Corporate actions related to fixed income securities, AFS 2 25,104 32,133 Assets acquired under finance lease arrangements 814 — Assets acquired under operating lease arrangements 1 12,881 — Non-cash purchase of property and equipment — 18 1 Upon adoption of ASU 2016-02, effective January 1, 2019, we are required to disclose cash paid for amounts included in the measurement of operating lease liabilities, as well as supplemental non-cash information on operating lease liabilities arising from obtaining operating lease assets. 2 Examples of such corporate actions include exchanges, non-cash acquisitions, and stock splits. The following table provides a reconciliation of cash and restricted cash reported within the Consolidated Balance Sheets that equate to the amount reported in the Consolidated Statements of Cash Flows: ($ in thousands) June 30, 2019 December 31, 2018 Cash $ 504 505 Restricted cash 7,139 16,414 Total cash and restricted cash shown in the Statements of Cash Flows $ 7,643 16,919 Amounts included in restricted cash represent cash received from the National Flood Insurance Program ("NFIP"), which is restricted to pay flood claims under the Write Your Own program. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2019 | |
Investments [Abstract] | |
Investments | Investments (a) Our HTM fixed income securities as of June 30, 2019 represented less than 1% of our total invested assets, down slightly compared to December 31, 2018 . The carry value and net unrealized/unrecognized gains were $32.4 million and $ 1.6 million , respectively, at June 30, 2019 , and $37.1 million and $ 1.3 million , respectively, at December 31, 2018 . Included in the net unrealized/unrecognized gains were gross unrealized/unrecognized losses of $ 0.1 million at June 30, 2019 and $ 0.2 million at December 31, 2018 . Unrecognized holding gains and losses of HTM securities are not reflected in the Financial Statements, as they represent fair value fluctuations from the date a security is designated as HTM through the date of the balance sheet. (b) Information regarding our AFS securities as of June 30, 2019 and December 31, 2018 was as follows: June 30, 2019 ($ in thousands) Cost/ Amortized Cost Unrealized Gains Unrealized Losses Fair Value AFS fixed income securities: U.S. government and government agencies $ 143,461 3,683 (20 ) 147,124 Foreign government 20,995 494 — 21,489 Obligations of states and political subdivisions 1,056,507 54,516 (6 ) 1,111,017 Corporate securities 1,733,319 64,620 (4,402 ) 1,793,537 Collateralized loan obligations and other asset-backed securities ("CLO and other ABS") 762,896 8,649 (3,941 ) 767,604 Commercial mortgage-backed securities ("CMBS") 541,093 24,737 (237 ) 565,593 Residential mortgage-backed securities (“RMBS”) 1,313,220 38,588 (274 ) 1,351,534 Total AFS fixed income securities $ 5,571,491 195,287 (8,880 ) 5,757,898 December 31, 2018 ($ in thousands) Cost/ Amortized Cost Unrealized Gains Unrealized Losses Fair Value AFS fixed income securities: U.S. government and government agencies $ 120,092 1,810 (592 ) 121,310 Foreign government 23,202 36 (107 ) 23,131 Obligations of states and political subdivisions 1,121,615 19,485 (2,631 ) 1,138,469 Corporate securities 1,639,852 5,521 (27,965 ) 1,617,408 CLO and other ABS 720,193 4,112 (6,943 ) 717,362 CMBS 527,409 3,417 (3,748 ) 527,078 RMBS 1,118,435 12,988 (3,081 ) 1,128,342 Total AFS fixed income securities $ 5,270,798 47,369 (45,067 ) 5,273,100 Unrealized gains and losses of AFS securities represent fair value fluctuations from the later of: (i) the date a security is designated as AFS; or (ii) the date that an other-than-temporary impairment ("OTTI") charge is recognized on an AFS security, through the date of the balance sheet. These unrealized gains and losses are recorded in AOCI on the Consolidated Balance Sheets. (c) The severity of impairment on AFS securities in an unrealized/unrecognized loss position averaged approximately 1% of amortized cost at June 30, 2019 and approximately 2% at December 31, 2018 . Quantitative information regarding these losses is provided below. June 30, 2019 Less than 12 months 12 months or longer Total ($ in thousands) Fair Value Unrealized Losses 1 Fair Value Unrealized Losses 1 Fair Value Unrealized 1 AFS fixed income securities: U.S. government and government agencies $ — — 5,508 (20 ) 5,508 (20 ) Obligations of states and political subdivisions 739 (6 ) — — 739 (6 ) Corporate securities 94,964 (2,260 ) 46,527 (2,142 ) 141,491 (4,402 ) CLO and other ABS 231,823 (2,318 ) 151,572 (1,623 ) 383,395 (3,941 ) CMBS 59,639 (183 ) 24,882 (54 ) 84,521 (237 ) RMBS 34,107 (135 ) 14,691 (139 ) 48,798 (274 ) Total AFS fixed income securities $ 421,272 (4,902 ) 243,180 (3,978 ) 664,452 (8,880 ) December 31, 2018 Less than 12 months 12 months or longer Total ($ in thousands) Fair Value Unrealized Losses 1 Fair Value Unrealized Losses 1 Fair Value Unrealized 1 AFS fixed income securities: U.S. government and government agencies $ 6,693 (174 ) 23,163 (418 ) 29,856 (592 ) Foreign government 12,208 (93 ) 1,482 (14 ) 13,690 (107 ) Obligations of states and political subdivisions 196,798 (2,074 ) 42,821 (557 ) 239,619 (2,631 ) Corporate securities 1,041,952 (23,649 ) 78,953 (4,316 ) 1,120,905 (27,965 ) CLO and other ABS 516,106 (6,750 ) 16,800 (193 ) 532,906 (6,943 ) CMBS 229,338 (2,548 ) 66,294 (1,200 ) 295,632 (3,748 ) RMBS 139,338 (1,660 ) 45,661 (1,421 ) 184,999 (3,081 ) Total AFS fixed income securities $ 2,142,433 (36,948 ) 275,174 (8,119 ) 2,417,607 (45,067 ) 1 Gross unrealized losses include non-OTTI unrealized amounts and OTTI losses recognized in AOCI. The decrease in the unrealized loss position was due to: (i) lower interest rates, with a 73-basis point decrease in 2-year U.S. Treasury Note yields and a 68-basis point decrease in 10-year U.S. Treasury Note yields during Six Months 2019; and (ii) tightening option adjusted corporate credit spreads, with a 38-basis point decrease in the Bloomberg Barclays U.S. Aggregate Corporate Bond Index during Six Months 2019. We do not currently intend to sell any of the securities in the tables above, nor will we be required to sell any of these securities. Considering these factors, and in accordance with our review of these securities under our OTTI policy, as described in Note 2. “Summary of Significant Accounting Policies” within Item 8. “Financial Statements and Supplementary Data.” of our 2018 Annual Report, we have concluded that they are temporarily impaired as we believe: (i) they will mature at par value; (ii) they have not incurred a credit impairment; and (iii) future values of these securities will fluctuate with changes in interest rates. This conclusion reflects our current judgment as to the financial position and future prospects of the entity that issued the investment security and underlying collateral. (d) Fixed income securities at June 30, 2019 , by contractual maturity, are shown below. Mortgage-backed securities are included in the maturity tables using the estimated average life of each security. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations, with or without call or prepayment penalties. Listed below are the contractual maturities of fixed income securities at June 30, 2019 : AFS HTM ($ in thousands) Fair Value Carrying Value Fair Value Due in one year or less $ 280,140 9,480 9,526 Due after one year through five years 2,237,395 16,860 18,109 Due after five years through 10 years 3,065,577 6,024 6,220 Due after 10 years 174,786 — — Total fixed income securities $ 5,757,898 32,364 33,855 (e) The following table summarizes our other investment portfolio by strategy: Other Investments June 30, 2019 December 31, 2018 ($ in thousands) Carrying Value Remaining Commitment Maximum Exposure to Loss 1 Carrying Value Remaining Commitment Maximum Exposure to Loss 1 Alternative Investments Private equity $ 99,567 95,805 195,372 84,352 93,688 178,040 Private credit 35,103 113,133 148,236 41,682 81,453 123,135 Real assets 23,104 22,880 45,984 27,862 27,129 54,991 Total alternative investments 157,774 231,818 389,592 153,896 202,270 356,166 Other securities 24,335 — 24,335 25,042 — 25,042 Total other investments $ 182,109 231,818 413,927 178,938 202,270 381,208 1 The maximum exposure to loss includes both the carry value of these investments and the related remaining commitments. In addition, tax credits that have been previously recognized in Other securities are subject to the risk of recapture, which we do not consider significant. We are contractually committed to make additional investments up to the remaining commitments outlined above; however, we do not have a future obligation to fund losses or debts on behalf of these investments. We have not provided any non-contractual financial support at any time during 2019 or 2018 . The following table sets forth gross summarized financial information for our other investments portfolio, including the portion not owned by us. The majority of these investments are carried under the equity method of accounting. The last line of the table below reflects our share of the aggregate income or loss, which is the portion included in our Financial Statements. As the majority of these investments report results to us on a one quarter lag, the summarized financial statement information for the three-month period ended March 31 is included in our Second Quarter results. This information is as follows: Income Statement Information Quarter ended June 30, Six Months ended June 30, ($ in millions) 2019 2018 2019 2018 Net investment income (loss) $ 174.1 (6.4 ) 24.1 (41.8 ) Realized gains 106.0 629.5 249.3 1,223.5 Net change in unrealized appreciation (depreciation) 2,223.7 (1,200.2 ) 2,778.0 (738.6 ) Net income (loss) $ 2,503.8 (577.1 ) 3,051.4 443.1 Insurance subsidiaries’ alternative investments income $ 7.3 1.9 7.9 3.5 (f) We have pledged certain AFS fixed income securities as collateral related to our relationships with the Federal Home Loan Bank of Indianapolis ("FHLBI") and the Federal Home Loan Bank of New York ("FHLBNY"). In addition, certain securities were on deposit with various state and regulatory agencies at June 30, 2019 to comply with insurance laws. We retain all rights regarding all securities pledged as collateral. The following table summarizes the market value of these securities at June 30, 2019 : ($ in millions) FHLBI Collateral FHLBNY Collateral State and Regulatory Deposits Total U.S. government and government agencies $ — — 22.8 22.8 Obligations of states and political subdivisions — — 3.9 3.9 Corporate securities — — 0.3 0.3 CMBS 7.3 21.1 — 28.4 RMBS 58.1 84.2 — 142.3 Total pledged as collateral $ 65.4 105.3 27.0 197.7 (g) We did not have exposure to any credit concentration risk of a single issuer greater than 10% of our stockholders' equity, other than certain U.S. government-backed investments, as of June 30, 2019 or December 31, 2018 . (h) The components of pre-tax net investment income earned were as follows: Quarter ended June 30, Six Months ended June 30, ($ in thousands) 2019 2018 2019 2018 Fixed income securities $ 50,907 43,774 99,940 85,815 Equity securities 1,740 1,820 3,380 3,797 Short-term investments 1,759 611 3,803 1,134 Other investments 7,494 2,094 8,154 3,657 Investment expenses (3,395 ) (2,746 ) (6,154 ) (5,619 ) Net investment income earned $ 58,505 45,553 109,123 88,784 (i) OTTI charges were $1.0 million and $2.8 million in Second Quarter 2019 and Second Quarter 2018 , respectively, and $ 1.1 million and $ 4.0 million in Six Months 2019 and Six Months 2018, respectively. All of these charges were related to securities for which we had the intent to sell. For a discussion of our evaluation for OTTI, refer to Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2018 Annual Report. (j) Net realized and unrealized gains and losses (excluding OTTI charges) for Second Quarter 2019 and 2018 included the following: Quarter ended June 30, Six Months ended June 30, ($ in thousands) 2019 2018 2019 2018 Net realized gains (losses) on the disposals of securities: Fixed income securities $ 2,061 (1,174 ) 3,204 (4,509 ) Equity securities 851 1,226 3,131 9,295 Short-term investments 1 2 15 (1 ) Other investments (30 ) — (23 ) — Net realized gains on the disposal of securities 2,883 54 6,327 4,785 OTTI charges (971 ) (2,821 ) (1,075 ) (4,033 ) Net realized gains (losses) 1,912 (2,767 ) 5,252 752 Unrealized gains (losses) recognized in income on equity securities 2,115 1,115 12,226 (12,953 ) Total net realized and unrealized investment gains (losses) $ 4,027 (1,652 ) $ 17,478 (12,201 ) Unrealized gains (losses) recognized in income on equity securities, as reflected in the table above, include the following: Quarter ended June 30, Six Months ended June 30, ($ in thousands) 2019 2018 2019 2018 Unrealized gains (losses) recognized in income on equity securities: On securities remaining in our portfolio at June 30, 2019 $ 2,394 2,301 11,817 (2,662 ) On securities sold in each respective period (279 ) (1,186 ) 409 (10,291 ) Total unrealized gains (losses) recognized in income on equity securities $ 2,115 1,115 $ 12,226 (12,953 ) The components of net realized gains on disposals of securities for the periods indicated were as follows: Quarter ended June 30, Six Months ended June 30, ($ in thousands) 2019 2018 2019 2018 HTM fixed income securities Gains $ 1 — 1 2 Losses (15 ) — (15 ) — AFS fixed income securities Gains 2,643 1,971 4,487 4,594 Losses (568 ) (3,145 ) (1,269 ) (9,105 ) Equity securities Gains 958 1,226 3,238 9,625 Losses (107 ) — (107 ) (330 ) Short-term investments Gains 2 2 16 3 Losses (1 ) — (1 ) (4 ) Other investments Gains — — 7 — Losses (30 ) — (30 ) — Total net realized gains on disposals of securities $ 2,883 54 6,327 4,785 Realized gains and losses on the sale of investments are determined on the basis of the cost of the specific investments sold. Proceeds from the sales of AFS fixed income securities were $153.7 million and $262.9 million in Second Quarter 2019 and Second Quarter 2018 , respectively, and $ 372.2 million and $ 938.3 million in Six Months 2019 and Six Months 2018 respectively. Proceeds from the sales of equity securities were $26.4 million and $2.9 million in Second Quarter 2019 and Second Quarter 2018 , respectively, and $ 30.1 million and $ 43.6 million in Six Months 2019 and Six Months 2018 respectively. |
Indebtedness
Indebtedness | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Indebtedness | Indebtedness The table below provides a summary of our outstanding debt at June 30, 2019 and December 31, 2018: Outstanding Debt Issuance Date Maturity Date Interest Rate Original Amount 2019 Carry Value ($ in thousands) Debt Discount and Unamortized Issuance Costs June 30, 2019 December 31, 2018 Description Long term Issuance: Senior Notes 3/1/2019 3/1/2049 5.375 % $ 300,000 9,141 290,859 — Redemption: Senior Notes 2/8/2013 2/9/2043 5.875 % 185,000 — — 180,771 Other Outstanding: FHLBI 12/16/2016 12/16/2026 3.03 % 60,000 — 60,000 60,000 FHLBNY 8/15/2016 8/16/2021 1.56 % 25,000 — 25,000 25,000 FHLBNY 7/21/2016 7/21/2021 1.61 % 25,000 — 25,000 25,000 Senior Notes 11/3/2005 11/1/2035 6.70 % 100,000 903 99,097 99,069 Senior Notes 11/16/2004 11/15/2034 7.25 % 50,000 287 49,713 49,700 Finance lease obligations 1 1,109 — Total long-term debt 10,331 550,778 439,540 1 Concurrent with the adoption of ASU 2016-02 discussed in Note 2. "Adoption of Accounting Pronouncements," finance lease obligations are now captured in Long-term debt on our Consolidated Balance Sheets. Short-Term Debt Activity On March 7, 2019, Selective Insurance Company of America (“SICA”) borrowed short-term funds of $50 million from the FHLBNY at an interest rate of 2.64% . This borrowing was repaid on March 28, 2019. Long-Term Debt Activity In the first quarter of 2019, we issued $300 million of 5.375% Senior Notes due 2049 at a discount of $5.9 million which, when coupled with debt issuance costs of approximately $3.3 million , resulted in net proceeds from the offering of $290.8 million . The 5.375% Senior Notes will pay interest on March 1 and September 1 of each year, beginning on September 1, 2019. A portion of the proceeds from this debt issuance was used to fully redeem the $185 million aggregate principal amount of our 5.875% Senior Notes due 2043 , with the remaining $106 million being used for general corporate purposes. The 5.875% Senior Notes had pre-tax debt retirement costs of $4.2 million , or $3.3 million after tax, which was recorded in Interest expense on the Consolidated Statements of Income in the first quarter of 2019. For detailed information on our indebtedness, see Note 10. "Indebtedness" in Item 8. "Financial Statements and Supplementary Data." of our 2018 Annual Report. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The financial assets in our investment portfolio are primarily measured at fair value as disclosed on the Consolidated Balance Sheets. The following table presents the carrying amounts and estimated fair values of our financial liabilities as of June 30, 2019 and December 31, 2018 : June 30, 2019 December 31, 2018 ($ in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Financial Liabilities Long-term debt: 7.25% Senior Notes 49,909 63,519 49,907 57,032 6.70% Senior Notes 99,471 118,482 99,462 107,075 5.875% Senior Notes — — 185,000 177,230 5.375% Senior Notes 294,116 329,785 — — 1.61% borrowings from FHLBNY 25,000 24,756 25,000 24,218 1.56% borrowings from FHLBNY 25,000 24,720 25,000 24,162 3.03% borrowings from FHLBI 60,000 62,393 60,000 58,905 Subtotal long-term debt 553,496 623,655 444,369 448,622 Unamortized debt issuance costs (3,827 ) (4,829 ) Finance lease obligations 1,109 — Total long-term debt 550,778 439,540 For a discussion of our long-term debt activity in 2019, see Note 5. "Indebtedness" and for a discussion of the fair value hierarchy and techniques used to value our financial assets and liabilities, refer to Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2018 Annual Report. The following tables provide quantitative disclosures of our financial assets that were measured and recorded at fair value at June 30, 2019 and December 31, 2018 : June 30, 2019 Fair Value Measurements Using ($ in thousands) Assets Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) 1 Significant Other Observable Inputs (Level 2) 1 Significant Unobservable Inputs (Level 3) Description Measured on a recurring basis: AFS fixed income securities: U.S. government and government agencies $ 147,124 71,406 75,718 — Foreign government 21,489 — 21,489 — Obligations of states and political subdivisions 1,111,017 — 1,111,017 — Corporate securities 1,793,537 — 1,777,137 16,400 CLO and other ABS 767,604 — 750,184 17,420 CMBS 565,593 — 565,593 — RMBS 1,351,534 — 1,351,534 — Total AFS fixed income securities 5,757,898 71,406 5,652,672 33,820 Equity securities: Common stock 2 154,505 108,916 — — Preferred stock 3,014 3,014 — — Total equity securities 157,519 111,930 — — Short-term investments 291,365 289,959 1,406 — Total assets measured at fair value $ 6,206,782 473,295 5,654,078 33,820 December 31, 2018 Fair Value Measurements Using ($ in thousands) Assets Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) 1 Significant Other Observable Inputs (Level 2) 1 Significant Unobservable Inputs (Level 3) Description Measured on a recurring basis: AFS fixed income securities: U.S. government and government agencies $ 121,310 78,381 42,929 — Foreign government 23,131 — 23,131 — Obligations of states and political subdivisions 1,138,469 — 1,138,469 — Corporate securities 1,617,408 — 1,617,408 — CLO and other ABS 717,362 — 709,953 7,409 CMBS 527,078 — 527,078 — RMBS 1,128,342 — 1,128,342 — Total AFS fixed income securities 5,273,100 78,381 5,187,310 7,409 Equity securities: Common stock 2 144,727 107,397 — — Preferred stock 2,912 2,912 — — Total equity securities 147,639 110,309 — — Short-term investments 323,864 321,370 2,494 — Total assets measured at fair value $ 5,744,603 510,060 5,189,804 7,409 1 There were no transfers of securities between Level 1 and Level 2. 2 Investments amounting to $45.6 million at June 30, 2019 , and $23.7 million at December 31, 2018 , were measured at fair value using net asset value per share (or its practical expedient) and have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to total assets measured at fair value. The following table provides a summary of Level 3 changes in Six Months 2019 : June 30, 2019 ($ in thousands) Corporate Securities CLO and Other ABS Total Fair value, December 31, 2018 — 7,409 7,409 Total net (losses) gains for the period included in: OCI (19 ) (118 ) (137 ) Net income — 244 244 Purchases — 15,984 15,984 Sales — — — Issuances — — — Settlements — (40 ) (40 ) Transfers into Level 3 16,419 13,603 30,022 Transfers out of Level 3 — (19,662 ) (19,662 ) Fair value, June 30, 2019 16,400 17,420 33,820 There were no material changes in the fair value of securities measured using Level 3 prices in Six Months 2018 . The following tables provide quantitative information regarding our financial assets and liabilities that were disclosed at fair value at June 30, 2019 and December 31, 2018 : June 30, 2019 Fair Value Measurements Using ($ in thousands) Assets/ Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial Assets HTM: Obligations of states and political subdivisions $ 14,503 — 14,503 — Corporate securities 19,352 — 19,352 — Total HTM fixed income securities $ 33,855 — 33,855 — Financial Liabilities Long-term debt: 7.25% Senior Notes $ 63,519 — 63,519 — 6.70% Senior Notes 118,482 — 118,482 — 5.375% Senior Notes 329,785 — 329,785 — 1.61% borrowings from FHLBNY 24,756 — 24,756 — 1.56% borrowings from FHLBNY 24,720 — 24,720 — 3.03% borrowings from FHLBI 62,393 — 62,393 — Total long-term debt $ 623,655 — 623,655 — December 31, 2018 Fair Value Measurements Using ($ in thousands) Assets/ Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial Assets HTM: Obligations of states and political subdivisions $ 17,969 — 17,969 — Corporate securities 20,348 — 20,348 — Total HTM fixed income securities $ 38,317 — 38,317 — Financial Liabilities Long-term debt: 7.25% Senior Notes $ 57,032 — 57,032 — 6.70% Senior Notes 107,075 — 107,075 — 5.875% Senior Notes 177,230 177,230 — — 1.61% borrowings from FHLBNY 24,218 — 24,218 — 1.56% borrowings from FHLBNY 24,162 — 24,162 — 3.03% borrowings from FHLBI 58,905 — 58,905 — Total long-term debt $ 448,622 177,230 271,392 — |
Reinsurance
Reinsurance | 6 Months Ended |
Jun. 30, 2019 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | Reinsurance The following table contains a listing of direct, assumed, and ceded reinsurance amounts for premiums written, premiums earned, and loss and loss expenses incurred for the periods indicated. For more information concerning reinsurance, refer to Note 8. “Reinsurance” in Item 8. “Financial Statements and Supplementary Data.” of our 2018 Annual Report. Quarter ended June 30, Six Months ended June 30, ($ in thousands) 2019 2018 2019 2018 Premiums written: Direct $ 807,367 753,363 $ 1,573,761 1,467,597 Assumed 5,333 6,536 11,888 12,807 Ceded (111,303 ) (104,651 ) (211,305 ) (200,596 ) Net $ 701,397 655,248 $ 1,374,344 1,279,808 Premiums earned: Direct $ 740,348 696,723 $ 1,468,385 1,380,456 Assumed 5,742 6,612 12,304 12,736 Ceded (103,471 ) (98,499 ) (205,497 ) (196,528 ) Net $ 642,619 604,836 $ 1,275,192 1,196,664 Loss and loss expenses incurred: Direct $ 435,700 391,014 $ 860,357 811,930 Assumed 4,348 2,364 9,613 10,368 Ceded (59,064 ) (27,050 ) (102,407 ) (71,029 ) Net $ 380,984 366,328 $ 767,563 751,269 Ceded premiums and losses related to our participation in the NFIP, under which 100% of our flood premiums, losses, and loss expenses are ceded to the NFIP, are as follows: Ceded to NFIP Quarter ended June 30, Six Months ended June 30, ($ in thousands) 2019 2018 2019 2018 Ceded premiums written $ (71,574 ) (66,341 ) $ (131,587 ) (123,010 ) Ceded premiums earned (63,804 ) (60,143 ) (126,067 ) (119,134 ) Ceded loss and loss expenses incurred (21,063 ) (10,261 ) (34,749 ) (25,980 ) Excluding the impact of our participation in the NFIP, ceded loss and loss expenses incurred increased in Second Quarter and Six Months 2019 compared to the respective prior year periods, due to one significant fire loss in Second Quarter 2019 that added $17.4 million to ceded loss and loss expenses. |
Reserve for Loss and Loss Expen
Reserve for Loss and Loss Expense | 6 Months Ended |
Jun. 30, 2019 | |
Insurance Loss Reserves [Abstract] | |
Reserve for Loss and Loss Expense | Reserve for Loss and Loss Expense The table below provides a roll forward of reserve for loss and loss expense balances: Six Months ended June 30, ($ in thousands) 2019 2018 Gross reserve for loss and loss expense, at beginning of year $ 3,893,868 3,771,240 Less: reinsurance recoverable on unpaid loss and loss expense, at beginning of year 537,388 585,855 Net reserve for loss and loss expense, at beginning of year 3,356,480 3,185,385 Incurred loss and loss expense for claims occurring in the: Current year 783,938 756,855 Prior years (16,375 ) (5,586 ) Total incurred loss and loss expense 767,563 751,269 Paid loss and loss expense for claims occurring in the: Current year 210,374 214,169 Prior years 442,820 457,441 Total paid loss and loss expense 653,194 671,610 Net reserve for loss and loss expense, at end of period 3,470,849 3,265,044 Add: Reinsurance recoverable on unpaid loss and loss expense, at end of period 556,203 539,321 Gross reserve for loss and loss expense at end of period $ 4,027,052 3,804,365 Prior year reserve development in Six Months 2019 of $16.4 million was primarily driven by favorable casualty reserve development of $20.0 million in our workers compensation line of business and $7.0 million in our general liability line of business. This was partially offset by $10.6 million of unfavorable property reserve development in Six Months 2019. Prior year reserve development in Six Months 2018 of $5.6 million included $12.0 million of favorable casualty reserve development, partially offset by $6.4 million of unfavorable property reserve development. The favorable casualty reserve development included $33.0 million of development in our workers compensation line of business, partially offset by $15.0 million of unfavorable reserve development in our commercial automobile line of business and $6.0 million in our excess and surplus ("E&S") casualty lines. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The results of our four reportable segments are evaluated as follows: • Our Standard Commercial Lines, Standard Personal Lines, and E&S Lines are evaluated based on before and after-tax underwriting results (net premiums earned, incurred loss and loss expense, policyholder dividends, policy acquisition costs, and other underwriting expenses), return on equity ("ROE") contribution, and combined ratios. • Our Investments segment is primarily evaluated based on after-tax net investment income and its ROE contribution. Also included in Investment segment results are after-tax net realized and unrealized gains and losses, which are not included in non-GAAP operating income. In computing the results of each segment, we do not make adjustments for interest expense or corporate expenses. We do not maintain separate investment portfolios for the segments and therefore, do not allocate assets to the segments. The following summaries present revenues (net investment income and net realized and unrealized gains on investments in the case of the Investments segment) and pre-tax income for the individual segments: Revenue by Segment Quarter ended June 30, Six Months ended June 30, ($ in thousands) 2019 2018 2019 2018 Standard Commercial Lines: Net premiums earned: Commercial automobile $ 136,338 122,104 267,524 240,335 Workers compensation 78,464 80,021 157,179 158,844 General liability 164,793 153,002 326,318 302,831 Commercial property 87,136 82,162 173,203 162,488 Businessowners’ policies 26,172 25,829 52,253 51,420 Bonds 8,967 8,335 17,871 16,469 Other 4,779 4,559 9,485 8,989 Miscellaneous income 2,718 2,882 4,762 4,708 Total Standard Commercial Lines revenue 509,367 478,894 1,008,595 946,084 Standard Personal Lines: Net premiums earned: Personal automobile 43,388 41,810 86,551 82,252 Homeowners 32,013 32,223 64,143 64,424 Other 1,712 1,644 3,726 3,257 Miscellaneous income 335 297 611 649 Total Standard Personal Lines revenue 77,448 75,974 155,031 150,582 E&S Lines: Net premiums earned: Casualty lines 44,756 39,379 89,284 77,919 Property lines 14,101 13,768 27,655 27,436 Miscellaneous income — — — 1 Total E&S Lines revenue 58,857 53,147 116,939 105,356 Investments: Net investment income 58,505 45,553 109,123 88,784 Net realized and unrealized investment gains (losses) 4,027 (1,652 ) 17,478 (12,201 ) Total Investments revenue 62,532 43,901 126,601 76,583 Total revenues $ 708,204 651,916 1,407,166 1,278,605 Income Before and After Federal Income Tax Quarter ended June 30, Six Months ended June 30, ($ in thousands) 2019 2018 2019 2018 Standard Commercial Lines: Underwriting gain, before federal income tax $ 37,143 41,016 62,958 47,820 Underwriting gain, after federal income tax 29,343 32,403 49,737 37,778 Combined ratio 92.7 % 91.4 93.7 94.9 ROE contribution 5.9 7.8 5.2 4.5 Standard Personal Lines: Underwriting gain, before federal income tax $ 4,538 4,805 7,705 3,299 Underwriting gain, after federal income tax 3,585 3,796 6,087 2,606 Combined ratio 94.1 % 93.7 95.0 97.8 ROE contribution 0.7 0.9 0.6 0.3 E&S Lines: Underwriting gain (loss), before federal income tax $ 2,944 (7,789 ) 7,523 (8,354 ) Underwriting gain (loss), after federal income tax 2,326 (6,154 ) 5,943 (6,600 ) Combined ratio 95.0 % 114.7 93.6 107.9 ROE contribution 0.5 (1.5 ) 0.6 (0.8 ) Investments: Net investment income $ 58,505 45,553 109,123 88,784 Net realized and unrealized investment gains (losses) 4,027 (1,652 ) 17,478 (12,201 ) Total investment segment income, before federal income tax 62,532 43,901 126,601 76,583 Tax on investment segment income 11,729 7,617 23,849 12,843 Total investment segment income, after federal income tax $ 50,803 36,284 102,752 63,740 ROE contribution of after-tax net investment income 9.6 9.0 9.2 8.6 Reconciliation of Segment Results to Income Before Federal Income Tax Quarter ended June 30, Six Months ended June 30, ($ in thousands) 2019 2018 2019 2018 Underwriting gain (loss) Standard Commercial Lines $ 37,143 41,016 62,958 47,820 Standard Personal Lines 4,538 4,805 7,705 3,299 E&S Lines 2,944 (7,789 ) 7,523 (8,354 ) Investment income 62,532 43,901 126,601 76,583 Total all segments 107,157 81,933 204,787 119,348 Interest expense (7,366 ) (6,125 ) (18,892 ) (12,277 ) Corporate expenses (9,566 ) (3,283 ) (21,976 ) (14,615 ) Income, before federal income tax $ 90,225 72,525 163,919 92,456 |
Retirement Plans
Retirement Plans | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Retirement Plans | Retirement Plans SICA's primary pension plan is the Retirement Income Plan for Selective Insurance Company of America (the “Pension Plan”). SICA also sponsors the Supplemental Excess Retirement Plan (the “Excess Plan”) and a life insurance benefit plan. All plans are closed to new entrants and benefits ceased accruing under the Pension Plan and the Excess Plan after March 31, 2016 . For more information concerning SICA's retirement plans, refer to Note 14. “Retirement Plans” in Item 8. “Financial Statements and Supplementary Data.” of our 2018 Annual Report. The following tables provide information regarding the Pension Plan: Pension Plan Pension Plan Quarter ended June 30, Six Months ended June 30, ($ in thousands) 2019 2018 2019 2018 Net Periodic Pension Cost (Benefit): Interest cost $ 3,376 3,095 6,753 6,190 Expected return on plan assets (5,278 ) (5,681 ) (10,557 ) (11,363 ) Amortization of unrecognized net actuarial loss 643 493 1,287 987 Total net periodic pension cost (benefit) 1 $ (1,259 ) (2,093 ) (2,517 ) (4,186 ) 1 The components of net periodic pension cost (benefit) are included within "Loss and loss expense incurred" and "Other insurance expenses" on the Consolidated Statements of Income. Pension Plan Six Months ended June 30, 2019 2018 Weighted-Average Expense Assumptions: Discount rate 4.46 % 3.78 % Effective interest rate for calculation of interest cost 4.12 3.46 Expected return on plan assets 6.50 6.36 |
Comprehensive Income
Comprehensive Income | 6 Months Ended |
Jun. 30, 2019 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Comprehensive Income | Comprehensive Income The components of comprehensive income, both gross and net of tax, for Second Quarter and Six Months Ended 2019 and 2018 were as follows: Second Quarter 2019 ($ in thousands) Gross Tax Net Net income $ 90,225 17,959 72,266 Components of OCI: Unrealized gains on investment securities : Unrealized holding gains during the period 83,546 17,544 66,002 Amounts reclassified into net income: HTM securities (21 ) (4 ) (17 ) Realized gains on disposals and OTTI of AFS securities (1,300 ) (273 ) (1,027 ) Total unrealized gains on investment securities 82,225 17,267 64,958 Defined benefit pension and post-retirement plans: Amounts reclassified into net income: Net actuarial loss 664 140 524 Total defined benefit pension and post-retirement plans 664 140 524 Other comprehensive income 82,889 17,407 65,482 Comprehensive income $ 173,114 35,366 137,748 Second Quarter 2018 ($ in thousands) Gross Tax Net Net income $ 72,525 13,706 58,819 Components of other comprehensive loss: Unrealized losses on investment securities : Unrealized holding losses during the period (23,993 ) (5,038 ) (18,955 ) Amounts reclassified into net income: HTM securities (8 ) (2 ) (6 ) Realized losses on disposals and OTTI of AFS securities 2,870 603 2,267 Total unrealized losses on investment securities (21,131 ) (4,437 ) (16,694 ) Defined benefit pension and post-retirement plans: Amounts reclassified into net income: Net actuarial loss 531 111 420 Total defined benefit pension and post-retirement plans 531 111 420 Other comprehensive loss (20,600 ) (4,326 ) (16,274 ) Comprehensive income $ 51,925 9,380 42,545 Six Months 2019 ($ in thousands) Gross Tax Net Net income $ 163,919 30,305 133,614 Components of OCI: Unrealized gains on investment securities: Unrealized holding gains during the period 186,472 39,157 147,315 Amounts reclassified into net income: HTM securities (30 ) (6 ) (24 ) Realized gains on disposals and OTTI of AFS securities (2,377 ) (499 ) (1,878 ) Total unrealized gains on investment securities 184,065 38,652 145,413 Defined benefit pension and post-retirement plans: Amounts reclassified into net income: Net actuarial loss 1,328 279 1,049 Total defined benefit pension and post-retirement plans 1,328 279 1,049 Other comprehensive income 185,393 38,931 146,462 Comprehensive income $ 349,312 69,236 280,076 Six Months 2018 ($ in thousands) Gross Tax Net Net income $ 92,456 14,712 77,744 Components of other comprehensive loss: Unrealized losses on investment securities: Unrealized holding losses during the period (109,308 ) (22,955 ) (86,353 ) Amounts reclassified into net income: HTM securities (20 ) (4 ) (16 ) Realized losses on disposals and OTTI of AFS securities 7,419 1,558 5,861 Total unrealized losses on investment securities (101,909 ) (21,401 ) (80,508 ) Defined benefit pension and post-retirement plans: Amounts reclassified into net income: Net actuarial loss 1,063 223 840 Total defined benefit pension and post-retirement plans 1,063 223 840 Other comprehensive loss (100,846 ) (21,178 ) (79,668 ) Comprehensive loss $ (8,390 ) (6,466 ) (1,924 ) The balances of, and changes in, each component of AOCI (net of taxes) as of June 30, 2019 were as follows: June 30, 2019 Defined Benefit Pension and Post-Retirement Plans Net Unrealized Gains (Losses) on Investment Securities Total AOCI ($ in thousands) OTTI Related HTM Related All Other Investments Subtotal Balance, December 31, 2018 $ (71 ) 71 1,888 1,888 (79,844 ) (77,956 ) OCI before reclassifications — — 147,315 147,315 — 147,315 Amounts reclassified from AOCI — (24 ) (1,878 ) (1,902 ) 1,049 (853 ) Net current period OCI — (24 ) 145,437 145,413 1,049 146,462 Balance, June 30, 2019 $ (71 ) 47 147,325 147,301 (78,795 ) 68,506 The reclassifications out of AOCI were as follows: Quarter ended June 30, Six Months ended June 30, Affected Line Item in the Unaudited Consolidated Statements of Income ($ in thousands) 2019 2018 2019 2018 HTM related Unrealized losses on HTM disposals $ (9 ) (7 ) (9 ) (6 ) Net realized and unrealized gains (losses) Amortization of net unrealized gains on HTM securities (12 ) (1 ) (21 ) (14 ) Net investment income earned (21 ) (8 ) (30 ) (20 ) Income before federal income tax 4 2 6 4 Total federal income tax expense (17 ) (6 ) (24 ) (16 ) Net income Realized (gains) losses on AFS and OTTI Realized (gains) losses on AFS disposals and OTTI (1,300 ) 2,870 (2,377 ) 7,419 Net realized and unrealized gains (losses) (1,300 ) 2,870 (2,377 ) 7,419 Income before federal income tax 273 (603 ) 499 (1,558 ) Total federal income tax expense (1,027 ) 2,267 (1,878 ) 5,861 Net income Defined benefit pension and post-retirement life plans Net actuarial loss 145 113 290 225 Loss and loss expense incurred 519 418 1,038 838 Other insurance expenses Total defined benefit pension and post-retirement life 664 531 1,328 1,063 Income before federal income tax (140 ) (111 ) (279 ) (223 ) Total federal income tax expense 524 420 1,049 840 Net income Total reclassifications for the period $ (520 ) 2,681 (853 ) 6,685 Net income |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases We have various operating leases for office space, equipment, and fleet vehicles. In addition, we have various finance leases for computer hardware. Such lease agreements, which expire at various dates through 2030, are generally renewed or replaced by similar leases. We determine if an arrangement is a lease on the commencement date of the contract. Lease assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. The lease asset and liability are measured by the present value of the future minimum lease payments over the lease term. Our fleet vehicle leases include a residual value guarantee; however, it is not probable of being owed. Therefore, there is no impact to the lease liability or lease asset. To measure the present value, the discount rate available in the contract is used. If the discount rate is not readily determinable, our incremental borrowing rate is used. The lease asset is then adjusted to exclude lease incentives. We recognize variable lease payments in the period in which the obligation for those payments is incurred. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense is calculated using the straight-line method. Upon adoption of ASU 2016-02 on January 1, 2019, we recorded operating lease right-of-use assets of $20.7 million with related lease liabilities of $21.0 million . The differential of $0.3 million was recognized, on an after-tax basis, as a cumulative-effect adjustment to the opening balance of retained earnings as of January 1, 2019. Financing lease right-of-use assets and the related lease liabilities were $0.9 million as of January 1, 2019. See Note 2. "Adoption of Accounting Pronouncements" in this Form 10-Q for additional information regarding ASU 2016-02 and accounting policy elections made. The components of lease expense in Second Quarter and Six Months 2019 were as follows: ($ in thousands) Quarter ended June 30, 2019 Six Months ended June 30, 2019 Operating lease cost, included in Other insurance expenses on the Consolidated Statements of Income $ 2,245 $ 4,397 Finance lease cost: Amortization of assets, included in Other insurance expenses on the Consolidated Statements of Income 315 599 Interest on lease liabilities, included in Interest expense on the Consolidated Statements of Income 7 7 Total finance lease cost 322 606 Variable lease cost, included in Other insurance expenses on the Consolidated Statements of Income (120 ) 668 Short-term lease cost, included in Other insurance expenses on the Consolidated Statements of Income 437 1,175 The following table provides supplemental information regarding our operating and finance leases. June 30, 2019 Weighted-average remaining lease term Operating leases 6 years Finance leases 2 Weighted-average discount rate Operating leases 3.4 % Finance leases 1 1.8 1 Prior to adoption of ASU 2016-02, our historical capital lease liability and asset were measured using an un-discounted cash flow stream due to immateriality of the capital lease population. Operating and finance lease asset and liability balances are included within the following line items on the Consolidated Balance Sheets: ($ in thousands) June 30, 2019 Operating leases Other assets $ 29,632 Other liabilities 30,336 Finance leases Property and equipment - at cost, net of accumulated depreciation and amortization 1,106 Long-term debt 1,109 At June 30, 2019 , the maturities of our lease liabilities were as follows: ($ in thousands) Finance Leases Operating Leases Total Year ended December 31, 2019 (excluding the six months ended June 30, 2019) 389 4,044 4,433 2020 448 7,737 8,185 2021 244 5,483 5,727 2022 53 3,912 3,965 2023 — 2,900 2,900 Thereafter — 9,698 9,698 Total lease payments 1,134 33,774 34,908 Less: imputed interest 25 3,438 3,463 Total lease liabilities $ 1,109 30,336 31,445 At December 31, 2018, the maturities of our lease liabilities for capital and operating leases were as follows: ($ in thousands) Capital Leases Operating Leases Total 2019 $ 728 7,762 8,490 2020 141 7,355 7,496 2021 22 5,083 5,105 2022 — 3,641 3,641 2023 — 2,900 2,900 Thereafter — 9,698 9,698 Total minimum payment required $ 891 36,439 37,330 Refer to Note. 3 "Statements of Cash Flows" in this Form 10-Q for supplemental cash and non-cash transactions included in the measurement of operating and finance lease liabilities. |
Litigation
Litigation | 6 Months Ended |
Jun. 30, 2019 | |
Loss Contingency, Information about Litigation Matters [Abstract] | |
Litigation | Litigation In the ordinary course of conducting business, we are named as defendants in various legal proceedings. Most of these proceedings are claims litigation involving our ten insurance subsidiaries ("Insurance Subsidiaries") as either: (i) liability insurers defending or providing indemnity for third-party claims brought against our customers; or (ii) insurers defending first-party coverage claims brought against them. We account for such activity through the establishment of unpaid loss and loss expense reserves. We expect that any potential ultimate liability in such ordinary course claims litigation will not be material to our consolidated financial condition, results of operations, or cash flows after consideration of provisions made for potential losses and costs of defense. From time to time, our Insurance Subsidiaries also are named as defendants in other legal actions, some of which assert claims for substantial amounts. These actions include, among others, putative class actions seeking certification of a state or national class. Such putative class actions have alleged, for example, improper reimbursement of medical providers paid under workers compensation and personal and commercial automobile insurance policies. Similarly, our Insurance Subsidiaries are also named from time-to-time in individual actions seeking extra-contractual damages, punitive damages, or penalties, some of which allege bad faith in the handling of insurance claims. We believe that we have valid defenses to these cases. We expect that any potential ultimate liability in any such lawsuit will not be material to our consolidated financial condition, after consideration of provisions made for estimated losses. Nonetheless, given the inherent unpredictability of litigation and the large or indeterminate amounts sought in certain of these actions, an adverse outcome in certain matters could possibly have a material adverse effect on our consolidated results of operations or cash flows in particular quarterly or annual periods. As of June 30, 2019 , we do not believe the Company was involved in any legal action that could have a material adverse effect on our consolidated financial condition, results of operations, or cash flows. |
Statements of Cash Flow (Tables
Statements of Cash Flow (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | Six Months ended June 30, ($ in thousands) 2019 2018 Cash paid during the period for: Interest $ 10,512 12,064 Federal income tax 28,000 4,193 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 1 3,994 — Operating cash flows from financing leases 7 — Financing cash flows from finance leases 596 1,333 Non-cash items: Corporate actions related to fixed income securities, AFS 2 25,104 32,133 Assets acquired under finance lease arrangements 814 — Assets acquired under operating lease arrangements 1 12,881 — Non-cash purchase of property and equipment — 18 1 Upon adoption of ASU 2016-02, effective January 1, 2019, we are required to disclose cash paid for amounts included in the measurement of operating lease liabilities, as well as supplemental non-cash information on operating lease liabilities arising from obtaining operating lease assets. 2 Examples of such corporate actions include exchanges, non-cash acquisitions, and stock splits. |
Schedule of Cash and Restricted Cash | ($ in thousands) June 30, 2019 December 31, 2018 Cash $ 504 505 Restricted cash 7,139 16,414 Total cash and restricted cash shown in the Statements of Cash Flows $ 7,643 16,919 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments [Line Items] | |
Schedule of Available-for-sale Securities | June 30, 2019 ($ in thousands) Cost/ Amortized Cost Unrealized Gains Unrealized Losses Fair Value AFS fixed income securities: U.S. government and government agencies $ 143,461 3,683 (20 ) 147,124 Foreign government 20,995 494 — 21,489 Obligations of states and political subdivisions 1,056,507 54,516 (6 ) 1,111,017 Corporate securities 1,733,319 64,620 (4,402 ) 1,793,537 Collateralized loan obligations and other asset-backed securities ("CLO and other ABS") 762,896 8,649 (3,941 ) 767,604 Commercial mortgage-backed securities ("CMBS") 541,093 24,737 (237 ) 565,593 Residential mortgage-backed securities (“RMBS”) 1,313,220 38,588 (274 ) 1,351,534 Total AFS fixed income securities $ 5,571,491 195,287 (8,880 ) 5,757,898 December 31, 2018 ($ in thousands) Cost/ Amortized Cost Unrealized Gains Unrealized Losses Fair Value AFS fixed income securities: U.S. government and government agencies $ 120,092 1,810 (592 ) 121,310 Foreign government 23,202 36 (107 ) 23,131 Obligations of states and political subdivisions 1,121,615 19,485 (2,631 ) 1,138,469 Corporate securities 1,639,852 5,521 (27,965 ) 1,617,408 CLO and other ABS 720,193 4,112 (6,943 ) 717,362 CMBS 527,409 3,417 (3,748 ) 527,078 RMBS 1,118,435 12,988 (3,081 ) 1,128,342 Total AFS fixed income securities $ 5,270,798 47,369 (45,067 ) 5,273,100 |
Schedule of Fair Value and Gross Pre-Tax Net Unrealized Loss of Securities by Length of Time, AFS | June 30, 2019 Less than 12 months 12 months or longer Total ($ in thousands) Fair Value Unrealized Losses 1 Fair Value Unrealized Losses 1 Fair Value Unrealized 1 AFS fixed income securities: U.S. government and government agencies $ — — 5,508 (20 ) 5,508 (20 ) Obligations of states and political subdivisions 739 (6 ) — — 739 (6 ) Corporate securities 94,964 (2,260 ) 46,527 (2,142 ) 141,491 (4,402 ) CLO and other ABS 231,823 (2,318 ) 151,572 (1,623 ) 383,395 (3,941 ) CMBS 59,639 (183 ) 24,882 (54 ) 84,521 (237 ) RMBS 34,107 (135 ) 14,691 (139 ) 48,798 (274 ) Total AFS fixed income securities $ 421,272 (4,902 ) 243,180 (3,978 ) 664,452 (8,880 ) December 31, 2018 Less than 12 months 12 months or longer Total ($ in thousands) Fair Value Unrealized Losses 1 Fair Value Unrealized Losses 1 Fair Value Unrealized 1 AFS fixed income securities: U.S. government and government agencies $ 6,693 (174 ) 23,163 (418 ) 29,856 (592 ) Foreign government 12,208 (93 ) 1,482 (14 ) 13,690 (107 ) Obligations of states and political subdivisions 196,798 (2,074 ) 42,821 (557 ) 239,619 (2,631 ) Corporate securities 1,041,952 (23,649 ) 78,953 (4,316 ) 1,120,905 (27,965 ) CLO and other ABS 516,106 (6,750 ) 16,800 (193 ) 532,906 (6,943 ) CMBS 229,338 (2,548 ) 66,294 (1,200 ) 295,632 (3,748 ) RMBS 139,338 (1,660 ) 45,661 (1,421 ) 184,999 (3,081 ) Total AFS fixed income securities $ 2,142,433 (36,948 ) 275,174 (8,119 ) 2,417,607 (45,067 ) 1 Gross unrealized losses include non-OTTI unrealized amounts and OTTI losses recognized in AOCI. |
Schedule of Fixed Maturity Securities By Contractual Maturities | AFS HTM ($ in thousands) Fair Value Carrying Value Fair Value Due in one year or less $ 280,140 9,480 9,526 Due after one year through five years 2,237,395 16,860 18,109 Due after five years through 10 years 3,065,577 6,024 6,220 Due after 10 years 174,786 — — Total fixed income securities $ 5,757,898 32,364 33,855 |
Schedule of Other Investment Portfolio By Strategy And Remaining Commitment Amount and Maximum Exposure to Loss Associated With Each Strategy | Other Investments June 30, 2019 December 31, 2018 ($ in thousands) Carrying Value Remaining Commitment Maximum Exposure to Loss 1 Carrying Value Remaining Commitment Maximum Exposure to Loss 1 Alternative Investments Private equity $ 99,567 95,805 195,372 84,352 93,688 178,040 Private credit 35,103 113,133 148,236 41,682 81,453 123,135 Real assets 23,104 22,880 45,984 27,862 27,129 54,991 Total alternative investments 157,774 231,818 389,592 153,896 202,270 356,166 Other securities 24,335 — 24,335 25,042 — 25,042 Total other investments $ 182,109 231,818 413,927 178,938 202,270 381,208 1 The maximum exposure to loss includes both the carry value of these investments and the related remaining commitments. In addition, tax credits that have been previously recognized in Other securities are subject to the risk of recapture, which we do not consider significant. |
Schedule of Aggregated Summarized Income Statement Financial Information For Partnerships In Our Alternative Investment Portfolio | Income Statement Information Quarter ended June 30, Six Months ended June 30, ($ in millions) 2019 2018 2019 2018 Net investment income (loss) $ 174.1 (6.4 ) 24.1 (41.8 ) Realized gains 106.0 629.5 249.3 1,223.5 Net change in unrealized appreciation (depreciation) 2,223.7 (1,200.2 ) 2,778.0 (738.6 ) Net income (loss) $ 2,503.8 (577.1 ) 3,051.4 443.1 Insurance subsidiaries’ alternative investments income $ 7.3 1.9 7.9 3.5 |
Schedule of Securities Pledged As Collateral | ($ in millions) FHLBI Collateral FHLBNY Collateral State and Regulatory Deposits Total U.S. government and government agencies $ — — 22.8 22.8 Obligations of states and political subdivisions — — 3.9 3.9 Corporate securities — — 0.3 0.3 CMBS 7.3 21.1 — 28.4 RMBS 58.1 84.2 — 142.3 Total pledged as collateral $ 65.4 105.3 27.0 197.7 |
Schedule of Pre-Tax Net Investment Income Earned | Quarter ended June 30, Six Months ended June 30, ($ in thousands) 2019 2018 2019 2018 Fixed income securities $ 50,907 43,774 99,940 85,815 Equity securities 1,740 1,820 3,380 3,797 Short-term investments 1,759 611 3,803 1,134 Other investments 7,494 2,094 8,154 3,657 Investment expenses (3,395 ) (2,746 ) (6,154 ) (5,619 ) Net investment income earned $ 58,505 45,553 109,123 88,784 |
Schedule of Components of Net Realized and Unrealized Gains and Losses Excluding OTTI Charges | Quarter ended June 30, Six Months ended June 30, ($ in thousands) 2019 2018 2019 2018 Net realized gains (losses) on the disposals of securities: Fixed income securities $ 2,061 (1,174 ) 3,204 (4,509 ) Equity securities 851 1,226 3,131 9,295 Short-term investments 1 2 15 (1 ) Other investments (30 ) — (23 ) — Net realized gains on the disposal of securities 2,883 54 6,327 4,785 OTTI charges (971 ) (2,821 ) (1,075 ) (4,033 ) Net realized gains (losses) 1,912 (2,767 ) 5,252 752 Unrealized gains (losses) recognized in income on equity securities 2,115 1,115 12,226 (12,953 ) Total net realized and unrealized investment gains (losses) $ 4,027 (1,652 ) $ 17,478 (12,201 ) |
Schedule of Realized Gains and Losses on Disposals of Securities | Quarter ended June 30, Six Months ended June 30, ($ in thousands) 2019 2018 2019 2018 HTM fixed income securities Gains $ 1 — 1 2 Losses (15 ) — (15 ) — AFS fixed income securities Gains 2,643 1,971 4,487 4,594 Losses (568 ) (3,145 ) (1,269 ) (9,105 ) Equity securities Gains 958 1,226 3,238 9,625 Losses (107 ) — (107 ) (330 ) Short-term investments Gains 2 2 16 3 Losses (1 ) — (1 ) (4 ) Other investments Gains — — 7 — Losses (30 ) — (30 ) — Total net realized gains on disposals of securities $ 2,883 54 6,327 4,785 |
Equity Securities [Member] | |
Investments [Line Items] | |
Schedule of Components of Net Realized and Unrealized Gains and Losses Excluding OTTI Charges | Quarter ended June 30, Six Months ended June 30, ($ in thousands) 2019 2018 2019 2018 Unrealized gains (losses) recognized in income on equity securities: On securities remaining in our portfolio at June 30, 2019 $ 2,394 2,301 11,817 (2,662 ) On securities sold in each respective period (279 ) (1,186 ) 409 (10,291 ) Total unrealized gains (losses) recognized in income on equity securities $ 2,115 1,115 $ 12,226 (12,953 ) |
Indebtedness (Tables)
Indebtedness (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | Outstanding Debt Issuance Date Maturity Date Interest Rate Original Amount 2019 Carry Value ($ in thousands) Debt Discount and Unamortized Issuance Costs June 30, 2019 December 31, 2018 Description Long term Issuance: Senior Notes 3/1/2019 3/1/2049 5.375 % $ 300,000 9,141 290,859 — Redemption: Senior Notes 2/8/2013 2/9/2043 5.875 % 185,000 — — 180,771 Other Outstanding: FHLBI 12/16/2016 12/16/2026 3.03 % 60,000 — 60,000 60,000 FHLBNY 8/15/2016 8/16/2021 1.56 % 25,000 — 25,000 25,000 FHLBNY 7/21/2016 7/21/2021 1.61 % 25,000 — 25,000 25,000 Senior Notes 11/3/2005 11/1/2035 6.70 % 100,000 903 99,097 99,069 Senior Notes 11/16/2004 11/15/2034 7.25 % 50,000 287 49,713 49,700 Finance lease obligations 1 1,109 — Total long-term debt 10,331 550,778 439,540 1 Concurrent with the adoption of ASU 2016-02 discussed in Note 2. "Adoption of Accounting Pronouncements," finance lease obligations are now captured in Long-term debt on our Consolidated Balance Sheets. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |
Schedule of Carrying Values and Estimated Fair Values of Financial Liabilities | June 30, 2019 December 31, 2018 ($ in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Financial Liabilities Long-term debt: 7.25% Senior Notes 49,909 63,519 49,907 57,032 6.70% Senior Notes 99,471 118,482 99,462 107,075 5.875% Senior Notes — — 185,000 177,230 5.375% Senior Notes 294,116 329,785 — — 1.61% borrowings from FHLBNY 25,000 24,756 25,000 24,218 1.56% borrowings from FHLBNY 25,000 24,720 25,000 24,162 3.03% borrowings from FHLBI 60,000 62,393 60,000 58,905 Subtotal long-term debt 553,496 623,655 444,369 448,622 Unamortized debt issuance costs (3,827 ) (4,829 ) Finance lease obligations 1,109 — Total long-term debt 550,778 439,540 |
Schedule of Quantitative Disclosures of Our Financial Assets That Were Measured At Fair Value | June 30, 2019 Fair Value Measurements Using ($ in thousands) Assets Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) 1 Significant Other Observable Inputs (Level 2) 1 Significant Unobservable Inputs (Level 3) Description Measured on a recurring basis: AFS fixed income securities: U.S. government and government agencies $ 147,124 71,406 75,718 — Foreign government 21,489 — 21,489 — Obligations of states and political subdivisions 1,111,017 — 1,111,017 — Corporate securities 1,793,537 — 1,777,137 16,400 CLO and other ABS 767,604 — 750,184 17,420 CMBS 565,593 — 565,593 — RMBS 1,351,534 — 1,351,534 — Total AFS fixed income securities 5,757,898 71,406 5,652,672 33,820 Equity securities: Common stock 2 154,505 108,916 — — Preferred stock 3,014 3,014 — — Total equity securities 157,519 111,930 — — Short-term investments 291,365 289,959 1,406 — Total assets measured at fair value $ 6,206,782 473,295 5,654,078 33,820 December 31, 2018 Fair Value Measurements Using ($ in thousands) Assets Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) 1 Significant Other Observable Inputs (Level 2) 1 Significant Unobservable Inputs (Level 3) Description Measured on a recurring basis: AFS fixed income securities: U.S. government and government agencies $ 121,310 78,381 42,929 — Foreign government 23,131 — 23,131 — Obligations of states and political subdivisions 1,138,469 — 1,138,469 — Corporate securities 1,617,408 — 1,617,408 — CLO and other ABS 717,362 — 709,953 7,409 CMBS 527,078 — 527,078 — RMBS 1,128,342 — 1,128,342 — Total AFS fixed income securities 5,273,100 78,381 5,187,310 7,409 Equity securities: Common stock 2 144,727 107,397 — — Preferred stock 2,912 2,912 — — Total equity securities 147,639 110,309 — — Short-term investments 323,864 321,370 2,494 — Total assets measured at fair value $ 5,744,603 510,060 5,189,804 7,409 1 There were no transfers of securities between Level 1 and Level 2. 2 Investments amounting to $45.6 million at June 30, 2019 , and $23.7 million at December 31, 2018 |
Schedule of Changes in Fair Value of Securities Using Level 3 Inputs | June 30, 2019 ($ in thousands) Corporate Securities CLO and Other ABS Total Fair value, December 31, 2018 — 7,409 7,409 Total net (losses) gains for the period included in: OCI (19 ) (118 ) (137 ) Net income — 244 244 Purchases — 15,984 15,984 Sales — — — Issuances — — — Settlements — (40 ) (40 ) Transfers into Level 3 16,419 13,603 30,022 Transfers out of Level 3 — (19,662 ) (19,662 ) Fair value, June 30, 2019 16,400 17,420 33,820 |
Schedule of Quantitative Information of Our Financial Assets and Liabilities That Were Disclosed at Fair Value | June 30, 2019 Fair Value Measurements Using ($ in thousands) Assets/ Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial Assets HTM: Obligations of states and political subdivisions $ 14,503 — 14,503 — Corporate securities 19,352 — 19,352 — Total HTM fixed income securities $ 33,855 — 33,855 — Financial Liabilities Long-term debt: 7.25% Senior Notes $ 63,519 — 63,519 — 6.70% Senior Notes 118,482 — 118,482 — 5.375% Senior Notes 329,785 — 329,785 — 1.61% borrowings from FHLBNY 24,756 — 24,756 — 1.56% borrowings from FHLBNY 24,720 — 24,720 — 3.03% borrowings from FHLBI 62,393 — 62,393 — Total long-term debt $ 623,655 — 623,655 — December 31, 2018 Fair Value Measurements Using ($ in thousands) Assets/ Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial Assets HTM: Obligations of states and political subdivisions $ 17,969 — 17,969 — Corporate securities 20,348 — 20,348 — Total HTM fixed income securities $ 38,317 — 38,317 — Financial Liabilities Long-term debt: 7.25% Senior Notes $ 57,032 — 57,032 — 6.70% Senior Notes 107,075 — 107,075 — 5.875% Senior Notes 177,230 177,230 — — 1.61% borrowings from FHLBNY 24,218 — 24,218 — 1.56% borrowings from FHLBNY 24,162 — 24,162 — 3.03% borrowings from FHLBI 58,905 — 58,905 — Total long-term debt $ 448,622 177,230 271,392 — |
Reinsurance (Tables)
Reinsurance (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Reinsurance Disclosures [Abstract] | |
Schedule of List Of Direct, Assumed, And Ceded Reinsurance Amounts | Quarter ended June 30, Six Months ended June 30, ($ in thousands) 2019 2018 2019 2018 Premiums written: Direct $ 807,367 753,363 $ 1,573,761 1,467,597 Assumed 5,333 6,536 11,888 12,807 Ceded (111,303 ) (104,651 ) (211,305 ) (200,596 ) Net $ 701,397 655,248 $ 1,374,344 1,279,808 Premiums earned: Direct $ 740,348 696,723 $ 1,468,385 1,380,456 Assumed 5,742 6,612 12,304 12,736 Ceded (103,471 ) (98,499 ) (205,497 ) (196,528 ) Net $ 642,619 604,836 $ 1,275,192 1,196,664 Loss and loss expenses incurred: Direct $ 435,700 391,014 $ 860,357 811,930 Assumed 4,348 2,364 9,613 10,368 Ceded (59,064 ) (27,050 ) (102,407 ) (71,029 ) Net $ 380,984 366,328 $ 767,563 751,269 |
Schedule of Ceded Premiums and Losses Related to Flood Operations | Ceded to NFIP Quarter ended June 30, Six Months ended June 30, ($ in thousands) 2019 2018 2019 2018 Ceded premiums written $ (71,574 ) (66,341 ) $ (131,587 ) (123,010 ) Ceded premiums earned (63,804 ) (60,143 ) (126,067 ) (119,134 ) Ceded loss and loss expenses incurred (21,063 ) (10,261 ) (34,749 ) (25,980 ) |
Reserve for Loss and Loss Exp_2
Reserve for Loss and Loss Expense (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Insurance Loss Reserves [Abstract] | |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense | Six Months ended June 30, ($ in thousands) 2019 2018 Gross reserve for loss and loss expense, at beginning of year $ 3,893,868 3,771,240 Less: reinsurance recoverable on unpaid loss and loss expense, at beginning of year 537,388 585,855 Net reserve for loss and loss expense, at beginning of year 3,356,480 3,185,385 Incurred loss and loss expense for claims occurring in the: Current year 783,938 756,855 Prior years (16,375 ) (5,586 ) Total incurred loss and loss expense 767,563 751,269 Paid loss and loss expense for claims occurring in the: Current year 210,374 214,169 Prior years 442,820 457,441 Total paid loss and loss expense 653,194 671,610 Net reserve for loss and loss expense, at end of period 3,470,849 3,265,044 Add: Reinsurance recoverable on unpaid loss and loss expense, at end of period 556,203 539,321 Gross reserve for loss and loss expense at end of period $ 4,027,052 3,804,365 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Revenue By Segment | Revenue by Segment Quarter ended June 30, Six Months ended June 30, ($ in thousands) 2019 2018 2019 2018 Standard Commercial Lines: Net premiums earned: Commercial automobile $ 136,338 122,104 267,524 240,335 Workers compensation 78,464 80,021 157,179 158,844 General liability 164,793 153,002 326,318 302,831 Commercial property 87,136 82,162 173,203 162,488 Businessowners’ policies 26,172 25,829 52,253 51,420 Bonds 8,967 8,335 17,871 16,469 Other 4,779 4,559 9,485 8,989 Miscellaneous income 2,718 2,882 4,762 4,708 Total Standard Commercial Lines revenue 509,367 478,894 1,008,595 946,084 Standard Personal Lines: Net premiums earned: Personal automobile 43,388 41,810 86,551 82,252 Homeowners 32,013 32,223 64,143 64,424 Other 1,712 1,644 3,726 3,257 Miscellaneous income 335 297 611 649 Total Standard Personal Lines revenue 77,448 75,974 155,031 150,582 E&S Lines: Net premiums earned: Casualty lines 44,756 39,379 89,284 77,919 Property lines 14,101 13,768 27,655 27,436 Miscellaneous income — — — 1 Total E&S Lines revenue 58,857 53,147 116,939 105,356 Investments: Net investment income 58,505 45,553 109,123 88,784 Net realized and unrealized investment gains (losses) 4,027 (1,652 ) 17,478 (12,201 ) Total Investments revenue 62,532 43,901 126,601 76,583 Total revenues $ 708,204 651,916 1,407,166 1,278,605 |
Schedule of Income Before and After Federal Income Tax | Income Before and After Federal Income Tax Quarter ended June 30, Six Months ended June 30, ($ in thousands) 2019 2018 2019 2018 Standard Commercial Lines: Underwriting gain, before federal income tax $ 37,143 41,016 62,958 47,820 Underwriting gain, after federal income tax 29,343 32,403 49,737 37,778 Combined ratio 92.7 % 91.4 93.7 94.9 ROE contribution 5.9 7.8 5.2 4.5 Standard Personal Lines: Underwriting gain, before federal income tax $ 4,538 4,805 7,705 3,299 Underwriting gain, after federal income tax 3,585 3,796 6,087 2,606 Combined ratio 94.1 % 93.7 95.0 97.8 ROE contribution 0.7 0.9 0.6 0.3 E&S Lines: Underwriting gain (loss), before federal income tax $ 2,944 (7,789 ) 7,523 (8,354 ) Underwriting gain (loss), after federal income tax 2,326 (6,154 ) 5,943 (6,600 ) Combined ratio 95.0 % 114.7 93.6 107.9 ROE contribution 0.5 (1.5 ) 0.6 (0.8 ) Investments: Net investment income $ 58,505 45,553 109,123 88,784 Net realized and unrealized investment gains (losses) 4,027 (1,652 ) 17,478 (12,201 ) Total investment segment income, before federal income tax 62,532 43,901 126,601 76,583 Tax on investment segment income 11,729 7,617 23,849 12,843 Total investment segment income, after federal income tax $ 50,803 36,284 102,752 63,740 ROE contribution of after-tax net investment income 9.6 9.0 9.2 8.6 |
Schedule of Reconciliation of Segment Results to Income Before Federal Income Tax | Reconciliation of Segment Results to Income Before Federal Income Tax Quarter ended June 30, Six Months ended June 30, ($ in thousands) 2019 2018 2019 2018 Underwriting gain (loss) Standard Commercial Lines $ 37,143 41,016 62,958 47,820 Standard Personal Lines 4,538 4,805 7,705 3,299 E&S Lines 2,944 (7,789 ) 7,523 (8,354 ) Investment income 62,532 43,901 126,601 76,583 Total all segments 107,157 81,933 204,787 119,348 Interest expense (7,366 ) (6,125 ) (18,892 ) (12,277 ) Corporate expenses (9,566 ) (3,283 ) (21,976 ) (14,615 ) Income, before federal income tax $ 90,225 72,525 163,919 92,456 |
Retirement Plans (Table)
Retirement Plans (Table) | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Net Periodic Benefit Cost | Pension Plan Pension Plan Quarter ended June 30, Six Months ended June 30, ($ in thousands) 2019 2018 2019 2018 Net Periodic Pension Cost (Benefit): Interest cost $ 3,376 3,095 6,753 6,190 Expected return on plan assets (5,278 ) (5,681 ) (10,557 ) (11,363 ) Amortization of unrecognized net actuarial loss 643 493 1,287 987 Total net periodic pension cost (benefit) 1 $ (1,259 ) (2,093 ) (2,517 ) (4,186 ) 1 The components of net periodic pension cost (benefit) are included within "Loss and loss expense incurred" and "Other insurance expenses" on the Consolidated Statements of Income. |
Schedule of Weighted-Average Expense Assumptions | Pension Plan Six Months ended June 30, 2019 2018 Weighted-Average Expense Assumptions: Discount rate 4.46 % 3.78 % Effective interest rate for calculation of interest cost 4.12 3.46 Expected return on plan assets 6.50 6.36 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Schedule of Components of Comprehensive Income-Gross and Net of Tax | Second Quarter 2019 ($ in thousands) Gross Tax Net Net income $ 90,225 17,959 72,266 Components of OCI: Unrealized gains on investment securities : Unrealized holding gains during the period 83,546 17,544 66,002 Amounts reclassified into net income: HTM securities (21 ) (4 ) (17 ) Realized gains on disposals and OTTI of AFS securities (1,300 ) (273 ) (1,027 ) Total unrealized gains on investment securities 82,225 17,267 64,958 Defined benefit pension and post-retirement plans: Amounts reclassified into net income: Net actuarial loss 664 140 524 Total defined benefit pension and post-retirement plans 664 140 524 Other comprehensive income 82,889 17,407 65,482 Comprehensive income $ 173,114 35,366 137,748 Second Quarter 2018 ($ in thousands) Gross Tax Net Net income $ 72,525 13,706 58,819 Components of other comprehensive loss: Unrealized losses on investment securities : Unrealized holding losses during the period (23,993 ) (5,038 ) (18,955 ) Amounts reclassified into net income: HTM securities (8 ) (2 ) (6 ) Realized losses on disposals and OTTI of AFS securities 2,870 603 2,267 Total unrealized losses on investment securities (21,131 ) (4,437 ) (16,694 ) Defined benefit pension and post-retirement plans: Amounts reclassified into net income: Net actuarial loss 531 111 420 Total defined benefit pension and post-retirement plans 531 111 420 Other comprehensive loss (20,600 ) (4,326 ) (16,274 ) Comprehensive income $ 51,925 9,380 42,545 Six Months 2019 ($ in thousands) Gross Tax Net Net income $ 163,919 30,305 133,614 Components of OCI: Unrealized gains on investment securities: Unrealized holding gains during the period 186,472 39,157 147,315 Amounts reclassified into net income: HTM securities (30 ) (6 ) (24 ) Realized gains on disposals and OTTI of AFS securities (2,377 ) (499 ) (1,878 ) Total unrealized gains on investment securities 184,065 38,652 145,413 Defined benefit pension and post-retirement plans: Amounts reclassified into net income: Net actuarial loss 1,328 279 1,049 Total defined benefit pension and post-retirement plans 1,328 279 1,049 Other comprehensive income 185,393 38,931 146,462 Comprehensive income $ 349,312 69,236 280,076 Six Months 2018 ($ in thousands) Gross Tax Net Net income $ 92,456 14,712 77,744 Components of other comprehensive loss: Unrealized losses on investment securities: Unrealized holding losses during the period (109,308 ) (22,955 ) (86,353 ) Amounts reclassified into net income: HTM securities (20 ) (4 ) (16 ) Realized losses on disposals and OTTI of AFS securities 7,419 1,558 5,861 Total unrealized losses on investment securities (101,909 ) (21,401 ) (80,508 ) Defined benefit pension and post-retirement plans: Amounts reclassified into net income: Net actuarial loss 1,063 223 840 Total defined benefit pension and post-retirement plans 1,063 223 840 Other comprehensive loss (100,846 ) (21,178 ) (79,668 ) Comprehensive loss $ (8,390 ) (6,466 ) (1,924 ) |
Schedule of Components of Accumulated Other Comprehensive Income Net of Tax | June 30, 2019 Defined Benefit Pension and Post-Retirement Plans Net Unrealized Gains (Losses) on Investment Securities Total AOCI ($ in thousands) OTTI Related HTM Related All Other Investments Subtotal Balance, December 31, 2018 $ (71 ) 71 1,888 1,888 (79,844 ) (77,956 ) OCI before reclassifications — — 147,315 147,315 — 147,315 Amounts reclassified from AOCI — (24 ) (1,878 ) (1,902 ) 1,049 (853 ) Net current period OCI — (24 ) 145,437 145,413 1,049 146,462 Balance, June 30, 2019 $ (71 ) 47 147,325 147,301 (78,795 ) 68,506 |
Schedule of Reclassifications Out Of Accumulated Other Comprehensive Income | Quarter ended June 30, Six Months ended June 30, Affected Line Item in the Unaudited Consolidated Statements of Income ($ in thousands) 2019 2018 2019 2018 HTM related Unrealized losses on HTM disposals $ (9 ) (7 ) (9 ) (6 ) Net realized and unrealized gains (losses) Amortization of net unrealized gains on HTM securities (12 ) (1 ) (21 ) (14 ) Net investment income earned (21 ) (8 ) (30 ) (20 ) Income before federal income tax 4 2 6 4 Total federal income tax expense (17 ) (6 ) (24 ) (16 ) Net income Realized (gains) losses on AFS and OTTI Realized (gains) losses on AFS disposals and OTTI (1,300 ) 2,870 (2,377 ) 7,419 Net realized and unrealized gains (losses) (1,300 ) 2,870 (2,377 ) 7,419 Income before federal income tax 273 (603 ) 499 (1,558 ) Total federal income tax expense (1,027 ) 2,267 (1,878 ) 5,861 Net income Defined benefit pension and post-retirement life plans Net actuarial loss 145 113 290 225 Loss and loss expense incurred 519 418 1,038 838 Other insurance expenses Total defined benefit pension and post-retirement life 664 531 1,328 1,063 Income before federal income tax (140 ) (111 ) (279 ) (223 ) Total federal income tax expense 524 420 1,049 840 Net income Total reclassifications for the period $ (520 ) 2,681 (853 ) 6,685 Net income |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | ($ in thousands) Quarter ended June 30, 2019 Six Months ended June 30, 2019 Operating lease cost, included in Other insurance expenses on the Consolidated Statements of Income $ 2,245 $ 4,397 Finance lease cost: Amortization of assets, included in Other insurance expenses on the Consolidated Statements of Income 315 599 Interest on lease liabilities, included in Interest expense on the Consolidated Statements of Income 7 7 Total finance lease cost 322 606 Variable lease cost, included in Other insurance expenses on the Consolidated Statements of Income (120 ) 668 Short-term lease cost, included in Other insurance expenses on the Consolidated Statements of Income 437 1,175 |
Supplemental Lease Information | June 30, 2019 Weighted-average remaining lease term Operating leases 6 years Finance leases 2 Weighted-average discount rate Operating leases 3.4 % Finance leases 1 1.8 1 Prior to adoption of ASU 2016-02, our historical capital lease liability and asset were measured using an un-discounted cash flow stream due to immateriality of the capital lease population. |
Lease Assets and Liabilities | ($ in thousands) June 30, 2019 Operating leases Other assets $ 29,632 Other liabilities 30,336 Finance leases Property and equipment - at cost, net of accumulated depreciation and amortization 1,106 Long-term debt 1,109 |
Maturities of Lease Liabilities | ($ in thousands) Finance Leases Operating Leases Total Year ended December 31, 2019 (excluding the six months ended June 30, 2019) 389 4,044 4,433 2020 448 7,737 8,185 2021 244 5,483 5,727 2022 53 3,912 3,965 2023 — 2,900 2,900 Thereafter — 9,698 9,698 Total lease payments 1,134 33,774 34,908 Less: imputed interest 25 3,438 3,463 Total lease liabilities $ 1,109 30,336 31,445 |
Schedule of Future Minimum Rental Commitments For Non-Cancelable Leases | ($ in thousands) Capital Leases Operating Leases Total 2019 $ 728 7,762 8,490 2020 141 7,355 7,496 2021 22 5,083 5,105 2022 — 3,641 3,641 2023 — 2,900 2,900 Thereafter — 9,698 9,698 Total minimum payment required $ 891 36,439 37,330 |
Statements of Cash Flows (Cash
Statements of Cash Flows (Cash Flow Supplemental Disclosures) (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Interest | $ 10,512 | $ 12,064 | |
Federal income tax | 28,000 | 4,193 | |
Operating cash flows from operating leases | [1] | 3,994 | 0 |
Operating cash flows from financing leases | 7 | 0 | |
Financing cash flows from finance leases | 596 | 1,333 | |
Assets acquired under finance lease arrangements | 814 | 0 | |
Assets acquired under operating lease arrangements | [1] | 12,881 | 0 |
Non-cash purchase of property and equipment | 0 | 18 | |
AFS Fixed Income Securities [Member] | |||
Corporate actions related to securities | [2] | $ 25,104 | $ 32,133 |
[1] | Upon adoption of ASU 2016-02, effective January 1, 2019, we are required to disclose cash paid for amounts included in the measurement of operating lease liabilities, as well as supplemental non-cash information on operating lease liabilities arising from obtaining operating lease assets. | ||
[2] | Examples of such corporate actions include exchanges, non-cash acquisitions, and stock splits. |
Statements of Cash Flows (Sched
Statements of Cash Flows (Schedule of Cash and Restricted Cash) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Schedule of Cash and Restricted Cash [Line Items] | ||||
Cash | $ 504 | $ 505 | ||
Restricted cash | 7,139 | 16,414 | ||
Total cash and restricted cash shown in the Statements of Cash Flows | $ 7,643 | $ 16,919 | $ 16,480 | $ 44,710 |
Investments (Held-To-Maturity S
Investments (Held-To-Maturity Securities Disclosure) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Schedule of Held-to-maturity Securities [Line Items] | ||
HTM Securities Percent of Invested Assets | 1.00% | 1.00% |
HTM, Carrying Value | $ 32,364 | $ 37,110 |
Net unrealized unrecognized gains on held to maturity securities | 1,600 | 1,300 |
Gross unrealized unrecognized loss | $ 100 | $ 200 |
Investments (Available-For-Sale
Investments (Available-For-Sale Securities Disclosure) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Cost/Amortized Cost | $ 5,571,491 | $ 5,270,798 |
Unrealized Gains | 195,287 | 47,369 |
Unrealized Losses | (8,880) | (45,067) |
Debt Securities, Available-for-sale | 5,757,898 | 5,273,100 |
AFS Fixed Income Securities [Member] | U.S. Government and Government Agencies [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/Amortized Cost | 143,461 | 120,092 |
Unrealized Gains | 3,683 | 1,810 |
Unrealized Losses | (20) | (592) |
Debt Securities, Available-for-sale | 147,124 | 121,310 |
AFS Fixed Income Securities [Member] | Foreign Government [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/Amortized Cost | 20,995 | 23,202 |
Unrealized Gains | 494 | 36 |
Unrealized Losses | 0 | (107) |
Debt Securities, Available-for-sale | 21,489 | 23,131 |
AFS Fixed Income Securities [Member] | Obligations of States and Political Subdivisions [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/Amortized Cost | 1,056,507 | 1,121,615 |
Unrealized Gains | 54,516 | 19,485 |
Unrealized Losses | (6) | (2,631) |
Debt Securities, Available-for-sale | 1,111,017 | 1,138,469 |
AFS Fixed Income Securities [Member] | Corporate Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/Amortized Cost | 1,733,319 | 1,639,852 |
Unrealized Gains | 64,620 | 5,521 |
Unrealized Losses | (4,402) | (27,965) |
Debt Securities, Available-for-sale | 1,793,537 | 1,617,408 |
AFS Fixed Income Securities [Member] | Collateralized Loan Obligations and Other Asset Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/Amortized Cost | 762,896 | 720,193 |
Unrealized Gains | 8,649 | 4,112 |
Unrealized Losses | (3,941) | (6,943) |
Debt Securities, Available-for-sale | 767,604 | 717,362 |
AFS Fixed Income Securities [Member] | Commercial Mortgage Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/Amortized Cost | 541,093 | 527,409 |
Unrealized Gains | 24,737 | 3,417 |
Unrealized Losses | (237) | (3,748) |
Debt Securities, Available-for-sale | 565,593 | 527,078 |
AFS Fixed Income Securities [Member] | Residential Mortgage Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/Amortized Cost | 1,313,220 | 1,118,435 |
Unrealized Gains | 38,588 | 12,988 |
Unrealized Losses | (274) | (3,081) |
Debt Securities, Available-for-sale | $ 1,351,534 | $ 1,128,342 |
Investments (Fair Value and Gro
Investments (Fair Value and Gross Pre-Tax Net Unrealized Loss of Securities By Length of Time) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | |
Percent Of Securities of Amortized Cost In An Unrealized Unrecognized Loss Position | 1.00% | 2.00% | |
AFS Fixed Income Securities [Member] | |||
AFS Fair Value, Less than 12 Months | $ 421,272 | $ 2,142,433 | |
AFS Unrealized Losses, Less than 12 months | [1] | (4,902) | (36,948) |
AFS Fair Value, 12 months or longer | 243,180 | 275,174 | |
AFS Unrealized Losses, 12 months or longer | [1] | (3,978) | (8,119) |
AFS Fair Value | 664,452 | 2,417,607 | |
AFS Unrealized Losses | [1] | (8,880) | (45,067) |
AFS Fixed Income Securities [Member] | U.S. Government and Government Agencies [Member] | |||
AFS Fair Value, Less than 12 Months | 0 | 6,693 | |
AFS Unrealized Losses, Less than 12 months | [1] | 0 | (174) |
AFS Fair Value, 12 months or longer | 5,508 | 23,163 | |
AFS Unrealized Losses, 12 months or longer | [1] | (20) | (418) |
AFS Fair Value | 5,508 | 29,856 | |
AFS Unrealized Losses | [1] | (20) | (592) |
AFS Fixed Income Securities [Member] | Foreign Government [Member] | |||
AFS Fair Value, Less than 12 Months | 12,208 | ||
AFS Unrealized Losses, Less than 12 months | [1] | (93) | |
AFS Fair Value, 12 months or longer | 1,482 | ||
AFS Unrealized Losses, 12 months or longer | [1] | (14) | |
AFS Fair Value | 13,690 | ||
AFS Unrealized Losses | [1] | (107) | |
AFS Fixed Income Securities [Member] | Obligations of States and Political Subdivisions [Member] | |||
AFS Fair Value, Less than 12 Months | 739 | 196,798 | |
AFS Unrealized Losses, Less than 12 months | [1] | (6) | (2,074) |
AFS Fair Value, 12 months or longer | 0 | 42,821 | |
AFS Unrealized Losses, 12 months or longer | [1] | 0 | (557) |
AFS Fair Value | 739 | 239,619 | |
AFS Unrealized Losses | [1] | (6) | (2,631) |
AFS Fixed Income Securities [Member] | Corporate Securities [Member] | |||
AFS Fair Value, Less than 12 Months | 94,964 | 1,041,952 | |
AFS Unrealized Losses, Less than 12 months | [1] | (2,260) | (23,649) |
AFS Fair Value, 12 months or longer | 46,527 | 78,953 | |
AFS Unrealized Losses, 12 months or longer | [1] | (2,142) | (4,316) |
AFS Fair Value | 141,491 | 1,120,905 | |
AFS Unrealized Losses | [1] | (4,402) | (27,965) |
AFS Fixed Income Securities [Member] | Collateralized Loan Obligations and Other Asset Backed Securities [Member] | |||
AFS Fair Value, Less than 12 Months | 231,823 | 516,106 | |
AFS Unrealized Losses, Less than 12 months | [1] | (2,318) | (6,750) |
AFS Fair Value, 12 months or longer | 151,572 | 16,800 | |
AFS Unrealized Losses, 12 months or longer | [1] | (1,623) | (193) |
AFS Fair Value | 383,395 | 532,906 | |
AFS Unrealized Losses | [1] | (3,941) | (6,943) |
AFS Fixed Income Securities [Member] | Commercial Mortgage Backed Securities [Member] | |||
AFS Fair Value, Less than 12 Months | 59,639 | 229,338 | |
AFS Unrealized Losses, Less than 12 months | [1] | (183) | (2,548) |
AFS Fair Value, 12 months or longer | 24,882 | 66,294 | |
AFS Unrealized Losses, 12 months or longer | [1] | (54) | (1,200) |
AFS Fair Value | 84,521 | 295,632 | |
AFS Unrealized Losses | [1] | (237) | (3,748) |
AFS Fixed Income Securities [Member] | Residential Mortgage Backed Securities [Member] | |||
AFS Fair Value, Less than 12 Months | 34,107 | 139,338 | |
AFS Unrealized Losses, Less than 12 months | [1] | (135) | (1,660) |
AFS Fair Value, 12 months or longer | 14,691 | 45,661 | |
AFS Unrealized Losses, 12 months or longer | [1] | (139) | (1,421) |
AFS Fair Value | 48,798 | 184,999 | |
AFS Unrealized Losses | [1] | $ (274) | $ (3,081) |
[1] | Gross unrealized losses include non-OTTI unrealized amounts and OTTI losses recognized in AOCI. |
Investments (Fixed Income Secur
Investments (Fixed Income Securities by Contractual Maturity) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Schedule of Fixed Income Securities [Line Items] | ||
Due in one year or less fair value, AFS | $ 280,140 | |
Due after one year through five years fair value, AFS | 2,237,395 | |
Due after five years through 10 years fair value, AFS | 3,065,577 | |
Due after 10 years fair value, AFS | 174,786 | |
AFS, Fair Value | 5,757,898 | $ 5,273,100 |
Due in one year or less carrying value, HTM | 9,480 | |
Due after one year through five years carrying value, HTM | 16,860 | |
Due after five years through 10 years carrying value, HTM | 6,024 | |
Due after 10 years carrying value, HTM | 0 | |
HTM, Carrying Value | 32,364 | 37,110 |
Due in one year or less fair value, HTM | 9,526 | |
Due after one year through five years fair value, HTM | 18,109 | |
Due after five years through 10 years fair value, HTM | 6,220 | |
Due after 10 years fair value, HTM | 0 | |
HTM, Fair Value | $ 33,855 | $ 38,317 |
Investments (Other Investment P
Investments (Other Investment Portfolio by Strategy and the Remaining Commitment Amount and Maximum Exposure to Loss Associated With Each Strategy) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | |
Carrying Value | $ 182,109 | $ 178,938 | |
Other Investments [Member] | |||
Carrying Value | 182,109 | 178,938 | |
Remaining Commitment | 231,818 | 202,270 | |
Maximum Exposure to Loss | [1] | 413,927 | 381,208 |
Alternative Investments [Member] | |||
Carrying Value | 157,774 | 153,896 | |
Remaining Commitment | 231,818 | 202,270 | |
Maximum Exposure to Loss | [1] | 389,592 | 356,166 |
Private Equity [Member] | Alternative Investments [Member] | |||
Carrying Value | 99,567 | 84,352 | |
Remaining Commitment | 95,805 | 93,688 | |
Maximum Exposure to Loss | [1] | 195,372 | 178,040 |
Private Credit [Member] | Alternative Investments [Member] | |||
Carrying Value | 35,103 | 41,682 | |
Remaining Commitment | 113,133 | 81,453 | |
Maximum Exposure to Loss | [1] | 148,236 | 123,135 |
Real Assets [Member] | Alternative Investments [Member] | |||
Carrying Value | 23,104 | 27,862 | |
Remaining Commitment | 22,880 | 27,129 | |
Maximum Exposure to Loss | [1] | 45,984 | 54,991 |
Other Securities [Member] | |||
Carrying Value | 24,335 | 25,042 | |
Remaining Commitment | 0 | 0 | |
Maximum Exposure to Loss | [1] | $ 24,335 | $ 25,042 |
[1] | The maximum exposure to loss includes both the carry value of these investments and the related remaining commitments. In addition, tax credits that have been previously recognized in Other securities are subject to the risk of recapture, which we do not consider significant. |
Investments (Aggregated Income
Investments (Aggregated Income Statement Summarized Financial Information for Partnerhips in our Alternative Investment Portfolio) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Schedule of Equity Method Investments [Line Items] | ||||
Net investment income earned | $ 58,505 | $ 45,553 | $ 109,123 | $ 88,784 |
Alternative Investments [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Net investment income earned | 7,300 | 1,900 | 7,900 | 3,500 |
Investments accounted for under the equity method [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Net investment income (loss) | 174,100 | (6,400) | 24,100 | (41,800) |
Realized gains | 106,000 | 629,500 | 249,300 | 1,223,500 |
Net change in unrealized appreciation (depreciation) | 2,223,700 | (1,200,200) | 2,778,000 | (738,600) |
Net income (loss) | $ 2,503,800 | $ (577,100) | $ 3,051,400 | $ 443,100 |
Investments (Investments Pledge
Investments (Investments Pledged as Collateral) (Details) $ in Millions | Jun. 30, 2019USD ($) |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Carrying Value Bonds On Deposit With Various State And Regulatory Agencies | $ 27 |
Securities Pledged As Collateral | 197.7 |
U.S. Government and Government Agencies [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Carrying Value Bonds On Deposit With Various State And Regulatory Agencies | 22.8 |
Securities Pledged As Collateral | 22.8 |
Obligations of States and Political Subdivisions [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Carrying Value Bonds On Deposit With Various State And Regulatory Agencies | 3.9 |
Securities Pledged As Collateral | 3.9 |
Corporate Securities [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Carrying Value Bonds On Deposit With Various State And Regulatory Agencies | 0.3 |
Securities Pledged As Collateral | 0.3 |
Commercial Mortgage Backed Securities [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Carrying Value Bonds On Deposit With Various State And Regulatory Agencies | 0 |
Securities Pledged As Collateral | 28.4 |
Residential Mortgage Backed Securities [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Carrying Value Bonds On Deposit With Various State And Regulatory Agencies | 0 |
Securities Pledged As Collateral | 142.3 |
Federal Home Loan Bank of Indianapolis [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Fixed Income Securities Pledged For FHLB Collateral | 65.4 |
Federal Home Loan Bank of Indianapolis [Member] | U.S. Government and Government Agencies [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Fixed Income Securities Pledged For FHLB Collateral | 0 |
Federal Home Loan Bank of Indianapolis [Member] | Obligations of States and Political Subdivisions [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Fixed Income Securities Pledged For FHLB Collateral | 0 |
Federal Home Loan Bank of Indianapolis [Member] | Corporate Securities [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Fixed Income Securities Pledged For FHLB Collateral | 0 |
Federal Home Loan Bank of Indianapolis [Member] | Commercial Mortgage Backed Securities [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Fixed Income Securities Pledged For FHLB Collateral | 7.3 |
Federal Home Loan Bank of Indianapolis [Member] | Residential Mortgage Backed Securities [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Fixed Income Securities Pledged For FHLB Collateral | 58.1 |
Federal Home Loan Bank of New York [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Fixed Income Securities Pledged For FHLB Collateral | 105.3 |
Federal Home Loan Bank of New York [Member] | U.S. Government and Government Agencies [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Fixed Income Securities Pledged For FHLB Collateral | 0 |
Federal Home Loan Bank of New York [Member] | Obligations of States and Political Subdivisions [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Fixed Income Securities Pledged For FHLB Collateral | 0 |
Federal Home Loan Bank of New York [Member] | Corporate Securities [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Fixed Income Securities Pledged For FHLB Collateral | 0 |
Federal Home Loan Bank of New York [Member] | Commercial Mortgage Backed Securities [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Fixed Income Securities Pledged For FHLB Collateral | 21.1 |
Federal Home Loan Bank of New York [Member] | Residential Mortgage Backed Securities [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Fixed Income Securities Pledged For FHLB Collateral | $ 84.2 |
Investments (Credit Concentrati
Investments (Credit Concentration Risk) (Details) | Jun. 30, 2019 | Dec. 31, 2018 |
Investments [Abstract] | ||
Maximum exposure to credit concentration risk of the Company's stockholder's equity other than certain U.S. government-backed investments | 10.00% | 10.00% |
Investments (Net Investment Inc
Investments (Net Investment Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net Investment Income [Line Items] | ||||
Net investment income earned | $ 58,505 | $ 45,553 | $ 109,123 | $ 88,784 |
Fixed Income Securities [Member] | ||||
Net Investment Income [Line Items] | ||||
Net investment income earned | 50,907 | 43,774 | 99,940 | 85,815 |
Equity Securities [Member] | ||||
Net Investment Income [Line Items] | ||||
Net investment income earned | 1,740 | 1,820 | 3,380 | 3,797 |
Short-Term Investments [Member] | ||||
Net Investment Income [Line Items] | ||||
Net investment income earned | 1,759 | 611 | 3,803 | 1,134 |
Other Investments [Member] | ||||
Net Investment Income [Line Items] | ||||
Net investment income earned | 7,494 | 2,094 | 8,154 | 3,657 |
Investment Expenses [Member] | ||||
Net Investment Income [Line Items] | ||||
Net investment income earned | $ (3,395) | $ (2,746) | $ (6,154) | $ (5,619) |
Investments (OTTI) (Details)
Investments (OTTI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Investments [Abstract] | ||||
OTTI Charges | $ 971 | $ 2,821 | $ 1,075 | $ 4,033 |
Investments (Components Of Net
Investments (Components Of Net Realized and Unrealized Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Gain (Loss) on Securities [Line Items] | ||||
Net realized (losses) gains on disposals of securities, fixed income securities (excluding OTTI charges) | $ 2,883 | $ 54 | $ 6,327 | $ 4,785 |
OTTI Charges | (971) | (2,821) | (1,075) | (4,033) |
Net realized gains (losses) | 1,912 | (2,767) | 5,252 | 752 |
Unrealized gains (losses) recognized in income on equity securities | 2,115 | 1,115 | 12,226 | (12,953) |
Net realized and unrealized gains (losses) | 4,027 | (1,652) | 17,478 | (12,201) |
Fixed Income Securities [Member] | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net realized (losses) gains on disposals of securities, fixed income securities (excluding OTTI charges) | 2,061 | (1,174) | 3,204 | (4,509) |
Equity Securities [Member] | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net realized (losses) gains on disposals of securities, fixed income securities (excluding OTTI charges) | 851 | 1,226 | 3,131 | 9,295 |
Short-Term Investments [Member] | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net realized (losses) gains on disposals of securities, fixed income securities (excluding OTTI charges) | 1 | 2 | 15 | (1) |
Other Investments [Member] | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net realized (losses) gains on disposals of securities, fixed income securities (excluding OTTI charges) | $ (30) | $ 0 | $ (23) | $ 0 |
Investments (Realized and Unrea
Investments (Realized and Unrealized Gains (Losses) on Equity Securities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Gain (Loss) on Securities [Line Items] | ||||
Unrealized gains (losses) recognized in income on equity securities on securities remaining in our portfolio at June 30, 2019 | $ 2,394 | $ 2,301 | $ 11,817 | $ (2,662) |
Unrealized gains (losses) recognized in income on equity securities on securities sold in each respective period | (279) | (1,186) | 409 | (10,291) |
Total unrealized gains (losses) recognized in income on equity securities | $ 2,115 | $ 1,115 | $ 12,226 | $ (12,953) |
Investments (Net Realized Gains
Investments (Net Realized Gains (Losses) on Disposals) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Schedule of Realized Gains (Losses) on Disposals Excluding OTTI [Line Items] | ||||
HTM fixed income securities Gains | $ 1 | $ 0 | $ 1 | $ 2 |
HTM fixed income securities Losses | (15) | 0 | (15) | 0 |
Equity securities Gains | 958 | 1,226 | 3,238 | 9,625 |
Equity securities Losses | (107) | 0 | (107) | (330) |
Short-term investments Gains | 2 | 2 | 16 | 3 |
Short-term investments Losses | (1) | 0 | (1) | (4) |
Other investments Gains | 0 | 0 | 7 | 0 |
Other investments Losses | (30) | 0 | (30) | 0 |
Net realized investment gains on disposals | 2,883 | 54 | 6,327 | 4,785 |
Proceeds from sale of fixed income securities, AFS | 153,700 | 262,900 | 372,159 | 938,276 |
Proceeds from sale of equity securities | 26,400 | 2,900 | 30,094 | 43,590 |
Fixed Maturities [Member] | ||||
Schedule of Realized Gains (Losses) on Disposals Excluding OTTI [Line Items] | ||||
AFS securities Gains | 2,643 | 1,971 | 4,487 | 4,594 |
AFS securities Losses | $ (568) | $ (3,145) | $ (1,269) | $ (9,105) |
Indebtedness (Schedule of Outst
Indebtedness (Schedule of Outstanding Debt) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | ||
Debt Instrument [Line Items] | |||||
Debt Discount and Unamortized Issuance Cost | $ 10,331 | ||||
Finance lease liabilities | 1,109 | [1] | $ 900 | $ 0 | [1] |
Long-term Debt | $ 550,778 | ||||
Long-term Debt | 439,540 | ||||
Five Point Three Hundred Seventy Five Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | 5.375% | ||||
Original Amount | $ 300,000 | ||||
Debt Discount and Unamortized Issuance Cost | 9,141 | ||||
Long-term Debt | $ 290,859 | ||||
Long-term Debt | 0 | ||||
Five Point Eight Hundred Seventy Five Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | 5.875% | ||||
Original Amount | $ 185,000 | ||||
Debt Discount and Unamortized Issuance Cost | 0 | ||||
Long-term Debt | $ 0 | ||||
Long-term Debt | 180,771 | ||||
Three Point Zero Three Percent Borrowing From Federal Home Loan Bank Due December 16, 2026 [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | 3.03% | ||||
Original Amount | $ 60,000 | ||||
Debt Discount and Unamortized Issuance Cost | 0 | ||||
Long-term Debt | $ 60,000 | ||||
Long-term Debt | 60,000 | ||||
One Point Fifty Six Percent Borrowing From Federal Home Loan Bank Due August 16, 2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | 1.56% | ||||
Original Amount | $ 25,000 | ||||
Debt Discount and Unamortized Issuance Cost | 0 | ||||
Long-term Debt | $ 25,000 | ||||
Long-term Debt | 25,000 | ||||
One Point Sixty One Percent Borrowing From Federal Home Loan Bank Due July 21, 2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | 1.61% | ||||
Original Amount | $ 25,000 | ||||
Debt Discount and Unamortized Issuance Cost | 0 | ||||
Long-term Debt | $ 25,000 | ||||
Long-term Debt | 25,000 | ||||
Six Point Seventy Percent Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | 6.70% | ||||
Original Amount | $ 100,000 | ||||
Debt Discount and Unamortized Issuance Cost | 903 | ||||
Long-term Debt | $ 99,097 | ||||
Long-term Debt | 99,069 | ||||
Seven Point Twenty Five Percent Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | 7.25% | ||||
Original Amount | $ 50,000 | ||||
Debt Discount and Unamortized Issuance Cost | 287 | ||||
Long-term Debt | $ 49,713 | ||||
Long-term Debt | $ 49,700 | ||||
[1] | Concurrent with the adoption of ASU 2016-02 discussed in Note 2. "Adoption of Accounting Pronouncements," finance lease obligations are now captured in Long-term debt on our Consolidated Balance Sheets. |
Indebtedness (Short Term Debt A
Indebtedness (Short Term Debt Activity) (Details) - Two Point Sixty Four Percent Borrowing from Federal Home Loan Bank Due March 28, 2019 [Member] $ in Millions | Jun. 30, 2019USD ($) |
Short-term Debt [Line Items] | |
Federal Home Loan Bank Advances | $ 50 |
Federal Home Loan Bank, Advances, Interest Rate | 2.64% |
Indebtedness (Long Term Debt Ac
Indebtedness (Long Term Debt Activity) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Debt Instrument [Line Items] | ||
Net Proceeds from Debt Offering | $ 340,757 | $ 130,000 |
Five Point Three Hundred Seventy Five Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 300,000 | |
Interest Rate | 5.375% | |
Debt Discount | $ 5,900 | |
Unamortized Debt Issuance Expense | 3,300 | |
Net Proceeds from Debt Offering | 290,800 | |
Proceeds from Debt Issuance, After Redemption | 106,000 | |
Five Point Eight Hundred Seventy Five Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 185,000 | |
Interest Rate | 5.875% | |
Debt Retirement Costs, Before Tax | $ 4,200 | |
Debt Retirement Costs, Net of Tax | $ 3,300 |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Values and Estimated Fair Values of Financial Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Finance lease liabilities | $ 1,109 | [1] | $ 900 | $ 0 | [1] |
Long-term Debt | 550,778 | ||||
Long-term Debt | 439,540 | ||||
Long-term debt, fair value | 623,655 | 448,622 | |||
Seven Point Twenty Five Percent Senior Notes [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 49,713 | ||||
Long-term Debt | 49,700 | ||||
Long-term debt, fair value | 63,519 | 57,032 | |||
Seven Point Twenty Five Percent Senior Notes [Member] | Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 49,909 | 49,907 | |||
Six Point Seventy Percent Senior Notes [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 99,097 | ||||
Long-term Debt | 99,069 | ||||
Long-term debt, fair value | 118,482 | 107,075 | |||
Six Point Seventy Percent Senior Notes [Member] | Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 99,471 | 99,462 | |||
Five Point Eight Hundred Seventy Five Senior Notes [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 0 | ||||
Long-term Debt | 180,771 | ||||
Long-term debt, fair value | 0 | 177,230 | |||
Five Point Eight Hundred Seventy Five Senior Notes [Member] | Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 0 | 185,000 | |||
Five Point Three Hundred Seventy Five Senior Notes [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 290,859 | ||||
Long-term Debt | 0 | ||||
Long-term debt, fair value | 329,785 | 0 | |||
Five Point Three Hundred Seventy Five Senior Notes [Member] | Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 294,116 | 0 | |||
One Point Sixty One Percent Borrowing From Federal Home Loan Bank Due July 21, 2021 [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 25,000 | ||||
Long-term Debt | 25,000 | ||||
Long-term debt, fair value | 24,756 | 24,218 | |||
One Point Sixty One Percent Borrowing From Federal Home Loan Bank Due July 21, 2021 [Member] | Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 25,000 | 25,000 | |||
One Point Fifty Six Percent Borrowing From Federal Home Loan Bank Due August 16, 2021 [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 25,000 | ||||
Long-term Debt | 25,000 | ||||
Long-term debt, fair value | 24,720 | 24,162 | |||
One Point Fifty Six Percent Borrowing From Federal Home Loan Bank Due August 16, 2021 [Member] | Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 25,000 | 25,000 | |||
Three Point Zero Three Percent Borrowing From Federal Home Loan Bank Due December 16, 2026 [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 60,000 | ||||
Long-term Debt | 60,000 | ||||
Long-term debt, fair value | 62,393 | 58,905 | |||
Three Point Zero Three Percent Borrowing From Federal Home Loan Bank Due December 16, 2026 [Member] | Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 60,000 | 60,000 | |||
Long Term Debt Excluding Issuance Costs and Finance Lease Obligations [Member] | Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 553,496 | 444,369 | |||
Unamortized Debt Issuance Costs [Member] | Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Unamortized debt issuance costs | $ (3,827) | $ (4,829) | |||
[1] | Concurrent with the adoption of ASU 2016-02 discussed in Note 2. "Adoption of Accounting Pronouncements," finance lease obligations are now captured in Long-term debt on our Consolidated Balance Sheets. |
Fair Value Measurements (Quanti
Fair Value Measurements (Quantitative Disclosures of Fair Value Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | |
AFS Fixed Income Securities | $ 5,757,898 | $ 5,273,100 | |
Equity Securities | 157,519 | 147,639 | |
Short-term investments | 291,365 | 323,864 | |
Net Asset Value | 45,600 | 23,700 | |
Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | 5,757,898 | 5,273,100 | |
Equity Securities | 157,519 | 147,639 | |
Short-term investments | 291,365 | 323,864 | |
Total assets measured at fair value | 6,206,782 | 5,744,603 | |
U.S. Government and Government Agencies [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | 147,124 | 121,310 | |
Foreign Government [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | 21,489 | 23,131 | |
Obligations of States and Political Subdivisions [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | 1,111,017 | 1,138,469 | |
Corporate Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | 1,793,537 | 1,617,408 | |
Collateralized Loan Obligations and Other Asset Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | 767,604 | 717,362 | |
Commercial Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | 565,593 | 527,078 | |
Residential Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | 1,351,534 | 1,128,342 | |
Common Stock [Member] | Fair Value, Measurements, Recurring [Member] | |||
Equity Securities | [1] | 154,505 | 144,727 |
Preferred Stock [Member] | Fair Value, Measurements, Recurring [Member] | |||
Equity Securities | 3,014 | 2,912 | |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | [2] | 71,406 | 78,381 |
Equity Securities | [2] | 111,930 | 110,309 |
Short-term investments | [2] | 289,959 | 321,370 |
Total assets measured at fair value | [2] | 473,295 | 510,060 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | U.S. Government and Government Agencies [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | [2] | 71,406 | 78,381 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Foreign Government [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | [2] | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Obligations of States and Political Subdivisions [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | [2] | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Corporate Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | [2] | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Collateralized Loan Obligations and Other Asset Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | [2] | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Commercial Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | [2] | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Residential Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | [2] | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Common Stock [Member] | Fair Value, Measurements, Recurring [Member] | |||
Equity Securities | [1],[2] | 108,916 | 107,397 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Preferred Stock [Member] | Fair Value, Measurements, Recurring [Member] | |||
Equity Securities | [2] | 3,014 | 2,912 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | [2] | 5,652,672 | 5,187,310 |
Equity Securities | [2] | 0 | 0 |
Short-term investments | [2] | 1,406 | 2,494 |
Total assets measured at fair value | [2] | 5,654,078 | 5,189,804 |
Significant Other Observable Inputs (Level 2) [Member] | U.S. Government and Government Agencies [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | [2] | 75,718 | 42,929 |
Significant Other Observable Inputs (Level 2) [Member] | Foreign Government [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | [2] | 21,489 | 23,131 |
Significant Other Observable Inputs (Level 2) [Member] | Obligations of States and Political Subdivisions [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | [2] | 1,111,017 | 1,138,469 |
Significant Other Observable Inputs (Level 2) [Member] | Corporate Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | [2] | 1,777,137 | 1,617,408 |
Significant Other Observable Inputs (Level 2) [Member] | Collateralized Loan Obligations and Other Asset Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | [2] | 750,184 | 709,953 |
Significant Other Observable Inputs (Level 2) [Member] | Commercial Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | [2] | 565,593 | 527,078 |
Significant Other Observable Inputs (Level 2) [Member] | Residential Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | [2] | 1,351,534 | 1,128,342 |
Significant Other Observable Inputs (Level 2) [Member] | Common Stock [Member] | Fair Value, Measurements, Recurring [Member] | |||
Equity Securities | [1],[2] | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Preferred Stock [Member] | Fair Value, Measurements, Recurring [Member] | |||
Equity Securities | [2] | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | 33,820 | 7,409 | |
Equity Securities | 0 | 0 | |
Short-term investments | 0 | 0 | |
Total assets measured at fair value | 33,820 | 7,409 | |
Significant Unobservable Inputs (Level 3) [Member] | U.S. Government and Government Agencies [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Foreign Government [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Obligations of States and Political Subdivisions [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Corporate Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | 16,400 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Collateralized Loan Obligations and Other Asset Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | 17,420 | 7,409 | |
Significant Unobservable Inputs (Level 3) [Member] | Commercial Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Residential Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
AFS Fixed Income Securities | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Common Stock [Member] | Fair Value, Measurements, Recurring [Member] | |||
Equity Securities | [1] | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Preferred Stock [Member] | Fair Value, Measurements, Recurring [Member] | |||
Equity Securities | $ 0 | $ 0 | |
[1] | Investments amounting to $45.6 million at June 30, 2019 , and $23.7 million at December 31, 2018 , were measured at fair value using net asset value per share (or its practical expedient) and have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to total assets measured at fair value. | ||
[2] | There were no transfers of securities between Level 1 and Level 2. |
Fair Value Measurements (Change
Fair Value Measurements (Change in Fair Value of Securities Using Level 3 Inputs) (Details) - Available-for-sale Securities [Member] $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Corporate Securities [Member] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair value, December 31, 2018 | $ 0 |
Total net (losses) gains for the period included in OCI | (19) |
Total net (losses) gains for the period included in net income | 0 |
Purchases | 0 |
Sales | 0 |
Issuances | 0 |
Settlements | 0 |
Transfers into Level 3 | 16,419 |
Transfers out of Level 3 | 0 |
Fair value, June 30, 2019 | 16,400 |
Collateralized Loan Obligations and Other Asset Backed Securities [Member] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair value, December 31, 2018 | 7,409 |
Total net (losses) gains for the period included in OCI | (118) |
Total net (losses) gains for the period included in net income | 244 |
Purchases | 15,984 |
Sales | 0 |
Issuances | 0 |
Settlements | (40) |
Transfers into Level 3 | 13,603 |
Transfers out of Level 3 | (19,662) |
Fair value, June 30, 2019 | 17,420 |
Investments [Member] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair value, December 31, 2018 | 7,409 |
Total net (losses) gains for the period included in OCI | (137) |
Total net (losses) gains for the period included in net income | 244 |
Purchases | 15,984 |
Sales | 0 |
Issuances | 0 |
Settlements | (40) |
Transfers into Level 3 | 30,022 |
Transfers out of Level 3 | (19,662) |
Fair value, June 30, 2019 | $ 33,820 |
Fair Value Measurements (Quan_2
Fair Value Measurements (Quantitative Information of Our Financial Assets and Liabilities That Were Disclosed at Fair Value) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity securities, fair value | $ 33,855 | $ 38,317 |
Long-term debt, fair value | 623,655 | 448,622 |
Seven Point Twenty Five Percent Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 63,519 | 57,032 |
Six Point Seventy Percent Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 118,482 | 107,075 |
Five Point Three Hundred Seventy Five Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 329,785 | 0 |
Five Point Eight Hundred Seventy Five Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 0 | 177,230 |
One Point Sixty One Percent Borrowing From Federal Home Loan Bank Due July 21, 2021 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 24,756 | 24,218 |
One Point Fifty Six Percent Borrowing From Federal Home Loan Bank Due August 16, 2021 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 24,720 | 24,162 |
Three Point Zero Three Percent Borrowing From Federal Home Loan Bank Due December 16, 2026 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 62,393 | 58,905 |
Long-term Debt [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 623,655 | 448,622 |
Obligations of States and Political Subdivisions [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity securities, fair value | 14,503 | 17,969 |
Corporate Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity securities, fair value | 19,352 | 20,348 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity securities, fair value | 0 | 0 |
Long-term debt, fair value | 0 | 177,230 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Seven Point Twenty Five Percent Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Six Point Seventy Percent Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Five Point Three Hundred Seventy Five Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 0 | |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Five Point Eight Hundred Seventy Five Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 177,230 | |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | One Point Sixty One Percent Borrowing From Federal Home Loan Bank Due July 21, 2021 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | One Point Fifty Six Percent Borrowing From Federal Home Loan Bank Due August 16, 2021 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Three Point Zero Three Percent Borrowing From Federal Home Loan Bank Due December 16, 2026 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Obligations of States and Political Subdivisions [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity securities, fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Corporate Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity securities, fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity securities, fair value | 33,855 | 38,317 |
Long-term debt, fair value | 623,655 | 271,392 |
Significant Other Observable Inputs (Level 2) [Member] | Seven Point Twenty Five Percent Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 63,519 | 57,032 |
Significant Other Observable Inputs (Level 2) [Member] | Six Point Seventy Percent Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 118,482 | 107,075 |
Significant Other Observable Inputs (Level 2) [Member] | Five Point Three Hundred Seventy Five Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 329,785 | |
Significant Other Observable Inputs (Level 2) [Member] | Five Point Eight Hundred Seventy Five Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | One Point Sixty One Percent Borrowing From Federal Home Loan Bank Due July 21, 2021 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 24,756 | 24,218 |
Significant Other Observable Inputs (Level 2) [Member] | One Point Fifty Six Percent Borrowing From Federal Home Loan Bank Due August 16, 2021 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 24,720 | 24,162 |
Significant Other Observable Inputs (Level 2) [Member] | Three Point Zero Three Percent Borrowing From Federal Home Loan Bank Due December 16, 2026 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 62,393 | 58,905 |
Significant Other Observable Inputs (Level 2) [Member] | Obligations of States and Political Subdivisions [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity securities, fair value | 14,503 | 17,969 |
Significant Other Observable Inputs (Level 2) [Member] | Corporate Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity securities, fair value | 19,352 | 20,348 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity securities, fair value | 0 | 0 |
Long-term debt, fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Seven Point Twenty Five Percent Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Six Point Seventy Percent Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Five Point Three Hundred Seventy Five Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Five Point Eight Hundred Seventy Five Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | One Point Sixty One Percent Borrowing From Federal Home Loan Bank Due July 21, 2021 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | One Point Fifty Six Percent Borrowing From Federal Home Loan Bank Due August 16, 2021 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Three Point Zero Three Percent Borrowing From Federal Home Loan Bank Due December 16, 2026 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Obligations of States and Political Subdivisions [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity securities, fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Corporate Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held-to-maturity securities, fair value | $ 0 | $ 0 |
Reinsurance (List of Direct, As
Reinsurance (List of Direct, Assumed, and Ceded Reinsurance Amounts) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Premiums written: | ||||
Direct | $ 807,367 | $ 753,363 | $ 1,573,761 | $ 1,467,597 |
Assumed | 5,333 | 6,536 | 11,888 | 12,807 |
Ceded | (111,303) | (104,651) | (211,305) | (200,596) |
Net | 701,397 | 655,248 | 1,374,344 | 1,279,808 |
Premiums earned: | ||||
Direct | 740,348 | 696,723 | 1,468,385 | 1,380,456 |
Assumed | 5,742 | 6,612 | 12,304 | 12,736 |
Ceded | (103,471) | (98,499) | (205,497) | (196,528) |
Net | 642,619 | 604,836 | 1,275,192 | 1,196,664 |
Loss and loss expenses incurred: | ||||
Direct | 435,700 | 391,014 | 860,357 | 811,930 |
Assumed | 4,348 | 2,364 | 9,613 | 10,368 |
Ceded | (59,064) | (27,050) | (102,407) | (71,029) |
Net | 380,984 | $ 366,328 | $ 767,563 | $ 751,269 |
Fire [Member] | ||||
Loss and loss expenses incurred: | ||||
Ceded | $ (17,400) |
Reinsurance (Ceded Premiums and
Reinsurance (Ceded Premiums and Losses Related to Flood Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Ceded premiums written | $ (111,303) | $ (104,651) | $ (211,305) | $ (200,596) |
Ceded premiums earned | (103,471) | (98,499) | (205,497) | (196,528) |
Ceded loss and loss expenses incurred | (59,064) | (27,050) | $ (102,407) | (71,029) |
National Flood Insurance Program [Member] | ||||
Percentage of NFIP claims ceded by federal government | 100.00% | |||
Ceded premiums written | (71,574) | (66,341) | $ (131,587) | (123,010) |
Ceded premiums earned | (63,804) | (60,143) | (126,067) | (119,134) |
Ceded loss and loss expenses incurred | $ (21,063) | $ (10,261) | $ (34,749) | $ (25,980) |
Reserve for Loss and Loss Exp_3
Reserve for Loss and Loss Expense (Rollforward of Reserve for Loss and Loss Expense) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Gross reserve for loss and loss expense, at beginning of year | $ 3,893,868 | $ 3,771,240 |
Less: reinsurance recoverable on unpaid loss and loss expense, at beginning of year | 537,388 | 585,855 |
Net reserve for loss and loss expense, at beginning of year | 3,356,480 | 3,185,385 |
Incurred loss and loss expense for claims occurring in the current year | 783,938 | 756,855 |
Total incurred loss and loss expense | 767,563 | 751,269 |
Paid loss and loss expense for claims occurring in the current year | 210,374 | 214,169 |
Paid loss and loss expense for claims occurring in the prior years | 442,820 | 457,441 |
Total paid loss and loss expense | 653,194 | 671,610 |
Net reserve for loss and loss expense, at end of period | 3,470,849 | 3,265,044 |
Add: reinsurance recoverable on unpaid loss and loss expense, at end of period | 556,203 | 539,321 |
Gross reserve for loss and loss expense, at end of period | 4,027,052 | 3,804,365 |
Change in Historical Claim Rate Experience [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Prior year development | (16,375) | (5,586) |
Casualty Insurance Product Line [Member] | Change in Historical Claim Rate Experience [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Prior year development | (12,000) | |
Property Insurance Product Line [Member] | Change in Historical Claim Rate Experience [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Prior year development | 10,600 | 6,400 |
Workers Compensation [Member] | Casualty Insurance Product Line [Member] | Change in Historical Claim Rate Experience [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Prior year development | (20,000) | (33,000) |
General Liability [Member] | Casualty Insurance Product Line [Member] | Change in Historical Claim Rate Experience [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Prior year development | $ (7,000) | |
Commercial Automobile [Member] | Casualty Insurance Product Line [Member] | Change in Historical Claim Rate Experience [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Prior year development | 15,000 | |
Excess And Surplus Operations [Member] | Casualty Insurance Product Line [Member] | Change in Historical Claim Rate Experience [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Prior year development | $ 6,000 |
Segment Information Narrative (
Segment Information Narrative (Details) | 6 Months Ended |
Jun. 30, 2019 | |
Number of Operating Segments | 4 |
Segment Information (Revenue by
Segment Information (Revenue by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Total net premiums earned | $ 642,619 | $ 604,836 | $ 1,275,192 | $ 1,196,664 |
Miscellaneous income | 3,053 | 3,179 | 5,373 | 5,358 |
Net investment income | 58,505 | 45,553 | 109,123 | 88,784 |
Net realized and unrealized investment gains (losses) | 4,027 | (1,652) | 17,478 | (12,201) |
Total investment revenues | 62,532 | 43,901 | 126,601 | 76,583 |
Total revenues | 708,204 | 651,916 | 1,407,166 | 1,278,605 |
Standard Commercial Lines [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Miscellaneous income | 2,718 | 2,882 | 4,762 | 4,708 |
Total revenues | 509,367 | 478,894 | 1,008,595 | 946,084 |
Standard Commercial Lines [Member] | Commercial Automobile [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net premiums earned | 136,338 | 122,104 | 267,524 | 240,335 |
Standard Commercial Lines [Member] | Workers Compensation [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net premiums earned | 78,464 | 80,021 | 157,179 | 158,844 |
Standard Commercial Lines [Member] | General Liability [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net premiums earned | 164,793 | 153,002 | 326,318 | 302,831 |
Standard Commercial Lines [Member] | Commercial Property [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net premiums earned | 87,136 | 82,162 | 173,203 | 162,488 |
Standard Commercial Lines [Member] | Business Owners' Policies [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net premiums earned | 26,172 | 25,829 | 52,253 | 51,420 |
Standard Commercial Lines [Member] | Bonds Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net premiums earned | 8,967 | 8,335 | 17,871 | 16,469 |
Standard Commercial Lines [Member] | Other Commercial [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net premiums earned | 4,779 | 4,559 | 9,485 | 8,989 |
Standard Personal Lines [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Miscellaneous income | 335 | 297 | 611 | 649 |
Total revenues | 77,448 | 75,974 | 155,031 | 150,582 |
Standard Personal Lines [Member] | Personal Automobile [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net premiums earned | 43,388 | 41,810 | 86,551 | 82,252 |
Standard Personal Lines [Member] | Homeowners [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net premiums earned | 32,013 | 32,223 | 64,143 | 64,424 |
Standard Personal Lines [Member] | Other Personal [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net premiums earned | 1,712 | 1,644 | 3,726 | 3,257 |
Excess And Surplus Operations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Miscellaneous income | 0 | 0 | 0 | 1 |
Total revenues | 58,857 | 53,147 | 116,939 | 105,356 |
Excess And Surplus Operations [Member] | Casualty Insurance Product Line [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net premiums earned | 44,756 | 39,379 | 89,284 | 77,919 |
Excess And Surplus Operations [Member] | Property Insurance Product Line [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net premiums earned | $ 14,101 | $ 13,768 | $ 27,655 | $ 27,436 |
Segment Information (Income Bef
Segment Information (Income Before and After Federal Income Tax) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Net investment income | $ 58,505 | $ 45,553 | $ 109,123 | $ 88,784 |
Net realized and unrealized investment gains (losses) | 4,027 | (1,652) | 17,478 | (12,201) |
Total investment income, before federal income tax | 62,532 | 43,901 | 126,601 | 76,583 |
Tax on investment income | 11,729 | 7,617 | 23,849 | 12,843 |
Total investment income, after federal income tax | 50,803 | 36,284 | 102,752 | 63,740 |
Standard Commercial Lines [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Underwriting gain (loss), before federal income tax | 37,143 | 41,016 | 62,958 | 47,820 |
Underwriting gain (loss), after federal income tax | $ 29,343 | $ 32,403 | $ 49,737 | $ 37,778 |
Combined ratio | 92.70% | 91.40% | 93.70% | 94.90% |
ROE Contribution | 5.90% | 7.80% | 5.20% | 4.50% |
Standard Personal Lines [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Underwriting gain (loss), before federal income tax | $ 4,538 | $ 4,805 | $ 7,705 | $ 3,299 |
Underwriting gain (loss), after federal income tax | $ 3,585 | $ 3,796 | $ 6,087 | $ 2,606 |
Combined ratio | 94.10% | 93.70% | 95.00% | 97.80% |
ROE Contribution | 0.70% | 0.90% | 0.60% | 0.30% |
Excess And Surplus Operations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Underwriting gain (loss), before federal income tax | $ 2,944 | $ (7,789) | $ 7,523 | $ (8,354) |
Underwriting gain (loss), after federal income tax | $ 2,326 | $ (6,154) | $ 5,943 | $ (6,600) |
Combined ratio | 95.00% | 114.70% | 93.60% | 107.90% |
ROE Contribution | 0.50% | (1.50%) | 0.60% | (0.80%) |
Investments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
ROE Contribution | 9.60% | 9.00% | 9.20% | 8.60% |
Segment Information (Reconcilia
Segment Information (Reconciliation of Segment Results to Income Before Federal Income Tax (Details)) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Investment income, before federal income tax | $ 62,532 | $ 43,901 | $ 126,601 | $ 76,583 |
Interest expense | (7,366) | (6,125) | (18,892) | (12,277) |
Corporate expenses | (9,566) | (3,283) | (21,976) | (14,615) |
Income before federal income tax | 90,225 | 72,525 | 163,919 | 92,456 |
Standard Commercial Lines [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Underwriting gain (loss), before federal income tax | 37,143 | 41,016 | 62,958 | 47,820 |
Standard Personal Lines [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Underwriting gain (loss), before federal income tax | 4,538 | 4,805 | 7,705 | 3,299 |
Excess And Surplus Operations [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Underwriting gain (loss), before federal income tax | 2,944 | (7,789) | 7,523 | (8,354) |
Operating Segments [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total income, before federal income tax all segments | $ 107,157 | $ 81,933 | $ 204,787 | $ 119,348 |
Retirement Plans (Components of
Retirement Plans (Components of Net Periodic Benefit Cost) (Details) - Pension Plan [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Interest cost | $ 3,376 | $ 3,095 | $ 6,753 | $ 6,190 | |
Expected return on plan assets | (5,278) | (5,681) | (10,557) | (11,363) | |
Amortization of unrecognized net actuarial loss | 643 | 493 | 1,287 | 987 | |
Total net periodic benefit | [1] | $ (1,259) | $ (2,093) | $ (2,517) | $ (4,186) |
[1] | The components of net periodic pension cost (benefit) are included within "Loss and loss expense incurred" and "Other insurance expenses" on the Consolidated Statements of Income. |
Retirement Plans (Weighted-Aver
Retirement Plans (Weighted-Average Expense Assumptions) (Details) - Pension Plan [Member] | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 4.46% | 3.78% |
Effective interest rate for calculation of interest cost | 4.12% | 3.46% |
Expected return on plan assets | 6.50% | 6.36% |
Comprehensive Income (Component
Comprehensive Income (Components of Comprehensive Income-Gross and Net of Tax) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net income, Gross | $ 90,225 | $ 72,525 | $ 163,919 | $ 92,456 |
Unrealized holding gains (losses) during the period, Gross | 83,546 | (23,993) | 186,472 | (109,308) |
Amounts reclassified into net income: HTM securities, Gross | (21) | (8) | (30) | (20) |
Amounts reclassified into net income: Realized (gains) losses on disposals and OTTI of AFS securities, Gross | (1,300) | 2,870 | (2,377) | 7,419 |
Total unrealized gains (losses) on investment securities, Gross | 82,225 | (21,131) | 184,065 | (101,909) |
Amount reclassified into net income: Net actuarial loss, Gross | 664 | 531 | 1,328 | 1,063 |
Total defined pension and other post-retirement benefit plans, Gross | 664 | 531 | 1,328 | 1,063 |
Other comprehensive income (loss), Gross | 82,889 | (20,600) | 185,393 | (100,846) |
Comprehensive income (loss) before tax | 173,114 | 51,925 | 349,312 | (8,390) |
Net income, Tax | 17,959 | 13,706 | 30,305 | 14,712 |
Unrealized holding gains (losses) during the period, Tax | 17,544 | (5,038) | 39,157 | (22,955) |
Amounts reclassified into net income: HTM securities, Tax | (4) | (2) | (6) | (4) |
Amounts reclassified into net income: Realized (gains) losses on disposals and OTTI of AFS securities, Tax | (273) | 603 | (499) | 1,558 |
Total unrealized gains (losses) on investment securities, Tax | 17,267 | (4,437) | 38,652 | (21,401) |
Amount reclassified into net income: Net actuarial loss, Tax | 140 | 111 | 279 | 223 |
Total defined pension and other post-retirement benefit plans, Tax | 140 | 111 | 279 | 223 |
Other comprehensive income (loss), Tax | 17,407 | (4,326) | 38,931 | (21,178) |
Comprehensive income (loss), Tax | 35,366 | 9,380 | 69,236 | (6,466) |
Net income | 72,266 | 58,819 | 133,614 | 77,744 |
Unrealized holding gains (losses) arising during period | 66,002 | (18,955) | 147,315 | (86,353) |
Amounts reclassified into net income: HTM Securities | (17) | (6) | (24) | (16) |
Amounts reclassified into net income: Realized (gains) losses on disposals and OTTI of available-for-sale securities | (1,027) | 2,267 | (1,878) | 5,861 |
Total unrealized gains (losses) on investment securities | 64,958 | (16,694) | 145,413 | (80,508) |
Amount reclassified into net income: Net actuarial loss | 524 | 420 | 1,049 | 840 |
Total defined benefit pension and post-retirement plans | 524 | 420 | 1,049 | 840 |
Other comprehensive income (loss) | 65,482 | (16,274) | 146,462 | (79,668) |
Comprehensive income (loss) | $ 137,748 | $ 42,545 | $ 280,076 | $ (1,924) |
Comprehensive Income (Compone_2
Comprehensive Income (Components of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance, December 31, 2018 | $ (77,956) | |||
Amounts reclassified from AOCI, Non-credit OTTI | 0 | |||
Amounts reclassified from AOCI, HTM related | $ (17) | $ (6) | (24) | $ (16) |
Amounts reclassified from AOCI, All Other | (1,027) | 2,267 | (1,878) | 5,861 |
OCI before reclassifications, Defined Benefit Pension and Post Retirement Plans | 0 | |||
Amount reclassified into net income: Net actuarial loss | 524 | 420 | 1,049 | 840 |
Other comprehensive income | 65,482 | (16,274) | 146,462 | (79,668) |
Other comprehensive income, defined pension and post retirement plans | 524 | 420 | 1,049 | 840 |
Ending Balance, June 30, 2019 | 68,506 | 68,506 | ||
Available-for-sale Securities [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance, December 31, 2018 | 1,888 | |||
OCI before reclassifications | 147,315 | |||
Other comprehensive income | 145,437 | |||
Ending Balance, June 30, 2019 | 147,325 | 147,325 | ||
Investments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance, December 31, 2018 | 1,888 | |||
OCI before reclassifications | 147,315 | |||
Amounts reclassified from AOCI | (1,902) | |||
Other comprehensive income | 145,413 | |||
Ending Balance, June 30, 2019 | 147,301 | 147,301 | ||
Accumulated Other-than-Temporary Impairment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance, December 31, 2018 | (71) | |||
OCI before reclassifications | 0 | |||
Other comprehensive income | 0 | |||
Ending Balance, June 30, 2019 | (71) | (71) | ||
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Held-to-maturity Securities [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance, December 31, 2018 | 71 | |||
OCI before reclassifications | 0 | |||
Other comprehensive income | (24) | |||
Ending Balance, June 30, 2019 | 47 | 47 | ||
Accumulated Defined Benefit Plans Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance, December 31, 2018 | (79,844) | |||
Amount reclassified into net income: Net actuarial loss | 1,049 | |||
Ending Balance, June 30, 2019 | (78,795) | (78,795) | ||
Accumulated other comprehensive income (loss) [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance, December 31, 2018 | (77,956) | |||
OCI before reclassifications | 147,315 | |||
Amounts reclassified from AOCI | (853) | |||
Other comprehensive income | 65,482 | $ (16,274) | 146,462 | $ (79,668) |
Ending Balance, June 30, 2019 | $ 68,506 | $ 68,506 |
Comprehensive Income (Reclassif
Comprehensive Income (Reclassification out of AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net realized and unrealized gains (losses) | $ 4,027 | $ (1,652) | $ 17,478 | $ (12,201) |
Net investment income | (58,505) | (45,553) | (109,123) | (88,784) |
Loss and loss expense incurred | 380,984 | 366,328 | 767,563 | 751,269 |
Other insurance expenses | 86,662 | 80,994 | 171,741 | 164,234 |
Income before federal income tax | 90,225 | 72,525 | 163,919 | 92,456 |
Total federal income tax expense | (17,959) | (13,706) | (30,305) | (14,712) |
Net income | 72,266 | 58,819 | 133,614 | 77,744 |
Reclassification out of AOCI | ||||
Net income | (520) | 2,681 | (853) | 6,685 |
Pension Plan [Member] | Reclassification out of AOCI | ||||
Loss and loss expense incurred | 145 | 113 | 290 | 225 |
Other insurance expenses | 519 | 418 | 1,038 | 838 |
Income before federal income tax | 664 | 531 | 1,328 | 1,063 |
Total federal income tax expense | (140) | (111) | (279) | (223) |
Net income | 524 | 420 | 1,049 | 840 |
Held-to-maturity Securities [Member] | Reclassification out of AOCI | ||||
Net realized and unrealized gains (losses) | (9) | (7) | (9) | (6) |
Net investment income | (12) | (1) | (21) | (14) |
Income before federal income tax | (21) | (8) | (30) | (20) |
Total federal income tax expense | 4 | 2 | 6 | 4 |
Net income | (17) | (6) | (24) | (16) |
Available-for-sale Securities [Member] | Reclassification out of AOCI | ||||
Net realized and unrealized gains (losses) | (1,300) | 2,870 | (2,377) | 7,419 |
Income before federal income tax | (1,300) | 2,870 | (2,377) | 7,419 |
Total federal income tax expense | 273 | (603) | 499 | (1,558) |
Net income | $ (1,027) | $ 2,267 | $ (1,878) | $ 5,861 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Operating lease right-of-use asset | $ 29,632 | $ 20,700 | ||||||
Operating lease liability | 30,336 | 21,000 | ||||||
Finance lease right-of-use asset | 1,106 | 900 | ||||||
Finance lease liabilities | $ 1,109 | [1] | 900 | $ 0 | [1] | |||
Retained Earnings [Member] | Accounting Standards Update 2016-02 [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Cumulative effect of new accounting principle in period of adoption | $ 0 | $ 300 | $ 342 | $ 0 | $ 0 | |||
[1] | Concurrent with the adoption of ASU 2016-02 discussed in Note 2. "Adoption of Accounting Pronouncements," finance lease obligations are now captured in Long-term debt on our Consolidated Balance Sheets. |
Leases (Components of Lease Exp
Leases (Components of Lease Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Lease Expense [Line Items] | ||
Operating lease cost | $ 2,245 | $ 4,397 |
Finance lease cost: Amortization of assets | 315 | 599 |
Finance lease cost: Interest on lease liabilities | 7 | 7 |
Total finance lease cost | 322 | 606 |
Variable lease cost | (120) | 668 |
Short-term lease cost | $ 437 | $ 1,175 |
Leases (Supplemental Lease Info
Leases (Supplemental Lease Information) (Details) | Jun. 30, 2019 | |
Supplemental Lease Information [Line Items] | ||
Weighted average remaining lease term, operating leases | 6 years | |
Weighted average remaining lease term, finance leases | 2 years | |
Weighted average discount rate, operating leases | 3.40% | |
Weighted average discount rate, finance leases | 1.80% | [1] |
[1] | Prior to adoption of ASU 2016-02, our historical capital lease liability and asset were measured using an un-discounted cash flow stream due to immateriality of the capital lease population. |
Leases (Lease Assets and Liabil
Leases (Lease Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | [1] | |
Lease Assets and Liabilities [Line Items] | |||||
Operating leases, Other assets | $ 29,632 | $ 20,700 | |||
Operating leases, Other liabilities | 30,336 | 21,000 | |||
Finance leases, Property and equipment - at cost, net of accumulated depreciation and amortization | 1,106 | 900 | |||
Finance leases, Long-term debt | $ 1,109 | [1] | $ 900 | $ 0 | |
[1] | Concurrent with the adoption of ASU 2016-02 discussed in Note 2. "Adoption of Accounting Pronouncements," finance lease obligations are now captured in Long-term debt on our Consolidated Balance Sheets. |
Leases (Maturities of Lease Lia
Leases (Maturities of Lease Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | ||
Lease Liabilities Payments Due [Line Items] | |||||
Finance lease liability, due remainder of fiscal year | $ 389 | ||||
Finance lease liability, due 2020 | 448 | ||||
Finance lease liability, due 2021 | 244 | ||||
Finance lease liability, due 2022 | 53 | ||||
Finance lease liability, due 2023 | 0 | ||||
Finance lease liability, due after 2023 | 0 | ||||
Finance lease liability, total payments | 1,134 | ||||
Finance lease imputed interest | 25 | ||||
Finance lease liabilities | 1,109 | [1] | $ 900 | $ 0 | [1] |
Operating lease liability, due remainder of fiscal year | 4,044 | ||||
Operating lease liability, due 2020 | 7,737 | ||||
Operating lease liability, due 2021 | 5,483 | ||||
Operating lease liability, due 2022 | 3,912 | ||||
Operating lease liability, due 2023 | 2,900 | ||||
Operating lease liability, due after 2023 | 9,698 | ||||
Operating lease liability, total payments | 33,774 | ||||
Operating lease imputed interest | 3,438 | ||||
Operating lease liability | 30,336 | $ 21,000 | |||
Total lease liability, due remainder of fiscal year | 4,433 | ||||
Total lease liability, due 2020 | 8,185 | 8,490 | |||
Total lease liability, due 2021 | 5,727 | 7,496 | |||
Total lease liability, due 2022 | 3,965 | 5,105 | |||
Total lease liability, due 2023 | 2,900 | 3,641 | |||
Total lease liability, due after 2023 | 9,698 | 9,698 | |||
Total lease liability, total payments | 34,908 | $ 37,330 | |||
Total imputed interest | 3,463 | ||||
Total lease liability | $ 31,445 | ||||
[1] | Concurrent with the adoption of ASU 2016-02 discussed in Note 2. "Adoption of Accounting Pronouncements," finance lease obligations are now captured in Long-term debt on our Consolidated Balance Sheets. |
Leases (Schedule of Future Mini
Leases (Schedule of Future Minimum Rental Payments Prior Year) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Capital leases, due 2019 | $ 728 | |
Capital leases, due 2020 | 141 | |
Capital leases, due 2021 | 22 | |
Capital leases, due 2022 | 0 | |
Capital leases, due 2023 | 0 | |
Capital leases, due after 2023 | 0 | |
Total capital lease payments | 891 | |
Operating leases, due 2019 | 7,762 | |
Operating leases, due 2020 | 7,355 | |
Operating leases, due 2021 | 5,083 | |
Operating leases, due 2022 | 3,641 | |
Operating leases, due 2023 | 2,900 | |
Operating leases, due after 2023 | 9,698 | |
Total operating lease payments | 36,439 | |
Total leases, due 2019 | $ 8,185 | 8,490 |
Total leases, due 2020 | 5,727 | 7,496 |
Total leases, due 2021 | 3,965 | 5,105 |
Total leases, due 2022 | 2,900 | 3,641 |
Total leases, due 2023 | 2,900 | |
Total leases, due after 2023 | 9,698 | 9,698 |
Total lease payments | $ 34,908 | $ 37,330 |