Delphi Financial Group, Inc. | ||||
1105 North Market Street, Suite 1230 | ||||
P.O. Box 8985 | ||||
Wilmington, Delaware 19899 | ||||
VIA EDGAR SYSTEM |
January 6, 2011
Mr. Jim B. Rosenberg
Senior Assistant Chief Accountant
Securities and Exchange Commission
Division of Corporate Finance
450 Fifth Street, N.W.
Mail Stop 0309
Washington, D.C. 20549
Re: | Delphi Financial Group, Inc. |
Form 10-K for the year ended December 31, 2010 (“2010 Form 10-K”) |
Filed March 1, 2011 |
File No. 001-11462 |
Dear Mr. Rosenberg:
This letter and its exhibit will respond to the request for information contained in your letter dated December 14, 2011 (the “ Letter”) relating to the above-referenced filing of Delphi Financial Group, Inc. (the “Company”). For your convenience, the text of such request is set forth below, followed by the related response.
2010 Form 10-K
Management’s Discussion and Analysis of Financial Condition and Results of Operations, Liquidity and Capital Resources, page 38
1. Please provide us the following for your investments in municipal fixed maturity securities as of December 31, 2010:
• | The fair value and amortized cost representing general obligation versus special revenue bonds, and the types of activities supporting any special revenue bonds. |
• | Each state and municipality that comprises more than 10% of total equity as shown on your balance sheet at December 31, 2010 showing the fair value and amortized cost, credit rating with and without any third party guarantees and broken down by general obligation versus special revenue bonds. |
Mr. Jim B. Rosenberg
Securities and Exchange Commission
January 6, 2011
Page 2
Response:
Exhibit A to this letter contains the requested information regarding the Company’s investments in municipal fixed maturity securities, in each case as of December 31, 2010.
The Company acknowledges that:
• | The Company is responsible for the adequacy and accuracy of the disclosure in its filings with the Commission; |
• | Staff comments or changes to disclosure in response to staff comments do not foreclose the Commission from taking any action with respect to such filings; and |
• | The Company may not assert staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the United States. |
Please do not hesitate to contact me at (267) 256-3684 with any further questions regarding these matters. Thank you for your time and attention.
Very truly yours, |
/s/ THOMAS W. BURGHART |
Thomas W. Burghart |
Senior Vice President and Treasurer |
cc: | Robert Rosenkranz |
Stephan Kiratsous |
Chad Coulter |
Paul Van Haren |
- 2 -
Exhibit A
Municipal fixed maturity securities - general obligation bonds and special revenue bonds
Fair Value | Amortized Cost | |||||||
Special Revenue Bonds | 1,493,888,143 | 1,516,344,451 | ||||||
General Obligation Bonds | 612,441,848 | 622,649,562 | ||||||
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|
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| |||||
Total | 2,106,329,991 | 2,138,994,013 | ||||||
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Types of activities supporting special revenue bonds
Fair Value | Amortized Cost | |||||||
Development | 49,345,088 | 50,599,766 | ||||||
Education | 236,886,101 | 245,778,144 | ||||||
Facilities | 50,419,114 | 53,101,883 | ||||||
Medical | 263,423,105 | 265,940,113 | ||||||
Refunding Bonds | 41,791,838 | 42,297,283 | ||||||
Transportation | 78,542,644 | 79,297,314 | ||||||
Utilities | 231,350,117 | 234,470,114 | ||||||
Other | 23,287,687 | 23,512,402 | ||||||
Housing | 518,842,449 | 521,347,432 | ||||||
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|
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| |||||
Total | 1,493,888,143 | 1,516,344,451 | ||||||
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States whose municipal fixed maturity securities comprise more than 10% of total equity
With third party guarantees | Without third party guarantees | Fair Value | Amortized Cost | |||||||||||
California | Special Revenue Bonds | AAA | AAA | 37,905,906 | 39,583,271 | |||||||||
AA | AA | 18,796,119 | 18,784,849 | |||||||||||
AA | A | 1,228,712 | 1,244,404 | |||||||||||
AA | Not Rated | 500,100 | 499,878 | |||||||||||
A | A | 16,745,107 | 17,534,764 | |||||||||||
BBB | BBB | 2,322,752 | 2,382,075 | |||||||||||
Not Rated | Not Rated | 355,081 | 357,650 | |||||||||||
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| |||||||||||
Special Revenue Bonds Total | 77,853,778 | 80,386,891 | ||||||||||||
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General Obligation Bonds | AAA | AAA | 450,558 | 450,563 | ||||||||||
AA | AA | 50,290,201 | 53,376,312 | |||||||||||
AA | A | 7,071,028 | 7,418,292 | |||||||||||
AA | Not Rated | 1,561,590 | 1,546,691 | |||||||||||
A | A | 51,596,604 | 52,941,989 | |||||||||||
A | BBB | 1,708,416 | 2,075,771 | |||||||||||
BBB | BBB | 246,126 | 283,438 | |||||||||||
BB | BB | 285,632 | 400,000 | |||||||||||
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General Obligation Bonds Total | 113,210,154 | 118,493,056 | ||||||||||||
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| |||||||||||
California Total | 191,063,932 | 198,879,947 | ||||||||||||
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With third party guarantees | Without third party guarantees | Fair Value | Amortized Cost | |||||||||||
Illinois | Special Revenue Bonds | AAA | AAA | 56,741,391 | 53,630,405 | |||||||||
AA | AA | 17,907,929 | 17,795,982 | |||||||||||
AA | A | 3,065,535 | 3,073,897 | |||||||||||
AA | BBB | 1,793,695 | 1,822,827 | |||||||||||
A | A | 27,018,167 | 28,161,236 | |||||||||||
BBB | BBB | 4,798,166 | 5,316,909 | |||||||||||
B | B | 1,170,093 | 2,052,647 | |||||||||||
Not Rated | Not Rated | 787,415 | 898,513 | |||||||||||
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| |||||||||||
Special Revenue Bonds Total | 113,282,390 | 112,752,416 | ||||||||||||
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General Obligation Bonds | AAA | AAA | 1,653,915 | 1,545,000 | ||||||||||
AA | AA | 28,483,647 | 28,341,687 | |||||||||||
AA | A | 5,706,482 | 6,296,036 | |||||||||||
AA | BBB | 1,321,787 | 1,274,400 | |||||||||||
AA | Not Rated | 1,836,743 | 1,941,990 | |||||||||||
A | A | 6,231,587 | 6,607,546 | |||||||||||
Not Rated | Not Rated | 1,503,664 | 1,769,068 | |||||||||||
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| |||||||||||
General Obligation Bonds Total | 46,737,823 | 47,775,727 | ||||||||||||
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Illinois Total | 160,020,213 | 160,528,144 | ||||||||||||
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Note: All information set forth in this Exhibit A is as of December 31, 2010. There were no municipalities whose fixed maturity securities comprised more than 10% of total equity as shown on the Company’s balance sheet at December 31, 2010.