Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 19, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 0-24000 | |
Entry Registrant Name | ERIE INDEMNITY COMPANY | |
Entity Incorporation, State or Country Code | PA | |
Entity Tax Identification Number | 25-0466020 | |
Entity Address, Address Line One | 100 Erie Insurance Place, | |
Entity Address, City or Town | Erie, | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 16530 | |
City Area Code | 814 | |
Local Phone Number | 870-2000 | |
Title of 12(b) Security | Class A common stock, | |
Trading Symbol | ERIE | |
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 Central Index Key | 0000922621 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Class A common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 46,189,068 | |
Class B common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 2,542 |
STATEMENTS OF OPERATIONS (UNAUD
STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Operating revenue | ||||
Total operating revenue | $ 990,438 | $ 839,870 | $ 1,871,139 | $ 1,592,335 |
Operating expenses | ||||
Total operating expenses | 800,230 | 705,712 | 1,542,119 | 1,347,634 |
Operating income | 190,208 | 134,158 | 329,020 | 244,701 |
Investment income | ||||
Net investment income | 16,010 | 13,535 | 31,913 | 15,718 |
Net realized and unrealized investment (losses) gains | (1,795) | (1,737) | 58 | (7,019) |
Net impairment losses recognized in earnings | (388) | (171) | (3,065) | (1,804) |
Total investment income | 13,827 | 11,627 | 28,906 | 6,895 |
Other income | 3,292 | 3,305 | 6,703 | 6,642 |
Income before income taxes | 207,327 | 149,090 | 364,629 | 258,238 |
Income tax expense | 43,424 | 31,238 | 76,174 | 54,145 |
Net income | $ 163,903 | $ 117,852 | $ 288,455 | $ 204,093 |
Class A common stock | ||||
Earnings per share - Basic and diluted: | ||||
Common stock - basic (in dollars per share) | $ 3.52 | $ 2.53 | $ 6.19 | $ 4.38 |
Common stock - diluted (in dollars per share) | $ 3.13 | $ 2.25 | $ 5.52 | $ 3.90 |
Weighted average shares outstanding – Basic | ||||
Common stock - basic (in shares) | 46,189,042 | 46,189,026 | 46,189,028 | 46,188,923 |
Weighted average shares outstanding – Diluted | ||||
Common stock - diluted (in shares) | 52,305,299 | 52,299,974 | 52,303,551 | 52,298,298 |
Dividends declared per share | ||||
Dividends declared (in dollars per share) | $ 1.275 | $ 1.19 | $ 2.55 | $ 2.38 |
Class B common stock | ||||
Earnings per share - Basic and diluted: | ||||
Common stock - basic (in dollars per share) | 528 | 380 | 929 | 657 |
Common stock - diluted (in dollars per share) | $ 528 | $ 380 | $ 929 | $ 657 |
Weighted average shares outstanding – Basic | ||||
Common stock - basic (in shares) | 2,542 | 2,542 | 2,542 | 2,542 |
Weighted average shares outstanding – Diluted | ||||
Common stock - diluted (in shares) | 2,542 | 2,542 | 2,542 | 2,542 |
Dividends declared per share | ||||
Dividends declared (in dollars per share) | $ 191.25 | $ 178.50 | $ 382.50 | $ 357 |
Management fee revenue - policy issuance and renewal services | ||||
Operating revenue | ||||
Total operating revenue | $ 760,886 | $ 633,339 | $ 1,426,572 | $ 1,191,429 |
Operating expenses | ||||
Total operating expenses | 594,202 | 521,246 | 1,144,524 | 990,341 |
Management fee revenue - administrative services | ||||
Operating revenue | ||||
Total operating revenue | 17,051 | 15,636 | 33,985 | 30,825 |
Administrative services reimbursement revenue | ||||
Operating revenue | ||||
Total operating revenue | 206,028 | 184,466 | 397,595 | 357,293 |
Operating expenses | ||||
Total operating expenses | 206,028 | 184,466 | 397,595 | 357,293 |
Service agreement revenue | ||||
Operating revenue | ||||
Total operating revenue | $ 6,473 | $ 6,429 | $ 12,987 | $ 12,788 |
STATEMENTS OF COMPREHENSIVE INC
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 163,903 | $ 117,852 | $ 288,455 | $ 204,093 |
Other comprehensive (loss) income, net of tax | ||||
Change in unrealized holding gains (losses) on available-for-sale securities | 1,541 | (1,746) | 787 | 8,748 |
Pension and other postretirement plans | (3,434) | (2,742) | (4,510) | (5,484) |
Total other comprehensive (loss) income, net of tax | (1,893) | (4,488) | (3,723) | 3,264 |
Comprehensive income | $ 162,010 | $ 113,364 | $ 284,732 | $ 207,357 |
STATEMENTS OF FINANCIAL POSITIO
STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents (includes restricted cash of $14,027 and $12,542, respectively) | $ 170,634 | $ 144,055 |
Available-for-sale securities | 47,734 | 82,017 |
Receivables from Erie Insurance Exchange and affiliates, net | 708,171 | 625,338 |
Prepaid expenses and other current assets | 83,529 | 69,321 |
Accrued investment income | 10,204 | 9,458 |
Total current assets | 1,020,272 | 930,189 |
Available-for-sale securities, net | 946,525 | 879,224 |
Available-for-sale securities lent | 6,125 | 0 |
Equity securities | 80,128 | 84,253 |
Fixed assets, net | 469,145 | 442,610 |
Agent loans, net | 56,813 | 58,434 |
Defined benefit pension plan | 65,221 | 34,320 |
Other assets, net | 47,731 | 42,934 |
Total assets | 2,691,960 | 2,471,964 |
Current liabilities: | ||
Commissions payable | 413,205 | 353,709 |
Agent incentive compensation | 44,870 | 68,077 |
Accounts payable and accrued liabilities | 198,689 | 175,622 |
Dividends payable | 59,377 | 59,377 |
Contract liability | 41,570 | 41,210 |
Deferred executive compensation | 8,216 | 10,982 |
Securities lending payable | 6,345 | 0 |
Total current liabilities | 772,272 | 708,977 |
Defined benefit pension plan | 26,591 | 26,260 |
Contract liability | 20,645 | 19,910 |
Deferred executive compensation | 16,341 | 20,936 |
Deferred income taxes, net | 5,192 | 11,481 |
Other long-term liabilities | 22,106 | 21,565 |
Total liabilities | 863,147 | 809,129 |
Shareholders’ equity | ||
Additional paid-in-capital | 16,466 | 16,466 |
Accumulated other comprehensive loss | (17,123) | (13,400) |
Retained earnings | 2,973,390 | 2,803,689 |
Total contributed capital and retained earnings | 2,974,903 | 2,808,925 |
Treasury stock, at cost; 22,110,132 shares held | (1,168,297) | (1,169,165) |
Deferred compensation | 22,207 | 23,075 |
Total shareholders’ equity | 1,828,813 | 1,662,835 |
Total liabilities and shareholders’ equity | 2,691,960 | 2,471,964 |
Class A common stock | ||
Shareholders’ equity | ||
Common stock | 1,992 | 1,992 |
Class B common stock | ||
Shareholders’ equity | ||
Common stock | $ 178 | $ 178 |
STATEMENTS OF FINANCIAL POSIT_2
STATEMENTS OF FINANCIAL POSITION (Parenthetical) $ in Thousands | Jun. 30, 2024 USD ($) $ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares |
Restricted cash | $ | $ 14,027 | $ 12,542 |
Treasury stock (in shares) | 22,110,132 | 22,110,132 |
Class A common stock | ||
Common stock, stated value per share (in dollars per share) | $ / shares | $ 0.0292 | $ 0.0292 |
Common stock, authorized (in shares) | 74,996,930 | 74,996,930 |
Common stock, issued (in shares) | 68,299,200 | 68,299,200 |
Common stock, outstanding (in shares) | 46,189,068 | 46,189,068 |
Class B common stock | ||
Common stock, stated value per share (in dollars per share) | $ / shares | $ 70 | $ 70 |
Common stock, authorized (in shares) | 3,070 | 3,070 |
Common stock, issued (in shares) | 2,542 | 2,542 |
Common stock, outstanding (in shares) | 2,542 | 2,542 |
Ratio for converting shares of Class B common stock into shares of Class A common stock | 2,400 | 2,400 |
STATEMENTS OF SHAREHOLDERS' EQU
STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Additional paid-in-capital | Accumulated other comprehensive (loss) income | Retained earnings | Treasury stock | Deferred compensation | Class A common stock | Class A common stock Common stock | Class A common stock Retained earnings | Class B common stock | Class B common stock Common stock | Class B common stock Retained earnings | |
Beginning balance at Dec. 31, 2022 | $ 1,448,408 | $ 16,481 | $ (7,414) | $ 2,583,261 | $ (1,168,949) | $ 22,859 | $ 1,992 | $ 178 | |||||
Increase (decrease) in shareholders' equity | |||||||||||||
Net income | 86,241 | 86,241 | |||||||||||
Other comprehensive income (loss) | 7,752 | 7,752 | |||||||||||
Dividends declared | $ (54,965) | $ (54,965) | $ (454) | $ (454) | |||||||||
Net purchase of treasury stock | [1] | (15) | (15) | 0 | |||||||||
Deferred compensation | 0 | (822) | 822 | ||||||||||
Rabbi trust distribution | [2] | 0 | 416 | (416) | |||||||||
Ending balance at Mar. 31, 2023 | 1,486,967 | 16,466 | 338 | 2,614,083 | (1,169,355) | 23,265 | 1,992 | 178 | |||||
Beginning balance at Dec. 31, 2022 | 1,448,408 | 16,481 | (7,414) | 2,583,261 | (1,168,949) | 22,859 | 1,992 | 178 | |||||
Increase (decrease) in shareholders' equity | |||||||||||||
Net income | 204,093 | ||||||||||||
Other comprehensive income (loss) | 3,264 | 3,264 | |||||||||||
Ending balance at Jun. 30, 2023 | 1,544,912 | 16,466 | (4,150) | 2,676,516 | (1,168,380) | 22,290 | 1,992 | 178 | |||||
Beginning balance at Mar. 31, 2023 | 1,486,967 | 16,466 | 338 | 2,614,083 | (1,169,355) | 23,265 | 1,992 | 178 | |||||
Increase (decrease) in shareholders' equity | |||||||||||||
Net income | 117,852 | 117,852 | |||||||||||
Other comprehensive income (loss) | (4,488) | (4,488) | |||||||||||
Dividends declared | (54,965) | (54,965) | (454) | (454) | |||||||||
Net purchase of treasury stock | [1] | 0 | 0 | 0 | |||||||||
Deferred compensation | 0 | (621) | 621 | ||||||||||
Rabbi trust distribution | [2] | 0 | 1,596 | (1,596) | |||||||||
Ending balance at Jun. 30, 2023 | 1,544,912 | 16,466 | (4,150) | 2,676,516 | (1,168,380) | 22,290 | 1,992 | 178 | |||||
Beginning balance at Dec. 31, 2023 | 1,662,835 | 16,466 | (13,400) | 2,803,689 | (1,169,165) | 23,075 | 1,992 | 178 | |||||
Increase (decrease) in shareholders' equity | |||||||||||||
Net income | 124,552 | 124,552 | |||||||||||
Other comprehensive income (loss) | (1,830) | (1,830) | |||||||||||
Dividends declared | (58,891) | (58,891) | (486) | (486) | |||||||||
Deferred compensation | 0 | (861) | 861 | ||||||||||
Rabbi trust distribution | [2] | 0 | 709 | (709) | |||||||||
Ending balance at Mar. 31, 2024 | 1,726,180 | 16,466 | (15,230) | 2,868,864 | (1,169,317) | 23,227 | 1,992 | 178 | |||||
Beginning balance at Dec. 31, 2023 | 1,662,835 | 16,466 | (13,400) | 2,803,689 | (1,169,165) | 23,075 | 1,992 | 178 | |||||
Increase (decrease) in shareholders' equity | |||||||||||||
Net income | 288,455 | ||||||||||||
Other comprehensive income (loss) | (3,723) | (3,723) | |||||||||||
Net purchase of treasury stock | [1] | 0 | 0 | 0 | |||||||||
Ending balance at Jun. 30, 2024 | 1,828,813 | 16,466 | (17,123) | 2,973,390 | (1,168,297) | 22,207 | 1,992 | 178 | |||||
Beginning balance at Mar. 31, 2024 | 1,726,180 | 16,466 | (15,230) | 2,868,864 | (1,169,317) | 23,227 | 1,992 | 178 | |||||
Increase (decrease) in shareholders' equity | |||||||||||||
Net income | 163,903 | 163,903 | |||||||||||
Other comprehensive income (loss) | (1,893) | (1,893) | |||||||||||
Dividends declared | $ (58,891) | $ (58,891) | $ (486) | $ (486) | |||||||||
Net purchase of treasury stock | [1] | 0 | 0 | 0 | |||||||||
Deferred compensation | 0 | (518) | 518 | ||||||||||
Rabbi trust distribution | [2] | 0 | 1,538 | (1,538) | |||||||||
Ending balance at Jun. 30, 2024 | $ 1,828,813 | $ 16,466 | $ (17,123) | $ 2,973,390 | $ (1,168,297) | $ 22,207 | $ 1,992 | $ 178 | |||||
[1]Net purchase of treasury stock includes the repurchase of our Class A common stock in the open market that were subsequently distributed to satisfy stock-based compensation awards.[2]Distributions of our Class A shares were made from the rabbi trust to five incentive compensation deferral plan participants in 2024 and 2023. |
STATEMENTS OF SHAREHOLDERS' E_2
STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) (Parenthetical) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 Participants $ / shares | Mar. 31, 2024 $ / shares | Jun. 30, 2023 Participants $ / shares | Mar. 31, 2023 $ / shares | Jun. 30, 2024 Participants $ / shares | Jun. 30, 2023 Participants $ / shares | |
Rabbi trust, number of incentive compensation deferral plan participants receiving distributions | Participants | 5 | 5 | 5 | 5 | ||
Class A common stock | ||||||
Dividends declared (in dollars per share) | $ 1.275 | $ 1.275 | $ 1.19 | $ 1.19 | $ 2.55 | $ 2.38 |
Class B common stock | ||||||
Dividends declared (in dollars per share) | $ 191.25 | $ 191.25 | $ 178.50 | $ 178.50 | $ 382.50 | $ 357 |
STATEMENTS OF CASH FLOWS (UNAUD
STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities | ||
Management fee received | $ 1,389,944 | $ 1,162,575 |
Administrative services reimbursements received | 373,908 | 359,332 |
Service agreement revenue received | 12,989 | 12,788 |
Net investment income received | 31,590 | 27,069 |
Commissions paid to agents | (681,345) | (564,218) |
Incentive compensation paid to agents | (80,633) | (106,003) |
Salaries and wages paid | (131,226) | (123,501) |
Pension contribution and employee benefits paid | (70,588) | (37,460) |
General operating expenses paid | (161,102) | (151,975) |
Administrative services expenses paid | (385,036) | (362,228) |
Income taxes paid | (79,881) | (36,372) |
Net cash provided by operating activities | 218,620 | 180,007 |
Purchase of investments: | ||
Available-for-sale securities | (236,000) | (123,767) |
Equity securities | (13,142) | (18,690) |
Other investments | (7,000) | (7) |
Proceeds from investments: | ||
Available-for-sale securities sales | 105,172 | 78,808 |
Available-for-sale securities maturities/calls | 100,655 | 28,972 |
Equity securities | 19,929 | 10,579 |
Other investments | 0 | 271 |
Purchase of fixed assets | (50,488) | (45,003) |
Loans to agents and other | (4,340) | (4,150) |
Collections on agent loans | 5,582 | 4,723 |
Net cash used in investing activities | (79,632) | (68,264) |
Cash flows from financing activities | ||
Dividends paid to shareholders | (118,754) | (110,837) |
Net changes in cash collateral for securities lent | 6,345 | 0 |
Net cash used in financing activities | (112,409) | (110,837) |
Net increase in cash, cash equivalents and restricted cash | 26,579 | 906 |
Cash, cash equivalents and restricted cash beginning of period | 144,055 | 142,090 |
Cash, cash equivalents and restricted cash end of period | 170,634 | 142,996 |
Supplemental disclosure of noncash transactions | ||
Liability incurred to purchase fixed assets | 11,163 | 0 |
Operating lease assets obtained in exchange for lease liabilities | $ 4,663 | $ 3,757 |
Nature of Operations
Nature of Operations | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Erie Indemnity Company ("Indemnity", "we", "us", "our") is a publicly held Pennsylvania business corporation that has since its incorporation in 1925 served as the attorney-in-fact for the subscribers (policyholders) at the Erie Insurance Exchange ("Exchange"). The Exchange, which also commenced business in 1925, is a Pennsylvania-domiciled reciprocal insurer that writes property and casualty insurance. Our primary function as attorney-in-fact is to perform policy issuance and renewal services on behalf of the subscribers at the Exchange. We also act as attorney-in-fact on behalf of the subscribers at the Exchange with respect to all claims handling and investment management services, as well as the service provider for all claims handling, life insurance and investment management services for the Exchange's insurance subsidiaries, collectively referred to as "administrative services". Acting as attorney-in-fact in these two capacities is done in accordance with a subscriber's agreement (a limited power of attorney) executed individually by each subscriber (policyholder), which appoints Indemnity as each subscriber's attorney-in-fact to transact certain business on their behalf. In accordance with the subscriber's agreement for acting as attorney-in-fact in these two capacities, we retain a management fee calculated as a percentage of the direct and affiliated assumed premiums written by the Exchange. The policy issuance and renewal services we provide on behalf of the subscribers at the Exchange are related to the sales, underwriting and issuance of policies. The sales related services we provide include agent compensation and certain sales and advertising support services. Agent compensation includes scheduled commissions to agents based upon premiums written as well as incentive compensation, which is earned by achieving targeted measures. The underwriting services we provide include underwriting and policy processing. The remaining services we provide include customer service and administrative support. We also provide information technology services that support all the functions listed above. Included in these expenses are allocations of costs for departments that support these policy issuance and renewal functions. Consistent with its legal structure as a reciprocal insurer, the Exchange does not have any employees or officers. Therefore, it enters into contractual relationships by and through the subscribers' attorney-in-fact. Indemnity serves as the attorney-in-fact on behalf of the subscribers at the Exchange with respect to its administrative services as enumerated in the subscriber's agreement. The Exchange's insurance subsidiaries also utilize Indemnity for these services in accordance with the service agreements between each of the subsidiaries and Indemnity. Claims handling services include costs incurred in the claims process, including the adjustment, investigation, defense, recording and payment functions. Life insurance management services include costs incurred in the management and processing of life insurance business. Investment management services are related to investment trading activity, accounting and all other functions attributable to the investment of funds. Included in these expenses are allocations of costs for departments that support these administrative functions. The subscriber's agreement and service agreements provide for reimbursement of amounts incurred for these services to Indemnity. Reimbursements are settled at cost. State insurance regulations require that intercompany service agreements and any material amendments be approved in advance by the state insurance department. Our results of operations are tied to the growth and financial condition of the Exchange. If any events occurred that impaired the Exchange’s ability to grow or sustain its financial condition, including but not limited to reduced financial strength ratings, disruption in the independent agency relationships, significant catastrophe losses or products not meeting customer demands, the Exchange could find it more difficult to retain its existing business and attract new business. A decline in the business of the Exchange almost certainly could have as a consequence a decline in the total premiums paid and a correspondingly adverse effect on the amount of the management fees we receive. We also have an exposure to a concentration of credit risk related to the unsecured receivables due from the Exchange for net management fee and other reimbursements. See Note 12, "Concentrations of Credit Risk". |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of presentation The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. For further information, refer to the financial statements and footnotes included in our Form 10-K for the year ended December 31, 2023 as filed with the Securities and Exchange Commission ("SEC") on February 26, 2024. Use of estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Recently issued accounting standards and disclosure rules In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" , which requires entities to disclose significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported period of profit or loss, and requires entities with a single reporting segment to provide all disclosures required by Topic 280. The amendments in this ASU are required to be adopted for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The update is required to be applied retrospectively to prior periods presented in the financial statements, based on the significant segment expense categories identified and disclosed in the period of adoption. This will have no impact on our financial statements. We are currently evaluating the impact of adoption on our disclosures. In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" , which requires entities to disclose specific categories in an effective tax rate reconciliation, additional information for reconciling items that meet a quantitative threshold, and certain information about income taxes paid. The amendments in this ASU are required to be adopted for fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments can be applied on either a prospective or retrospective basis. This will have no impact on our financial statements. We are currently evaluating the impact of adoption on our disclosures. In March 2024, the SEC adopted final rules under SEC Release No. 33-11275, "The Enhancement and Standardization of Climate-Related Disclosures for Investors" , requiring registrants to disclose certain climate-related information in registration statements and annual reports. The final rules include disclosure of climate-related risks that are reasonably likely to have a material impact on a registrant’s business, results of operations or financial condition. Disclosures related to significant effects of severe weather events and other natural conditions and amounts related to carbon offsets and renewable energy credits or certificates are required in the financial statements in certain circumstances. Disclosure requirements will phase in for fiscal years beginning in 2025 and be applied prospectively upon adoption. On April 4, 2024, the SEC determined to voluntarily stay the final rules pending ongoing litigation. We are currently evaluating the impact of adoption on our disclosures. Other assets Other assets primarily include limited partnership investments, other loans receivable, held-to-maturity securities, operating lease assets and other long-term prepaid assets. Limited partnership investments are recorded using the equity method of accounting. Other loans receivable include loans issued to fund real estate development projects supporting revitalization efforts in our community. The loans are carried at unpaid principal balance, including any paid-in-kind interest capitalized as additional principal, if applicable, net of a current expected credit loss allowance. Any current portion of other loans receivable is recorded in prepaid expenses and other current assets. Held-to-maturity securities are carried at amortized cost, net of a current expected credit loss allowance. The allowances are calculated using the estimated value of, and priority rights to, collateral in the event of default or external loss rates based on comparable losses, and considers current market conditions and forecasted information. Changes to the allowances are recognized in earnings as adjustments to net impairment recoveries (losses) or other income (expense) depending on the nature of the asset. Interest on other loans receivable and held-to-maturity securities is recorded primarily in investment income as earned. Securities lending Beginning in May 2024 we entered into securities lending transactions, managed by a third-party banking institution, whereby securities are loaned to unaffiliated financial institutions for short periods of time. The securities lending activity is accounted for as a secured borrowing and therefore the securities loaned, primarily fixed maturity securities, are carried as invested assets on our Statement of Financial Position, while the obligation to return the collateral is recorded as a current liability. The cash collateral received at the inception of the loan is reinvested and the related income is recognized in net investment income. Noncash collateral is not recorded in the Statements of Financial Position, as we do not have the right to sell, pledge, or otherwise reinvest the noncash collateral. Collateral received can only be accessed by us if the institution borrowing the securities is in default. The collateral is required to equal a minimum of 102% of the estimated fair value of the securities loaned, and maintained at a level greater than or equal to 100% for the duration of the loan. We monitor the ratio of the collateral held to the estimated fair value of the securities loaned on a daily basis and obtain additional collateral as necessary. A securities lending transaction may be terminated at any time by the borrower or the lender. If terminated, we would repay our securities lending obligations from the sale of reinvested collateral or the proceeds of sales from our investment portfolio, which includes liquid securities. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The majority of our revenue is derived from the subscriber’s agreement between us and the subscribers (policyholders) at the Exchange. In accordance with the subscriber’s agreement, we retain a management fee calculated as a percentage, not to exceed 25%, of all direct and affiliated assumed written premiums of the Exchange. We allocate a portion of our management fee revenue, currently 25% of the direct and affiliated assumed written premiums of the Exchange, between the two performance obligations we have under the subscriber’s agreement. The first performance obligation is to provide policy issuance and renewal services to the subscribers (policyholders) at the Exchange, and the second is to act as attorney-in-fact on behalf of the subscribers at the Exchange, as well as the service provider for the Exchange's insurance subsidiaries, with respect to all administrative services. The transaction price, including management fee revenue and administrative services reimbursement revenue, includes variable consideration and is allocated based on the estimated standalone selling prices developed using industry information and other available information for similar services. A constraining estimate of variable consideration exists related to the potential for management fees to be returned if a policy were to be cancelled mid-term. Management fees are returned to the Exchange when policyholders cancel their insurance coverage mid-term and premiums are refunded to them. The constraining estimate is determined using the expected value method, based on both historical and current information. The estimated transaction price, as reduced by the constraint, reflects consideration expected for performance of our services. We update the transaction price and the related allocation at least annually based upon the most recent information available or more frequently if there have been significant changes in any components considered in the transaction price. The first performance obligation is to provide policy issuance and renewal services that result in executed insurance policies between the Exchange or one of its insurance subsidiaries and the subscriber (policyholder). The subscriber (policyholder) receives economic benefits when substantially all the policy issuance or renewal services are complete and an insurance policy is issued or renewed by the Exchange or one of its insurance subsidiaries. It is at the time of policy issuance or renewal that the allocated portion of revenue is recognized. Consistent with its legal structure as a reciprocal insurer, the Exchange does not have any employees or officers. Therefore, it enters into contractual relationships by and through the subscribers' attorney-in-fact. Indemnity serves as the attorney-in-fact on behalf of the subscribers at the Exchange with respect to its administrative services as enumerated in the subscriber's agreement. The Exchange's insurance subsidiaries also utilize Indemnity for these services in accordance with the service agreements between each of the subsidiaries and Indemnity. Collectively, these services represent a second performance obligation under the subscriber’s agreement and the service agreements. The revenue allocated to this performance obligation is recognized over a four-year period representing the time over which these services are provided. The portion of revenue not yet earned is recorded as a contract liability in the Statements of Financial Position. During the three and six months ended June 30, 2024, we recognized revenue of $11.9 million and $26.9 million, respectively, that was included in the contract liability balance as of December 31, 2023. During the three and six months ended June 30, 2023, we recognized revenue of $10.5 million and $23.8 million, respectively, that was included in the contract liability balance as of December 31, 2022. The administrative services expenses we incur and the related reimbursements we receive are recorded gross in the Statements of Operations. Indemnity records a receivable from the Exchange for management fee revenue when the premium is written or assumed from affiliates by the Exchange. Indemnity collects the management fee from the Exchange when the Exchange collects the premiums from the subscribers (policyholders). As the Exchange issues policies with annual terms only, cash collections generally occur within one year. The following table disaggregates revenue by our two performance obligations: Three months ended June 30, Six months ended June 30, (in thousands) 2024 2023 2024 2023 Management fee revenue - policy issuance and renewal services $ 760,886 $ 633,339 $ 1,426,572 $ 1,191,429 Management fee revenue - administrative services 17,051 15,636 33,985 30,825 Administrative services reimbursement revenue 206,028 184,466 397,595 357,293 Total revenue from administrative services $ 223,079 $ 200,102 $ 431,580 $ 388,118 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Class A and Class B basic earnings per share and Class B diluted earnings per share are calculated under the two-class method. The two-class method allocates earnings to each class of stock based upon its dividend rights. Class B shares are convertible into Class A shares at a conversion ratio of 2,400 to 1. See Note 10, "Capital Stock". Class A diluted earnings per share is calculated under the if-converted method, which reflects the conversion of Class B shares to Class A shares. Diluted earnings per share calculations include the dilutive effect of assumed issuance of stock-based awards under compensation plans that have the option to be paid in stock using the treasury stock method. A reconciliation of the numerators and denominators used in the basic and diluted per-share computations is presented as follows for each class of common stock: Three months ended June 30, 2024 2023 (dollars in thousands, except per share data) Allocated net income (numerator) Weighted shares (denominator) Per-share amount Allocated net income (numerator) Weighted shares (denominator) Per-share amount Class A – Basic EPS: Income available to Class A stockholders $ 162,561 46,189,042 $ 3.52 $ 116,887 46,189,026 $ 2.53 Dilutive effect of stock-based awards 0 15,457 — 0 10,148 — Assumed conversion of Class B shares 1,342 6,100,800 — 965 6,100,800 — Class A – Diluted EPS: Income available to Class A stockholders on Class A equivalent shares $ 163,903 52,305,299 $ 3.13 $ 117,852 52,299,974 $ 2.25 Class B – Basic EPS: Income available to Class B stockholders $ 1,342 2,542 $ 528 $ 965 2,542 $ 380 Class B – Diluted EPS: Income available to Class B stockholders $ 1,342 2,542 $ 528 $ 965 2,542 $ 380 Six months ended June 30, 2024 2023 (dollars in thousands, except per share data) Allocated net income (numerator) Weighted shares (denominator) Per-share amount Allocated net income (numerator) Weighted shares (denominator) Per-share amount Class A – Basic EPS: Income available to Class A stockholders $ 286,093 46,189,028 $ 6.19 $ 202,422 46,188,923 $ 4.38 Dilutive effect of stock-based awards 0 13,723 — 0 8,575 — Assumed conversion of Class B shares 2,362 6,100,800 — 1,671 6,100,800 — Class A – Diluted EPS: Income available to Class A stockholders on Class A equivalent shares $ 288,455 52,303,551 $ 5.52 $ 204,093 52,298,298 $ 3.90 Class B – Basic EPS: Income available to Class B stockholders $ 2,362 2,542 $ 929 $ 1,671 2,542 $ 657 Class B – Diluted EPS: Income available to Class B stockholders $ 2,361 2,542 $ 929 $ 1,671 2,542 $ 657 |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Financial instruments carried at fair value Our available-for-sale and equity securities are recorded at fair value, which is the price that would be received to sell the asset in an orderly transaction between willing market participants as of the measurement date. Valuation techniques used to derive the fair value of our available-for-sale and equity securities are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources. Unobservable inputs reflect our own assumptions regarding fair market value for these securities. Financial instruments are categorized based upon the following characteristics or inputs to the valuation techniques: • Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. • Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. • Level 3 – Unobservable inputs for the asset or liability. Estimates of fair values for our investment portfolio are obtained primarily from a nationally recognized pricing service. Our Level 1 securities are valued using an exchange traded price provided by the pricing service. Pricing service valuations for Level 2 securities include multiple verifiable, observable inputs including benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. Pricing service valuations for Level 3 securities are based upon proprietary models and are used when observable inputs are not available or in illiquid markets. Although virtually all of our prices are obtained from third party sources, we also perform internal pricing reviews, including evaluating the methodology and inputs used to ensure that we determine the proper classification level of the financial instrument and reviewing securities with price changes that vary significantly from current market conditions or independent price sources. Price variances are investigated and corroborated by market data and transaction volumes. We have reviewed the pricing methodologies of our pricing service as well as other observable inputs and believe that the prices adequately consider market activity in determining fair value. In limited circumstances we adjust the price received from the pricing service when, in our judgment, a better reflection of fair value is available based upon corroborating information and our knowledge and monitoring of market conditions such as a disparity in price of comparable securities and/or non-binding broker quotes. In other circumstances, certain securities are internally priced because prices are not provided by the pricing service. When a price from the pricing service is not available, values are determined by obtaining broker/dealer quotes and/or market comparables. When available, we obtain multiple quotes for the same security. The ultimate value for these securities is determined based upon our best estimate of fair value using corroborating market information. As of June 30, 2024, nearly all of our available-for-sale and equity securities were priced using a third party pricing service. The following tables present our fair value measurements on a recurring basis by asset class and level of input as of: June 30, 2024 (in thousands) Total Level 1 Level 2 Level 3 Available-for-sale securities: Corporate debt securities (1) $ 612,049 $ 0 $ 603,506 $ 8,543 Collateralized debt obligations 111,857 0 111,857 0 Commercial mortgage-backed securities 123,013 0 97,793 25,220 Residential mortgage-backed securities 127,991 0 127,991 0 Other debt securities 24,449 0 24,449 0 U.S. Treasury 1,025 0 1,025 0 Total available-for-sale securities 1,000,384 0 966,621 33,763 Equity securities: Financial services sector 65,321 1,537 58,350 5,434 Utilities sector 5,543 0 5,543 0 Energy sector 3,689 0 3,689 0 Consumer sector 3,885 0 2,321 1,564 Technology sector 1,500 0 0 1,500 Industrial sector 190 0 190 0 Total equity securities 80,128 1,537 70,093 8,498 Total $ 1,080,512 $ 1,537 $ 1,036,714 $ 42,261 (1) This includes $6.1 million of securities lent under a securities lending agreement. December 31, 2023 (in thousands) Total Level 1 Level 2 Level 3 Available-for-sale securities: Corporate debt securities $ 588,688 $ 0 $ 584,182 $ 4,506 Collateralized debt obligations 112,468 0 112,468 0 Commercial mortgage-backed securities 102,720 0 91,726 10,994 Residential mortgage-backed securities 140,055 0 138,521 1,534 Other debt securities 17,310 0 17,310 0 Total available-for-sale securities 961,241 0 944,207 17,034 Equity securities: Financial services sector 69,900 816 63,750 5,334 Utilities sector 5,810 0 5,810 0 Energy sector 3,901 0 3,901 0 Consumer sector 3,915 0 2,415 1,500 Technology sector 500 0 0 500 Industrial sector 180 0 180 0 Communications sector 47 47 0 0 Total equity securities 84,253 863 76,056 7,334 Total $ 1,045,494 $ 863 $ 1,020,263 $ 24,368 We review the fair value hierarchy classifications each reporting period. Transfers between hierarchy levels may occur due to changes in available market observable inputs. Level 3 Assets – 2024 Quarterly Change: (in thousands) Beginning balance at March 31, 2024 Included in earnings (1) Included Purchases Sales Transfers into Level 3 (2) Transfers out of Level 3 (2) Ending balance at June 30, 2024 Available-for-sale securities: Corporate debt securities $ 3,908 $ 22 $ (20) $ 4,496 $ (521) $ 2,202 $ (1,544) $ 8,543 Commercial mortgage-backed securities 14,577 (415) 125 210 (5) 11,643 (915) 25,220 Total available-for-sale securities 18,485 (393) 105 4,706 (526) 13,845 (2,459) 33,763 Equity securities 7,968 61 — 1,019 (84) 520 (986) 8,498 Total Level 3 securities $ 26,453 $ (332) $ 105 $ 5,725 $ (610) $ 14,365 $ (3,445) $ 42,261 Level 3 Assets – 2024 Year-to-Date Change: (in thousands) Beginning balance at December 31, 2023 Included in earnings (1) Included Purchases Sales Transfers into Level 3 (2) Transfers out of Level 3 (2) Ending balance at June 30, 2024 Available-for-sale securities: Corporate debt securities $ 4,506 $ 25 $ 21 $ 4,839 $ (823) $ 3,824 $ (3,849) $ 8,543 Commercial mortgage-backed securities 10,994 (669) 219 1,805 (5) 17,648 (4,772) 25,220 Residential mortgage- backed securities 1,534 (5) (24) 0 (40) 0 (1,465) 0 Total available-for-sale securities 17,034 (649) 216 6,644 (868) 21,472 (10,086) 33,763 Equity securities 7,334 147 — 2,019 (84) 544 (1,462) 8,498 Total Level 3 securities $ 24,368 $ (502) $ 216 $ 8,663 $ (952) $ 22,016 $ (11,548) $ 42,261 Level 3 Assets – 2023 Quarterly Change: (in thousands) Beginning balance at March 31, 2023 Included in earnings (1) Included Purchases Sales Transfers into Level 3 (2) Transfers out of Level 3 (2) Ending balance at June 30, 2023 Available-for-sale securities: Corporate debt securities $ 4,503 $ 14 $ 37 $ 779 $ (100) $ 1,655 $ (1,765) $ 5,123 Commercial mortgage-backed securities 6,415 (169) (117) 866 (185) 329 (606) 6,533 Residential mortgage- backed securities 33 0 0 0 (21) 0 0 12 Total available-for-sale securities 10,951 (155) (80) 1,645 (306) 1,984 (2,371) 11,668 Equity securities 4,699 31 — 0 0 0 0 4,730 Total Level 3 securities $ 15,650 $ (124) $ (80) $ 1,645 $ (306) $ 1,984 $ (2,371) $ 16,398 Level 3 Assets – 2023 Year-to-Date Change: (in thousands) Beginning balance at December 31, 2022 Included in earnings (1) Included Purchases Sales Transfers into Level 3 (2) Transfers out of Level 3 (2) Ending balance at June 30, 2023 Available-for-sale securities: Corporate debt securities $ 3,686 $ (14) $ 122 $ 1,532 $ (745) $ 3,153 $ (2,611) $ 5,123 Commercial mortgage-backed securities 10,910 (360) 100 1,455 (185) 466 (5,853) 6,533 Residential mortgage-backed securities 4,184 (5) 96 0 (108) 33 (4,188) 12 Total available-for-sale securities 18,780 (379) 318 2,987 (1,038) 3,652 (12,652) 11,668 Equity securities 3,779 (7) — 958 0 0 0 4,730 Total Level 3 securities $ 22,559 $ (386) $ 318 $ 3,945 $ (1,038) $ 3,652 $ (12,652) $ 16,398 (1) These amounts are reported as net investment income and net realized and unrealized investment gains (losses) for each of the periods presented above. (2) Transfers into and/or (out) of Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs. Financial instruments not carried at fair value The following table presents the carrying values and fair values of financial instruments categorized as Level 3 in the fair value hierarchy that are recorded at carrying value as of: June 30, 2024 December 31, 2023 (in thousands) Carrying value Fair value Carrying value Fair value Agent loans, net $ 66,280 $ 60,361 $ 67,787 $ 66,445 Other loans receivable, net (1) 10,968 10,968 10,713 10,713 Held-to-maturity securities, net (2) 4,833 4,833 — — (1) The current and long-term portions of other loans receivable are included in the line items "Prepaid expenses and other current assets" and "Other assets, net", respectively, in the Statements of Financial Position. (2) Held-to-maturity securities are included in the line item "Other assets, net" in the Statement of Financial Position. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2024 | |
Investments [Abstract] | |
Investments | Investments Fixed maturity securities See Note 5, "Fair Value" for additional fair value disclosures. The following tables summarize the amortized cost and estimated fair value, net of credit loss allowance, of our fixed maturity securities as of: June 30, 2024 (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Available-for-sale securities: Corporate debt securities (1) $ 621,229 $ 3,560 $ 12,740 $ 612,049 Collateralized debt obligations 112,450 273 866 111,857 Commercial mortgage-backed securities 126,163 986 4,136 123,013 Residential mortgage-backed securities 144,923 58 16,990 127,991 Other debt securities 24,885 180 616 24,449 U.S. Treasury 1,043 0 18 1,025 Total available-for-sale securities, net 1,030,693 5,057 35,366 1,000,384 Held-to-maturity securities - states & political subdivisions 4,833 0 0 4,833 Total fixed maturity securities, net $ 1,035,526 $ 5,057 $ 35,366 $ 1,005,217 (1) This includes an estimated fair value of $6.1 million of securities lent under a securities lending agreement. December 31, 2023 (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Available-for-sale securities: Corporate debt securities $ 600,639 $ 4,594 $ 16,545 $ 588,688 Collateralized debt obligations 114,400 156 2,088 112,468 Commercial mortgage-backed securities 106,019 1,410 4,709 102,720 Residential mortgage-backed securities 153,633 69 13,647 140,055 Other debt securities 17,862 136 688 17,310 Total available-for-sale securities, net $ 992,553 $ 6,365 $ 37,677 $ 961,241 The amortized cost and estimated fair value of available-for-sale and held-to-maturity securities at June 30, 2024 are shown below by remaining contractual term to maturity. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. June 30, 2024 Amortized Estimated (in thousands) cost fair value Available-for-sale securities: Due in one year or less $ 47,471 $ 46,768 Due after one year through five years 441,071 433,520 Due after five years through ten years 189,349 188,453 Due after ten years 352,802 331,643 Total available-for-sale securities, net (1) (2) 1,030,693 1,000,384 Held-to-maturity securities - due after ten years 4,833 4,833 Total fixed maturity securities, net $ 1,035,526 $ 1,005,217 (1) The contractual maturities of our available-for-sale securities are included in the table. However, given our intent to sell certain impaired securities, these securities are classified as current assets in our Statement of Financial Position at June 30, 2024. (2) This includes an estimated fair value of $6.1 million of securities lent under a securities lending agreement. The below securities have been evaluated for credit impairment using criteria described within Note 2, "Significant Accounting Policies, of Notes to Financial Statements" included in our Annual Report on Form 10-K for the year ended December 31, 2023 as filed with the SEC on February 26, 2024. The gross unrealized losses are primarily attributable to changes in interest rates and are not deemed to be credit-related. We do not have the intent to sell these securities and it is more likely than not that we would not be required to sell these securities before the anticipated recovery of the amortized cost basis. The following tables present available-for-sale securities based on length of time in a gross unrealized loss position as of: June 30, 2024 Less than 12 months 12 months or longer Total (dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized No. of Corporate debt securities $ 119,642 $ 909 $ 256,352 $ 11,831 $ 375,994 $ 12,740 611 Collateralized debt obligations 32,909 64 30,379 802 63,288 866 116 Commercial mortgage-backed securities 33,653 316 29,248 3,820 62,901 4,136 153 Residential mortgage-backed securities 12,704 308 112,051 16,682 124,755 16,990 166 Other debt securities 6,055 97 6,659 519 12,714 616 37 U.S. Treasury 1,025 18 0 0 1,025 18 1 Total available-for-sale securities $ 205,988 $ 1,712 $ 434,689 $ 33,654 $ 640,677 $ 35,366 1,084 Quality breakdown of available-for-sale securities: Investment grade $ 185,665 $ 1,371 $ 399,444 $ 30,785 $ 585,109 $ 32,156 691 Non-investment grade 20,323 341 35,245 2,869 55,568 3,210 393 Total available-for-sale securities $ 205,988 $ 1,712 $ 434,689 $ 33,654 $ 640,677 $ 35,366 1,084 December 31, 2023 Less than 12 months 12 months or longer Total (dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized No. of Corporate debt securities $ 50,853 $ 546 $ 338,322 $ 15,999 $ 389,175 $ 16,545 590 Collateralized debt obligations 3,911 15 87,005 2,073 90,916 2,088 142 Commercial mortgage-backed securities 9,148 157 30,145 4,552 39,293 4,709 108 Residential mortgage-backed securities 30,271 297 101,761 13,350 132,032 13,647 164 Other debt securities 2,084 62 7,475 626 9,559 688 32 Total available-for-sale securities $ 96,267 $ 1,077 $ 564,708 $ 36,600 $ 660,975 $ 37,677 1,036 Quality breakdown of available-for-sale securities: Investment grade $ 87,774 $ 807 $ 517,090 $ 32,511 $ 604,864 $ 33,318 651 Non-investment grade 8,493 270 47,618 4,089 56,111 4,359 385 Total available-for-sale securities $ 96,267 $ 1,077 $ 564,708 $ 36,600 $ 660,975 $ 37,677 1,036 Credit loss allowances The following tables present a roll-forward of the allowances for credit losses on fixed maturity securities and financing receivables: Three months ended June 30, 2024 (in thousands) Available-for-sale securities Held-to-maturity securities Other loans receivable Agent loans Balance, beginning of period $ 575 $ 2,167 $ 11,253 $ 957 Provision and recoveries 79 0 185 0 Sales/collections and write-offs (151) 0 0 0 Balance, end of period $ 503 $ 2,167 $ 11,438 $ 957 Six months ended June 30, 2024 (in thousands) Available-for-sale securities Held-to-maturity securities Other loans receivable Agent loans Balance, beginning of period $ 597 $ 0 $ 11,081 $ 957 Provision and recoveries 243 2,167 357 0 Sales/collections and write-offs (337) 0 0 0 Balance, end of period $ 503 $ 2,167 $ 11,438 $ 957 Three months ended June 30, 2023 (in thousands) Available-for-sale securities Held-to-maturity securities Other loans receivable Agent loans Balance, beginning of period $ 348 $ — $ 3,709 $ 957 Provision and recoveries 22 — 27 0 Sales/collections and write-offs 0 — 0 0 Balance, end of period $ 370 $ — $ 3,736 $ 957 Six months ended June 30, 2023 (in thousands) Available-for-sale securities Held-to-maturity securities Other loans receivable Agent loans Balance, beginning of period $ 249 $ — $ 3,775 $ 957 Provision and recoveries 223 — 59 0 Sales/collections and write-offs (102) — (98) 0 Balance, end of period $ 370 $ — $ 3,736 $ 957 Net investment income Investment income (loss), net of expenses, was generated from the following portfolios: Three months ended June 30, Six months ended June 30, (in thousands) 2024 2023 2024 2023 Available-for-sale securities $ 12,107 $ 10,534 $ 23,720 $ 20,367 Equity securities 1,199 1,084 2,417 2,099 Limited partnerships (1) (264) 40 261 (10,712) Cash equivalents and other 3,389 1,922 6,337 4,027 Total investment income 16,431 13,580 32,735 15,781 Less: investment expenses 421 45 822 63 Net investment income $ 16,010 $ 13,535 $ 31,913 $ 15,718 (1) Limited partnership (losses) income include both realized gains (losses) and unrealized valuation changes. Our limited partnership investments are included in the line item "Other assets" in the Statements of Financial Position. We have made no new significant limited partnership commitments since 2006, and the balance of limited partnership investments is expected to decline over time as additional distributions are received. Net realized and unrealized investment (losses) gains Realized and unrealized gains (losses) on investments were as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2024 2023 2024 2023 Available-for-sale securities: Gross realized gains $ 417 $ 100 $ 687 $ 306 Gross realized losses (2,792) (2,196) (3,324) (4,021) Net realized losses on available-for-sale securities (2,375) (2,096) (2,637) (3,715) Equity securities 580 359 2,695 (3,304) Net realized and unrealized investment (losses) gains $ (1,795) $ (1,737) $ 58 $ (7,019) The portion of net unrealized gains (losses) recognized during the reporting period related to equity securities held at the reporting date is calculated as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2024 2023 2024 2023 Equity securities: Net gains (losses) recognized during the period $ 580 $ 359 $ 2,695 $ (3,304) Less: net gains (losses) recognized on securities sold 116 (78) 330 (2,704) Net unrealized gains (losses) recognized on securities held at reporting date $ 464 $ 437 $ 2,365 $ (600) Net impairment losses recognized in earnings Impairments on investments were as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2024 2023 2024 2023 Available-for-sale securities: Intent to sell $ (124) $ (149) $ (298) $ (1,581) Credit impaired (79) (22) (243) (223) Total available-for-sale securities (203) (171) (541) (1,804) Expected credit losses: Held-to-maturity securities 0 — (2,167) — Other loans receivable (185) 0 (357) 0 Net impairment losses recognized in earnings $ (388) $ (171) $ (3,065) $ (1,804) Securities lending transactions As of June 30, 2024, the fair value of loaned securities, comprised of corporate debt securities, was $6.1 million and the related cash collateral received was $6.3 million, which was reinvested in cash equivalents and is included with "Cash and cash equivalents" in our Statement of Financial Position. There was no collateral that we are not permitted to sell or repledge and there are no securities lending transactions that extend beyond one year from the reporting date. If we have to return cash collateral on short notice, we may have difficulty selling investments in a timely manner, be forced to sell them for less than we otherwise would have been able to realize, or both. In addition, in the event of such forced sale, for securities in an unrealized loss position, realized losses would be incurred on securities sold and impairments would be incurred, if there is a need to sell securities prior to recovery, which may negatively impact our financial condition. |
Bank Line of Credit
Bank Line of Credit | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Bank Line of Credit | Bank Line of Credit We have access to a $100 million bank revolving line of credit with a $25 million letter of credit sublimit that expires on October 29, 2026. As of June 30, 2024, a total of $99.2 million remains available under the facility due to $0.8 million outstanding letters of credit, which reduce the availability for letters of credit to $24.2 million. We had no borrowings outstanding on our line of credit as of June 30, 2024. Investments with a fair value of $117.0 million were pledged as collateral on the line of credit at June 30, 2024. These investments have no trading restrictions and are reported as available-for-sale securities and cash and cash equivalents on our Statement of Financial Position as of June 30, 2024. The bank requires compliance with certain covenants, which include leverage ratios and debt restrictions. We are in compliance with all covenants at June 30, 2024. |
Postretirement Benefits
Postretirement Benefits | 6 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Postretirement Benefits | Postretirement Benefits Pension plans Our pension plans consist of a noncontributory defined benefit pension plan covering substantially all employees and an unfunded supplemental employee retirement plan ("SERP") for certain members of executive and senior management. The pension plan provides benefits to covered individuals satisfying certain age and service requirements. The defined benefit pension plan and SERP each provide benefits through a final average earnings formula. Although we are the sponsor of these postretirement plans and record the funded status of these plans, there are reimbursements between us and the Exchange and its subsidiaries for their allocated share of pension income or cost. These reimbursements represent pension benefits for employees performing administrative services and an allocated share of plan (income) cost for employees in departments that support the administrative functions. For the six months ended June 30, 2024, we reimbursed the Exchange and its subsidiaries for approximately 60% of the annual defined benefit pension income and 34% of the annual SERP income. For our funded pension plan, amounts are settled in cash for the portion of pension (income) cost allocated to the Exchange and its subsidiaries. For our unfunded SERP, we pay the obligations when due and amounts are settled in cash between entities when there is a payout. Our defined benefit pension plan funding policy is generally to contribute an amount equal to the greater of the target normal cost for the plan year, or the amount necessary to fund the plan to 100%. Accordingly, we made a $33 million contribution in January 2024. The funded pension plan net benefit asset is presented separately from the unfunded plan as a non-current asset on our Statements of Financial Position. Pension plan income includes the following components: Three months ended June 30, Six months ended June 30, (in thousands) 2024 2023 2024 2023 Service cost for benefits earned $ 8,641 $ 7,191 $ 17,292 $ 14,382 Interest cost on benefit obligation 13,163 12,548 26,308 25,096 Expected return on plan assets (20,198) (17,217) (40,396) (34,435) Prior service cost amortization 397 361 786 723 Net actuarial gain amortization (1,734) (3,832) (3,485) (7,665) Settlement gain (1) (1,030) — (1,279) — Pension plan income (2) $ (761) $ (949) $ (774) $ (1,899) (1) Settlement accounting was required due to lump sum payments made under the SERP to three former officers in 2024. (2) Pension plan income represents total plan income before reimbursements between Indemnity and the Exchange and its subsidiaries. The components of pension plan income other than the service cost components are included in the line item " Other income |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense is provided on an interim basis based upon our estimate of the annual effective income tax rate, adjusted each quarter for discrete items. Our effective tax rate was 20.9% for the three and six months ended June 30, 2024 and 21.0% for the three and six months ended June 30, 2023. |
Capital Stock
Capital Stock | 6 Months Ended |
Jun. 30, 2024 | |
Class of Stock Disclosures [Abstract] | |
Capital Stock | Capital Stock Class A and B common stock Holders of Class B shares may, at their option, convert their shares into Class A shares at the rate of 2,400 Class A shares per Class B share. There were no shares of Class B common stock converted into Class A common stock during the six months ended June 30, 2024 and the year ended December 31, 2023. There is no provision for conversion of Class A shares into Class B shares, and Class B shares surrendered for conversion cannot be reissued. Stock repurchases In 2011, our Board of Directors approved a continuation of the current stock repurchase program of $150 million, with no time limitation. There were no shares repurchased under this program during the six months ended June 30, 2024 and the year ended December 31, 2023. We had approximately $17.8 million of repurchase authority remaining under this program at June 30, 2024. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2024 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income ("AOCI") (loss) by component, including amounts reclassified to other comprehensive income ("OCI") (loss) and the related line item in the Statements of Operations where net income is presented, are as follows: Three months ended Three months ended June 30, 2024 June 30, 2023 (in thousands) Before Tax Income Tax Net Before Tax Income Tax Net Investment securities: AOCI (loss), beginning of period $ (32,356) $ (6,795) $ (25,561) $ (53,287) $ (11,190) $ (42,097) OCI (loss) before reclassifications (627) (132) (495) (4,477) (940) (3,537) Realized investment losses 2,375 499 1,876 2,096 440 1,656 Impairment losses 203 43 160 171 36 135 OCI (loss) 1,951 410 1,541 (2,210) (464) (1,746) AOCI (loss), end of period $ (30,405) $ (6,385) $ (24,020) $ (55,497) $ (11,654) $ (43,843) Pension and other postretirement plans: AOCI, beginning of period $ 13,077 $ 2,746 $ 10,331 $ 53,715 $ 11,280 $ 42,435 OCI (loss) before reclassifications (1,731) (364) (1,367) — — — Amortization of prior service costs 397 83 314 361 76 285 Amortization of net actuarial gain (1,734) (364) (1,370) (3,832) (805) (3,027) Settlement gain (1,279) (268) (1,011) — — — OCI (loss) (4,347) (913) (3,434) (3,471) (729) (2,742) AOCI, end of period $ 8,730 $ 1,833 $ 6,897 $ 50,244 $ 10,551 $ 39,693 Total AOCI (loss), beginning of period $ (19,279) $ (4,049) $ (15,230) $ 428 $ 90 $ 338 Investment securities 1,951 410 1,541 (2,210) (464) (1,746) Pension and other postretirement plans (4,347) (913) (3,434) (3,471) (729) (2,742) OCI (loss) (2,396) (503) (1,893) (5,681) (1,193) (4,488) AOCI (loss), end of period $ (21,675) $ (4,552) $ (17,123) $ (5,253) $ (1,103) $ (4,150) Six months ended Six months ended June 30, 2024 June 30, 2023 (in thousands) Before Tax Income Tax Net Before Tax Income Tax Net Investment securities: AOCI (loss), beginning of period $ (31,402) $ (6,595) $ (24,807) $ (66,571) $ (13,980) $ (52,591) OCI (loss) before reclassifications (2,181) (458) (1,723) 5,555 1,167 4,388 Realized investment losses 2,637 554 2,083 3,715 780 2,935 Impairment losses 541 114 427 1,804 379 1,425 OCI 997 210 787 11,074 2,326 8,748 AOCI (loss), end of period $ (30,405) $ (6,385) $ (24,020) $ (55,497) $ (11,654) $ (43,843) Pension and other postretirement plans: AOCI, beginning of period $ 14,439 $ 3,032 $ 11,407 $ 57,186 $ 12,009 $ 45,177 OCI (loss) before reclassifications (1,731) (364) (1,367) — — — Amortization of prior service costs 786 165 621 723 152 571 Amortization of net actuarial gain (3,485) (732) (2,753) (7,665) (1,610) (6,055) Settlement gain (1,279) (268) (1,011) — — — OCI (loss) (5,709) (1,199) (4,510) (6,942) (1,458) (5,484) AOCI, end of period $ 8,730 $ 1,833 $ 6,897 $ 50,244 $ 10,551 $ 39,693 Total AOCI (loss), beginning of period $ (16,963) $ (3,563) $ (13,400) $ (9,385) $ (1,971) $ (7,414) Investment securities 997 210 787 11,074 2,326 8,748 Pension and other postretirement plans (5,709) (1,199) (4,510) (6,942) (1,458) (5,484) OCI (loss) (4,712) (989) (3,723) 4,132 868 3,264 AOCI (loss), end of period $ (21,675) $ (4,552) $ (17,123) $ (5,253) $ (1,103) $ (4,150) |
Concentrations of Credit Risk
Concentrations of Credit Risk | 6 Months Ended |
Jun. 30, 2024 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments could potentially expose us to concentrations of credit risk, including our unsecured receivables from the Exchange. The majority of our revenue and receivables are from the Exchange and its affiliates. See also Note 1, "Nature of Operations". Net management fee amounts and other reimbursements due from the Exchange and its affiliates were $708.2 million and $625.3 million at June 30, 2024 and December 31, 2023, respectively, which includes a current expected credit loss allowance of $0.6 million in both periods. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We have an agreement with a bank for an agent loan participation program. The maximum amount of loans to be funded through this program is $150 million. We have committed to fund a minimum of 30% of each loan executed through this program. As of June 30, 2024, outstanding loans executed under this agreement totaled $55.9 million, of which our portion of the loans is $18.8 million. Additionally, we have agreed to guarantee a portion of the funding provided by the other participants in the program in the event of default. As of June 30, 2024, our maximum potential amount of future payments on the guaranteed portion is $7.5 million. All loan payments under the participation program are current as of June 30, 2024. We also have contingent obligations for guarantees related to certain real estate development projects supporting revitalization efforts in our community. As of June 30, 2024, our maximum potential obligation related to guarantees is $9.3 million. We are involved in litigation arising in the ordinary course of conducting business. In accordance with current accounting standards for loss contingencies and based upon information currently known to us, we establish reserves for litigation when it is probable that a loss associated with a claim or proceeding has been incurred and the amount of the loss or range of loss can be reasonably estimated. When no amount within the range of loss is a better estimate than any other amount, we accrue the minimum amount of the estimable loss. To the extent that such litigation against us may have an exposure to a loss in excess of the amount we have accrued, we believe that such excess would not be material to our financial condition, results of operations or cash flows. Legal fees are expensed as incurred. We believe that our accruals for legal proceedings are appropriate and, individually and in the aggregate, are not expected to be material to our financial condition, results of operations or cash flows. We review all litigation on an ongoing basis when making accrual and disclosure decisions. For certain legal proceedings, we cannot reasonably estimate losses or a range of loss, if any, particularly for proceedings that are in their early stages of development or where the plaintiffs seek indeterminate damages. Various factors, including, but not limited to, the outcome of potentially lengthy discovery and the resolution of important factual questions, may need to be determined before probability can be established or before a loss or range of loss can be reasonably estimated. If the loss contingency in question is not both probable and reasonably estimable, we do not establish an accrual and the matter will continue to be monitored for any developments that would make the loss contingency both probable and reasonably estimable. In the event that a legal proceeding results in a substantial judgment against, or settlement by, us, there can be no assurance that any resulting liability or financial commitment would not have a material adverse effect on our financial condition, results of operations or cash flows. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events No items were identified in this period subsequent to the financial statement date that required adjustment or additional disclosure. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. For further information, refer to the financial statements and footnotes included in our Form 10-K for the year ended December 31, 2023 as filed with the Securities and Exchange Commission ("SEC") on February 26, 2024. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Recently issued accounting standards and disclosure rules | Recently issued accounting standards and disclosure rules In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" , which requires entities to disclose significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported period of profit or loss, and requires entities with a single reporting segment to provide all disclosures required by Topic 280. The amendments in this ASU are required to be adopted for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The update is required to be applied retrospectively to prior periods presented in the financial statements, based on the significant segment expense categories identified and disclosed in the period of adoption. This will have no impact on our financial statements. We are currently evaluating the impact of adoption on our disclosures. In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" , which requires entities to disclose specific categories in an effective tax rate reconciliation, additional information for reconciling items that meet a quantitative threshold, and certain information about income taxes paid. The amendments in this ASU are required to be adopted for fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments can be applied on either a prospective or retrospective basis. This will have no impact on our financial statements. We are currently evaluating the impact of adoption on our disclosures. In March 2024, the SEC adopted final rules under SEC Release No. 33-11275, "The Enhancement and Standardization of Climate-Related Disclosures for Investors" , requiring registrants to disclose certain climate-related information in registration statements and annual reports. The final rules include disclosure of climate-related risks that are reasonably likely to have a material impact on a registrant’s business, results of operations or financial condition. Disclosures related to significant effects of severe weather events and other natural conditions and amounts related to carbon offsets and renewable energy credits or certificates are required in the financial statements in certain circumstances. Disclosure requirements will phase in for fiscal years beginning in 2025 and be applied prospectively upon adoption. On April 4, 2024, the SEC determined to voluntarily stay the final rules pending ongoing litigation. We are currently evaluating the impact of adoption on our disclosures. |
Other assets | Other assets |
Securities lending | Securities lending Beginning in May 2024 we entered into securities lending transactions, managed by a third-party banking institution, whereby securities are loaned to unaffiliated financial institutions for short periods of time. The securities lending activity is accounted for as a secured borrowing and therefore the securities loaned, primarily fixed maturity securities, are carried as invested assets on our Statement of Financial Position, while the obligation to return the collateral is recorded as a current liability. The cash collateral received at the inception of the loan is reinvested and the related income is recognized in net investment income. Noncash collateral is not recorded in the Statements of Financial Position, as we do not have the right to sell, pledge, or otherwise reinvest the noncash collateral. Collateral received can only be accessed by us if the institution borrowing the securities is in default. The collateral is required to equal a minimum of 102% of the estimated fair value of the securities loaned, and maintained at a level greater than or equal to 100% for the duration of the loan. We monitor the ratio of the collateral held to the estimated fair value of the securities loaned on a daily basis and obtain additional collateral as necessary. A securities lending transaction may be terminated at any time by the borrower or the lender. If terminated, we would repay our securities lending obligations from the sale of reinvested collateral or the proceeds of sales from our investment portfolio, which includes liquid securities. |
Revenue | The majority of our revenue is derived from the subscriber’s agreement between us and the subscribers (policyholders) at the Exchange. In accordance with the subscriber’s agreement, we retain a management fee calculated as a percentage, not to exceed 25%, of all direct and affiliated assumed written premiums of the Exchange. We allocate a portion of our management fee revenue, currently 25% of the direct and affiliated assumed written premiums of the Exchange, between the two performance obligations we have under the subscriber’s agreement. The first performance obligation is to provide policy issuance and renewal services to the subscribers (policyholders) at the Exchange, and the second is to act as attorney-in-fact on behalf of the subscribers at the Exchange, as well as the service provider for the Exchange's insurance subsidiaries, with respect to all administrative services. The transaction price, including management fee revenue and administrative services reimbursement revenue, includes variable consideration and is allocated based on the estimated standalone selling prices developed using industry information and other available information for similar services. A constraining estimate of variable consideration exists related to the potential for management fees to be returned if a policy were to be cancelled mid-term. Management fees are returned to the Exchange when policyholders cancel their insurance coverage mid-term and premiums are refunded to them. The constraining estimate is determined using the expected value method, based on both historical and current information. The estimated transaction price, as reduced by the constraint, reflects consideration expected for performance of our services. We update the transaction price and the related allocation at least annually based upon the most recent information available or more frequently if there have been significant changes in any components considered in the transaction price. The first performance obligation is to provide policy issuance and renewal services that result in executed insurance policies between the Exchange or one of its insurance subsidiaries and the subscriber (policyholder). The subscriber (policyholder) receives economic benefits when substantially all the policy issuance or renewal services are complete and an insurance policy is issued or renewed by the Exchange or one of its insurance subsidiaries. It is at the time of policy issuance or renewal that the allocated portion of revenue is recognized. Indemnity records a receivable from the Exchange for management fee revenue when the premium is written or assumed from affiliates by the Exchange. Indemnity collects the management fee from the Exchange when the Exchange collects the premiums from the subscribers (policyholders). As the Exchange issues policies with annual terms only, cash collections generally occur within one year. |
Earnings per share | Class A and Class B basic earnings per share and Class B diluted earnings per share are calculated under the two-class method. The two-class method allocates earnings to each class of stock based upon its dividend rights. Class B shares are convertible into Class A shares at a conversion ratio of 2,400 to 1. See Note 10, "Capital Stock". Class A diluted earnings per share is calculated under the if-converted method, which reflects the conversion of Class B shares to Class A shares. Diluted earnings per share calculations include the dilutive effect of assumed issuance of stock-based awards under compensation plans that have the option to be paid in stock using the treasury stock method. |
Financial instruments carried at fair value | Financial instruments carried at fair value Our available-for-sale and equity securities are recorded at fair value, which is the price that would be received to sell the asset in an orderly transaction between willing market participants as of the measurement date. Valuation techniques used to derive the fair value of our available-for-sale and equity securities are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources. Unobservable inputs reflect our own assumptions regarding fair market value for these securities. Financial instruments are categorized based upon the following characteristics or inputs to the valuation techniques: • Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. • Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. • Level 3 – Unobservable inputs for the asset or liability. Estimates of fair values for our investment portfolio are obtained primarily from a nationally recognized pricing service. Our Level 1 securities are valued using an exchange traded price provided by the pricing service. Pricing service valuations for Level 2 securities include multiple verifiable, observable inputs including benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. Pricing service valuations for Level 3 securities are based upon proprietary models and are used when observable inputs are not available or in illiquid markets. Although virtually all of our prices are obtained from third party sources, we also perform internal pricing reviews, including evaluating the methodology and inputs used to ensure that we determine the proper classification level of the financial instrument and reviewing securities with price changes that vary significantly from current market conditions or independent price sources. Price variances are investigated and corroborated by market data and transaction volumes. We have reviewed the pricing methodologies of our pricing service as well as other observable inputs and believe that the prices adequately consider market activity in determining fair value. In limited circumstances we adjust the price received from the pricing service when, in our judgment, a better reflection of fair value is available based upon corroborating information and our knowledge and monitoring of market conditions such as a disparity in price of comparable securities and/or non-binding broker quotes. In other circumstances, certain securities are internally priced because prices are not provided by the pricing service. When a price from the pricing service is not available, values are determined by obtaining broker/dealer quotes and/or market comparables. When available, we obtain multiple quotes for the same security. The ultimate value for these securities is determined based upon our best estimate of fair value using corroborating market information. As of June 30, 2024, nearly all of our available-for-sale and equity securities were priced using a third party pricing service. |
Fair value of financial instruments, transfers between levels | We review the fair value hierarchy classifications each reporting period. Transfers between hierarchy levels may occur due to changes in available market observable inputs. |
Investments | The below securities have been evaluated for credit impairment using criteria described within Note 2, "Significant Accounting Policies, of Notes to Financial Statements" included in our Annual Report on Form 10-K for the year ended December 31, 2023 as filed with the SEC on February 26, 2024. The gross unrealized losses are primarily attributable to changes in interest rates and are not deemed to be credit-related. We do not have the intent to sell these securities and it is more likely than not that we would not be required to sell these securities before the anticipated recovery of the amortized cost basis. |
Commitments and contingencies | We are involved in litigation arising in the ordinary course of conducting business. In accordance with current accounting standards for loss contingencies and based upon information currently known to us, we establish reserves for litigation when it is probable that a loss associated with a claim or proceeding has been incurred and the amount of the loss or range of loss can be reasonably estimated. When no amount within the range of loss is a better estimate than any other amount, we accrue the minimum amount of the estimable loss. To the extent that such litigation against us may have an exposure to a loss in excess of the amount we have accrued, we believe that such excess would not be material to our financial condition, results of operations or cash flows. Legal fees are expensed as incurred. We believe that our accruals for legal proceedings are appropriate and, individually and in the aggregate, are not expected to be material to our financial condition, results of operations or cash flows. We review all litigation on an ongoing basis when making accrual and disclosure decisions. For certain legal proceedings, we cannot reasonably estimate losses or a range of loss, if any, particularly for proceedings that are in their early stages of development or where the plaintiffs seek indeterminate damages. Various factors, including, but not limited to, the outcome of potentially lengthy discovery and the resolution of important factual questions, may need to be determined before probability can be established or before a loss or range of loss can be reasonably estimated. If the loss contingency in question is not both probable and reasonably estimable, we do not establish an accrual and the matter will continue to be monitored for any developments that would make the loss contingency both probable and reasonably estimable. In the event that a legal proceeding results in a substantial judgment against, or settlement by, us, there can be no assurance that any resulting liability or financial commitment would not have a material adverse effect on our financial condition, results of operations or cash flows. |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue by Performance Obligation | The following table disaggregates revenue by our two performance obligations: Three months ended June 30, Six months ended June 30, (in thousands) 2024 2023 2024 2023 Management fee revenue - policy issuance and renewal services $ 760,886 $ 633,339 $ 1,426,572 $ 1,191,429 Management fee revenue - administrative services 17,051 15,636 33,985 30,825 Administrative services reimbursement revenue 206,028 184,466 397,595 357,293 Total revenue from administrative services $ 223,079 $ 200,102 $ 431,580 $ 388,118 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of the Numerators and Denominators Used in the Basic and Diluted Per-Share Computations | A reconciliation of the numerators and denominators used in the basic and diluted per-share computations is presented as follows for each class of common stock: Three months ended June 30, 2024 2023 (dollars in thousands, except per share data) Allocated net income (numerator) Weighted shares (denominator) Per-share amount Allocated net income (numerator) Weighted shares (denominator) Per-share amount Class A – Basic EPS: Income available to Class A stockholders $ 162,561 46,189,042 $ 3.52 $ 116,887 46,189,026 $ 2.53 Dilutive effect of stock-based awards 0 15,457 — 0 10,148 — Assumed conversion of Class B shares 1,342 6,100,800 — 965 6,100,800 — Class A – Diluted EPS: Income available to Class A stockholders on Class A equivalent shares $ 163,903 52,305,299 $ 3.13 $ 117,852 52,299,974 $ 2.25 Class B – Basic EPS: Income available to Class B stockholders $ 1,342 2,542 $ 528 $ 965 2,542 $ 380 Class B – Diluted EPS: Income available to Class B stockholders $ 1,342 2,542 $ 528 $ 965 2,542 $ 380 Six months ended June 30, 2024 2023 (dollars in thousands, except per share data) Allocated net income (numerator) Weighted shares (denominator) Per-share amount Allocated net income (numerator) Weighted shares (denominator) Per-share amount Class A – Basic EPS: Income available to Class A stockholders $ 286,093 46,189,028 $ 6.19 $ 202,422 46,188,923 $ 4.38 Dilutive effect of stock-based awards 0 13,723 — 0 8,575 — Assumed conversion of Class B shares 2,362 6,100,800 — 1,671 6,100,800 — Class A – Diluted EPS: Income available to Class A stockholders on Class A equivalent shares $ 288,455 52,303,551 $ 5.52 $ 204,093 52,298,298 $ 3.90 Class B – Basic EPS: Income available to Class B stockholders $ 2,362 2,542 $ 929 $ 1,671 2,542 $ 657 Class B – Diluted EPS: Income available to Class B stockholders $ 2,361 2,542 $ 929 $ 1,671 2,542 $ 657 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurements on a Recurring Basis by Asset Class and Level of Input | The following tables present our fair value measurements on a recurring basis by asset class and level of input as of: June 30, 2024 (in thousands) Total Level 1 Level 2 Level 3 Available-for-sale securities: Corporate debt securities (1) $ 612,049 $ 0 $ 603,506 $ 8,543 Collateralized debt obligations 111,857 0 111,857 0 Commercial mortgage-backed securities 123,013 0 97,793 25,220 Residential mortgage-backed securities 127,991 0 127,991 0 Other debt securities 24,449 0 24,449 0 U.S. Treasury 1,025 0 1,025 0 Total available-for-sale securities 1,000,384 0 966,621 33,763 Equity securities: Financial services sector 65,321 1,537 58,350 5,434 Utilities sector 5,543 0 5,543 0 Energy sector 3,689 0 3,689 0 Consumer sector 3,885 0 2,321 1,564 Technology sector 1,500 0 0 1,500 Industrial sector 190 0 190 0 Total equity securities 80,128 1,537 70,093 8,498 Total $ 1,080,512 $ 1,537 $ 1,036,714 $ 42,261 (1) This includes $6.1 million of securities lent under a securities lending agreement. December 31, 2023 (in thousands) Total Level 1 Level 2 Level 3 Available-for-sale securities: Corporate debt securities $ 588,688 $ 0 $ 584,182 $ 4,506 Collateralized debt obligations 112,468 0 112,468 0 Commercial mortgage-backed securities 102,720 0 91,726 10,994 Residential mortgage-backed securities 140,055 0 138,521 1,534 Other debt securities 17,310 0 17,310 0 Total available-for-sale securities 961,241 0 944,207 17,034 Equity securities: Financial services sector 69,900 816 63,750 5,334 Utilities sector 5,810 0 5,810 0 Energy sector 3,901 0 3,901 0 Consumer sector 3,915 0 2,415 1,500 Technology sector 500 0 0 500 Industrial sector 180 0 180 0 Communications sector 47 47 0 0 Total equity securities 84,253 863 76,056 7,334 Total $ 1,045,494 $ 863 $ 1,020,263 $ 24,368 |
Schedule of Roll Forward of Level 3 Fair Value Measurements on a Recurring Basis | Level 3 Assets – 2024 Quarterly Change: (in thousands) Beginning balance at March 31, 2024 Included in earnings (1) Included Purchases Sales Transfers into Level 3 (2) Transfers out of Level 3 (2) Ending balance at June 30, 2024 Available-for-sale securities: Corporate debt securities $ 3,908 $ 22 $ (20) $ 4,496 $ (521) $ 2,202 $ (1,544) $ 8,543 Commercial mortgage-backed securities 14,577 (415) 125 210 (5) 11,643 (915) 25,220 Total available-for-sale securities 18,485 (393) 105 4,706 (526) 13,845 (2,459) 33,763 Equity securities 7,968 61 — 1,019 (84) 520 (986) 8,498 Total Level 3 securities $ 26,453 $ (332) $ 105 $ 5,725 $ (610) $ 14,365 $ (3,445) $ 42,261 Level 3 Assets – 2024 Year-to-Date Change: (in thousands) Beginning balance at December 31, 2023 Included in earnings (1) Included Purchases Sales Transfers into Level 3 (2) Transfers out of Level 3 (2) Ending balance at June 30, 2024 Available-for-sale securities: Corporate debt securities $ 4,506 $ 25 $ 21 $ 4,839 $ (823) $ 3,824 $ (3,849) $ 8,543 Commercial mortgage-backed securities 10,994 (669) 219 1,805 (5) 17,648 (4,772) 25,220 Residential mortgage- backed securities 1,534 (5) (24) 0 (40) 0 (1,465) 0 Total available-for-sale securities 17,034 (649) 216 6,644 (868) 21,472 (10,086) 33,763 Equity securities 7,334 147 — 2,019 (84) 544 (1,462) 8,498 Total Level 3 securities $ 24,368 $ (502) $ 216 $ 8,663 $ (952) $ 22,016 $ (11,548) $ 42,261 Level 3 Assets – 2023 Quarterly Change: (in thousands) Beginning balance at March 31, 2023 Included in earnings (1) Included Purchases Sales Transfers into Level 3 (2) Transfers out of Level 3 (2) Ending balance at June 30, 2023 Available-for-sale securities: Corporate debt securities $ 4,503 $ 14 $ 37 $ 779 $ (100) $ 1,655 $ (1,765) $ 5,123 Commercial mortgage-backed securities 6,415 (169) (117) 866 (185) 329 (606) 6,533 Residential mortgage- backed securities 33 0 0 0 (21) 0 0 12 Total available-for-sale securities 10,951 (155) (80) 1,645 (306) 1,984 (2,371) 11,668 Equity securities 4,699 31 — 0 0 0 0 4,730 Total Level 3 securities $ 15,650 $ (124) $ (80) $ 1,645 $ (306) $ 1,984 $ (2,371) $ 16,398 Level 3 Assets – 2023 Year-to-Date Change: (in thousands) Beginning balance at December 31, 2022 Included in earnings (1) Included Purchases Sales Transfers into Level 3 (2) Transfers out of Level 3 (2) Ending balance at June 30, 2023 Available-for-sale securities: Corporate debt securities $ 3,686 $ (14) $ 122 $ 1,532 $ (745) $ 3,153 $ (2,611) $ 5,123 Commercial mortgage-backed securities 10,910 (360) 100 1,455 (185) 466 (5,853) 6,533 Residential mortgage-backed securities 4,184 (5) 96 0 (108) 33 (4,188) 12 Total available-for-sale securities 18,780 (379) 318 2,987 (1,038) 3,652 (12,652) 11,668 Equity securities 3,779 (7) — 958 0 0 0 4,730 Total Level 3 securities $ 22,559 $ (386) $ 318 $ 3,945 $ (1,038) $ 3,652 $ (12,652) $ 16,398 (1) These amounts are reported as net investment income and net realized and unrealized investment gains (losses) for each of the periods presented above. (2) Transfers into and/or (out) of Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs. |
Schedule of Financial Instruments Not Carried at Fair Value | The following table presents the carrying values and fair values of financial instruments categorized as Level 3 in the fair value hierarchy that are recorded at carrying value as of: June 30, 2024 December 31, 2023 (in thousands) Carrying value Fair value Carrying value Fair value Agent loans, net $ 66,280 $ 60,361 $ 67,787 $ 66,445 Other loans receivable, net (1) 10,968 10,968 10,713 10,713 Held-to-maturity securities, net (2) 4,833 4,833 — — (1) The current and long-term portions of other loans receivable are included in the line items "Prepaid expenses and other current assets" and "Other assets, net", respectively, in the Statements of Financial Position. (2) Held-to-maturity securities are included in the line item "Other assets, net" in the Statement of Financial Position. |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Investments [Abstract] | |
Schedule of Reconciliation of Cost to Fair Value, Net of Credit Loss Allowance, of Fixed Maturity Securities | The following tables summarize the amortized cost and estimated fair value, net of credit loss allowance, of our fixed maturity securities as of: June 30, 2024 (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Available-for-sale securities: Corporate debt securities (1) $ 621,229 $ 3,560 $ 12,740 $ 612,049 Collateralized debt obligations 112,450 273 866 111,857 Commercial mortgage-backed securities 126,163 986 4,136 123,013 Residential mortgage-backed securities 144,923 58 16,990 127,991 Other debt securities 24,885 180 616 24,449 U.S. Treasury 1,043 0 18 1,025 Total available-for-sale securities, net 1,030,693 5,057 35,366 1,000,384 Held-to-maturity securities - states & political subdivisions 4,833 0 0 4,833 Total fixed maturity securities, net $ 1,035,526 $ 5,057 $ 35,366 $ 1,005,217 (1) This includes an estimated fair value of $6.1 million of securities lent under a securities lending agreement. December 31, 2023 (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Available-for-sale securities: Corporate debt securities $ 600,639 $ 4,594 $ 16,545 $ 588,688 Collateralized debt obligations 114,400 156 2,088 112,468 Commercial mortgage-backed securities 106,019 1,410 4,709 102,720 Residential mortgage-backed securities 153,633 69 13,647 140,055 Other debt securities 17,862 136 688 17,310 Total available-for-sale securities, net $ 992,553 $ 6,365 $ 37,677 $ 961,241 |
Schedule of Amortized Cost and Estimated Fair Value, Net of Credit Loss Allowance, of Fixed Maturity Securities by Remaining Contractual Term to Maturity | The amortized cost and estimated fair value of available-for-sale and held-to-maturity securities at June 30, 2024 are shown below by remaining contractual term to maturity. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. June 30, 2024 Amortized Estimated (in thousands) cost fair value Available-for-sale securities: Due in one year or less $ 47,471 $ 46,768 Due after one year through five years 441,071 433,520 Due after five years through ten years 189,349 188,453 Due after ten years 352,802 331,643 Total available-for-sale securities, net (1) (2) 1,030,693 1,000,384 Held-to-maturity securities - due after ten years 4,833 4,833 Total fixed maturity securities, net $ 1,035,526 $ 1,005,217 (1) The contractual maturities of our available-for-sale securities are included in the table. However, given our intent to sell certain impaired securities, these securities are classified as current assets in our Statement of Financial Position at June 30, 2024. (2) This includes an estimated fair value of $6.1 million of securities lent under a securities lending agreement. |
Schedule of Available-For-Sale Securities in a Gross Unrealized Loss Position by Length of Time | The following tables present available-for-sale securities based on length of time in a gross unrealized loss position as of: June 30, 2024 Less than 12 months 12 months or longer Total (dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized No. of Corporate debt securities $ 119,642 $ 909 $ 256,352 $ 11,831 $ 375,994 $ 12,740 611 Collateralized debt obligations 32,909 64 30,379 802 63,288 866 116 Commercial mortgage-backed securities 33,653 316 29,248 3,820 62,901 4,136 153 Residential mortgage-backed securities 12,704 308 112,051 16,682 124,755 16,990 166 Other debt securities 6,055 97 6,659 519 12,714 616 37 U.S. Treasury 1,025 18 0 0 1,025 18 1 Total available-for-sale securities $ 205,988 $ 1,712 $ 434,689 $ 33,654 $ 640,677 $ 35,366 1,084 Quality breakdown of available-for-sale securities: Investment grade $ 185,665 $ 1,371 $ 399,444 $ 30,785 $ 585,109 $ 32,156 691 Non-investment grade 20,323 341 35,245 2,869 55,568 3,210 393 Total available-for-sale securities $ 205,988 $ 1,712 $ 434,689 $ 33,654 $ 640,677 $ 35,366 1,084 December 31, 2023 Less than 12 months 12 months or longer Total (dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized No. of Corporate debt securities $ 50,853 $ 546 $ 338,322 $ 15,999 $ 389,175 $ 16,545 590 Collateralized debt obligations 3,911 15 87,005 2,073 90,916 2,088 142 Commercial mortgage-backed securities 9,148 157 30,145 4,552 39,293 4,709 108 Residential mortgage-backed securities 30,271 297 101,761 13,350 132,032 13,647 164 Other debt securities 2,084 62 7,475 626 9,559 688 32 Total available-for-sale securities $ 96,267 $ 1,077 $ 564,708 $ 36,600 $ 660,975 $ 37,677 1,036 Quality breakdown of available-for-sale securities: Investment grade $ 87,774 $ 807 $ 517,090 $ 32,511 $ 604,864 $ 33,318 651 Non-investment grade 8,493 270 47,618 4,089 56,111 4,359 385 Total available-for-sale securities $ 96,267 $ 1,077 $ 564,708 $ 36,600 $ 660,975 $ 37,677 1,036 |
Schedule of Allowances for Credit Losses on Fixed Maturity Securities and Financing Receivables | The following tables present a roll-forward of the allowances for credit losses on fixed maturity securities and financing receivables: Three months ended June 30, 2024 (in thousands) Available-for-sale securities Held-to-maturity securities Other loans receivable Agent loans Balance, beginning of period $ 575 $ 2,167 $ 11,253 $ 957 Provision and recoveries 79 0 185 0 Sales/collections and write-offs (151) 0 0 0 Balance, end of period $ 503 $ 2,167 $ 11,438 $ 957 Six months ended June 30, 2024 (in thousands) Available-for-sale securities Held-to-maturity securities Other loans receivable Agent loans Balance, beginning of period $ 597 $ 0 $ 11,081 $ 957 Provision and recoveries 243 2,167 357 0 Sales/collections and write-offs (337) 0 0 0 Balance, end of period $ 503 $ 2,167 $ 11,438 $ 957 Three months ended June 30, 2023 (in thousands) Available-for-sale securities Held-to-maturity securities Other loans receivable Agent loans Balance, beginning of period $ 348 $ — $ 3,709 $ 957 Provision and recoveries 22 — 27 0 Sales/collections and write-offs 0 — 0 0 Balance, end of period $ 370 $ — $ 3,736 $ 957 Six months ended June 30, 2023 (in thousands) Available-for-sale securities Held-to-maturity securities Other loans receivable Agent loans Balance, beginning of period $ 249 $ — $ 3,775 $ 957 Provision and recoveries 223 — 59 0 Sales/collections and write-offs (102) — (98) 0 Balance, end of period $ 370 $ — $ 3,736 $ 957 |
Schedule of Investment Income (Loss), Net of Expenses | Investment income (loss), net of expenses, was generated from the following portfolios: Three months ended June 30, Six months ended June 30, (in thousands) 2024 2023 2024 2023 Available-for-sale securities $ 12,107 $ 10,534 $ 23,720 $ 20,367 Equity securities 1,199 1,084 2,417 2,099 Limited partnerships (1) (264) 40 261 (10,712) Cash equivalents and other 3,389 1,922 6,337 4,027 Total investment income 16,431 13,580 32,735 15,781 Less: investment expenses 421 45 822 63 Net investment income $ 16,010 $ 13,535 $ 31,913 $ 15,718 (1) Limited partnership (losses) income include both realized gains (losses) and unrealized valuation changes. Our limited partnership investments are included in the line item "Other assets" in the Statements of Financial Position. We have made no new significant limited partnership commitments since 2006, and the balance of limited partnership investments is expected to decline over time as additional distributions are received. |
Schedule of Net Realized and Unrealized Investment (Losses) Gains | Realized and unrealized gains (losses) on investments were as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2024 2023 2024 2023 Available-for-sale securities: Gross realized gains $ 417 $ 100 $ 687 $ 306 Gross realized losses (2,792) (2,196) (3,324) (4,021) Net realized losses on available-for-sale securities (2,375) (2,096) (2,637) (3,715) Equity securities 580 359 2,695 (3,304) Net realized and unrealized investment (losses) gains $ (1,795) $ (1,737) $ 58 $ (7,019) The portion of net unrealized gains (losses) recognized during the reporting period related to equity securities held at the reporting date is calculated as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2024 2023 2024 2023 Equity securities: Net gains (losses) recognized during the period $ 580 $ 359 $ 2,695 $ (3,304) Less: net gains (losses) recognized on securities sold 116 (78) 330 (2,704) Net unrealized gains (losses) recognized on securities held at reporting date $ 464 $ 437 $ 2,365 $ (600) |
Schedule of Impairments on Investments | Impairments on investments were as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2024 2023 2024 2023 Available-for-sale securities: Intent to sell $ (124) $ (149) $ (298) $ (1,581) Credit impaired (79) (22) (243) (223) Total available-for-sale securities (203) (171) (541) (1,804) Expected credit losses: Held-to-maturity securities 0 — (2,167) — Other loans receivable (185) 0 (357) 0 Net impairment losses recognized in earnings $ (388) $ (171) $ (3,065) $ (1,804) |
Postretirement Benefits (Tables
Postretirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Schedule of Pension Plan Income | Pension plan income includes the following components: Three months ended June 30, Six months ended June 30, (in thousands) 2024 2023 2024 2023 Service cost for benefits earned $ 8,641 $ 7,191 $ 17,292 $ 14,382 Interest cost on benefit obligation 13,163 12,548 26,308 25,096 Expected return on plan assets (20,198) (17,217) (40,396) (34,435) Prior service cost amortization 397 361 786 723 Net actuarial gain amortization (1,734) (3,832) (3,485) (7,665) Settlement gain (1) (1,030) — (1,279) — Pension plan income (2) $ (761) $ (949) $ (774) $ (1,899) (1) Settlement accounting was required due to lump sum payments made under the SERP to three former officers in 2024. (2) Pension plan income represents total plan income before reimbursements between Indemnity and the Exchange and its subsidiaries. The components of pension plan income other than the service cost components are included in the line item " Other income |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) by Component, Including Amounts Reclassified to Other Comprehensive Income (Loss) and the Related Line Item in the Statements of Operations Where Net Income is Presented | Changes in accumulated other comprehensive income ("AOCI") (loss) by component, including amounts reclassified to other comprehensive income ("OCI") (loss) and the related line item in the Statements of Operations where net income is presented, are as follows: Three months ended Three months ended June 30, 2024 June 30, 2023 (in thousands) Before Tax Income Tax Net Before Tax Income Tax Net Investment securities: AOCI (loss), beginning of period $ (32,356) $ (6,795) $ (25,561) $ (53,287) $ (11,190) $ (42,097) OCI (loss) before reclassifications (627) (132) (495) (4,477) (940) (3,537) Realized investment losses 2,375 499 1,876 2,096 440 1,656 Impairment losses 203 43 160 171 36 135 OCI (loss) 1,951 410 1,541 (2,210) (464) (1,746) AOCI (loss), end of period $ (30,405) $ (6,385) $ (24,020) $ (55,497) $ (11,654) $ (43,843) Pension and other postretirement plans: AOCI, beginning of period $ 13,077 $ 2,746 $ 10,331 $ 53,715 $ 11,280 $ 42,435 OCI (loss) before reclassifications (1,731) (364) (1,367) — — — Amortization of prior service costs 397 83 314 361 76 285 Amortization of net actuarial gain (1,734) (364) (1,370) (3,832) (805) (3,027) Settlement gain (1,279) (268) (1,011) — — — OCI (loss) (4,347) (913) (3,434) (3,471) (729) (2,742) AOCI, end of period $ 8,730 $ 1,833 $ 6,897 $ 50,244 $ 10,551 $ 39,693 Total AOCI (loss), beginning of period $ (19,279) $ (4,049) $ (15,230) $ 428 $ 90 $ 338 Investment securities 1,951 410 1,541 (2,210) (464) (1,746) Pension and other postretirement plans (4,347) (913) (3,434) (3,471) (729) (2,742) OCI (loss) (2,396) (503) (1,893) (5,681) (1,193) (4,488) AOCI (loss), end of period $ (21,675) $ (4,552) $ (17,123) $ (5,253) $ (1,103) $ (4,150) Six months ended Six months ended June 30, 2024 June 30, 2023 (in thousands) Before Tax Income Tax Net Before Tax Income Tax Net Investment securities: AOCI (loss), beginning of period $ (31,402) $ (6,595) $ (24,807) $ (66,571) $ (13,980) $ (52,591) OCI (loss) before reclassifications (2,181) (458) (1,723) 5,555 1,167 4,388 Realized investment losses 2,637 554 2,083 3,715 780 2,935 Impairment losses 541 114 427 1,804 379 1,425 OCI 997 210 787 11,074 2,326 8,748 AOCI (loss), end of period $ (30,405) $ (6,385) $ (24,020) $ (55,497) $ (11,654) $ (43,843) Pension and other postretirement plans: AOCI, beginning of period $ 14,439 $ 3,032 $ 11,407 $ 57,186 $ 12,009 $ 45,177 OCI (loss) before reclassifications (1,731) (364) (1,367) — — — Amortization of prior service costs 786 165 621 723 152 571 Amortization of net actuarial gain (3,485) (732) (2,753) (7,665) (1,610) (6,055) Settlement gain (1,279) (268) (1,011) — — — OCI (loss) (5,709) (1,199) (4,510) (6,942) (1,458) (5,484) AOCI, end of period $ 8,730 $ 1,833 $ 6,897 $ 50,244 $ 10,551 $ 39,693 Total AOCI (loss), beginning of period $ (16,963) $ (3,563) $ (13,400) $ (9,385) $ (1,971) $ (7,414) Investment securities 997 210 787 11,074 2,326 8,748 Pension and other postretirement plans (5,709) (1,199) (4,510) (6,942) (1,458) (5,484) OCI (loss) (4,712) (989) (3,723) 4,132 868 3,264 AOCI (loss), end of period $ (21,675) $ (4,552) $ (17,123) $ (5,253) $ (1,103) $ (4,150) |
Nature of Operations (Details)
Nature of Operations (Details) | 6 Months Ended |
Jun. 30, 2024 obligation | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Performance obligations under subscriber's agreement | 2 |
Significant Accounting Polici_3
Significant Accounting Policies (Details) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Securities lending agreements, requiring percentage, collateral | 102% |
Securities lending agreements, requiring collateral percentage, minimum | 100% |
Revenue - Narrative (Details)
Revenue - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) obligation | Jun. 30, 2023 USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Management fee rate as a percent of direct and affiliated assumed written premiums of the exchange | 25% | |||
Performance obligations under subscriber's agreement | obligation | 2 | |||
Revenue recognized | $ | $ 11.9 | $ 10.5 | $ 26.9 | $ 23.8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Performance obligation, satisfaction period | 4 years | 4 years |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue by Performance Obligation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of revenue by performance obligation | ||||
Revenue | $ 990,438 | $ 839,870 | $ 1,871,139 | $ 1,592,335 |
Management fee revenue - policy issuance and renewal services | ||||
Disaggregation of revenue by performance obligation | ||||
Revenue | 760,886 | 633,339 | 1,426,572 | 1,191,429 |
Management fee revenue - policy issuance and renewal services | Transferred At Point in Time | ||||
Disaggregation of revenue by performance obligation | ||||
Revenue | 760,886 | 633,339 | 1,426,572 | 1,191,429 |
Administrative services | Transferred Over Time | ||||
Disaggregation of revenue by performance obligation | ||||
Revenue | 223,079 | 200,102 | 431,580 | 388,118 |
Management fee revenue - administrative services | ||||
Disaggregation of revenue by performance obligation | ||||
Revenue | 17,051 | 15,636 | 33,985 | 30,825 |
Management fee revenue - administrative services | Transferred Over Time | ||||
Disaggregation of revenue by performance obligation | ||||
Revenue | 17,051 | 15,636 | 33,985 | 30,825 |
Administrative services reimbursement revenue | ||||
Disaggregation of revenue by performance obligation | ||||
Revenue | 206,028 | 184,466 | 397,595 | 357,293 |
Administrative services reimbursement revenue | Transferred Over Time | ||||
Disaggregation of revenue by performance obligation | ||||
Revenue | $ 206,028 | $ 184,466 | $ 397,595 | $ 357,293 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) | Jun. 30, 2024 | Dec. 31, 2023 |
Class B common stock | ||
Reconciliation of the numerators and denominators used in the basic and diluted per-share computations | ||
Ratio for converting shares of Class B common stock into shares of Class A common stock | 2,400 | 2,400 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of the Numerators and Denominators Used in the Basic and Diluted Per-Share Computations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Class A common stock | ||||
Income available to stockholders (Basic EPS) | ||||
Allocated net income (numerator) | $ 162,561 | $ 116,887 | $ 286,093 | $ 202,422 |
Weighted shares (denominator) (in shares) | 46,189,042 | 46,189,026 | 46,189,028 | 46,188,923 |
Per-share amount (in dollars per share) | $ 3.52 | $ 2.53 | $ 6.19 | $ 4.38 |
Dilutive effect of stock-based awards | ||||
Allocated net income (numerator) | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted shares (denominator) (in shares) | 15,457 | 10,148 | 13,723 | 8,575 |
Assumed conversion of Class B shares | ||||
Allocated net income (numerator) | $ 1,342 | $ 965 | $ 2,362 | $ 1,671 |
Weighted shares (denominator) (in shares) | 6,100,800 | 6,100,800 | 6,100,800 | 6,100,800 |
Income available to stockholders on equivalent shares (Diluted EPS) | ||||
Allocated net income (numerator) | $ 163,903 | $ 117,852 | $ 288,455 | $ 204,093 |
Weighted shares (denominator) (in shares) | 52,305,299 | 52,299,974 | 52,303,551 | 52,298,298 |
Per-share amount (in dollars per share) | $ 3.13 | $ 2.25 | $ 5.52 | $ 3.90 |
Class B common stock | ||||
Income available to stockholders (Basic EPS) | ||||
Allocated net income (numerator) | $ 1,342 | $ 965 | $ 2,362 | $ 1,671 |
Weighted shares (denominator) (in shares) | 2,542 | 2,542 | 2,542 | 2,542 |
Per-share amount (in dollars per share) | $ 528 | $ 380 | $ 929 | $ 657 |
Income available to stockholders on equivalent shares (Diluted EPS) | ||||
Allocated net income (numerator) | $ 1,342 | $ 965 | $ 2,361 | $ 1,671 |
Weighted shares (denominator) (in shares) | 2,542 | 2,542 | 2,542 | 2,542 |
Per-share amount (in dollars per share) | $ 528 | $ 380 | $ 929 | $ 657 |
Fair Value - Fair Value Measure
Fair Value - Fair Value Measurements on a Recurring Basis by Asset Class and Level of Input (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Fair value measurements on a recurring basis by asset class and level of input | ||
Total available-for-sale securities | $ 1,000,384 | |
Fair value of loaned securities | 6,125 | $ 0 |
Available-for-sale securities | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total available-for-sale securities | 1,000,384 | 961,241 |
Corporate debt securities | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total available-for-sale securities | 612,049 | 588,688 |
Collateralized debt obligations | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total available-for-sale securities | 111,857 | 112,468 |
Commercial mortgage-backed securities | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total available-for-sale securities | 123,013 | 102,720 |
Residential mortgage-backed securities | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total available-for-sale securities | 127,991 | 140,055 |
Other debt securities | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total available-for-sale securities | 24,449 | 17,310 |
U.S. Treasury | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total available-for-sale securities | 1,025 | |
Fair Value, Measurements, Recurring Basis | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total | 1,080,512 | 1,045,494 |
Fair Value, Measurements, Recurring Basis | Available-for-sale securities | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total available-for-sale securities | 1,000,384 | 961,241 |
Fair Value, Measurements, Recurring Basis | Corporate debt securities | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total available-for-sale securities | 612,049 | 588,688 |
Fair Value, Measurements, Recurring Basis | Collateralized debt obligations | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total available-for-sale securities | 111,857 | 112,468 |
Fair Value, Measurements, Recurring Basis | Commercial mortgage-backed securities | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total available-for-sale securities | 123,013 | 102,720 |
Fair Value, Measurements, Recurring Basis | Residential mortgage-backed securities | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total available-for-sale securities | 127,991 | 140,055 |
Fair Value, Measurements, Recurring Basis | Other debt securities | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total available-for-sale securities | 24,449 | 17,310 |
Fair Value, Measurements, Recurring Basis | U.S. Treasury | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total available-for-sale securities | 1,025 | |
Fair Value, Measurements, Recurring Basis | Equity securities | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total equity securities | 80,128 | 84,253 |
Fair Value, Measurements, Recurring Basis | Equity securities | Financial services sector | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total equity securities | 65,321 | 69,900 |
Fair Value, Measurements, Recurring Basis | Equity securities | Utilities sector | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total equity securities | 5,543 | 5,810 |
Fair Value, Measurements, Recurring Basis | Equity securities | Energy sector | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total equity securities | 3,689 | 3,901 |
Fair Value, Measurements, Recurring Basis | Equity securities | Consumer sector | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total equity securities | 3,885 | 3,915 |
Fair Value, Measurements, Recurring Basis | Equity securities | Technology sector | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total equity securities | 1,500 | 500 |
Fair Value, Measurements, Recurring Basis | Equity securities | Industrial sector | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total equity securities | 190 | 180 |
Fair Value, Measurements, Recurring Basis | Equity securities | Communications sector | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total equity securities | 47 | |
Fair Value, Measurements, Recurring Basis | Level 1 | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total | 1,537 | 863 |
Fair Value, Measurements, Recurring Basis | Level 1 | Available-for-sale securities | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring Basis | Level 1 | Corporate debt securities | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring Basis | Level 1 | Collateralized debt obligations | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring Basis | Level 1 | Commercial mortgage-backed securities | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring Basis | Level 1 | Residential mortgage-backed securities | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring Basis | Level 1 | Other debt securities | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring Basis | Level 1 | U.S. Treasury | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total available-for-sale securities | 0 | |
Fair Value, Measurements, Recurring Basis | Level 1 | Equity securities | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total equity securities | 1,537 | 863 |
Fair Value, Measurements, Recurring Basis | Level 1 | Equity securities | Financial services sector | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total equity securities | 1,537 | 816 |
Fair Value, Measurements, Recurring Basis | Level 1 | Equity securities | Utilities sector | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total equity securities | 0 | 0 |
Fair Value, Measurements, Recurring Basis | Level 1 | Equity securities | Energy sector | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total equity securities | 0 | 0 |
Fair Value, Measurements, Recurring Basis | Level 1 | Equity securities | Consumer sector | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total equity securities | 0 | 0 |
Fair Value, Measurements, Recurring Basis | Level 1 | Equity securities | Technology sector | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total equity securities | 0 | 0 |
Fair Value, Measurements, Recurring Basis | Level 1 | Equity securities | Industrial sector | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total equity securities | 0 | 0 |
Fair Value, Measurements, Recurring Basis | Level 1 | Equity securities | Communications sector | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total equity securities | 47 | |
Fair Value, Measurements, Recurring Basis | Level 2 | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total | 1,036,714 | 1,020,263 |
Fair Value, Measurements, Recurring Basis | Level 2 | Available-for-sale securities | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total available-for-sale securities | 966,621 | 944,207 |
Fair Value, Measurements, Recurring Basis | Level 2 | Corporate debt securities | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total available-for-sale securities | 603,506 | 584,182 |
Fair Value, Measurements, Recurring Basis | Level 2 | Collateralized debt obligations | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total available-for-sale securities | 111,857 | 112,468 |
Fair Value, Measurements, Recurring Basis | Level 2 | Commercial mortgage-backed securities | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total available-for-sale securities | 97,793 | 91,726 |
Fair Value, Measurements, Recurring Basis | Level 2 | Residential mortgage-backed securities | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total available-for-sale securities | 127,991 | 138,521 |
Fair Value, Measurements, Recurring Basis | Level 2 | Other debt securities | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total available-for-sale securities | 24,449 | 17,310 |
Fair Value, Measurements, Recurring Basis | Level 2 | U.S. Treasury | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total available-for-sale securities | 1,025 | |
Fair Value, Measurements, Recurring Basis | Level 2 | Equity securities | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total equity securities | 70,093 | 76,056 |
Fair Value, Measurements, Recurring Basis | Level 2 | Equity securities | Financial services sector | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total equity securities | 58,350 | 63,750 |
Fair Value, Measurements, Recurring Basis | Level 2 | Equity securities | Utilities sector | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total equity securities | 5,543 | 5,810 |
Fair Value, Measurements, Recurring Basis | Level 2 | Equity securities | Energy sector | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total equity securities | 3,689 | 3,901 |
Fair Value, Measurements, Recurring Basis | Level 2 | Equity securities | Consumer sector | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total equity securities | 2,321 | 2,415 |
Fair Value, Measurements, Recurring Basis | Level 2 | Equity securities | Technology sector | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total equity securities | 0 | 0 |
Fair Value, Measurements, Recurring Basis | Level 2 | Equity securities | Industrial sector | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total equity securities | 190 | 180 |
Fair Value, Measurements, Recurring Basis | Level 2 | Equity securities | Communications sector | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total equity securities | 0 | |
Fair Value, Measurements, Recurring Basis | Level 3 | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total | 42,261 | 24,368 |
Fair Value, Measurements, Recurring Basis | Level 3 | Available-for-sale securities | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total available-for-sale securities | 33,763 | 17,034 |
Fair Value, Measurements, Recurring Basis | Level 3 | Corporate debt securities | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total available-for-sale securities | 8,543 | 4,506 |
Fair Value, Measurements, Recurring Basis | Level 3 | Collateralized debt obligations | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring Basis | Level 3 | Commercial mortgage-backed securities | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total available-for-sale securities | 25,220 | 10,994 |
Fair Value, Measurements, Recurring Basis | Level 3 | Residential mortgage-backed securities | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total available-for-sale securities | 0 | 1,534 |
Fair Value, Measurements, Recurring Basis | Level 3 | Other debt securities | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring Basis | Level 3 | U.S. Treasury | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total available-for-sale securities | 0 | |
Fair Value, Measurements, Recurring Basis | Level 3 | Equity securities | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total equity securities | 8,498 | 7,334 |
Fair Value, Measurements, Recurring Basis | Level 3 | Equity securities | Financial services sector | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total equity securities | 5,434 | 5,334 |
Fair Value, Measurements, Recurring Basis | Level 3 | Equity securities | Utilities sector | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total equity securities | 0 | 0 |
Fair Value, Measurements, Recurring Basis | Level 3 | Equity securities | Energy sector | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total equity securities | 0 | 0 |
Fair Value, Measurements, Recurring Basis | Level 3 | Equity securities | Consumer sector | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total equity securities | 1,564 | 1,500 |
Fair Value, Measurements, Recurring Basis | Level 3 | Equity securities | Technology sector | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total equity securities | 1,500 | 500 |
Fair Value, Measurements, Recurring Basis | Level 3 | Equity securities | Industrial sector | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total equity securities | $ 0 | 0 |
Fair Value, Measurements, Recurring Basis | Level 3 | Equity securities | Communications sector | ||
Fair value measurements on a recurring basis by asset class and level of input | ||
Total equity securities | $ 0 |
Fair Value - Level 3 Assets (De
Fair Value - Level 3 Assets (Details) - Level 3 - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Roll forward of level 3 fair value measurements on a recurring basis | ||||
Beginning balance | $ 26,453 | $ 15,650 | $ 24,368 | $ 22,559 |
Included in earnings | (332) | (124) | (502) | (386) |
Included in other comprehensive income (loss) | 105 | (80) | 216 | 318 |
Purchases | 5,725 | 1,645 | 8,663 | 3,945 |
Sales | (610) | (306) | (952) | (1,038) |
Transfers into Level 3 | 14,365 | 1,984 | 22,016 | 3,652 |
Transfers out of Level 3 | (3,445) | (2,371) | (11,548) | (12,652) |
Ending balance | 42,261 | 16,398 | 42,261 | 16,398 |
Available-for-sale securities | ||||
Roll forward of level 3 fair value measurements on a recurring basis | ||||
Beginning balance | 18,485 | 10,951 | 17,034 | 18,780 |
Included in earnings | (393) | (155) | (649) | (379) |
Included in other comprehensive income (loss) | 105 | (80) | 216 | 318 |
Purchases | 4,706 | 1,645 | 6,644 | 2,987 |
Sales | (526) | (306) | (868) | (1,038) |
Transfers into Level 3 | 13,845 | 1,984 | 21,472 | 3,652 |
Transfers out of Level 3 | (2,459) | (2,371) | (10,086) | (12,652) |
Ending balance | 33,763 | 11,668 | 33,763 | 11,668 |
Available-for-sale securities | Corporate debt securities | ||||
Roll forward of level 3 fair value measurements on a recurring basis | ||||
Beginning balance | 3,908 | 4,503 | 4,506 | 3,686 |
Included in earnings | 22 | 14 | 25 | (14) |
Included in other comprehensive income (loss) | (20) | 37 | 21 | 122 |
Purchases | 4,496 | 779 | 4,839 | 1,532 |
Sales | (521) | (100) | (823) | (745) |
Transfers into Level 3 | 2,202 | 1,655 | 3,824 | 3,153 |
Transfers out of Level 3 | (1,544) | (1,765) | (3,849) | (2,611) |
Ending balance | 8,543 | 5,123 | 8,543 | 5,123 |
Available-for-sale securities | Commercial mortgage-backed securities | ||||
Roll forward of level 3 fair value measurements on a recurring basis | ||||
Beginning balance | 14,577 | 6,415 | 10,994 | 10,910 |
Included in earnings | (415) | (169) | (669) | (360) |
Included in other comprehensive income (loss) | 125 | (117) | 219 | 100 |
Purchases | 210 | 866 | 1,805 | 1,455 |
Sales | (5) | (185) | (5) | (185) |
Transfers into Level 3 | 11,643 | 329 | 17,648 | 466 |
Transfers out of Level 3 | (915) | (606) | (4,772) | (5,853) |
Ending balance | 25,220 | 6,533 | 25,220 | 6,533 |
Available-for-sale securities | Residential mortgage- backed securities | ||||
Roll forward of level 3 fair value measurements on a recurring basis | ||||
Beginning balance | 33 | 1,534 | 4,184 | |
Included in earnings | 0 | (5) | (5) | |
Included in other comprehensive income (loss) | 0 | (24) | 96 | |
Purchases | 0 | 0 | 0 | |
Sales | (21) | (40) | (108) | |
Transfers into Level 3 | 0 | 0 | 33 | |
Transfers out of Level 3 | 0 | (1,465) | (4,188) | |
Ending balance | 0 | 12 | 0 | 12 |
Equity securities | Equity securities | ||||
Roll forward of level 3 fair value measurements on a recurring basis | ||||
Beginning balance | 7,968 | 4,699 | 7,334 | 3,779 |
Included in earnings | 61 | 31 | 147 | (7) |
Included in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases | 1,019 | 0 | 2,019 | 958 |
Sales | (84) | 0 | (84) | 0 |
Transfers into Level 3 | 520 | 0 | 544 | 0 |
Transfers out of Level 3 | (986) | 0 | (1,462) | 0 |
Ending balance | $ 8,498 | $ 4,730 | $ 8,498 | $ 4,730 |
Fair Value - Financial Instrume
Fair Value - Financial Instruments Not Carried at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Held-to-maturity securities, net | ||
Carrying value and fair value measurements of financial instruments not carried at fair value | ||
Carrying value | $ 4,833 | |
Fair value | 4,833 | |
Carrying value | Agent loans, net | ||
Carrying value and fair value measurements of financial instruments not carried at fair value | ||
Carrying value | 66,280 | $ 67,787 |
Carrying value | Other loans receivable, net | ||
Carrying value and fair value measurements of financial instruments not carried at fair value | ||
Carrying value | 10,968 | 10,713 |
Carrying value | Held-to-maturity securities, net | ||
Carrying value and fair value measurements of financial instruments not carried at fair value | ||
Carrying value | 4,833 | 0 |
Fair value | Agent loans, net | Level 3 Fair Value | ||
Carrying value and fair value measurements of financial instruments not carried at fair value | ||
Fair value | 60,361 | 66,445 |
Fair value | Other loans receivable, net | Level 3 Fair Value | ||
Carrying value and fair value measurements of financial instruments not carried at fair value | ||
Fair value | 10,968 | 10,713 |
Fair value | Held-to-maturity securities, net | Level 3 Fair Value | ||
Carrying value and fair value measurements of financial instruments not carried at fair value | ||
Fair value | $ 4,833 | $ 0 |
Investments - Cost and Fair Val
Investments - Cost and Fair Value, Net of Credit Loss Allowance, of Fixed Maturity Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Available-for-sale securities: | ||
Amortized cost | $ 1,030,693 | |
Estimated fair value | 1,000,384 | |
Held-to-maturity securities: | ||
Amortized cost | 1,035,526 | |
Gross unrealized gains | 5,057 | |
Gross unrealized losses | 35,366 | |
Estimated fair value | 1,005,217 | |
Fair value of loaned securities | 6,125 | $ 0 |
Corporate debt securities | ||
Available-for-sale securities: | ||
Amortized cost | 621,229 | 600,639 |
Gross unrealized gains | 3,560 | 4,594 |
Gross unrealized losses | 12,740 | 16,545 |
Estimated fair value | 612,049 | 588,688 |
Collateralized debt obligations | ||
Available-for-sale securities: | ||
Amortized cost | 112,450 | 114,400 |
Gross unrealized gains | 273 | 156 |
Gross unrealized losses | 866 | 2,088 |
Estimated fair value | 111,857 | 112,468 |
Commercial mortgage-backed securities | ||
Available-for-sale securities: | ||
Amortized cost | 126,163 | 106,019 |
Gross unrealized gains | 986 | 1,410 |
Gross unrealized losses | 4,136 | 4,709 |
Estimated fair value | 123,013 | 102,720 |
Residential mortgage- backed securities | ||
Available-for-sale securities: | ||
Amortized cost | 144,923 | 153,633 |
Gross unrealized gains | 58 | 69 |
Gross unrealized losses | 16,990 | 13,647 |
Estimated fair value | 127,991 | 140,055 |
Other debt securities | ||
Available-for-sale securities: | ||
Amortized cost | 24,885 | 17,862 |
Gross unrealized gains | 180 | 136 |
Gross unrealized losses | 616 | 688 |
Estimated fair value | 24,449 | 17,310 |
U.S. Treasury | ||
Available-for-sale securities: | ||
Amortized cost | 1,043 | |
Gross unrealized gains | 0 | |
Gross unrealized losses | 18 | |
Estimated fair value | 1,025 | |
Available-for-sale securities | ||
Available-for-sale securities: | ||
Amortized cost | 1,030,693 | 992,553 |
Gross unrealized gains | 5,057 | 6,365 |
Gross unrealized losses | 35,366 | 37,677 |
Estimated fair value | 1,000,384 | $ 961,241 |
Held-to-maturity securities | ||
Held-to-maturity securities: | ||
Amortized cost | 4,833 | |
Gross unrealized gains | 0 | |
Gross unrealized losses | 0 | |
Estimated fair value | $ 4,833 |
Investments - Amortized Cost an
Investments - Amortized Cost and Estimated Fair Value, Net of Credit Loss Allowance, of Fixed Maturity Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Available-for-sale securities, Amortized cost | ||
Due in one year or less | $ 47,471 | |
Due after one year through five years | 441,071 | |
Due after five years through ten years | 189,349 | |
Due after ten years | 352,802 | |
Amortized cost | 1,030,693 | |
Held-to-maturity securities, Amortized cost | ||
Held-to-maturity securities - due after ten years | 4,833 | |
Available-for-sale securities, Estimated fair value | ||
Due in one year or less | 46,768 | |
Due after one year through five years | 433,520 | |
Due after five years through ten years | 188,453 | |
Due after ten years | 331,643 | |
Estimated fair value | 1,000,384 | |
Held-to-maturity securities, Estimated fair value | ||
Held-to-maturity securities - due after ten years | 4,833 | |
Amortized cost | 1,035,526 | |
Estimated fair value | 1,005,217 | |
Fair value of loaned securities | $ 6,125 | $ 0 |
Investments - Available-For-Sal
Investments - Available-For-Sale Securities in a Gross Unrealized Loss Position by Length of Time (Details) $ in Thousands | Jun. 30, 2024 USD ($) holding | Dec. 31, 2023 USD ($) holding |
Investment grade | ||
Fair value | ||
Less than 12 months | $ 185,665 | $ 87,774 |
12 months or longer | 399,444 | 517,090 |
Total | 585,109 | 604,864 |
Unrealized losses | ||
Less than 12 months | 1,371 | 807 |
12 months or longer | 30,785 | 32,511 |
Total | $ 32,156 | $ 33,318 |
No. of holdings | holding | 691 | 651 |
Non-investment grade | ||
Fair value | ||
Less than 12 months | $ 20,323 | $ 8,493 |
12 months or longer | 35,245 | 47,618 |
Total | 55,568 | 56,111 |
Unrealized losses | ||
Less than 12 months | 341 | 270 |
12 months or longer | 2,869 | 4,089 |
Total | $ 3,210 | $ 4,359 |
No. of holdings | holding | 393 | 385 |
Corporate debt securities | ||
Fair value | ||
Less than 12 months | $ 119,642 | $ 50,853 |
12 months or longer | 256,352 | 338,322 |
Total | 375,994 | 389,175 |
Unrealized losses | ||
Less than 12 months | 909 | 546 |
12 months or longer | 11,831 | 15,999 |
Total | $ 12,740 | $ 16,545 |
No. of holdings | holding | 611 | 590 |
Collateralized debt obligations | ||
Fair value | ||
Less than 12 months | $ 32,909 | $ 3,911 |
12 months or longer | 30,379 | 87,005 |
Total | 63,288 | 90,916 |
Unrealized losses | ||
Less than 12 months | 64 | 15 |
12 months or longer | 802 | 2,073 |
Total | $ 866 | $ 2,088 |
No. of holdings | holding | 116 | 142 |
Commercial mortgage-backed securities | ||
Fair value | ||
Less than 12 months | $ 33,653 | $ 9,148 |
12 months or longer | 29,248 | 30,145 |
Total | 62,901 | 39,293 |
Unrealized losses | ||
Less than 12 months | 316 | 157 |
12 months or longer | 3,820 | 4,552 |
Total | $ 4,136 | $ 4,709 |
No. of holdings | holding | 153 | 108 |
Residential mortgage- backed securities | ||
Fair value | ||
Less than 12 months | $ 12,704 | $ 30,271 |
12 months or longer | 112,051 | 101,761 |
Total | 124,755 | 132,032 |
Unrealized losses | ||
Less than 12 months | 308 | 297 |
12 months or longer | 16,682 | 13,350 |
Total | $ 16,990 | $ 13,647 |
No. of holdings | holding | 166 | 164 |
Other debt securities | ||
Fair value | ||
Less than 12 months | $ 6,055 | $ 2,084 |
12 months or longer | 6,659 | 7,475 |
Total | 12,714 | 9,559 |
Unrealized losses | ||
Less than 12 months | 97 | 62 |
12 months or longer | 519 | 626 |
Total | $ 616 | $ 688 |
No. of holdings | holding | 37 | 32 |
U.S. Treasury | ||
Fair value | ||
Less than 12 months | $ 1,025 | |
12 months or longer | 0 | |
Total | 1,025 | |
Unrealized losses | ||
Less than 12 months | 18 | |
12 months or longer | 0 | |
Total | $ 18 | |
No. of holdings | holding | 1 | |
Available-for-sale securities | ||
Fair value | ||
Less than 12 months | $ 205,988 | $ 96,267 |
12 months or longer | 434,689 | 564,708 |
Total | 640,677 | 660,975 |
Unrealized losses | ||
Less than 12 months | 1,712 | 1,077 |
12 months or longer | 33,654 | 36,600 |
Total | $ 35,366 | $ 37,677 |
No. of holdings | holding | 1,084 | 1,036 |
Investments - Allowance for Cre
Investments - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Debt Securities, Available-for-Sale, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for credit losses, beginning of period | $ 575 | $ 348 | $ 597 | $ 249 |
Provision and recoveries | 79 | 22 | 243 | 223 |
Sales/collections and write-offs | (151) | 0 | (337) | (102) |
Allowance for credit losses, end of period | 503 | 370 | 503 | 370 |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for credit losses, beginning of period | 2,167 | 0 | 0 | 0 |
Provision and recoveries | 0 | 0 | 2,167 | 0 |
Sales/collections and write-offs | 0 | 0 | 0 | 0 |
Allowance for credit losses, end of period | 2,167 | 0 | 2,167 | 0 |
Other loans receivable | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for credit losses, beginning of period | 11,253 | 3,709 | 11,081 | 3,775 |
Provision and recoveries | 185 | 27 | 357 | 59 |
Sales/collections and write-offs | 0 | 0 | 0 | (98) |
Allowance for credit losses, end of period | 11,438 | 3,736 | 11,438 | 3,736 |
Agent loans | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for credit losses, beginning of period | 957 | 957 | 957 | 957 |
Provision and recoveries | 0 | 0 | 0 | 0 |
Sales/collections and write-offs | 0 | 0 | 0 | 0 |
Allowance for credit losses, end of period | $ 957 | $ 957 | $ 957 | $ 957 |
Investments - Net Investment In
Investments - Net Investment Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Investment income (loss) from portfolios | ||||
Total investment income | $ 16,431 | $ 13,580 | $ 32,735 | $ 15,781 |
Less: investment expenses | 421 | 45 | 822 | 63 |
Net investment income | 16,010 | 13,535 | 31,913 | 15,718 |
Available-for-sale securities | ||||
Investment income (loss) from portfolios | ||||
Available-for-sale, equity securities, cash equivalents, and other | 12,107 | 10,534 | 23,720 | 20,367 |
Equity securities | ||||
Investment income (loss) from portfolios | ||||
Available-for-sale, equity securities, cash equivalents, and other | 1,199 | 1,084 | 2,417 | 2,099 |
Limited partnerships | ||||
Investment income (loss) from portfolios | ||||
Limited partnerships | (264) | 40 | 261 | (10,712) |
Cash equivalents and other | ||||
Investment income (loss) from portfolios | ||||
Available-for-sale, equity securities, cash equivalents, and other | $ 3,389 | $ 1,922 | $ 6,337 | $ 4,027 |
Investments - Net Realized and
Investments - Net Realized and Unrealized Investment Gains (Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Equity securities: | ||||
Equity securities | $ 580 | $ 359 | $ 2,695 | $ (3,304) |
Net realized and unrealized investment (losses) gains | (1,795) | (1,737) | 58 | (7,019) |
Available-for-sale securities | ||||
Available-for-sale securities: | ||||
Gross realized gains | 417 | 100 | 687 | 306 |
Gross realized losses | (2,792) | (2,196) | (3,324) | (4,021) |
Net realized losses on available-for-sale securities | (2,375) | (2,096) | (2,637) | (3,715) |
Equity securities | ||||
Equity securities: | ||||
Equity securities | $ 580 | $ 359 | $ 2,695 | $ (3,304) |
Investments - Portion of Net Un
Investments - Portion of Net Unrealized Gains (Losses) Recognized During the Reporting Period (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Equity securities: | ||||
Net gains (losses) recognized during the period | $ 580 | $ 359 | $ 2,695 | $ (3,304) |
Less: net gains (losses) recognized on securities sold | 116 | (78) | 330 | (2,704) |
Net unrealized gains (losses) recognized on securities held at reporting date | $ 464 | $ 437 | $ 2,365 | $ (600) |
Investments - Impairments on In
Investments - Impairments on Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Schedule of Impairments [Line Items] | ||||
Credit impaired | $ 79 | $ 22 | $ 243 | $ 223 |
Expected credit losses: | ||||
Held-to-maturity securities | 0 | 0 | (2,167) | 0 |
Net impairment losses recognized in earnings | (388) | (171) | (3,065) | (1,804) |
Available-for-sale securities | ||||
Schedule of Impairments [Line Items] | ||||
Intent to sell | (124) | (149) | (298) | (1,581) |
Credit impaired | (79) | (22) | (243) | (223) |
Total available-for-sale securities | (203) | (171) | (541) | (1,804) |
Held-to-maturity securities | ||||
Expected credit losses: | ||||
Held-to-maturity securities | 0 | 0 | (2,167) | 0 |
Other loans receivable | ||||
Expected credit losses: | ||||
Net impairment losses recognized in earnings | $ (185) | $ 0 | $ (357) | $ 0 |
Investments - Securities Lendin
Investments - Securities Lending Transactions (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Investments [Abstract] | ||
Fair value of loaned securities | $ 6,125 | $ 0 |
Fair value of cash collateral | 6,300 | |
Collateral that is not permitted to be sold or repledged | $ 0 |
Bank Line of Credit (Details)
Bank Line of Credit (Details) - Revolving line of credit | Jun. 30, 2024 USD ($) |
Bank line of credit | |
Maximum borrowing capacity under the bank revolving line of credit | $ 100,000,000 |
Maximum letter of credit sublimit under the bank revolving line of credit | 25,000,000 |
Available borrowing capacity under the bank revolving line of credit, due to outstanding letters of credit | 99,200,000 |
Outstanding amount of letters of credit sublimit under the bank revolving line of credit | 800,000 |
Available amount of letters of credit sublimit under the bank revolving line of credit | 24,200,000 |
Borrowings outstanding under the bank revolving line of credit | 0 |
Security owned and pledged as collateral, associated liabilities, fair value | $ 117,000,000 |
Postretirement Benefits - Narra
Postretirement Benefits - Narrative (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Employee pension plan | |
Postretirement Benefits | |
Funding target (as a percentage of the funding target liability) | 100% |
Defined benefit plan, plan assets, contributions by employer | $ 33 |
Erie Insurance Exchange | Employee pension plan | |
Postretirement Benefits | |
Postretirement annual benefit income reimbursed to the Exchange and its subsidiaries (as a percent) | 60% |
Erie Insurance Exchange | Supplemental employee retirement plan (SERP) | |
Postretirement Benefits | |
Postretirement annual benefit income reimbursed to the Exchange and its subsidiaries (as a percent) | 34% |
Postretirement Benefits - Pensi
Postretirement Benefits - Pension Plan Income (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 USD ($) Participants | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) Participants | Jun. 30, 2023 USD ($) | |
Retirement Benefits [Abstract] | ||||
Service cost for benefits earned | $ 8,641 | $ 7,191 | $ 17,292 | $ 14,382 |
Interest cost on benefit obligation | 13,163 | 12,548 | 26,308 | 25,096 |
Expected return on plan assets | (20,198) | (17,217) | (40,396) | (34,435) |
Prior service cost amortization | 397 | 361 | 786 | 723 |
Net actuarial gain amortization | (1,734) | (3,832) | (3,485) | (7,665) |
Settlement gain (1) | (1,030) | 0 | (1,279) | 0 |
Pension plan income | $ (761) | $ (949) | $ (774) | $ (1,899) |
Defined benefit plan, net periodic benefit cost (credit) excluding service cost, statement of income or comprehensive income | Other income | |||
Settlement accounting, number of participants receiving lump sum payments | Participants | 3 | 3 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate (as a percent) | 20.90% | 21% | 20.90% | 21% |
Capital Stock - Class A and B C
Capital Stock - Class A and B Common Stock (Details) - Class B common stock | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 shares | Dec. 31, 2023 shares | |
Common Stock | ||
Ratio for converting shares of Class B common stock into shares of Class A common stock | 2,400 | 2,400 |
Class B common stock shares converted into Class A common stock shares (in shares) | 0 | 0 |
Capital Stock - Stock Repurchas
Capital Stock - Stock Repurchases (Details) - Stock repurchase program - Class A common stock - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | Dec. 31, 2011 | |
Stock repurchases | |||
Amount of authorized stock repurchases approved for continuation under the current program | $ 150 | ||
Shares repurchased under stock repurchase program (in shares) | 0 | 0 | |
Approximate amount of repurchase authority remaining under the current stock repurchase program | $ 17.8 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Accumulated other comprehensive income (loss), net of tax | ||||||
AOCI (loss), beginning of period | $ (13,400) | $ (13,400) | ||||
Investment securities, OCI (loss) | $ 1,541 | $ (1,746) | 787 | $ 8,748 | ||
Pension and other postretirement plans, OCI (loss) | (3,434) | (2,742) | (4,510) | (5,484) | ||
OCI (loss) | (1,893) | (1,830) | (4,488) | $ 7,752 | (3,723) | 3,264 |
AOCI (loss), end of period | (17,123) | (17,123) | ||||
Total | ||||||
Accumulated other comprehensive income (loss), before tax | ||||||
AOCI (loss), beginning of period | (19,279) | (16,963) | 428 | (9,385) | (16,963) | (9,385) |
Investment securities, OCI (loss) | 1,951 | (2,210) | 997 | 11,074 | ||
Pension and other postretirement plans, OCI (loss) | (4,347) | (3,471) | (5,709) | (6,942) | ||
OCI (loss) | (2,396) | (5,681) | (4,712) | 4,132 | ||
AOCI (loss), end of period | (21,675) | (19,279) | (5,253) | 428 | (21,675) | (5,253) |
Accumulated other comprehensive income (loss), tax | ||||||
AOCI (loss), beginning of period | (4,049) | (3,563) | 90 | (1,971) | (3,563) | (1,971) |
Investment securities, OCI (loss) | 410 | (464) | 210 | 2,326 | ||
Pension and other postretirement plans, OCI (loss) | (913) | (729) | (1,199) | (1,458) | ||
OCI (loss) | (503) | (1,193) | (989) | 868 | ||
AOCI (loss), end of period | (4,552) | (4,049) | (1,103) | 90 | (4,552) | (1,103) |
Accumulated other comprehensive income (loss), net of tax | ||||||
AOCI (loss), beginning of period | (15,230) | (13,400) | 338 | (7,414) | (13,400) | (7,414) |
Investment securities, OCI (loss) | 1,541 | (1,746) | 787 | 8,748 | ||
Pension and other postretirement plans, OCI (loss) | (3,434) | (2,742) | (4,510) | (5,484) | ||
OCI (loss) | (1,893) | (1,830) | (4,488) | 7,752 | (3,723) | 3,264 |
AOCI (loss), end of period | (17,123) | (15,230) | (4,150) | 338 | (17,123) | (4,150) |
Investment securities: | ||||||
Accumulated other comprehensive income (loss), before tax | ||||||
AOCI (loss), beginning of period | (32,356) | (31,402) | (53,287) | (66,571) | (31,402) | (66,571) |
OCI (loss) before reclassifications | (627) | (4,477) | (2,181) | 5,555 | ||
Realized investment losses | 2,375 | 2,096 | 2,637 | 3,715 | ||
Impairment losses | 203 | 171 | 541 | 1,804 | ||
Investment securities, OCI (loss) | 1,951 | (2,210) | 997 | 11,074 | ||
AOCI (loss), end of period | (30,405) | (32,356) | (55,497) | (53,287) | (30,405) | (55,497) |
Accumulated other comprehensive income (loss), tax | ||||||
AOCI (loss), beginning of period | (6,795) | (6,595) | (11,190) | (13,980) | (6,595) | (13,980) |
OCI (loss) before reclassifications | (132) | (940) | (458) | 1,167 | ||
Realized investment losses | 499 | 440 | 554 | 780 | ||
Impairment losses | 43 | 36 | 114 | 379 | ||
Investment securities, OCI (loss) | 410 | (464) | 210 | 2,326 | ||
AOCI (loss), end of period | (6,385) | (6,795) | (11,654) | (11,190) | (6,385) | (11,654) |
Accumulated other comprehensive income (loss), net of tax | ||||||
AOCI (loss), beginning of period | (25,561) | (24,807) | (42,097) | (52,591) | (24,807) | (52,591) |
OCI (loss) before reclassifications | (495) | (3,537) | (1,723) | 4,388 | ||
Realized investment losses | 1,876 | 1,656 | 2,083 | 2,935 | ||
Impairment losses | 160 | 135 | 427 | 1,425 | ||
Investment securities, OCI (loss) | 1,541 | (1,746) | 787 | 8,748 | ||
AOCI (loss), end of period | (24,020) | (25,561) | (43,843) | (42,097) | (24,020) | (43,843) |
Pension and other postretirement plans: | ||||||
Accumulated other comprehensive income (loss), before tax | ||||||
AOCI (loss), beginning of period | 13,077 | 14,439 | 53,715 | 57,186 | 14,439 | 57,186 |
OCI (loss) before reclassifications | (1,731) | 0 | (1,731) | 0 | ||
Amortization of prior service costs | 397 | 361 | 786 | 723 | ||
Amortization of net actuarial gain | (1,734) | (3,832) | (3,485) | (7,665) | ||
Settlement gain | (1,279) | 0 | (1,279) | 0 | ||
Pension and other postretirement plans, OCI (loss) | (4,347) | (3,471) | (5,709) | (6,942) | ||
AOCI (loss), end of period | 8,730 | 13,077 | 50,244 | 53,715 | 8,730 | 50,244 |
Accumulated other comprehensive income (loss), tax | ||||||
AOCI (loss), beginning of period | 2,746 | 3,032 | 11,280 | 12,009 | 3,032 | 12,009 |
OCI (loss) before reclassifications | (364) | 0 | (364) | 0 | ||
Amortization of prior service costs | 83 | 76 | 165 | 152 | ||
Amortization of net actuarial gain | (364) | (805) | (732) | (1,610) | ||
Settlement gain | (268) | 0 | (268) | 0 | ||
Pension and other postretirement plans, OCI (loss) | (913) | (729) | (1,199) | (1,458) | ||
AOCI (loss), end of period | 1,833 | 2,746 | 10,551 | 11,280 | 1,833 | 10,551 |
Accumulated other comprehensive income (loss), net of tax | ||||||
AOCI (loss), beginning of period | 10,331 | 11,407 | 42,435 | 45,177 | 11,407 | 45,177 |
OCI (loss) before reclassifications | (1,367) | 0 | (1,367) | 0 | ||
Amortization of prior service costs | 314 | 285 | 621 | 571 | ||
Amortization of net actuarial gain | (1,370) | (3,027) | (2,753) | (6,055) | ||
Settlement gain | (1,011) | 0 | (1,011) | 0 | ||
Pension and other postretirement plans, OCI (loss) | (3,434) | (2,742) | (4,510) | (5,484) | ||
AOCI (loss), end of period | $ 6,897 | $ 10,331 | $ 39,693 | $ 42,435 | $ 6,897 | $ 39,693 |
Concentrations of Credit Risk (
Concentrations of Credit Risk (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Concentration Risk [Line Items] | ||
Receivables from Erie Insurance Exchange and affiliates, net | $ 708,171 | $ 625,338 |
Receivables from Erie Insurance Exchange, allowance for credit loss | 600 | 600 |
Affiliated Entity | ||
Concentration Risk [Line Items] | ||
Receivables from Erie Insurance Exchange and affiliates, net | $ 708,200 | $ 625,300 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Agent loans | |
Other Commitments [Line Items] | |
Minimum funding percentage of each loan | 30% |
Participation amount in loan program | $ 18,800,000 |
Agent loans | Payment Guarantee | |
Other Commitments [Line Items] | |
Loan program, guaranteed amount | 7,500,000 |
Agent loans | Third-Party Bank | |
Other Commitments [Line Items] | |
Amount of loan participation program | 55,900,000 |
Other loans receivable | Payment Guarantee | |
Other Commitments [Line Items] | |
Loan program, guaranteed amount | 9,300,000 |
Maximum | Agent loans | Third-Party Bank | |
Other Commitments [Line Items] | |
Amount of loan participation program | $ 150,000,000 |