Debt and Equity Securities (Tables)
|
3 Months Ended |
Mar. 31, 2016 |
|---|
| Gross Unrealized Losses on Investments in Debt and Equity Securities |
Gross unrealized losses on investments in debt and equity securities are as follows:
|
|
Less than 12 months |
|
|
12 months or longer |
|
|
Total |
|
|
(in thousands) |
Estimated
fair value |
|
|
Unrealized
losses |
|
|
Estimated
fair value |
|
|
Unrealized
losses |
|
|
Estimated
fair value |
|
|
Unrealized
losses |
|
|
March 31, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury bonds |
$ |
36,201 |
|
|
$ |
(18 |
) |
|
$ |
1,669 |
|
|
$ |
(1 |
) |
|
$ |
37,870 |
|
|
$ |
(19 |
) |
|
Municipal bonds |
|
53,911 |
|
|
|
(408 |
) |
|
|
20,703 |
|
|
|
(247 |
) |
|
|
74,614 |
|
|
|
(655 |
) |
|
Foreign government bonds |
|
12,420 |
|
|
|
(226 |
) |
|
|
1,825 |
|
|
|
(82 |
) |
|
|
14,245 |
|
|
|
(308 |
) |
|
Governmental agency bonds |
|
28,989 |
|
|
|
(126 |
) |
|
|
8,013 |
|
|
|
(299 |
) |
|
|
37,002 |
|
|
|
(425 |
) |
|
Governmental agency mortgage-backed securities |
|
379,752 |
|
|
|
(2,487 |
) |
|
|
412,197 |
|
|
|
(3,559 |
) |
|
|
791,949 |
|
|
|
(6,046 |
) |
|
U.S. corporate debt securities |
|
133,784 |
|
|
|
(4,013 |
) |
|
|
51,549 |
|
|
|
(2,682 |
) |
|
|
185,333 |
|
|
|
(6,695 |
) |
|
Foreign corporate debt securities |
|
48,983 |
|
|
|
(1,395 |
) |
|
|
14,060 |
|
|
|
(996 |
) |
|
|
63,043 |
|
|
|
(2,391 |
) |
|
Total debt securities |
|
694,040 |
|
|
|
(8,673 |
) |
|
|
510,016 |
|
|
|
(7,866 |
) |
|
|
1,204,056 |
|
|
|
(16,539 |
) |
|
Equity securities |
|
122,741 |
|
|
|
(10,289 |
) |
|
|
32,700 |
|
|
|
(6,956 |
) |
|
|
155,441 |
|
|
|
(17,245 |
) |
|
Total |
$ |
816,781 |
|
|
$ |
(18,962 |
) |
|
$ |
542,716 |
|
|
$ |
(14,822 |
) |
|
$ |
1,359,497 |
|
|
$ |
(33,784 |
) |
|
December 31, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury bonds |
$ |
105,701 |
|
|
$ |
(1,285 |
) |
|
$ |
1,654 |
|
|
$ |
(16 |
) |
|
$ |
107,355 |
|
|
$ |
(1,301 |
) |
|
Municipal bonds |
|
133,465 |
|
|
|
(733 |
) |
|
|
13,190 |
|
|
|
(112 |
) |
|
|
146,655 |
|
|
|
(845 |
) |
|
Foreign government bonds |
|
13,601 |
|
|
|
(890 |
) |
|
|
267 |
|
|
|
(125 |
) |
|
|
13,868 |
|
|
|
(1,015 |
) |
|
Governmental agency bonds |
|
191,035 |
|
|
|
(2,497 |
) |
|
|
18,237 |
|
|
|
(304 |
) |
|
|
209,272 |
|
|
|
(2,801 |
) |
|
Governmental agency mortgage-backed securities |
|
1,096,301 |
|
|
|
(9,424 |
) |
|
|
213,020 |
|
|
|
(5,615 |
) |
|
|
1,309,321 |
|
|
|
(15,039 |
) |
|
U.S. corporate debt securities |
|
361,842 |
|
|
|
(11,272 |
) |
|
|
13,511 |
|
|
|
(1,211 |
) |
|
|
375,353 |
|
|
|
(12,483 |
) |
|
Foreign corporate debt securities |
|
102,801 |
|
|
|
(2,725 |
) |
|
|
11,246 |
|
|
|
(1,053 |
) |
|
|
114,047 |
|
|
|
(3,778 |
) |
|
Total debt securities |
|
2,004,746 |
|
|
|
(28,826 |
) |
|
|
271,125 |
|
|
|
(8,436 |
) |
|
|
2,275,871 |
|
|
|
(37,262 |
) |
|
Equity securities |
|
191,248 |
|
|
|
(12,068 |
) |
|
|
31,974 |
|
|
|
(5,904 |
) |
|
|
223,222 |
|
|
|
(17,972 |
) |
|
Total |
$ |
2,195,994 |
|
|
$ |
(40,894 |
) |
|
$ |
303,099 |
|
|
$ |
(14,340 |
) |
|
$ |
2,499,093 |
|
|
$ |
(55,234 |
) |
|
| Investments in Debt Securities |
Investments in debt securities at March 31, 2016, by contractual maturities, are as follows:
|
(in thousands) |
Due in one
year or less |
|
|
Due after
one through
five years |
|
|
Due after
five through
ten years |
|
|
Due after
ten years |
|
|
Total |
|
|
U.S. Treasury bonds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortized cost |
$ |
29,278 |
|
|
$ |
84,413 |
|
|
$ |
11,792 |
|
|
$ |
16,932 |
|
|
$ |
142,415 |
|
|
Estimated fair value |
$ |
29,291 |
|
|
$ |
85,165 |
|
|
$ |
12,304 |
|
|
$ |
17,634 |
|
|
$ |
144,394 |
|
|
Municipal bonds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortized cost |
$ |
41,773 |
|
|
$ |
311,695 |
|
|
$ |
193,192 |
|
|
$ |
136,135 |
|
|
$ |
682,795 |
|
|
Estimated fair value |
$ |
41,824 |
|
|
$ |
316,813 |
|
|
$ |
199,772 |
|
|
$ |
141,115 |
|
|
$ |
699,524 |
|
|
Foreign government bonds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortized cost |
$ |
5,939 |
|
|
$ |
108,209 |
|
|
$ |
6,933 |
|
|
$ |
7,426 |
|
|
$ |
128,507 |
|
|
Estimated fair value |
$ |
5,951 |
|
|
$ |
109,288 |
|
|
$ |
7,135 |
|
|
$ |
7,203 |
|
|
$ |
129,577 |
|
|
Governmental agency bonds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortized cost |
$ |
20,842 |
|
|
$ |
270,610 |
|
|
$ |
31,507 |
|
|
$ |
30,246 |
|
|
$ |
353,205 |
|
|
Estimated fair value |
$ |
20,862 |
|
|
$ |
271,093 |
|
|
$ |
31,936 |
|
|
$ |
31,050 |
|
|
$ |
354,941 |
|
|
U.S. corporate debt securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortized cost |
$ |
12,859 |
|
|
$ |
318,771 |
|
|
$ |
257,677 |
|
|
$ |
64,385 |
|
|
$ |
653,692 |
|
|
Estimated fair value |
$ |
12,972 |
|
|
$ |
322,275 |
|
|
$ |
259,039 |
|
|
$ |
65,579 |
|
|
$ |
659,865 |
|
|
Foreign corporate debt securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortized cost |
$ |
10,983 |
|
|
$ |
109,046 |
|
|
$ |
89,960 |
|
|
$ |
15,044 |
|
|
$ |
225,033 |
|
|
Estimated fair value |
$ |
10,940 |
|
|
$ |
109,509 |
|
|
$ |
89,885 |
|
|
$ |
15,352 |
|
|
$ |
225,686 |
|
|
Total debt securities excluding mortgage-backed securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortized cost |
$ |
121,674 |
|
|
$ |
1,202,744 |
|
|
$ |
591,061 |
|
|
$ |
270,168 |
|
|
$ |
2,185,647 |
|
|
Estimated fair value |
$ |
121,840 |
|
|
$ |
1,214,143 |
|
|
$ |
600,071 |
|
|
$ |
277,933 |
|
|
$ |
2,213,987 |
|
|
Total mortgage-backed securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortized cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
2,039,111 |
|
|
Estimated fair value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
2,044,958 |
|
|
Total debt securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortized cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
4,224,758 |
|
|
Estimated fair value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
4,258,945 |
|
|
| Composition of Investment Portfolio by Credit Rating Agencies |
The composition of the investment portfolio at March 31, 2016, by credit rating, is as follows:
|
|
A- Ratings or higher |
|
|
BBB+ to BBB- Ratings |
|
|
Non-Investment Grade |
|
|
Total |
|
|
(in thousands, except percentages) |
Estimated
fair value |
|
|
|
Percentage |
|
|
Estimated
fair value |
|
|
|
Percentage |
|
|
Estimated
fair value |
|
|
|
Percentage |
|
|
Estimated
fair value |
|
|
|
Percentage |
|
|
March 31, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury bonds |
$ |
144,394 |
|
|
|
100.0 |
|
|
$ |
— |
|
|
|
— |
|
|
$ |
— |
|
|
|
— |
|
|
$ |
144,394 |
|
|
|
100.0 |
|
|
Municipal bonds |
|
670,617 |
|
|
|
95.9 |
|
|
|
23,887 |
|
|
|
3.4 |
|
|
|
5,020 |
|
|
|
0.7 |
|
|
|
699,524 |
|
|
|
100.0 |
|
|
Foreign government bonds |
|
120,950 |
|
|
|
93.3 |
|
|
|
7,515 |
|
|
|
5.8 |
|
|
|
1,112 |
|
|
|
0.9 |
|
|
|
129,577 |
|
|
|
100.0 |
|
|
Governmental agency bonds |
|
354,941 |
|
|
|
100.0 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
354,941 |
|
|
|
100.0 |
|
|
Governmental agency mortgage-backed securities |
|
2,044,958 |
|
|
|
100.0 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,044,958 |
|
|
|
100.0 |
|
|
U.S. corporate debt securities |
|
296,764 |
|
|
|
45.0 |
|
|
|
182,015 |
|
|
|
27.6 |
|
|
|
181,086 |
|
|
|
27.4 |
|
|
|
659,865 |
|
|
|
100.0 |
|
|
Foreign corporate debt securities |
|
123,272 |
|
|
|
54.6 |
|
|
|
60,524 |
|
|
|
26.8 |
|
|
|
41,890 |
|
|
|
18.6 |
|
|
|
225,686 |
|
|
|
100.0 |
|
|
Total debt securities |
|
3,755,896 |
|
|
|
88.2 |
|
|
|
273,941 |
|
|
|
6.4 |
|
|
|
229,108 |
|
|
|
5.4 |
|
|
|
4,258,945 |
|
|
|
100.0 |
|
|
Preferred stocks |
|
— |
|
|
|
— |
|
|
|
8,869 |
|
|
|
57.4 |
|
|
|
6,577 |
|
|
|
42.6 |
|
|
|
15,446 |
|
|
|
100.0 |
|
|
Total |
$ |
3,755,896 |
|
|
|
87.9 |
|
|
$ |
282,810 |
|
|
|
6.6 |
|
|
$ |
235,685 |
|
|
|
5.5 |
|
|
$ |
4,274,391 |
|
|
|
100.0 |
|
|
| Composition of Investment Portfolio in Unrealized Loss Position by Credit Rating Agencies |
The composition of the investment portfolio in an unrealized loss position at March 31, 2016, by credit rating, is as follows:
|
|
A- Ratings or higher |
|
|
BBB+ to BBB- Ratings |
|
|
Non-Investment Grade |
|
|
Total |
|
|
(in thousands, except percentages) |
Estimated
fair value |
|
|
|
Percentage |
|
|
Estimated
fair value |
|
|
|
Percentage |
|
|
Estimated
fair value |
|
|
|
Percentage |
|
|
Estimated
fair value |
|
|
|
Percentage |
|
|
March 31, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury bonds |
$ |
37,870 |
|
|
|
100.0 |
|
|
$ |
— |
|
|
|
— |
|
|
$ |
— |
|
|
|
— |
|
|
$ |
37,870 |
|
|
|
100.0 |
|
|
Municipal bonds |
|
64,560 |
|
|
|
86.6 |
|
|
|
5,034 |
|
|
|
6.7 |
|
|
|
5,020 |
|
|
|
6.7 |
|
|
|
74,614 |
|
|
|
100.0 |
|
|
Foreign government bonds |
|
7,567 |
|
|
|
53.1 |
|
|
|
5,566 |
|
|
|
39.1 |
|
|
|
1,112 |
|
|
|
7.8 |
|
|
|
14,245 |
|
|
|
100.0 |
|
|
Governmental agency bonds |
|
37,002 |
|
|
|
100.0 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
37,002 |
|
|
|
100.0 |
|
|
Governmental agency mortgage-backed securities |
|
791,949 |
|
|
|
100.0 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
791,949 |
|
|
|
100.0 |
|
|
U.S. corporate debt securities |
|
37,102 |
|
|
|
20.1 |
|
|
|
59,762 |
|
|
|
32.2 |
|
|
|
88,469 |
|
|
|
47.7 |
|
|
|
185,333 |
|
|
|
100.0 |
|
|
Foreign corporate debt securities |
|
14,542 |
|
|
|
23.1 |
|
|
|
22,219 |
|
|
|
35.2 |
|
|
|
26,282 |
|
|
|
41.7 |
|
|
|
63,043 |
|
|
|
100.0 |
|
|
Total debt securities |
|
990,592 |
|
|
|
82.3 |
|
|
|
92,581 |
|
|
|
7.7 |
|
|
|
120,883 |
|
|
|
10.0 |
|
|
|
1,204,056 |
|
|
|
100.0 |
|
|
Preferred stocks |
|
— |
|
|
|
— |
|
|
|
8,869 |
|
|
|
59.0 |
|
|
|
6,158 |
|
|
|
41.0 |
|
|
|
15,027 |
|
|
|
100.0 |
|
|
Total |
$ |
990,592 |
|
|
|
81.3 |
|
|
$ |
101,450 |
|
|
|
8.3 |
|
|
$ |
127,041 |
|
|
|
10.4 |
|
|
$ |
1,219,083 |
|
|
|
100.0 |
|
|
| Debt Securities |
|
| Investments Classified as Available-For-Sale |
Investments in debt securities, classified as available-for-sale, are as follows:
|
(in thousands) |
Amortized
cost |
|
|
Gross unrealized |
|
|
Estimated
fair value |
|
|
Gains |
|
|
Losses |
|
|
March 31, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury bonds |
$ |
142,415 |
|
|
$ |
1,998 |
|
|
$ |
(19 |
) |
|
$ |
144,394 |
|
|
Municipal bonds |
|
682,795 |
|
|
|
17,384 |
|
|
|
(655 |
) |
|
|
699,524 |
|
|
Foreign government bonds |
|
128,507 |
|
|
|
1,378 |
|
|
|
(308 |
) |
|
|
129,577 |
|
|
Governmental agency bonds |
|
353,205 |
|
|
|
2,161 |
|
|
|
(425 |
) |
|
|
354,941 |
|
|
Governmental agency mortgage-backed securities |
|
2,039,111 |
|
|
|
11,893 |
|
|
|
(6,046 |
) |
|
|
2,044,958 |
|
|
U.S. corporate debt securities |
|
653,692 |
|
|
|
12,868 |
|
|
|
(6,695 |
) |
|
|
659,865 |
|
|
Foreign corporate debt securities |
|
225,033 |
|
|
|
3,044 |
|
|
|
(2,391 |
) |
|
|
225,686 |
|
|
|
$ |
4,224,758 |
|
|
$ |
50,726 |
|
|
$ |
(16,539 |
) |
|
$ |
4,258,945 |
|
|
December 31, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury bonds |
$ |
130,252 |
|
|
$ |
421 |
|
|
$ |
(1,301 |
) |
|
$ |
129,372 |
|
|
Municipal bonds |
|
692,000 |
|
|
|
12,640 |
|
|
|
(845 |
) |
|
|
703,795 |
|
|
Foreign government bonds |
|
129,984 |
|
|
|
1,132 |
|
|
|
(1,015 |
) |
|
|
130,101 |
|
|
Governmental agency bonds |
|
419,869 |
|
|
|
1,023 |
|
|
|
(2,801 |
) |
|
|
418,091 |
|
|
Governmental agency mortgage-backed securities |
|
2,065,728 |
|
|
|
4,984 |
|
|
|
(15,039 |
) |
|
|
2,055,673 |
|
|
U.S. corporate debt securities |
|
642,869 |
|
|
|
4,297 |
|
|
|
(12,483 |
) |
|
|
634,683 |
|
|
Foreign corporate debt securities |
|
210,162 |
|
|
|
1,248 |
|
|
|
(3,778 |
) |
|
|
207,632 |
|
|
|
$ |
4,290,864 |
|
|
$ |
25,745 |
|
|
$ |
(37,262 |
) |
|
$ |
4,279,347 |
|
|
| Equity securities |
|
| Investments Classified as Available-For-Sale |
Investments in equity securities, classified as available-for-sale, are as follows:
|
|
Cost |
|
|
Gross unrealized |
|
|
Estimated
fair value |
|
|
(in thousands) |
|
|
Gains |
|
|
Losses |
|
|
|
|
March 31, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stocks |
$ |
19,657 |
|
|
$ |
385 |
|
|
$ |
(4,596 |
) |
|
$ |
15,446 |
|
|
Common stocks |
|
375,062 |
|
|
|
18,778 |
|
|
|
(12,649 |
) |
|
|
381,191 |
|
|
|
$ |
394,719 |
|
|
$ |
19,163 |
|
|
$ |
(17,245 |
) |
|
$ |
396,637 |
|
|
December 31, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stocks |
$ |
18,305 |
|
|
$ |
420 |
|
|
$ |
(3,258 |
) |
|
$ |
15,467 |
|
|
Common stocks |
|
307,429 |
|
|
|
13,103 |
|
|
|
(14,714 |
) |
|
|
305,818 |
|
|
|
$ |
325,734 |
|
|
$ |
13,523 |
|
|
$ |
(17,972 |
) |
|
$ |
321,285 |
|
|