☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐
|
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. |
Commission File Number
|
1-15202
|
Delaware | 22-1867895 | |||||||||||||
(State or other jurisdiction of
incorporation or organization) |
(I.R.S. Employer Identification No.) | |||||||||||||
475 Steamboat Road | Greenwich | Connecticut | 06830 | |||||||||||
(Address of principal executive offices) | (Zip Code) |
(203) | 629-3000 |
None | ||||||||
Former name, former address and former fiscal year, if changed since last report.
|
Title | Trading Symbol | Name | ||||||
Common Stock, par value $.20 per share | WRB | New York Stock Exchange | ||||||
5.90% Subordinated Debentures due 2056 | WRB-PC | New York Stock Exchange | ||||||
5.75% Subordinated Debentures due 2056 | WRB-PD | New York Stock Exchange | ||||||
5.70% Subordinated Debentures due 2058 | WRB-PE | New York Stock Exchange | ||||||
5.10% Subordinated Debentures due 2059 | WRB-PF | New York Stock Exchange | ||||||
4.25% Subordinated Debentures due 2060 | WRB-PG | New York Stock Exchange |
Large accelerated filer |
☒
|
Accelerated filer | ☐ | |||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||
Emerging growth company | ☐ |
EX-101 INSTANCE DOCUMENT | |||||
EX-101 SCHEMA DOCUMENT | |||||
EX-101 CALCULATION LINKBASE DOCUMENT | |||||
EX-101 LABELS LINKBASE DOCUMENT | |||||
EX-101 PRESENTATION LINKBASE DOCUMENT | |||||
EX-101 DEFINITION LINKBASE DOCUMENT |
September 30,
2020 |
December 31,
2019 |
||||||||||
(Unaudited) | (Audited) | ||||||||||
Assets | |||||||||||
Investments: | |||||||||||
Fixed maturity securities (amortized cost of $13,536,264 and $13,976,647; allowance for expected credit losses of $2,567 at September 30, 2020)
|
$ | 13,893,046 | $ | 14,180,961 | |||||||
Real estate | 2,106,474 | 2,105,950 | |||||||||
Investment funds | 1,163,707 | 1,213,535 | |||||||||
Arbitrage trading account | 595,727 | 400,809 | |||||||||
Equity securities | 435,303 | 480,620 | |||||||||
Loans receivable (net of allowance for expected credit losses of $5,843 at September 30, 2020)
|
84,771 | 91,799 | |||||||||
Total investments | 18,279,028 | 18,473,674 | |||||||||
Cash and cash equivalents | 2,571,447 | 1,023,710 | |||||||||
Premiums and fees receivable (net of allowance for expected credit losses of $23,033 at September 30, 2020)
|
2,162,192 | 1,997,186 | |||||||||
Due from reinsurers (net of allowance for expected credit losses of $7,741 at September 30, 2020)
|
2,323,833 | 2,133,683 | |||||||||
Deferred policy acquisition costs | 560,739 | 517,364 | |||||||||
Prepaid reinsurance premiums | 626,229 | 567,595 | |||||||||
Trading account receivables from brokers and clearing organizations | 252,223 | 423,543 | |||||||||
Property, furniture and equipment | 410,228 | 422,091 | |||||||||
Goodwill | 169,652 | 169,652 | |||||||||
Accrued investment income | 128,370 | 138,789 | |||||||||
Federal and foreign income taxes | 30,069 | — | |||||||||
Other assets | 698,360 | 762,743 | |||||||||
Total assets | $ | 28,212,370 | $ | 26,630,030 | |||||||
Liabilities and Equity | |||||||||||
Liabilities: | |||||||||||
Reserves for losses and loss expenses | $ | 13,459,359 | $ | 12,583,249 | |||||||
Unearned premiums | 4,054,471 | 3,656,507 | |||||||||
Due to reinsurers | 406,844 | 360,314 | |||||||||
Trading account securities sold but not yet purchased | 19,254 | 36,143 | |||||||||
Federal and foreign income taxes | — | 4,308 | |||||||||
Other liabilities | 1,159,957 | 1,244,888 | |||||||||
Senior notes and other debt | 1,629,077 | 1,427,575 | |||||||||
Subordinated debentures | 1,443,736 | 1,198,704 | |||||||||
Total liabilities | 22,172,698 | 20,511,688 | |||||||||
Equity: | |||||||||||
Preferred stock, par value $0.10 per share:
|
|||||||||||
Authorized 5,000,000 shares; issued and outstanding - none
|
— | — | |||||||||
Common stock, par value $0.20 per share:
|
|||||||||||
Authorized 750,000,000 shares, issued and outstanding, net of treasury shares, 178,217,537 and 183,411,907 shares, respectively
|
70,535 | 70,535 | |||||||||
Additional paid-in capital | 1,064,719 | 1,056,042 | |||||||||
Retained earnings | 8,057,556 | 7,932,372 | |||||||||
Accumulated other comprehensive loss | (170,886) | (257,299) | |||||||||
Treasury stock, at cost, 174,458,963 and 169,264,857 shares, respectively
|
(3,026,812) | (2,726,711) | |||||||||
Total stockholders’ equity | 5,995,112 | 6,074,939 | |||||||||
Noncontrolling interests | 44,560 | 43,403 | |||||||||
Total equity | 6,039,672 | 6,118,342 | |||||||||
Total liabilities and equity | $ | 28,212,370 | $ | 26,630,030 |
For the Three Months
Ended September 30, |
For the Nine Months
Ended September 30, |
||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
REVENUES: | |||||||||||||||||||||||
Net premiums written | $ | 1,879,316 | $ | 1,749,906 | $ | 5,464,980 | $ | 5,202,971 | |||||||||||||||
Change in net unearned premiums | (130,395) | (73,096) | (347,727) | (286,464) | |||||||||||||||||||
Net premiums earned | 1,748,921 | 1,676,810 | 5,117,253 | 4,916,507 | |||||||||||||||||||
Net investment income | 142,650 | 161,692 | 402,844 | 508,279 | |||||||||||||||||||
Net investment gains (losses): | |||||||||||||||||||||||
Net realized and unrealized (losses) gains on investments | (7,772) | 1,465 | (89,404) | 143,691 | |||||||||||||||||||
Change in allowance for expected credit losses on investments | 46,750 | — | 29,093 | — | |||||||||||||||||||
Net investment gains (losses) | 38,978 | 1,465 | (60,311) | 143,691 | |||||||||||||||||||
Revenues from non-insurance businesses | 87,495 | 101,880 | 256,966 | 283,005 | |||||||||||||||||||
Insurance service fees | 21,635 | 23,681 | 67,256 | 71,440 | |||||||||||||||||||
Other income | 140 | 188 | 2,446 | 3,200 | |||||||||||||||||||
Total revenues | 2,039,819 | 1,965,716 | 5,786,454 | 5,926,122 | |||||||||||||||||||
OPERATING COSTS AND EXPENSES: | |||||||||||||||||||||||
Losses and loss expenses | 1,114,632 | 1,041,471 | 3,357,011 | 3,058,950 | |||||||||||||||||||
Other operating costs and expenses | 593,969 | 581,045 | 1,753,142 | 1,760,961 | |||||||||||||||||||
Expenses from non-insurance businesses | 85,036 | 101,743 | 256,032 | 280,141 | |||||||||||||||||||
Interest expense | 39,768 | 38,475 | 114,874 | 119,913 | |||||||||||||||||||
Total operating costs and expenses | 1,833,405 | 1,762,734 | 5,481,059 | 5,219,965 | |||||||||||||||||||
Income before income taxes | 206,414 | 202,982 | 305,395 | 706,157 | |||||||||||||||||||
Income tax expense | (54,048) | (37,831) | (84,900) | (141,965) | |||||||||||||||||||
Net income before noncontrolling interests | 152,366 | 165,151 | 220,495 | 564,192 | |||||||||||||||||||
Noncontrolling interests | (688) | 57 | (1,975) | (1,554) | |||||||||||||||||||
Net income to common stockholders | $ | 151,678 | $ | 165,208 | $ | 218,520 | $ | 562,638 | |||||||||||||||
NET INCOME PER SHARE: | |||||||||||||||||||||||
Basic | $ | 0.82 | $ | 0.87 | $ | 1.17 | $ | 2.95 | |||||||||||||||
Diluted | $ | 0.81 | $ | 0.85 | $ | 1.15 | $ | 2.91 |
For the Three Months
Ended September 30, |
For the Nine Months
Ended September 30, |
||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Net income before noncontrolling interests | $ | 152,366 | $ | 165,151 | $ | 220,495 | $ | 564,192 | |||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Change in unrealized currency translation adjustments | 40,194 | (36,682) | (36,553) | (31,414) | |||||||||||||||||||
Change in unrealized investment gains (losses), net of taxes | 38,273 | (24,745) | 98,016 | 219,679 | |||||||||||||||||||
Other comprehensive income (loss) | 78,467 | (61,427) | 61,463 | 188,265 | |||||||||||||||||||
Comprehensive income | 230,833 | 103,724 | 281,958 | 752,457 | |||||||||||||||||||
Noncontrolling interests | (685) | (66) | (1,973) | (1,659) | |||||||||||||||||||
Comprehensive income to common stockholders | $ | 230,148 | $ | 103,658 | $ | 279,985 | $ | 750,798 |
For the Three Months
Ended September 30, |
For the Nine Months
Ended September 30, |
||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
COMMON STOCK: | |||||||||||||||||||||||
Beginning and end of period | $ | 70,535 | $ | 70,535 | $ | 70,535 | $ | 70,535 | |||||||||||||||
ADDITIONAL PAID-IN CAPITAL: | |||||||||||||||||||||||
Beginning of period | $ | 1,076,043 | $ | 1,058,416 | $ | 1,056,042 | $ | 1,039,633 | |||||||||||||||
Restricted stock units issued | (23,387) | (28,155) | (26,773) | (30,659) | |||||||||||||||||||
Restricted stock units expensed | 12,063 | 15,187 | 35,450 | 36,474 | |||||||||||||||||||
End of period | $ | 1,064,719 | $ | 1,045,448 | $ | 1,064,719 | $ | 1,045,448 | |||||||||||||||
RETAINED EARNINGS: | |||||||||||||||||||||||
Beginning of period | $ | 7,927,280 | $ | 7,826,015 | $ | 7,932,372 | $ | 7,558,619 | |||||||||||||||
Cumulative effect adjustment resulting from changes in accounting principles | — | — | (30,514) | — | |||||||||||||||||||
Net income to common stockholders | 151,678 | 165,208 | 218,520 | 562,638 | |||||||||||||||||||
Dividends ($0.12, $0.11, $0.35 and $0.82 per share, respectively)
|
(21,402) | (20,204) | (62,822) | (150,238) | |||||||||||||||||||
End of period | $ | 8,057,556 | $ | 7,971,019 | $ | 8,057,556 | $ | 7,971,019 | |||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS: | |||||||||||||||||||||||
Unrealized investment gains (losses): | |||||||||||||||||||||||
Beginning of period | $ | 209,210 | $ | 152,915 | $ | 124,514 | $ | (91,491) | |||||||||||||||
Cumulative effect adjustment resulting from changes in accounting principles | — | — | 24,952 | — | |||||||||||||||||||
Change in unrealized gains (losses) on securities without an allowance for expected credit losses | 35,111 | (25,005) | 77,537 | 219,388 | |||||||||||||||||||
Change in unrealized gains on securities with an allowance for expected credit losses | 3,159 | 383 | 20,477 | 396 | |||||||||||||||||||
End of period | 247,480 | 128,293 | 247,480 | 128,293 | |||||||||||||||||||
Currency translation adjustments: | |||||||||||||||||||||||
Beginning of period | (458,560) | (413,711) | (381,813) | (418,979) | |||||||||||||||||||
Net change in period | 40,194 | (36,682) | (36,553) | (31,414) | |||||||||||||||||||
End of period | (418,366) | (450,393) | (418,366) | (450,393) | |||||||||||||||||||
Total accumulated other comprehensive loss | $ | (170,886) | $ | (322,100) | $ | (170,886) | $ | (322,100) | |||||||||||||||
TREASURY STOCK: | |||||||||||||||||||||||
Beginning of period | $ | (3,023,392) | $ | (2,717,410) | $ | (2,726,711) | $ | (2,720,466) | |||||||||||||||
Stock exercised/vested | 9,537 | 8,804 | 11,758 | 11,860 | |||||||||||||||||||
Stock repurchased | (12,957) | — | (311,859) | — | |||||||||||||||||||
End of period | $ | (3,026,812) | $ | (2,708,606) | $ | (3,026,812) | $ | (2,708,606) | |||||||||||||||
NONCONTROLLING INTERESTS: | |||||||||||||||||||||||
Beginning of period | $ | 44,275 | $ | 43,318 | $ | 43,403 | $ | 41,947 | |||||||||||||||
Distributions | (400) | (237) | (816) | (459) | |||||||||||||||||||
Net income | 688 | (57) | 1,975 | 1,554 | |||||||||||||||||||
Other comprehensive (loss) income, net of tax | (3) | 123 | (2) | 105 | |||||||||||||||||||
End of period | $ | 44,560 | $ | 43,147 | $ | 44,560 | $ | 43,147 |
For the Nine Months
Ended September 30, |
|||||||||||
2020 | 2019 | ||||||||||
CASH FROM OPERATING ACTIVITIES: | |||||||||||
Net income to common stockholders | $ | 218,520 | $ | 562,638 | |||||||
Adjustments to reconcile net income to net cash from operating activities: | |||||||||||
Net investment losses (gains) | 60,311 | (143,691) | |||||||||
Depreciation and amortization | 96,195 | 42,007 | |||||||||
Noncontrolling interests | 1,975 | 1,554 | |||||||||
Investment funds | (1,260) | (77,284) | |||||||||
Stock incentive plans | 37,842 | 38,440 | |||||||||
Change in: | |||||||||||
Arbitrage trading account | (40,487) | (20,422) | |||||||||
Premiums and fees receivable | (175,636) | (206,867) | |||||||||
Reinsurance accounts | (204,396) | (116,359) | |||||||||
Deferred policy acquisition costs | (43,955) | (30,537) | |||||||||
Income taxes | (56,955) | (16,449) | |||||||||
Reserves for losses and loss expenses | 879,277 | 443,454 | |||||||||
Unearned premiums | 407,227 | 336,664 | |||||||||
Other | (41,713) | (18,104) | |||||||||
Net cash from operating activities | 1,136,945 | 795,044 | |||||||||
CASH FROM (USED IN) INVESTING ACTIVITIES: | |||||||||||
Proceeds from sale of fixed maturity securities | 3,525,926 | 1,341,688 | |||||||||
Proceeds from sale of equity securities | 66,850 | 40,709 | |||||||||
Distributions from investment funds | 83,935 | 187,321 | |||||||||
Proceeds from maturities and prepayments of fixed maturity securities | 2,876,642 | 2,278,264 | |||||||||
Purchase of fixed maturity securities | (6,074,429) | (3,853,108) | |||||||||
Purchase of equity securities | (77,840) | (66,305) | |||||||||
Real estate purchased | (42,405) | (176,538) | |||||||||
Change in loans receivable | 1,202 | 3,156 | |||||||||
Net purchases of property, furniture and equipment | (31,047) | (1,802) | |||||||||
Change in balances due to security brokers | 36,561 | 54,620 | |||||||||
Other | 65 | 45 | |||||||||
Net cash from (used in) investing activities | 365,460 | (191,950) | |||||||||
CASH FROM (USED IN) FINANCING ACTIVITIES: | |||||||||||
Repayment of senior notes and other debt | (302,453) | (448,409) | |||||||||
Net proceeds from issuance of debt | 747,399 | — | |||||||||
Cash dividends to common stockholders | (62,822) | (130,035) | |||||||||
Purchase of common treasury shares | (311,859) | — | |||||||||
Other, net | (18,465) | (20,750) | |||||||||
Net cash from (used in) financing activities | 51,800 | (599,194) | |||||||||
Net impact on cash due to change in foreign exchange rates | (6,468) | (8,952) | |||||||||
Net change in cash and cash equivalents | 1,547,737 | (5,052) | |||||||||
Cash and cash equivalents at beginning of year | 1,023,710 | 817,602 | |||||||||
Cash and cash equivalents at end of period | $ | 2,571,447 | $ | 812,550 |
For the Three Months
Ended September 30, |
For the Nine Months
Ended September 30, |
||||||||||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Basic | 185,765 | 190,862 | 187,338 | 190,593 | |||||||||||||||||||
Diluted | 187,717 | 193,589 | 189,515 | 193,557 |
(In thousands) | Unrealized Investment Gains (Losses) | Currency Translation Adjustments |
Accumulated Other Comprehensive
(Loss) Income |
|||||||||||||||||
As of and for the nine months ended September 30, 2020 | ||||||||||||||||||||
Changes in AOCI | ||||||||||||||||||||
Beginning of period | $ | 124,514 | $ | (381,813) | $ | (257,299) | ||||||||||||||
Cumulative effect adjustment resulting from changes in accounting principles | 24,952 | — | 24,952 | |||||||||||||||||
Restated beginning of period | 149,466 | (381,813) | (232,347) | |||||||||||||||||
Other comprehensive income (loss) before reclassifications | 76,474 | (36,553) | 39,921 | |||||||||||||||||
Amounts reclassified from AOCI | 21,542 | — | 21,542 | |||||||||||||||||
Other comprehensive income (loss) | 98,016 | (36,553) | 61,463 | |||||||||||||||||
Unrealized investment gain related to noncontrolling interest | (2) | — | (2) | |||||||||||||||||
End of period | $ | 247,480 | $ | (418,366) | $ | (170,886) | ||||||||||||||
Amounts reclassified from AOCI | ||||||||||||||||||||
Pre-tax | $ | 27,268 | (1) | $ | — | $ | 27,268 | |||||||||||||
Tax effect | (5,726) | (2) | — | (5,726) | ||||||||||||||||
After-tax amounts reclassified | $ | 21,542 | $ | — | $ | 21,542 | ||||||||||||||
Other comprehensive income (loss) | ||||||||||||||||||||
Pre-tax | $ | 111,756 | $ | (36,553) | $ | 75,203 | ||||||||||||||
Tax effect | (13,740) | — | (13,740) | |||||||||||||||||
Other comprehensive income (loss) | $ | 98,016 | $ | (36,553) | $ | 61,463 | ||||||||||||||
As of and for the three months ended September 30, 2020 | ||||||||||||||||||||
Changes in AOCI | ||||||||||||||||||||
Beginning of period | $ | 209,210 | $ | (458,560) | $ | (249,350) | ||||||||||||||
Other comprehensive income before reclassifications | 39,488 | 40,194 | 79,682 | |||||||||||||||||
Amounts reclassified from AOCI | (1,215) | — | (1,215) | |||||||||||||||||
Other comprehensive income | 38,273 | 40,194 | 78,467 | |||||||||||||||||
Unrealized investment gain related to noncontrolling interest | (3) | — | (3) | |||||||||||||||||
Ending balance | $ | 247,480 | $ | (418,366) | $ | (170,886) | ||||||||||||||
Amounts reclassified from AOCI | ||||||||||||||||||||
Pre-tax | $ | (1,538) | (1) | $ | — | $ | (1,538) | |||||||||||||
Tax effect | 323 | (2) | — | 323 | ||||||||||||||||
After-tax amounts reclassified | $ | (1,215) | $ | — | $ | (1,215) | ||||||||||||||
Other comprehensive income | ||||||||||||||||||||
Pre-tax | $ | 48,980 | $ | 40,194 | $ | 89,174 | ||||||||||||||
Tax effect | (10,707) | — | (10,707) | |||||||||||||||||
Other comprehensive income | $ | 38,273 | $ | 40,194 | $ | 78,467 |
As of and for the nine months ended September 30, 2019 | ||||||||||||||||||||
Changes in AOCI | ||||||||||||||||||||
Beginning of period | $ | (91,491) | $ | (418,979) | $ | (510,470) | ||||||||||||||
Other comprehensive income (loss) before reclassifications | 218,592 | (31,414) | 187,178 | |||||||||||||||||
Amounts reclassified from AOCI | 1,087 | — | 1,087 | |||||||||||||||||
Other comprehensive income (loss) | 219,679 | (31,414) | 188,265 | |||||||||||||||||
Unrealized investment loss related to noncontrolling interest | 105 | — | 105 | |||||||||||||||||
End of period | $ | 128,293 | $ | (450,393) | $ | (322,100) | ||||||||||||||
Amounts reclassified from AOCI | ||||||||||||||||||||
Pre-tax | $ | 1,376 | (1) | $ | — | $ | 1,376 | |||||||||||||
Tax effect | (289) | (2) | — | (289) | ||||||||||||||||
After-tax amounts reclassified | $ | 1,087 | $ | — | $ | 1,087 | ||||||||||||||
Other comprehensive income (loss) | ||||||||||||||||||||
Pre-tax | $ | 287,739 | $ | (31,414) | $ | 256,325 | ||||||||||||||
Tax effect | (68,060) | — | (68,060) | |||||||||||||||||
Other comprehensive income (loss) | $ | 219,679 | $ | (31,414) | $ | 188,265 | ||||||||||||||
As of and for the three months ended September 30, 2019 | ||||||||||||||||||||
Changes in AOCI | ||||||||||||||||||||
Beginning of period | $ | 152,915 | $ | (413,711) | $ | (260,796) | ||||||||||||||
Other comprehensive loss before reclassifications | (27,023) | (36,682) | (63,705) | |||||||||||||||||
Amounts reclassified from AOCI | 2,278 | — | 2,278 | |||||||||||||||||
Other comprehensive loss | (24,745) | (36,682) | (61,427) | |||||||||||||||||
Unrealized investment loss related to noncontrolling interest | 123 | — | 123 | |||||||||||||||||
Ending balance | $ | 128,293 | $ | (450,393) | $ | (322,100) | ||||||||||||||
Amounts reclassified from AOCI | ||||||||||||||||||||
Pre-tax | $ | 2,884 | (1) | $ | — | $ | 2,884 | |||||||||||||
Tax effect | (606) | (2) | — | (606) | ||||||||||||||||
After-tax amounts reclassified | $ | 2,278 | $ | — | $ | 2,278 | ||||||||||||||
Other comprehensive loss | ||||||||||||||||||||
Pre-tax | $ | (28,592) | $ | (36,682) | $ | (65,274) | ||||||||||||||
Tax effect | 3,847 | — | 3,847 | |||||||||||||||||
Other comprehensive loss | $ | (24,745) | $ | (36,682) | $ | (61,427) |
(In thousands) |
Amortized
Cost |
Allowance for Expected Credit Losses (1) | Gross Unrealized |
Fair
Value |
Carrying
Value |
||||||||||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||||||||||||
September 30, 2020 | |||||||||||||||||||||||||||||||||||
Held to maturity: | |||||||||||||||||||||||||||||||||||
State and municipal | $ | 66,532 | $ | (871) | $ | 13,406 | $ | — | $ | 79,067 | $ | 65,661 | |||||||||||||||||||||||
Residential mortgage-backed | 6,856 | — | 1,109 | — | 7,965 | 6,856 | |||||||||||||||||||||||||||||
Total held to maturity | 73,388 | (871) | 14,515 | — | 87,032 | 72,517 | |||||||||||||||||||||||||||||
Available for sale: | |||||||||||||||||||||||||||||||||||
U.S. government and government agency | 676,493 | — | 21,080 | (141) | 697,432 | 697,432 | |||||||||||||||||||||||||||||
State and municipal: | |||||||||||||||||||||||||||||||||||
Special revenue | 2,195,851 | — | 93,278 | (2,455) | 2,286,674 | 2,286,674 | |||||||||||||||||||||||||||||
State general obligation | 356,321 | — | 31,586 | — | 387,907 | 387,907 | |||||||||||||||||||||||||||||
Pre-refunded | 257,570 | — | 22,521 | (149) | 279,942 | 279,942 | |||||||||||||||||||||||||||||
Corporate backed | 223,508 | — | 9,641 | (549) | 232,600 | 232,600 | |||||||||||||||||||||||||||||
Local general obligation | 396,831 | — | 41,975 | (534) | 438,272 | 438,272 | |||||||||||||||||||||||||||||
Total state and municipal | 3,430,081 | — | 199,001 | (3,687) | 3,625,395 | 3,625,395 | |||||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||||||||
Residential | 848,878 | — | 29,989 | (2,513) | 876,354 | 876,354 | |||||||||||||||||||||||||||||
Commercial | 199,217 | — | 7,168 | (360) | 206,025 | 206,025 | |||||||||||||||||||||||||||||
Total mortgage-backed securities | 1,048,095 | — | 37,157 | (2,873) | 1,082,379 | 1,082,379 | |||||||||||||||||||||||||||||
Asset-backed | 3,347,867 | — | 11,665 | (53,093) | 3,306,439 | 3,306,439 | |||||||||||||||||||||||||||||
Corporate: | |||||||||||||||||||||||||||||||||||
Industrial | 2,240,914 | (606) | 104,694 | (18,404) | 2,326,598 | 2,326,598 | |||||||||||||||||||||||||||||
Financial | 1,471,997 | — | 55,706 | (3,067) | 1,524,636 | 1,524,636 | |||||||||||||||||||||||||||||
Utilities | 325,809 | — | 30,270 | (460) | 355,619 | 355,619 | |||||||||||||||||||||||||||||
Other | 32,262 | — | 445 | (20) | 32,687 | 32,687 | |||||||||||||||||||||||||||||
Total corporate | 4,070,982 | (606) | 191,115 | (21,951) | 4,239,540 | 4,239,540 | |||||||||||||||||||||||||||||
Foreign government | 889,358 | (1,090) | 26,626 | (45,550) | 869,344 | 869,344 | |||||||||||||||||||||||||||||
Total available for sale | 13,462,876 | (1,696) | 486,644 | (127,295) | 13,820,529 | 13,820,529 | |||||||||||||||||||||||||||||
Total investments in fixed maturity securities | $ | 13,536,264 | $ | (2,567) | $ | 501,159 | $ | (127,295) | $ | 13,907,561 | $ | 13,893,046 |
(In thousands) |
Amortized
Cost |
Gross Unrealized |
Fair
Value |
Carrying
Value |
|||||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||
Held to maturity: | |||||||||||||||||||||||||||||
State and municipal | $ | 70,312 | $ | 13,000 | $ | — | $ | 83,312 | $ | 70,312 | |||||||||||||||||||
Residential mortgage-backed | 8,371 | 994 | — | 9,365 | 8,371 | ||||||||||||||||||||||||
Total held to maturity | 78,683 | 13,994 | — | 92,677 | 78,683 | ||||||||||||||||||||||||
Available for sale: | |||||||||||||||||||||||||||||
U.S. government and government agency | 775,157 | 13,249 | (1,475) | 786,931 | 786,931 | ||||||||||||||||||||||||
State and municipal: | |||||||||||||||||||||||||||||
Special revenue | 2,343,209 | 64,586 | (4,152) | 2,403,643 | 2,403,643 | ||||||||||||||||||||||||
State general obligation | 359,298 | 22,074 | (97) | 381,275 | 381,275 | ||||||||||||||||||||||||
Pre-refunded | 364,571 | 20,342 | (128) | 384,785 | 384,785 | ||||||||||||||||||||||||
Corporate backed | 255,230 | 7,232 | (903) | 261,559 | 261,559 | ||||||||||||||||||||||||
Local general obligation | 432,333 | 32,684 | (647) | 464,370 | 464,370 | ||||||||||||||||||||||||
Total state and municipal | 3,754,641 | 146,918 | (5,927) | 3,895,632 | 3,895,632 | ||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||
Residential | 1,298,145 | 23,230 | (5,155) | 1,316,220 | 1,316,220 | ||||||||||||||||||||||||
Commercial | 304,506 | 5,214 | (346) | 309,374 | 309,374 | ||||||||||||||||||||||||
Total mortgage-backed securities | 1,602,651 | 28,444 | (5,501) | 1,625,594 | 1,625,594 | ||||||||||||||||||||||||
Asset-backed | 2,802,588 | 9,532 | (21,490) | 2,790,630 | 2,790,630 | ||||||||||||||||||||||||
Corporate: | |||||||||||||||||||||||||||||
Industrial | 2,260,073 | 72,900 | (3,800) | 2,329,173 | 2,329,173 | ||||||||||||||||||||||||
Financial | 1,447,589 | 37,681 | (4,118) | 1,481,152 | 1,481,152 | ||||||||||||||||||||||||
Utilities | 325,762 | 15,281 | (402) | 340,641 | 340,641 | ||||||||||||||||||||||||
Other | 5,219 | 230 | — | 5,449 | 5,449 | ||||||||||||||||||||||||
Total corporate | 4,038,643 | 126,092 | (8,320) | 4,156,415 | 4,156,415 | ||||||||||||||||||||||||
Foreign government | 924,284 | 16,465 | (93,673) | 847,076 | 847,076 | ||||||||||||||||||||||||
Total available for sale | 13,897,964 | 340,700 | (136,386) | 14,102,278 | 14,102,278 | ||||||||||||||||||||||||
Total investments in fixed maturity securities | $ | 13,976,647 | $ | 354,694 | $ | (136,386) | $ | 14,194,955 | $ | 14,180,961 |
State and Municipal | |||||
(In thousands) | |||||
Allowance for expected credit losses at January 1, 2020 | $ | — | |||
Cumulative effect adjustment resulting from changes in accounting principles | 69 | ||||
Provision for expected credit losses | 802 | ||||
Allowance for expected credit losses at September 30, 2020
|
$ | 871 |
Foreign Government | Corporate | Total | |||||||||||||||
(In thousands) | |||||||||||||||||
Allowance for expected credit losses at January 1, 2020 | $ | — | $ | — | $ | — | |||||||||||
Cumulative effect adjustment resulting from changes in accounting principles | 35,645 | — | 35,645 | ||||||||||||||
Expected credit losses on securities for which credit losses were not previously recorded | 12,494 | 7,058 | 19,552 | ||||||||||||||
Expected credit losses on securities for which credit losses were previously recorded | 295 | (3,767) | (3,472) | ||||||||||||||
Reduction due to disposals | (47,344) | (2,685) | (50,029) | ||||||||||||||
Allowance for expected credit losses at September 30, 2020
|
$ | 1,090 | $ | 606 | $ | 1,696 |
Foreign Government | Corporate | Total | |||||||||||||||
(In thousands) | |||||||||||||||||
Allowance for expected credit losses at July 1, 2020 | $ | 44,769 | $ | 724 | $ | 45,493 | |||||||||||
Expected credit losses on securities for which credit losses were not previously recorded | — | 261 | 261 | ||||||||||||||
Expected credit losses on securities for which credit losses were previously recorded | (252) | (9) | (261) | ||||||||||||||
Reduction due to disposals | (43,427) | (370) | (43,797) | ||||||||||||||
Allowance for expected credit losses at September 30, 2020
|
$ | 1,090 | $ | 606 | $ | 1,696 |
(In thousands) |
Amortized
Cost (1) |
Fair
Value |
|||||||||||||||||||||||||||||||||
Due in one year or less | $ | 1,372,865 | $ | 1,364,023 | |||||||||||||||||||||||||||||||
Due after one year through five years | 5,200,384 | 5,376,126 | |||||||||||||||||||||||||||||||||
Due after five years through ten years | 3,313,415 | 3,461,879 | |||||||||||||||||||||||||||||||||
Due after ten years | 2,593,778 | 2,615,189 | |||||||||||||||||||||||||||||||||
Mortgage-backed securities | 1,054,951 | 1,090,344 | |||||||||||||||||||||||||||||||||
Total | $ | 13,535,393 | $ | 13,907,561 |
(In thousands) | Cost | Gross Unrealized |
Fair
Value |
Carrying
Value |
|||||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||||||
September 30, 2020 | |||||||||||||||||||||||||||||
Common stocks | $ | 184,196 | $ | 8,042 | $ | (31,380) | $ | 160,858 | $ | 160,858 | |||||||||||||||||||
Preferred stocks | 177,444 | 100,004 | (3,003) | 274,445 | 274,445 | ||||||||||||||||||||||||
Total | $ | 361,640 | $ | 108,046 | $ | (34,383) | $ | 435,303 | $ | 435,303 | |||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||
Common stocks | $ | 175,928 | $ | 16,967 | $ | (26,090) | $ | 166,805 | $ | 166,805 | |||||||||||||||||||
Preferred stocks | 169,171 | 148,243 | (3,599) | 313,815 | 313,815 | ||||||||||||||||||||||||
Total | $ | 345,099 | $ | 165,210 | $ | (29,689) | $ | 480,620 | $ | 480,620 |
For the Three Months
Ended September 30, |
For the Nine Months
Ended September 30, |
||||||||||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Investment income earned on: | |||||||||||||||||||||||
Fixed maturity securities, including cash and cash equivalents and loans receivable | $ | 97,080 | $ | 125,957 | $ | 330,941 | $ | 386,978 | |||||||||||||||
Investment funds | 18,235 | 19,033 | 1,260 | 77,284 | |||||||||||||||||||
Arbitrage trading account | 19,543 | 8,400 | 51,985 | 26,184 | |||||||||||||||||||
Real estate
|
7,666 | 7,987 | 18,807 | 17,468 | |||||||||||||||||||
Equity securities
|
1,907 | 1,392 | 6,194 | 3,984 | |||||||||||||||||||
Gross investment income | 144,430 | 162,769 | 409,187 | 511,898 | |||||||||||||||||||
Investment expense | (1,780) | (1,077) | (6,343) | (3,619) | |||||||||||||||||||
Net investment income | $ | 142,650 | $ | 161,692 | $ | 402,844 | $ | 508,279 |
Carrying Value as of |
Income (Loss) from
Investment Funds |
||||||||||||||||||||||
September 30, | December 31, |
For the Nine Months
Ended September 30, |
|||||||||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Real estate | $ | 312,181 | $ | 412,275 | $ | 2,140 | $ | 17,279 | |||||||||||||||
Financial services | 351,695 | 280,705 | 3,303 | 36,516 | |||||||||||||||||||
Energy | 136,250 | 156,869 | (13,689) | (10,342) | |||||||||||||||||||
Transportation | 144,265 | 147,034 | (3,521) | 12,222 | |||||||||||||||||||
Other funds | 219,316 | 216,652 | 13,027 | 21,609 | |||||||||||||||||||
Total | $ | 1,163,707 | $ | 1,213,535 | $ | 1,260 | $ | 77,284 |
Carrying Value | |||||||||||
September 30, | December 31, | ||||||||||
(In thousands) | 2020 | 2019 | |||||||||
Properties in operation | $ | 1,651,343 | $ | 1,351,249 | |||||||
Properties under development | 455,131 | 754,701 | |||||||||
Total | $ | 2,106,474 | $ | 2,105,950 |
(In thousands) |
September 30,
2020 |
December 31,
2019 |
|||||||||
Amortized cost (net of allowance for expected credit losses): | |||||||||||
Real estate loans | $ | 52,089 | $ | 58,541 | |||||||
Commercial loans | 32,682 | 33,258 | |||||||||
Total | $ | 84,771 | $ | 91,799 | |||||||
Fair value: | |||||||||||
Real estate loans | $ | 53,848 | $ | 59,853 | |||||||
Commercial loans | 32,682 | 34,760 | |||||||||
Total | $ | 86,530 | $ | 94,613 | |||||||
Real Estate Loans | Commercial Loans | Total | |||||||||||||||
(In thousands) | |||||||||||||||||
Allowance for expected credit losses at January 1, 2020 | $ | 1,502 | $ | 644 | $ | 2,146 | |||||||||||
Cumulative effect adjustment resulting from changes in accounting principles | (905) | 548 | (357) | ||||||||||||||
Provision for expected credit losses | 1,162 | 2,892 | 4,054 | ||||||||||||||
Allowance for expected credit losses at September 30, 2020
|
$ | 1,759 | $ | 4,084 | $ | 5,843 |
Real Estate Loans | Commercial Loans | Total | |||||||||||||||
(In thousands) | |||||||||||||||||
Allowance for expected credit losses at July 1, 2020 | $ | 4,318 | $ | 4,401 | $ | 8,719 | |||||||||||
Provision for expected credit losses | (2,559) | (317) | (2,876) | ||||||||||||||
Allowance for expected credit losses at September 30, 2020
|
$ | 1,759 | $ | 4,084 | $ | 5,843 |
For the Three Months
Ended September 30, |
For the Nine Months
Ended September 30, |
||||||||||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Net investment gains (losses): | |||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||
Gains | $ | 3,811 | $ | 2,100 | $ | 23,586 | $ | 10,503 | |||||||||||||||
Losses | (39,162) | (4,984) | (53,243) | (11,879) | |||||||||||||||||||
Equity securities (1): | |||||||||||||||||||||||
Net realized (losses) gains on investment sales | (176) | (11) | 5,551 | 23,328 | |||||||||||||||||||
Change in unrealized gains (losses) | 30,693 | 4,226 | (61,859) | 115,722 | |||||||||||||||||||
Investment funds | 203 | (456) | 31,299 | (398) | |||||||||||||||||||
Real estate | 3,841 | 417 | (3,983) | 6,184 | |||||||||||||||||||
Loans receivable | — | — | — | (970) | |||||||||||||||||||
Other | (6,982) | 173 | (30,755) | 1,201 | |||||||||||||||||||
Net realized and unrealized (losses) gains on investments in earnings before allowance for expected credit losses | (7,772) | 1,465 | (89,404) | 143,691 | |||||||||||||||||||
Change in allowance for expected credit losses on investments (2): | |||||||||||||||||||||||
Fixed maturity securities | 43,874 | — | 33,147 | — | |||||||||||||||||||
Loans receivable | 2,876 | — | (4,054) | — | |||||||||||||||||||
Change in allowance for expected credit losses on investments | 46,750 | — | 29,093 | — | |||||||||||||||||||
Net investment gains (losses) | 38,978 | 1,465 | (60,311) | 143,691 | |||||||||||||||||||
Income tax (expense) benefit | (8,855) | (308) | 13,622 | (30,175) | |||||||||||||||||||
After-tax net investment gains (losses) | $ | 30,123 | $ | 1,157 | $ | (46,689) | $ | 113,516 |
Change in unrealized investment gains (losses) on available for sale securities: | |||||||||||||||||||||||
Fixed maturity securities without allowance for expected credit losses | $ | 46,164 | $ | (12,178) | $ | 89,363 | $ | 308,945 | |||||||||||||||
Fixed maturity securities with allowance for expected credit losses | 5,036 | 384 | 30,027 | 396 | |||||||||||||||||||
Investment funds | (198) | (2,689) | (3,632) | 4,863 | |||||||||||||||||||
Other | (2,022) | (14,109) | (4,002) | (26,465) | |||||||||||||||||||
Total change in unrealized investment gains (losses) | 48,980 | (28,592) | 111,756 | 287,739 | |||||||||||||||||||
Income tax (expense) benefit | (10,707) | 3,847 | (13,740) | (68,060) | |||||||||||||||||||
Noncontrolling interests | (3) | 123 | (2) | 105 | |||||||||||||||||||
After-tax change in unrealized investment gains (losses) of available for sale securities | $ | 38,270 | $ | (24,622) | $ | 98,014 | $ | 219,784 |
Less Than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||||||||||||||
(In thousands) |
Fair
Value |
Gross
Unrealized Losses |
Fair
Value |
Gross
Unrealized Losses |
Fair
Value |
Gross
Unrealized Losses |
|||||||||||||||||||||||||||||
September 30, 2020 | |||||||||||||||||||||||||||||||||||
U.S. government and government agency | $ | 115,161 | $ | 141 | $ | 18 | $ | — | $ | 115,179 | $ | 141 | |||||||||||||||||||||||
State and municipal | 204,907 | 2,809 | 24,290 | 878 | 229,197 | 3,687 | |||||||||||||||||||||||||||||
Mortgage-backed securities | 116,958 | 2,673 | 28,578 | 200 | 145,536 | 2,873 | |||||||||||||||||||||||||||||
Asset-backed securities | 1,443,178 | 15,094 | 665,759 | 37,999 | 2,108,937 | 53,093 | |||||||||||||||||||||||||||||
Corporate | 636,250 | 19,158 | 40,224 | 2,793 | 676,474 | 21,951 | |||||||||||||||||||||||||||||
Foreign government | 127,441 | 25,088 | 5,706 | 20,462 | 133,147 | 45,550 | |||||||||||||||||||||||||||||
Fixed maturity securities | $ | 2,643,895 | $ | 64,963 | $ | 764,575 | $ | 62,332 | $ | 3,408,470 | $ | 127,295 | |||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||||||||
U.S. government and government agency | $ | 83,837 | $ | 618 | $ | 53,089 | $ | 857 | $ | 136,926 | $ | 1,475 | |||||||||||||||||||||||
State and municipal | 365,184 | 4,245 | 127,210 | 1,682 | 492,394 | 5,927 | |||||||||||||||||||||||||||||
Mortgage-backed securities | 301,358 | 2,281 | 180,148 | 3,220 | 481,506 | 5,501 | |||||||||||||||||||||||||||||
Asset-backed securities | 755,259 | 2,307 | 774,508 | 19,183 | 1,529,767 | 21,490 | |||||||||||||||||||||||||||||
Corporate | 307,367 | 3,148 | 121,470 | 5,172 | 428,837 | 8,320 | |||||||||||||||||||||||||||||
Foreign government | 164,536 | 32,028 | 107,266 | 61,645 | 271,802 | 93,673 | |||||||||||||||||||||||||||||
Fixed maturity securities | $ | 1,977,541 | $ | 44,627 | $ | 1,363,691 | $ | 91,759 | $ | 3,341,232 | $ | 136,386 | |||||||||||||||||||||||
($ in thousands) |
Number of
Securities |
Aggregate
Fair Value |
Gross
Unrealized Loss |
||||||||||||||
Foreign government | 22 | $ | 91,413 | $ | 45,247 | ||||||||||||
Corporate | 13 | 28,816 | 6,343 | ||||||||||||||
Mortgage-backed securities | 8 | 1,659 | 34 | ||||||||||||||
Total | 43 | $ | 121,888 | $ | 51,624 |
(In thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
September 30, 2020 | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Fixed maturity securities available for sale: | |||||||||||||||||||||||
U.S. government and government agency | $ | 697,432 | $ | — | $ | 697,432 | $ | — | |||||||||||||||
State and municipal | 3,625,395 | — | 3,625,395 | — | |||||||||||||||||||
Mortgage-backed securities | 1,082,379 | — | 1,082,379 | — | |||||||||||||||||||
Asset-backed securities | 3,306,439 | — | 3,306,439 | — | |||||||||||||||||||
Corporate | 4,239,540 | — | 4,239,540 | — | |||||||||||||||||||
Foreign government | 869,344 | — | 869,344 | — | |||||||||||||||||||
Total fixed maturity securities available for sale | 13,820,529 | — | 13,820,529 | — | |||||||||||||||||||
Equity securities: | |||||||||||||||||||||||
Common stocks | 160,858 | 152,508 | — | 8,350 | |||||||||||||||||||
Preferred stocks | 274,445 | — | 265,117 | 9,328 | |||||||||||||||||||
Total equity securities | 435,303 | 152,508 | 265,117 | 17,678 | |||||||||||||||||||
Arbitrage trading account | 595,727 | 307,915 | 287,812 | — | |||||||||||||||||||
Total | $ | 14,851,559 | $ | 460,423 | $ | 14,373,458 | $ | 17,678 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||
Trading account securities sold but not yet purchased | $ | 19,254 | $ | 19,254 | $ | — | $ | — | |||||||||||||||
December 31, 2019 | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Fixed maturity securities available for sale: | |||||||||||||||||||||||
U.S. government and government agency | $ | 786,931 | $ | — | $ | 786,931 | $ | — | |||||||||||||||
State and municipal | 3,895,632 | — | 3,895,632 | — | |||||||||||||||||||
Mortgage-backed securities | 1,625,594 | — | 1,625,594 | — | |||||||||||||||||||
Asset-backed securities | 2,790,630 | — | 2,790,630 | — | |||||||||||||||||||
Corporate | 4,156,415 | — | 4,156,415 | — | |||||||||||||||||||
Foreign government | 847,076 | — | 847,076 | — | |||||||||||||||||||
Total fixed maturity securities available for sale | 14,102,278 | — | 14,102,278 | — | |||||||||||||||||||
Equity securities: | |||||||||||||||||||||||
Common stocks | 166,805 | 157,752 | — | 9,053 | |||||||||||||||||||
Preferred stocks | 313,815 | — | 307,310 | 6,505 | |||||||||||||||||||
Total equity securities | 480,620 | 157,752 | 307,310 | 15,558 | |||||||||||||||||||
Arbitrage trading account | 400,809 | 381,061 | 19,748 | — | |||||||||||||||||||
Total | $ | 14,983,707 | $ | 538,813 | $ | 14,429,336 | $ | 15,558 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||
Trading account securities sold but not yet purchased | $ | 36,143 | $ | 36,143 | $ | — | $ | — |
Gains (Losses) Included in:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) |
Beginning
Balance |
Earnings (Losses) |
Other
Comprehensive Income |
Impairments | Purchases | (Sales) | Paydowns / Maturities | Transfers In / (Out) |
Ending
Balance |
||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stocks | $ | 9,053 | $ | 363 | $ | — | $ | — | $ | — | $ | (1,066) | $ | — | $ | — | $ | 8,350 | |||||||||||||||||||||||||||||||||||
Preferred stocks | 6,505 | (177) | — | — | 3,000 | — | — | — | 9,328 | ||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 15,558 | $ | 186 | $ | — | $ | — | $ | 3,000 | $ | (1,066) | $ | — | $ | — | $ | 17,678 | |||||||||||||||||||||||||||||||||||
Year Ended
December 31, 2019 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities securities available for sale: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | $ | 99 | $ | (26) | $ | 61 | $ | — | $ | — | $ | (134) | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||||
Total | 99 | (26) | 61 | — | — | (134) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stocks | 8,596 | 2,005 | — | — | (1,548) | — | — | 9,053 | |||||||||||||||||||||||||||||||||||||||||||||
Preferred stocks | 3,945 | (42) | — | — | 2,602 | — | — | — | 6,505 | ||||||||||||||||||||||||||||||||||||||||||||
Total | 12,541 | 1,963 | — | — | 2,602 | (1,548) | — | — | 15,558 | ||||||||||||||||||||||||||||||||||||||||||||
Arbitrage trading account | 17,308 | (8,731) | — | — | 14,767 | (38,233) | — | 14,889 | — | ||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 29,948 | $ | (6,794) | $ | 61 | $ | — | $ | 17,369 | $ | (39,915) | $ | — | $ | 14,889 | $ | 15,558 | |||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Trading account securities sold but not yet purchased | $ | 793 | $ | 133 | $ | — | $ | — | $ | 7,609 | $ | (8,535) | $ | — | $ | — | $ | — |
September 30, | |||||||||||||||||
(In thousands) | 2020 | 2019 | |||||||||||||||
Net reserves at beginning of period | $ | 10,697,998 | $ | 10,248,883 | |||||||||||||
Cumulative effect adjustment resulting from changes in accounting principles | 5,927 | — | |||||||||||||||
Restated net reserves at beginning of period | 10,703,925 | 10,248,883 | |||||||||||||||
Net provision for losses and loss expenses: | |||||||||||||||||
Claims occurring during the current year (1) | 3,328,827 | 3,007,364 | |||||||||||||||
Increase in estimates for claims occurring in prior years (2) (3) | 849 | 22,340 | |||||||||||||||
Loss reserve discount accretion | 27,335 | 29,246 | |||||||||||||||
Total | 3,357,011 | 3,058,950 | |||||||||||||||
Net payments for claims: | |||||||||||||||||
Current year | 570,924 | 767,945 | |||||||||||||||
Prior years | 2,077,945 | 1,907,979 | |||||||||||||||
Total | 2,648,869 | 2,675,924 | |||||||||||||||
Foreign currency translation | (21,003) | (49,455) | |||||||||||||||
Net reserves at end of period | 11,391,064 | 10,582,454 | |||||||||||||||
Ceded reserves at end of period | 2,068,295 | 1,814,501 | |||||||||||||||
Gross reserves at end of period | $ | 13,459,359 | $ | 12,396,955 |
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||
(In thousands) | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||
Assets: | |||||||||||||||||||||||
Fixed maturity securities | $ | 13,893,046 | $ | 13,907,561 | $ | 14,180,961 | $ | 14,194,955 | |||||||||||||||
Equity securities | 435,303 | 435,303 | 480,620 | 480,620 | |||||||||||||||||||
Arbitrage trading account | 595,727 | 595,727 | 400,809 | 400,809 | |||||||||||||||||||
Loans receivable | 84,771 | 86,530 | 91,799 | 94,613 | |||||||||||||||||||
Cash and cash equivalents | 2,571,447 | 2,571,447 | 1,023,710 | 1,023,710 | |||||||||||||||||||
Trading account receivables from brokers and clearing organizations | 252,223 | 252,223 | 423,543 | 423,543 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Due to broker | 58,893 | 58,893 | 27,116 | 27,116 | |||||||||||||||||||
Trading account securities sold but not yet purchased | 19,254 | 19,254 | 36,143 | 36,143 | |||||||||||||||||||
Subordinated debentures | 1,443,736 | 1,530,810 | 1,198,704 | 1,274,088 | |||||||||||||||||||
Senior notes and other debt | 1,629,077 | 1,898,483 | 1,427,575 | 1,582,290 |
For the Three Months
Ended September 30, |
For the Nine Months
Ended September 30, |
||||||||||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Written premiums: | |||||||||||||||||||||||
Direct | $ | 2,018,530 | $ | 1,853,881 | $ | 5,875,379 | $ | 5,566,728 | |||||||||||||||
Assumed | 244,015 | 239,169 | 750,784 | 662,412 | |||||||||||||||||||
Ceded | (383,229) | (343,144) | (1,161,183) | (1,026,169) | |||||||||||||||||||
Total net premiums written | $ | 1,879,316 | $ | 1,749,906 | $ | 5,464,980 | $ | 5,202,971 | |||||||||||||||
Earned premiums: | |||||||||||||||||||||||
Direct | $ | 1,877,234 | $ | 1,797,726 | $ | 5,511,791 | $ | 5,294,773 | |||||||||||||||
Assumed | 237,815 | 209,094 | 699,025 | 595,946 | |||||||||||||||||||
Ceded | (366,128) | (330,010) | (1,093,563) | (974,212) | |||||||||||||||||||
Total net premiums earned | $ | 1,748,921 | $ | 1,676,810 | $ | 5,117,253 | $ | 4,916,507 | |||||||||||||||
Ceded losses and loss expenses incurred | $ | 209,706 | $ | 172,009 | $ | 677,761 | $ | 584,323 | |||||||||||||||
Ceded commissions earned | $ | 89,104 | $ | 76,001 | $ | 255,742 | $ | 220,110 |
(In thousands) | |||||
Allowance for expected credit losses at January 1, 2020 | $ | 19,823 | |||
Cumulative effect adjustment resulting from changes in accounting principles | 1,270 | ||||
Provision for expected credit losses | 1,940 | ||||
Allowance for expected credit losses at September 30, 2020
|
$ | 23,033 |
(In thousands) | |||||
Allowance for expected credit losses at July 1, 2020 | $ | 22,106 | |||
Provision for expected credit losses | 927 | ||||
Allowance for expected credit losses at September 30, 2020
|
$ | 23,033 |
(In thousands) | |||||
Allowance for expected credit losses at July 1, 2020 | $ | 7,175 | |||
Provision for expected credit losses | 566 | ||||
Allowance for expected credit losses at September 30, 2020
|
$ | 7,741 |
($ in thousands)
|
Units | Fair Value | |||||||||
2020 | 953,519 | $ | 59,683 | ||||||||
2019 | 839,263 | $ | 59,435 |
For the Three Months Ended
September 30, |
For the Nine Months Ended September 30, | ||||||||||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Leases: | |||||||||||||||||||||||
Lease cost | $ | 11,016 | $ | 10,734 | $ | 33,130 | $ | 32,969 | |||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities reported in operating cash flows | $ | 11,560 | $ | 11,241 | $ | 33,869 | $ | 34,030 | |||||||||||||||
Right-of-use assets obtained in exchange for new lease liabilities | $ | 1,344 | $ | 23,211 | $ | 5,639 | $ | 31,095 |
As of September 30, | |||||||||||
($ in thousands) | 2020 | 2019 | |||||||||
Right-of-use assets | $ | 172,473 | $ | 194,553 | |||||||
Lease liabilities | $ | 211,808 | $ | 226,291 | |||||||
Weighted-average remaining lease term | 6.7 years | 7.2 years | |||||||||
Weighted-average discount rate | 5.93 | % | 5.97 | % |
(In thousands) | September 30, 2020 | |||||||||||||
Contractual Maturities: | ||||||||||||||
2020 | $ | 12,162 | ||||||||||||
2021 | 46,835 | |||||||||||||
2022 | 41,637 | |||||||||||||
2023 | 37,737 | |||||||||||||
2024 | 31,439 | |||||||||||||
Thereafter | 78,806 | |||||||||||||
Total undiscounted future minimum lease payments | 248,616 | |||||||||||||
Less: Discount impact | (36,808) | |||||||||||||
Total lease liability | $ | 211,808 |
Revenues | |||||||||||||||||||||||||||||||||||
(In thousands) |
Earned
Premiums (1) |
Investment
Income |
Other | Total (2) | Pre-Tax Income (Loss) | Net Income (Loss) to Common Stockholders | |||||||||||||||||||||||||||||
Three months ended September 30, 2020 | |||||||||||||||||||||||||||||||||||
Insurance | $ | 1,531,093 | $ | 87,828 | $ | 9,463 | $ | 1,628,384 | $ | 178,971 | $ | 130,266 | |||||||||||||||||||||||
Reinsurance & Monoline Excess | 217,828 | 40,306 | — | 258,134 | 61,532 | 49,070 | |||||||||||||||||||||||||||||
Corporate, other and eliminations (3) | — | 14,516 | 99,807 | 114,323 | (73,067) | (57,781) | |||||||||||||||||||||||||||||
Net investment gains | — | — | 38,978 | 38,978 | 38,978 | 30,123 | |||||||||||||||||||||||||||||
Total | $ | 1,748,921 | $ | 142,650 | $ | 148,248 | $ | 2,039,819 | $ | 206,414 | $ | 151,678 | |||||||||||||||||||||||
Three months ended September 30, 2019 | |||||||||||||||||||||||||||||||||||
Insurance | $ | 1,493,854 | $ | 99,628 | $ | 11,611 | $ | 1,605,093 | $ | 202,390 | $ | 162,994 | |||||||||||||||||||||||
Reinsurance & Monoline Excess | 182,956 | 43,768 | — | 226,724 | 46,863 | 38,240 | |||||||||||||||||||||||||||||
Corporate, other and eliminations (3) | — | 18,296 | 114,138 | 132,434 | (47,736) | (37,184) | |||||||||||||||||||||||||||||
Net investment gains | — | — | 1,465 | 1,465 | 1,465 | 1,158 | |||||||||||||||||||||||||||||
Total | $ | 1,676,810 | $ | 161,692 | $ | 127,214 | $ | 1,965,716 | $ | 202,982 | $ | 165,208 | |||||||||||||||||||||||
Nine months ended September 30, 2020 | |||||||||||||||||||||||||||||||||||
Insurance | $ | 4,481,092 | $ | 255,392 | $ | 25,953 | $ | 4,762,437 | $ | 431,464 | $ | 315,733 | |||||||||||||||||||||||
Reinsurance & Monoline Excess | 636,161 | 101,477 | — | 737,638 | 110,611 | 88,947 | |||||||||||||||||||||||||||||
Corporate, other and eliminations (3) | — | 45,975 | 300,715 | 346,690 | (176,369) | (139,471) | |||||||||||||||||||||||||||||
Net investment losses | — | — | (60,311) | (60,311) | (60,311) | (46,689) | |||||||||||||||||||||||||||||
Total | $ | 5,117,253 | $ | 402,844 | $ | 266,357 | $ | 5,786,454 | $ | 305,395 | $ | 218,520 | |||||||||||||||||||||||
Nine months ended September 30, 2019 | |||||||||||||||||||||||||||||||||||
Insurance | $ | 4,396,071 | $ | 332,072 | $ | 38,542 | $ | 4,766,685 | $ | 612,777 | $ | 488,228 | |||||||||||||||||||||||
Reinsurance & Monoline Excess | 520,436 | 127,791 | — | 648,227 | 144,353 | 115,630 | |||||||||||||||||||||||||||||
Corporate, other and eliminations (3) | — | 48,416 | 319,103 | 367,519 | (194,664) | (154,736) | |||||||||||||||||||||||||||||
Net investment gains | — | — | 143,691 | 143,691 | 143,691 | 113,516 | |||||||||||||||||||||||||||||
Total | $ | 4,916,507 | $ | 508,279 | $ | 501,336 | $ | 5,926,122 | $ | 706,157 | $ | 562,638 |
(In thousands) |
September 30,
2020 |
December 31,
2019 |
||||||||||||
Insurance | $ | 21,060,144 | $ | 20,005,802 | ||||||||||
Reinsurance & Monoline Excess | 4,697,249 | 4,710,819 | ||||||||||||
Corporate, other and eliminations | 2,454,977 | 1,913,409 | ||||||||||||
Consolidated | $ | 28,212,370 | $ | 26,630,030 |
For the Three Months
Ended September 30, |
For the Nine Months
Ended September 30, |
||||||||||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Insurance: | |||||||||||||||||||||||
Other liability | $ | 561,595 | $ | 527,253 | $ | 1,653,189 | $ | 1,523,534 | |||||||||||||||
Short-tail lines (1) | 326,019 | 310,423 | 917,466 | 905,365 | |||||||||||||||||||
Workers' compensation | 271,802 | 321,872 | 852,101 | 979,059 | |||||||||||||||||||
Commercial automobile | 203,047 | 191,136 | 583,024 | 560,340 | |||||||||||||||||||
Professional liability | 168,630 | 143,170 | 475,312 | 427,773 | |||||||||||||||||||
Total Insurance | 1,531,093 | 1,493,854 | 4,481,092 | 4,396,071 | |||||||||||||||||||
Reinsurance & Monoline Excess: | |||||||||||||||||||||||
Casualty reinsurance | 130,186 | 106,532 | 383,375 | 292,471 | |||||||||||||||||||
Monoline excess (2) | 43,577 | 40,639 | 126,800 | 119,020 | |||||||||||||||||||
Property reinsurance | 44,065 | 35,785 | 125,986 | 108,945 | |||||||||||||||||||
Total Reinsurance & Monoline Excess | 217,828 | 182,956 | 636,161 | 520,436 | |||||||||||||||||||
Total | $ | 1,748,921 | $ | 1,676,810 | $ | 5,117,253 | $ | 4,916,507 |
(In thousands) | Frequency (+/-) | ||||||||||||||||
Severity (+/-) | 1% | 5% | 10% | ||||||||||||||
1% | $ | 81,566 | $ | 245,508 | $ | 450,437 | |||||||||||
5% | 245,508 | 415,944 | 628,988 | ||||||||||||||
10% | 450,437 | 628,988 | 852,178 |
(In thousands) |
September 30,
2020 |
December 31,
2019 |
|||||||||
Insurance | $ | 8,800,434 | $ | 8,193,381 | |||||||
Reinsurance & Monoline Excess | 2,590,630 | 2,504,617 | |||||||||
Net reserves for losses and loss expenses | 11,391,064 | 10,697,998 | |||||||||
Ceded reserves for losses and loss expenses | 2,068,295 | 1,885,251 | |||||||||
Gross reserves for losses and loss expenses | $ | 13,459,359 | $ | 12,583,249 |
(In thousands) |
Reported Case
Reserves |
Incurred But
Not Reported |
Total | ||||||||||||||
September 30, 2020 | |||||||||||||||||
Other liability | $ | 1,495,595 | $ | 2,754,905 | $ | 4,250,500 | |||||||||||
Workers’ compensation (1) | 956,982 | 905,652 | 1,862,634 | ||||||||||||||
Professional liability | 417,451 | 824,648 | 1,242,099 | ||||||||||||||
Commercial automobile | 427,154 | 355,200 | 782,354 | ||||||||||||||
Short-tail lines (2) | 303,236 | 359,611 | 662,847 | ||||||||||||||
Total Insurance | 3,600,418 | 5,200,016 | 8,800,434 | ||||||||||||||
Reinsurance & Monoline Excess (1) (3) | 1,454,609 | 1,136,021 | 2,590,630 | ||||||||||||||
Total | $ | 5,055,027 | $ | 6,336,037 | $ | 11,391,064 | |||||||||||
December 31, 2019 | |||||||||||||||||
Other liability | $ | 1,421,378 | $ | 2,522,957 | $ | 3,944,335 | |||||||||||
Workers’ compensation (1) | 918,619 | 964,102 | 1,882,721 | ||||||||||||||
Professional liability | 399,411 | 713,433 | 1,112,844 | ||||||||||||||
Commercial automobile | 412,036 | 300,339 | 712,375 | ||||||||||||||
Short-tail lines (2) | 271,192 | 269,914 | 541,106 | ||||||||||||||
Total Insurance | 3,422,636 | 4,770,745 | 8,193,381 | ||||||||||||||
Reinsurance & Monoline Excess (1) (3) | 1,469,363 | 1,035,254 | 2,504,617 | ||||||||||||||
Total | $ | 4,891,999 | $ | 5,805,999 | $ | 10,697,998 |
(In thousands) | 2020 | 2019 | |||||||||||||||
Net increase in prior year loss reserves | $ | (849) | $ | (22,340) | |||||||||||||
Increase in prior year earned premiums | 12,869 | 39,567 | |||||||||||||||
Net favorable prior year development | $ | 12,020 | $ | 17,227 |
($ in thousands) |
Number of
Securities |
Aggregate
Fair Value |
Gross Unrealized Loss | ||||||||||||||
Foreign government | 22 | $ | 91,413 | $ | 45,247 | ||||||||||||
Corporate | 13 | 28,816 | 6,343 | ||||||||||||||
Mortgage-backed securities | 8 | 1,659 | 34 | ||||||||||||||
Total | 43 | $ | 121,888 | $ | 51,624 |
($ in thousands) |
Carrying
Value |
Percent
of Total |
|||||||||
Pricing source: | |||||||||||
Independent pricing services | $ | 13,638,784 | 98.7 | % | |||||||
Syndicate manager | 42,383 | 0.3 | |||||||||
Directly by the Company based on: | |||||||||||
Observable data | 139,362 | 1.0 | |||||||||
Total | $ | 13,820,529 | 100.0 | % |
($ in thousands) | 2020 | 2019 | |||||||||
Insurance: | |||||||||||
Gross premiums written | $ | 5,841,328 | $ | 5,565,862 | |||||||
Net premiums written | 4,754,791 | 4,601,077 | |||||||||
Net premiums earned | 4,481,092 | 4,396,071 | |||||||||
Loss ratio | 65.5 | % | 62.3 | % | |||||||
Expense ratio | 30.6 | % | 31.3 | % | |||||||
GAAP combined ratio | 96.1 | % | 93.6 | % | |||||||
Reinsurance & Monoline Excess: | |||||||||||
Gross premiums written | $ | 784,835 | $ | 663,279 | |||||||
Net premiums written | 710,189 | 601,894 | |||||||||
Net premiums earned | 636,161 | 520,436 | |||||||||
Loss ratio | 66.5 | % | 61.6 | % | |||||||
Expense ratio | 32.1 | % | 35.2 | % | |||||||
GAAP combined ratio | 98.6 | % | 96.8 | % | |||||||
Consolidated: | |||||||||||
Gross premiums written | $ | 6,626,163 | $ | 6,229,141 | |||||||
Net premiums written | 5,464,980 | 5,202,971 | |||||||||
Net premiums earned | 5,117,253 | 4,916,507 | |||||||||
Loss ratio | 65.6 | % | 62.2 | % | |||||||
Expense ratio | 30.8 | % | 31.7 | % | |||||||
GAAP combined ratio | 96.4 | % | 93.9 | % |
(In thousands, except per share data) | 2020 | 2019 | |||||||||
Net income to common stockholders | $ | 218,520 | $ | 562,638 | |||||||
Weighted average diluted shares | 189,515 | 193,557 | |||||||||
Net income per diluted share | $ | 1.15 | $ | 2.91 |
Amount |
Average Annualized
Yield |
||||||||||||||||||||||
($ in thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Fixed maturity securities, including cash and cash equivalents and loans receivable | $ | 330,941 | $ | 386,978 | 2.9 | % | 3.5 | % | |||||||||||||||
Investment funds | 1,260 | 77,284 | 0.1 | 7.5 | |||||||||||||||||||
Arbitrage trading account | 51,985 | 26,184 | 12.4 | 8.0 | |||||||||||||||||||
Real estate | 18,807 | 17,468 | 1.2 | 1.1 | |||||||||||||||||||
Equity securities | 6,194 | 3,984 | 2.4 | 2.1 | |||||||||||||||||||
Gross investment income | 409,187 | 511,898 | 2.8 | 3.6 | |||||||||||||||||||
Investment expenses | (6,343) | (3,619) | — | — | |||||||||||||||||||
Total | $ | 402,844 | $ | 508,279 | 2.7 | % | 3.5 | % |
($ in thousands) | 2020 | 2019 | |||||||||
Policy acquisition and insurance operating expenses | $ | 1,574,507 | $ | 1,560,350 | |||||||
Insurance service expenses | 64,029 | 77,513 | |||||||||
Net foreign currency gains | (23,845) | (29,084) | |||||||||
Other costs and expenses | 138,451 | 152,182 | |||||||||
Total | $ | 1,753,142 | $ | 1,760,961 |
($ in thousands) | 2020 | 2019 | |||||||||
Insurance: | |||||||||||
Gross premiums written | $ | 1,981,816 | $ | 1,850,012 | |||||||
Net premiums written | 1,628,316 | 1,529,113 | |||||||||
Net premiums earned | 1,531,093 | 1,493,854 | |||||||||
Loss ratio | 64.4 | % | 61.8 | % | |||||||
Expense ratio | 29.7 | % | 31.2 | % | |||||||
GAAP combined ratio | 94.1 | % | 93.0 | % | |||||||
Reinsurance & Monoline Excess: | |||||||||||
Gross premiums written | $ | 280,729 | $ | 243,038 | |||||||
Net premiums written | 251,000 | 220,793 | |||||||||
Net premiums earned | 217,828 | 182,956 | |||||||||
Loss ratio | 59.1 | % | 64.6 | % | |||||||
Expense ratio | 31.2 | % | 33.7 | % | |||||||
GAAP combined ratio | 90.3 | % | 98.3 | % | |||||||
Consolidated: | |||||||||||
Gross premiums written | $ | 2,262,545 | $ | 2,093,050 | |||||||
Net premiums written | 1,879,316 | 1,749,906 | |||||||||
Net premiums earned | 1,748,921 | 1,676,810 | |||||||||
Loss ratio | 63.7 | % | 62.1 | % | |||||||
Expense ratio | 30.0 | % | 31.5 | % | |||||||
GAAP combined ratio | 93.7 | % | 93.6 | % | |||||||
(In thousands, except per share data) | 2020 | 2019 | |||||||||
Net income to common stockholders | $ | 151,678 | $ | 165,208 | |||||||
Weighted average diluted shares | 187,717 | 193,589 | |||||||||
Net income per diluted share | $ | 0.81 | $ | 0.85 |
Amount |
Average Annualized
Yield |
||||||||||||||||||||||
($ in thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Fixed maturity securities, including cash and cash equivalents and loans receivable | $ | 97,080 | $ | 125,957 | 2.5 | % | 3.4 | % | |||||||||||||||
Investment funds | 18,235 | 19,033 | 6.2 | 5.7 | |||||||||||||||||||
Arbitrage trading account | 19,543 | 8,400 | 13.8 | 7.1 | |||||||||||||||||||
Real estate | 7,666 | 7,987 | 1.5 | 1.5 | |||||||||||||||||||
Equity securities | 1,907 | 1,392 | 2.2 | 2.1 | |||||||||||||||||||
Gross investment income | 144,430 | 162,769 | 2.9 | 3.4 | |||||||||||||||||||
Investment expenses | (1,780) | (1,077) | — | — | |||||||||||||||||||
Total | $ | 142,650 | $ | 161,692 | 2.8 | % | 3.4 | % |
($ in thousands) | 2020 | 2019 | |||||||||
Policy acquisition and insurance operating expenses | $ | 523,349 | $ | 528,399 | |||||||
Insurance service expenses | 21,034 | 26,171 | |||||||||
Net foreign currency losses (gains) | 5,078 | (22,590) | |||||||||
Other costs and expenses | 44,508 | 49,065 | |||||||||
Total | $ | 593,969 | $ | 581,045 |
($ in thousands) |
Carrying
Value |
Percent
of Total |
|||||||||
Fixed maturity securities: | |||||||||||
U.S. government and government agencies | $ | 697,432 | 3.3 | % | |||||||
State and municipal: | |||||||||||
Special revenue | 2,305,308 | 11.0 | |||||||||
State general obligation | 429,652 | 2.1 | |||||||||
Pre-refunded | 285,224 | 1.4 | |||||||||
Corporate backed | 232,600 | 1.1 | |||||||||
Local general obligation | 438,272 | 2.1 | |||||||||
Total state and municipal | 3,691,056 | 17.7 | |||||||||
Mortgage-backed securities: | |||||||||||
Agency | 613,680 | 2.9 | |||||||||
Residential-Prime | 260,362 | 1.2 | |||||||||
Commercial | 206,025 | 1.0 | |||||||||
Residential-Alt A | 9,168 | — | |||||||||
Total mortgage-backed securities | 1,089,235 | 5.2 | |||||||||
Asset-backed securities | 3,306,439 | 15.9 | |||||||||
Corporate: | |||||||||||
Industrial | 2,326,598 | 11.2 | |||||||||
Financial | 1,524,636 | 7.3 | |||||||||
Utilities | 355,619 | 1.7 | |||||||||
Other | 32,687 | 0.2 | |||||||||
Total corporate | 4,239,540 | 20.3 | |||||||||
Foreign government and foreign government agencies | 869,344 | 4.2 | |||||||||
Total fixed maturity securities | 13,893,046 | 66.6 | |||||||||
Equity securities: | |||||||||||
Preferred stocks | 274,445 | 1.3 | |||||||||
Common stocks | 160,858 | 0.8 | |||||||||
Total equity securities | 435,303 | 2.1 | |||||||||
Cash and cash equivalents | 2,571,447 | 12.3 | |||||||||
Real estate | 2,106,474 | 10.1 | |||||||||
Investment funds | 1,163,707 | 5.6 | |||||||||
Arbitrage trading account | 595,727 | 2.9 | |||||||||
Loans receivable | 84,771 | 0.4 | |||||||||
Total investments | $ | 20,850,475 | 100.0 | % |
Total number
of shares purchased |
Average price
paid per share |
Total number of shares purchased
as part of publicly announced plans or programs |
Maximum number of
shares that may yet be purchased under the plans or programs |
||||||||||||||||||||
July 2020 | — | $ | — | — | 7,493,920 | ||||||||||||||||||
August 2020 | 84,288 | $ | 60.133 | 84,288 | 7,409,632 | ||||||||||||||||||
September 2020 | 132,476 | $ | 59.548 | 132,476 | 7,277,156 |
Number | ||||||||
Form of 2020 Performance-Based Restricted Stock Unit Agreement Under the W. R. Berkley Corporation 2018 Stock Incentive Plan | ||||||||
Certification of the Chief Executive Officer pursuant to Rule 13a-14(a)/ 15d-14(a). | ||||||||
Certification of the Chief Financial Officer pursuant to Rule 13a-14(a)/ 15d-14(a). | ||||||||
Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||||||||
W. R. BERKLEY CORPORATION
|
||||||||
Date: | November 5, 2020 | /s/ W. Robert Berkley, Jr. | ||||||
W. Robert Berkley, Jr. | ||||||||
President and Chief Executive Officer | ||||||||
Date: | November 5, 2020 | /s/ Richard M. Baio | ||||||
Richard M. Baio | ||||||||
Executive Vice President
Chief Financial Officer and Treasurer |
ROE Relative Performance* |
ROE Relative Performance
Vesting Percentage (% of Target)* |
||||
Less than +500 basis points | 0% | ||||
≥+500 basis points
|
80.0% | ||||
≥+633 basis points | 90.0% | ||||
≥+766 basis points | 100.0% (target) | ||||
≥+900 basis points | 110.0% |
/s/ W. Robert Berkley, Jr. | |||||
W. Robert Berkley, Jr. | |||||
President and
Chief Executive Officer |
/s/ Richard M. Baio | |||||
Richard M. Baio | |||||
Executive Vice President - Chief Financial Officer
and Treasurer |
/s/ W. Robert Berkley, Jr.
|
||
W. Robert Berkley, Jr. | ||
President and Chief Executive Officer | ||
/s/ Richard M. Baio
|
||
Richard M. Baio | ||
Executive Vice President - Chief Financial Officer and Treasurer |