Maturities of Funds Withheld Receivables
The amortized cost and fair value of fixed maturity and equity securities included in funds withheld receivables by contractual maturities, as applicable, are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or pre-pay obligations.
|
| | | | | | | |
| September 30, 2016 |
| Amortized Cost | | Fair Value |
Corporate, Non-structured Hybrids, Municipal and Preferred stock: | | | |
Due in one year or less | $ | 12.8 |
| | $ | 11.9 |
|
Due after one year through five years | 231.4 |
| | 228.2 |
|
Due after five years through ten years | 420.8 |
| | 429.3 |
|
Due after ten years | 487.1 |
| | 493.3 |
|
Subtotal | 1,152.1 |
| | 1,162.7 |
|
Other securities which provide for periodic payments: | | | |
Asset/Mortgage-backed securities | 357.5 |
| | 350.4 |
|
Structured hybrids | 22.2 |
| | 22.0 |
|
Total fixed maturity and equity securities included in funds withheld receivables | $ | 1,531.8 |
| | $ | 1,535.1 |
|
Securities in Funds Withheld Receivables with FGL in an Unrealized Loss Position
See Note 2, Significant Accounting Policies and Practices and Recent Accounting Pronouncements, for an explanation of the Company’s process for evaluating securities in the funds withheld receivables with FGL with unrealized losses for potential OTTI. The Company has concluded that the fair value of the securities presented in the table below were not OTTI as of September 30, 2016.
The fair value and gross unrealized losses of securities in the funds withheld receivables with FGL, aggregated by investment category, were as follows:
|
| | | | | | | | | | | | | | | | | | | | | | | |
| September 30, 2016 |
| Less than 12 months | | 12 months or longer | | Total |
| Fair Value | | Gross Unrealized Losses | | Fair Value | | Gross Unrealized Losses | | Fair Value | | Gross Unrealized Losses |
Funds withheld receivables with FGL | | | | | | | | | | | |
Corporates | $ | 137.8 |
| | $ | (12.6 | ) | | $ | 91.7 |
| | $ | (16.9 | ) | | $ | 229.5 |
| | $ | (29.5 | ) |
Asset/Mortgage-backed securities | 73.3 |
| | (2.2 | ) | | 99.0 |
| | (5.7 | ) | | 172.3 |
| | (7.9 | ) |
Municipals | 1.0 |
| | — |
| | — |
| | — |
| | 1.0 |
| | — |
|
Government bonds | 0.2 |
| | — |
| | — |
| | — |
| | 0.2 |
| | — |
|
Preferred stock | 3.7 |
| | (0.9 | ) | | — |
| | — |
| | 3.7 |
| | (0.9 | ) |
Total funds withheld receivables with FGL | $ | 216.0 |
| | $ | (15.7 | ) | | $ | 190.7 |
| | $ | (22.6 | ) | | $ | 406.7 |
| | $ | (38.3 | ) |
Total number of securities in an unrealized loss position | | | 146 |
| | | | 76 |
| | | | 222 |
|
|
| | | | | | | | | | | | | | | | | | | | | | | |
| September 30, 2015 |
| Less than 12 months | | 12 months or longer | | Total |
| Fair Value | | Gross Unrealized Losses | | Fair Value | | Gross Unrealized Losses | | Fair Value | | Gross Unrealized Losses |
Funds withheld receivables with FGL | | | | | | | | | | | |
Corporates | $ | 417.4 |
| | $ | (46.9 | ) | | $ | 113.8 |
| | $ | (21.0 | ) | | $ | 531.2 |
| | $ | (67.9 | ) |
Asset/Mortgage-backed securities | 120.8 |
| | (3.8 | ) | | 88.7 |
| | (2.8 | ) | | 209.5 |
| | (6.6 | ) |
Municipals | 5.9 |
| | (0.4 | ) | | 13.4 |
| | (0.3 | ) | | 19.3 |
| | (0.7 | ) |
Preferred stock | 5.6 |
| | (0.9 | ) | | — |
| | — |
| | 5.6 |
| | (0.9 | ) |
Total funds withheld receivables with FGL | $ | 549.7 |
| | $ | (52.0 | ) | | $ | 215.9 |
| | $ | (24.1 | ) | | $ | 765.6 |
| | $ | (76.1 | ) |
Total number of securities in an unrealized loss position | | | 423 |
| | | | 67 |
| | | | 490 |
|
