Investments |
3. Investments We deposit bonds with insurance regulatory authorities to meet statutory requirements. The adjusted cost of bonds on deposit with insurance regulatory authorities was $20.0 million and $23.1 million as of September 30, 2024 and March 31, 2024, respectively. Available-for-Sale Investments Available-for-sale investments as of September 30, 2024 were as follows:
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Amortized Cost |
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Gross Unrealized Gains |
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Gross Unrealized Losses |
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Allowance for Expected Credit Losses |
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Fair Value |
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(Unaudited) |
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(In thousands) |
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U.S. treasury securities and government obligations |
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$ |
150,029 |
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|
$ |
208 |
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|
$ |
(9,348 |
) |
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$ |
— |
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|
$ |
140,889 |
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U.S. government agency mortgage-backed securities |
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|
45,374 |
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|
107 |
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(8,255 |
) |
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— |
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|
37,226 |
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Obligations of states and political subdivisions |
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|
142,067 |
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|
197 |
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(9,098 |
) |
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— |
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|
133,166 |
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Corporate securities |
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1,943,081 |
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1,271 |
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(171,608 |
) |
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(2,814 |
) |
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1,769,930 |
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Mortgage-backed securities |
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402,279 |
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150 |
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(45,717 |
) |
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— |
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356,712 |
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$ |
2,682,830 |
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$ |
1,933 |
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$ |
(244,026 |
) |
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$ |
(2,814 |
) |
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$ |
2,437,923 |
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Available-for-sale investments as of March 31, 2024 were as follows:
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Amortized Cost |
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Gross Unrealized Gains |
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Gross Unrealized Losses |
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Allowance for Expected Credit Losses |
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Fair Value |
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(Unaudited) |
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(In thousands) |
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U.S. treasury securities and government obligations |
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$ |
191,070 |
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$ |
2,123 |
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$ |
(8,921 |
) |
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$ |
— |
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$ |
184,272 |
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U.S. government agency mortgage-backed securities |
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|
48,067 |
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|
250 |
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(7,664 |
) |
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— |
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|
40,653 |
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Obligations of states and political subdivisions |
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151,197 |
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|
918 |
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(7,533 |
) |
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— |
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|
144,582 |
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Corporate securities |
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1,963,249 |
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2,762 |
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(152,799 |
) |
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(1,052 |
) |
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1,812,160 |
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Mortgage-backed securities |
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306,510 |
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34 |
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(45,707 |
) |
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— |
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260,837 |
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$ |
2,660,093 |
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$ |
6,087 |
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$ |
(222,624 |
) |
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$ |
(1,052 |
) |
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$ |
2,442,504 |
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A summary of available-for-sale investments with unrealized losses for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous loss position as of September 30, 2024 and March 31, 2024 were as follows:
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September 30, 2024 |
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Less than or equal to 1 year |
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Greater than 1 year |
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Total |
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Fair Value |
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Unrealized Losses |
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Fair Value |
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Unrealized Losses |
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Fair Value |
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Unrealized Losses |
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(Unaudited) |
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(In thousands) |
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U.S. treasury securities and government obligations |
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$ |
39,648 |
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$ |
(35 |
) |
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$ |
97,088 |
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$ |
(9,313 |
) |
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$ |
136,736 |
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$ |
(9,348 |
) |
U.S. government agency mortgage-backed securities |
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— |
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— |
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22,087 |
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(8,255 |
) |
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22,087 |
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(8,255 |
) |
Obligations of states and political subdivisions |
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37,607 |
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(676 |
) |
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79,068 |
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(8,422 |
) |
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116,675 |
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(9,098 |
) |
Corporate securities |
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208,344 |
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(1,953 |
) |
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1,475,083 |
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(169,655 |
) |
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1,683,427 |
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(171,608 |
) |
Mortgage-backed securities |
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58,938 |
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(177 |
) |
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234,037 |
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(45,540 |
) |
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292,975 |
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(45,717 |
) |
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$ |
344,537 |
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$ |
(2,841 |
) |
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$ |
1,907,363 |
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$ |
(241,185 |
) |
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$ |
2,251,900 |
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$ |
(244,026 |
) |
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March 31, 2024 |
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Less than or equal to 1 year |
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Greater than 1 year |
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Total |
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Fair Value |
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Unrealized Losses |
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Fair Value |
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Unrealized Losses |
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Fair Value |
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Unrealized Losses |
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(Unaudited) |
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(In thousands) |
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U.S. treasury securities and government obligations |
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$ |
1,888 |
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$ |
(13 |
) |
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$ |
103,336 |
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$ |
(8,908 |
) |
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$ |
105,224 |
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$ |
(8,921 |
) |
U.S. government agency mortgage-backed securities |
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— |
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— |
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23,711 |
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(7,664 |
) |
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23,711 |
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(7,664 |
) |
Obligations of states and political subdivisions |
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10,492 |
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(222 |
) |
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80,082 |
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(7,311 |
) |
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90,574 |
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(7,533 |
) |
Corporate securities |
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132,513 |
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(1,258 |
) |
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1,495,167 |
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(151,541 |
) |
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1,627,680 |
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(152,799 |
) |
Mortgage-backed securities |
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3,008 |
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(23 |
) |
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248,423 |
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(45,684 |
) |
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251,431 |
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(45,707 |
) |
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$ |
147,901 |
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$ |
(1,516 |
) |
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$ |
1,950,719 |
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$ |
(221,108 |
) |
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$ |
2,098,620 |
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$ |
(222,624 |
) |
The adjusted cost and fair value of available-for-sale investments by contractual maturity were as follows:
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September 30, 2024 |
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March 31, 2024 |
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Amortized Cost |
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Fair Value |
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Amortized Cost |
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Fair Value |
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(Unaudited) |
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(In thousands) |
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Due in one year or less |
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$ |
274,397 |
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$ |
272,854 |
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$ |
266,357 |
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$ |
266,578 |
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Due after one year through five years |
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645,371 |
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|
623,920 |
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|
748,338 |
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|
723,903 |
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Due after five years through ten years |
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614,127 |
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554,516 |
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614,890 |
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|
564,422 |
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Due after ten years |
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|
746,656 |
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629,921 |
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|
723,998 |
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|
626,764 |
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2,280,551 |
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2,081,211 |
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2,353,583 |
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2,181,667 |
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Mortgage-backed securities |
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|
402,279 |
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|
|
356,712 |
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|
|
306,510 |
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|
260,837 |
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$ |
2,682,830 |
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$ |
2,437,923 |
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$ |
2,660,093 |
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$ |
2,442,504 |
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Equity investments of common stock and non-redeemable preferred stock were as follows:
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September 30, 2024 |
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March 31, 2024 |
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Amortized Cost |
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Fair Value |
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Amortized Cost |
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Fair Value |
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(Unaudited) |
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(In thousands) |
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Common stocks |
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$ |
29,422 |
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$ |
41,529 |
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$ |
29,604 |
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$ |
45,014 |
|
Non-redeemable preferred stocks |
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|
25,144 |
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|
21,766 |
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|
25,144 |
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|
|
21,260 |
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$ |
54,566 |
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$ |
63,295 |
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|
$ |
54,748 |
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|
$ |
66,274 |
|
Investments, other The carrying value of the other investments was as follows:
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September 30, |
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March 31, |
|
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|
2024 |
|
|
2024 |
|
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|
(Unaudited) |
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(In thousands) |
|
Mortgage loans, net |
|
$ |
623,042 |
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$ |
604,481 |
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Short-term investments |
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|
— |
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|
997 |
|
Policy loans |
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|
11,642 |
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|
|
11,229 |
|
Other investments |
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|
9,209 |
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|
17,229 |
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|
$ |
643,893 |
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|
$ |
633,936 |
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|