PRA GROUP INC
For the period ended Dec 31, 2023. Filed Feb 29, 2024.
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FY2023 · Filed Feb 29, 2024
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3 – Investments
- Investments:
Investments consisted of the following as of December 31, 2023 and 2022 (amounts in thousands):
| 2023 | 2022 | |
|---|---|---|
| Debt securities | ||
| Available-for-sale | $59,470 | $66,813 |
| Equity securities | ||
| Private equity funds | 2,451 | 4,373 |
| Equity method investment | 10,483 | 8,762 |
| Total investments | $72,404 | $79,948 |
Debt Securities
Available-for-Sale
Government securities: The Company's investments in government instruments, consisting of Swedish treasury securities as of December 31, 2023 (Norwegian bonds and Swedish treasury securities as of December 31, 2022), are classified as available-for-sale and stated at fair value. The December 31, 2023 balance of$59.5 million matures within one year.
The amortized cost and fair value of investments in debt securities as of December 31, 2023 and 2022, were as follows (amounts in thousands):
| 2023 | ||||
|---|---|---|---|---|
| Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Aggregate Fair Value | |
| Available-for-sale | ||||
| Government securities | $59,404 | $66 | $— | $59,470 |
| 2022 | ||||
| Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Aggregate Fair Value | |
| Available-for-sale | ||||
| Government securities | $67,049 | $1 | $(237) | $66,813 |
Equity Securities
Private equity funds: Investments in private equity funds represent limited partnerships in which the Company has less than a 1% interest.
Equity Method Investment
The Company has an 11.7% interest in RCB Investimentos S.A. ("RCB"), a servicing platform for nonperforming loans in Brazil. This investment is accounted for using the equity method because the Company exercises significant influence over RCB’s operating and financial activities. Accordingly, the Company’s investment in RCB is adjusted for the Company’s proportionate share of RCB’s earnings or losses, capital contributions made and distributions received.
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