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Summary of Investments
 3 Months Ended
Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
Summary of Investments SUMMARY OF INVESTMENTS
Fair Value of Investments
A reconciliation of the amortized cost to fair value of investments in available-for-sale fixed maturity, presented on a consolidated basis, as of March 31, 2023 and December 31, 2022, is provided below:
March 31, 2023
Type of InvestmentCost or Amortized Cost Gross Unrealized Appreciation Gross Unrealized Depreciation Fair ValueAllowance for Credit LossesCarrying Value
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury$15,635 $10 $829 $14,816 $— $14,816 
U.S. government agency91,069 17 8,938 82,148 — 82,148 
States, municipalities and political subdivisions
General obligations:
Midwest58,832 213 157 58,888 — 58,888 
Northeast11,475 25 24 11,476 — 11,476 
South63,842 130 501 63,471 — 63,471 
West86,916 183 389 86,710 — 86,710 
Special revenue:
Midwest102,938 472 400 103,010 — 103,010 
Northeast55,161 166 713 54,614 — 54,614 
South180,683 561 2,279 178,965 — 178,965 
West113,332 401 831 112,902 — 112,902 
Foreign bonds38,119 — 3,818 34,301 — 34,301 
Public utilities146,966 260 11,515 135,711 — 135,711 
Corporate bonds
Energy36,614 — 2,188 34,426 — 34,426 
Industrials63,760 267 4,628 59,399 — 59,399 
Consumer goods and services100,455 54 8,757 91,752 — 91,752 
Health care34,960 124 4,587 30,497 — 30,497 
Technology, media and telecommunications69,144 21 5,869 63,296 — 63,296 
Financial services135,098 637 9,356 126,379 179 126,200 
Mortgage-backed securities25,959 — 2,425 23,534 — 23,534 
Collateralized mortgage obligations
Government national mortgage association102,127 12 12,636 89,503 — 89,503 
Federal home loan mortgage corporation93,395 43 11,984 81,454 — 81,454 
Federal national mortgage association53,846 152 4,227 49,771 — 49,771 
Asset-backed securities3,923 512 110 4,325 — 4,325 
Total Available-for-Sale Fixed Maturities$1,684,249 $4,260 $97,161 $1,591,348 $179 $1,591,169 
December 31, 2022
Type of InvestmentCost or Amortized Cost Gross Unrealized Appreciation Gross Unrealized DepreciationFair ValueAllowance for Credit LossesCarrying Value
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury$15,684 $— $1,009 $14,675 $— $14,675 
U.S. government agency94,092 35 9,721 84,406 — 84,406 
States, municipalities and political subdivisions
General obligations:
Midwest61,191 185 263 61,113 — 61,113 
Northeast15,518 18 73 15,463 — 15,463 
South64,851 57 927 63,981 — 63,981 
West87,094 163 712 86,545 — 86,545 
Special revenue:
Midwest103,107 224 1,065 102,266 — 102,266 
Northeast55,292 76 1,148 54,220 — 54,220 
South184,108 278 3,529 180,857 — 180,857 
West113,594 275 1,657 112,212 — 112,212 
Foreign bonds36,129 — 4,480 31,649 — 31,649 
Public utilities138,752 65 13,406 125,411 — 125,411 
Corporate bonds
Energy36,507 — 3,298 33,209 — 33,209 
Industrials58,334 62 5,554 52,842 — 52,842 
Consumer goods and services100,539 — 10,598 89,941 — 89,941 
Health care32,987 24 5,419 27,592 — 27,592 
Technology, media and telecommunications67,193 — 7,253 59,940 — 59,940 
Financial services132,849 851 9,408 124,292 3 124,289 
Mortgage-backed securities20,450 — 2,750 17,700 — 17,700 
Collateralized mortgage obligations
Government national mortgage association97,839 — 13,291 84,548 — 84,548 
Federal home loan mortgage corporation92,366 — 13,528 78,838 — 78,838 
Federal national mortgage association50,272 5 4,891 45,386 — 45,386 
Asset-backed securities3,932 466 145 4,253 — 4,253 
Total Available-for-Sale Fixed Maturities$1,662,680 $2,784 $114,125 $1,551,339 $3 $1,551,336 
Maturities
The amortized cost and fair value of available-for-sale fixed maturity securities at March 31, 2023, by contractual maturity, are shown in the following tables. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Asset-backed securities, mortgage-backed securities and collateralized mortgage obligations may be subject to prepayment risk and are therefore not categorized by contractual maturity.
Maturities
Available-For-Sale
March 31, 2023Amortized Cost Fair Value
Due in one year or less$41,386  $41,220 
Due after one year through five years479,517  467,682 
Due after five years through 10 years545,965  516,102 
Due after 10 years338,131  317,757 
Asset-backed securities3,923 4,325 
Mortgage-backed securities25,959  23,534 
Collateralized mortgage obligations249,368  220,728 
 $1,684,249  $1,591,348 
Net Investment Gains and Losses
Net gains (losses) on disposition of investments are computed using the specific identification method and are included in the computation of net income. A summary of the components of net investment gains (losses) is as follows:
Three Months Ended March 31,
2023 2022
Net investment gains (losses):   
Fixed maturities:
Available-for-sale$(178)$333 
Allowance for credit losses(176)— 
Equity securities
Change in the fair value(1,705)(989)
Sales500 206 
Mortgage loans allowance for credit losses— 5 
Other long-term investments(186) (20)
Total net investment gains (losses)$(1,745) $(465)

The proceeds and gross realized gains (losses) on the sale of available-for-sale fixed maturity securities are as follows:
 Three Months Ended March 31,
2023 2022
Proceeds from sales$9,868  $— 
Gross realized gains11  333 
Gross realized losses189  — 
Funding Commitment

Pursuant to an agreement with one of our limited liability partnership investments, we are contractually committed through July 10, 2030 to make capital contributions upon request of the partnership. Our remaining potential contractual obligation was $39,958 at March 31, 2023.

In addition, the Company invested $25,000 in December 2019 in a limited liability partnership investment fund which is subject to a three-year lockup with a 60-day minimum notice, with four possible repurchase dates per year, after the three-year lockup period has concluded. The fair value of the investment at March 31, 2023 was $24,667 and there are no remaining capital contributions with this investment.
Unrealized Appreciation and Depreciation
A summary of the changes in net unrealized investment appreciation during the reporting period is as follows:
 Three Months Ended March 31,
2023 2022
Change in net unrealized investment appreciation (depreciation)   
Available-for-sale fixed maturities$18,544 $(83,283)
Income tax effect(3,894)17,490 
Total change in net unrealized investment appreciation (depreciation), net of tax$14,650  $(65,793)
Credit Risk
An allowance for credit losses is recorded based on a number of factors including the current economic conditions, management's expectations of future economic conditions and performance indicators, such as market value versus amortized cost, investment spreads widening or contracting, rating actions, payment and default history. The following table contains a rollforward of the allowance for credit losses for available-for-sale fixed maturity securities at March 31, 2023.
Rollforward of allowance for credit losses for available-for-sale fixed maturity securities:
As of
March 31, 2023
Beginning balance, January 1, 2023$3 
Additions to the allowance for credit losses for which credit losses were not previously recorded176 
Ending balance, March 31, 2023
$179 


Fixed Maturities Unrealized Depreciation
The following tables summarize our fixed maturity securities that were in an unrealized loss position reported on a consolidated basis at March 31, 2023 and December 31, 2022. The securities are presented by the length of time they have been continuously in an unrealized loss position. Non-credit related unrealized losses are recognized as a component of other comprehensive income and represent other market movements that are not credit related, for example interest rate changes. We have no intent to sell, and it is more likely than not that we will not be required to sell, these securities until the fair value recovers to at least equal our cost basis or the securities mature.
March 31, 2023Less than 12 months12 months or longerTotal
Type of InvestmentNumber
of Issues		Fair
Value		Gross Unrealized
Depreciation		Number
of Issues		Fair
Value		Gross Unrealized DepreciationFair
Value		Gross Unrealized Depreciation
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury— $— $— 6 $12,633 $829 $12,633 $829 
U.S. government agency14 42,728 2,554 12 36,407 6,384 79,135 8,938 
States, municipalities and political subdivisions
General obligations
Midwest8 12,164 96 1 7,779 61 19,943 157 
Northeast1 3,499 24 — — — 3,499 24 
South12 25,768 351 4 10,864 150 36,632 501 
West18 39,985 284 1 7,248 105 47,233 389 
Special revenue
Midwest17 36,384 312 2 3,627 88 40,011 400 
Northeast8 23,746 236 4 12,001 477 35,747 713 
South41 85,197 1,481 10 18,098 798 103,295 2,279 
West26 53,685 646 6 11,776 185 65,461 831 
Foreign bonds7 18,236 1,033 7 16,065 2,785 34,301 3,818 
Public utilities24 57,437 2,288 31 65,964 9,227 123,401 11,515 
Corporate bonds
Energy13 27,485 788 2 6,941 1,400 34,426 2,188 
Industrials10 26,075 626 12 20,941 4,002 47,016 4,628 
Consumer goods and services19 52,538 1,651 14 33,182 7,106 85,720 8,757 
Health care4 9,101 222 7 17,455 4,365 26,556 4,587 
Technology, media and telecommunications17 36,541 953 11 23,737 4,916 60,278 5,869 
Financial services30 72,896 3,847 16 41,551 5,509 114,447 9,356 
Mortgage-backed securities26 7,058 67 26 16,475 2,358 23,533 2,425 
Collateralized mortgage obligations
Government National Mortgage Association9 16,349 673 33 70,165 11,963 86,514 12,636 
Federal Home Loan Mortgage Corporation7 11,325 2,024 31 67,104 9,960 78,429 11,984 
Federal National Mortgage Association6 10,479 220 14 29,668 4,007 40,147 4,227 
Asset-backed securities1 3,475 110 — — — 3,475 110 
Total Available-for-Sale Fixed Maturities318 $672,151 $20,486 250 $529,681 $76,675 $1,201,832 $97,161 


The unrealized losses on our investments in available-for-sale fixed maturities were the result of interest rate movements. We have no intent to sell, and it is more likely than not that we will not be required to sell these securities until the fair value recovers to at least equal our cost basis or the securities mature.
December 31, 2022Less than 12 months12 months or longerTotal
Type of InvestmentNumber
of Issues		Fair
Value		Gross Unrealized DepreciationNumber
of Issues		Fair
Value		Gross Unrealized DepreciationFair
Value		Gross Unrealized Depreciation
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury4 $6,656 $212 4 $8,019 $797 $14,675 $1,009 
U.S. government agency24 70,158 5,606 3 11,242 4,115 81,400 9,721 
States, municipalities and political subdivisions
General obligations
Midwest16 29,089 263 — — — 29,089 263 
Northeast4 8,576 73 — — — 8,576 73 
South24 48,235 927 — — — 48,235 927 
West27 62,652 711 — — — 62,652 711 
Special revenue
Midwest35 67,101 1,065 — — — 67,101 1,065 
Northeast14 37,484 1,148 — — — 37,484 1,148 
South58 126,388 3,124 1 866 405 127,254 3,529 
West39 83,622 1,658 — — — 83,622 1,658 
Foreign bonds9 21,377 1,861 5 10,272 2,619 31,649 4,480 
Public utilities45 101,867 8,737 9 19,979 4,669 121,846 13,406 
Corporate bonds
Energy15 28,612 1,930 1 4,597 1,368 33,209 3,298 
Industrials21 43,639 3,542 4 7,049 2,012 50,688 5,554 
Consumer goods and services28 69,320 4,440 7 20,620 6,157 89,940 10,597 
Health care5 9,829 487 6 15,928 4,933 25,757 5,420 
Technology, media and telecommunications23 49,970 3,279 5 9,970 3,974 59,940 7,253 
Financial services40 101,411 6,997 5 11,236 2,208 112,647 9,205 
Mortgage-backed securities38 7,909 1,056 12 9,791 1,693 17,700 2,749 
Collateralized mortgage obligations
Government National Mortgage Association29 48,898 4,500 12 35,650 8,791 84,548 13,291 
Federal Home Loan Mortgage Corporation21 35,456 5,629 19 43,383 7,900 78,839 13,529 
Federal National Mortgage Association14 24,146 1,281 7 16,674 3,611 40,820 4,892 
Asset-backed securities1 3,452 145 — — — 3,452 145 
Total Available-for-Sale Fixed Maturities534 $1,085,847 $58,671 100 $225,276 $55,252 $1,311,123 $113,923