The gross unrealized gains and losses on investments in fixed maturity securities, including redeemable preferred stocks that have characteristics of fixed maturities, and equity securities, including interests in mutual funds, and other invested assets, were as follows for the periods indicated.

(1)

Residential mortgage-backed securities consists primarily of obligations of U.S. Government agencies including collateralized mortgage obligations issued, guaranteed and/or insured by the following issuers: Government National Mortgage Association (GNMA), Federal Home Loan Mortgage Corporation (FHLMC), Federal National Mortgage Association (FNMA) and the Federal Home Loan Bank (FHLB).

(2)	Equity securities include common stock, preferred stock, mutual funds and interests in mutual funds held to fund the Company’s executive deferred compensation plan.

(3)	The Company’s investment portfolio included 229 and 958 securities in an unrealized loss position at December 31, 2019 and December 31, 2018, respectively.

(4)	Amounts in this column represent other-than-temporary impairment (“OTTI”) recognized in accumulated other comprehensive (loss) income.

(5)	Other invested assets are accounted for under the equity method which approximates fair value.

The amortized cost and the estimated fair value of fixed maturity securities, by maturity, are shown below for the period indicated. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


	As of December 31, 2019
	Amortized		Estimated
	Cost		Fair Value
Due in one year or less	$	46,850	$	47,146
Due after one year through five years		309,662		317,821
Due after five years through ten years		306,656		321,000
Due after ten years through twenty years		83,872		87,952
Due after twenty years		846		961
Asset-backed securities		444,471		453,160
Totals	$	1,192,357	$	1,228,040

The gross realized gains and losses on sales of investments were as follows for the periods indicated.


	Years Ended December 31,
	2019		2018		2017
Gross realized gains
Fixed maturity securities	$	1,294	$	1,022	$	1,468
Equity securities		4,536		5,129		5,244
Gross realized losses
Fixed maturity securities		(1,805)		(1,878)		(504)
Equity securities		(1,049)		(1,047)		(172)
Net realized gains on investments	$	2,976	$	3,226	$	6,036

In the normal course of business, the Company enters into transactions involving various types of financial instruments, including investments in fixed maturities and equity securities. Investment transactions have credit exposure to the extent that a counter party may default on an obligation to the Company. Credit risk is a consequence of carrying, trading and investing in securities. To manage credit risk, the Company focuses on higher quality fixed income

securities, reviews the credit strength of all companies in which it invests, limits its exposure in any one investment and monitors the portfolio quality, taking into account credit ratings assigned by recognized statistical rating organizations.

The following tables as of December 31, 2019 and 2018 present the gross unrealized losses included in the Company’s investment portfolio and the fair value of those securities aggregated by investment category. The tables also present the length of time that they have been in a continuous unrealized loss position.

As of December 31, 2019

Less than 12 Months

12 Months or More

Total

Estimated

Unrealized

Estimated

Unrealized

Estimated

Unrealized

Fair Value

Losses

Fair Value

Losses

Fair Value

Losses

U.S. Treasury securities

—

Obligations of states and political subdivisions

—

Residential mortgage-backed securities

61,933

409

31,655

500

93,588

909

Commercial mortgage-backed securities

36,398

397

866

—

37,264

397

Other asset-backed securities

21,281

462

—

21,743

Corporate and other securities

26,386

481

13,718

787

40,104

1,268

Subtotal, fixed maturity securities

145,998

1,351

46,701

1,287

192,699

2,638

Equity securities

8,849

391

14,143

972

22,992

1,363

Total temporarily impaired securities

154,847

1,742

60,844

2,259

215,691

4,001


	As of December 31, 2018
	Less than 12 Months				12 Months or More				Total
	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
U.S. Treasury securities	$	—	$	—	$	1,777	$	30	$	1,777	$	30
Obligations of states and political subdivisions		80,856		707		16,049		965		96,905		1,672
Residential mortgage-backed securities		64,101		694		138,572		4,147		202,673		4,841
Commercial mortgage-backed securities		22,652		270		13,117		628		35,769		898
Other asset-backed securities		33,866		112		23,532		217		57,398		329
Corporate and other securities		288,786		10,149		87,546		4,414		376,332		14,563
Subtotal, fixed maturity securities		490,261		11,932		280,593		10,401		770,854		22,333
Equity securities		71,439		9,955		2,072		401		73,511		10,356
Total temporarily impaired securities	$	561,700	$	21,887	$	282,665	$	10,802	$	844,365	$	32,689

Other-Than-Temporary Impairments

ASC 320, Investments—Debt and Equity Securities requires entities to separate an OTTI of a debt security into two components when there are credit related losses associated with the impaired debt security for which the Company asserts that it does not have the intent to sell the security, and it is more likely than not that it will not be required to sell the security before recovery of its cost basis. Under ASC 320, the amount of the OTTI related to a credit loss is recognized in earnings, and the amount of the OTTI related to other factors is recorded as a component of other comprehensive income. In instances where no credit loss exists but it is more likely than not that the Company will have to sell the debt security prior to the anticipated recovery, the decline in market value below amortized cost is recognized as an OTTI in earnings. In periods after the recognition of an OTTI on debt securities, the Company accounts for such securities as if they had been purchased on the measurement date of the OTTI at an amortized cost basis equal to the previous amortized cost basis less the OTTI recognized in earnings. For debt securities for which OTTI was recognized in earnings, the difference between the new amortized cost basis and the cash flows expected to be collected will be accreted or amortized into net investment income.

The Company holds no subprime mortgage debt securities. All of the Company’s holdings in mortgage-backed securities are either U.S. Government or Agency guaranteed or are rated investment grade by either Moody’s or Standard & Poor’s.

The unrealized losses in the Company’s fixed income and equity portfolio as of December 31, 2019 were reviewed for potential other-than-temporary asset impairments. The Company reviews securities with a material (20% or greater) unrealized loss for four or more consecutive quarters that additionally had certain qualitative factors that led to an impairment charge. As a result of our analysis, during the year ended December 31, 2019, the Company recognized $889 of OTTI losses which consisted entirely of credit losses related to fixed maturity securities. During the year ended December 31, 2018, the Company recognized $228 of OTTI losses which consisted entirely of credit losses related to fixed maturity securities.

Specific qualitative analysis was also performed for any additional securities appearing on the Company’s “Watch List.” Qualitative analysis considered such factors as the financial condition and the near term prospects of the issuer, whether the debtor is current on its contractually obligated interest and principal payments, changes to the rating of the security by a rating agency and the historical volatility of the fair value of the security.

The qualitative analysis performed by the Company concluded that outside of the securities that were recognized through OTTI, the unrealized losses recorded on the investment portfolio at December 31, 2019 resulted from fluctuations in market interest rates and other temporary market conditions as opposed to fundamental changes in the credit quality of the issuers of such securities. Therefore, decreases in fair values of the Company’s securities are viewed as being temporary.

The following table summarizes the credit loss recognized in earnings related to fixed maturity securities:


		Years Ended December 31,
		2019		2018			2017
Credit losses on fixed maturity securities, beginning of period		$	844	$	892	$	1,094
	Add: credit losses on OTTI not previously recognized		889		228		256
	Less: credit losses on securities sold		(1,064)		(276)		(458)
	Less: credit losses on securities impaired due to intent to sell		—		—		—
	Add: credit losses on previously impaired securities		—		—		—
	Less: increases in cash flows expected on previously impaired securities		—		—		—
Credit losses on fixed maturity securities, end of period		$	669	$	844	$	892

At December 31, 2019 and December 31, 2018, there were no amounts included in accumulated other comprehensive income (loss) related to securities which were considered by the Company to be other-than-temporarily impaired.

Based upon the qualitative analysis performed, the Company’s decision to hold these securities, the Company’s current level of liquidity and its positive operating cash flows, management believes it is more likely than not that it will not be required to sell any of its securities before the anticipated recovery in the fair value to its amortized cost basis.

Net Investment Income

The components of net investment income were as follows for the periods indicated.


	Years Ended December 31,
	2019		2018		2017
Interest on fixed maturity securities	$	42,892	$	40,988	$	37,246
Dividends on equity securities		5,268		4,500		3,093
Equity in earnings of other invested assets		1,552		1,182		1,016
Interest on other assets		32		62		89
Total Investment Income		49,744		46,732		41,444
Investment expenses		3,079		2,944		2,686
Net investment income	$	46,665	$	43,788	$	38,758