Investments (Tables)

12 Months Ended

Dec. 31, 2019

Investments

Gross unrealized gains and losses on investments in securities

	As of December 31, 2019
					Gross Unrealized Losses (3)
	Cost or		Gross		Non-OTTI		OTTI		Estimated
	Amortized		Unrealized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Losses (4)		Value
U.S. Treasury securities	$	1,504	$	8	$	—	$	—	$	1,512
Obligations of states and political subdivisions		241,597		9,799		—		—		251,396
Residential mortgage-backed securities (1)		301,503		6,608		(909)		—		307,202
Commercial mortgage-backed securities		106,902		3,233		(397)		—		109,738
Other asset-backed securities		36,068		218		(64)		—		36,222
Corporate and other securities		504,783		18,455		(1,268)		—		521,970
Subtotal, fixed maturity securities		1,192,357		38,321		(2,638)		—		1,228,040
Equity securities (2)		151,121		27,879		(1,363)		—		177,637
Other invested assets (5)		37,278		—		—		—		37,278
Totals	$	1,380,756	$	66,200	$	(4,001)	$	—	$	1,442,955

	As of December 31, 2018
					Gross Unrealized Losses (3)
	Cost or		Gross		Non-OTTI		OTTI		Estimated
	Amortized		Unrealized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Losses (4)		Value
U.S. Treasury securities	$	1,807	$	—	$	(30)	$	—	$	1,777
Obligations of states and political subdivisions		262,772		5,098		(1,672)		—		266,198
Residential mortgage-backed securities (1)		300,387		1,477		(4,841)		—		297,023
Commercial mortgage-backed securities		60,897		337		(898)		—		60,336
Other asset-backed securities		61,310		95		(329)		—		61,076
Corporate and other securities		488,240		1,775		(14,563)		—		475,452
Subtotal, fixed maturity securities		1,175,413		8,782		(22,333)		—		1,161,862
Equity securities (2)		142,948		15,419		(10,356)		—		148,011
Other invested assets (5)		23,481		—		—		—		23,481
Totals	$	1,341,842	$	24,201	$	(32,689)	$	—	$	1,333,354

(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.

Amortized cost and the estimated fair value of fixed maturity securities, by maturity

	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

Gross realized gains and losses on sales of investments

	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

Gross unrealized losses included in the Company's investment portfolio and the fair value of those securities

	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		64		462		—		21,743		64
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

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

Components of net investment income

	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