Investments (Tables)

3 Months Ended

Mar. 31, 2020

Investments

Gross unrealized gains and losses on investments in securities

	As of March 31, 2020
	Cost or		Allowance for		Gross Unrealized				Estimated
	Amortized		Expected Credit						Fair
	Cost		Losses		Gains		Losses  (3)		Value
U.S. Treasury securities	$	1,823	$	—	$	60	$	—	$	1,883
Obligations of states and political subdivisions		224,800		—		8,924		(34)		233,690
Residential mortgage-backed securities (1)		288,122		—		12,998		(103)		301,017
Commercial mortgage-backed securities		105,678		—		3,553		(165)		109,066
Other asset-backed securities		26,659		—		63		(1,415)		25,307
Corporate and other securities		512,777		(2,510)		9,127		(24,902)		494,492
Subtotal, fixed maturity securities		1,159,859		(2,510)		34,725		(26,619)		1,165,455
Equity securities (2)		153,359		—		13,874		(17,345)		149,888
Other invested assets (4)		41,881		—		—		—		41,881
Totals	$	1,355,099	$	(2,510)	$	48,599	$	(43,964)	$	1,357,224

	As of December 31, 2019
	Cost or		Gross Unrealized				Estimated
	Amortized						Fair
	Cost		Gains		Losses		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 (4)		37,278		—		—		37,278
Totals	$	1,380,756	$	66,200	$	(4,001)	$	1,442,955

(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 733 and 229 securities in an unrealized loss position at March 31, 2020 and December 31, 2019, respectively.

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

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

	As of March 31, 2020
	Amortized		Estimated
	Cost		Fair Value
Due in one year or less	$	51,519	$	51,881
Due after one year through five years		295,621		287,963
Due after five years through ten years		311,755		305,990
Due after ten years through twenty years		79,555		83,326
Due after twenty years		950		906
Asset-backed securities		420,459		435,389
Totals	$	1,159,859	$	1,165,455

Gross realized gains and losses on sales of investments

	Three Months Ended March 31,
	2020		2019
Gross realized gains
Fixed maturity securities	$	889	$	115
Equity securities		1,576		953
Gross realized losses
Fixed maturity securities		(301)		(667)
Equity securities		(2,795)		(565)
Net realized losses on investments	$	(631)	$	(164)

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

	As of March 31, 2020
	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		656		34		—		—		656		34
Residential mortgage-backed securities		20,492		99		195		4		20,687		103
Commercial mortgage-backed securities		22,272		165		—		—		22,272		165
Other asset-backed securities		14,840		534		8,202		881		23,042		1,415
Corporate and other securities		233,543		23,185		8,758		1,717		242,301		24,902
Subtotal, fixed maturity securities		291,803		24,017		17,155		2,602		308,958		26,619
Equity securities		67,644		13,991		9,909		3,354		77,553		17,345
Total temporarily impaired securities	$	359,447	$	38,008	$	27,064	$	5,956	$	386,511	$	43,964

	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

Reconciliation of beginning and ending balances of allowance for expected credit losses on fixed maturities classified as available for sale

	Three Months Ended March 31, 2020
	Corporate and other
	securities
Balance January 1, 2020	$	—
Credit losses on securities with no previously recorded credit losses		2,510
Net increases (decreases) in allowance on previously impaired securities		—
Reduction due to sales		—
Writeoffs charged against allowance		—
Recoveries of amounts previously written off		—
Balance March 31, 2020	$	2,510

Components of net investment income

	Three Months Ended March 31,
	2020		2019
Interest on fixed maturity securities	$	9,759	$	11,127
Dividends on equity securities		1,206		1,082
Equity in earnings of other invested assets		516		282
Interest on other assets		7		9
Total investment income		11,488		12,500
Investment expenses		778		749
Net investment income	$	10,710	$	11,751

Fair Value Measurements

	As of March 31, 2020
	Total		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
U.S. Treasury securities	$	1,883	$	—	$	1,883	$	—
Obligations of states and political subdivisions		233,690		—		233,690		—
Residential mortgage-backed securities		301,017		—		301,017		—
Commercial mortgage-backed securities		109,066		—		109,066		—
Other asset-backed securities		25,307		—		25,307		—
Corporate and other securities		494,492		—		494,492		—
Equity securities		117,082		115,396		—		1,686
Total investment securities	$	1,282,537	$	115,396	$	1,165,455	$	1,686

	As of December 31, 2019
	Total		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
U.S. Treasury securities	$	1,512	$	—	$	1,512	$	—
Obligations of states and political subdivisions		251,396		—		251,396		—
Residential mortgage-backed securities		307,202		—		307,202		—
Commercial mortgage-backed securities		109,738		—		109,738		—
Other asset-backed securities		36,222		—		36,222		—
Corporate and other securities		521,970		—		521,970		—
Equity securities		144,877		144,361		—		516
Total investment securities	$	1,372,917	$	144,361	$	1,228,040	$	516

Changes in Company's Level 3 Fair value securities

	Three Months Ended March 31,
	2020		2019
	Level 3		Level 3
	Fair Value		Fair Value
	Securities		Securities
Balance at beginning of period	$	516	$	680
Net gains and losses included in earnings		—		—
Net gains included in other comprehensive income		—		—
Purchases		1,170		—
Sales		—		(297)
Transfers into Level 3		—		—
Transfers out of Level 3		—		—
Balance at end of period	$	1,686	$	383
Amount of total losses included in earnings attributable to the change in unrealized losses related to assets still held at end of period	$	—	$	—