Investments (Tables)

6 Months Ended

Jun. 30, 2020

Investments

Gross unrealized gains and losses on investments in securities

	As of June 30, 2020
	Cost or		Allowance for		Gross Unrealized				Estimated
	Amortized		Expected Credit						Fair
	Cost		Losses		Gains		Losses  (3)		Value
U.S. Treasury securities	$	1,822	$	—	$	59	$	—	$	1,881
Obligations of states and political subdivisions		225,863		—		8,314		(139)		234,038
Residential mortgage-backed securities (1)		272,484		—		14,131		(28)		286,587
Commercial mortgage-backed securities		105,542		—		8,609		—		114,151
Other asset-backed securities		27,673		—		375		(599)		27,449
Corporate and other securities		535,282		(2,471)		30,039		(7,242)		555,608
Subtotal, fixed maturity securities		1,168,666		(2,471)		61,527		(8,008)		1,219,714
Equity securities (2)		164,991		—		19,213		(5,857)		178,347
Other invested assets (4)		35,526		—		—		—		35,526
Totals	$	1,369,183	$	(2,471)	$	80,740	$	(13,865)	$	1,433,587

	As of December 31, 2019
	Cost or		Gross Unrealized				Estimated
	Amortized						Fair
	Cost		Gains		Losses (3)		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 527 and 229 securities in an unrealized loss position at June 30, 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 June 30, 2020
	Amortized		Estimated
	Cost		Fair Value
Due in one year or less	$	67,468	$	68,303
Due after one year through five years		300,404		308,520
Due after five years through ten years		306,192		321,694
Due after ten years through twenty years		87,050		90,948
Due after twenty years		1,854		2,063
Asset-backed securities		405,698		428,186
Totals	$	1,168,666	$	1,219,714

Gross realized gains and losses on sales of investments

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Gross realized gains
Fixed maturity securities	$	139	$	479	$	1,028	$	594
Equity securities		1,295		688		2,871		1,641
Gross realized losses
Fixed maturity securities		(1,096)		(241)		(1,397)		(908)
Equity securities		(1,059)		(443)		(3,854)		(1,008)
Net realized (losses) gains on investments	$	(721)	$	483	$	(1,352)	$	319

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

	As of June 30, 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		4,479		139		—		—		4,479		139
Residential mortgage-backed securities		5,938		27		139		1		6,077		28
Commercial mortgage-backed securities		—		—		—		—		—		—
Other asset-backed securities		5,407		330		8,814		269		14,221		599
Corporate and other securities		127,854		6,360		8,901		882		136,755		7,242
Subtotal, fixed maturity securities		143,678		6,856		17,854		1,152		161,532		8,008
Equity securities		54,680		4,334		11,725		1,523		66,405		5,857
Total temporarily impaired securities	$	198,358	$	11,190	$	29,579	$	2,675	$	227,937	$	13,865

	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 June 30, 2020
	Corporate and other
	securities
Balance April 1, 2020	$	2,510
Credit losses on securities with no previously recorded credit losses		—
Net increases (decreases) in allowance on previously impaired securities		(39)
Reduction due to sales		—
Writeoffs charged against allowance		—
Recoveries of amounts previously written off		—
Balance June 30, 2020	$	2,471

	Six Months Ended June 30, 2020
	Corporate and other
	securities
Balance January 1, 2020	$	—
Credit losses on securities with no previously recorded credit losses		2,471
Net increases (decreases) in allowance on previously impaired securities		—
Reduction due to sales		—
Writeoffs charged against allowance		—
Recoveries of amounts previously written off		—
Balance June 30, 2020	$	2,471

Components of net investment income

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Interest on fixed maturity securities	$	9,667	$	9,717	$	19,426	$	20,844
Dividends on equity securities		1,034		1,117		2,240		2,199
Equity in earnings of other invested assets		9		478		525		760
Interest on other assets		7		8		14		17
Total investment income		10,717		11,320		22,205		23,820
Investment expenses		801		746		1,579		1,495
Net investment income	$	9,916	$	10,574	$	20,626	$	22,325

Fair Value Measurements

	As of June 30, 2020
	Total		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
U.S. Treasury securities	$	1,881	$	—	$	1,881	$	—
Obligations of states and political subdivisions		234,038		—		234,038		—
Residential mortgage-backed securities		286,587		—		286,587		—
Commercial mortgage-backed securities		114,151		—		114,151		—
Other asset-backed securities		27,449		—		27,449		—
Corporate and other securities		555,608		—		555,608		—
Equity securities		145,911		144,213		—		1,698
Total investment securities	$	1,365,625	$	144,213	$	1,219,714	$	1,698

	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 June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
	Level 3		Level 3		Level 3		Level 3
	Fair Value		Fair Value		Fair Value		Fair Value
	Securities		Securities		Securities		Securities
Balance at beginning of period	$	1,686	$	383	$	516	$	680
Net gains and losses included in earnings		—		—		—		—
Net gains included in other comprehensive income		—		—		—		—
Purchases		12		103		1,182		103
Sales		—		—		—		(297)
Transfers into Level 3		—		—		—		—
Transfers out of Level 3		—		—		—		—
Balance at end of period	$	1,698	$	486	$	1,698	$	486
Amount of total losses included in earnings attributable to the change in unrealized losses related to assets still held at end of period	$	—	$	—	$	—	$	—