Investments (Tables)

9 Months Ended

Sep. 30, 2020

Investments

Gross unrealized gains and losses on investments in securities

	As of September 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	$	—	$	52	$	—	$	1,874
Obligations of states and political subdivisions		223,760		—		8,111		(363)		231,508
Residential mortgage-backed securities (1)		247,854		—		13,199		(8)		261,045
Commercial mortgage-backed securities		105,695		—		9,955		—		115,650
Other asset-backed securities		33,077		—		499		(432)		33,144
Corporate and other securities		554,572		(2,289)		33,266		(3,613)		581,936
Subtotal, fixed maturity securities		1,166,780		(2,289)		65,082		(4,416)		1,225,157
Equity securities (2)		171,363		—		24,744		(3,867)		192,240
Other invested assets (4)		42,603		—		—		—		42,603
Totals	$	1,380,746	$	(2,289)	$	89,826	$	(8,283)	$	1,460,000

	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 404 and 229 securities in an unrealized loss position at September 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 September 30, 2020
	Amortized		Estimated
	Cost		Fair Value
Due in one year or less	$	94,472	$	95,498
Due after one year through five years		288,475		298,896
Due after five years through ten years		309,350		328,829
Due after ten years through twenty years		86,213		90,188
Due after twenty years		1,643		1,905
Asset-backed securities		386,627		409,841
Totals	$	1,166,780	$	1,225,157

Gross realized gains and losses on sales of investments

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Gross realized gains
Fixed maturity securities	$	461	$	365	$	1,489	$	959
Equity securities		1,405		1,221		4,276		2,862
Gross realized losses
Fixed maturity securities		(753)		(375)		(2,150)		(1,283)
Equity securities		(444)		(17)		(4,298)		(1,025)
Net realized (losses) gains on investments	$	669	$	1,194	$	(683)	$	1,513

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

	As of September 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		13,635		363		—		—		13,635		363
Residential mortgage-backed securities		5,220		8		38		—		5,258		8
Commercial mortgage-backed securities		—		—		—		—		—		—
Other asset-backed securities		2,464		273		8,924		159		11,388		432
Corporate and other securities		111,614		3,103		8,736		510		120,350		3,613
Subtotal, fixed maturity securities		132,933		3,747		17,698		669		150,631		4,416
Equity securities		20,297		2,995		2,577		872		22,874		3,867
Total temporarily impaired securities	$	153,230	$	6,742	$	20,275	$	1,541	$	173,505	$	8,283

	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 September 30, 2020
	Corporate and other
	securities
Balance July 1, 2020	$	2,471
Credit losses on securities with no previously recorded credit losses		113
Net increases (decreases) in allowance on previously impaired securities		(110)
Reduction due to sales		(185)
Writeoffs charged against allowance		—
Recoveries of amounts previously written off		—
Balance September 30, 2020	$	2,289

	Nine Months Ended September 30, 2020
	Corporate and other
	securities
Balance January 1, 2020	$	—
Credit losses on securities with no previously recorded credit losses		2,289
Net increases (decreases) in allowance on previously impaired securities		—
Reduction due to sales		—
Writeoffs charged against allowance		—
Recoveries of amounts previously written off		—
Balance September 30, 2020	$	2,289

Components of net investment income

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Interest on fixed maturity securities	$	9,331	$	11,285	$	28,757	$	32,129
Dividends on equity securities		1,097		1,116		3,337		3,315
Equity in earnings of other invested assets		24		310		549		1,070
Interest on other assets		6		7		20		24
Total investment income		10,458		12,718		32,663		36,538
Investment expenses		740		771		2,319		2,266
Net investment income	$	9,718	$	11,947	$	30,344	$	34,272

Fair Value Measurements

	As of September 30, 2020
	Total		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
U.S. Treasury securities	$	1,874	$	—	$	1,874	$	—
Obligations of states and political subdivisions		231,508		—		231,508		—
Residential mortgage-backed securities		261,045		—		261,045		—
Commercial mortgage-backed securities		115,650		—		115,650		—
Other asset-backed securities		33,144		—		33,144		—
Corporate and other securities		581,936		—		581,936		—
Equity securities		160,071		158,373		—		1,698
Total investment securities	$	1,385,228	$	158,373	$	1,225,157	$	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 September 30,				Nine Months Ended September 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	$	1,698	$	486	$	516	$	680
Net gains and losses included in earnings		—		—		—		—
Net gains included in other comprehensive income		—		—		—		—
Purchases		—		—		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	$	—	$	—	$	—	$	—