Investments (Tables)

3 Months Ended

Mar. 31, 2022

Investments

Gross unrealized gains and losses on investments in securities

	As of March 31, 2022
	Cost or		Allowance for		Gross Unrealized				Estimated
	Amortized		Expected Credit						Fair
	Cost		Losses		Gains		Losses (3)		Value
U.S. Treasury securities	$	1,827	$	—	$	—	$	(71)	$	1,756
Obligations of states and political subdivisions		89,553		—		1,510		(1,360)		89,703
Residential mortgage-backed securities (1)		229,117		—		1,089		(9,019)		221,187
Commercial mortgage-backed securities		154,241		—		597		(5,014)		149,824
Other asset-backed securities		74,709		—		201		(2,091)		72,819
Corporate and other securities		616,145		(691)		4,877		(19,552)		600,779
Subtotal, fixed maturity securities		1,165,592		(691)		8,274		(37,107)		1,136,068
Short term investments		5		—		—		—		5
Equity securities (2)		218,636		—		44,867		(4,804)		258,699
Other invested assets		91,460		—		—		—		91,460
Totals	$	1,475,693	$	(691)	$	53,141	$	(41,911)	$	1,486,232

	As of December 31, 2021
	Cost or		Allowance for		Gross Unrealized				Estimated
	Amortized		Expected Credit						Fair
	Cost		Losses		Gains		Losses (3)		Value
U.S. Treasury securities	$	318	$	—	$	6	$	—	$	324
Obligations of states and political subdivisions		111,578		—		4,847		(123)		116,302
Residential mortgage-backed securities (1)		237,026		—		5,941		(1,503)		241,464
Commercial mortgage-backed securities		146,318		—		5,007		(442)		150,883
Other asset-backed securities		83,376		—		475		(255)		83,596
Corporate and other securities		609,241		(691)		20,647		(3,487)		625,710
Subtotal, fixed maturity securities		1,187,857		(691)		36,923		(5,810)		1,218,279
Equity securities (2)		211,848		—		54,861		(1,764)		264,945
Other invested assets		87,911		—		—		—		87,911
Totals	$	1,487,616	$	(691)	$	91,784	$	(7,574)	$	1,571,135

(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 937 and 444 securities in an unrealized loss position at March 31, 2022 and December 31, 2021, respectively.

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

	As of March 31, 2022
	Amortized		Estimated
	Cost		Fair Value
Due in one year or less	$	37,045	$	36,894
Due after one year through five years		271,840		268,631
Due after five years through ten years		349,628		338,371
Due after ten years through twenty years		47,743		46,712
Due after twenty years		1,269		1,630
Asset-backed securities		458,067		443,830
Totals	$	1,165,592	$	1,136,068

Gross realized gains and losses on sales of investments

	Three Months Ended March 31,
	2022		2021
Gross realized gains
Fixed maturity securities	$	472	$	1,246
Equity securities		3,925		1,773
Gross realized losses
Fixed maturity securities		(186)		(57)
Equity securities		(1)		(87)
Net realized gains on investments	$	4,210	$	2,875

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

	As of March 31, 2022
	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	$	1,756	$	71	$	—	$	—	$	1,756	$	71
Obligations of states and political subdivisions		19,793		1,214		904		146		20,697		1,360
Residential mortgage-backed securities		164,056		8,366		6,657		653		170,713		9,019
Commercial mortgage-backed securities		118,414		4,304		5,339		710		123,753		5,014
Other asset-backed securities		60,662		2,091		—		—		60,662		2,091
Corporate and other securities		353,599		16,961		32,777		2,591		386,376		19,552
Subtotal, fixed maturity securities		718,280		33,007		45,677		4,100		763,957		37,107
Equity securities		62,921		4,456		353		348		63,274		4,804
Total temporarily impaired securities	$	781,201	$	37,463	$	46,030	$	4,448	$	827,231	$	41,911

	As of December 31, 2021
	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		2,985		85		1,012		38		3,997		123
Residential mortgage-backed securities		97,116		1,502		11		1		97,127		1,503
Commercial mortgage-backed securities		29,660		442		—		—		29,660		442
Other asset-backed securities		39,266		255		—		—		39,266		255
Corporate and other securities		181,470		3,140		11,436		347		192,906		3,487
Subtotal, fixed maturity securities		350,497		5,424		12,459		386		362,956		5,810
Equity securities		19,457		1,559		1,029		205		20,486		1,764
Total temporarily impaired securities	$	369,954	$	6,983	$	13,488	$	591	$	383,442	$	7,574

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,
		2022		2021
Beginning of period	$	691	$	1,054
Credit losses on securities with no previously recorded credit losses		—		9
Net increases (decreases) in allowance on previously impaired securities				(188)
Reduction due to sales		—		(2)
Writeoffs charged against allowance		—		—
Recoveries of amounts previously written off		—		—
Ending balance of period	$	691	$	873

Components of net investment income

	Three Months Ended March 31,
	2022		2021
Interest on fixed maturity securities	$	9,105	$	9,682
Dividends on equity securities		1,320		1,239
Equity in earnings of other invested assets		1,016		1,422
Interest on other assets		7		6
Total investment income		11,448		12,349
Investment expenses		858		817
Net investment income	$	10,590	$	11,532

Fair value measurements for investments

	As of March 31, 2022
	Total		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
U.S. Treasury securities	$	1,756	$	—	$	1,756	$	—
Obligations of states and political subdivisions		89,703		—		89,703		—
Residential mortgage-backed securities		221,187		—		221,187		—
Commercial mortgage-backed securities		149,824		—		149,824		—
Other asset-backed securities		72,819		—		72,819		—
Corporate and other securities		600,779		—		600,779		—
Short term investments		5		—		5		—
Equity securities		218,029		216,331		—		1,698
Total investment securities	$	1,354,102	$	216,331	$	1,136,073	$	1,698

	As of December 31, 2021
	Total		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
U.S. Treasury securities	$	324	$	—	$	324	$	—
Obligations of states and political subdivisions		116,302		—		116,302		—
Residential mortgage-backed securities		241,464		—		241,464		—
Commercial mortgage-backed securities		150,883		—		150,883		—
Other asset-backed securities		83,596		—		83,596		—
Corporate and other securities		625,710		—		625,710		—
Equity securities		226,375		224,677		—		1,698
Total investment securities	$	1,444,654	$	224,677	$	1,218,279	$	1,698

Changes in the Company's Level 3 fair value securities

	Three Months Ended March 31,
	2022		2021
	Level 3		Level 3
	Fair Value		Fair Value
	Securities		Securities
Balance at beginning of period	$	1,698	$	1,698
Net gains and losses included in earnings		—		—
Net gains included in other comprehensive income		—		—
Purchases		—		—
Sales		—		—
Transfers into Level 3		—		—
Transfers out of Level 3		—		—
Balance at end of period	$	1,698	$	1,698
Amount of total losses included in earnings attributable to the change in unrealized losses related to assets still held at end of period	$	—	$	—