Investments (Tables)

6 Months Ended

Jun. 30, 2022

Investments

Gross unrealized gains and losses on investments in securities

	As of June 30, 2022
	Cost or		Allowance for		Gross Unrealized				Estimated
	Amortized		Expected Credit						Fair
	Cost		Losses		Gains		Losses (3)		Value
U.S. Treasury securities	$	1,827	$	—	$	—	$	(106)	$	1,721
Obligations of states and political subdivisions		77,004		—		729		(2,764)		74,969
Residential mortgage-backed securities (1)		240,120		—		431		(17,171)		223,380
Commercial mortgage-backed securities		158,065		—		—		(10,328)		147,737
Other asset-backed securities		74,647		—		8		(4,127)		70,528
Corporate and other securities		599,704		(691)		521		(45,628)		553,906
Subtotal, fixed maturity securities		1,151,367		(691)		1,689		(80,124)		1,072,241
Short term investments		5		—		—		—		5
Equity securities (2)		223,519		—		32,651		(21,473)		234,697
Other invested assets		103,634		—		—		—		103,634
Totals	$	1,478,525	$	(691)	$	34,340	$	(101,597)	$	1,410,577

	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 consisted 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 included 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 1,188 and 444 securities in an unrealized loss position at June 30, 2022 and December 31, 2021, respectively.

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

	As of June 30, 2022
	Amortized		Estimated
	Cost		Fair Value
Due in one year or less	$	31,705	$	31,649
Due after one year through five years		281,016		266,832
Due after five years through ten years		318,596		288,221
Due after ten years through twenty years		46,525		43,241
Due after twenty years		693		653
Asset-backed securities		472,832		441,645
Totals	$	1,151,367	$	1,072,241

Gross realized gains and losses on sales of investments

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Gross realized gains
Fixed maturity securities	$	521	$	887	$	993	$	2,133
Equity securities		3,489		3,379		7,414		5,152
Gross realized losses
Fixed maturity securities		(810)		(853)		(996)		(910)
Equity securities		(48)		(7)		(49)		(94)
Net realized gains on investments	$	3,152	$	3,406	$	7,362	$	6,281

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

	As of June 30, 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	$	1,720	$	106	$	—	$	—	$	1,720	$	106
Obligations of states and political subdivisions		37,017		2,541		827		223		37,844		2,764
Residential mortgage-backed securities		189,293		15,210		13,025		1,961		202,318		17,171
Commercial mortgage-backed securities		142,502		9,319		5,040		1,009		147,542		10,328
Other asset-backed securities		69,613		4,111		288		16		69,901		4,127
Corporate and other securities		471,508		40,899		33,513		4,729		505,021		45,628
Subtotal, fixed maturity securities		911,653		72,186		52,693		7,938		964,346		80,124
Equity securities		121,069		20,189		22,637		1,284		143,706		21,473
Total temporarily impaired securities	$	1,032,722	$	92,375	$	77,106	$	9,222	$	1,109,828	$	101,597

	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 June 30,				Six Months Ended June 30,
		2022		2021	2022		2021
Balance, beginning of period	$	691	$	873	$	691	$	1,054
Credit losses on securities with no previously recorded credit losses		—		—		—		9
Net increases (decreases) in allowance on previously impaired securities		—		(35)		—		(223)
Reduction due to sales		—		(158)		—		(160)
Writeoffs charged against allowance		—		—		—		—
Recoveries of amounts previously written off		—		—		—		—
Balance, end of period	$	691	$	680	$	691	$	680

Components of net investment income

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Interest on fixed maturity securities	$	9,746	$	8,002	$	18,851	$	17,684
Dividends on equity securities		1,436		1,180		2,756		2,419
Equity in earnings of other invested assets		1,249		1,425		2,265		2,847
Interest on other assets		8		5		15		11
Total investment income		12,439		10,612		23,887		22,961
Investment expenses		804		838		1,662		1,655
Net investment income	$	11,635	$	9,774	$	22,225	$	21,306

Fair value measurements for investments

	As of June 30, 2022
	Total		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
U.S. Treasury securities	$	1,721	$	—	$	1,721	$	—
Obligations of states and political subdivisions		74,969		—		74,969		—
Residential mortgage-backed securities		223,380		—		223,380		—
Commercial mortgage-backed securities		147,737		—		147,737		—
Other asset-backed securities		70,528		—		70,528		—
Corporate and other securities		553,906		—		553,906		—
Short term investments		5		—		5		—
Equity securities		191,786		189,731		—		2,055
Total investment securities	$	1,264,032	$	189,731	$	1,072,246	$	2,055

	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 June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	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	$	1,698	$	1,698	$	1,698
Net gains and losses included in earnings		—		—		—		—
Net gains included in other comprehensive income		—		—		—		—
Purchases		357		—		357		—
Sales		—		—		—		—
Transfers into Level 3		—		—		—		—
Transfers out of Level 3		—		—		—		—
Balance at end of period	$	2,055	$	1,698	$	2,055	$	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	$	—	$	—	$	—	$	—