Investments (Tables)

9 Months Ended

Sep. 30, 2022

Investments

Gross unrealized gains and losses on investments in securities

	As of September 30, 2022
	Cost or		Allowance for		Gross Unrealized				Estimated
	Amortized		Expected Credit						Fair
	Cost		Losses		Gains		Losses (3)		Value
U.S. Treasury securities	$	1,826	$	—	$	—	$	(169)	$	1,657
Obligations of states and political subdivisions		70,753		—		251		(4,242)		66,762
Residential mortgage-backed securities (1)		249,892		—		133		(29,290)		220,735
Commercial mortgage-backed securities		151,852		—		—		(15,114)		136,738
Other asset-backed securities		74,623		—		—		(5,148)		69,475
Corporate and other securities		605,557		(898)		202		(61,126)		543,735
Subtotal, fixed maturity securities		1,154,503		(898)		586		(115,089)		1,039,102
Equity securities (2)		229,153		—		27,064		(30,250)		225,967
Other invested assets		107,070		—		—		—		107,070
Totals	$	1,490,726	$	(898)	$	27,650	$	(145,339)	$	1,372,139

	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 1,274 and 444 securities in an unrealized loss position at September 30, 2022 and December 31, 2021, respectively.

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

	As of September 30, 2022
	Amortized		Estimated
	Cost		Fair Value
Due in one year or less	$	34,116	$	33,818
Due after one year through five years		287,121		266,167
Due after five years through ten years		315,613		275,781
Due after ten years through twenty years		39,878		35,118
Due after twenty years		1,408		1,270
Asset-backed securities		476,367		426,948
Totals	$	1,154,503	$	1,039,102

Gross realized gains and losses on sales of investments

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Gross realized gains
Fixed maturity securities	$	302	$	527	$	1,295	$	2,660
Equity securities		2,029		1,826		9,443		6,978
Gross realized losses
Fixed maturity securities		(1,044)		(31)		(2,040)		(941)
Equity securities		(36)		(96)		(85)		(190)
Net realized gains on investments	$	1,251	$	2,226	$	8,613	$	8,507

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

	As of September 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	$	1,657	$	169	$	—	$	—	$	1,657	$	169
Obligations of states and political subdivisions		44,270		3,425		2,154		817		46,424		4,242
Residential mortgage-backed securities		193,570		24,470		22,269		4,820		215,839		29,290
Commercial mortgage-backed securities		128,526		12,991		8,212		2,123		136,738		15,114
Other asset-backed securities		65,183		4,955		4,292		193		69,475		5,148
Corporate and other securities		444,137		42,759		90,967		18,367		535,104		61,126
Subtotal, fixed maturity securities		877,343		88,769		127,894		26,320		1,005,237		115,089
Equity securities		128,994		28,203		3,409		2,047		132,403		30,250
Total temporarily impaired securities	$	1,006,337	$	116,972	$	131,303	$	28,367	$	1,137,640	$	145,339

	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 September 30,				Nine Months Ended September 30,
		2022		2021	2022		2021
Balance, beginning of period	$	691	$	680	$	691	$	1,054
Credit losses on securities with no previously recorded credit losses		193		—		193		9
Net increases (decreases) in allowance on previously impaired securities		98		51		98		(172)
Reduction due to sales		(84)		(2)		(84)		(162)
Writeoffs charged against allowance		—		—		—		—
Recoveries of amounts previously written off		—		—		—		—
Balance, end of period	$	898	$	729	$	898	$	729

Components of net investment income

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Interest on fixed maturity securities	$	10,074	$	9,636	$	28,925	$	27,320
Dividends on equity securities		1,442		1,327		4,198		3,746
Equity in earnings of other invested assets		379		987		2,644		3,834
Interest on other assets		23		6		38		17
Total investment income		11,918		11,956		35,805		34,917
Investment expenses		806		844		2,468		2,499
Net investment income	$	11,112	$	11,112	$	33,337	$	32,418

Fair value measurements for investments

	As of September 30, 2022
	Total		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
U.S. Treasury securities	$	1,657	$	—	$	1,657	$	—
Obligations of states and political subdivisions		66,762		—		66,762		—
Residential mortgage-backed securities		220,735		—		220,735		—
Commercial mortgage-backed securities		136,738		—		136,738		—
Other asset-backed securities		69,475		—		69,475		—
Corporate and other securities		543,735		—		543,735		—
Equity securities		183,666		181,611		—		2,055
Total investment securities	$	1,222,768	$	181,611	$	1,039,102	$	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 September 30,				Nine Months Ended September 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	$	2,055	$	1,698	$	1,698	$	1,698
Net gains and losses included in earnings		—		—		—		—
Net gains included in other comprehensive income		—		—		—		—
Purchases		—		—		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	$	—	$	—	$	—	$	—