Investments (Tables)

12 Months Ended

Dec. 31, 2016

Gross unrealized gains and losses on investments in securities


	As of December 31, 2016
					Gross Unrealized Losses (3)
	Cost or		Gross		Non-OTTI		OTTI		Estimated
	Amortized		Unrealized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Losses (4)		Value
U.S. Treasury securities	$	302	$	—	$	—	$	—	$	302
Obligations of states and political subdivisions		382,811		11,534		(3,912)		—		390,433
Residential mortgage-backed securities (1)		252,031		3,256		(2,656)		—		252,631
Commercial mortgage-backed securities		35,695		191		(432)		—		35,454
Other asset-backed securities		70,411		89		(90)		—		70,410
Corporate and other securities		401,413		7,070		(3,444)		—		405,039
Subtotal, fixed maturity securities		1,142,663		22,140		(10,534)		—		1,154,269
Equity securities (2)		92,326		15,504		(2,735)		—		105,095
Other invested assets (5)		21,142		—		—		—		21,142
Totals	$	1,256,131	$	37,644	$	(13,269)	$	—	$	1,280,506


	As of December 31, 2015
					Gross Unrealized Losses (3)
	Cost or		Gross		Non-OTTI		OTTI		Estimated
	Amortized		Unrealized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Losses (4)		Value
U.S. Treasury securities	$	1,805	$	—	$	(4)	$	—	$	1,801
Obligations of states and political subdivisions		377,188		21,160		(426)		—		397,922
Residential mortgage-backed securities (1)		237,896		5,188		(1,628)		—		241,456
Commercial mortgage-backed securities		28,851		30		(218)		—		28,663
Other asset-backed securities		24,037		39		(145)		—		23,931
Corporate and other securities		394,194		4,191		(10,521)		—		387,864
Subtotal, fixed maturity securities		1,063,971		30,608		(12,942)		—		1,081,637
Equity securities (2)		102,541		13,498		(5,835)		—		110,204
Other invested assets (5)		17,602		—		—		—		17,602
Totals	$	1,184,114	$	44,106	$	(18,777)	$	—	$	1,209,443

(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 interests in mutual funds held to fund the Company’s executive deferred compensation plan.

(3)

The Company’s investment portfolio included 343 and 514 securities in an unrealized loss position at December 31, 2016 and December 31, 2015, respectively.

(4)

Amounts in this column represent other‑than‑temporary impairment (“OTTI”) recognized in accumulated other comprehensive income.

(5)

Other invested assets are accounted for under the equity method which approximates fair value.

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


	As of December 31, 2016
	Amortized		Estimated
	Cost		Fair Value
Due in one year or less	$	44,289	$	44,539
Due after one year through five years		429,323		440,328
Due after five years through ten years		301,211		300,043
Due after ten years through twenty years		6,677		7,529
Due after twenty years		3,025		3,335
Asset-backed securities		358,138		358,495
Totals	$	1,142,663	$	1,154,269

Gross realized gains and losses on sales of investments


	Year Ended December 31,
	2016		2015		2014
Gross realized gains
Fixed maturity securities	$	803	$	496	$	644
Equity securities		6,946		2,727		1,534
Gross realized losses
Fixed maturity securities		(1,242)		(3,315)		(1,651)
Equity securities		(948)		(377)		(330)
Net realized gains (losses) on investments	$	5,559	$	(469)	$	197

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


	As of December 31, 2016
	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	$	301	$	—	$	—	$	—	$	301	$	—
Obligations of states and political subdivisions		79,960		3,912		—		—		79,960		3,912
Residential mortgage-backed securities		182,265		2,476		4,595		180		186,860		2,656
Commercial mortgage-backed securities		15,521		432		—		—		15,521		432
Other asset-backed securities		31,869		90		—		—		31,869		90
Corporate and other securities		118,625		2,044		17,531		1,400		136,156		3,444
Subtotal, fixed maturity securities		428,541		8,954		22,126		1,580		450,667		10,534
Equity securities		6,364		315		14,841		2,420		21,205		2,735
Total temporarily impaired securities	$	434,905	$	9,269	$	36,967	$	4,000	$	471,872	$	13,269


	As of December 31, 2015
	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	$	1,801	$	4	$	—	$	—	$	1,801	$	4
Obligations of states and political subdivisions		34,837		342		4,777		84		39,614		426
Residential mortgage-backed securities		85,561		860		32,845		768		118,406		1,628
Commercial mortgage-backed securities		26,113		218		—		—		26,113		218
Other asset-backed securities		14,454		145		—		—		14,454		145
Corporate and other securities		173,493		5,528		33,522		4,993		207,015		10,521
Subtotal, fixed maturity securities		336,259		7,097		71,144		5,845		407,403		12,942
Equity securities		19,409		1,739		12,054		4,096		31,463		5,835
Total temporarily impaired securities	$	355,668	$	8,836	$	83,198	$	9,941	$	438,866	$	18,777

Credit loss recognized in earnings related to fixed maturity securities


		Year Ended December 31,
		2016		2015
Credit losses on fixed maturity securities, beginning of period		$	796	$	-
	Add: credit losses on OTTI not previously recognized		798		796
	Less: credit losses on securities sold		(500)		-
	Less: credit losses on securities impaired due to intent to sell		-		-
	Add: credit losses on previously impaired securities		-		-
	Less: increases in cash flows expected on previously impaired securities		-		-
Credit losses on fixed maturity securities, end of period		$	1,094	$	796

Components of net investment income


	Year Ended December 31,
	2016		2015		2014
Interest on fixed maturity securities	$	36,961	$	38,794	$	40,717
Dividends on equity securities		3,401		3,362		3,428
Equity in earnings of other invested assets		949		918		685
Interest on other assets		64		74		79
Interest on cash and cash equivalents		43		11		10
Total Investment Income		41,418		43,159		44,919
Investment expenses		3,005		2,625		2,616
Net investment income	$	38,413	$	40,534	$	42,303

Fair value measurements for available-for-sale investments


	As of December 31, 2016
	Total		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
U.S. Treasury securities	$	302	$	—	$	302	$	—
Obligations of states and political subdivisions		390,433		—		390,433		—
Residential mortgage-backed securities		252,631		—		252,631		—
Commercial mortgage-backed securities		35,454		—		35,454		—
Other asset-backed securities		70,410		—		70,410		—
Corporate and other securities		405,039		—		405,039		—
Equity securities		85,134		84,456		—		678
Total investment securities	$	1,239,403	$	84,456	$	1,154,269	$	678


	As of December 31, 2015
	Total		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
U.S. Treasury securities	$	1,801	$	—	$	1,801	$	—
Obligations of states and political subdivisions		397,922		—		397,922		—
Residential mortgage-backed securities		241,456		—		241,456		—
Commercial mortgage-backed securities		28,663		—		28,663		—
Other asset-backed securities		23,931		—		23,931		—
Corporate and other securities		387,864		—		387,864		—
Equity securities		91,107		90,560		—		547
Total investment securities	$	1,172,744	$	90,560	$	1,081,637	$	547

Changes in the Company's Level 3 fair value securities


	Year Ended December 31,
	2016		2015		2014
Balance at beginning of period	$	547	$	505	$	—
Net gains and losses included in earnings		—		—		—
Net gains included in other comprehensive income		—		—		—
Purchases		131		42		505
Sales		—		—		—
Transfers into Level 3		—		—		—
Transfers out of Level 3		—		—		—
Balance at end of period	$	678	$	547	$	505

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

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- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

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