Investments

6 Months Ended

Jun. 30, 2012

Investments [Abstract]

Investments

Note 3 – Investments

The Company holds investments in fixed-maturity securities as well as equity securities, which are classified as available for sale. At June 30, 2012 and December 31, 2011, the amortized cost, gross unrealized gains and losses, and estimated fair value of the Company’s available-for-sale securities by security type were as follows (in thousands):

	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss			Fair Value
June 30, 2012
Fixed-maturity Securities:
U.S. Treasury and U.S. government agencies	$	516		56		—			572
Corporate bonds		12,274		316		(104	)		12,486
Commercial mortgage-backed securities		10,797		627		(1	)		11,423
State, municipalities, and political subdivisions		10,279		698		—			10,977
Other		4,497		186		—			4,683
Total	$	38,363		1,883		(105	)		40,141
Equity securities	$	8,690		274		(295	)		8,669
December 31, 2011
Fixed-maturity Securities:
U.S. Treasury and U.S. government agencies	$	509		47		—			556
Corporate bonds		10,199		58		(417	)		9,840
Commercial mortgage-backed securities		10,574		314		(14	)		10,874
State, municipalities, and political subdivisions		9,982		393		(3	)		10,372
Other		2,883		117		—			3,000
Total	$	34,147		929		(434	)		34,642
Equity securities	$	5,364		133		(290	)		5,207

The scheduled maturities of fixed-maturity securities at June 30, 2012 are as follows (in thousands):

	Amortized Cost		Fair Value
Available-for-sale
Due in one year or less	$	2,397		2,420
Due after one year through five years		9,408		9,517
Due after five years through ten years		10,895		11,392
Due after ten years		4,866		5,389
Commercial mortgage-backed securities		10,797		11,423
	$	38,363		40,141

Investment Sales

Proceeds received, and the gross realized gains and losses from sales of available for sale securities, for the three and six months ended June 30, 2012 and 2011 were as follows (in thousands):

	Proceeds		Gross Realized Gains		Gross Realized Losses
Three months ended June 30, 2012
Fixed-maturity securities	$	1,197		11		—
Equity securities	$	1,412		8		(10	)
Three months ended June 30, 2011
Fixed-maturity securities	$	11,916		238		(15	)
Equity securities	$	574		53		(136	)
Six months ended June 30, 2012
Fixed-maturity securities	$	2,419		40		(3	)
Equity securities	$	1,512		8		(15	)
Six months ended June 30, 2011
Fixed-maturity securities	$	19,614		369		(38	)
Equity securities	$	1,106		105		(143	)

Amounts reported for the three and six months ended June 30, 2011 include the gross realized gains and losses from equity option contracts. During the three and six months ended June 30, 2011, the Company entered into equity contracts for exchange traded call and put options to meet certain investment objectives. With respect to these option contracts, the Company received net proceeds of $22,000 and $73,000 and realized gains of $22,000 and $73,000 for the three and six months ended June 30, 2011, respectively, which is included in the realized investment gains in the Condensed Consolidated Statements of Income. There were no open option contracts at June 30, 2011. The Company held no option contracts during the three and six months ended June 30, 2012.

Other-than-temporary Impairment

The Company regularly reviews its individual investment securities for other-than-temporary impairment (“OTTI”). The Company considers various factors in determining whether each individual security is OTTI, including:

• the financial condition and near-term prospects of the issuer, including any specific events that may affect its operations or earnings;

• the length of time and the extent to which the market value of the security has been below its cost or amortized cost;

• general market conditions and industry or sector specific factors;

• nonpayment by the issuer of its contractually obligated interest and principal payments; and

• the Company’s intent and ability to hold the investment for a period of time sufficient to allow for the recovery of costs.

Securities with gross unrealized loss positions at June 30, 2012, aggregated by investment category and length of time the individual securities have been in a continuous loss position, are as follows (in thousands):

	Less than Twelve Months					Twelve Months  or Greater					Total
	Gross Unrealized Loss			Fair Value		Gross Unrealized Loss			Fair Value		Gross Unrealized Loss			Fair Value
As of June 30, 2012
Fixed-maturity securities
Corporate Bonds	$	(5	)		839		(99	)		1,938		(104	)		2,777
Commercial mortgage-backed securities		(1	)		224		—			—		(1	)		224
Total fixed-maturity securities		(6	)		1,063		(99	)		1,938		(105	)		3,001
Equity securities		(123	)		2,559		(172	)		109		(295	)		2,668
Total available-for-sale securities	$	(129	)		3,622		(271	)		2,047		(400	)		5,669

The Company believes there were no fundamental issues such as credit losses or other factors with respect to any of its available-for-sale securities. The unrealized losses on investments in fixed-maturity securities were caused by interest-rate changes. It is expected that the securities would not be settled at a price less than the par value of the investments. In determining whether equity securities are other than temporarily impaired, the Company considers its intent and ability to hold a security for a period of time sufficient to allow for the recovery of cost. Because the decline in fair value is attributable to changes in interest rates or market conditions and not credit quality, and because the Company has the ability and intent to hold its available-for-sale investments until a market price recovery or maturity, the Company does not consider any of its investments to be other-than-temporarily impaired at June 30, 2012.

Other Investments

Other investments consist primarily of real estate and the related assets and operations of the marina acquired in 2011 and the real estate and related assets of the marina and restaurant facilities acquired in 2012. Operating activities related to the Company’s real estate investments include leasing of office and retail space to tenants, wet and dry boat storage, a restaurant, and fuel services with respect to marina clients and other recreational boaters.

Other investments consist of the following as of June 30, 2012 and December 31, 2011 (in thousands):

	At June 30, 2012			At December 31, 2011
Building	$	2,788			1,418
Land		10,619			4,438
Land improvements		1,307			283
Other		1,076			404
Total, at cost		15,790			6,543
Less accumulated depreciation and amortization		(154	)		(60	)
Other investments	$	15,636			6,483