Investments

3 Months Ended

Mar. 31, 2013

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 March 31, 2013 and December 31, 2012, 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
As of March 31, 2013
Fixed-maturity securities
U.S. Treasury and U.S. government agencies	$	1,669		89		—			1,758
Corporate bonds		10,569		551		(3	)		11,117
Commercial mortgage-backed securities		9,944		801		(4	)		10,741
State, municipalities, and political subdivisions		9,747		918		(1	)		10,664
Redeemable preferred stock		818		19		—			837
Total	$	32,747		2,378		(8	)		35,117
Equity securities	$	9,407		648		(111	)		9,944
As of December 31, 2012
Fixed-maturity securities
U.S. Treasury and U.S. government agencies	$	1,359		88		—			1,447
Corporate bonds		10,298		572		(10	)		10,860
Commercial mortgage-backed securities		10,708		936		—			11,644
State, municipalities, and political subdivisions		10,152		914		—			11,066
Redeemable preferred stock		919		18		(1	)		936
Total	$	33,436		2,528		(11	)		35,953
Equity securities	$	8,756		303		(183	)		8,876

The scheduled maturities of fixed-maturity securities at March 31, 2013 are as follows (in thousands):

	Amortized Cost		Estimated Fair Value
Available-for-sale
Due in one year or less	$	1,454		1,457
Due after one year through five years		9,586		9,976
Due after five years through ten years		6,451		6,968
Due after ten years		5,312		5,975
Commercial mortgage-backed securities		9,944		10,741
	$	32,747		35,117

Investment Sales

Proceeds received, and the gross realized gains and losses, from sales of available-for-sale securities for the three months ended March 31, 2013 and 2012 were as follows (in thousands):

	Proceeds		Gross Realized Gains		Gross Realized Losses
Three months ended March 31, 2013
Fixed-maturity securities	$	1,037		32		—
Equity securities	$	361		20		(32	)
Three months ended March 31, 2012
Fixed-maturity securities	$	1,222		29		(3	)
Equity securities	$	100		—		(5	)

Other-than-temporary Impairment

The Company regularly reviews its individual investment securities for other-than-temporary impairment. The Company considers various factors in determining whether each individual security is other-than-temporarily-impaired 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 March 31, 2013, 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
As of March 31, 2013	Gross Unrealized Loss			Estimated Fair Value		Gross Unrealized Loss			Estimated Fair Value		Gross Unrealized Loss			Estimated Fair Value
Fixed-maturity securities
Corporate bonds	$	(3	)		442		—			—		(3	)		442
Commercial mortgage-backed securities		(4	)		356		—			—		(4	)		356
State, municipalities, and political subdivisions		(1	)		226		—			—		(1	)		226
Redeemable preferred stock		—			54		—			—		—			54
Total fixed-maturity securities		(8	)		1,078		—			—		(8	)		1,078
Equity securities		(80	)		2,652		(31	)		192		(111	)		2,844
Total available-for-sale securities	$	(88	)		3,730		(31	)		192		(119	)		3,922

The Company believes there are 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 primarily by interest-rate changes. It is expected that the securities will 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 declines in fair value are 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 March 31, 2013.

Other Investments

Other investments consist of the following as of March 31, 2013 and December 31, 2012 (in thousands):

	March 31, 2013			December 31, 2012
Land	$	10,993			10,993
Land improvements		1,328			1,326
Buildings		2,869			2,869
Other		1,303			1,238
Total, at cost		16,493			16,426
Less: accumulated depreciation and amortization		(434	)		(339	)
Other investments	$	16,059			16,087

Depreciation and amortization expense related to other investments was $95,000 and $29,000, respectively, for the three months ended March 31, 2013 and 2012.