INVESTMENTS

The following table details the difference between cost or adjusted/amortized cost and estimated fair value, by major investment category, at December 31, 2011, and 2010:



	Cost or Adjusted/Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
December 31, 2011
U.S. government and agency securities	$	48,011	$	219	$	111	$	48,119
States, municipalities and political subdivisions	17,159		1,207		—		18,366
Corporate securities	51,135		2,366		145		53,356
Redeemable preferred stocks	558		—		21		537
Total fixed maturities	116,863		3,792		277		120,378
Common stocks	2,807		359		43		3,123
Nonredeemable preferred stocks	477		—		19		458
Total equity securities	3,284		359		62		3,581
Other long-term investments	300		—		—		300
Total investments	$	120,447	$	4,151	$	339	$	124,259

December 31, 2010
U.S. government and agency securities	$	32,841	$	119	$	65	$	32,895
States, municipalities and political subdivisions	13,305		10		336		12,979
Corporate securities	4,029		18		—		4,047
Redeemable preferred stocks	809		—		47		762
Total fixed maturities	50,984		147		448		50,683
Common stocks	3,061		47		60		3,048
Nonredeemable preferred stocks	605		—		38		567
Total equity securities	3,666		47		98		3,615
Other long-term investments	300		—		—		300
Total investments	$	54,950	$	194	$	546	$	54,598

When we sell investments, we calculate the gain or loss realized on the sale by comparing the sales price (fair value) to the cost or adjusted/amortized cost of the security sold. We determine the cost or adjusted/amortized cost of the security sold using the specific-identification method. The following tables detail our realized gains (losses) by major investment category for the years ended December 31, 2011, 2010 and 2009:



	2011					2010					2009
	Gains (Losses)			Fair Value at Sale		Gains (Losses)			Fair Value at Sale		Gains (Losses)			Fair Value at Sale
Fixed maturities	$	231		$	21,803	$	4,278		$	105,637	$	1,545		$	40,418
Equity securities	10			65		149			2,731		1,165			4,977
Total realized gains	241			21,868		4,427			108,368		2,710			45,395
Fixed maturities	(58		)	3,191		(43		)	15,700		(51		)	1,574
Equity securities	(25		)	335		(38		)	1,310		(822		)	1,111
Total realized losses	(83		)	3,526		(81		)	17,010		(873		)	2,685
Net realized investment gains	$	158		$	25,394	$	4,346		$	125,378	$	1,837		$	48,080

Various states in which we operate or will be operating require us, by statute, to maintain deposits to secure the payment of claims. The table below summarizes our statutorily-required deposits at December 31, 2011.



	Type of Security Deposited	Cost/Amortized Cost		Fair Value
Florida	Certificate of Deposit	$	300	$	300
Amount reflected in other long-term investments		300		300
South Carolina	U.S. Treasury Note	1,001		1,003
Massachusetts	Municipal Bond	104		111
Amount reflected in fixed maturities		1,105		1,114
Securities deposited with insurance regulatory authorities		$	1,405	$	1,414

The CD we deposited with the Florida insurance regulatory authority is a twelve-month, automatically renewing CD. The par value of the securities we deposited with the South Carolina and Massachusetts insurance regulatory authorities are $1,000 and $100, respectively.

The table below summarizes our fixed maturities at year end by contractual maturity periods. Actual results may differ as issuers may have the right to call or prepay obligations, with or without penalties, prior to the contractual maturity of those obligations.



	December 31, 2011
	Cost or Amortized Cost		Percent of Total		Fair Value		Percent of Total
Due in one year or less	$	37,870	32.4	%	$	37,795	31.4	%
Due after one year through five years	31,252		26.8	%	31,662		26.3	%
Due after five years through ten years	30,761		26.3	%	32,809		27.3	%
Due after ten years	16,980		14.5	%	18,112		15.0	%
Total	$	116,863	100.0	%	$	120,378	100.0	%

The following table summarizes our net investment income by major investment category:



	Year Ended December 31,
	2011			2010			2009
Fixed maturities	$	2,628		$	3,639		$	4,274
Equity securities	142			203			293
Cash, cash equivalents and short-term investments	19			37			264
Other investments	$	34		$	—		$	—
Net investment income	$	2,823		$	3,879		$	4,831
Investment expenses	(140		)	(147		)	(164		)
Net investment income, less investment expenses	$	2,683		$	3,732		$	4,667

The following table presents an aging of our unrealized investment losses by investment class:



	Less Than Twelve Months					Twelve Months or More
	Number of Securities*	Gross Unrealized Losses		Fair Value		Number of Securities*	Gross Unrealized Losses		Fair Value
December 31, 2011
U.S. government and agency securities	2	$	90	$	16,915	1	$	21	$	1,627
Corporate securities	3	145		3,924		—	—		—
Redeemable preferred stocks	—	—		—		4	21		537
Total fixed maturities	5	235		20,839		5	42		2,164
Common stocks	12	40		740		1	3		9
Nonredeemable preferred stocks	—	—		—		3	19		458
Total equity securities	12	40		740		4	22		467
Total	17	$	275	$	21,579	9	$	64	$	2,631

December 31, 2010
U.S. government and agency securities	7	$	65	$	9,611	—	$	—	$	—
States, municipalities and political subdivisions	13	336		11,951		—	—		—
Redeemable preferred stocks	—	—		—		6	47		763
Total fixed maturities	20	401		21,562		6	47		763
Common stocks	19	17		810		4	43		423
Nonredeemable preferred stocks	—	—		—		4	38		567
Total equity securities	19	17		810		8	81		990
Total	39	$	418	$	22,372	14	$	128	$	1,753

* This amount represents the actual number of discrete securities, not the number of shares of those securities. The number is not presented in thousands.

During the years ended December 31, 2011, 2010 and 2009, we recorded other-than-temporary impairment charges of $31, $97, and $1,878, respectively. We have never recorded an OTTI charge on our debt-security investments.

During our quarterly evaluations of our securities for impairment, we determined that, other than the one security on which we recorded an other-than-temporary impairment charge, none of our investments in debt and equity securities that reflected an unrealized loss position were other-than-temporarily impaired. The issuers of our debt securities continue to make interest payments on a timely basis and have not suffered any credit rating reductions. We do not intend to sell nor is it likely that we would be required to sell the debt securities before we recover our amortized cost basis. All the issuers of the equity securities we own had near-term prospects that indicated we could recover our cost basis, and we also have the ability and the intent to hold these securities until their value equals or exceeds their cost.

The following table presents the fair value measurements of our financial instruments by level at December 31, 2011 and December 31, 2010:



December 31, 2011	Total		Level 1		Level 2		Level 3
U.S. government and agency securities	$	48,119	$	24,176	$	23,943	$	—
States, municipalities and political subdivisions	18,366		—		18,366		—
Corporate securities	53,356		—		53,356		—
Redeemable preferred stocks	537		537		—		—
Total fixed maturities	120,378		24,713		95,665		—
Common stocks	3,123		3,123		—		—
Nonredeemable preferred stocks	458		458		—		—
Total equity securities	3,581		3,581		—		—
Other long-term investments	300		300		—		—
Total investments	$	124,259	$	28,594	$	95,665	$	—

December 31, 2010
U.S. government and agency securities	$	32,895	$	—	$	32,895	$	—
States, municipalities and political subdivisions	12,979		—		12,979		—
Corporate securities	4,047		—		4,047		—
Redeemable preferred stocks	762		762		—		—
Total fixed maturities	50,683		762		49,921		—
Common stocks	3,048		3,048		—		—
Nonredeemable preferred stocks	567		567		—		—
Total equity securities	3,615		3,615		—		—
Other long-term investments	300		300		—		—
Total investments	$	54,598	$	4,677	$	49,921	$	—

For our investments in U.S. government securities that do not have prices in active markets, agency securities, state and municipal governments, and corporate bonds, we obtain the fair values from Synovus Trust Company, NA, which uses a third-party valuation service. The valuation service calculates prices for our investments in the aforementioned security types on a month-end basis by using several matrix-pricing methodologies that incorporate inputs from various sources. The model the valuation service uses to price U.S. government securities and securities of states and municipalities incorporates inputs from active market makers and inter-dealer brokers. To price corporate bonds and agency securities, the valuation service calculates non-call yield spreads on all issuers, uses option-adjusted yield spreads to account for any early redemption features, then adds final spreads to the U.S. Treasury curve at 3 p.m. (ET) as of quarter end. Since the inputs the valuation service uses in their calculations are not quoted prices in active markets, but are observable inputs, they represent Level 2 inputs.