Investments (Tables)

6 Months Ended

Jun. 30, 2015

Investments, Debt and Equity Securities [Abstract]

Schedule of Available-for-sale Securities Reconciliation

The following table details the difference between cost or adjusted/amortized cost and estimated fair value, by major investment category, at June 30, 2015 and December 31, 2014:

	Cost or Adjusted/Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
June 30, 2015
U.S. government and agency securities	$	99,831	$	388	$	302	$	99,917
Foreign government	3,268		80		—		3,348
States, municipalities and political subdivisions	123,514		1,463		1,349		123,628
Public utilities	8,027		198		36		8,189
Corporate securities	130,748		1,375		868		131,255
Redeemable preferred stocks	1,960		6		45		1,921
Total fixed maturities	367,348		3,510		2,600		368,258
Public utilities	1,632		35		43		1,624
Other common stocks	20,764		3,688		670		23,782
Non-redeemable preferred stocks	2,521		12		38		2,495
Total equity securities	24,917		3,735		751		27,901
Other long-term investments	2,840		291		—		3,131
Total investments	$	395,105	$	7,536	$	3,351	$	399,290
December 31, 2014
U.S. government and agency securities	$	134,601	$	423	$	590	$	134,434
Foreign government	3,275		79		—		3,354
States, municipalities and political subdivisions	90,262		1,866		217		91,911
Public utilities	9,044		217		39		9,222
Corporate securities	111,787		1,409		580		112,616
Redeemable preferred stocks	1,094		9		10		1,093
Total fixed maturities	350,063		4,003		1,436		352,630
Public utilities	1,222		211		—		1,433
Other common stocks	19,560		3,738		250		23,048
Non-redeemable preferred stocks	1,496		17		7		1,506
Total equity securities	22,278		3,966		257		25,987
Other long-term investments	2,749		261		—		3,010
Total investments	$	375,090	$	8,230	$	1,693	$	381,627

Schedule of Realized Gain (Loss)

The following table details our realized gains (losses) by major investment category for the three and six month periods ended June 30, 2015 and 2014:

	2015					2014
	Gains (Losses)			Fair Value at Sale		Gains (Losses)			Fair Value at Sale
Three Months Ended June 30,
Fixed maturities	$	—		$	261	$	—		$	—
Equity securities	36			734		70			66,246
Total realized gains	36			995		70			66,246
Fixed maturities	(163		)	7,494		(39		)	1,363
Equity securities	(6		)	125		—			23
Total realized losses	(169		)	7,619		(39		)	1,386
Net realized investment gains (losses)	$	(133	)	$	8,614	$	31		$	67,632
Six Months Ended June 30,
Fixed maturities	$	227		$	21,224	$	21		$	1,120
Equity securities	39			972		172			67,051
Total realized gains	266			22,196		193			68,171
Fixed maturities	(269		)	18,028		(77		)	2,553
Equity securities	(8		)	158		(71		)	1,013
Total realized losses	(277		)	18,186		(148		)	3,566
Net realized investment gains (losses)	$	(11	)	$	40,382	$	45		$	71,737

Investments Classified by Contractual Maturity Date

The table below summarizes our fixed maturities at June 30, 2015 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.

	June 30, 2015
	Cost or Amortized Cost		Percent of Total		Fair Value		Percent of Total
Due in one year or less	$	25,913	7.1	%	$	25,948	7.0	%
Due after one year through five years	172,553		47.0		173,260		47.0
Due after five years through ten years	122,524		33.4		122,484		33.3
Due after ten years	46,358		12.5		46,566		12.7
Total	$	367,348	100.0	%	$	368,258	100.0	%

Investment Income

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Fixed maturities	$	1,979		$	1,349		$	3,801		$	2,626
Equity securities	231			240			434			366
Cash, cash equivalents and short-term investments	2			4			5			5
Other investments	24			24			66			87
Other assets	3			—			6			—
Investment income	2,239			1,617			4,312			3,084
Investment expenses	(2		)	(79		)	(89		)	(148		)
Net investment income	$	2,237		$	1,538		$	4,223		$	2,936

Schedule of Unrealized Loss on Investments

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
June 30, 2015
U.S. government and agency securities	31	$	118	$	47,959	20	$	184	$	13,040
States, municipalities and political subdivisions	63	1,310		66,142		7	39		8,785
Public utilities	1	1		1,274		1	35		1,013
Corporate securities	74	633		50,588		8	235		9,112
Redeemable preferred stocks	15	45		1,366		—	—		—
Total fixed maturities	184	2,107		167,329		36	493		31,950
Public utilities	14	43		955		—	—		—
Other common stocks	87	664		7,343		1	6		95
Non-redeemable preferred stocks	22	38		1,486		—	—		—
Total equity securities	123	745		9,784		1	6		95
Total	307	$	2,852	$	177,113	37	$	499	$	32,045
December 31, 2014
U.S. government and agency securities	32	$	285	$	36,081	20	$	305	$	16,947
States, municipalities and political subdivisions	24	100		22,272		11	117		14,310
Public utilities	1	1		1,274		1	38		1,014
Corporate securities	23	271		23,738		16	309		20,215
Redeemable preferred stocks	4	10		408		—	—		—
Total fixed maturities	84	667		83,773		48	769		52,486
Other common stocks	54	247		3,992		1	3		31
Non-redeemable preferred stocks	4	7		378		—	—		—
Total equity securities	58	254		4,370		1	3		31
Total	142	$	921	$	88,143	49	$	772	$	52,517

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

Schedule of Fair Value of Financial Instruments Measured on a Recurring Basis

The following table presents the fair value of our financial instruments measured on a recurring basis by level at June 30, 2015 and December 31, 2014:

	Total		Level 1		Level 2		Level 3
June 30, 2015
U.S. government and agency securities	$	99,917	$	—	$	99,917	$	—
Foreign government	3,348		—		3,348		—
States, municipalities and political subdivisions	123,628		—		123,628		—
Public utilities	8,189		—		8,189		—
Corporate securities	131,255		—		131,255		—
Redeemable preferred stocks	1,921		1,921		—		—
Total fixed maturities	368,258		1,921		366,337		—
Public utilities	1,624		1,624		—		—
Other common stocks	23,782		23,782		—		—
Non-redeemable preferred stocks	2,495		2,495		—		—
Total equity securities	27,901		27,901		—		—
Other long-term investments	3,131		300		831		2,000
Total investments	$	399,290	$	30,122	$	367,168	$	2,000
December 31, 2014
U.S. government and agency securities	$	134,434	$	—	$	134,434	$	—
Foreign government	3,354		—		3,354		—
States, municipalities and political subdivisions	91,911		—		91,911		—
Public utilities	9,222		—		9,222		—
Corporate securities	112,616		—		112,616		—
Redeemable preferred stocks	1,093		1,093		—		—
Total fixed maturities	352,630		1,093		351,537		—
Public utilities	1,433		1,433		—		—
Other common stocks	23,048		23,048		—		—
Non-redeemable preferred stocks	1,506		1,506		—		—
Total equity securities	25,987		25,987		—		—
Other long-term investments	3,010		300		739		1,971
Total investments	$	381,627	$	27,380	$	352,276	$	1,971

Schedule of Fair Value of Financial Instruments with Unobservable Inputs

The table below presents the rollforward of our Level 3 investments held at fair value during the six months ended June 30, 2015:

	Other Investments
December 31, 2014	$	1,971
Transfers in	—
Partnership income	43
Return of capital	(44		)
Unrealized gains in accumulated other comprehensive income	30
June 30, 2015	$	2,000

Schedule of Investments in Limited Partnerships

We acquired investments in limited partnerships, recorded in the other investments line of our Unaudited Consolidated Balance Sheets, that are currently being accounted for at fair value utilizing a discounted cash flow methodology. The estimated fair value of our investments in the limited partnership interests was $2,831,000. We have fully funded our investments in DCR and RCH, but we are still obligated to fund an additional $1,169,000 for our investment in Kayne. The information presented in the table below is as of June 30, 2015.

	Initial Investment		Book Value		Unrealized Gain		Fair Value
DCR Mortgage Partners VI, L.P.	$	750	$	749	$	215	$	964
RCH Mortgage Fund VI Investors, LP	1,000		960		76		1,036
Kayne Senior Credit Fund II, L.P.	831		831		—		831
Total limited partnerships	$	2,581	$	2,540	$	291	$	2,831
Other short-term investments	300		300		—		300
Total other investments	$	2,881	$	2,840	$	291	$	3,131

Quantitative Impact of Unobservable Inputs

The following table summarizes the quantitative impact that the significant unobservable inputs used to estimate the fair value of our Level 3 investments has on the estimated fair value on our investments shown in the tables above. The DCR and RCH investments were valued using a duration of 60 months for both periods presented below.

	Fair Value			Valuation		Rate
	Impact			Technique	Unobservable Input	Adjustment
June 30, 2015
DCR	$	(105	)	Discounted cash flow	Discount rate based on D&B paydex scale	2.35%
RCH	$	(292	)	Discounted cash flow	Discount rate based on D&B paydex scale	6.10%
December 31, 2014
DCR	$	(107	)	Discounted cash flow	Discount rate based on D&B paydex scale	2.35%
RCH	$	(292	)	Discounted cash flow	Discount rate based on D&B paydex scale	6.10%