Investments (Tables)

9 Months Ended

Sep. 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 September 30, 2015 and December 31, 2014:

	Cost or Adjusted/Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
September 30, 2015
U.S. government and agency securities	$	118,473	$	415	$	158	$	118,730
Foreign government	3,265		126		—		3,391
States, municipalities and political subdivisions	135,699		2,325		469		137,555
Public utilities	8,927		199		19		9,107
Corporate securities	147,399		1,454		1,048		147,805
Redeemable preferred stocks	1,842		10		41		1,811
Total fixed maturities	415,605		4,529		1,735		418,399
Public utilities	1,669		69		27		1,711
Other common stocks	18,871		2,527		1,150		20,248
Non-redeemable preferred stocks	2,356		15		27		2,344
Total equity securities	22,896		2,611		1,204		24,303
Other long-term investments	2,734		302		—		3,036
Total investments	$	441,235	$	7,442	$	2,939	$	445,738
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 nine month periods ended September 30, 2015 and 2014:

	2015					2014
	Gains (Losses)			Fair Value at Sale		Gains (Losses)			Fair Value at Sale
Three Months Ended September 30,
Fixed maturities	$	315		$	24,168	$	2		$	333
Equity securities	778			2,469		2			44,024
Total realized gains	1,093			26,637		4			44,357
Fixed maturities	(95		)	4,131		(73		)	2,270
Equity securities	(675		)	2,106		—			—
Total realized losses	(770		)	6,237		(73		)	2,270
Net realized investment gains (losses)	$	323		$	32,874	$	(69	)	$	46,627
Nine Months Ended September 30,
Fixed maturities	$	542		$	45,392	$	23		$	1,453
Equity securities	817			3,441		174			111,075
Total realized gains	1,359			48,833		197			112,528
Fixed maturities	(364		)	22,159		(150		)	4,823
Equity securities	(683		)	2,264		(71		)	1,013
Total realized losses	(1,047		)	24,423		(221		)	5,836
Net realized investment gains (losses)	$	312		$	73,256	$	(24	)	$	118,364

Investments Classified by Contractual Maturity Date

The table below summarizes our fixed maturities at September 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.

	September 30, 2015
	Cost or Amortized Cost		Percent of Total		Fair Value		Percent of Total
Due in one year or less	$	55,322	13.3	%	$	55,360	13.2	%
Due after one year through five years	181,013		43.6		182,064		43.5
Due after five years through ten years	134,012		32.2		134,815		32.2
Due after ten years	45,258		10.9		46,160		11.1
Total	$	415,605	100.0	%	$	418,399	100.0	%

Investment Income

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

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Fixed maturities	$	2,078		$	1,611		$	5,879		$	4,237
Equity securities	222			171			656			537
Cash, cash equivalents and short-term investments	4			2			9			7
Other investments	105			23			171			110
Other assets	4			—			10			—
Investment income	2,413			1,807			6,725			4,891
Investment expenses	(92		)	(79		)	(181		)	(227		)
Net investment income	$	2,321		$	1,728		$	6,544		$	4,664

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
September 30, 2015
U.S. government and agency securities	13	$	28	$	22,250	20	$	130	$	11,186
States, municipalities and political subdivisions	34	458		36,940		5	11		6,447
Public utilities	4	1		364		2	18		2,302
Corporate securities	61	841		48,978		8	207		9,123
Redeemable preferred stocks	5	41		566		—	—		—
Total fixed maturities	117	1,369		109,098		35	366		29,058
Public utilities	7	27		683		—	—		—
Other common stocks	97	1,090		10,723		3	60		196
Non-redeemable preferred stocks	14	27		1,164		—	—		—
Total equity securities	118	1,144		12,570		3	60		196
Total	235	$	2,513	$	121,668	38	$	426	$	29,254
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 September 30, 2015 and December 31, 2014:

	Total		Level 1		Level 2		Level 3
September 30, 2015
U.S. government and agency securities	$	118,730	$	—	$	118,730	$	—
Foreign government	3,391		—		3,391		—
States, municipalities and political subdivisions	137,555		—		137,555
Public utilities	9,107		—		9,107
Corporate securities	147,805		—		147,805		—
Redeemable preferred stocks	1,811		1,811		—
Total fixed maturities	418,399		1,811		416,588		—
Public utilities	1,711		1,711		—		—
Other common stocks	20,248		20,248		—
Non-redeemable preferred stocks	2,344		2,344		—		—
Total equity securities	24,303		24,303		—		—
Other long-term investments	3,036		300		831		1,905
Total investments	$	445,738	$	26,414	$	417,419	$	1,905
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 nine months ended September 30, 2015:

	Other Investments
December 31, 2014	$	1,971
Transfers in	—
Partnership income	69
Return of capital	(177		)
Unrealized gains in accumulated other comprehensive income	42
September 30, 2015	$	1,905

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 $2,736,000. 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 September 30, 2015.

	Initial Investment		Book Value		Unrealized Gain		Fair Value
DCR Mortgage Partners VI, L.P.	$	627	$	638	$	231	$	869
RCH Mortgage Fund VI Investors, LP	1,000		965		71		1,036
Kayne Senior Credit Fund II, L.P.	831		831		—		831
Total limited partnerships	$	2,458	$	2,434	$	302	$	2,736
Other short-term investments	300		300		—		300
Total other investments	$	2,758	$	2,734	$	302	$	3,036

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
September 30, 2015
DCR	$	(89	)	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%