Investments (Tables)

6 Months Ended

Jun. 30, 2016

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, 2016 and December 31, 2015:

	Cost or Adjusted/Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
June 30, 2016
U.S. government and agency securities	$	98,267	$	1,664	$	47	$	99,884
Foreign government	3,062		101		—		3,163
States, municipalities and political subdivisions	171,011		6,218		59		177,170
Public utilities	7,154		270		—		7,424
Corporate securities	172,257		4,462		483		176,236
Redeemable preferred stocks	1,872		59		83		1,848
Total fixed maturities	453,623		12,774		672		465,725
Public utilities	1,343		271		—		1,614
Other common stocks	19,824		3,820		528		23,116
Non-redeemable preferred stocks	2,879		160		17		3,022
Total equity securities	24,046		4,251		545		27,752
Other long-term investments	5,419		278		18		5,679
Total investments	$	483,088	$	17,303	$	1,235	$	499,156
December 31, 2015
U.S. government and agency securities	$	81,973	$	148	$	474	$	81,647
Foreign government	2,038		37		—		2,075
States, municipalities and political subdivisions	154,004		2,391		490		155,905
Public utilities	8,398		128		33		8,493
Corporate securities	148,170		880		2,292		146,758
Redeemable preferred stocks	1,832		37		49		1,820
Total fixed maturities	396,415		3,621		3,338		396,698
Mutual fund	26,357		—		14		26,343
Public utilities	1,342		44		34		1,352
Other common stocks	18,624		2,615		545		20,694
Non-redeemable preferred stocks	2,356		67		6		2,417
Total equity securities	48,679		2,726		599		50,806
Other long-term investments	4,980		230		—		5,210
Total investments	$	450,074	$	6,577	$	3,937	$	452,714

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, 2016 and 2015:

	2016					2015
	Gains (Losses)			Fair Value at Sale		Gains (Losses)			Fair Value at Sale
Three Months Ended June 30,
Fixed maturities	$	243		$	11,040	$	—		$	261
Equity securities	24			10,769		36			734
Total realized gains	267			21,809		36			995
Fixed maturities	(96		)	3,866		(163		)	7,494
Equity securities	(69		)	10,999		(6		)	125
Total realized losses	(165		)	14,865		(169		)	7,619
Net realized investment gains (losses)	$	102		$	36,674	$	(133	)	$	8,614
Six Months Ended June 30,
Fixed maturities	$	1,298		$	36,382	$	227		$	21,224
Equity securities	24			10,769		39			972
Total realized gains	1,322			47,151		266			22,196
Fixed maturities	(774		)	13,028		(269		)	18,028
Equity securities	(176		)	17,008		(8		)	158
Total realized losses	(950		)	30,036		(277		)	18,186
Net realized investment gains (losses)	$	372		$	77,187	$	(11	)	$	40,382

Investments Classified by Contractual Maturity Date

The table below summarizes our fixed maturities at June 30, 2016 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, 2016
	Cost or Amortized Cost		Percent of Total		Fair Value		Percent of Total
Due in one year or less	$	38,741	8.5	%	$	38,780	8.3	%
Due after one year through five years	224,697		49.5		228,833		49.1
Due after five years through ten years	142,564		31.5		147,667		31.7
Due after ten years	47,621		10.5		50,445		10.9
Total	$	453,623	100.0	%	$	465,725	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,
	2016			2015			2016			2015
Fixed maturities	$	2,343		$	1,979		$	4,442		$	3,801
Equity securities	204			231			467			434
Cash, cash equivalents and short-term investments	32			2			49			5
Other investments	143			24			156			66
Other assets	5			3			9			6
Investment income	2,727			2,239			5,123			4,312
Investment expenses	(131		)	(2		)	(205		)	(89		)
Net investment income	$	2,596		$	2,237		$	4,918		$	4,223

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, 2016
U.S. government and agency securities	8	$	13	$	4,817	12	$	34	$	4,689
States, municipalities and political subdivisions	18	59		20,600		—	—		—
Corporate securities	11	27		4,004		17	456		10,248
Redeemable preferred stocks	7	53		724		2	30		235
Total fixed maturities	44	152		30,145		31	520		15,172
Other common stocks	44	388		6,868		13	140		1,415
Non-redeemable preferred stocks	1	2		128		8	15		645
Total equity securities	45	390		6,996		21	155		2,060
Other long-term investments	1	18		988		—	—		—
Total	90	$	560	$	38,129	52	$	675	$	17,232
December 31, 2015
U.S. government and agency securities	73	$	265	$	44,786	21	$	209	$	11,250
States, municipalities and political subdivisions	61	463		56,971		5	27		7,620
Public utilities	8	4		1,961		1	29		1,015
Corporate securities	242	2,025		92,429		9	267		10,047
Redeemable preferred stocks	7	49		746		—	—		—
Total fixed maturities	391	2,806		196,893		36	532		29,932
Mutual Funds	1	14		26,343		—	—		—
Public utilities	4	34		697		—	—		—
Other common stocks	63	497		6,665		3	48		118
Non-redeemable preferred stocks	19	6		1,161		—	—		—
Total equity securities	87	551		34,866		3	48		118
Total	478	$	3,357	$	231,759	39	$	580	$	30,050

* 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, 2016 and December 31, 2015:

	Total		Level 1		Level 2		Level 3
June 30, 2016
U.S. government and agency securities	$	99,884	$	—	$	99,884	$	—
Foreign government	3,163		—		3,163		—
States, municipalities and political subdivisions	177,170		—		177,170		—
Public utilities	7,424		—		7,424		—
Corporate securities	176,236		—		176,236		—
Redeemable preferred stocks	1,848		1,848		—		—
Total fixed maturities	465,725		1,848		463,877		—
Public utilities	1,614		1,614		—		—
Other common stocks	23,116		23,116		—		—
Non-redeemable preferred stocks	3,022		3,022		—		—
Total equity securities	27,752		27,752		—		—
Other long-term investments	5,679		300		3,569		1,810
Total investments	$	499,156	$	29,900	$	467,446	$	1,810
December 31, 2015
U.S. government and agency securities	$	81,647	$	—	$	81,647	$	—
Foreign government	2,075		—		2,075		—
States, municipalities and political subdivisions	155,905		—		155,905		—
Public utilities	8,493		—		8,493		—
Corporate securities	146,758		—		146,758		—
Redeemable preferred stocks	1,820		1,820		—		—
Total fixed maturities	396,698		1,820		394,878		—
Mutual Funds	26,343		26,343		—		—
Public utilities	1,352		1,352		—		—
Other common stocks	20,694		20,694		—		—
Non-redeemable preferred stocks	2,417		2,417		—		—
Total equity securities	50,806		50,806		—		—
Other long-term investments	5,210		300		3,055		1,855
Total investments	$	452,714	$	52,926	$	397,933	$	1,855

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, 2016:

	Other Investments
December 31, 2015	$	1,855
Transfers in	—
Partnership income	90
Return of capital	(165		)
Unrealized gains in accumulated other comprehensive income	30
June 30, 2016	$	1,810

Schedule of Investments in Limited Partnerships

The information presented in the table below is as of June 30, 2016.

	Initial Investment		Book Value		Unrealized Gains (Losses)			Fair Value
DCR Mortgage Partners VI, L.P.	$	517	$	544	$	278		$	822
RCH Mortgage Fund VI Investors, LP	1,000		1,006		(18		)	988
Total Level 3 limited partnership investments	1,517		1,550		260			1,810
Kayne Senior Credit Fund II, L.P.	1,489		1,426		—			1,426
DCR Mortgage Partners VII, L.P.	2,000		1,978		—			1,978
Blackstone Alternative Solutions 2015 Trust	165		165		—			165
Total Level 2 limited partnership investments	3,654		3,569		—			3,569
Total limited partnership investments	$	5,171	$	5,119	$	260		$	5,379
Other short-term investments	300		300		—			300
Total other investments	$	5,471	$	5,419	$	260		$	5,679

Quantitative Impact of Unobservable Inputs

The DCR VI 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, 2016
DCR VI	$	(73	)	Discounted cash flow	Discount rate based on D&B paydex scale	2.35%
RCH	$	(341	)	Discounted cash flow	Discount rate based on D&B paydex scale	7.35%
December 31, 2015
DCR VI	$	(88	)	Discounted cash flow	Discount rate based on D&B paydex scale	2.35%
RCH	$	(341	)	Discounted cash flow	Discount rate based on D&B paydex scale	7.35%