Investments (Tables)

9 Months Ended

Sep. 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 September 30, 2016 and December 31, 2015:

	Cost or Adjusted/Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
September 30, 2016
U.S. government and agency securities	$	121,952	$	1,014	$	197	$	122,769
Foreign government	2,032		84		—		2,116
States, municipalities and political subdivisions	169,433		3,723		166		172,990
Public utilities	7,292		237		2		7,527
Corporate securities	161,957		3,911		24		165,844
Redeemable preferred stocks	1,441		55		74		1,422
Total fixed maturities	464,107		9,024		463		472,668
Mutual fund	20,036		—		—		20,036
Public utilities	1,342		182		—		1,524
Other common stocks	19,803		3,811		408		23,206
Non-redeemable preferred stocks	2,913		97		28		2,982
Total equity securities	44,094		4,090		436		47,748
Other long-term investments	5,438		273		21		5,690
Total investments	$	513,639	$	13,387	$	920	$	526,106
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 nine month periods ended September 30, 2016 and 2015:

	2016					2015
	Gains (Losses)			Fair Value at Sale		Gains (Losses)			Fair Value at Sale
Three Months Ended September 30,
Fixed maturities	$	508		$	11,009	$	315		$	24,168
Equity securities	—			—		778			2,469
Total realized gains	508			11,009		1,093			26,637
Fixed maturities	(396		)	7,635		(95		)	4,131
Equity securities	(6		)	17		(675		)	2,106
Total realized losses	(402		)	7,652		(770		)	6,237
Net realized investment gains (losses)	$	106		$	18,661	$	323		$	32,874
Nine Months Ended September 30,
Fixed maturities	$	1,806		$	47,391	$	542		$	45,392
Equity securities	24			10,769		817			3,441
Total realized gains	1,830			58,160		1,359			48,833
Fixed maturities	(1,170		)	20,663		(364		)	22,159
Equity securities	(182		)	17,025		(683		)	2,264
Total realized losses	(1,352		)	37,688		(1,047		)	24,423
Net realized investment gains (losses)	$	478		$	95,848	$	312		$	73,256

Investments Classified by Contractual Maturity Date

The table below summarizes our fixed maturities at September 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.

	September 30, 2016
	Cost or Amortized Cost		Percent of Total		Fair Value		Percent of Total
Due in one year or less	$	33,218	7.2	%	$	33,232	7.0	%
Due after one year through five years	250,847		54.0		253,958		53.7
Due after five years through ten years	131,831		28.4		135,305		28.6
Due after ten years	48,211		10.4		50,173		10.7
Total	$	464,107	100.0	%	$	472,668	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,
	2016			2015			2016			2015
Fixed maturities	$	2,251		$	2,078		$	6,693		$	5,879
Equity securities	259			222			726			656
Cash, cash equivalents and short-term investments	38			4			87			9
Other investments	110			105			266			171
Other assets	5			4			14			10
Investment income	2,663			2,413			7,786			6,725
Investment expenses	(155		)	(92		)	(360		)	(181		)
Net investment income	$	2,508		$	2,321		$	7,426		$	6,544

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, 2016
U.S. government and agency securities	75	$	197	$	51,848	—	$	—	$	—
States, municipalities and political subdivisions	53	166		42,276		—	—		—
Public utilities	4	2		651		—	—		—
Corporate securities	48	14		9,925		3	10		3,038
Redeemable preferred stocks	3	36		312		2	38		230
Total fixed maturities	183	415		105,012		5	48		3,268
Other common stocks	31	269		5,486		17	139		1,887
Non-redeemable preferred stocks	5	8		835		7	20		379
Total equity securities	36	277		6,321		24	159		2,266
Other long-term investments	1	21		987		—	—		—
Total	220	$	713	$	112,320	29	$	207	$	5,534
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 September 30, 2016 and December 31, 2015:

	Total		Level 1		Level 2		Level 3
September 30, 2016
U.S. government and agency securities	$	122,769	$	—	$	122,769	$	—
Foreign government	2,116		—		2,116		—
States, municipalities and political subdivisions	172,990		—		172,990		—
Public utilities	7,527		—		7,527		—
Corporate securities	165,844		—		165,844		—
Redeemable preferred stocks	1,422		1,422		—		—
Total fixed maturities	472,668		1,422		471,246		—
Mutual fund	20,036		20,036		—		—
Public utilities	1,524		1,524		—		—
Other common stocks	23,206		23,206		—		—
Non-redeemable preferred stocks	2,982		2,982		—		—
Total equity securities	47,748		47,748		—		—
Other long-term investments	5,690		300		3,635		1,755
Total investments	$	526,106	$	49,470	$	474,881	$	1,755
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 nine months ended September 30, 2016:

	Other Investments
December 31, 2015	$	1,855
Transfers in	—
Partnership income	115
Return of capital	(237		)
Unrealized gains in accumulated other comprehensive income	22
September 30, 2016	$	1,755

Schedule of Investments in Limited Partnerships

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

	Initial Investment		Book Value		Unrealized Gains (Losses)			Fair Value
DCR Mortgage Partners VI, L.P.	$	450	$	495	$	273		$	768
RCH Mortgage Fund VI Investors, LP	1,000		1,008		(21		)	987
Total Level 3 limited partnership investments	1,450		1,503		252			1,755
Kayne Senior Credit Fund II, L.P.	1,489		1,366		—			1,366
DCR Mortgage Partners VII, L.P.	2,000		2,049		—			2,049
Blackstone Alternative Solutions 2015 Trust	220		220		—			220
Total Level 2 limited partnership investments	3,709		3,635		—			3,635
Total limited partnership investments	$	5,159	$	5,138	$	252		$	5,390
Other short-term investments	300		300		—			300
Total other investments	$	5,459	$	5,438	$	252		$	5,690

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
September 30, 2016
DCR VI	$	(65	)	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%