Investments (Tables)

3 Months Ended

Mar. 31, 2017

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 March 31, 2017 and December 31, 2016:

	Cost or Adjusted/Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
March 31, 2017
U.S. government and agency securities	$	142,284	$	204	$	1,597	$	140,891
Foreign government	2,028		32		—		2,060
States, municipalities and political subdivisions	154,545		1,205		1,164		154,586
Public utilities	12,243		118		68		12,293
Corporate securities	184,582		1,387		834		185,135
Redeemable preferred stocks	1,187		24		52		1,159
Total fixed maturities	496,869		2,970		3,715		496,124
Public utilities	1,342		227		—		1,569
Other common stocks	19,815		5,893		155		25,553
Non-redeemable preferred stocks	2,916		58		57		2,917
Total equity securities	24,073		6,178		212		30,039
Other long-term investments	14,618		345		20		14,943
Total investments	$	535,560	$	9,493	$	3,947	$	541,106
December 31, 2016
U.S. government and agency securities	$	151,656	$	189	$	1,893	$	149,952
Foreign government	2,031		30		—		2,061
States, municipalities and political subdivisions	170,636		1,027		2,551		169,112
Public utilities	7,687		116		73		7,730
Corporate securities	164,424		1,238		1,126		164,536
Redeemable preferred stocks	1,182		5		62		1,125
Total fixed maturities	497,616		2,605		5,705		494,516
Public utilities	1,343		164		—		1,507
Other common stocks	19,815		4,552		319		24,048
Non-redeemable preferred stocks	2,916		10		83		2,843
Total equity securities	24,074		4,726		402		28,398
Other long-term investments	5,493		267		27		5,733
Total investments	$	527,183	$	7,598	$	6,134	$	528,647

Schedule of Realized Gain (Loss)

The following table details our realized gains (losses) by major investment category for the three month periods ended March 31, 2017 and 2016:

	2017					2016
	Gains (Losses)			Fair Value at Sale		Gains (Losses)			Fair Value at Sale
Three Months Ended March 31,
Fixed maturities	$	99		$	12,586	$	1,055		$	25,342
Equity securities	—			—		—			—
Total realized gains	99			12,586		1,055			25,342
Fixed maturities	(450		)	23,548		(678		)	9,162
Equity securities	—			—		(107		)	6,009
Total realized losses	(450		)	23,548		(785		)	15,171
Net realized investment gains (losses)	$	(351	)	$	36,134	$	270		$	40,513

Investments Classified by Contractual Maturity Date

The table below summarizes our fixed maturities at March 31, 2017 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 maturities of those obligations.

	March 31, 2017
	Cost or Amortized Cost		Percent of Total		Fair Value		Percent of Total
Due in one year or less	$	44,213	8.9	%	$	44,213	8.9	%
Due after one year through five years	267,350		53.8	%	267,187		53.9	%
Due after five years through ten years	146,545		29.5	%	146,004		29.4	%
Due after ten years	38,761		7.8	%	38,720		7.8	%
Total	$	496,869	100.0	%	$	496,124	100.0	%

Investment Income

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

	Three Months Ended March 31,
	2017			2016
Fixed maturities	$	2,498		$	2,099
Equity securities	220			263
Cash, cash equivalents and short-term investments	70			17
Other investments	152			13
Other assets	11			4
Investment income	2,951			2,396
Investment expenses	(250		)	(74		)
Net investment income	$	2,701		$	2,322

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
March 31, 2017
U.S. government and agency securities	172	$	1,535	$	99,022	11	$	62	$	3,085
States, municipalities and political subdivisions	122	1,083		91,937		4	81		5,180
Public utilities	20	68		6,230		—	—		—
Corporate securities	236	813		84,342		1	21		1,024
Redeemable preferred stocks	—	—		—		3	52		307
Total fixed maturities	550	3,499		281,531		19	216		9,596
Other common stocks	7	26		530		11	129		967
Non-redeemable preferred stocks	6	24		854		6	33		484
Total equity securities	13	50		1,384		17	162		1,451
Other long-term investments	1	20		961		—	—		—
Total	564	$	3,569	$	283,876	36	$	378	$	11,047
December 31, 2016
U.S. government and agency securities	186	$	1,893	$	111,216	—	$	—	$	—
States, municipalities and political subdivisions	201	2,551		136,360		—	—		—
Public utilities	8	73		2,222		—	—		—
Corporate securities	215	1,100		88,605		1	26		1,021
Redeemable preferred stocks	7	62		764		—	—		—
Total fixed maturities	617	5,679		339,167		1	26		1,021
Other common stocks	16	140		2,450		17	179		1,732
Non-redeemable preferred stocks	12	52		1,830		7	31		369
Total equity securities	28	192		4,280		24	210		2,101
Other long-term investments	1	27		987		—	—		—
Total	646	$	5,898	$	344,434	25	$	236	$	3,122

* 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 March 31, 2017 and December 31, 2016:

	Total		Level 1		Level 2		Level 3
March 31, 2017
U.S. government and agency securities	$	140,891	$	—	$	140,891	$	—
Foreign government	2,060		—		2,060		—
States, municipalities and political subdivisions	154,586		—		154,586		—
Public utilities	12,293		—		12,293		—
Corporate securities	185,135		—		185,135		—
Redeemable preferred stocks	1,159		1,159		—		—
Total fixed maturities	496,124		1,159		494,965		—
Public utilities	1,569		1,569		—		—
Other common stocks	25,553		25,553		—		—
Non-redeemable preferred stocks	2,917		2,917		—		—
Total equity securities	30,039		30,039		—		—
Other long-term investments	14,943		300		12,977		1,666
Total investments	$	541,106	$	31,498	$	507,942	$	1,666
December 31, 2016
U.S. government and agency securities	$	149,952	$	—	$	149,952	$	—
Foreign government	2,061		—		2,061		—
States, municipalities and political subdivisions	169,112		—		169,112		—
Public utilities	7,730		—		7,730		—
Corporate securities	164,536		—		164,536		—
Redeemable preferred stocks	1,125		1,125		—		—
Total fixed maturities	494,516		1,125		493,391		—
Public utilities	1,507		1,507		—		—
Other common stocks	24,048		24,048		—		—
Non-redeemable preferred stocks	2,843		2,843		—		—
Total equity securities	28,398		28,398		—		—
Other long-term investments	5,733		300		3,735		1,698
Total investments	$	528,647	$	29,823	$	497,126	$	1,698

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 three months ended March 31, 2017:

	Other Investments
December 31, 2016	$	1,698
Transfers in	—
Partnership income	4
Return of capital	(121		)
Unrealized gains in accumulated other comprehensive income	85
March 31, 2017	$	1,666

Schedule of Investments in Limited Partnerships

The information presented in the table below is as of March 31, 2017.

	Initial Investment		Book Value		Unrealized Gain		Unrealized Loss		Fair Value
DCR Mortgage Partners VI, L.P.	$	312	$	360	$	345	$	—	$	705
RCH Mortgage Fund VI Investors, LP	1,000		981		—		20		961
Total Level 3 limited partnership investments	1,312		1,341		345		20		1,666
Kayne Senior Credit Fund II, L.P.	1,658		1,509		—		—		1,509
DCR Mortgage Partners VII, L.P.	2,000		2,010		—		—		2,010
Blackstone Alternative Solutions 2015 Trust	335		335		—		—		335
Green Street Power Partners	9,123		9,123		—		—		9,123
Total Level 2 limited partnership investments	13,116		12,977		—		—		12,977
Total limited partnership investments	$	14,428	$	14,318	$	345	$	20	$	14,643
Other short-term investments	300		300		—		—		300
Total other investments	$	14,728	$	14,618	$	345	$	20	$	14,943

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
March 31, 2017
DCR VI	$	(47	)	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, 2016
DCR VI	$	(56	)	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%