Investments (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2017 and December 31, 2016:



	Cost or Adjusted/Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
June 30, 2017
U.S. government and agency securities	$	199,665	$	561	$	1,343	$	198,883
Foreign government	2,027		35		—		2,062
States, municipalities and political subdivisions	197,408		2,154		547		199,015
Public utilities	19,079		175		46		19,208
Corporate securities	273,613		2,298		618		275,293
Asset backed securities	20,541		22		7		20,556
Redeemable preferred stocks	1,191		30		55		1,166
Total fixed maturities	713,524		5,275		2,616		716,183
Mutual funds	28,696		75		223		28,548
Public utilities	2,591		270		49		2,812
Other common stocks	19,804		6,739		110		26,433
Non-redeemable preferred stocks	1,557		81		—		1,638
Total equity securities	52,648		7,165		382		59,431
Other long-term investments	7,506		342		—		7,848
Total investments	$	773,678	$	12,782	$	2,998	$	783,462

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 and six month periods ended June 30, 2017 and 2016:



	2017					2016
	Gains (Losses)			Fair Value at Sale		Gains (Losses)			Fair Value at Sale
Three Months Ended June 30,
Fixed maturities	$	41		$	6,310	$	243		$	11,040
Equity securities	7			19		24			10,769
Total realized gains	48			6,329		267			21,809
Fixed maturities	(170		)	13,848		(96		)	3,866
Equity securities	(10		)	100		(69		)	10,999
Total realized losses	(180		)	13,948		(165		)	14,865
Net realized investment gains (losses)	$	(132	)	$	20,277	$	102		$	36,674

Six Months Ended June 30,
Fixed maturities	$	140		$	18,896	$	1,298		$	36,382
Equity securities	7			19		24			10,769
Total realized gains	147			18,915		1,322			47,151
Fixed maturities	(620		)	37,396		(774		)	13,028
Equity securities	(10		)	100		(176		)	17,008
Total realized losses	(630		)	37,496		(950		)	30,036
Net realized investment gains (losses)	$	(483	)	$	56,411	$	372		$	77,187

Investments Classified by Contractual Maturity Date

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



	June 30, 2017
	Cost or Amortized Cost		Percent of Total		Fair Value		Percent of Total
Due in one year or less	$	69,381	9.7	%	$	69,331	9.7	%
Due after one year through five years	393,536		55.2	%	394,736		55.1	%
Due after five years through ten years	234,739		32.9	%	236,103		33.0	%
Due after ten years	15,868		2.2	%	16,013		2.2	%
Total	$	713,524	100.0	%	$	716,183	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,
	2017			2016			2017			2016
Fixed maturities	$	4,087		$	2,343		$	6,585		$	4,442
Equity securities	345			204			565			467
Cash and cash equivalents	90			32			160			49
Other investments	109			143			261			156
Other assets	6			5			17			9
Investment income	4,637			2,727			7,588			5,123
Investment expenses	(19		)	(131		)	(269		)	(205		)
Net investment income	$	4,618		$	2,596		$	7,319		$	4,918

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⁽¹⁾	Gross Unrealized Losses		Fair Value		Number of Securities⁽¹⁾	Gross Unrealized Losses		Fair Value
June 30, 2017
U.S. government and agency securities	168	$	1,154	$	102,522	21	$	189	$	5,858
States, municipalities and political subdivisions	102	483		74,197		4	64		4,717
Public utilities	12	46		3,080		—	—		—
Corporate securities	195	601		83,816		1	17		1,025
Asset backed securities	19	7		13,848		—	—		—
Redeemable preferred stocks	—	—		—		3	55		310
Total fixed maturities	496	2,291		277,463		29	325		11,910
Mutual Fund	1	223		24,767		—	—		—
Public utilities	5	22		594		5	27		381
Other common stocks	11	61		1,463		4	49		442
Total equity securities	17	306		26,824		9	76		823
Total	513	$	2,597	$	304,287	38	$	401	$	12,733

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 June 30, 2017 and December 31, 2016:



	Total		Level 1		Level 2		Level 3
June 30, 2017
U.S. government and agency securities	$	198,883	$	—	$	198,883	$	—
Foreign government	2,062		—		2,062		—
States, municipalities and political subdivisions	199,015		—		199,015		—
Public utilities	19,208		—		19,208		—
Corporate securities	275,293		—		275,293		—
Asset backed securities	20,556		—		20,556		—
Redeemable preferred stocks	1,166		1,166		—		—
Total fixed maturities	716,183		1,166		715,017		—
Mutual funds	28,548		28,548		—		—
Public utilities	2,812		2,812		—		—
Other common stocks	26,433		26,433		—		—
Non-redeemable preferred stocks	1,638		1,638		—		—
Total equity securities	59,431		59,431		—		—
Other long-term investments	7,848		300		6,852		696
Total investments	$	783,462	$	60,897	$	721,869	$	696

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 six months ended June 30, 2017:



	Other Investments
December 31, 2016	$	1,698
Transfers in	—
Transfers out	(990		)
Partnership income	25
Return of capital	(139		)
Unrealized gains in accumulated other comprehensive income	102
June 30, 2017	$	696

Schedule of Investments in Limited Partnerships

The information presented in the table below is as of June 30, 2017.



	Initial Investment		Book Value		Unrealized Gain		Unrealized Loss		Fair Value
DCR Mortgage Partners VI, L.P.	$	310	$	354	$	342	$	—	$	696
Total Level 3 limited partnership investments	310		354		342		—		696
Kayne Senior Credit Fund II, L.P.	1,658		1,491		—		—		1,491
DCR Mortgage Partners VII, L.P.	4,000		4,036		—		—		4,036
RCH Mortgage Fund VI Investors, LP	1,000		990		—		—		990
Blackstone Alternative Solutions 2015 Trust	365		335		—		—		335
Total Level 2 limited partnership investments	7,023		6,852		—		—		6,852
Total limited partnership investments	$	7,333	$	7,206	$	342	$	—	$	7,548
Other short-term investments	300		300		—		—		300
Total other investments	$	7,633	$	7,506	$	342	$	—	$	7,848

Quantitative Impact of Unobservable Inputs

The DCR VI investment was valued using a duration of 60 months for both periods presented below.



	Fair Value			Valuation		Rate
	Impact			Technique	Unobservable Input	Adjustment
June 30, 2017
DCR VI	$	(46	)	Discounted cash flow	Discount rate based on D&B paydex scale	2.35%

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%