Investments (Tables)

3 Months Ended

Mar. 31, 2018

Investments, Debt and Equity Securities [Abstract]

Schedule of Available-for-sale Securities Reconciliation

The following table details fixed maturity available-for-sale and equity securities, by major investment category, at March 31, 2018 and December 31, 2017:



	Cost or Adjusted/Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
March 31, 2018
U.S. government and agency securities	$	247,505	$	71	$	5,317	$	242,259
Foreign government	2,020		—		8		2,012
States, municipalities and political subdivisions	187,419		657		2,208		185,868
Public utilities	24,587		26		444		24,169
Corporate securities	291,843		422		5,018		287,247
Asset backed securities	44,943		17		57		44,903
Redeemable preferred stocks	760		12		85		687
Total fixed maturities	$	799,077	$	1,205	$	13,137	$	787,145

Mutual funds	$	44,272	$	2,418	$	454	$	46,236
Public utilities	1,343		294		34		1,603
Other common stocks	19,967		7,841		231		27,577
Non-redeemable preferred stocks	1,718		38		17		1,739
Total equity securities	$	67,300	$	10,591	$	736	$	77,155

December 31, 2017
U.S. government and agency securities	$	237,809	$	275	$	2,193	$	235,891
Foreign government	2,022		14		—		2,036
States, municipalities and political subdivisions	200,706		1,929		1,123		201,512
Public utilities	20,215		127		85		20,257
Corporate securities	287,025		1,746		1,209		287,562
Asset-backed securities	14,902		23		20		14,905
Redeemable preferred stocks	755		11		74		692
Total fixed maturities	$	763,434	$	4,125	$	4,704	$	762,855

Mutual fund	$	29,079	$	2,845	$	—	$	31,924
Public utilities	1,343		359		—		1,702
Other common stocks	18,856		9,093		47		27,902
Non-redeemable preferred stocks	1,718		53		4		1,767
Total equity securities	$	50,996	$	12,350	$	51	$	63,295

Schedule of Realized Gain (Loss)

The following table details our realized gains (losses) by major investment category for the three months ended March 31, 2018 and 2017:



	2018					2017
	Gains (Losses)			Fair Value at Sale		Gains (Losses)			Fair Value at Sale
Three Months Ended March 31,
Fixed maturities	$	42		$	3,445	$	99		$	12,586
Equity securities	450			1,408		—			—
Total realized gains	492			4,853		99			12,586
Fixed maturities	(281		)	32,228		(450		)	23,548
Equity securities	—			—		—			—
Total realized losses	(281		)	32,228		(450		)	23,548
Net realized investment gains (losses)	$	211		$	37,081	$	(351	)	$	36,134

Investments Classified by Contractual Maturity Date

The table below summarizes our fixed maturities at March 31, 2018 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, 2018
	Cost or Amortized Cost		Percent of Total		Fair Value		Percent of Total
Due in one year or less	$	61,999	7.8	%	$	61,715	7.8	%
Due after one year through five years	325,696		40.8	%	321,403		40.8	%
Due after five years through ten years	185,127		23.2	%	181,628		23.1	%
Due after ten years	15,800		2.0	%	15,459		2.0	%
Asset and mortgage backed securities	210,455		26.2	%	206,940		26.3	%
Total	$	799,077	100.0	%	$	787,145	100.0	%

Investment Income

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



	Three Months Ended March 31,
	2018			2017
Fixed maturities	$	4,812		$	2,498
Equity securities	463			220
Cash and cash equivalents	222			70
Other investments	182			152
Other assets	7			11
Investment income	5,686			2,951
Investment expenses	(243		)	(250		)
Net investment income	$	5,443		$	2,701

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
March 31, 2018
U.S. government and agency securities	177	$	3,252	$	163,624	120	$	2,065	$	69,114
Foreign governments	2	8		2,012		—	—		—
States, municipalities and political subdivisions	159	1,773		133,508		24	435		16,616
Public utilities	39	381		21,114		5	63		994
Corporate securities	500	4,406		240,811		52	612		17,182
Asset backed securities	31	57		31,532		—	—		—
Redeemable preferred stocks	1	4		121		3	81		302
Total fixed maturities	909	9,881		592,722		204	3,256		104,208
Mutual Fund	2	454		14,743		—	—		—
Public utilities	2	34		416		—	—		—
Other common stocks	23	202		3,236		1	29		97
Non-redeemable preferred stocks	13	17		604		—	—		—
Total equity securities	40	707		18,999		1	29		97
Total	949	$	10,588	$	611,721	205	$	3,285	$	104,305

December 31, 2017
U.S. government and agency securities	129	$	641	$	103,328	123	$	1,552	$	74,190
States, municipalities and political subdivisions	106	734		91,245		31	389		19,718
Public utilities	16	44		7,052		5	41		1,016
Corporate securities	263	871		134,755		52	338		16,476
Asset-backed securities	18	20		11,682		—	—		—
Redeemable preferred stocks	—	—		—		3	74		303
Total fixed maturities	532	2,310		348,062		214	2,394		111,703
Mutual Funds	1	—		131		—	—		—
Other common stocks	5	47		748		—	—		—
Non-redeemable preferred stocks	4	4		87		—	—		—
Total equity securities	10	51		966		—	—		—
Total	542	$	2,361	$	349,028	214	$	2,394	$	111,703

⁽¹⁾ This amount represents the actual number of discrete securities, not the number of shares or units 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, 2018 and December 31, 2017:



	Total		Level 1		Level 2		Level 3
March 31, 2018
U.S. government and agency securities	$	242,259	$	—	$	242,259	$	—
Foreign government	2,012		—		2,012		—
States, municipalities and political subdivisions	185,868		—		185,868		—
Public utilities	24,169		—		24,169		—
Corporate securities	287,247		—		287,247		—
Asset backed securities	44,903		—		44,903		—
Redeemable preferred stocks	687		687		—		—
Total fixed maturities	787,145		687		786,458		—
Mutual funds	46,236		46,236		—		—
Public utilities	1,603		1,603		—		—
Other common stocks	27,577		27,577		—		—
Non-redeemable preferred stocks	1,739		1,739		—		—
Total equity securities	77,155		77,155		—		—
Other long-term investments	8,144		300		7,190		654
Total investments	$	872,444	$	78,142	$	793,648	$	654

December 31, 2017
U.S. government and agency securities	$	235,891	$	—	$	235,891	$	—
Foreign government	2,036		—		2,036		—
States, municipalities and political subdivisions	201,512		—		201,512		—
Public utilities	20,257		—		20,257		—
Corporate securities	287,562		—		287,562		—
Asset-backed securities	14,905		—		14,905		—
Redeemable preferred stocks	692		692		—		—
Total fixed maturities	762,855		692		762,163		—
Mutual Funds	31,924		31,924		—		—
Public utilities	1,702		1,702		—		—
Other common stocks	27,902		27,902		—		—
Non-redeemable preferred stocks	1,767		1,767		—		—
Total equity securities	63,295		63,295		—		—
Other long-term investments	8,381		300		7,447		634
Total investments	$	834,531	$	64,287	$	769,610	$	634

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, 2018:



	Other Investments
December 31, 2017	$	634
Partnership income	53
Return of capital	(90		)
Unrealized gains in accumulated other comprehensive income	57
March 31, 2018	$	654

Schedule of Investments in Limited Partnerships

The information presented in the table below is as of March 31, 2018:



	Book Value		Unrealized Gain		Unrealized Loss		Fair Value
Limited partnership investments	$	7,463	$	381	$	—	$	7,844
Certificates of deposit	300		—		—		300
Total other investments	$	7,763	$	381	$	—	$	8,144

Quantitative Impact of Unobservable Inputs



	Fair Value			Valuation		Rate
	Impact			Technique	Unobservable Input	Adjustment
March 31, 2018
DCR VI	$	(33	)	Discounted cash flow	Discount rate based on D&B paydex scale	2.35%

December 31, 2017
DCR VI	$	(37	)	Discounted cash flow	Discount rate based on D&B paydex scale	2.35%