Investments (Tables)

9 Months Ended

Sep. 30, 2019

Schedule of Available-for-sale Securities Reconciliation

The following table details fixed-maturity available-for-sale securities, by major investment category, at September 30, 2019 and December 31, 2018:



	Cost or Adjusted/Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
September 30, 2019
U.S. government and agency securities	$	114,446	$	1,168	$	201	$	115,413
Foreign government	3,980		93		1		4,072
States, municipalities and political subdivisions	134,605		2,892		50		137,447
Public utilities	29,394		763		29		30,128
Corporate securities	289,456		7,155		118		296,493
Mortgage-backed securities	269,252		6,245		243		275,254
Asset backed securities	59,459		849		21		60,287
Redeemable preferred stocks	2,120		46		48		2,118
Total fixed maturities	$	902,712	$	19,211	$	711	$	921,212

December 31, 2018
U.S. government and agency securities	$	100,240	$	50	$	1,315	$	98,975
Foreign government	3,993		5		16		3,982
States, municipalities and political subdivisions	145,415		354		1,301		144,468
Public utilities	24,560		11		681		23,890
Corporate securities	307,875		272		6,159		301,988
Mortgage-backed securities	227,004		333		3,483		223,854
Asset-backed securities	64,071		105		139		64,037
Redeemable preferred stocks	1,287		3		139		1,151
Total fixed maturities	$	874,445	$	1,133	$	13,233	$	862,345

Equity Securities Fair Value

Equity securities are summarized as follows:



	September 30, 2019				December 31, 2018
	Estimated Fair Value		Percent of Total		Estimated Fair Value		Percent of Total

Mutual funds	$	60,137	57.5	%	$	50,016	61.8	%
Public utilities	2,917		2.8	%	1,759		2.2
Other common stocks	39,774		38.0	%	27,198		33.6
Nonredeemable preferred stocks	1,801		1.7	%	2,005		2.4
Total equity securities	$	104,629	100.0	%	$	80,978	100.0	%

Schedule of Realized Gain (Loss)

The following table details our realized gains (losses) by major investment category for the three and nine months ended September 30, 2019 and 2018:



	2019					2018
	Gains (Losses)			Fair Value at Sale		Gains (Losses)			Fair Value at Sale
Three Months Ended September 30,
Fixed maturities	$	66		$	34,282	$	12		$	4,864
Equity securities	3			272		8			411
Short-term investments	—			2,511		—			—
Total realized gains	69			37,065		20			5,275
Fixed maturities	(48		)	2,033		(441		)	46,268
Equity securities	(3		)	14		(26		)	387
Short-term investments	—			10		—			—
Total realized losses	(51		)	2,057		(467		)	46,655
Net realized investment gains (losses)	$	18		$	39,122	$	(447	)	$	51,930

Nine Months Ended September 30,
Fixed maturities	$	597		$	129,364	$	68		$	11,745
Equity securities	94			814		517			1,593
Short-term investments	—			3,571		—			—
Total realized gains	691			133,749		585			13,338
Fixed maturities	(287		)	36,661		(1,233		)	116,587
Equity securities	(217		)	1,163		(26		)	387
Short-term investments	(1		)	1,035		—			—
Total realized losses	(505		)	38,859		(1,259		)	116,974
Net realized investment gains (losses)	$	186		$	172,608	$	(674	)	$	130,312

Investments Classified by Contractual Maturity Date

The table below summarizes our fixed maturities at September 30, 2019 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.



	September 30, 2019
	Cost or Amortized Cost		Percent of Total		Fair Value		Percent of Total
Due in one year or less	$	101,063	11.2	%	$	101,143	11.0	%
Due after one year through five years	297,049		32.9	%	301,240		32.7	%
Due after five years through ten years	168,910		18.7	%	175,932		19.1	%
Due after ten years	6,979		0.8	%	7,356		0.8	%
Asset and mortgage backed securities	328,711		36.4	%	335,541		36.4	%
Total	$	902,712	100.0	%	$	921,212	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,
	2019			2018			2019			2018
Fixed maturities	$	5,757		$	5,725		$	17,379		$	15,929
Equity securities	614			525			1,728			1,455
Cash and cash equivalents	1,611			588			3,407			1,427
Other investments	83			41			847			830
Other assets	11			9			108			24
Investment income	8,076			6,888			23,469			19,665
Investment expenses	(273		)	(267		)	(801		)	(756		)
Net investment income	$	7,803		$	6,621		$	22,668		$	18,909

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
September 30, 2019
U.S. government and agency securities	20	$	50	$	18,550	40	$	151	$	34,669
Foreign governments	—	—		—		2	1		600
States, municipalities and political subdivisions	24	40		21,349		4	10		3,188
Public utilities	9	28		4,634		2	1		250
Corporate securities	49	62		21,686		45	56		18,617
Mortgage-backed securities	52	84		25,835		56	159		16,691
Asset backed securities	14	12		7,466		6	9		2,260
Redeemable preferred stocks	3	12		1,104		2	36		199
Total fixed maturities	171	$	288	$	100,624	157	$	423	$	76,474

December 31, 2018
U.S. government and agency securities	45	$	111	$	28,464	55	$	1,204	$	61,264
Foreign governments	5	16		2,978		—	—		—
States, municipalities and political subdivisions	49	272		38,469		91	1,029		68,115
Public utilities	30	374		13,685		19	307		7,805
Corporate securities	351	3,149		144,769		208	3,010		117,351
Mortgage-backed securities	87	1,303		88,754		135	2,180		70,510
Asset-backed securities	67	136		41,871		7	3		1,372
Redeemable preferred stocks	8	62		711		2	77		8,377
Total fixed maturities	642	$	5,423	$	359,701	517	$	7,810	$	334,794

⁽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 September 30, 2019 and December 31, 2018:



	Total		Level 1		Level 2		Level 3
September 30, 2019
U.S. government and agency securities	$	115,413	$	—	$	115,413	$	—
Foreign government	4,072		—		4,072		—
States, municipalities and political subdivisions	137,447		—		137,447		—
Public utilities	30,128		—		30,128		—
Corporate securities	296,493		—		296,493		—
Mortgage-backed securities	275,254		—		275,254		—
Asset-backed securities	60,287		—		60,287		—
Redeemable preferred stocks	2,118		594		1,524		—
Total fixed maturities	921,212		594		920,618		—
Mutual funds	60,137		56,730		3,407		—
Public utilities	2,917		2,917		—		—
Other common stocks	39,774		39,774		—		—
Non-redeemable preferred stocks	1,801		1,801		—		—
Total equity securities	104,629		101,222		3,407		—
Other investments ⁽¹⁾	763		300		463		—
Total investments	$	1,026,604	$	102,116	$	924,488	$	—

December 31, 2018
U.S. government and agency securities	$	98,975	$	—	$	98,975	$	—
Foreign government	3,982		—		3,982		—
States, municipalities and political subdivisions	144,468		—		144,468		—
Public utilities	23,890		—		23,890		—
Corporate securities	301,988		—		301,988		—
Mortgage-backed securities	223,854		—		223,854		—
Asset-backed securities	64,037		—		64,037		—
Redeemable preferred stocks	1,151		790		361		—
Total fixed maturities	862,345		790		861,555		—
Mutual Funds	50,016		47,223		2,793		—
Public utilities	1,759		1,759		—		—
Other common stocks	27,198		27,198		—		—
Non-redeemable preferred stocks	2,005		2,005		—		—
Total equity securities	80,978		78,185		2,793		—
Other investments ⁽¹⁾	300		300		—		—
Total investments	$	943,623	$	79,275	$	864,348	$	—

⁽¹⁾ Other investments included in the fair value hierarchy exclude these limited partnership interests that are measured at estimated fair value using the net asset value per share (or its equivalent) practical expedient.

Schedule of Investments in Limited Partnerships

The information presented in the table below is as of September 30, 2019:



	Book Value		Unrealized Gain		Unrealized Loss		Fair Value
Limited partnership investments ⁽¹⁾	$	8,482	$	779	$	—	$	9,261
Certificates of deposit	300		—		—		300
Short-term investments	463		—		—		463
Total other investments	$	9,245	$	779	$	—	$	10,024

Restrictions on Cash and Cash Equivalents

The following table presents the components of restricted assets:



	September 30, 2019		December 31, 2018
Trust funds	$	73,607	$	70,208
Cash on deposit (regulatory deposits)	1,242		1,233
Total restricted cash	$	74,849	$	71,441