
	Cost or Adjusted/Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
September 30, 2020
U.S. government and agency securities	$	118,213	$	4,942	$	25	$	123,130
Foreign government	1,725		144		—		1,869
States, municipalities and political subdivisions	157,280		5,521		120		162,681
Public utilities	39,083		2,872		—		41,955
Corporate securities	331,208		17,120		662		347,666
Mortgage-backed securities	267,532		12,285		400		279,417
Asset-backed securities	62,623		1,055		327		63,351
Redeemable preferred stocks	6,364		66		61		6,369
Total fixed maturities	$	984,028	$	44,005	$	1,595	$	1,026,438

December 31, 2019
U.S. government and agency securities	$	120,260	$	749	$	193	$	120,816
Foreign government	3,975		97		1		4,071
States, municipalities and political subdivisions	131,203		2,611		63		133,751
Public utilities	24,660		700		26		25,334
Corporate securities	281,892		7,123		143		288,872
Mortgage-backed securities	248,206		4,174		477		251,903
Asset-backed securities	56,487		683		41		57,129
Redeemable preferred stocks	2,915		72		2		2,985
Total fixed maturities	$	869,598	$	16,209	$	946	$	884,861


	September 30, 2020				December 31, 2019
	Estimated Fair Value		Percent of Total		Estimated Fair Value		Percent of Total

Mutual funds	$	7,945	21.8	%	$	65,453	56.1	%
Public utilities	—		—		3,663		3.1
Other common stocks	20,343		55.8		44,492		38.2
Nonredeemable preferred stocks	8,182		22.4		3,002		2.6
Total equity securities	$	36,470	100.0	%	$	116,610	100.0	%

When we sell investments, we calculate the gain or loss realized on the sale by comparing the sales price (fair value) to the cost or adjusted/amortized cost of the security sold. We determine the cost or adjusted/amortized cost of the security sold using the specific-identification method. The following table details our realized gains (losses) by major investment category for the three and nine months ended September 30, 2020 and 2019, respectively:


	2020				2019
	Gains (Losses)		Fair Value at Sale		Gains (Losses)		Fair Value at Sale
Three Months Ended September 30,
Fixed maturities	$	708	$	47,153	$	66	$	34,282
Equity securities	26,724		97,725		3		272
Short-term investments	—		1,275		—		2,511
Total realized gains	27,432		146,153		69		37,065
Fixed maturities	(45)		1,203		(48)		2,033
Equity securities	(2,419)		9,509		(3)		14
Short-term investments	—		—		—		10
Total realized losses	(2,464)		10,712		(51)		2,057
Net realized investment gains	$	24,968	$	156,865	$	18	$	39,122
Nine Months Ended September 30,
Fixed maturities	$	1,425	$	139,609	$	597	$	129,364
Equity securities	27,550		101,696		94		814
Short-term investments	—		1,346		—		3,571
Total realized gains	28,975		242,651		691		133,749
Fixed maturities	(439)		7,942		(287)		36,661
Equity securities	(3,577)		12,879		(217)		1,163
Short-term investments	—		128		(1)		1,035
Total realized losses	(4,016)		20,949		(505)		38,859
Net realized investment gains	$	24,959	$	263,600	$	186	$	172,608


	September 30, 2020
	Cost or Amortized Cost		Percent of Total		Fair Value		Percent of Total
Due in one year or less	$	93,973	9.5	%	$	94,650	9.2	%
Due after one year through five years	264,627		26.9		276,916		27.0
Due after five years through ten years	279,045		28.4		295,069		28.7
Due after ten years	16,228		1.6		17,035		1.7
Asset and mortgage backed securities	330,155		33.6		342,768		33.4
Total	$	984,028	100.0	%	$	1,026,438	100.0	%


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Fixed maturities	$	5,744	$	5,757	$	16,806	$	17,379
Equity securities	467		614		1,966		1,728
Cash and cash equivalents	30		1,611		767		3,407
Other investments	62		83		17		847
Other assets	12		11		114		108
Investment income	6,315		8,076		19,670		23,469
Investment expenses	(305)		(273)		(836)		(801)
Net investment income	$	6,010	$	7,803	$	18,834	$	22,668

We have a quarterly portfolio monitoring process to identify and evaluate each fixed-income security whose carrying value may be impaired as the result of a credit loss. For each fixed-income security in an unrealized loss position, if we determine that we intend to sell the security or that it is more likely than not that we will be required to sell the security before recovery of the cost or amortized cost basis for reasons such as liquidity needs, contractual or regulatory requirements, the security's entire decline in fair value is recorded in earnings.

If our management decides not to sell the fixed-income security and it is more likely than not that we will not be required to sell the fixed-income security before recovery of its amortized cost basis, we evaluate whether the decline in fair value has resulted from credit losses or other factors. This is typically indicated by a change in the rating of the security assigned by a rating agency, and any adverse conditions specifically related to the security or industry, among other factors. If the assessment indicates that a credit loss may exist, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses will be recorded in earnings. Credit loss is limited to the difference between a security's amortized cost basis and its fair value. Any additional impairment not recorded through an allowance for credit losses is recognized in other comprehensive income.

During the three and nine months ended September 30, 2020, we determined that none of our fixed-income securities shown in the table below that are in an unrealized loss position have declines in fair value that are reflected as a result of credit losses. Therefore, no credit loss allowance was recorded at September 30, 2020. The issuers of our debt security investments continue to make interest payments on a timely basis. We do not intend to sell, nor is it likely that we would be required to sell the debt securities before we recover our amortized cost basis. Equity securities are reported at fair value with changes in fair value recognized in the valuation of equity investments.


	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, 2020
U.S. government and agency securities	2	$	1	$	1,490	21	$	24	$	12,126

States, municipalities and political subdivisions	20	120		15,811		—	—		—

Corporate securities	45	659		20,229		4	3		1,004
Mortgage-backed securities	51	298		27,677		7	102		3,495
Asset-backed securities	16	297		5,523		1	30		970
Redeemable preferred stocks	28	61		3,075		—	—		—
Total fixed maturities	162	$	1,436	$	73,805	33	$	159	$	17,595

December 31, 2019
U.S. government and agency securities	37	$	89	$	26,372	39	$	104	$	31,364
Foreign governments	—	—		—		2	1		600
States, municipalities and political subdivisions	31	61		14,508		2	2		1,262
Public utilities	9	25		4,626		2	1		250
Corporate securities	42	124		22,435		27	19		9,605
Mortgage-backed securities	89	322		59,101		50	155		12,738
Asset-backed securities	15	34		8,447		5	7		1,259
Redeemable preferred stocks	—	—		—		1	2		97
Total fixed maturities	223	$	655	$	135,489	128	$	291	$	57,175

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The hierarchy for inputs used in determining fair value maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Assets and liabilities recorded on our Unaudited Condensed Consolidated Balance Sheets at fair value are categorized in the fair value hierarchy based on the observability of inputs to the valuation techniques as follows:

Level 3: Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Unobservable inputs reflect our estimates of the assumptions that market participants would use in valuing the assets and liabilities.

We estimate the fair value of our investments using the closing prices on the last business day of the reporting period, obtained from active markets such as the NYSE, Nasdaq and NYSE American. For securities for which quoted prices in active markets are unavailable, we use a third-party pricing service that utilizes quoted prices in active markets for similar instruments, benchmark interest rates, broker quotes and other relevant inputs to estimate the fair value of those securities for which quoted prices are unavailable. Our estimates of fair value reflect the interest rate environment that existed as of the close of business on September 30, 2020 and December 31, 2019. Changes in interest rates subsequent to September 30, 2020 may affect the fair value of our investments.

The fair value of our fixed maturities is initially calculated by a third-party pricing service. Valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of proprietary models, produce valuation information in the form of a single fair value for individual fixed-income and other securities for which a fair value has been requested. The inputs used by the valuation service providers include, but are not limited to, market prices from recently completed transactions and transactions of comparable securities, interest rate yield curves, credit spreads, liquidity spreads, currency rates and other information, as applicable. Credit and liquidity spreads are typically implied from completed transactions and transactions of comparable securities. Valuation service providers also use proprietary discounted cash flow models that are widely accepted in the financial services industry and similar to those used by other market participants to value the same financial information. The valuation models take into account, among other things, market observable information as of the measurement date, as described above, as well as the specific attributes of the security being valued, including its term, interest rate, credit rating, industry sector and, where applicable, collateral quality and other issue or issuer specific information. Executing valuation models effectively requires seasoned professional judgment and experience.

Any change in the estimated fair value of our fixed-income securities would impact the amount of unrealized gain or loss we have recorded, which could change the amount we have recorded for our investments and other comprehensive income on our Unaudited Condensed Consolidated Balance Sheet as of September 30, 2020.


	Total		Level 1		Level 2		Level 3
September 30, 2020
U.S. government and agency securities	$	123,130	$	—	$	123,130	$	—
Foreign government	1,869		—		1,869		—
States, municipalities and political subdivisions	162,681		—		162,681		—
Public utilities	41,955		—		41,955		—
Corporate securities	347,666		—		347,666		—
Mortgage-backed securities	279,417		—		279,417		—
Asset-backed securities	63,351		—		63,351		—
Redeemable preferred stocks	6,369		1,587		4,782		—
Total fixed maturities	1,026,438		1,587		1,024,851		—
Mutual funds	7,945		7,945		—		—

Other common stocks	20,343		20,343		—		—
Non-redeemable preferred stocks	8,182		8,182		—		—
Total equity securities	36,470		36,470		—		—
Other investments (1)	28,100		300		27,800		—
Total investments	$	1,091,008	$	38,357	$	1,052,651	$	—

December 31, 2019
U.S. government and agency securities	$	120,816	$	—	$	120,816	$	—
Foreign government	4,071		—		4,071		—
States, municipalities and political subdivisions	133,751		—		133,751		—
Public utilities	25,334		—		25,334		—
Corporate securities	288,872		—		288,872		—
Mortgage-backed securities	251,903		—		251,903		—
Asset-backed securities	57,129		—		57,129		—
Redeemable preferred stocks	2,985		747		2,238		—
Total fixed maturities	884,861		747		884,114		—
Mutual Funds	65,453		65,453		—		—
Public utilities	3,663		3,663		—		—
Other common stocks	44,492		44,492		—		—
Non-redeemable preferred stocks	3,002		3,002		—		—
Total equity securities	116,610		116,610		—		—
Other investments (1)	499		300		199		—
Total investments	$	1,001,970	$	117,657	$	884,313	$	—

The carrying amounts for the following financial instrument categories approximate their fair values at September 30, 2020 and December 31, 2019, because of their short-term nature: cash and cash equivalents, accrued investment income, premiums receivable, reinsurance recoverable, reinsurance payable, other assets, and other liabilities. The carrying amount of the notes payable to the Florida State Board of Administration, Truist Financial Corporation (Truist) (formerly known as Branch Banking & Trust Corporation or BB&T), and our senior notes approximate fair value as the interest rates and terms are variable.

We are responsible for the determination of fair value and the supporting assumptions and methodologies. We have implemented a system of processes and controls designed to provide assurance that our assets and liabilities are appropriately valued. For fair values received from third parties, our processes are designed to provide assurance that the valuation

For our investments in U.S. government securities that do not have prices in active markets, agency securities, state and municipal governments, and corporate bonds, we obtain the fair values from our investment custodians, which use a third-party valuation service. The valuation service calculates prices for our investments in the aforementioned security types on a month-end basis by using several matrix-pricing methodologies that incorporate inputs from various sources. The model the valuation service uses to price U.S. government securities and securities of states and municipalities incorporates inputs from active market makers and inter-dealer brokers. To price corporate bonds and agency securities, the valuation service calculates non-call yield spreads on all issuers, uses option-adjusted yield spreads to account for any early redemption features, and adds final spreads to the U.S. Treasury curve at 3 p.m. (ET) as of quarter end. Since the inputs the valuation service uses in its calculations are not quoted prices in active markets, but are observable inputs, they represent Level 2 inputs.