Investments

12 Months Ended

Dec. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Investments

. Investments

The cost or amortized cost, gross unrealized gain or loss, and estimated fair value of the investments in securities classified as available-for-sale at December 31, 2022 and 2021 were as follows (dollars in thousands):

	December 31, 2022
	Cost or		Gross Unrealized
	Amortized Cost		Gains		Losses			Estimated Fair Value
Debt securities:
U.S. Government	$	7,833	$	—	$	(335	)	$	7,498
State and local government		25,487		1		(4,672	)		20,816
Corporate debt		35,347		—		(4,788	)		30,559
Asset-backed securities		21,742		—		(1,246	)		20,496
Mortgage-backed securities		29,194		—		(5,157	)		24,037
Commercial mortgage-backed securities		3,414		—		(186	)		3,228
Collateralized mortgage obligations		4,102		—		(535	)		3,567
Total debt securities available for sale	$	127,119	$	1	$	(16,919	)	$	110,201

	December 31, 2021
	Cost or		Gross Unrealized
	Amortized Cost		Gains		Losses			Estimated Fair Value
Debt securities:
U.S. Government	$	20,723	$	74	$	(77	)	$	20,720
State and local government		30,063		555		(189	)		30,429
Corporate debt		30,808		88		(550	)		30,346
Asset-backed securities		28,652		10		(224	)		28,438
Mortgage-backed securities		33,178		105		(762	)		32,521
Commercial mortgage-backed securities		1,659		31		—			1,690
Collateralized mortgage obligations		5,649		35		(45	)		5,639
Total debt securities available for sale	$	150,732	$	898	$	(1,847	)	$	149,783

The following table summarizes the aggregate fair value and gross unrealized losses, by security type, of the available-for-sale securities in unrealized loss positions. The table segregates the holdings based on the length of time that individual securities have been in a continuous unrealized loss position (dollars in thousands):

	December 31, 2022
	Less than 12 months							12 months or More							Total
	No. of Issues		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses			No. of Issues		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses			No. of Issues		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses
Debt securities:
U.S. Government		8	$	3,534	$	(135	)		5	$	3,964	$	(200	)		13	$	7,498	$	(335	)
State and local government		77		12,966		(2,318	)		45		7,147		(2,354	)		122		20,113		(4,672	)
Corporate debt		27		10,069		(1,373	)		42		20,890		(3,415	)		69		30,959		(4,788	)
Asset-backed securities		6		3,188		(76	)		20		17,308		(1,170	)		26		20,496		(1,246	)
Mortgage-backed securities		57		4,006		(573	)		12		20,031		(4,584	)		69		24,037		(5,157	)
Commercial mortgage   -backed securities		4		3,205		(186	)		-		-		-			4		3,205		(186	)
Collateralized mortgage   obligations		26		1,789		(196	)		9		1,802		(339	)		35		3,591		(535	)
Total debt securities   available for sale		205		38,757		(4,857	)		133		71,142		(12,062	)		338		109,899		(16,919	)

	December 31, 2021
	Less than 12 months							12 months or More							Total
	No. of Issues		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses			No. of Issues		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses			No. of Issues		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses
Debt securities:
U.S. Government		6	$	10,323	$	(47	)		1	$	4,728	$	(30	)		7	$	15,051	$	(77	)
State and local government		41		8,875		(172	)		4		446		(17	)		45		9,321		(189	)
Corporate debt		41		22,748		(505	)		1		705		(45	)		42		23,453		(550	)
Asset-backed securities		24		24,305		(219	)		2		1,893		(5	)		26		26,198		(224	)
Mortgage-backed securities		12		27,034		(762	)		—		—		—			12		27,034		(762	)
Commercial mortgage   -backed securities		0		—		0			—		—		—			0		—		0
Collateralized mortgage   obligations		10		2,638		(45	)		2		29		—			12		2,667		(45	)
Total debt securities   available for sale		134	$	95,923	$	(1,750	)		10	$	7,801	$	(97	)		144	$	103,724	$	(1,847	)

The Company analyzed its investment portfolio in accordance with its OTTI review procedures and determined the Company did not need to record a credit-related OTTI loss, nor recognize a non credit-related OTTI loss in other comprehensive income for the years ended December 31, 2022, 2021, and 2020.

The Company’s sources of net investment income are as follows (dollars in thousands):

	December 31,
	2022			2021			2020
Debt securities	$	2,517		$	2,217		$	3,213
Equity securities		52			194			220
Cash, cash equivalents, and short-term investments		776			2			138
Total investment income		3,345			2,413			3,571
Investment expenses		(302	)		(445	)		(415	)
Net investment income	$	3,043		$	1,968		$	3,156

The following table summarizes the gross realized gains and losses from sales or maturities of available-for-sale debt securities and equity securities, as follows (dollars in thousands):

	December 31,
	2022			2021			2020
Debt securities:
Gross realized gains	$	6		$	63		$	4,646
Gross realized losses		(155	)		(6	)		(8	)
Total debt securities		(149	)		57			4,638
Equity securities:
Gross realized gains		375			4,605			4,854
Gross realized losses		(1,731	)		(1,784	)		(1,366	)
Total equity securities		(1,356	)		2,821			3,488
Total net realized investment gains	$	(1,505	)	$	2,878		$	8,126

Proceeds from the sales of available-for-sale securities were $32.0 million, $31.7 million and $101.2 million for the years ended December 31, 2022, 2021, and 2020, respectively. The gross realized gains from sales of available-for-sale securities for the years ended December 31, 2022, 2021, and 2020 were $5,000, $27,000, and $4.6 million, respectively. The gross realized losses from sales of available-for-sale securities for the years ended December 31, 2022, 2021, and 2020 were $155,000, $6,000, and $0, respectively.

As of December 31, 2022, 2021, and 2020 there were $0, $1.0 million, and $1.7 million of payables from securities purchased, respectively. As of December 31, 2022, 2021, and 2020 there were $650,000, $523,000, and $809,000 of receivables from securities sold, respectively.

The Company's gross unrealized losses related to its equity investments were $638,000, $1.0 million, and $0 as of December 31, 2022, 2021, and 2020, respectively. The Company had no gross unrealized gains related to its equity investments as of December 31, 2022 and 2021, respectively. The Company's gross unrealized gains related to its equity investments were $1.0 million as of December 31, 2020. The Company also carries other equity investments that do not have a readily determinable fair value and are recorded at cost, less impairment or observable changes in price. We review these investments for impairment during each reporting period. There was no impairment or observable changes in price recorded during 2022 related to the Company's equity securities without readily determinable fair value. These investments are a component of Other Assets in the Consolidated Balance Sheets. The value of these investments as of December 31, 2022 were $1.8 million.

The table below summarizes the amortized cost and fair value of available-for-sale debt securities by contractual maturity at December 31, 2022. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties (dollars in thousands):

	Amortized Cost		Estimated Fair Value
Due in one year or less	$	4,876	$	4,770
Due after one year through five years		28,396		25,963
Due after five years through ten years		23,974		19,782
Due after ten years		11,421		8,358
Securities with contractual maturities		68,667		58,873
Asset-backed securities		21,742		20,496
Mortgage-backed securities		29,194		24,037
Commercial mortgage-backed securities		3,414		3,228
Collateralized mortgage obligations		4,102		3,567
Total debt securities	$	127,119	$	110,201

At December 31, 2022 and 2021, the Insurance Companies Subsidiaries had an aggregate of $8.0 million and $8.5 million, respectively, on deposit in trust accounts to meet the deposit requirements of various state insurance departments. At

December 31, 2022 and 2021, the Company had $95.7 million and $76.1 million held in trust accounts to meet collateral requirements with other third-party insurers, relating to various fronting arrangements. There are withdrawal and other restrictions on these deposits, including the type of investments that may be held, however, the Company may generally invest in high-grade bonds and short-term investments and earn interest on the funds.