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Investments (Tables)
 3 Months Ended
Mar. 31, 2020
Investments, Debt and Equity Securities [Abstract]  
Available-for-Sale Debt Securities
AmortizedAllowance forGross UnrealizedFair
March 31, 2020Cost
Credit Losses (1)
GainsLossesValue
U.S. Treasury$56,656  $—  $4,398  $—  $61,054  
Federal agencies3,907  —  14  —  3,921  
States and political subdivision bonds292,734  —  8,931  (32) 301,633  
Foreign government1,762  —  —  (38) 1,724  
Corporate bonds1,922,412  (2,927) 35,738  (31,790) 1,923,433  
Residential mortgage-backed securities1,206,548  —  44,174  (1,416) 1,249,306  
Commercial mortgage-backed securities583,502  —  29,723  (1,856) 611,369  
Asset-backed securities48,993  —  261  (1,348) 47,906  
Structured securities209,680  —  —  (27,772) 181,908  
Total$4,326,194  $(2,927) $123,239  $(64,252) $4,382,254  
NGHC$4,014,997  $(2,629) $115,574  $(59,431) $4,068,511  
Reciprocal Exchanges311,197  (298) 7,665  (4,821) 313,743  
Total$4,326,194  $(2,927) $123,239  $(64,252) $4,382,254  
(1) Represents the amount of impairment that has resulted from credit-related factors recorded in net gain (loss) on investments.

AmortizedGross UnrealizedFair
December 31, 2019CostGainsLossesValue
U.S. Treasury$65,037  $1,992  $(23) $67,006  
Federal agencies3,907  8  —  3,915  
States and political subdivision bonds298,345  4,778  (1,441) 301,682  
Foreign government1,762  40  —  1,802  
Corporate bonds1,859,736  59,184  (2,357) 1,916,563  
Residential mortgage-backed securities1,265,830  15,747  (4,117) 1,277,460  
Commercial mortgage-backed securities585,044  27,261  (112) 612,193  
Asset-backed securities74,465  1,194  (48) 75,611  
Structured securities222,565  226  (2,665) 220,126  
Total$4,376,691  $110,430  $(10,763) $4,476,358  
NGHC$4,057,501  $104,951  $(10,343) $4,152,109  
Reciprocal Exchanges319,190  5,479  (420) 324,249  
Total$4,376,691  $110,430  $(10,763) $4,476,358  
Available-for-Sale Debt Securities by Contractual Maturity
The amortized cost and fair value of available-for-sale debt securities held as of March 31, 2020, by contractual maturity, are shown in the table below. Actual maturities may differ from contractual maturities because some borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

NGHCReciprocal ExchangesTotal
March 31, 2020Amortized
Cost		Fair
Value		Amortized
Cost		Fair
Value		Amortized
Cost		Fair
Value
Due in one year or less$58,383  $58,583  $110  $110  $58,493  $58,693  
Due after one year through five years1,002,735  1,006,418  127,214  128,065  1,129,949  1,134,483  
Due after five years through ten years983,649  977,567  79,997  78,303  1,063,646  1,055,870  
Due after ten years219,712  209,612  15,351  15,015  235,063  224,627  
Mortgage-backed securities1,750,518  1,816,331  88,525  92,250  1,839,043  1,908,581  
Total$4,014,997  $4,068,511  $311,197  $313,743  $4,326,194  $4,382,254  
Gross Unrealized Losses
The tables below summarize the gross unrealized losses on debt securities classified as available-for-sale, by length of time the security has continuously been in an unrealized loss position.

Less Than 12 Months12 Months or MoreTotal
March 31, 2020Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
States and political subdivision bonds$7,204  $(28) $908  $(4) $8,112  $(32) 
Foreign government1,724  (38) —  —  1,724  (38) 
Corporate bonds891,346  (31,790) —  —  891,346  (31,790) 
Residential mortgage-backed securities41,121  (1,416) —  —  41,121  (1,416) 
Commercial mortgage-backed securities55,768  (1,856) —  —  55,768  (1,856) 
Asset-backed securities32,912  (1,326) 233  (22) 33,145  (1,348) 
Structured securities123,710  (14,710) 58,198  (13,062) 181,908  (27,772) 
Total$1,153,785  $(51,164) $59,339  $(13,088) $1,213,124  $(64,252) 
NGHC$1,027,271  $(46,838) $55,834  $(12,593) $1,083,105  $(59,431) 
Reciprocal Exchanges126,514  (4,326) 3,505  (495) 130,019  (4,821) 
Total$1,153,785  $(51,164) $59,339  $(13,088) $1,213,124  $(64,252) 

Less Than 12 Months12 Months or MoreTotal
December 31, 2019Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
U.S. Treasury$19,903  $(23) $500  $—  $20,403  $(23) 
States and political subdivision bonds106,103  (1,415) 2,580  (26) 108,683  (1,441) 
Corporate bonds586,817  (2,253) 5,976  (104) 592,793  (2,357) 
Residential mortgage-backed securities410,484  (4,074) 3,983  (43) 414,467  (4,117) 
Commercial mortgage-backed securities18,250  (105) 748  (7) 18,998  (112) 
Asset-backed securities5,406  (29) 920  (19) 6,326  (48) 
Structured securities40,979  (94) 109,880  (2,571) 150,859  (2,665) 
Total$1,187,942  $(7,993) $124,587  $(2,770) $1,312,529  $(10,763) 
NGHC$1,104,244  $(7,654) $117,681  $(2,689) $1,221,925  $(10,343) 
Reciprocal Exchanges83,698  (339) 6,906  (81) 90,604  (420) 
Total$1,187,942  $(7,993) $124,587  $(2,770) $1,312,529  $(10,763) 
Debt Securities, Available-for-sale, Allowance for Credit Loss
The following table displays the roll forward of the allowance for credit losses for the period:

Three Months Ended March 31, 2020
Corporate bondsTotal
Balance, beginning of the period$—  $—  
Credit losses on securities not previously recorded2,927  2,927  
Balance, end of the period$2,927  $2,927  
Investment Income
The components of net investment income consisted of the following:

Three Months Ended March 31,
20202019
Cash and short-term investments$278  $1,497  
Debt securities32,102  29,467  
Other, net (related parties - $(2,525) and $254)(768) 3,508  
Investment income$31,612  $34,472  
Investment expenses(1,369) (1,027) 
Net investment income$30,243  $33,445  
NGHC$28,060  $31,275  
Reciprocal Exchanges2,183  2,170  
Net investment income$30,243  $33,445  
Net Realized Gains (Losses)
The table below indicates realized gains and losses on investments. Other, net includes realized gains and losses from short-term and other investments and foreign exchange. Purchases and sales of investments are recorded on a trade date basis. Realized gains and losses are determined based on the specific identification method.

Three Months Ended March 31,
20202019
Debt securities, available-for-sale:
Gross gains$273  $136  
Gross losses(9) (256) 
Credit allowance(2,927) —  
Net realized loss on debt securities, available-for-sale(2,663) (120) 
Other, net (1)
(4,198) 142  
Net realized gain (loss) on investments$(6,861) $22  
NGHC$(6,068) $766  
Reciprocal Exchanges(793) (744) 
Net realized gain (loss) on investments$(6,861) $22  
(1) Includes gains and losses on publicly traded equities and foreign currency.
Credit Quality of Investments
The tables below summarize the credit quality of debt securities, as rated by Standard & Poor’s (“S&P”). If a security is not rated by S&P, an S&P equivalent is determined based on ratings from similar rating agencies. Securities that are not rated are included in the “BB+ and lower” category.

NGHCReciprocal Exchanges
March 31, 2020Amortized
Cost		Fair
Value		PercentageAmortized
Cost		Fair
Value		Percentage
U.S. Treasury$43,695  $47,084  1.2 %$12,961  $13,970  4.5 %
AAA528,158  543,778  13.4 %20,845  21,169  6.7 %
AA, AA+, AA-1,618,321  1,675,017  41.2 %115,089  118,870  37.9 %
A, A+, A-966,417  960,982  23.6 %108,416  108,375  34.5 %
BBB, BBB+, BBB-830,937  817,798  20.1 %52,986  50,862  16.2 %
BB+ and lower27,469  23,852  0.5 %900  497  0.2 %
Total$4,014,997  $4,068,511  100.0 %$311,197  $313,743  100.0 %

NGHCReciprocal Exchanges
December 31, 2019Amortized
Cost		Fair
Value		PercentageAmortized
Cost		Fair
Value		Percentage
U.S. Treasury$52,108  $53,599  1.3 %$12,929  $13,407  4.1 %
AAA515,869  537,508  12.9 %20,947  21,555  6.6 %
AA, AA+, AA-1,677,787  1,697,220  40.9 %120,113  121,720  37.5 %
A, A+, A-954,312  976,468  23.5 %116,747  119,041  36.7 %
BBB, BBB+, BBB-795,594  823,239  19.8 %48,021  48,093  14.8 %
BB+ and lower61,831  64,075  1.6 %433  433  0.3 %
Total$4,057,501  $4,152,109  100.0 %$319,190  $324,249  100.0 %
The tables below summarize the investment quality of the corporate bond holdings and industry concentrations.
March 31, 2020AAAAA+,
AA,
AA-		A+,A,A-BBB+,
BBB,
BBB-		BB+ or
Lower		Fair
Value		% of
Corporate
Bonds
Portfolio
Financial Institutions— %3.5 %26.0 %12.5 %0.3 %$813,631  42.3 %
Industrials0.7 %2.6 %22.5 %29.3 %0.3 %1,065,463  55.4 %
Utilities/Other— %— %1.0 %1.3 %— %44,339  2.3 %
Total0.7 %6.1 %49.5 %43.1 %0.6 %$1,923,433  100.0 %
NGHC0.3 %4.9 %43.9 %40.5 %0.6 %$1,734,990  90.2 %
Reciprocal Exchanges0.4 %1.2 %5.6 %2.6 %— %188,443  9.8 %
Total0.7 %6.1 %49.5 %43.1 %0.6 %$1,923,433  100.0 %

December 31, 2019AAAAA+,
AA,
AA-		A+,A,A-BBB+,
BBB,
BBB-		BB+ or
Lower		Fair
Value		% of
Corporate
Bonds
Portfolio
Financial Institutions— %3.6 %25.0 %12.1 %0.3 %$785,910  41.0 %
Industrials0.7 %2.7 %24.1 %29.0 %0.1 %1,083,959  56.6 %
Utilities/Other— %— %1.0 %1.4 %— %46,694  2.4 %
Total0.7 %6.3 %50.1 %42.5 %0.4 %$1,916,563  100.0 %
NGHC0.3 %5.1 %44.0 %40.0 %0.4 %$1,720,962  89.8 %
Reciprocal Exchanges0.4 %1.2 %6.1 %2.5 %— %195,601  10.2 %
Total0.7 %6.3 %50.1 %42.5 %0.4 %$1,916,563  100.0 %
Cash, Cash Equivalents and Restricted Cash
Cash, cash equivalents, and restricted cash are as follows:
March 31, 2020December 31, 2019
Cash and cash equivalents$309,802  $135,942  
Restricted cash and cash equivalents30,070  28,521  
Total cash, cash equivalents and restricted cash$339,872  $164,463  
Restricted Investments
Restricted investments are as follows:
March 31, 2020December 31, 2019
Securities on deposit with state regulatory authorities$81,809  $74,061  
Restricted investments to trusts in certain reinsurance transactions42,369  49,502  
Total restricted investments$124,178  $123,563  
Other Investments
The table below summarizes the composition of other investments:

March 31, 2020December 31, 2019
Equity method investments (related parties - $105,839 and $109,612)$140,897  $143,511  
Notes receivable (related parties - $130,004 and $129,229)(1)
130,067  129,299  
Long-term Certificates of Deposit (CDs), at cost150  20,150  
Investments, at fair value7,661  9,365  
Investments, at cost or amortized cost8,908  8,962  
Total$287,683  $311,287