Investments

6 Months Ended

Jun. 30, 2015

Investments, Debt and Equity Securities [Abstract]

Investments

4. Investments

A summary of the amortized cost, estimated fair value, and gross unrealized gains and losses on fixed income securities at June 30, 2015 and December 31, 2014 is as follows.

As of June 30, 2015	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Fixed income securities:
U.S. government and government agencies	$	644	$	7	$	(1	)	$	650
State municipalities and political subdivisions		1,116		1		(7	)		1,110
Asset-backed securities and collateralized mortgage obligations		5,518		11		(21	)		5,508
Corporate		8,833		23		(24	)		8,832
Total fixed income securities	$	16,111	$	42	$	(53	)	$	16,100
As of December 31, 2014
Fixed income securities:
U.S. government and government agencies	$	141	$	—	$	—		$	141
State municipalities and political subdicisions		295		—		—			295
Asset-backed securities and collateralized mortgage obligations		4,179		6		(7	)		4,178
Corporate		5,900		10		(10	)		5,900
Total	$	10,515	$	16	$	(17	)	$	10,514

The table below summarizes the Company's fixed income securities at June 30, 2015 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 maturity of these obligations.

Matures in:	Amortized Cost		Estimated Fair Value
One year or less	$	583	$	583
One to five years		9,446		9,447
Five to ten years		1,875		1,871
More than ten years		4,207		4,199
Total	$	16,111	$	16,100

The following table highlights the aggregate unrealized loss position, by security type, of fixed income securities in unrealized loss positions as of June 30, 2015 and December 31, 2014. The tables segregate the holdings based on the period of time the investments have been continuously held in unrealized loss positions. There were 73 and 56 investments that were in unrealized loss positions as of June 30, 2015 and December 31, 2014, respectively.

	Less than 12 Months					Greater than 12 Months					Total
At June 30, 2015	Estimated Fair Value		Unrealized Loss			Estimated Fair Value		Unrealized Loss			Estimated Fair Value		Unrealized Loss
Fixed income securities:
U.S. government and government agencies	$	536	$	(1	)	$	114	$	—		$	650	$	(1	)
State municipalities and political subdivisions		1,064		(7	)		46		—			1,110		(7	)
Asset-backed securities and collateralized mortgage obligations		3,812		(20	)		1,696		(1	)		5,508		(21	)
Corporate		5,573		(21	)		3,259		(3	)		8,832		(24	)
Total investments in fixed income securities	$	10,985	$	(49	)	$	5,115	$	(4	)	$	16,100	$	(53	)
At December 31, 2014
Fixed income securities:
U.S. government, gov’t agencies and authorities	$	141	$	—		$	—	$	—		$	141	$	—
State municipalities and political subdivisions		295		—			—		—			295		—
Asset-backed securities and collateralized mortgage obligations		4,178		(7	)		—		—			4,178		(7	)
Corporate		5,900		(10	)		—		—			5,900		(10	)
Total investments in fixed income securities	$	10,514	$	(17	)	$	—	$	—		$	10,514	$	(17	)

Under the terms of the certificate of authority granted to Maison by the Texas Department of Insurance, Maison is required to pledge securities totaling approximately $2,000 with the State of Texas. Maison deposited the required securities with the State of Texas on May 13, 2015. These securities consist of the fixed income securities listed in the tables above and having an amortized cost basis of $2,004 and estimated fair value of $2,000 as of June 30, 2015.  

Other-than-Temporary Impairment:

The establishment of an other-than-temporary impairment on an investment requires a number of judgments and estimates. The Company performs a quarterly analysis of the individual investments to determine if declines in market value are other-than-temporary. The analysis includes some or all of the following procedures as deemed appropriate by the Company:

• considering the extent, and length of time during which the market value has been below cost;

• identifying any circumstances which management believes may impact the recoverability of the unrealized loss positions;

• obtaining a valuation analysis from a third-party investment manager regarding the intrinsic value of these investments based upon their knowledge and experience combined with market-based valuation techniques;

• reviewing the historical trading volatility and trading range of the investment and certain other similar investments;

• assessing if declines in market value are other-than-temporary for debt instruments based upon the investment grade credit ratings from third-party credit rating agencies;

• assessing the timeliness and completeness of principal and interest payment due from the investee; and

• assessing the Company’s ability and intent to hold these investments until the impairment may be recovered

The risks and uncertainties inherent in the assessment methodology used to determine declines in market value that are other-than-temporary include, but may not be limited to, the following:

• the opinions of professional investment managers could be incorrect;

• the past trading patterns of investments may not reflect their future valuation trends;

• the credit ratings assigned by credit rating agencies may be incorrect due to unforeseen events or unknown facts related to the investee company’s financial situation; and

• the historical debt service record of an investment may not be indicative of future performance and may not reflect a company’s unknown underlying financial problems.

The Company has reviewed currently available information regarding investments with estimated fair values that are less than their carrying amounts and believes that these unrealized losses are primarily due to temporary market and sector-related factors rather than to issuer-specific factors. The Company does not intend to sell these investments in the short term, and it is not likely that it will be required to sell these investments before the recovery of their amortized cost.

Accordingly, all of the Company’s investments were in good standing and there were no write-downs for other-than-temporary impairments on the Company’s investments for the three and six months ended June 30, 2015 and 2014.

The Company does not have any exposure to subprime mortgage-backed investments. Net investment income for the three and six months ended June 30, 2015 and 2014 is as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Investment income:
Interest on fixed income securities	$	65		$	19		$	117		$	26
Interest on cash and cash equivalents		30			—			58			—
Other		—			9			—			9
Gross investment income		95			28			175			35
Investment expenses		(16	)		(4	)		(18	)		(7	)
Net investment income	$	79		$	24		$	157		$	28