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Investments (Tables)

6 Months Ended

Jun. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Schedule of Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Debt Securities Available-for-Sale

The amortized cost, gross unrealized gains and losses, and fair value of the Company’s debt securities available-for-sale are as follows for the periods presented:


June 30, 2022	Cost or Adjusted / Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Debt Securities Available-for-sale	(In thousands)
U.S. government and agency securities (1)	$	102,663	$	—	$	3,203	$	99,460
States, municipalities and political subdivisions		105,378		4		9,561		95,821
Special revenue		296,842		22		25,172		271,692
Industrial and miscellaneous		184,280		28		15,823		168,485
Total	$	689,163	$	54	$	53,759	$	635,458

(1)

Includes securities at June 30, 2022 with a carrying amount of $28.3 million that were pledged as collateral for the advance agreement entered into with a financial institution in 2018. The Company is permitted to withdraw or exchange any portion of the pledged collateral over the minimum requirement at any time.


December 31, 2021		Cost or Adjusted / Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Debt Securities Available-for-sale	(In thousands)
U.S. government and agency securities (1)		$	73,923	$	184	$	282	$	73,825
States, municipalities and political subdivisions			106,727		242		1,270		105,699
Special revenue			291,005		1,084		3,520		288,569
Hybrid securities			99		—		—		99
Industrial and miscellaneous			203,491		636		2,965		201,162
Total		$	675,245	$	2,146	$	8,037	$	669,354

(1)

Includes securities at December 31, 2021 with a carrying amount of $22.5 million that were pledged as collateral for the advance agreement entered into with a financial institution in 2018. The Company is permitted to withdraw or exchange any portion of the pledged collateral over the minimum requirement at any time.

Schedule of Net Realized (Losses) Gains on Debt Securities Available-for-sale

The following table presents net realized (losses) gains on the Company’s debt securities available-for-sale for the three and six months ended June 30, 2022 and 2021, respectively:


	2022					2021
Three Months Ended June 30,	Gains (Losses)			Fair Value at Sale		Gains (Losses)		Fair Value at Sale
	(In thousands)
Debt Securities Available-for-Sale
Total realized gains	$	28		$	1,291	$	22	$	12,464
Total realized losses		(130	)		4,546		—		175
Net realized (losses) and gains	$	(102	)	$	5,837	$	22	$	12,639


	2022					2021
Six Months Ended June 30,	Gains (Losses)			Fair Value at Sale		Gains (Losses)			Fair Value at Sale
	(In thousands)
Debt Securities Available-for-Sale
Total realized gains	$	32		$	2,336	$	105		$	22,895
Total realized losses		(150	)		6,096		(3	)		817
Net realized (losses) and gains	$	(118	)	$	8,432	$	102		$	23,712

Summary of Debt Securities by Contractual Maturity Periods

The table below summarizes the Company’s debt securities at June 30, 2022 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 those obligations.


	At June 30, 2022
	Cost or Amortized Cost		Percent of Total			Fair Value		Percent of Total
Maturity dates:						(In thousands)
Due in one year or less	$	53,698		8	%	$	53,190		8	%
Due after one year through five years		336,935		49	%		316,690		50	%
Due after five years through ten years		222,938		32	%		195,700		31	%
Due after ten years		75,592		11	%		69,878		11	%
Total	$	689,163		100	%	$	635,458		100	%

Summary of Net Investment Income

The following table summarizes the Company’s net investment income by major investment category for the three and six months ended June 30, 2022 and 2021, respectively:


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(In thousands)				(In thousands)
Debt securities	$	2,428	$	1,760	$	4,703	$	3,178
Equity securities		—		—		—		—
Cash and cash equivalents		144		27		160		54
Other investments		82		216		312		588
Net investment income		2,654		2,003		5,175		3,820
Less: Investment expenses		491		1,047		1,012		1,571
Net investment income, less investment expenses	$	2,163	$	956	$	4,163	$	2,249

Schedule of Debt Securities Available-for-Sale in an Unrealized Loss Position, Aggregate Fair Value

The following tables present, for all debt securities available-for-sale in an unrealized loss position (including securities pledged) and for which no credit loss allowance been established to date, the aggregate fair value and gross unrealized loss by length of time the security has continuously been in an unrealized loss position at June 30, 2022 and December 31, 2021, respectively:


	Less Than Twelve Months						Twelve Months or More
June 30, 2022	Number of Securities		Gross Unrealized Losses		Fair Value		Number of Securities		Gross Unrealized Losses		Fair Value
Debt Securities Available-for-sale
U.S. government and agency securities		93	$	3,203	$	99,221		—	$	—	$	—
States, municipalities and political subdivisions		114		8,972		84,638		8		589		5,202
Special revenue		468		21,921		209,925		42		3,251		24,998
Industrial and miscellaneous		231		9,684		128,596		59		6,139		37,668
Total fixed maturity securities		906	$	43,779	$	522,380		109	$	9,980	$	67,868


	Less Than Twelve Months						Twelve Months or More
December 31, 2021	Number of Securities		Gross Unrealized Losses		Fair Value		Number of Securities		Gross Unrealized Losses		Fair Value
Debt Securities Available-for-sale
U.S. government and agency securities		43	$	282	$	57,420		—	$	—	$	—
States, municipalities and political subdivisions		98		1,270		80,972		—		—		—
Special revenue		253		3,485		195,450		14		35		1,214
Industrial and miscellaneous		191		2,387		146,746		18		578		11,598
Total fixed maturity securities		585	$	7,424	$	480,588		32	$	613	$	12,812

Summary of Carrying Value and Maximum Loss Exposure of Company's Non-consolidated VIEs by Category

The following table summarizes the carrying value and maximum loss exposure of the Company’s non-consolidated VIEs at June 30, 2022 and December 31, 2021:


	As of June 30, 2022				As of December 31, 2021
	Carrying Value		Maximum Loss Exposure		Carrying Value		Maximum Loss Exposure
	(in thousands)
Investments in non-consolidated VIEs - Equity Method	$	3,785	$	3,785	$	3,852	$	3,852
Investments in non-consolidated VIEs - Amortized Cost	$	8,490	$	8,490	$	15,000	$	15,000
Investments in non-consolidated VIEs - Measure Alternative	$	5,077	$	5,077	$	5,077	$	5,077
Total non-consolidated VIEs	$	17,352	$	17,352	$	23,929	$	23,929

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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