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Investments (Tables)
 12 Months Ended
Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]  
Schedule of summary of available-for-sale investments
The Company’s available-for-sale fixed maturity securities are summarized as follows:
 
Cost or
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
(in thousands)
December 31, 2019
 

 
 

 
 

 
 

Fixed maturity securities:
 

 
 

 
 

 
 

State and municipal
$
159,894

 
$
7,949

 
$
(742
)
 
$
167,101

Residential mortgage-backed
261,524

 
3,244

 
(622
)
 
264,146

Corporate
611,304

 
21,306

 
(389
)
 
632,221

Commercial mortgage and asset-backed
249,309

 
3,954

 
(806
)
 
252,457

U.S. Treasury securities and obligations guaranteed by the U.S. government
114,477

 
1,229

 
(39
)
 
115,667

Redeemable preferred stock
2,025

 
9

 
—

 
2,034

Total fixed maturity securities, available-for-sale
$
1,398,533

 
$
37,691

 
$
(2,598
)
 
$
1,433,626

December 31, 2018
 

 
 

 
 

 
 

Fixed maturity securities:
 

 
 

 
 

 
 

State and municipal
$
147,160

 
$
3,422

 
$
(1,287
)
 
$
149,295

Residential mortgage-backed
208,869

 
577

 
(5,337
)
 
204,109

Corporate
534,024

 
1,516

 
(10,772
)
 
524,768

Commercial mortgage and asset-backed
199,528

 
310

 
(2,813
)
 
197,025

U.S. Treasury securities and obligations guaranteed by the U.S. government
107,803

 
235

 
(845
)
 
107,193

Redeemable preferred stock
2,025

 
—

 
(213
)
 
1,812

Total fixed maturity securities, available-for-sale
$
1,199,409

 
$
6,060

 
$
(21,267
)
 
$
1,184,202
Schedule of summary of available-for-sale investments by contractual maturity
The amortized cost and fair value of available-for-sale investments in fixed maturity securities at December 31, 2019 are summarized, by contractual maturity, as follows:
 
Cost or
Amortized
Cost
 
Fair
Value
 
(in thousands)
One year or less
$
81,705

 
$
82,048

After one year through five years
456,076

 
466,952

After five years through ten years
219,717

 
228,596

After ten years
128,177

 
137,393

Residential mortgage-backed
261,524

 
264,146

Commercial mortgage and asset-backed
249,309

 
252,457

Redeemable preferred stock
2,025

 
2,034

Total
$
1,398,533

 
$
1,433,626

 
Schedule of gross unrealized losses and fair value for available-for-sale securities
The following table shows the Company’s gross unrealized losses and fair value for available-for-sale securities aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position:
 
Less Than 12 Months
 
12 Months or More
 
Total
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
(in thousands)
December 31, 2019
 

 
 

 
 

 
 

 
 

 
 

Fixed maturity securities:
 

 
 

 
 

 
 

 
 

 
 

State and municipal
$
30,028

 
$
(741
)
 
$
667

 
$
(1
)
 
$
30,695

 
$
(742
)
Residential mortgage-backed
23,632

 
(78
)
 
37,363

 
(544
)
 
60,995

 
(622
)
Corporate
45,550

 
(365
)
 
9,933

 
(24
)
 
55,483

 
(389
)
Commercial mortgage and asset-backed
46,434

 
(406
)
 
56,720

 
(400
)
 
103,154

 
(806
)
U.S. Treasury securities and obligations guaranteed by the U.S. government
8,474

 
(22
)
 
7,168

 
(17
)
 
15,642

 
(39
)
Total fixed maturity securities, available-for-sale
$
154,118

 
$
(1,612
)
 
$
111,851

 
$
(986
)
 
$
265,969

 
$
(2,598
)
December 31, 2018
 

 
 

 
 

 
 

 
 

 
 

Fixed maturity securities:
 

 
 

 
 

 
 

 
 

 
 

State and municipal
$
19,733

 
$
(284
)
 
$
47,018

 
$
(1,003
)
 
$
66,751

 
$
(1,287
)
Residential mortgage-backed
49,180

 
(743
)
 
105,778

 
(4,594
)
 
154,958

 
(5,337
)
Corporate
243,384

 
(5,089
)
 
155,902

 
(5,683
)
 
399,286

 
(10,772
)
Commercial mortgage and asset-backed
106,423

 
(1,229
)
 
51,805

 
(1,584
)
 
158,228

 
(2,813
)
U.S. Treasury securities and obligations guaranteed by the U.S. government
17,618

 
(51
)
 
54,201

 
(794
)
 
71,819

 
(845
)
Redeemable preferred stock
1,812

 
(213
)
 
—

 
—

 
1,812

 
(213
)
Total fixed maturity securities, available-for-sale
$
438,150

 
$
(7,609
)
 
$
414,704

 
$
(13,658
)
 
$
852,854

 
$
(21,267
)
Schedule of major categories of the company' s net investment income
Major categories of the Company’s net investment income are summarized as follows:
​
Year Ended December 31,
​
2019
 
2018
 
2017
​
(in thousands)
Fixed maturity securities
$
39,875

 
$
34,129

 
$
26,833

Bank loan participations
19,772

 
18,279

 
17,388

Equity securities
5,262

 
5,240

 
5,045

Other invested assets
6,254

 
5,165

 
14,079

Cash, cash equivalents, restricted cash equivalents, and short-term investments
9,210

 
2,677

 
1,704

Gross investment income
80,373

 
65,490

 
65,049

Investment expense
(4,721
)
 
(4,234
)
 
(3,930
)
Net investment income
$
75,652

 
$
61,256

 
$
61,119

 
Schedule of summary of realized gains and losses
The Company’s net realized and unrealized losses and gains on investments are summarized as follows:
​
Year Ended December 31,
​
2019
 
2018
 
2017
​
(in thousands)
Fixed maturity securities:
 
 
 
 
 
Gross realized gains
$
1,575

 
$
422

 
$
840

Gross realized losses
(494
)
 
(976
)
 
(512
)
​
1,081

 
(554
)
 
328

Equity securities:
 
 
 
 
 
Gross realized gains
11

 
—

 
429

Gross realized losses
(232
)
 
(62
)
 
(1,591
)
Changes in fair values of equity securities
6,257

 
(5,970
)
 
—

​
6,036

 
(6,032
)
 
(1,162
)
Bank loan participations:
 
 
 
 
 
Gross realized gains
846

 
2,279

 
2,407

Gross realized losses
(10,902
)
 
(1,166
)
 
(3,557
)
​
(10,056
)
 
1,113

 
(1,150
)
Short-term investments and other:
 
 
 
 
 
Gross realized gains
21

 
—

 
1

Gross realized losses
(1
)
 
(6
)
 
(6
)
​
20

 
(6
)
 
(5
)
Total
$
(2,919
)
 
$
(5,479
)
 
$
(1,989
)
Schedule of available-for-sale gross unrealized gains or losses
The following table summarizes the change in the Company’s available-for-sale gross unrealized gains or losses by investment type:
​
Year Ended December 31,
​
2019
 
2018
 
2017
​
(in thousands)
Change in gross unrealized gains (losses):
 
 
 
 
 
Fixed maturity securities
$
50,300

 
$
(22,643
)
 
$
6,571

Equity securities
—

 
—

 
5,356

Total
$
50,300

 
$
(22,643
)
 
$
11,927

 
Schedule of other invested assets
The Company invests selectively in private debt and equity opportunities. These investments, which together comprise the Company’s other invested assets, are primarily focused in renewable energy, limited partnerships, and bank holding companies.
​
Carrying Value
 
Investment Income
​
December 31,
 
Year Ended December 31,
​
2019
 
2018
 
2019
 
2018
 
2017
​
(in thousands)
 
(in thousands)
Renewable energy LLCs(a)
$
31,219

 
$
29,795

 
$
2,181

 
$
2,974

 
$
10,578

Renewable energy notes receivable(b)
8,750

 
8,750

 
1,313

 
1,282

 
526

Limited partnerships(c)
16,741

 
29,276

 
2,417

 
566

 
2,632

Bank holding companies(d)
4,500

 
4,500

 
343

 
343

 
343

Total other invested assets
$
61,210

 
$
72,321

 
$
6,254

 
$
5,165

 
$
14,079

(a)
The Company’s Corporate and Other segment owns equity interests ranging from 2.6% to 32.2% in various LLCs whose principal objective is capital appreciation and income generation from owning and operating renewable energy production facilities (wind and solar). The LLCs are managed by an entity for which one of our directors and one of our recent former directors serve as officers, and the Company’s Executive Chairman and Chief Executive Officer has invested in certain of these LLCs. The equity method is used to account for the Company’s LLC investments. Income for the LLCs primarily reflects adjustments to the carrying values of investments in renewable energy projects to their determined fair values. The fair value adjustments are included in revenues for the LLCs. Expenses for the LLCs are not significant and are comprised of administrative and interest expenses. The Company received cash distributions from these investments totaling $757,000 and $5.8 million for the years ended December 31, 2019 and 2018, respectively.
​(b)
The Company's Corporate and Other segment has invested in notes receivable for renewable energy projects. At December 31, 2019 and 2018, the Company held one $8.8 million note issued by an entity for which one of our directors and one of our recent former directors serve as officers. Interest on the note, which matures in 2021, is fixed at 15%. Interest income on the note was $1.3 million, $1.3 million, and $526,000 for the years ended December 31, 2019, 2018, and 2017, respectively.
​(c)
The Company owns investments in limited partnerships that invest in concentrated portfolios including publicly-traded small cap equities, loans of middle market private equity sponsored companies, equity tranches of collateralized loan obligations ("CLOs"), and tranches of distressed home loans. Income from the partnerships is recognized under the equity method of accounting. The Company’s Corporate and Other segment held an investment in a limited partnership with a carrying value of $3.4 million and $3.1 million at December 31, 2019 and 2018, and recognized investment income of $327,000, $70,000, and $394,000 for the years ended December 31, 2019, 2018 and 2017, respectively. The Company’s Excess and Surplus Lines segment holds investments in limited partnerships of $13.3 million and $26.2 million at December 31, 2019 and 2018, respectively. Investment income of $2.1 million, $496,000, and $2.2 million were recognized on these investments for the years ended December 31, 2019, 2018, and 2017, respectively. At December 31, 2019, the Company’s Excess and Surplus Lines segment has outstanding commitments to invest another $625,000 in these limited partnerships.
(d)
The Company's Corporate and Other segment holds $4.5 million of subordinated notes issued by a bank holding company for which the Company’s Executive Chairman and Chief Executive Officer was previously the Lead Independent Director and an investor and for which one of the Company’s directors was an investor and is currently a lender (the "Bank Holding Company"). Interest on the notes, which mature in 2023, is fixed at 7.6% per annum. Interest income on the notes was $343,000 in each of the years ended December 31, 2019, 2018 and 2017.