Investments

6 Months Ended

Jun. 30, 2017

Marketable Securities [Abstract]

Investments

4. Investments

The following tables show the cost or amortized cost, gross unrealized gains and losses, and fair value of the Company’s fixed income and equity securities:

	June 30, 2017
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Fixed income securities:
U.S. Government and agencies	$	7,796	$	244	$	(37	)	$	8,003
Obligations of states and political subdivisions		85,042		1,541		(135	)		86,448
Corporate securities		90,086		1,415		(230	)		91,271
Residential mortgage-backed securities		30,616		163		(191	)		30,588
Commercial mortgage-backed securities		7,498		116		(9	)		7,605
Asset-backed securities		14,900		36		(13	)		14,923
Total fixed income securities		235,938		3,515		(615	)		238,838
Equity securities:
Basic materials		1,117		39		(6	)		1,150
Communications		3,285		1,121		(176	)		4,230
Consumer, cyclical		4,095		3,914		(137	)		7,872
Consumer, non-cyclical		6,646		3,401		(145	)		9,902
Energy		2,008		231		(319	)		1,920
Financial		1,701		831		—			2,532
Industrial		5,232		3,052		(33	)		8,251
Technology		4,768		4,116		(154	)		8,730
Total equity securities		28,852		16,705		(970	)		44,587
Total investments	$	264,790	$	20,220	$	(1,585	)	$	283,425

	December 31, 2016
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Fixed income securities:
U.S. Government and agencies	$	5,834	$	260	$	(44	)	$	6,050
Obligations of states and political subdivisions		68,915		882		(401	)		69,396
Corporate securities		50,610		1,028		(468	)		51,170
Residential mortgage-backed securities		22,750		102		(215	)		22,637
Commercial mortgage-backed securities		8,033		104		(41	)		8,096
Asset-backed securities		4,118		17		(14	)		4,121
Total fixed income securities		160,260		2,393		(1,183	)		161,470
Equity securities:
Basic materials		90		13		(1	)		102
Communications		1,307		1,601		(81	)		2,827
Consumer, cyclical		1,665		3,646		(50	)		5,261
Consumer, non-cyclical		2,015		2,411		(208	)		4,218
Energy		1,053		234		—			1,287
Financial		314		277		—			591
Industrial		2,251		2,766		—			5,017
Technology		2,816		3,855		(57	)		6,614
Total equity securities		11,511		14,803		(397	)		25,917
Total investments	$	171,771	$	17,196	$	(1,580	)	$	187,387

The amortized cost and estimated fair value of fixed income securities by contractual maturity are shown below. Actual maturities could differ from contractual maturities because issuers of the securities may have the right to call or prepay certain obligations, which may or may not include call or prepayment penalties.

	June 30, 2017
	Amortized Cost		Fair Value
Due to mature:
One year or less	$	15,866	$	15,970
After one year through five years		83,912		85,418
After five years through ten years		71,623		72,738
After ten years		11,523		11,596
Mortgage / asset backed securities		53,014		53,116
Total fixed income securities	$	235,938	$	238,838

	December 31, 2016
	Amortized Cost		Fair Value
Due to mature:
One year or less	$	10,935	$	11,069
After one year through five years		45,904		46,891
After five years through ten years		55,430		55,619
After ten years		13,090		13,037
Mortgage / asset backed securities		34,901		34,854
Total fixed income securities	$	160,260	$	161,470

Fixed income securities with a market value of $3,539 at June 30, 2017 and $3,530 at December 31, 2016 were deposited with various state regulatory agencies as required by law. The Company has not pledged any assets to secure any obligations.

The investment category and duration of the Company’s gross unrealized losses on fixed income securities and equity securities were as follows:

	June 30, 2017
	Less than 12 Months					Greater than 12 months					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Fixed income securities:
U.S. Government and agencies	$	3,489	$	(37	)	$	—	$	—		$	3,489	$	(37	)
Obligations of states and political subdivisions		13,148		(132	)		248		(3	)		13,396		(135	)
Corporate securities		24,068		(77	)		1,179		(153	)		25,247		(230	)
Residential mortgage- backed securities		16,373		(191	)		—		—			16,373		(191	)
Commercial mortgage- backed securities		1,528		(9	)		—		—			1,528		(9	)
Asset-backed securities		6,423		(13	)		—		—			6,423		(13	)
Total fixed income securities		65,029		(459	)		1,427		(156	)		66,456		(615	)
Equity securities:
Basic materials		381		(6	)		—		—			381		(6	)
Communications		1,527		(176	)		—		—			1,527		(176	)
Consumer, cyclical		514		(137	)		—		—			514		(137	)
Consumer, non-cyclical		1,446		(36	)		266		(109	)		1,712		(145	)
Energy		1,764		(319	)		—		—			1,764		(319	)
Industrial		374		(33	)		—		—			374		(33	)
Technology		1,294		(109	)		196		(45	)		1,490		(154	)
Total equity securities		7,300		(816	)		462		(154	)		7,762		(970	)
Total investments	$	72,329	$	(1,275	)	$	1,889	$	(310	)	$	74,218	$	(1,585	)

	December 31, 2016
	Less than 12 Months					Greater than 12 months					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Fixed income securities:
U.S. Government and agencies	$	2,750	$	(44	)	$	—	$	—		$	2,750	$	(44	)
Obligations of states and political subdivisions		16,559		(396	)		245		(5	)		16,804		(401	)
Corporate securities		13,479		(175	)		2,006		(293	)		15,485		(468	)
Residential mortgage-backed securities		15,692		(215	)		—		—			15,692		(215	)
Commercial mortgage-backed securities		2,513		(41	)		—		—			2,513		(41	)
Asset-backed securities		2,291		(14	)		—		—			2,291		(14	)
Total fixed income securities		53,284		(885	)		2,251		(298	)		55,535		(1,183	)
Equity securities:
Basic materials		32		(1	)		—		—			32		(1	)
Communications		167		(81	)		—		—			167		(81	)
Consumer, cyclical		63		(5	)		174		(45	)		237		(50	)
Consumer, non-cyclical		239		(208	)		—		—			239		(208	)
Technology		543		(57	)		—		—			543		(57	)
Total equity securities		1,044		(352	)		174		(45	)		1,218		(397	)
Total investments	$	54,328	$	(1,237	)	$	2,425	$	(343	)	$	56,753	$	(1,580	)

We frequently review our investment portfolio for declines in fair value which are other than temporary. Our process for identifying declines in the fair value of investments that are other than temporary involves consideration of several factors. These factors include (i) the time period in which there has been a significant decline in value, (ii) an analysis of the liquidity, business prospects and overall financial condition of the issuer, (iii) the significance of the decline, and (iv) our intent and ability to hold the investment for a sufficient period of time for the value to recover. When our analysis of the above factors results in the conclusion that declines in fair values are other than temporary, the cost of the securities is written down to fair value and the previously unrealized loss is therefore reflected as a realized loss. The Company recorded an impairment of $206 in the three months and six months ended June 30, 2017, and did not record any impairment in the three months or six months ended June 30, 2016. As of June 30, 2017, we held 152 fixed income securities with unrealized losses. As of December 31, 2016, we held 129 fixed income securities with unrealized losses. In conjunction with our outside investment advisors, we analyzed the credit ratings of the securities as well as the historical monthly amortized cost to fair value ratio of securities in an unrealized loss position. This analysis yielded no fixed income securities which had fair values less than 80% of amortized cost values for the preceding 12-month period.

Net investment income consisted of the following:

	Three Months Ended June 30,					Six Months Ended June 30,
	2017			2016		2017			2016
Fixed income securities	$	1,617		$	1,227	$	2,961		$	2,403
Equity securities		93			99		163			207
Real estate		231			105		461			342
Cash and cash equivalents		(3	)		—		(6	)		—
Total gross investment income		1,938			1,431		3,579			2,952
Investment expenses		491			249		989			637
Net investment income	$	1,447		$	1,182	$	2,590		$	2,315

Net realized capital gain on investments consisted of the following:

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Gross realized gains	$	552		$	174		$	1,180		$	514
Gross realized losses, excluding other than temporary impairment losses		(213	)		(44	)		(225	)		(295	)
Net realized capital gain on investments	$	339		$	130		$	955		$	219