2. INVESTMENTS

The Company’s investments include fixed income debt securities and common and preferred stock equity securities. All of the Company’s investments are presented as available-for-sale (AFS), which are carried at fair value. When available, quoted market prices are obtained to determine fair value for the Company’s investments. If a quoted market price is not available, fair value is estimated using a secondary pricing source or using quoted market prices of similar securities. The Company has no investment securities for which fair value is determined using Level 3 inputs as defined in Note 3 – Fair Value Disclosures. Realized gains and losses on disposition of investments are based on specific identification of the investments sold on the settlement date, which does not differ significantly from trade date accounting.

The following is a summary of the proceeds from sales, maturities, and calls of available-for-sale securities and the related gross realized gains and losses for the three-months ended March 31, 2017 and 2016.



	For the Three-Months Ended Ended March 31,
							Net realized
	Proceeds		Gains		Losses		gain / (Loss)
2017
Fixed maturity securities	$	3,507,897	$	29,328	$	(18)	$	29,310
Common stocks		1,955,715		415,471		—		415,471
2016
Fixed maturity securities	$	6,177,479	$	124,251	$	(3)	$	124,248

The amortized cost and estimated fair value of fixed income securities at March 31, 2017, by contractual maturity, are shown as follows:



	Amortized Cost		Fair Value
Due in one year or less	$	1,002,040	$	1,007,504
Due after one year through five years		17,204,823		17,632,613
Due after five years through 10 years		14,332,542		15,014,148
Due after 10 years		11,240,936		11,419,931
Asset and mortgage backed securities without a specific due date		22,703,589		22,610,608
Total fixed maturity securities	$	66,483,930	$	67,684,804

Expected maturities may differ from contractual maturities due to call provisions on some existing securities.

The following table is a schedule of cost or amortized cost and estimated fair values of investments in fixed income and equity securities as of March 31, 2017 and December 31, 2016:



	Cost or				Gross Unrealized
	Amortized Cost		Fair Value		Gains		Losses
2017
Fixed maturity securities:
U.S. treasury	$	1,345,335	$	1,342,762	$	2,466	$	(5,039)
MBS/ABS/CMBS		22,703,589		22,610,608		168,126		(261,107)
Corporate		26,227,525		26,984,615		827,528		(70,438)
Municipal		16,207,481		16,746,819		659,592		(120,254)
Total fixed maturity securities		66,483,930		67,684,804		1,657,712		(456,838)
Equity securities:
Common stocks		7,718,532		8,355,129		678,475		(41,878)
Preferred stocks		3,670,884		3,664,710		41,864		(48,038)
Total equity securities		11,389,416		12,019,839		720,339		(89,916)
Total AFS securities	$	77,873,346	$	79,704,643	$	2,378,051	$	(546,754)



	Cost or				Gross Unrealized
	Amortized Cost		Fair Value		Gains		Losses
2016
Fixed maturity securities:
U.S. treasury	$	1,244,542	$	1,241,125	$	2,527	$	(5,944)
MBS/ABS/CMBS		19,751,138		19,677,200		183,175		(257,113)
Corporate		27,593,568		28,344,907		842,782		(91,443)
Municipal		14,339,843		14,870,791		665,790		(134,842)
Total fixed maturity securities		62,929,091		64,134,023		1,694,274		(489,342)
Equity securities:
Common stocks		6,311,708		6,982,547		704,768		(33,929)
Preferred stocks		2,925,434		2,798,413		5,425		(132,446)
Total equity securities		9,237,142		9,780,960		710,193		(166,375)
Total AFS securities	$	72,166,233	$	73,914,983	$	2,404,467	$	(655,717)

Included within MBS/ABS/CMBS, as defined in Note 3 – Fair Value Disclosures, are residential mortgage backed securities with fair values of $13,517,204 and $10,288,405 and commercial mortgage backed securities of $7,560,031 and $7,600,109 at March 31, 2017 and December 31, 2016, respectively.

ANALYSIS

The following table is also used as part of the impairment analysis and displays the total value of securities that were in an unrealized loss position as of March 31, 2017, and December 31, 2016. The table segregates the securities based on type, noting the fair value, cost (or amortized cost), and unrealized loss on each category of investment as well as in total. The table further classifies the securities based on the length of time they have been in an unrealized loss position.



	March 31, 2017						December 31, 2016
			12 Mos						12 Mos
	< 12 Mos.		& Greater		Total		< 12 Mos.		& Greater		Total
U.S. Treasury
Fair value	$	994,547	$	—	$	994,547	$	993,576	$	—	$	993,576
Cost or Amortized cost		999,586		—		999,586		999,520		—		999,520
Unrealized Loss		(5,039)		—		(5,039)		(5,944)		—		(5,944)

MBS/ABS/CMBS
Fair value		10,393,841		235,713		10,629,554		10,712,987		322,641		11,035,628
Cost or Amortized cost		10,654,350		236,311		10,890,661		10,968,840		323,901		11,292,741
Unrealized Loss		(260,509)		(598)		(261,107)		(255,853)		(1,260)		(257,113)

Corporate
Fair value		4,194,343		988,578		5,182,921		5,476,442		984,115		6,460,557
Cost or Amortized cost		4,253,949		999,410		5,253,359		5,552,624		999,376		6,552,000
Unrealized Loss		(59,606)		(10,832)		(70,438)		(76,182)		(15,261)		(91,443)

Municipal
Fair value		5,703,400		—		5,703,400		2,995,362		—		2,995,362
Cost or Amortized cost		5,823,654		—		5,823,654		3,130,204		—		3,130,204
Unrealized Loss		(120,254)		—		(120,254)		(134,842)		—		(134,842)

Subtotal, fixed income
Fair value		21,286,131		1,224,291		22,510,422		20,178,367		1,306,756		21,485,123
Cost or Amortized cost		21,731,539		1,235,721		22,967,260		20,651,188		1,323,277		21,974,465
Unrealized Loss		(445,408)		(11,430)		(456,838)		(472,821)		(16,521)		(489,342)

Common Stock
Fair value		—		216,690		216,690		—		445,872		445,872
Cost or Amortized cost		—		258,568		258,568		—		479,801		479,801
Unrealized Loss		—		(41,878)		(41,878)		—		(33,929)		(33,929)

Preferred Stock
Fair value		1,917,159		—		1,917,159		2,328,345		—		—
Cost or Amortized cost		1,965,197		—		1,965,197		2,460,791		—		—
Unrealized Loss		(48,038)		—		(48,038)		(132,446)		—		(132,446)

Total
Fair value		23,203,290		1,440,981		24,644,271		22,506,712		1,752,628		24,259,340
Cost or amortized cost		23,696,736		1,494,289		25,191,025		23,111,979		1,803,078		24,915,057
Unrealized Loss	$	(493,446)	$	(53,308)	$	(546,754)	$	(605,267)	$	(50,450)	$	(655,717)

As of March 31, 2017, the Company held 14 common equity and preferred stock securities in an unrealized loss position. Of these 14 securities, one has been in an unrealized loss position for 12 consecutive months or longer and represents $41,878 in unrealized losses. As of December 31, 2016, the Company held 21 equity securities that were in unrealized loss positions. Of these 21 securities, two were in an unrealized loss position for 12 consecutive months or longer and represented $33,929 in unrealized losses.

The fixed income portfolio contained 57 securities in an unrealized loss position as of March 31, 2017. Of these 57 securities, four have been in an unrealized loss position for 12 consecutive months or longer and represent $11,430 in unrealized losses. All fixed income securities in the investment portfolio continue to pay the expected coupon payments under the contractual terms of the securities. Credit-related impairments on fixed income securities that we do not plan to sell, and for which we are not more likely than not to be required to sell, are recognized in net earnings. Any non-credit related impairment is recognized in comprehensive earnings. Based on management’s analysis, the fixed income portfolio is of a high credit quality and it is believed it will recover the amortized cost basis of the fixed income securities. Management monitors the credit quality of the fixed income investments to assess if it is probable that the Company will receive its contractual or estimated cash flows in the form of principal and interest. There were no other-than-temporary impairment losses recognized in other comprehensive earnings in the periods presented.