2. Investments

The Company’s available‑for‑sale investments are summarized as follows:


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
March 31, 2020	Cost or Cost		Gains		Losses		Value
	(in thousands)
Fixed maturities:
U.S. Governments	$	16,623	$	927	$	—	$	17,550
States, territories, and possessions		2,836		208		—		3,044
Political subdivisions		2,304		45		(16)		2,333
Special revenue excluding mortgage/asset-backed securities		26,982		686		(229)		27,439
Industrial and miscellaneous		167,292		3,296		(5,503)		165,085
Mortgage/asset-backed securities		58,827		1,303		(2,223)		57,907
Total available-for-sale investments	$	274,864	$	6,465	$	(7,971)	$	273,358


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
December 31, 2019	Cost or Cost		Gains		Losses		Value
	(in thousands)
Fixed maturities:
U.S. Governments	$	13,371	$	321	$	(13)	$	13,679
States, territories, and possessions		2,298		147		—		2,445
Political subdivisions		1,913		29		—		1,942
Special revenue excluding mortgage/asset-backed securities		18,139		343		(46)		18,436
Industrial and miscellaneous		124,726		4,326		(39)		129,013
Mortgage/asset-backed securities		50,831		824		(19)		51,636
Total available-for-sale investments	$	211,278	$	5,990	$	(117)	$	217,151

Security holdings in an unrealized loss position

As of March 31, 2020, the Company held 223 fixed maturity securities in an unrealized loss position with a total estimated fair value of $105.7 million and total gross unrealized losses of $8.0 million. As of December 31, 2019, the Company held 51 fixed maturity securities in an unrealized loss position with a total estimated fair value of $20.9 million and total gross unrealized losses of $0.1 million.

The aggregate fair value and gross unrealized losses of the Company’s investments aggregated by investment category and the length of time these individual securities have been in a continuous unrealized loss position as of March 31, 2020 and December 31, 2019, are as follows:


	Less Than 12 Months				More Than 12 Months				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
March 31, 2020	Value		Losses		Value		Losses		Value		Losses
	(in thousands)
Fixed maturity securities:
U.S. Governments	$	—		—	$	—	$	—	$	—	$	—
States, territories, and possessions		—		—		—		—		—		—
Political subdivisions		385		(16)		—		—		385		(16)
Special revenue excluding mortgage/asset-backed securities		8,850		(229)		—		—		8,850		(229)
Industrial and miscellaneous		70,872		(5,503)		—		—		70,872		(5,503)
Mortgage/asset-backed securities		25,566		(2,223)		—		—		25,566		(2,223)
Total	$	105,673	$	(7,971)	$	—	$	—	$	105,673	$	(7,971)


	Less Than 12 Months				More Than 12 Months				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
December 31, 2019	Value		Losses		Value		Losses		Value		Losses
	(in thousands)
Fixed maturity securities:
U.S. Governments	$	1,235	$	(11)	$	1,827	$	(2)	$	3,062	$	(13)
States, territories, and possessions		—		—		—		—		—		—
Political subdivisions		—		—		—		—		—		—
Special revenue excluding mortgage/asset-backed securities		3,548		(46)		—		—		3,548		(46)
Industrial and miscellaneous		6,929		(38)		188		(1)		7,117		(39)
Mortgage/asset-backed securities		7,035		(19)		182		—		7,217		(19)
Total	$	18,747	$	(114)	$	2,197	$	(3)	$	20,944	$	(117)

The Company considers the following factors in determining whether declines in the fair value of investments are other‑than‑temporary:

The significance of the decline in fair value compared to the cost basis,

The time period during which there has been a significant decline in fair value,

Whether the unrealized loss is credit‑driven or a result of changes in market interest rates,

A fundamental analysis of the business prospects and financial condition of the issuer,

The Company’s intent to sell the securities as of each reporting date, and

If the Company does not expect to recover the entire amortized cost basis or cost of the investment.

Based on the Company’s reviews as of March 31, 2020, the Company determined that the fixed maturity securities’ unrealized losses were primarily the result of the widening credit spreads during the three months ended March 31, 2020 which more than offset declines in interest rates during that period. While the Company held some securities in industries such as energy and airlines, the Company believes it will be able to recover its investment in these securities given the financial condition and near-term prospects of the issuers. The Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before the recovery of their amortized cost basis. Therefore, none of the fixed maturity securities were written down during the three months ended March 31, 2020.

Contractual maturities of available‑for‑sale fixed maturity securities

The amortized cost and fair value of fixed maturity securities at March 31, 2020, by contractual maturity, are shown below.


	Amortized		Fair
	Cost		Value
	(in thousands)
Due within one year	$	11,548	$	11,572
Due after one year through five years		87,088		87,408
Due after five years through ten years		79,345		77,926
Due after ten years		38,056		38,545
Mortgage and asset-backed securities		58,827		57,907
	$	274,864	$	273,358

Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations.

Net investment income summary

Net investment income is summarized as follows:


	Three Months Ended
	March 31,
	2020		2019
	(in thousands)
Interest income	$	2,001	$	1,010
Dividend income		125		30
Investment expense		(91)		(80)
Net investment income	$	2,035	$	960

Net realized and unrealized investment gains and losses

The following table presents net realized and unrealized investment gains and losses:


	Three Months Ended
	March 31,
	2020		2019
		(in thousands)
Realized gains:
Gains on sales of fixed maturity securities	$	15	$	44
Gains on sales of equity securities		—		66
Total realized gains		15		110
Realized losses:
Losses on sales of fixed maturity securities		—		(66)
Losses on sales of equity securities		—		(156)
Total realized losses		—		(222)
Net realized investment gains (losses)		15		(112)
Net unrealized gains on equity securities		425		2,523
Net realized and unrealized gains on investments	$	440	$	2,411

Proceeds from the sale of fixed maturity securities were $0.8 million and $9.9 million for the three months ended March 31, 2020 and 2019, respectively.

The Company places securities on statutory deposit with certain state agencies to retain the right to do business in those states. These securities are included in available‑for‑sale investments on the balance sheet. At March 31, 2020 and December 31, 2019, the carrying value of securities on deposit with state regulatory authorities was $5.4 million and $5.1 million, respectively.