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Investments
9 Months Ended
Sep. 30, 2022
Investments  
Investments

3. Investments

The following table provides the Company’s investment income, and realized gains and losses on investments during the periods presented:

Three Months Ended September 30, 

Nine Months Ended September 30, 

2022

    

2021

2022

    

2021

Investment income, net of investment expenses

$

384

$

261

$

962

$

493

Realized gains on investments

10

26

16

46

Realized losses on investments

(59)

(39)

(203)

(91)

Investment income and realized gains, net of investment expenses

$

335

$

248

$

775

$

448

The following table provides the amortized cost, fair value and unrealized gains and (losses) of the Company’s investment securities:

As of September 30, 2022

Gross Unrealized

    

Amortized Cost

    

Gains

    

Losses

    

Fair Value

U.S. Treasuries

$

5,487

$

1

$

(304)

$

5,184

Obligations of states, municipalities and political subdivisions

10,757

3

(1,363)

9,397

Corporate bonds

 

31,227

 

 

(3,072)

 

28,155

Residential and commercial mortgage-backed securities

14,645

1

(1,374)

13,272

Other loan-backed and structured securities

7,024

(463)

6,561

Total debt securities

$

69,140

$

5

$

(6,576)

$

62,569

As of December 31, 2021

Gross Unrealized

    

Amortized Cost

    

Gains

    

Losses

    

Fair Value

U.S. Treasuries

$

5,452

$

1

$

(36)

$

5,417

Obligations of states, municipalities and political subdivisions

8,913

21

(84)

8,850

Corporate bonds

 

31,491

 

89

 

(155)

 

31,425

Residential and commercial mortgage-backed securities

14,387

34

(139)

14,282

Other loan-backed and structured securities

7,637

5

(41)

7,601

Total debt securities

$

67,880

$

150

$

(455)

$

67,575

The amortized cost and fair value of securities at September 30, 2022, by contractual maturity, are shown in the following table. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

As of September 30, 2022

Remaining Time to Maturity

    

Amortized Cost

    

Fair Value

Due in one year or less

$

5,081

$

5,012

Due after one year through five years

21,261

19,485

Due after five years through ten years

17,577

15,152

Due after ten years

 

3,552

 

3,087

Residential and commercial mortgage-backed securities

14,645

13,272

Other loan-backed and structured securities

7,024

6,561

Total

$

69,140

$

62,569

Other-than-temporary Impairment

The Company regularly reviews its individual investment securities for other-than-temporarily impairment. The Company considers various factors in determining whether each individual security is other-than-temporarily impaired, including:

-the financial condition and near-term prospects of the issuer, including any specific events that may affect its operations or earnings;
-the extent to which the market value of the security has been below its cost or amortized cost;
-general market conditions and industry or sector-specific factors;
-nonpayment by the issuer of its contractually obligated interest and principal payments; and
-the Company’s intent and ability to hold the investment for a period of time sufficient to allow for the recovery of costs.

Securities with gross unrealized loss position, aggregated by investment category and length of time the individual securities have been in a continuous loss position, are as follows:

Less Than Twelve Months

Twelve Months or Greater

Total

Gross

Gross

Gross

Unrealized

Fair

Unrealized

Fair

Unrealized

Fair

At September 30, 2022

Loss

Value

    

Loss

Value

    

Loss

Value

U.S. Treasuries

$

(103)

$

2,611

$

(201)

$

2,256

$

(304)

$

4,867

Obligations of states, municipalities and political subdivisions

(902)

6,161

(461)

3,200

(1,363)

9,361

Corporate bonds

(2,461)

18,067

(611)

4,389

(3,072)

22,456

Residential and commercial mortgage-backed securities

(1,229)

11,074

(145)

2,135

(1,374)

13,209

Other loan-backed and structured securities

(442)

6,118

(21)

443

(463)

6,561

Total securities

$

(5,137)

$

44,031

$

(1,439)

$

12,423

$

(6,576)

$

56,454

Less Than Twelve Months

Twelve Months or Greater

Total

Gross

Gross

Gross

Unrealized

Fair

Unrealized

Fair

Unrealized

Fair

At December 31, 2021

Loss

Value

    

Loss

Value

    

Loss

Value

U.S. Treasuries

$

(36)

$

5,007

$

$

$

(36)

$

5,007

Obligations of states, municipalities and political subdivisions

(84)

4,292

(84)

4,292

Corporate bonds

(155)

15,446

(155)

15,446

Residential and commercial mortgage-backed securities

(139)

9,687

(139)

9,687

Other loan-backed and structured securities

(41)

6,818

(41)

6,818

Total securities

$

(455)

$

41,250

$

$

$

(455)

$

41,250

At September 30, 2022, and December 31, 2021, there were 443 and 358 securities, respectively, in an unrealized loss position. Of these securities, 129 had been in an unrealized loss position for 12 months or longer as of September 30, 2022.

The Company believes there were no fundamental issues such as credit losses or other factors with respect to any of its available-for-sale securities. The unrealized losses on investments in fixed-maturity securities were caused primarily by interest rate changes. It is expected that the securities would not be settled at a price less than par value of the investments. Because the declines in fair value are attributable to changes in interest rates or market conditions and not credit quality, and because the Company has the ability and intent to hold its available-for-sale investments until a market price recovery or maturity, the Company does not consider any of its investments to be other-than-temporarily impaired at September 30, 2022.