Investments

9 Months Ended

Sep. 30, 2023

Investments [Abstract]

Investments

Note 3. Investments

The following table summarizes investment income and realized gains and losses on investments during the periods presented.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Investment income, net of investment expenses	$	2,515	$	384	$	4,618	$	962
Realized gains on investments	61		10		72		16
Realized losses on investments	(91)		(59)		(198)		(203)
Investment income and realized gains (losses), net of investment expenses	$	2,485	$	335	$	4,492	$	775

The following tables summarize the amortized cost, fair value, and unrealized gains and losses of investment securities.

	As of September 30, 2023
	Amortized Cost		Gross Unrealized				Fair Value
			Gains		Losses
U.S. Treasuries	$	32,651	$	15	$	(600)	$	32,066
Obligations of states, municipalities and political subdivisions	14,939		—		(1,405)		13,534
Corporate bonds	47,258		2		(3,634)		43,626
Residential and commercial mortgage-backed securities	24,173		3		(1,648)		22,528
Other loan-backed and structured securities	3,990		—		(376)		3,614
Total investment securities	$	123,011	$	20	$	(7,663)	$	115,368

	As of December 31, 2022
	Amortized Cost		Gross Unrealized				Fair Value
			Gains		Losses
U.S. Treasuries	$	35,637	$	5	$	(320)	$	35,322
Obligations of states, municipalities and political subdivisions	11,549		2		(1,326)		10,225
Corporate bonds	31,032		32		(2,837)		28,227
Residential and commercial mortgage-backed securities	12,790		11		(1,268)		11,533
Other loan-backed and structured securities	6,804		6		(476)		6,334
Total investment securities	$	97,812	$	56	$	(6,227)	$	91,641

The amortized cost and fair value of securities at September 30, 2023, 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, 2023
Remaining Time to Maturity	Amortized Cost		Fair Value
Due in one year or less	$	27,913	$	27,785
Due after one year through five years	31,760		29,980
Due after five years through ten years	26,597		23,797
Due after ten years	8,575		7,664
Residential and commercial mortgage-backed securities	24,175		22,528
Other loan-backed and structured securities	3,991		3,614
Total	$	123,011	$	115,368

Investments as of September 30, 2023, include $22.5 million of investments held by our captive reinsurance businesses as collateral for the benefit of HOA. Of this amount, $1.9 million is classified as short-term investments, and $20.5 million is classified as long-term investments.

Other-Than-Temporary Impairment

We regularly review our individual investment securities for other-than-temporary impairment. We consider 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

-our 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
As of September 30, 2023	Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value
U.S. Treasuries	$	(533)	$	31,214	$	(67)	$	520	$	(600)	$	31,734
Obligations of states, municipalities and political subdivisions	(1,174)		11,564		(231)		1,559		(1,405)		13,123
Corporate bonds	(3,070)		37,402		(564)		5,218		(3,634)		42,620
Residential and commercial mortgage-backed securities	(1,110)		19,031		(538)		2,967		(1,648)		21,998
Other loan-backed and structured securities	(366)		3,564		(10)		51		(376)		3,615
Total securities	$	(6,253)	$	102,775	$	(1,410)	$	10,315	$	(7,663)	$	113,090

	Less Than Twelve Months				Twelve Months or Greater				Total
As of December 31, 2022	Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value
U.S. Treasuries	$	(127)	$	10,748	$	(193)	$	9,824	$	(320)	$	20,572
Obligations of states, municipalities and political subdivisions	(929)		6,258		(397)		3,504		(1,326)		9,762
Corporate bonds	(1,623)		16,531		(1,214)		10,328		(2,837)		26,859
Residential and commercial mortgage-backed securities	(687)		6,565		(581)		4,952		(1,268)		11,517
Other loan-backed and structured securities	(359)		4,633		(117)		1,094		(476)		5,727
Total securities	$	(3,725)	$	44,735	$	(2,502)	$	29,702	$	(6,227)	$	74,437

At September 30, 2023, and December 31, 2022, there were 596 and 483 securities, respectively, in an unrealized loss position. Of these securities, 86 had been in an unrealized loss position for 12 months or longer as of September 30, 2023.

We believe there were no fundamental issues such as credit losses or other factors with respect to any of our available-for-sale securities. The unrealized losses on investments in fixed-maturity securities were caused primarily by interest rate changes. We expect that the securities will 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 we have the ability and intent to hold our available-for-sale investments until a market price recovery or maturity, we do not consider any of our investments to be other-than-temporarily impaired at September 30, 2023.