
Carrying Value as of December 31, (In thousands, except for %)	2020		%		2019		%
Cash and invested assets
Fixed maturity securities	$	1,489,383	89.8	%	$	1,377,959	90.2	%
Equity securities	22,102		1.3		16,033		1.1
Policy loans	83,318		5.0		82,005		5.4
Real estate and other long-term investments	29,865		1.8		2,956		0.2
Short-term investments	—		—		1,301		0.1
Cash and cash equivalents	34,131		2.1		46,205		3.0
Total cash and invested assets	$	1,658,799	100.0	%	$	1,526,459	100.0	%


December 31, 2020 (In thousands)	Amortized Cost		Gross Unrealized Gains	Gross Unrealized Losses	Fair Value
Fixed maturity securities:
Available-for-sale:
U.S. Treasury securities	$	9,529	1,797	—	11,326
U.S. Government-sponsored enterprises	3,490		1,301	—	4,791
States and political subdivisions	377,462		32,751	548	409,665
Corporate
Financial	204,160		31,000	13	235,147
Consumer	196,648		30,116	245	226,519
Energy	81,223		8,174	536	88,861
All Other	284,209		42,554	82	326,681
Commercial mortgage-backed	225		—	4	221
Residential mortgage-backed	118,144		21,819	—	139,963
Asset-backed	46,295		278	482	46,091
Foreign governments	102		16	—	118
Total fixed maturity securities	$	1,321,487	169,806	1,910	1,489,383


December 31, 2019 (In thousands)	Amortized Cost		Gross Unrealized Gains	Gross Unrealized Losses	Fair Value
Fixed maturity securities:
Available-for-sale:
U.S. Treasury securities	$	9,709	1,638	—	11,347
U.S. Government-sponsored enterprises	3,516		1,015	—	4,531
States and political subdivisions	512,239		24,285	240	536,284
Corporate
Financial	169,146		13,094	135	182,105
Consumer	148,575		12,591	464	160,702
Energy	74,315		4,765	115	78,965
All Other	212,714		16,022	420	228,316
Commercial mortgage-backed	1,105		—	5	1,100
Residential mortgage-backed	118,130		12,223	66	130,287
Asset-backed	44,302		11	110	44,203
Foreign governments	102		17	—	119
Total fixed maturity securities	$	1,293,853	85,661	1,555	1,377,959


Fair Value as of December 31, (In thousands)	2020		2019
Equity securities:
Stock mutual funds	$	3,174	3,274
Bond mutual funds	12,354		12,311
Common stock	1,143		134
Non-redeemable preferred stock	281		314
Non-redeemable preferred stock fund	5,150		—
Total equity securities	$	22,102	16,033

AFS fixed maturity securities are reported in the consolidated financial statements at fair value. Equity securities are measured at fair value with the change in fair value recorded through net income. The Company recognized net realized gains of $1.6 million and $1.0 million on equity securities held for the years ended December 31, 2020 and 2019.

The Company monitors all AFS fixed maturity securities on an on-going basis relative to changes in credit ratings, market prices, earnings trends and financial performance, in addition to specific region or industry reviews. The Company evaluates whether a credit impairment exists for fixed maturity securities by considering primarily the following factors: (a) changes in the financial condition of the security's underlying collateral; (b) whether the issuer is current on contractually obligated interest and principal payments; (c) changes in the financial condition, credit rating and near-term prospects of the issuer; and (d) the payment structure of the security. The Company's best estimate of expected future cash flows used to determine the credit loss amount is a quantitative and qualitative process. Quantitative review includes information received from third-party sources such as financial statements, pricing and rating changes, liquidity and other statistical information. Qualitative factors include judgments related to business strategies, economic impacts on the issuer, overall judgment related to estimates and industry factors as well as the Company's intent to sell the security, or if it is more likely than not that the Company would be required to sell a security before recovery of its amortized cost.

The Company's best estimate of future cash flows involves assumptions including, but not limited to, various performance indicators, such as historical and projected default and recovery rates, credit ratings, and current delinquency rates. These assumptions require the use of significant management judgment and include the probability of issuer default and estimates regarding timing and amount of expected recoveries, which may include estimating the underlying collateral value. In addition, projections of expected future fixed maturity security cash flows may change based upon new information regarding the performance of the issuer. Any credit losses are presented as an allowance rather than as a write-down on AFS fixed maturity securities management does not intend to sell or believes that it is more likely than not we will be required to sell.

We adopted ASU 2016-13 using the prospective transition approach for fixed maturity securities for which other-than-temporary impairment had been recognized prior to January 1, 2020. As a result, the amortized cost remains the same before and after adoption. The effective interest rate on these fixed maturity securities was not changed. Amounts previously recognized in accumulated other comprehensive income as of January 1, 2020 relating to improvements in cash flow expected to be collected will be accreted into income over the remaining life of the asset. Recoveries of amounts previously written off relating to improvements in cash flows after January 1, 2020 will be recorded in earnings when received.

For fixed maturity security investments that have unrealized losses as of December 31, 2020, the gross unrealized losses that have been in a continuous unrealized loss position for less than 12 months, gross unrealized losses that have been in a continuous unrealized loss position for 12 months or longer and fair value are as follows.


December 31, 2020	Less than 12 months				Greater than 12 months			Total
(In thousands, except for # of securities)	Fair Value		Unrealized Losses	# of Securities	Fair Value	Unrealized Losses	# of Securities	Fair Value	Unrealized Losses	# of Securities
Fixed maturity securities:
Available-for-sale:


States and political subdivisions	$	32,487	548	27	—	—	—	32,487	548	27
Corporate
Financial	1,308		13	1	—	—	—	1,308	13	1
Consumer	10,740		230	5	1,667	15	1	12,407	245	6
Energy	6,350		536	8	—	—	—	6,350	536	8
All Other	9,418		82	11	—	—	—	9,418	82	11
Commercial mortgage-backed	221		4	1	—	—	—	221	4	1
Residential mortgage-backed	83		—	1	—	—	—	83	—	1
Asset-backed	26,353		481	26	994	1	1	27,347	482	27
Total fixed maturity securities	$	86,960	1,894	80	2,661	16	2	89,621	1,910	82

In each category of our fixed maturity securities described below, we do not intend to sell our investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases. While the losses are currently unrealized, we continue to monitor all fixed maturity securities on an on-going basis as future information may become available which could result in an allowance being recorded.

States and political subdivisions. The Company's investments in states and political subdivisions were purchased at a premium, relative to their face amount, and the contractual cash flows are guaranteed by the respective state or political subdivision. Accordingly, it is expected that the securities will not be settled at a price less than the amortized cost bases of the Company's investments.

Corporate. We did not recognize credit losses on corporate securities with unrealized losses that were due to interest rate sensitivity and changes in credit spreads. We believe that fluctuations caused by movements in interest rates and credit spreads have little bearing on the recoverability of our investments. While we are experiencing unrealized losses across several corporate sectors, the energy and automobile sectors have been impacted the most by recent economic pressures and some issuers within these sectors have been downgraded to below investment grade. We have assessed our exposure in the energy sector and believe our investments have access to sufficient liquidity to meet their debt obligations. The auto industry has been able to issue debt which has increased the liquidity of the component companies in the sector significantly. The automobile sector is included in the Consumer subtotal above.

Asset-backed. Our asset-backed securities are primarily collateralized loan obligations. We do not expect to realize any losses for these securities and see the current valuations as a result of general market conditions. All of the active asset-backed securities are rated investment grade.

The following table presents the fair values and gross unrealized losses of fixed maturity securities that are not deemed to have OTTI, aggregated by investment category and length of time that individual securities have been in a continuous loss position at December 31, 2019.


December 31, 2019	Less than 12 months				Greater than 12 months			Total
(In thousands, except for # of securities)	Fair Value		Unrealized Losses	# of Securities	Fair Value	Unrealized Losses	# of Securities	Fair Value	Unrealized Losses	# of Securities
Fixed maturity securities:
Available-for-sale:

States and political subdivisions	$	24,064	163	24	1,961	77	6	26,025	240	30
Corporate
Financial	13,581		135	15	—	—	—	13,581	135	15
Consumer	22,671		464	20	—	—	—	22,671	464	20
Energy	4,208		34	4	898	81	2	5,106	115	6
All Other	22,437		285	30	2,771	135	3	25,208	420	33
Commercial mortgage-backed	1,100		5	2	—	—	—	1,100	5	2
Residential mortgage-backed	1,656		65	11	91	1	3	1,747	66	14
Asset-backed	36,039		110	27	—	—	—	36,039	110	27
Total fixed maturity securities	$	125,756	1,261	133	5,721	294	14	131,477	1,555	147

We have reviewed the securities in an unrealized loss position for the period ended December 31, 2019 and determined that no OTTI exists that has not been recognized based on our evaluation of the credit worthiness of the issuers and the fact that we do not intend to sell the investments nor is it likely that we will be required to sell the securities before recovery of their amortized cost bases which may be at maturity.

The amortized cost and fair value of fixed maturity securities at December 31, 2020 by contractual maturity are shown in the table below. 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. Securities not due at a single maturity date have been reflected based upon final stated maturity.


(In thousands)	Amortized Cost		Fair Value
Fixed maturity securities:
Due in one year or less	$	15,515	15,726
Due after one year through five years	120,268		129,853
Due after five years through ten years	229,281		253,168
Due after ten years	956,423		1,090,636

Total fixed maturity securities	$	1,321,487	1,489,383


Years ended December 31, (In thousands)	2020		2019	2018
Gross investment income:
Fixed maturity securities	$	54,653	53,860	49,126
Equity securities	816		662	722
Policy loans	6,605		6,451	6,210
Other long-term investments	238		13	15
Other	97		374	409
Total investment income	62,409		61,360	56,482
Investment expenses	(2,212)		(1,829)	(2,277)
Net investment income	$	60,197	59,531	54,205

We sold 29, 68 and 41 fixed maturity securities from our available-for-sale portfolio in 2020, 2019 and 2018, respectively, as part of a repositioning strategy recommended by our asset manager. There were no securities sold from the held-to-maturity portfolio in 2018.


Years ended December 31, (In thousands)	2020		2019	2018
Realized investment gains (losses):
Sales, calls and maturities:
Fixed maturity securities	$	(112)	1,927	1,792

Real estate	—		5,513	—
Property and equipment	9		(48)	(80)
Other long-term investments	9		—	—
Realized investment gains (losses)	(94)		7,392	1,712
Change in fair value of equity securities	1,596		962	(828)
Other-than-temporary impairments ("OTTI")
Fixed maturity securities	—		—	(776)
Real estate held for sale	—		(3,105)	—
Realized loss on OTTI	—		(3,105)	(776)
Net realized investment gains (losses)	$	1,502	5,249	108

An impairment loss of $3.1 million was recorded in 2019 in our Other Non-Insurance Enterprises segment in connection with reclassifying our Citizens Academy training facility located near Austin, Texas as real estate held for sale. This facility is no longer being used by the Company and is being actively marketed for sale.