Investments

9 Months Ended

Sep. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

INVESTMENTS

The Company invests primarily in fixed maturity securities, which totaled 86.3% of total cash and invested assets at September 30, 2023, as shown below.

Carrying Value (In thousands, except for %)	September 30, 2023				December 31, 2022
	Amount		%		Amount	%
Cash and invested assets:
Fixed maturity securities	$	1,151,353	86.3	%	1,179,619	86.5	%
Equity securities	10,555		0.8		11,590	0.8
Policy loans	75,750		5.7		78,773	5.8
Other long-term investments	79,798		5.9		69,558	5.1
Short-term investments	—		—		1,241	0.1
Cash and cash equivalents	16,785		1.3		22,973	1.7
Total cash and invested assets	$	1,334,241	100.0	%	1,363,754	100.0	%

The following tables represent the amortized cost, gross unrealized gains and losses and fair value of fixed maturity securities as of the dates indicated.

	Amortized Cost		Gross Unrealized Gains	Gross Unrealized Losses	Fair Value
September 30, 2023
(In thousands)
Fixed maturity securities:
Available-for-sale:
U.S. Treasury securities	$	5,700	241	114	5,827
U.S. Government-sponsored enterprises	3,411		122	3	3,530
States and political subdivisions	325,314		1,607	42,965	283,956
Corporate:
Financial	256,108		149	48,576	207,681
Consumer	249,857		545	54,802	195,600
Utilities	121,874		1	28,583	93,292
Energy	76,418		—	13,304	63,114
All other	184,859		236	34,041	151,054
Commercial mortgage-backed	171		—	4	167
Residential mortgage-backed	108,976		3	16,460	92,519
Asset-backed	56,702		417	2,506	54,613
Total fixed maturity securities	$	1,389,390	3,321	241,358	1,151,353

	Amortized Cost		Gross Unrealized Gains	Gross Unrealized Losses	Fair Value
December 31, 2022
(In thousands)
Fixed maturity securities:
Available-for-sale:
U.S. Treasury securities	$	9,425	152	9	9,568
U.S. Government-sponsored enterprises	3,434		277	1	3,710
States and political subdivisions	344,208		1,114	37,964	307,358
Corporate:
Financial	243,758		512	42,383	201,887
Consumer	247,824		758	47,138	201,444
Utilities	115,738		39	23,790	91,987
Energy	76,065		—	11,395	64,670
All other	184,022		683	29,048	155,657
Commercial mortgage-backed	171		—	2	169
Residential mortgage-backed	110,582		9	10,765	99,826
Asset-backed	45,991		18	2,767	43,242
Foreign governments	100		1	—	101
Total fixed maturity securities	$	1,381,318	3,563	205,262	1,179,619

Most of the Company's equity securities are diversified stock and bond mutual funds.

Fair Value (In thousands)	September 30, 2023		December 31, 2022
Equity securities:
Stock mutual funds	$	2,034	2,615
Bond mutual funds	4,196		4,337
Common stock	622		857
Non-redeemable preferred stock	8		8
Non-redeemable preferred stock fund	3,695		3,773
Total equity securities	$	10,555	11,590

VALUATION OF INVESTMENTS

Available-for-sale ("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 (loss). The Company recognized net investment related losses of $0.4 million and $0.3 million on equity securities held for the three and nine months ended September 30, 2023 and losses of $0.9 million and $2.9 million for the same periods ended September 30, 2022, respectively.

The Company considers several factors in its review and evaluation of individual investments, using the process described in Part IV, Item 15, Note 2. Investments in the notes to the consolidated financial statements of our Form 10-K to determine whether a credit valuation loss exists. For the three and nine months ended September 30, 2023 and 2022, the Company recorded no credit valuation losses on fixed maturity securities.

The following tables present the fair values and gross unrealized losses of fixed maturity securities that are not deemed to have credit losses, aggregated by investment category and length of time that individual securities have been in a continuous loss position at September 30, 2023 and December 31, 2022.

September 30, 2023	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 securities:
U.S. Treasury securities	$	1,210	105	5	65	9	2	1,275	114	7
U.S. Government-sponsored enterprises	219		3	1	—	—	—	219	3	1
States and political subdivisions	66,573		2,405	94	157,245	40,560	198	223,818	42,965	292
Corporate:
Financial	35,347		2,343	53	164,356	46,233	221	199,703	48,576	274
Consumer	23,441		1,913	33	160,871	52,889	222	184,312	54,802	255
Utilities	14,964		1,173	54	78,285	27,410	138	93,249	28,583	192
Energy	6,103		337	9	57,011	12,967	79	63,114	13,304	88
All Other	16,510		1,091	25	130,532	32,950	169	147,042	34,041	194
Commercial mortgage-backed	167		4	2	—	—	—	167	4	2
Residential mortgage-backed	1,159		92	20	91,325	16,368	89	92,484	16,460	109
Asset-backed	11,936		666	17	32,756	1,840	40	44,692	2,506	57
Total fixed maturity securities	$	177,629	10,132	313	872,446	231,226	1,158	1,050,075	241,358	1,471

December 31, 2022	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 securities:
U.S. Treasury securities	$	—	—	—	64	9	2	64	9	2
U.S. Government-sponsored enterprises	223		1	1	—	—	—	223	1	1
States and political subdivisions	189,084		30,866	242	14,184	7,098	14	203,268	37,964	256
Corporate:
Financial	182,447		39,122	237	6,144	3,261	16	188,591	42,383	253
Consumer	164,224		34,823	220	23,417	12,315	30	187,641	47,138	250
Utilities	73,483		15,959	152	16,413	7,831	18	89,896	23,790	170
Energy	59,053		9,601	75	5,617	1,794	8	64,670	11,395	83
All Other	140,955		25,337	171	7,910	3,711	15	148,865	29,048	186
Commercial mortgage-backed	168		2	2	—	—	—	168	2	2
Residential mortgage-backed	98,758		10,514	95	759	251	5	99,517	10,765	100
Asset-backed	37,067		2,485	41	4,264	282	9	41,331	2,767	50
Total fixed maturity securities	$	945,462	168,710	1,236	78,772	36,552	117	1,024,234	205,262	1,353

In each category of our fixed maturity securities described above, 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. As of September 30, 2023 and December 31, 2022, 99% of the fair value of our fixed maturity securities portfolio were rated investment grade. 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. While we experience unrealized losses across all corporate sectors, the financial sector includes exposure to regional banks which have been impacted the most by recent economic and interest rate pressures. We have assessed our exposure in this sector and believe our investments have access to sufficient liquidity to meet their debt obligations.

These unrealized losses on fixed maturity securities are due to noncredit-related factors, including widening credit spreads and rising interest rates since purchase, which have little bearing on the recoverability of our investments, hence they are not recognized as credit losses. The fair value is expected to recover as the securities approach maturity or if market yields for such investments decline.

The amortized cost and fair value of fixed maturity securities at September 30, 2023 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.

September 30, 2023	Amortized Cost		Fair Value
(In thousands)
Fixed maturity securities:
Due in one year or less	$	14,657	14,514
Due after one year through five years	129,118		125,520
Due after five years through ten years	274,759		255,800
Due after ten years	970,856		755,519
Total fixed maturity securities	$	1,389,390	1,151,353

The Company uses the specific identification method of the individual security to determine the cost basis used in the calculation of realized gains and losses related to security sales.  

	Three Months Ended			Nine Months Ended
	September 30,			September 30,
(In thousands)	2023		2022	2023	2022
Fixed maturity securities, available-for-sale:
Proceeds	$	9,446	1,520	13,690	30,348
Gross realized gains	$	38	19	43	120
Gross realized losses	$	436	1	453	103