Investments (Tables)

9 Months Ended

Sep. 30, 2022

Investments

Schedule of Available for Sale Investments

			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
(In thousands)	Cost		Gains		Losses		Fair Value
September 30, 2022:
Fixed maturities:
Bonds:
U.S. government obligations	$	1,589	$	—	$	94	$	1,495
Mortgage-backed securities		228,052		281		16,990		211,343
Asset-backed securities		38,415		65		3,831		34,648
Collateralized loan obligations		298,976		755		24,357		275,375
States and political subdivisions-general obligations		104		—		3		102
States and political subdivisions-special revenue		136		—		16		121
Corporate		43,665		335		6,076		37,924
Term loans		477,034		1,656		2,168		476,522
Redeemable preferred stock		14,283		—		3,732		10,551
Total fixed maturities	$	1,102,254	$	3,092	$	57,267	$	1,048,081
Mortgage loans on real estate, held for investment		204,423		—		—		204,423
Derivatives		32,103		3,395		23,658		11,840
Common Stock		501		—		—		501
Equity securities		10,256		—		931		9,325
Other invested assets		77,764		1,011		206		78,569
Investment escrow		344		—		—		344
Preferred stock		22,535		291		1,247		21,579
Notes receivable		6,189		—		—		6,189
Policy loans		21		—		—		21
Total investments	$	1,456,390	$	7,789	$	83,309	$	1,380,872
December 31, 2021:
Fixed maturities:
Bonds:
U.S. government obligations	$	1,855	$	32	$	5	$	1,882
Mortgage-backed securities		55,667		368		755		55,280
Asset-backed securities		24,675		443		167		24,951
Collateralized loan obligations		272,446		2,928		851		274,523
States and political subdivisions-general obligations		105		9		—		114
States and political subdivisions-special revenue		4,487		1,129		4		5,612
Corporate		35,392		1,846		99		37,139
Term loans		268,794		441		1,767		267,468
Trust preferred		2,218		19		—		2,237
Redeemable preferred stock		14,282		53		245		14,090
Total fixed maturities	$	679,921	$	7,268	$	3,893	$	683,296
Mortgage loans on real estate, held for investment		183,203		—		—		183,203
Derivatives		18,654		6,391		2,023		23,022
Federal Home Loan Bank (FHLB) stock		500		—		—		500
Equity securities		22,158		—		289		21,869
Other invested assets		34,491		813		11		35,293
Investment escrow		3,611		—		—		3,611
Preferred stock		14,885		3,801		—		18,686
Notes receivable		5,960		—		—		5,960
Policy loans		87		—		—		87
Total investments	$	963,470	$	18,273	$	6,216	$	975,527

Schedule of credit ratings of fixed maturity securities

	September 30, 2022				December 31, 2021
	Carrying				Carrying
(In thousands)	Value		Percent		Value		Percent
AAA and U.S. Government	$	66,886	6.4	%	$	2,674	0.4	%
AA		437	—			482	0.1
A		339,322	32.4			168,141	24.6
BBB		568,588	54.2			462,699	67.7
Total investment grade		975,233	93.0			633,996	92.8
BB and below		72,848	7.0			49,300	7.2
Total	$	1,048,081	100.0	%	$	683,296	100.0	%

Schedule of Unrealized Loss of Securities

The following table summarizes, for all fixed maturity securities in an unrealized loss position as of September 30, 2022, and December 31, 2021, the estimated fair value, pre-tax gross unrealized loss, and number of securities by consecutive months they have been in an unrealized loss position.

	September 30, 2022						December 31, 2021
			Gross		Number				Gross		Number
	Estimated		Unrealized		of		Estimated		Unrealized		of
(In thousands)	Fair Value		Loss		Securities(1)		Fair Value		Loss		Securities(1)
Fixed Maturities:
Less than 12 months:
U.S. government obligations	$	1,358	$	80		15	$	104	$	2		1
Mortgage-backed securities		179,344		16,767		87		35,403		755		35
Asset-backed securities		31,722		3,831		33		12,355		167		13
Collateralized loan obligations		241,017		22,050		300		90,731		851		115
States and political subdivisions-general obligations		102		3		1		—		—		—
States and political subdivisions-special revenue		71		7		2		217		4		1
Term loans		476,522		2,168		258		105,677		1,767		47
Redeemable preferred stock		4,276		1,362		4		10,837		245		6
Corporate		35,079		5,748		71		2,367		73		9
Greater than 12 months:
U.S. government obligations		137		14		5		66		3		3
Collateralized loan obligations		15,311		2,307		12		—		—		—
States and political subdivisions-special revenue		50		9		1		—		—		—
Mortgage-backed securities		628		223		1		—		—		—
Redeemable preferred stock		6,274		2,370		4		—		—		—
Corporate		526		328		9		324		26		2
Total fixed maturities	$	992,417	$	57,267		803	$	258,081	$	3,893		232

(1)We may reflect a security in more than one aging category based on various purchase dates.

Schedule of Fixed Maturities

	Amortized		Estimated
(In thousands)	Cost		Fair Value
Due in one year or less	$	38,232	$	37,523
Due after one year through five years		510,201		498,497
Due after five years through ten years		458,651		429,377
Due after ten years through twenty years		53,793		49,749
Due after twenty years		36,324		29,174
No maturity		5,053		3,761
	$	1,102,254	$	1,048,081

Schedule of investment in mortgage loans

(In thousands)	September 30, 2022		December 31, 2021
Loan-to-Value Ratio:
0%-59.99%	$	105,360	$	91,104
60%-69.99%		53,168		42,819
70%-79.99%		36,561		44,106
80% or greater		9,334		5,174
Total mortgage loans	$	204,423	$	183,203

Components of net investment income

	Three months ended September 30,				Nine months ended September 30,
(In thousands)	2022		2021		2022		2021
Fixed maturities	$	3,535	$	6,373	$	23,927	$	13,103
Mortgage loans		(2,367)		938		878		1,479
Other invested assets		(595)		74		4,358		225
Other interest income		12,624		-		3,403		266
Gross investment income		13,197		7,385		32,566		15,073
Less: investment expenses		(259)		(1,189)		(2,845)		(2,770)
Investment income, net of expenses	$	12,938	$	6,196	$	29,721	$	12,303

Mortgage-back securities

Investments

Schedule of Mortgage Loan Activity

(In thousands)	September 30, 2022			December 31, 2021
1-4 Family	$	69,639	$	72,324
Hospitality		12,622		12,822
Land		35,563		15,904
Multifamily (5+)		32,862		31,583
Retail		20,407		17,655
Other		33,330		32,915
Total mortgage loans	$	204,423	$	183,203