INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2018

Investments, Debt and Equity Securities [Abstract]

Reconciliation of available-for-sale securities from cost basis to fair value

The amortized cost and estimated fair value of securities available-for-sale as of December 31, 2018 and 2017 are as follows. All fixed maturity securities are classified as available-for-sale and are carried at fair value.



December 31, 2018	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair values
($ in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair values
Securities available-for-sale:
Fixed maturity securities:
U.S. treasury	$	8,139	$	—	$	118	$	8,021
U.S. government-sponsored agencies	303,198		2,799		1,518		304,479
Obligations of states and political subdivisions	273,727		10,375		451		283,651
Commercial mortgage-backed	83,854		1,287		762		84,379
Residential mortgage-backed	161,055		3,374		2,292		162,137
Other asset-backed	21,596		273		1,035		20,834
Corporate	421,563		2,605		4,760		419,408
Total fixed maturity securities	$	1,273,132	$	20,713	$	10,936	$	1,282,909



December 31, 2017	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair values
($ in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair values
Securities available-for-sale:
Fixed maturity securities:
U.S. treasury	$	8,115	$	—	$	37	$	8,078
U.S. government-sponsored agencies	303,932		122		6,105		297,949
Obligations of states and political subdivisions	290,038		17,729		231		307,536
Commercial mortgage-backed	84,058		591		669		83,980
Residential mortgage-backed	120,554		2,479		3,234		119,799
Other asset-backed	23,934		625		445		24,114
Corporate	422,535		11,490		465		433,560
Total fixed maturity securities	1,253,166		33,036		11,186		1,275,016

Equity securities:
Common stocks:
Financial services	30,103		13,594		175		43,522
Information technology	18,308		17,504		2		35,810
Healthcare	18,877		11,876		158		30,595
Consumer staples	9,275		4,917		65		14,127
Consumer discretionary	10,935		9,640		37		20,538
Energy	12,441		5,381		917		16,905
Industrials	12,746		15,757		14		28,489
Other	11,058		5,363		—		16,421
Non-redeemable preferred stocks	20,531		1,216		39		21,708
Total equity securities	144,274		85,248		1,407		228,115
Total securities available-for-sale	$	1,397,440	$	118,284	$	12,593	$	1,503,131

Estimated fair value and gross unrealized losses associated with investment securities

The following tables set forth the estimated fair values and gross unrealized losses associated with investment securities that were in an unrealized loss position recognized in accumulated other comprehensive income as of December 31, 2018 and 2017, listed by length of time the securities were consistently in an unrealized loss position.



December 31, 2018	Less than twelve months				Twelve months or longer				Total
($ in thousands)	Fair values		Unrealized losses		Fair values		Unrealized losses		Fair values		Unrealized losses
Securities available-for-sale:
Fixed maturity securities:
U.S. treasury	$	—	$	—	$	8,021	$	118	$	8,021	$	118
U.S. government-sponsored agencies	14,620		20		92,603		1,498		107,223		1,518
Obligations of states and political subdivisions	—		—		14,498		451		14,498		451
Commercial mortgage-backed	2,021		21		24,222		741		26,243		762
Residential mortgage-backed	16,852		145		45,597		2,147		62,449		2,292
Other asset-backed	4,810		147		11,691		888		16,501		1,035
Corporate	198,030		2,996		45,734		1,764		243,764		4,760
Total fixed maturity securities	$	236,333	$	3,329	$	242,366	$	7,607	$	478,699	$	10,936



December 31, 2017	Less than twelve months				Twelve months or longer				Total
($ in thousands)	Fair values		Unrealized losses		Fair values		Unrealized losses		Fair values		Unrealized losses
Securities available-for-sale:
Fixed maturity securities:
U.S. treasury	$	8,078	$	37	$	—	$	—	$	8,078	$	37
U.S. government-sponsored agencies	134,284		1,491		127,604		4,614		261,888		6,105
Obligations of states and political subdivisions	—		—		14,416		231		14,416		231
Commercial mortgage-backed	32,155		221		8,530		448		40,685		669
Residential mortgage-backed	30,003		394		22,948		2,840		52,951		3,234
Other asset-backed	—		—		13,440		445		13,440		445
Corporate	28,314		329		4,047		136		32,361		465
Total fixed maturity securities	232,834		2,472		190,985		8,714		423,819		11,186
Equity securities:
Common stocks:
Financial services	4,391		175		—		—		4,391		175
Information technology	344		2		—		—		344		2
Healthcare	2,532		158		—		—		2,532		158
Consumer staples	575		65		—		—		575		65
Consumer discretionary	992		37		—		—		992		37
Energy	3,181		917		—		—		3,181		917
Industrials	3,016		14		—		—		3,016		14
Non-redeemable preferred stocks	—		—		1,961		39		1,961		39
Total equity securities	15,031		1,368		1,961		39		16,992		1,407
Total temporarily impaired securities	$	247,865	$	3,840	$	192,946	$	8,753	$	440,811	$	12,593

Amortized cost and estimated fair value of fixed maturity securities

The amortized cost and estimated fair values of fixed maturity securities at December 31, 2018, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations, with or without call or prepayment penalties.



($ in thousands)	Amortized cost		Estimated fair values
Securities available-for-sale:
Due in one year or less	$	32,551	$	32,703
Due after one year through five years	240,690		241,229
Due after five years through ten years	320,118		320,931
Due after ten years	433,584		440,277
Securities not due at a single maturity date	246,189		247,769
Totals	$	1,273,132	$	1,282,909

Summary of realized investment gains and (losses)

A summary of realized investment gains and (losses) and the change in unrealized investment gains on equity investments is as follows:



	Year ended December 31,
($ in thousands)	2018			2017			2016
Fixed maturity securities available-for-sale:
Gross realized investment gains	$	324		$	545		$	2,054
Gross realized investment losses	(18,872		)	(4,849		)	(2,829		)

Equity securities:
Net realized investment gains, excluding "other-than-temporary" impairments	8,017			18,200			12,403
Change in unrealized investment gains	(28,838		)	XXXX			XXXX
"Other-than-temporary" impairments	XXXX			(1,088		)	(1,055		)

Other long-term investments, net	(1,883		)	(6,252		)	(6,499		)
Totals	$	(41,252	)	$	6,556		$	4,074

Summary of net investment income

A summary of net investment income is as follows:



	Year ended December 31,
($ in thousands)	2018			2017			2016
Interest on fixed maturity securities	$	42,961		$	39,992		$	41,499
Dividends on equity securities	6,078			6,032			6,922
Income on reverse repurchase agreements	339			306			236
Interest on short-term investments	608			273			121
Return on long-term investments	134			1,126			514
Total investment income	50,120			47,729			49,292
Securities litigation income	14			12			111
Investment expenses	(2,497		)	(2,262		)	(1,913		)
Net investment income	$	47,637		$	45,479		$	47,490

Summary of net changes in unrealized holding gains (losses) on securities available-for-sale

A summary of net changes in unrealized holding gains (losses) on securities available-for-sale is included in the table below.



	Year ended December 31,
($ in thousands)	2018			2017		2016
Fixed maturity securities	$	(12,073	)	$	11,676	$	(20,634	)
Deferred income tax expense (benefit)	(2,534		)	4,086		(7,222		)
Total fixed maturity securities	(9,539		)	7,590		(13,412		)

Equity securities	XXXX			17,481		4,293
Deferred income tax expense (benefit)	XXXX			6,119		1,502
Total equity securities	XXXX			11,362		2,791
Total available-for-sale securities	$	(9,539	)	$	18,952	$	(10,621	)