Investments (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of investments aggregated by type and industry

Investments were comprised of the following:

	2012
	Carrying Value		Gross Unrealized Gains		Gross Unrealized Losses		Amortized Cost
Fixed maturities:
Bonds:
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	27,512	$	4,618	$	-	$	22,894
Obligations of states and political subdivisions		17,761		2,514		-		15,247
Corporate securities:
Utilities and telecom		17,921		3,128		-		14,793
Financial services		43,695		3,957		415		40,153
Other business – diversified		66,741		7,172		12		59,581
Other consumer – diversified		52,910		7,665		120		45,365
Total corporate securities		181,267		21,922		547		159,892
Redeemable preferred stocks:
Financial services		3,775		18		3		3,760
Other consumer – diversified		193		-		-		193
Total redeemable preferred stocks		3,968		18		3		3,953
Total fixed maturities		230,508		29,072		550		201,986
Equity securities:
Common and non-redeemable preferred stocks:
Utilities and telecom		1,298		334		-		964
Financial services		8,607		857		39		7,789
Other business – diversified		134		87		-		47
Other consumer – diversified		2,166		489		-		1,677
Total equity securities		12,205		1,767		39		10,477
Other invested assets		565		-		-		565
Policy loans		2,338		-		-		2,338
Real estate		38		-		-		38
Investments in unconsolidated trusts		1,238		-		-		1,238
Total investments	$	246,892	$	30,839	$	589	$	216,642

	2011
			Gross		Gross
	Carrying		Unrealized		Unrealized		Amortized
	Value		Gains		Losses		Cost
Fixed maturities:
Bonds:
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	35,922	$	4,186	$	-	$	31,736
Obligations of states and political subdivisions		17,030		1,757		-		15,273
Corporate securities:
Utilities and telecom		18,598		2,736		-		15,862
Financial services		34,900		725		1,346		35,521
Other business – diversified		56,553		5,043		152		51,662
Other consumer – diversified		46,908		6,170		12		40,750
Total corporate securities		156,959		14,674		1,510		143,795
Redeemable preferred stocks:
Utilities and telecom		2,668		168		-		2,500
Financial services		4,576		29		462		5,009
Other consumer – diversified		193		-		-		193
Total redeemable preferred stocks		7,437		197		462		7,702
Total fixed maturities		217,348		20,814		1,972		198,506
Equity securities:
Common and non-redeemable preferred stocks:
Utilities and telecom		1,203		239		-		964
Financial services		5,148		558		199		4,789
Other business – diversified		115		68		-		47
Other consumer – diversified		1,882		205		-		1,677
Total equity securities		8,348		1,070		199		7,477
Other invested assets		567		-		-		567
Policy loans		2,246		-		-		2,246
Real estate		38		-		-		38
Investments in unconsolidated trusts		1,238		-		-		1,238
Total investments	$	229,785	$	21,884	$	2,171	$	210,072

Schedule of investments aggregated by industry

The following table sets forth the carrying value, amortized cost, and net unrealized gains or losses of the Company's investments aggregated by industry as of December 31, 2012 and 2011.

	2012						2011
	Carrying Value		Amortized Cost		Unrealized Gains (Losses)		Carrying Value		Amortized Cost		Unrealized Gains (Losses)
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	27,512	$	22,894	$	4,618	$	35,922	$	31,736	$	4,186
Obligations of states and political subdivisions		17,761		15,247		2,514		17,030		15,273		1,757
Utilities and telecom		19,219		15,757		3,462		22,469		19,326		3,143
Financial services		56,077		51,702		4,375		44,624		45,319		(695	)
Other business – diversified		66,875		59,628		7,247		56,668		51,709		4,959
Other consumer – diversified		55,269		47,235		8,034		48,983		42,620		6,363
Other investments		4,179		4,179		-		4,089		4,089		-
Investments	$	246,892	$	216,642	$	30,250	$	229,785	$	210,072	$	19,713

Schedule of investment securities with continuous unrealized loss position

The following tables present the Company's unrealized loss aging for securities by type and length of time the security was in a continuous unrealized loss position as of December 31, 2012 and 2011.

	2012
	Less than 12 months				12 months or longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses

Corporate securities	$	8,806	$	147	$	1,600	$	400	$	10,406	$	547
Redeemable preferred stocks		1,216		3		-		-		1,216		3
Common and non-redeemable preferred stocks		3,494		39		-		-		3,494		39
Total temporarily impaired securities	$	13,516	$	189	$	1,600	$	400	$	15,116	$	589

	2011
	Less than 12 months				12 months or longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses

Corporate securities	$	30,675	$	1,112	$	1,602	$	398	$	32,277	$	1,510
Redeemable preferred stocks		-		-		2,807		462		2,807		462
Common and non-redeemable preferred stocks		824		176		1,245		23		2,069		199
Total temporarily impaired securities	$	31,499	$	1,288	$	5,654	$	883	$	37,153	$	2,171

Summary of investment impairments recorded due to other than temporary declines in values

The following is a summary of investment impairments the Company recorded due to other than temporary declines in values for the years ended December 31, 2012 and 2011.

	2012		2011
Corporate securities	$	-	$	965
Related party common stocks		-		190
Total	$	-	$	1,155

Financial instruments carried at fair value measured on a recurring basis

As of December 31, 2012, financial instruments carried at fair value were measured on a recurring basis as summarized below:

Assets:	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Fixed maturities	$	-	$	228,384	$	2,124	$	230,508
Equity securities		3,805		8,400		-		12,205
Cash equivalents		15,326		-		-		15,326
Total	$	19,131	$	236,784	$	2,124	$	258,039
Liabilities:
Derivative financial instrument (Note 7)	$	-	$	-	$	141	$	141

As of December 31, 2011, financial instruments carried at fair value were measured on a recurring basis as summarized below:

Assets:	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Fixed maturities	$	-	$	215,313	$	2,035	$	217,348
Equity securities		3,374		4,974		-		8,348
Cash equivalents		19,519		-		-		19,519
Total	$	22,893	$	220,287	$	2,035	$	245,215
Liabilities:
Derivative financial instrument (Note 7)	$	-	$	-	$	876	$	876

Roll-forward of financial instruments measured at fair value on a recurring basis using significant unobservable inputs (Level 3)

The following is a roll-forward of the Company's financial instruments measured at fair value on a recurring basis using significant unobservable inputs (Level 3) from January 1, 2011 to December 31, 2012.

	Fixed Maturities			Derivative (Liability)
Balance, January 1, 2011	$	1,943		$	(1,553	)
Realized impairment losses included in net income		(965	)		-
Total unrealized gains included in comprehensive income		1,057			677
Balance, December 31, 2011		2,035			(876	)
Total unrealized gains included in comprehensive income		89			735
Balance, December 31, 2012	$	2,124		$	(141	)

Amortized cost and carrying value of fixed maturities by contractual maturity

The amortized cost and carrying value of fixed maturities at December 31, 2012 and 2011 by contractual maturity were as follows. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	2012				2011
	Carrying Value		Amortized Cost		Carrying Value		Amortized Cost
Due in one year or less	$	1,510	$	1,500	$	1,263	$	1,250
Due after one year through five years		5,799		5,213		7,207		6,742
Due after five years through ten years		40,416		37,013		32,052		31,008
Due after ten years		181,608		157,266		175,676		158,512
Varying maturities		1,175		994		1,150		994
Totals	$	230,508	$	201,986	$	217,348	$	198,506

Investment income earned

Investment income was earned from the following sources:

	2012			2011
Fixed maturities	$	10,626		$	9,874
Equity securities		571			509
Other		307			204
Total investment income		11,504			10,587
Less investment expenses		(194	)		(177	)
Net investment income	$	11,310		$	10,410

Summary of realized investment gains (losses)

A summary of realized investment gains (losses) follows:

	2012
		Equity Securities		Fixed Maturities		Other Invested Assets		Total
Gains		$	-	$	1,434	$	-	$	1,434
Losses			-		-		-		-
Realized investment gains, net		$	-	$	1,434	$	-	$	1,434

	2011
		Equity Securities			Fixed Maturities			Other Invested Assets		Total
Gains		$	-		$	860		$	335	$	1,195
Losses			(190	)		(978	)		-		(1,168	)
Realized investment gains (losses), net		$	(190	)	$	(118	)	$	335	$	27

Proceeds from sales of investments

Proceeds from the sales of investments were as follows:

	2012		2011
Equity securities	$	-	$	813
Fixed maturities		24,433		37,910
Other investments		46		729
Total proceeds	$	24,479	$	39,452