Investments (Tables)

3 Months Ended

Mar. 31, 2013

Schedule of investments aggregated by type and industry

Investments were comprised of the following:

	March 31, 2013
	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	$	23,614	$	3,682	$	-	$	19,932
Obligations of states and political subdivisions		17,630		2,390		-		15,240
Corporate securities:
Utilities and telecom		20,141		2,928		9		17,222
Financial services		44,054		3,909		330		40,475
Other business – diversified		59,964		5,637		440		54,767
Other consumer – diversified		54,391		6,363		188		48,216
Total corporate securities		178,550		18,837		967		160,680
Redeemable preferred stocks:
Financial services		3,552		42		-		3,510
Other consumer – diversified		193		-		-		193
Total redeemable preferred stocks		3,745		42		-		3,703
Total fixed maturities		223,539		24,951		967		199,555
Equity securities:
Common and non-redeemable preferred stocks:
Utilities and telecom		1,474		510		-		964
Financial services		8,724		944		9		7,789
Other business – diversified		156		109		-		47
Other consumer – diversified		3,465		1,788		-		1,677
Total equity securities		13,819		3,351		9		10,477
Other invested assets		617		-		-		617
Policy loans		2,289		-		-		2,289
Real estate		38		-		-		38
Investments in unconsolidated trusts		1,238		-		-		1,238
Total investments	$	241,540	$	28,302	$	976	$	214,214

	December 31, 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

Amortized cost and carrying value of fixed maturities by contractual maturity

The amortized cost and carrying value of the Company's investments in fixed maturities at March 31, 2013 by contractual maturity were as follows. Actual maturities may differ from contractual maturities because issuers may call or prepay obligations with or without call or prepayment penalties.

	March 31, 2013
	Carrying Value		Amortized Cost
Due in one year or less	$	501	$	500
Due after one year through five years		6,836		6,150
Due after five years through ten years		32,739		29,929
Due after ten years		182,292		161,982
Varying maturities		1,171		994
Totals	$	223,539	$	199,555

Schedule of investments aggregated by industry

The following table sets forth the carrying value, amortized cost, and net unrealized gains of the Company's investments aggregated by industry as of March 31, 2013 and December 31, 2012.

	March 31, 2013						December 31, 2012
	Carrying Value		Amortized Cost		Unrealized Gains		Carrying Value		Amortized Cost		Unrealized Gains
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	23,614	$	19,932	$	3,682	$	27,512	$	22,894	$	4,618
Obligations of states and political subdivisions		17,630		15,240		2,390		17,761		15,247		2,514
Utilities and telecom		21,615		18,186		3,429		19,219		15,757		3,462
Financial services		56,330		51,774		4,556		56,077		51,702		4,375
Other business – diversified		60,120		54,814		5,306		66,875		59,628		7,247
Other consumer – diversified		58,049		50,086		7,963		55,269		47,235		8,034
Other investments		4,182		4,182		-		4,179		4,179		-
Investments	$	241,540	$	214,214	$	27,326	$	246,892	$	216,642	$	30,250

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 March 31, 2013 and December 31, 2012.

	March 31, 2013
	Less than 12 months				12 months or longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Corporate securities	$	17,607	$	647	$	1,680	$	320	$	19,287	$	967
Common and non-redeemable preferred stocks		2,007		9		-		-		2,007		9
Total temporarily impaired securities	$	19,614	$	656	$	1,680	$	320	$	21,294	$	976

	December 31, 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

Financial instruments carried at fair value measured on a recurring basis

As of March 31, 2013, financial instruments carried at fair value were measured on a recurring basis as summarized below:

	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Assets:
Fixed maturities	$	-	$	221,447	$	2,092	$	223,539
Equity securities		5,321		8,498		-		13,819
Cash equivalents		19,237		-		-		19,237
Total	$	24,558	$	229,945	$	2,092	$	256,595

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

	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Assets:
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	$	-	$	-	$	141	$	141

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 financial instruments measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three month period ended March 31, 2013.

	Fixed Maturities			Derivative (Liability)
Balance, December 31, 2012	$	2,124		$	(141	)
Total unrealized gains (losses) included in other comprehensive income		(32	)		141
Balance, March 31, 2013	$	2,092		$	-

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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- Definition

Tabular disclosure of marketable securities. This may consist of investments in certain debt and equity securities, short-term investments and other assets.

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