Investments (Tables)

9 Months Ended

Sep. 30, 2016

Investments aggregated by type and industry

Investments were comprised of the following:

	September 30, 2016
	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	$	26,823	$	458	$	80	$	26,445
Obligations of states and political subdivisions		18,491		1,232		-		17,259
Corporate securities:
Utilities and telecom		17,969		2,305		-		15,664
Financial services		59,795		3,276		826		57,345
Other business – diversified		63,298		2,626		2,029		62,701
Other consumer – diversified		28,180		1,267		535		27,448
Total corporate securities		169,242		9,474		3,390		163,158
Redeemable preferred stocks:
Other consumer – diversified		193		-		-		193
Total redeemable preferred stocks		193		-		-		193
Total fixed maturities		214,749		11,164		3,470		207,055
Equity securities:
Common and non-redeemable preferred stocks:
Utilities and telecom		1,559		595		-		964
Financial services		5,634		806		-		4,828
Other business – diversified		216		169		-		47
Other consumer – diversified		12,545		6,931		-		5,614
Total equity securities		19,954		8,501		-		11,453
Other invested assets		10,763		-		-		10,763
Policy loans		2,209		-		-		2,209
Real estate		38		-		-		38
Investments in unconsolidated trusts		1,238		-		-		1,238
Total investments	$	248,951	$	19,665	$	3,470	$	232,756

	December 31, 2015
	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	$	22,234	$	290	$	175	$	22,119
Obligations of states and political subdivisions		25,479		621		552		25,410
Corporate securities:
Utilities and telecom		17,589		1,357		692		16,924
Financial services		54,035		1,797		1,351		53,589
Other business – diversified		60,960		729		5,898		66,129
Other consumer – diversified		24,581		136		1,391		25,836
Total corporate securities		157,165		4,019		9,332		162,478
Redeemable preferred stocks:
Financial services		253		3		-		250
Other consumer – diversified		193		-		-		193
Total redeemable preferred stocks		446		3		-		443
Total fixed maturities		205,324		4,933		10,059		210,450
Equity securities:
Common and non-redeemable preferred stocks:
Utilities and telecom		1,386		422		-		964
Financial services		5,175		847		-		4,328
Other business – diversified		198		151		-		47
Other consumer – diversified		16,372		10,758		-		5,614
Total equity securities		23,131		12,178		-		10,953
Other invested assets		6,454		-		-		6,454
Policy loans		2,200		-		-		2,200
Real estate		38		-		-		38
Investments in unconsolidated trusts		1,238		-		-		1,238
Total investments	$	238,385	$	17,111	$	10,059	$	231,333

Amortized cost and carrying value of fixed maturities by contractual maturity

The carrying value and amortized cost of the Company’s investments in fixed maturities at September 30, 2016 and December 31, 2015 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.

	September 30, 2016				December 31, 2015
	Carrying Value		Amortized Cost		Carrying Value		Amortized Cost
Due in one year or less	$	1,648	$	1,643	$	4,143	$	4,113
Due after one year through five years		24,219		24,024		20,557		20,591
Due after five years through ten years		95,711		92,293		99,614		103,066
Due after ten years		80,800		76,849		79,882		81,684
Varying maturities		12,371		12,246		1,128		996
Totals	$	214,749	$	207,055	$	205,324	$	210,450

Investments aggregated by industry

The following table sets forth the carrying value, amortized cost, and net unrealized gains (losses) of the Company’s investments aggregated by industry as of September 30, 2016 and December 31, 2015.

	September 30, 2016						December 31, 2015
	Carrying Value		Amortized Cost		Unrealized Gains		Carrying Value		Amortized Cost		Unrealized Gains (Losses)
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	26,823	$	26,445	$	378	$	22,234	$	22,119	$	115
Obligations of states and political subdivisions		18,491		17,259		1,232		25,479		25,410		69
Utilities and telecom		19,528		16,628		2,900		18,975		17,888		1,087
Financial services		65,429		62,173		3,256		59,463		58,167		1,296
Other business – diversified		63,514		62,748		766		61,158		66,176		(5,018	)
Other consumer – diversified		40,918		33,255		7,663		41,146		31,643		9,503
Other investments		14,248		14,248		-		9,930		9,930		-
Investments	$	248,951	$	232,756	$	16,195	$	238,385	$	231,333	$	7,052

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 September 30, 2016 and December 31, 2015.

	September 30, 2016
	Less than 12 months				12 months or longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	11,987	$	80	$	501	$	-	$	12,488	$	80
Corporate securities		19,031		392		22,224		2,998		41,255		3,390
Total temporarily impaired securities	$	31,018	$	472	$	22,725	$	2,998	$	53,743	$	3,470

	December 31, 2015
	Less than 12 months				12 months or longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	9,209	$	120	$	2,243	$	55	$	11,452	$	175
Obligations of states and political subdivisions		16,079		552		-		-		16,079		552
Corporate securities		79,482		4,284		16,131		5,048		95,613		9,332
Total temporarily impaired securities	$	104,770	$	4,956	$	18,374	$	5,103	$	123,144	$	10,059

Financial instruments carried at fair value measured on a recurring basis

As of September 30, 2016, financial instruments carried at fair value were measured on a recurring basis as summarized below:

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total
Assets:
Fixed maturities	$	-	$	213,385		$	1,364	⁽¹⁾	$	214,749
Equity securities		14,563		5,391	⁽¹⁾		-			19,954
Cash equivalents		9,312		-			-			9,312
Total	$	23,875	$	218,776		$	1,364		$	244,015

⁽¹⁾

All underlying securities are financial service industry related.

As of December 31, 2015, financial instruments carried at fair value were measured on a recurring basis as summarized below:

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total
Assets:
Fixed maturities	$	-	$	203,087		$	2,237	⁽¹⁾	$	205,324
Equity securities		18,245		4,886	⁽¹⁾		-			23,131
Cash equivalents		13,772		-			-			13,772
Total	$	32,017	$	207,973		$	2,237		$	242,227

⁽¹⁾

All underlying securities are financial service industry related.

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

The following tables provide a roll-forward of the Company’s financial instruments measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three month and nine month periods ended September 30, 2016 and 2015.

	Fixed Maturities
Balance, December 31, 2015	$	2,237
Total unrealized gains included in other comprehensive income		63
Balance, March 31, 2016		2,300
Total unrealized gains included in other comprehensive income		68
Balance, June 30, 2016		2,368
Total realized gains included in earnings		57
Total unrealized losses included in other comprehensive income		(61	)
Settlements		(1,000	)
Balance, September 30, 2016	$	1,364

	Fixed Maturities
Balance, December 31, 2014	$	2,214
Total unrealized gains included in other comprehensive income		50
Balance, March 31, 2015		2,264
Total unrealized losses included in other comprehensive loss		(57	)
Balance, June 30, 2015		2,207
Total unrealized gains included in other comprehensive loss		34
Balance, September 30, 2015	$	2,241

Summary of realized investment gains (losses)

The following table is a summary of realized investment gains (losses) for the three month and nine month periods ended September 30, 2016 and 2015.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Gross gains	$	543		$	35		$	1,497		$	5,493
Gross losses		(16	)		(28	)		(86	)		(387	)
Realized investment gains, net	$	527		$	7		$	1,411		$	5,106