Investments (Tables)

3 Months Ended

Mar. 31, 2017

Investments aggregated by type and industry

Investments were comprised of the following:

	March 31, 2017
	Carrying Value		Gross Unrealized Gains		Gross Unrealized Losses		Cost or Amortized Cost
Fixed maturities:
Bonds:
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	29,469	$	194	$	513	$	29,788
Obligations of states and political subdivisions		17,690		624		184		17,250
Corporate securities:
Utilities and telecom		18,065		1,476		69		16,658
Financial services		52,480		2,097		765		51,148
Other business – diversified		48,320		852		2,120		49,588
Other consumer – diversified		41,825		348		1,559		43,036
Total corporate securities		160,690		4,773		4,513		160,430
Redeemable preferred stocks:
Other consumer – diversified		192		-		-		192
Total redeemable preferred stocks		192		-		-		192
Total fixed maturities		208,041		5,591		5,210		207,660
Equity securities:
Common and non-redeemable preferred stocks:
Utilities and telecom		1,462		498		-		964
Financial services		5,588		760		-		4,828
Other business – diversified		250		203		-		47
Other consumer – diversified		16,101		10,487		-		5,614
Total equity securities		23,401		11,948		-		11,453
Other invested assets		9,542		-		-		9,542
Policy loans		2,181		-		-		2,181
Real estate		38		-		-		38
Investments in unconsolidated trusts		1,238		-		-		1,238
Total investments	$	244,441	$	17,539	$	5,210	$	232,112

	December 31, 2016
	Carrying Value		Gross Unrealized Gains		Gross Unrealized Losses		Cost or Amortized Cost
Fixed maturities:
Bonds:
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	31,102	$	197	$	553	$	31,458
Obligations of states and political subdivisions		17,572		625		308		17,255
Corporate securities:
Utilities and telecom		18,034		1,462		88		16,660
Financial services		57,282		1,880		911		56,313
Other business – diversified		57,419		1,071		2,337		58,685
Other consumer – diversified		29,069		471		1,344		29,942
Total corporate securities		161,804		4,884		4,680		161,600
Redeemable preferred stocks:
Other consumer – diversified		192		-		-		192
Total redeemable preferred stocks		192		-		-		192
Total fixed maturities		210,670		5,706		5,541		210,505
Equity securities:
Common and non-redeemable preferred stocks:
Utilities and telecom		1,601		637		-		964
Financial services		5,402		574		-		4,828
Other business – diversified		244		197		-		47
Other consumer – diversified		13,010		7,396		-		5,614
Total equity securities		20,257		8,804		-		11,453
Other invested assets		9,709		-		-		9,709
Policy loans		2,265		-		-		2,265
Real estate		38		-		-		38
Investments in unconsolidated trusts		1,238		-		-		1,238
Total investments	$	244,177	$	14,510	$	5,541	$	235,208

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 March 31, 2017 and December 31, 2016 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, 2017				December 31, 2016
	Carrying Value		Amortized Cost		Carrying Value		Amortized Cost
Due in one year or less	$	2,949	$	2,908	$	2,544	$	2,507
Due after one year through five years		19,725		19,578		20,278		20,038
Due after five years through ten years		101,460		101,247		90,667		90,926
Due after ten years		66,449		66,170		80,099		79,627
Varying maturities		17,458		17,757		17,082		17,407
Totals	$	208,041	$	207,660	$	210,670	$	210,505

Investments aggregated by industry

The following table sets forth the carrying value, cost or amortized cost, and net unrealized gains (losses) of the Company’s investments aggregated by industry as of March 31, 2017 and December 31, 2016.

	March 31, 2017							December 31, 2016
	Carrying Value		Cost or Amortized Cost		Unrealized Gains (Losses)			Carrying Value		Cost or Amortized Cost		Unrealized Gains (Losses)
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	29,469	$	29,788	$	(319	)	$	31,102	$	31,458	$	(356	)
Obligations of states and political subdivisions		17,690		17,250		440			17,572		17,255		317
Utilities and telecom		19,527		17,622		1,905			19,635		17,624		2,011
Financial services		58,068		55,976		2,092			62,684		61,141		1,543
Other business – diversified		48,570		49,635		(1,065	)		57,663		58,732		(1,069	)
Other consumer – diversified		58,118		48,842		9,276			42,271		35,748		6,523
Other investments		12,999		12,999		-			13,250		13,250		-
Investments	$	244,441	$	232,112	$	12,329		$	244,177	$	235,208	$	8,969

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, 2017 and December 31, 2016.

	March 31, 2017
	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	$	20,307	$	513	$	-	$	-	$	20,307	$	513
Obligations of states and political subdivisions		7,869		184		-		-		7,869		184
Corporate securities		54,440		1,982		20,538		2,531		74,978		4,513
Total temporarily impaired securities	$	82,616	$	2,679	$	20,538	$	2,531	$	103,154	$	5,210

	December 31, 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	$	23,494	$	553	$	-	$	-	$	23,494	$	553
Obligations of states and political subdivisions		8,747		308		-		-		8,747		308
Corporate securities		59,404		2,124		20,587		2,556		79,991		4,680
Total temporarily impaired securities	$	91,645	$	2,985	$	20,587	$	2,556	$	112,232	$	5,541

Financial instruments carried at fair value measured on a recurring basis

As of March 31, 2017, 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	$	-	$	206,739		$	1,302	⁽¹⁾	$	208,041
Equity securities		18,114		5,287	⁽¹⁾		-			23,401
Cash equivalents		10,678		-			-			10,678
Total	$	28,792	$	212,026		$	1,302		$	242,120

⁽¹⁾

All underlying securities are financial service industry related.

As of December 31, 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	$	-	$	209,406		$	1,264	⁽¹⁾	$	210,670
Equity securities		15,153		5,104	⁽¹⁾		-			20,257
Cash equivalents		9,811		-			-			9,811
Total	$	24,964	$	214,510		$	1,264		$	240,738

⁽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 periods ended March 31, 2017 and 2016.

	Fixed Maturities
Balance, December 31, 2016	$	1,264
Total unrealized gains included in other comprehensive income		38
Balance, March 31, 2017	$	1,302

	Fixed Maturities
Balance, December 31, 2015	$	2,237
Total unrealized gains included in other comprehensive income		63
Balance, March 31, 2016	$	2,300

Summary of realized investment gains (losses)

The following table is a summary of realized investment gains (losses) for the three month periods ended March 31, 2017 and 2016.

	Three Months Ended March 31,
	2017			2016
Gross gains	$	931		$	822
Gross losses		(48	)		(70	)
Realized investment gains, net	$	883		$	752