Investments (Tables)

9 Months Ended

Sep. 30, 2017

Investments aggregated by type and industry

The following tables set forth the carrying value, gross unrealized gains, gross unrealized losses and cost or amortized cost of the Company’s investments, aggregated by type and industry, as of September 30, 2017 and December 31, 2016.

	September 30, 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	$	32,426	$	189	$	414	$	32,651
Obligations of states and political subdivisions		17,882		696		54		17,240
Corporate securities:
Utilities and telecom		20,463		1,636		76		18,903
Financial services		51,927		2,161		411		50,177
Other business – diversified		41,339		941		1,499		41,897
Other consumer – diversified		53,770		910		1,321		54,181
Total corporate securities		167,499		5,648		3,307		165,158
Redeemable preferred stocks:
Other consumer – diversified		192		-		-		192
Total redeemable preferred stocks		192		-		-		192
Total fixed maturities		217,999		6,533		3,775		215,241
Equity securities:
Common and non-redeemable preferred stocks:
Utilities and telecom		1,484		520		-		964
Financial services		5,579		796		-		4,783
Other business – diversified		275		228		-		47
Other consumer – diversified		14,244		9,120		-		5,124
Total equity securities		21,582		10,664		-		10,918
Other invested assets		9,167		-		-		9,167
Policy loans		2,113		-		-		2,113
Real estate		38		-		-		38
Investments in unconsolidated trusts		1,238		-		-		1,238
Total investments	$	252,137	$	17,197	$	3,775	$	238,715

	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 September 30, 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.

	September 30, 2017				December 31, 2016
	Carrying Value		Amortized Cost		Carrying Value		Amortized Cost
Due in one year or less	$	1,415	$	1,411	$	2,544	$	2,507
Due after one year through five years		16,612		16,795		20,278		20,038
Due after five years through ten years		104,519		103,571		90,667		90,926
Due after ten years		75,117		72,923		80,099		79,627
Varying maturities		20,336		20,541		17,082		17,407
Totals	$	217,999	$	215,241	$	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 September 30, 2017 and December 31, 2016.

	September 30, 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	$	32,426	$	32,651	$	(225	)	$	31,102	$	31,458	$	(356	)
Obligations of states and political subdivisions		17,882		17,240		642			17,572		17,255		317
Utilities and telecom		21,947		19,867		2,080			19,635		17,624		2,011
Financial services		57,506		54,960		2,546			62,684		61,141		1,543
Other business – diversified		41,614		41,944		(330	)		57,663		58,732		(1,069	)
Other consumer – diversified		68,206		59,497		8,709			42,271		35,748		6,523
Other investments		12,556		12,556		-			13,250		13,250		-
Investments	$	252,137	$	238,715	$	13,422		$	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 September 30, 2017 and December 31, 2016.

	September 30, 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	$	15,900	$	188	$	9,016	$	226	$	24,916	$	414
Obligations of states and political subdivisions		2,994		17		1,978		37		4,972		54
Corporate securities		30,340		451		33,204		2,856		63,544		3,307
Total temporarily impaired securities	$	49,234	$	656	$	44,198	$	3,119	$	93,432	$	3,775

	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 September 30, 2017, 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	$	-	$	216,648		$	1,351	⁽¹⁾	$	217,999
Equity securities		16,233		5,349	⁽¹⁾		-			21,582
Cash equivalents		8,884		-			-			8,884
Total	$	25,117	$	221,997		$	1,351		$	248,465

⁽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		Significant Other Observable Inputs			Significant Unobservable Inputs
	(Level 1)		(Level 2)			(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 and nine month periods ended September 30, 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
Total unrealized gains included in other comprehensive income		30
Balance, June 30, 2017		1,332
Total unrealized gains included in other comprehensive income		19
Balance, September 30, 2017	$	1,351

	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

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, 2017 and 2016.

	Three Months Ended September 30,					Nine Months Ended September 30,
	2017		2016			2017			2016
Gross gains	$	539	$	543		$	2,879		$	1,497
Gross losses		-		(16	)		(61	)		(86	)
Realized investment gains, net	$	539	$	527		$	2,818		$	1,411