Investments (Tables)

12 Months Ended

Dec. 31, 2017

Investments aggregated by type and industry

Investments were comprised of the following:

	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	$	31,155	$	149	$	511	$	31,517
Obligations of states and political subdivisions		10,809		630		1		10,180
Corporate securities:
Utilities and telecom		21,882		1,709		130		20,303
Financial services		53,686		2,049		453		52,090
Other business – diversified		44,184		1,024		1,349		44,509
Other consumer – diversified		53,200		924		1,477		53,753
Total corporate securities		172,952		5,706		3,409		170,655
Redeemable preferred stocks:
Other consumer – diversified		192		—		—		192
Total redeemable preferred stocks		192		—		—		192
Total fixed maturities		215,108		6,485		3,921		212,544
Equity securities:
Common and non-redeemable preferred stocks:
Utilities and telecom		1,588		624		—		964
Financial services		5,634		851		—		4,783
Other business – diversified		297		250		—		47
Other consumer – diversified		15,836		10,712		—		5,124
Total equity securities		23,355		12,437		—		10,918
Other invested assets		5,626		—		—		5,626
Policy loans		2,146		—		—		2,146
Real estate		38		—		—		38
Investments in unconsolidated trusts		1,238		—		—		1,238
Total investments	$	247,511	$	18,922	$	3,921	$	232,510

	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

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 December 31, 2017 and 2016.

	2017							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	$	31,155	$	31,517	$	(362	)	$	31,102	$	31,458	$	(356	)
Obligations of states and political subdivisions		10,809		10,180		629			17,572		17,255		317
Utilities and telecom		23,470		21,267		2,203			19,635		17,624		2,011
Financial services		59,320		56,873		2,447			62,684		61,141		1,543
Other business – diversified		44,481		44,556		(75	)		57,663		58,732		(1,069	)
Other consumer – diversified		69,228		59,069		10,159			42,271		35,748		6,523
Other investments		9,048		9,048		—			13,250		13,250		—
Total investments	$	247,511	$	232,510	$	15,001		$	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 December 31, 2017 and 2016.

	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	$	12,175	$	162	$	12,737	$	349	$	24,912	$	511
Obligations of states and political subdivisions		999		1		—		—		999		1
Corporate securities		40,108		653		32,667		2,756		72,775		3,409
Total temporarily impaired securities	$	53,282	$	816	$	45,404	$	3,105	$	98,686	$	3,921

	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 December 31, 2017, 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	$	—	$	213,739		$	1,369	⁽¹⁾	$	215,108
Equity securities		17,973		5,382	⁽¹⁾		—			23,355
Cash equivalents		13,855		—			—			13,855
Total	$	31,828	$	219,121		$	1,369		$	252,318

⁽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:

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	$	—	$	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 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, 2016 to December 31, 2017.

	Fixed Maturities
Balance, January 1, 2016	$	2,237
Total realized gains included in earnings		57
Total unrealized losses included in other comprehensive income		(30	)
Settlements		(1,000	)
Balance, December 31, 2016		1,264
Total unrealized gains included in other comprehensive income		105
Balance, December 31, 2017	$	1,369

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 December 31, 2017 and 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.

	2017				2016
	Carrying Value		Amortized Cost		Carrying Value		Amortized Cost
Due in one year or less	$	1,653	$	1,655	$	2,544	$	2,507
Due after one year through five years		13,738		14,056		20,278		20,038
Due after five years through ten years		112,847		112,116		90,667		90,926
Due after ten years		67,328		64,928		80,099		79,627
Varying maturities		19,542		19,789		17,082		17,407
Totals	$	215,108	$	212,544	$	210,670	$	210,505

Investment income earned

Investment income was earned from the following sources:

	2017			2016
Fixed maturities	$	8,297		$	9,122
Equity securities		467			491
Other		(268	)		271
Total investment income		8,496			9,884
Less investment expenses, included in other expenses		(789	)		(577	)
Net investment income	$	7,707		$	9,307

Summary of realized investment gains (losses)

A summary of realized investment gains (losses) follows:

	2017
	Fixed Maturities			Equity Securities		Other Invested Assets		Total
Gains	$	2,226		$	1,044	$	6,040	$	9,310
Losses		(142	)		—		—		(142	)
Realized investment gains, net	$	2,084		$	1,044	$	6,040	$	9,168

	2016
	Fixed Maturities			Equity Securities		Other Invested Assets		Total
Gains	$	1,119		$	—	$	1,565	$	2,684
Losses		(89	)		—		—		(89	)
Realized investment gains, net	$	1,030		$	—	$	1,565	$	2,595

Proceeds from sales of investments

Proceeds from the sales of investments were as follows:

	2017		2016
Fixed maturities	$	72,760	$	59,072
Equity securities		1,579		—
Other investments		9,653		3,289
Total proceeds	$	83,992	$	62,361

The Company’s bond portfolio included 92% investment grade securities, as defined by the NAIC, at December 31, 2017.