Investments (Tables)

3 Months Ended

Mar. 31, 2018

Investments aggregated by type and industry

Investments were comprised of the following:

	March 31, 2018
	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	$	29,978	$	87	$	966	$	30,857
Obligations of states and political subdivisions		10,666		476		50		10,240
Corporate securities:
Utilities and telecom		18,592		1,262		487		17,817
Financial services		54,061		1,394		1,412		54,079
Other business – diversified		49,639		491		2,366		51,514
Other consumer – diversified		54,720		266		3,275		57,729
Total corporate securities		177,012		3,413		7,540		181,139
Redeemable preferred stocks:
Other consumer – diversified		192		-		-		192
Total redeemable preferred stocks		192		-		-		192
Total fixed maturities		217,848		3,976		8,556		222,428
Equity securities:
Common and non-redeemable preferred stocks:
Utilities and telecom		1,434		470		-		964
Financial services		5,500		716		-		4,784
Other business – diversified		299		252		-		47
Other consumer – diversified		11,703		6,580		-		5,123
Total equity securities		18,936		8,018		-		10,918
Other invested assets		5,663		-		-		5,663
Policy loans		2,105		-		-		2,105
Real estate		38		-		-		38
Investments in unconsolidated trusts		1,238		-		-		1,238
Total investments	$	245,828	$	11,994	$	8,556	$	242,390

	December 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	$	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

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, 2018 and December 31, 2017 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, 2018				December 31, 2017
	Carrying Value		Amortized Cost		Carrying Value		Amortized Cost
Due in one year or less	$	1,498	$	1,502	$	1,653	$	1,655
Due after one year through five years		16,936		17,402		13,738		14,056
Due after five years through ten years		127,271		130,853		112,847		112,116
Due after ten years		53,646		53,539		67,328		64,928
Varying maturities		18,497		19,132		19,542		19,789
Totals	$	217,848	$	222,428	$	215,108	$	212,544

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, 2018 and December 31, 2017.

	March 31, 2018
	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	$	15,379	$	445	$	12,018	$	521	$	27,397	$	966
Obligations of states and political subdivisions		4,029		50		-		-		4,029		50
Corporate securities		97,572		4,118		29,050		3,422		126,622		7,540
Total temporarily impaired securities	$	116,980	$	4,613	$	41,068	$	3,943	$	158,048	$	8,556

	December 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	$	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

Financial instruments carried at fair value measured on a recurring basis

As of March 31, 2018, 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	$	-	$	216,509		$	1,339	⁽¹⁾	$	217,848
Equity securities		13,657		5,279	⁽¹⁾		-			18,936
Cash equivalents		6,807		-			-			6,807
Total	$	20,464	$	221,788		$	1,339		$	243,591

⁽¹⁾

All underlying securities are financial service industry related.

As of December 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		Significant Other Observable Inputs			Significant Unobservable Inputs
	(Level 1)		(Level 2)			(Level 3)			Total
Assets:
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.

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, 2018 and 2017.

	Fixed Maturities
Balance, December 31, 2017	$	1,369
Total unrealized losses included in other comprehensive loss		(30	)
Balance, March 31, 2018	$	1,339

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

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, 2018 and 2017.

	Three Months Ended March 31,
	2018		2017
Gross gains	$	370	$	931
Gross losses		-		(48	)
Realized investment gains, net	$	370	$	883

Unrealized gains (losses) related to equity securities

The following table presents the portion of unrealized gains (losses) related to equity securities still held for the three month periods ended March 31, 2018 and 2017.

	Three Months Ended March 31,
	2018			2017
Net losses recognized during the period on equity securities	$	(4,419	)	$	-
Less: Net gains (losses) recognized during the period on equity securities sold during the period		-			-
Unrealized losses recognized during the reporting period on equity securities still held at the reporting date	$	(4,419	)	$	-