Investments (Tables)

6 Months Ended

Jun. 30, 2018

Investments Aggregated by Type and Industry

Fixed maturities were comprised of the following:

	June 30, 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	$	27,776	$	12	$	1,089	$	28,853
Obligations of states and political subdivisions		9,363		346		88		9,105
Corporate securities:
Utilities and telecom		18,963		1,030		859		18,792
Financial services		51,649		1,070		2,145		52,724
Other business – diversified		47,222		312		2,802		49,712
Other consumer – diversified		53,691		91		4,017		57,617
Total corporate securities		171,525		2,503		9,823		178,845
Redeemable preferred stocks:
Other consumer – diversified		192		-		-		192
Total redeemable preferred stocks		192		-		-		192
Total fixed maturities	$	208,856	$	2,861	$	11,000	$	216,995

	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

Bonds having an amortized cost of $10,647 and $11,178 and included in the tables above were on deposit with insurance regulatory authorities as of June 30, 2018 and December 31, 2017, respectively, in accordance with statutory requirements.

Equity securities were comprised of the following:

	June 30, 2018
	Carrying Value		Gross Unrealized Gains		Gross Unrealized Losses		Cost or Amortized Cost
Equity securities:
Common and non-redeemable preferred stocks:
Utilities and telecom	$	1,509	$	545	$	-	$	964
Financial services		5,553		769		-		4,784
Other business – diversified		282		235		-		47
Other consumer – diversified		15,681		10,558		-		5,123
Total equity securities	$	23,025	$	12,107	$	-	$	10,918

	December 31, 2017
	Carrying Value		Gross Unrealized Gains		Gross Unrealized Losses		Cost or Amortized Cost
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

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 June 30, 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.

	June 30, 2018				December 31, 2017
	Carrying Value		Amortized Cost		Carrying Value		Amortized Cost
Due in one year or less	$	3,900	$	3,900	$	1,653	$	1,655
Due after one year through five years		18,131		18,413		13,738		14,056
Due after five years through ten years		124,530		129,930		112,847		112,116
Due after ten years		45,459		47,123		67,328		64,928
Varying maturities		16,836		17,629		19,542		19,789
Totals	$	208,856	$	216,995	$	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 June 30, 2018 and December 31, 2017.

	June 30, 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	$	11,636	$	359	$	14,630	$	730	$	26,266	$	1,089
Obligations of states and political subdivisions		3,982		88		-		-		3,982		88
Corporate securities		109,673		6,062		29,694		3,761		139,367		9,823
Total temporarily impaired securities	$	125,291	$	6,509	$	44,324	$	4,491	$	169,615	$	11,000

	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 June 30, 2018, 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	$	-	$	207,510		$	1,346	⁽¹⁾	$	208,856
Equity securities		17,704		5,321	⁽¹⁾		-			23,025
Cash equivalents		6,648		-			-			6,648
Total	$	24,352	$	212,831		$	1,346		$	238,529

⁽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 (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (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 and six month periods ended June 30, 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
Total unrealized gains included in other comprehensive loss		7
Balance, June 30, 2018	$	1,346

	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

Summary of Realized Investment Gains (Losses)

The following table is a summary of realized investment gains (losses) for the three month and six month periods ended June 30, 2018 and 2017.

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Gross gains	$	247		$	1,409		$	617		$	2,340
Gross losses		(304	)		(13	)		(304	)		(61	)
Realized investment gains (losses), net	$	(57	)	$	1,396		$	313		$	2,279

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 and six month periods ended June 30, 2018 and 2017.

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018			2017
Net gains (losses) recognized during the period on equity securities	$	4,089	$	-	$	(330	)	$	-
Less: Net gains (losses) recognized during the period on equity securities sold during the period		-		-		-			-
Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date	$	4,089	$	-	$	(330	)	$	-