Investments (Tables)

9 Months Ended

Sep. 30, 2018

Investments Aggregated by Type and Industry

Fixed maturities were comprised of the following:

	September 30, 2018
	Estimated Fair 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	$	26,240	$	7	$	1,449	$	27,682
Obligations of states and political subdivisions		8,224		259		135		8,100
Corporate securities:
Utilities and telecom		18,891		855		756		18,792
Financial services		51,517		1,031		2,142		52,628
Other business – diversified		47,267		240		2,668		49,695
Other consumer – diversified		54,807		87		3,889		58,609
Total corporate securities		172,482		2,213		9,455		179,724
Redeemable preferred stocks:
Other consumer – diversified		192		-		-		192
Total redeemable preferred stocks		192		-		-		192
Total fixed maturities	$	207,138	$	2,479	$	11,039	$	215,698

	December 31, 2017
	Estimated Fair 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 $9,896 and $11,178 and included in the tables above were on deposit with insurance regulatory authorities as of September 30, 2018 and December 31, 2017, respectively, in accordance with statutory requirements.

Equity securities were comprised of the following:

	September 30, 2018
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Cost
Equity securities:
Common and non-redeemable preferred stocks:
Utilities and telecom	$	1,602	$	637	$	-	$	965
Financial services		4,770		390		-		4,380
Other business – diversified		320		273		-		47
Other consumer – diversified		17,013		11,890		-		5,123
Total equity securities	$	23,705	$	13,190	$	-	$	10,515

	December 31, 2017
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		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 September 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.

	September 30, 2018				December 31, 2017
	Carrying Value		Amortized Cost		Carrying Value		Amortized Cost
Due in one year or less	$	3,148	$	3,150	$	1,653	$	1,655
Due after one year through five years		19,055		19,408		13,738		14,056
Due after five years through ten years		126,581		131,961		112,847		112,116
Due after ten years		42,251		43,970		67,328		64,928
Varying maturities		16,103		17,209		19,542		19,789
Totals	$	207,138	$	215,698	$	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 September 30, 2018 and December 31, 2017.

	September 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	$	3,923	$	178	$	20,812	$	1,271	$	24,735	$	1,449
Obligations of states and political subdivisions		4,402		135		-		-		4,402		135
Corporate securities		90,396		4,116		50,934		5,339		141,330		9,455
Total temporarily impaired securities	$	98,721	$	4,429	$	71,746	$	6,610	$	170,467	$	11,039

	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 September 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		Significant Other Observable Inputs			Significant Unobservable Inputs
	(Level 1)		(Level 2)			(Level 3)			Total
Assets:
Fixed maturities	$	-	$	206,120		$	1,018	⁽¹⁾	$	207,138
Equity securities		19,155		4,550	⁽¹⁾		-			23,705
Cash equivalents		8,653		-			-			8,653
Total	$	27,808	$	210,670		$	1,018		$	239,496

⁽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 and nine month periods ended September 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
Total realized gains included in earnings		208
Total unrealized losses included in other comprehensive loss		(53	)
Settlements		(483	)
Balance, September 30, 2018	$	1,018

	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

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, 2018 and 2017.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018			2017
Gross gains	$	484	$	539	$	1,101		$	2,879
Gross losses		-		-		(304	)		(61	)
Realized investment gains, net	$	484	$	539	$	797		$	2,818

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 nine month periods ended September 30, 2018 and 2017.

	Three Months Ended September 30,					Nine Months Ended September 30,
	2018			2017		2018			2017
Net gains recognized during the period on equity securities	$	1,355		$	-	$	1,025		$	-
Less: Net losses recognized during the period on equity securities sold during the period		(272	)		-		(272	)		-
Net unrealized gains recognized during the reporting period on equity securities still held at the reporting date	$	1,083		$	-	$	753		$	-