Investments (Tables)

9 Months Ended

Sep. 30, 2019

Investments Aggregated by Type and Industry

The following tables set forth the estimated fair value, gross unrealized gains, gross unrealized losses and cost or amortized cost of the Company’s investments in fixed maturities and equity securities, aggregated by type and industry, as of September 30, 2019 and December 31, 2018.

Fixed maturities were comprised of the following:

	September 30, 2019
	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	$	19,338	$	624	$	122	$	18,836
Obligations of states and political subdivisions		4,999		432		-		4,567
Corporate securities:
Utilities and telecom		21,287		2,110		3		19,180
Financial services		58,290		3,510		69		54,849
Other business – diversified		51,719		2,446		87		49,360
Other consumer – diversified		61,692		3,644		92		58,140
Total corporate securities		192,988		11,710		251		181,529
Redeemable preferred stocks:
Other consumer – diversified		192		—		—		192
Total redeemable preferred stocks		192		—		—		192
Total fixed maturities	$	217,517	$	12,766	$	373	$	205,124

	December 31, 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	$	27,422	$	36	$	1,061	$	28,447
Obligations of states and political subdivisions		8,364		347		72		8,089
Corporate securities:
Utilities and telecom		19,642		873		431		19,200
Financial services		49,477		747		2,942		51,672
Other business – diversified		49,196		226		2,844		51,814
Other consumer – diversified		56,093		84		4,501		60,510
Total corporate securities		174,408		1,930		10,718		183,196
Redeemable preferred stocks:
Other consumer – diversified		192		—		—		192
Total redeemable preferred stocks		192		—		—		192
Total fixed maturities	$	210,386	$	2,313	$	11,851	$	219,924

Bonds having an amortized cost of $10,444 and $10,452 and included in the tables above were on deposit with insurance regulatory authorities as of September 30, 2019 and December 31, 2018, respectively, in accordance with statutory requirements.

Equity securities were comprised of the following:

	September 30, 2019
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Cost or Amortized Cost
Equity securities:
Common and non-redeemable preferred stocks:
Financial services	$	2,797	$	309	$	—	$	2,488
Other business – diversified		312		265		—		47
Other consumer – diversified		16,398		11,765		—		4,633
Total equity securities	$	19,507	$	12,339	$	—	$	7,168

	December 31, 2018
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Cost or Amortized Cost
Equity securities:
Common and non-redeemable preferred stocks:
Utilities and telecom	$	1,686	$	722	$	—	$	964
Financial services		4,552		172		—		4,380
Other business – diversified		306		259		—		47
Other consumer – diversified		14,214		9,090		—		5,124
Total equity securities	$	20,758	$	10,243	$	—	$	10,515

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, 2019 and December 31, 2018 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, 2019				December 31, 2018
	Carrying Value		Amortized Cost		Carrying Value		Amortized Cost
Due in one year or less	$	-	$	-	$	3,150	$	3,150
Due after one year through five years		13,665		13,267		19,787		19,699
Due after five years through ten years		76,413		72,480		127,617		133,863
Due after ten years		119,335		111,267		43,823		46,338
Asset backed securities		8,104		8,110		16,009		16,874
Totals	$	217,517	$	205,124	$	210,386	$	219,924

Investment Securities with Continuous Unrealized Loss Position

The following tables present the Company’s unrealized losses for securities by type and length of time the security was in a continuous unrealized loss position as of September 30, 2019 and December 31, 2018.

	September 30, 2019
	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	$	1,020	$	4	$	7,689	$	118	$	8,709	$	122
Corporate securities		22,791		61		7,430		190		30,221		251
Total temporarily impaired securities	$	23,811	$	65	$	15,119	$	308	$	38,930	$	373

	December 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	$	—	$	—	$	24,786	$	1,061	$	24,786	$	1,061
Obligations of states and political subdivisions		—		—		3,980		72		3,980		72
Corporate securities		49,633		1,592		97,012		9,126		146,645		10,718
Total temporarily impaired securities	$	49,633	$	1,592	$	125,778	$	10,259	$	175,411	$	11,851

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, 2019 and 2018.

	Three Months Ended September 30, 2019
	Fixed Maturities			Equity Securities		Other Invested Assets		Total
Gains	$	1,112		$	108	$	—	$	1,220
Losses		(1,650	)		—		—		(1,650	)
Realized investment gains (losses), net	$	(538	)	$	108	$	—	$	(430	)

	Three Months Ended September 30, 2018
	Fixed Maturities		Equity Securities		Other Invested Assets		Total
Gains	$	212	$	272	$	—	$	484
Losses		—		—		—		—
Realized investment gains (losses), net	$	212	$	272	$	—	$	484

	Nine Months Ended September 30, 2019
	Fixed Maturities			Equity Securities		Other Invested Assets		Total
Gains	$	1,994		$	1,221	$	—	$	3,215
Losses		(1,650	)		—		—		(1,650	)
Realized investment gains (losses), net	$	344		$	1,221	$	—	$	1,565

	Nine Months Ended September 30, 2018
	Fixed Maturities			Equity Securities		Other Invested Assets		Total
Gains	$	829		$	272	$	—	$	1,101
Losses		(304	)		—		—		(304	)
Realized investment gains (losses), net	$	525		$	272	$	—	$	797

Unrealized Gains (Losses) on Equity Securities

The following table presents the portion of unrealized gains (losses) on equity securities still held for the three month and nine month periods ended September 30, 2019 and 2018.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Net realized and unrealized gains (losses) recognized during the period on equity securities	$	1,052	$	1,355	$	3,317	$	1,025
Less: Net realized gains (losses) recognized during the period on equity securities sold during the period		108		272		1,221		272
Unrealized gains (losses) on equity securities, net	$	944	$	1,083	$	2,096	$	753