Note 2. Investments

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 December 31, 2019 and December 31, 2018.

Fixed maturities were comprised of the following:

	2019
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Amortized Cost
Fixed maturities:
Bonds:
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	20,259	$	467	$	53	$	19,845
Obligations of states and political subdivisions		11,940		371		53		11,622
Corporate securities:
Utilities and telecom		26,648		2,404		32		24,276
Financial services		73,917		4,249		57		69,725
Other business – diversified		41,706		2,335		98		39,469
Other consumer – diversified		57,752		3,702		54		54,104
Total corporate securities		200,023		12,690		241		187,574
Redeemable preferred stocks:
Other consumer – diversified		250		58		-		192
Total redeemable preferred stocks		250		58		-		192
Total fixed maturities	$	232,472	$	13,586	$	347	$	219,233

	2018
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		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 $10,669 and $10,452 and included in the tables above were on deposit with insurance regulatory authorities at December 31, 2019 and 2018, respectively, in accordance with statutory requirements.

	2019
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Cost or Amortized Cost
Equity securities:
Common and non-redeemable preferred stocks:
Financial services		3,159		624		-		2,535
Other business – diversified		19,763		15,130		-		4,633
Total equity securities	$	22,922	$	15,754	$	-	$	7,168

	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

The carrying value and amortized cost of the Company’s investments in fixed maturities at December 31, 2019 and 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.

	2019				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		14,664		14,280		19,787		19,699
Due after five years through ten years		77,934		73,521		127,617		133,863
Due after ten years		130,680		122,313		43,823		46,338
Asset backed securities		9,194		9,111		16,009		16,874
Totals	$	232,472	$	219,233	$	210,386	$	219,924

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, 2019 and 2018.

	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	$	3,432	$	22	$	3,533	$	31	$	6,965	$	53
Obligations of states and political subdivisions		3,106		53		-		-		3,106		53
Corporate securities		23,245		145		2,504		96		25,749		241
Total temporarily impaired securities	$	29,783	$	220	$	6,037	$	127	$	35,820	$	347

	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

The evaluation for an other than temporary impairment is a quantitative and qualitative process, which is subject to risks and uncertainties in the determination of whether declines in the fair value of investments are other than temporary. Potential risks and uncertainties include, among other things, changes in general economic conditions, an issuer’s financial condition or near term recovery prospects and the effects of changes in interest rates. In evaluating a potential impairment, the Company considers, among other factors, management’s intent and ability to hold the securities until price recovery, the nature of the investment and the expectation of prospects for the issuer and its industry, the status of an issuer’s continued satisfaction of its obligations in accordance with their contractual terms, and management’s expectation as to the issuer’s ability and intent to continue to do so, as well as ratings actions that may affect the issuer’s credit status.

There were no OTTI charges recorded during the year ended December 31, 2019. During the year ended December 31, 2018, the Company recorded OTTI charges related to certain fixed maturity securities of $1,525 as a charge to net income due to management’s intention to sell such securities.

As of December 31, 2019 and 2018, there were thirty and one hundred forty securities, respectively, in an unrealized loss position which primarily included certain of the Company’s investments in fixed maturities within the financial services, other diversified business and other diversified consumer sectors. The decrease in the number and value of securities in an unrealized loss position during the year ended December 31, 2019, was primarily attributable to the appreciation of fixed maturity market prices due to the current interest rate environment. The Company does not currently intend to sell nor does it expect to be required to sell any of the securities in an unrealized loss position. Based upon the Company’s expected continuation of receipt of contractually required principal and interest payments and its intent and ability to retain the securities until price recovery, as well as the Company’s evaluation of other relevant factors, including those described above, the Company has deemed these securities to be temporarily impaired as of December 31, 2019.

Investment income was earned from the following sources:

	2019		2018
Fixed maturities	$	8,485	$	8,432
Equity securities		282		440
Other		319		677
		9,086		9,549
Investment expenses		107		-
Net investment income	$	8,979	$	9,549

A summary of realized investment gains (losses) follows:

	2019
	Fixed Maturities			Equity Securities		Other Invested Assets		Total
Gains	$	2,003		$	1,221	$	-	$	3,224
Losses		(1,650	)		-		-		(1,650	)
Realized investment gains (losses), net	$	353		$	1,221	$	-	$	1,574

	2018
	Fixed Maturities			Equity Securities		Other Invested Assets		Total
Gains	$	884		$	272	$	5,827	$	6,983
Losses		(1,829	)		-		-		(1,829	)
Realized investment gains, net	$	(945	)	$	272	$	5,827	$	5,154

Proceeds from the sales of available-for-sale fixed maturities were as follows:

	2019			2018
Sales proceeds	$	117,530		$	30,078
Gross gains		2,003			884
Gross losses		(1,650	)		(1,829	)

Sales of available-for-sale securities in 2019 were primarily a result of improving the overall risk versus return profile of the portfolio.

	2019		2018
Net realized and unrealized gains (losses) recognized during the period on equity securities	$	6,732	$	(1,922	)
Less: Net realized gains (losses) recognized during the period on equity securities sold during the period		1,221		272
Unrealized gains (losses) on equity securities, net	$	5,511	$	(2,194	)

The Company’s bond portfolio included 98% investment grade securities, as defined by the NAIC, at December 31, 2019.

Variable Interest Entities

The Company holds passive interests in a number of entities that are considered to be Variable Interest Entities (VIEs) under GAAP guidance. The Company's VIE interests principally consist of interests in limited partnerships and limited liability companies formed for the purpose of achieving diversified equity returns. The Company's VIE interests, carried as a part of other invested assets, totaled $9,960 and $7,424 at December 31, 2019 and 2018, respectively. The Company's VIE interests, carried as a part of investment in unconsolidated subsidiaries, totaled $1,238 at December 31, 2019 and 2018.

The Company does not have power over the activities that most significantly impact the economic performance of these VIEs and thus is not the primary beneficiary. Therefore, the Company has not consolidated these VIEs. The Company’s involvement with each VIE is limited to its direct ownership interest in the VIE. The Company has no arrangements with any of the VIEs to provide other financial support to or on behalf of the VIE. The Company’s maximum loss exposure relative to these investments was limited to the carrying value of the Company’s investment in the VIEs, which amount to $11,198 and $8,662, at December 31, 2019 and 2018, respectively. As of December 31, 2019 and 2018, the Company has outstanding commitments totaling $1,997 and $0, respectively, whereby the Company is committed to fund these investments and may be called by such VIEs during the commitment period to fund the purchase of new investments and partnership expenses.