Note 3.

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 March 31, 2021 and December 31, 2020.

Fixed maturities were comprised of the following:

	March 31, 2021
	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	$	34,639	$	788	$	260	$	34,111
Obligations of states and political subdivisions		11,559		658		—		10,901
Corporate securities:
Utilities and telecom		29,295		2,505		137		26,927
Financial services		74,847		6,254		271		68,864
Other business – diversified		38,959		3,277		264		35,946
Other consumer – diversified		57,252		5,348		179		52,083
Total corporate securities		200,353		17,384		851		183,820
Redeemable preferred stocks:
Other consumer – diversified		250		58		—		192
Total redeemable preferred stocks		250		58		—		192
Total fixed maturities	$	246,801	$	18,888	$	1,111	$	229,024

	December 31, 2020
	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	$	30,762	$	1,381	$	26	$	29,407
Obligations of states and political subdivisions		11,802		898		—		10,904
Corporate securities:
Utilities and telecom		30,359		4,423		—		25,936
Financial services		78,258		9,811		6		68,453
Other business – diversified		41,145		5,689		15		35,471
Other consumer – diversified		61,530		9,479		47		52,098
Total corporate securities		211,292		29,402		68		181,958
Redeemable preferred stocks:
Other consumer – diversified		250		58		—		192
Total redeemable preferred stocks		250		58		—		192
Total fixed maturities	$	254,106	$	31,739	$	94	$	222,461

Bonds having an amortized cost of $10,444 and $10,670 and included in the tables above were on deposit with insurance regulatory authorities as of March 31, 2021 and December 31, 2020, respectively, in accordance with statutory requirements. Additionally, bonds having an amortized cost of $6,391 and $1,997 and included in the tables above were pledged as collateral to FHLB at March 31, 2021 and December 31, 2020, respectively.

Equity securities were comprised of the following:

	March 31, 2021
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Cost or Amortized Cost
Equity securities:
Common and non-redeemable preferred stocks:
Financial services	$	624	$	424	$	—	$	200
Other business – diversified		17,276		12,643		—		4,633
Total equity securities	$	17,900	$	13,067	$	—	$	4,833

	December 31, 2020
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Cost or Amortized Cost
Equity securities:
Common and non-redeemable preferred stocks:
Financial services	$	2,111		351		—		1,760
Other business – diversified		16,605		11,972		—		4,633
Total equity securities	$	18,716	$	12,323	$	—	$	6,393

The carrying value and amortized cost of the Company’s investments in fixed maturities at March 31, 2021 and December 31, 2020 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, 2021				December 31, 2020
	Carrying Value		Amortized Cost		Carrying Value		Amortized Cost
Due in one year or less	$	3,031	$	3,001	$	2,041	$	2,015
Due after one year through five years		16,633		15,539		18,373		17,039
Due after five years through ten years		86,651		80,529		89,892		79,993
Due after ten years		116,883		106,365		124,609		104,527
Asset backed securities		23,603		23,590		19,191		18,887
Totals	$	246,801	$	229,024	$	254,106	$	222,461

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, 2021 and December 31, 2020.

	March 31, 2021
	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		$	12,883		$	260		$	—		$	—		$	12,883		$	260
Corporate securities			19,095			851			—			—			19,095			851
Total temporarily impaired securities		$	31,978		$	1,111		$	—		$	—		$	31,978		$	1,111

	December 31, 2020
	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		$	7,045		$	26		$	—		$	—		$	7,045		$	26
Corporate securities			4,602			68			—			—			4,602			68
Total temporarily impaired securities		$	11,647		$	94		$	—		$	—		$	11,647		$	94

The evaluation for an other than temporary impairment (“OTTI”) 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 three month periods ended March 31, 2021 and 2020.

As of March 31, 2021 and December 31, 2020, there were thirty-seven and twenty securities, respectively, in an unrealized loss position which primarily included certain of the Company’s investments in fixed maturities within the utilities and telecom, financial services, other diversified business and other diversified consumer sectors. The increase in the number of securities in an unrealized loss position during the three month period ended March 31, 2021, was primarily attributable to a decline in market values in certain of the Company’s fixed maturity securities as a result of a rising 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 March 31, 2021.

The following table is a summary of realized investment gains for the three month period ended March 31, 2021 and 2020.

	Three Months Ended March 31, 2021
	Fixed Maturities			Equity Securities			Other Invested Assets			Total
Gains		$	121		$	—		$	—		$	121
Losses			—			—			—			—
Realized investment gains, net		$	121		$	—		$	—		$	121

	Three Months Ended March 31, 2020
	Fixed Maturities			Equity Securities			Other Invested Assets			Total
Gains		$	249		$	—		$	—		$	249
Losses			—			—			—			—
Realized investment gains, net		$	249		$	—		$	—		$	249

The following table presents the portion of unrealized gains (losses) related to equity securities still held for the three month period ended March 31, 2021 and 2020.

	Three Months Ended March 31,
	2021			2020
Net realized and unrealized gains (losses) recognized during the period on equity securities		$	744		$	(8,455	)
Less: Net realized gains (losses) recognized during the period on equity securities sold during the period			—			—
Unrealized gains (losses) recognized during the reporting period on equity securities, net		$	744		$	(8,455	)

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 $3,183 and $3,238 as of March 31, 2021 and December 31, 2020, respectively. The Company’s VIE interests, carried as a part of investment in unconsolidated trusts, totaled $1,238 as of March 31, 2021 and December 31, 2020.

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 $4,421 and $4,476, as of March 31, 2021 and December 31, 2020, respectively. As of March 31, 2021 and December 31, 2020, the Company had outstanding commitments totaling $1,997, whereby the Company is committed to fund these investments and may be called by the partnership during the commitment period to fund the purchase of new investments and partnership expenses.