Results for reporting periods beginning after January 1, 2020 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable U.S. GAAP.


	March 31, 2020
	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Debt Securities:
U.S. government obligations and agencies	$	59,090	$	—	$	2,997	$	(3)	$	62,084
Corporate bonds	464,387		(665)		11,412		(6,409)		468,725
Mortgage-backed and asset-backed securities	314,936		—		9,839		(1,393)		323,382
Municipal bonds	3,395		—		194		(3)		3,586
Redeemable preferred stock	10,018		(126)		90		(510)		9,472
Total	$	851,826	$	(791)	$	24,532	$	(8,318)	$	867,249


	December 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Debt Securities:
U.S. government obligations and agencies	$	53,688	$	864	$	(188)	$	54,364
Corporate bonds	457,180		19,179		(141)		476,218
Mortgage-backed and asset-backed securities	304,285		7,400		(606)		311,079
Municipal bonds	3,397		103		(4)		3,496
Redeemable preferred stock	9,786		427		(86)		10,127
Total	$	828,336	$	27,973	$	(1,025)	$	855,284

The following table provides the credit quality of available-for-sale debt securities with contractual maturities as of the dates presented (dollars in thousands):


	March 31, 2020						December 31, 2019
Equivalent S&P Credit Ratings	Fair Value		% of Total Fair Value		Fair Value		% of Total Fair Value
AAA	$	388,197	44.8	%	$	372,442	43.6	%
AA	95,823		11.0	%	99,103		11.6	%
A	242,406		28.0	%	238,766		27.9	%
BBB	136,794		15.8	%	143,889		16.8	%
BB and Below	242		—	%	—		—
No Rating Available	3,787		0.4	%	1,084		0.1	%
Total	$	867,249	100.0	%	$	855,284	100.0	%

The table above includes credit quality ratings by Standard and Poor’s Rating Services, Inc. (“S&P”), Moody’s Investors Service, Inc. and Fitch Ratings, Inc. The Company has presented the highest rating of the three rating agencies for each investment position.

The following table summarizes the amortized cost and fair value of mortgage-backed and asset-backed securities as of the dates presented (in thousands):


	March 31, 2020						December 31, 2019
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Mortgage-backed Securities:
Agency	$	154,253	$	159,262	$	143,723	$	144,729
Non-agency	69,919		74,088		71,140		75,896
Asset-backed Securities:
Auto loan receivables	42,796		42,658		42,767		43,127
Credit card receivables	20,677		20,594		21,145		21,487
Other receivables	27,291		26,780		25,510		25,840
Total	$	314,936	$	323,382	$	304,285	$	311,079

The following tables summarize debt securities available-for-sale for which an allowance for expected credit losses has not been recorded at March 31, 2020, and December 31, 2019 aggregated by major security type and length of time in a continuous unrealized loss position as of the dates presented (in thousands):


	March 31, 2020
	Less Than 12 Months								12 Months or Longer
	Number of Issues	Fair Value		Unrealized Losses		Number of Issues	Fair Value		Unrealized Losses
Debt Securities:
U.S. government obligations and agencies	—	$	—	$	—	1	$	129	$	(3)
Corporate bonds	75	63,401		(2,868)		1	215		(38)
Mortgage-backed and asset-backed securities	58	66,017		(1,354)		5	3,534		(39)
Municipal bonds	—	—		—		1	277		(3)
Redeemable preferred stock	16	1,149		(75)		—	—		—
Total	149	$	130,567	$	(4,297)	8	$	4,155	$	(83)


	December 31, 2019
	Less Than 12 Months								12 Months or Longer
	Number of Issues	Fair Value		Unrealized Losses		Number of Issues	Fair Value		Unrealized Losses
Debt Securities:
U.S. government obligations and agencies	2	$	3,836	$	(108)	4	$	23,186	$	(80)
Corporate bonds	18	16,808		(107)		7	5,866		(34)
Mortgage-backed and asset-backed securities	42	58,023		(245)		26	34,985		(361)
Municipal bonds	—	—		—		1	276		(4)
Redeemable preferred stock	6	630		(8)		4	1,489		(78)
Total	68	$	79,297	$	(468)	42	$	65,802	$	(557)

Unrealized losses on available-for-sale debt securities in the above chart as of March 31, 2020 have not been recognized into income as credit losses because the issuers are of high credit quality (rated AA or higher), management does not intend to sell and it is likely management will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates and other market conditions. There were no material factors impacting any one category or specific security requiring an accrual for credit loss. The issuers continue to make principal and interest payments on the bonds. The fair value is expected to recover as the bonds approach maturity.

Results for reporting periods occurring before January 1, 2020 continue to be reported in accordance with previously applicable U.S. GAAP and not presented under ASC 326, which was adopted by the Company on January 1, 2020.


	March 31, 2020
	Amortized Cost		Fair Value
Due in one year or less	$	127,107	$	127,033
Due after one year through five years	423,886		433,632
Due after five years through ten years	268,618		276,846
Due after ten years	30,512		28,046
Perpetual maturity securities	1,703		1,692
Total	$	851,826	$	867,249

All securities, except those with perpetual maturities, were categorized in the table above utilizing years to effective maturity. Effective maturity takes into consideration all forms of potential prepayment, such as call features or prepayment schedules, that shorten the lifespan of contractual maturity dates.

The following table provides certain information related to available-for-sale debt securities and equity securities during the periods presented (in thousands):


	Three Months Ended March 31,
	2020		2019
Proceeds from sales and maturities (fair value):
Available-for-sale debt securities	$	42,513	$	51,185
Equity securities	$	—	$	17,161
Gross realized gains on sale of securities:
Available-for-sale debt securities	$	346	$	187
Equity securities	$	—	$	165
Gross realized losses on sale of securities:
Available-for-sale debt securities	$	(47)	$	(42)
Equity securities	$	—	$	(11,835)

The following table presents the components of net investment income, comprised primarily of interest and dividends, for the periods presented (in thousands):


	Three Months Ended March 31,
	2020		2019
Available-for-sale debt securities	$	6,015	$	6,151
Equity securities	545		1,042

Cash and cash equivalents (1)	791		1,300
Other (2)	254		259
Total investment income	7,605		8,752
Less: Investment expenses (3)	(771)		(610)
Net investment income	$	6,834	$	8,142


(1)						Includes interest earned on restricted cash and cash equivalents.
(2)						Includes investment income earned on real estate investments.
(3)						Includes custodial fees, investment accounting and advisory fees, and expenses associated with real estate investments.

The following table provides the unrealized gains and losses recorded during the periods presented on equity securities still held at the end of the reported period (in thousands):


	Three Months Ended March 31,
	2020		2019
Unrealized gains and (losses) recognized during the reported period on equity securities still held at the end of the reported period	$	(8,024)	$	2,400


	March 31,		December 31,
	2020		2019
Income Producing:
Investment real estate	$	14,679	$	14,679
Less: Accumulated depreciation	(1,388)		(1,284)
	13,291		13,395
Non-Income Producing:
Investment real estate	2,190		2,190
Investment real estate, net	$	15,481	$	15,585