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Investments (Tables)
 9 Months Ended
Sep. 30, 2016
Investments [Abstract]  
Schedule of reconciliation of cost to fair value of available-for-sale securities
The following table summarizes the cost and fair value of our available-for-sale securities:
 
 
 
At September 30, 2016
 (in thousands)
 
Amortized
cost
 
Gross unrealized gains
 
Gross unrealized losses
 
Estimated fair value
Available-for-sale securities:
 
 
 
 
 
 
 
 
U.S. government & agencies
 
$
2,008

 
$
40

 
$
0

 
$
2,048

States & political subdivisions
 
234,111

 
12,207

 
59

 
246,259

Corporate debt securities
 
317,745

 
3,351

 
828

 
320,268

Residential mortgage-backed securities
 
17,246

 
65

 
166

 
17,145

Commercial mortgage-backed securities
 
41,565

 
213

 
793

 
40,985

Collateralized debt obligations
 
66,448

 
263

 
64

 
66,647

Other debt securities
 
2,000

 
3

 
0

 
2,003

Total fixed maturities
 
681,123

 
16,142

 
1,910

 
695,355

Common stock
 
8,949

 
71

 
0

 
9,020

Total available-for-sale securities
 
$
690,072

 
$
16,213

 
$
1,910

 
$
704,375

 

 
 
At December 31, 2015
(in thousands)
 
Amortized
cost
 
Gross unrealized gains
 
Gross unrealized losses
 
Estimated fair value
Available-for-sale securities:
 
 
 
 
 
 
 
 
States & political subdivisions
 
$
221,093

 
$
10,761

 
$
7

 
$
231,847

Corporate debt securities
 
254,464

 
281

 
4,412

 
250,333

Residential mortgage-backed securities
 
13,639

 
4

 
130

 
13,513

Commercial mortgage-backed securities
 
38,630

 
30

 
1,089

 
37,571

Collateralized debt obligations
 
51,905

 
61

 
221

 
51,745

Other debt securities
 
2,241

 
0

 
41

 
2,200

Total fixed maturities
 
581,972

 
11,137

 
5,900

 
587,209

Common stock
 
12,865

 
0

 
133

 
12,732

Total available-for-sale securities
 
$
594,837

 
$
11,137

 
$
6,033

 
$
599,941
Schedule of amortized cost and estimated fair value of fixed maturities by remaining contractual term to maturity
The amortized cost and estimated fair value of fixed maturities at September 30, 2016 are shown below by remaining contractual term to maturity.  Mortgage-backed securities are allocated based upon their stated maturity dates.  Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
 
 
 
At September 30, 2016
(in thousands)
 
Amortized
 
Estimated
 
 
cost
 
fair value
Due in one year or less
 
$
51,666

 
$
51,821

Due after one year through five years
 
314,652

 
319,198

Due after five years through ten years
 
195,967

 
203,310

Due after ten years
 
118,838

 
121,026

Total fixed maturities
 
$
681,123

 
$
695,355
Schedule of available-for-sale securities in a gross unrealized loss position by length of time
Available-for-sale securities in a gross unrealized loss position are as follows.  Data is provided by length of time for securities in a gross unrealized loss position.
 
 
 
At September 30, 2016
(dollars in thousands)
 
Less than 12 months
 
12 months or longer
 
Total
 
 
Fair
value
 
Unrealized losses
 
Fair
value
 
Unrealized losses
 
Fair
 value
 
Unrealized losses
 
No. of holdings
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
States & political subdivisions
 
$
14,735

 
$
59

 
$
0

 
$
0

 
$
14,735

 
$
59

 
7

Corporate debt securities
 
71,837

 
407

 
14,876

 
421

 
86,713

 
828

 
152

Residential mortgage-backed securities
 
7,225

 
27

 
2,816

 
139

 
10,041

 
166

 
11

Commercial mortgage-backed securities
 
18,373

 
107

 
8,426

 
686

 
26,799

 
793

 
25

Collateralized debt obligations
 
11,092

 
31

 
8,727

 
33

 
19,819

 
64

 
10

Total fixed maturities
 
123,262

 
631

 
34,845

 
1,279

 
158,107

 
1,910

 
205

Total available-for-sale securities
 
$
123,262

 
$
631

 
$
34,845

 
$
1,279

 
$
158,107

 
$
1,910

 
205

Quality breakdown of fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment grade
 
$
100,205

 
$
296

 
$
27,442

 
$
688

 
$
127,647

 
$
984

 
79

Non-investment grade
 
23,057

 
335

 
7,403

 
591

 
30,460

 
926

 
126

Total fixed maturities
 
$
123,262

 
$
631

 
$
34,845

 
$
1,279

 
$
158,107

 
$
1,910

 
205




 
 
At December 31, 2015
(dollars in thousands)
 
Less than 12 months
 
12 months or longer
 
Total
 
 
Fair
value
 
Unrealized
losses
 
Fair
value
 
Unrealized
losses
 
Fair
value
 
Unrealized
losses
 
No. of
holdings
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
States & political subdivisions
 
$
5,867

 
$
7

 
$
0

 
$
0

 
$
5,867

 
$
7

 
3

Corporate debt securities
 
172,831

 
2,447

 
19,086

 
1,965

 
191,917

 
4,412

 
349

Residential mortgage-backed securities
 
9,827

 
84

 
936

 
46

 
10,763

 
130

 
9

Commercial mortgage-backed securities
 
13,081

 
68

 
19,081

 
1,021

 
32,162

 
1,089

 
24

Collateralized debt obligations
 
27,981

 
103

 
9,174

 
118

 
37,155

 
221

 
19

Other debt securities
 
1,960

 
40

 
241

 
1

 
2,201

 
41

 
2

Total fixed maturities
 
231,547

 
2,749

 
48,518

 
3,151

 
280,065

 
5,900

 
406

Common stock
 
12,732

 
133

 
0

 
0

 
12,732

 
133

 
1

Total available-for-sale securities
 
$
244,279

 
$
2,882

 
$
48,518

 
$
3,151

 
$
292,797

 
$
6,033

 
407

Quality breakdown of fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment grade
 
$
174,723

 
$
1,296

 
$
38,369

 
$
1,256

 
$
213,092

 
$
2,552

 
105

Non-investment grade
 
56,824

 
1,453

 
10,149

 
1,895

 
66,973

 
3,348

 
301

Total fixed maturities
 
$
231,547

 
$
2,749

 
$
48,518

 
$
3,151

 
$
280,065

 
$
5,900

 
406


 
Schedule of investment income, net of expenses, from portfolios
Interest and dividend income are recognized as earned and recorded to net investment income.  Investment income, net of expenses, was generated from the following portfolios:

(in thousands)
 
Three months ended September 30,
 
Nine months ended September 30,
 
 
2016
 
2015
 
2016
 
2015
Fixed maturities
 
$
5,245

 
$
4,010

 
$
14,629

 
$
12,239

Equity securities
 
50

 
218

 
132

 
718

Cash equivalents and other
 
366

 
287

 
1,011

 
862

Total investment income
 
5,661

 
4,515

 
15,772

 
13,819

Less: investment expenses
 
330

 
169

 
888

 
497

Net investment income
 
$
5,331

 
$
4,346

 
$
14,884

 
$
13,322
Schedule of realized gains (losses) and other-than-temporary impairments on investments recognized in income
Realized gains and losses on sales of securities are recognized in income based upon the specific identification method. Realized gains (losses) on investments were as follows:

(in thousands)
 
Three months ended September 30,
 
Nine months ended September 30,
 
 
2016
 
2015
 
2016
 
2015
Available-for-sale securities:
 
 

 
 

 
 

 
 

Fixed maturities:
 
 

 
 

 
 

 
 

Gross realized gains
 
$
603


$
120


$
1,175


$
491

Gross realized losses
 
(27
)

(661
)

(1,819
)

(1,036
)
Net realized gains (losses)
 
576


(541
)

(644
)

(545
)
Equity securities:
 


 
 

 
 

 
 

Gross realized gains
 
0


57


0


419

Gross realized losses
 
0


0


(34
)

0

Net realized gains (losses)
 
0


57


(34
)

419

Trading securities:
 


 
 

 
 

 
 

Common stock:
 


 
 

 
 

 
 

Gross realized gains
 
121


0


707


0

Gross realized losses
 
0


0


0


0

Increases in fair value(1)
 
21


0


0


0

Net realized gains
 
142


0


707


0

Miscellaneous:
 


 


 


 


Gross realized gains
 
0


1


0


1

Gross realized losses
 
0


0


0


0

Net realized gains
 
0


1


0


1

Net realized investment gains (losses)
 
$
718


$
(483
)

$
29


$
(125
)
 
(1)
The fair value of our common stocks is determined based upon exchange traded prices provided by a nationally recognized pricing service.
 
 
Net impairment losses
The components of other-than-temporary impairments on investments were as follows:

(in thousands)
 
Three months ended September 30,
 
Nine months ended September 30,
 
 
2016
 
2015
 
2016
 
2015
Fixed maturities
 
$
0


$
(480
)

$
(345
)

$
(635
)
Total other-than-temporary impairments
 
0


(480
)

(345
)

(635
)
Portion recognized in other comprehensive income
 
0


0


0


0

Net impairment losses recognized in earnings
 
$
0


$
(480
)

$
(345
)

$
(635
)
Schedule of limited partnership results, generally reported on a one-quarter lag
Amounts included in equity in earnings of limited partnerships by method of accounting are included below:
 
(in thousands)
 
Three months ended September 30,
 
Nine months ended September 30,
 
 
2016
 
2015
 
2016
 
2015
 
 
 
 
 
 
 
 
 
Equity in (losses) earnings of limited partnerships accounted for under the equity method
 
$
(1,778
)
 
$
3,235

 
$
(436
)
 
$
16,554

Change in fair value of limited partnerships accounted for under the fair value option
 
55

 
602

 
157

 
348

Equity in (losses) earnings of limited partnerships
 
$
(1,723
)
 
$
3,837

 
$
(279
)
 
$
16,902



The following table summarizes limited partnership investments by sector:

(in thousands)
 
At September 30, 2016
 
At December 31, 2015
Private equity
 
$
37,248

 
$
48,397

Mezzanine debt
 
8,404

 
12,701

Real estate
 
16,333

 
22,911

Real estate - fair value option
 
3,964

 
4,526

Total limited partnership investments
 
$
65,949

 
$
88,535