Investment Securities

9 Months Ended

Sep. 30, 2012

Investment Securities

Note 6: Investment Securities

The amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of fixed-maturity securities held in trust at September 30, 2012, are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Trading Securities:
U.S. Treasury securities	$	250	$	—	$	—		$	250
Obligations of U.S. government sponsored enterprises		101,400		1,608		(100	)		102,908
Corporate debt securities		99,416		3,611		(151	)		102,876
Commercial paper		44,866		56		(7	)		44,915
Foreign corporate debt securities		18,342		447		(5	)		18,784
Commercial mortgage-backed securities		11,571		55		(65	)		11,561
Total fixed-maturity securities		275,845		5,777		(328	)		281,294
Less total unrestricted fixed-maturity securities		72,690		232		(140	)		72,782
Total fixed-maturity securities held in trust	$	203,155	$	5,545	$	(188	)	$	208,512

The amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of fixed-maturity securities held in trust at December 31, 2011, are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Trading Securities:
U.S. Treasury securities	$	250	$	—	$	—		$	250
Obligations of U.S. government sponsored enterprises		122,874		2,029		(267	)		124,636
Corporate debt securities		129,916		3,791		(845	)		132,862
Foreign corporate debt securities		26,800		546		(117	)		27,229
Commercial mortgage-backed securities		19,138		76		(146	)		19,068
Total fixed-maturity securities		298,978		6,442		(1,375	)		304,045
Less total unrestricted fixed-maturity securities		5,348		151		(9	)		5,490
Total fixed-maturity securities held in trust	$	293,630	$	6,291	$	(1,366	)	$	298,555

Amortized cost and estimated fair value of fixed-maturity securities at September 30, 2012 by contractual maturity are as follows:

	Amortized Cost		Estimated Fair Value
Maturity in:
2012	$	35,037	$	34,958
2013-2016		140,503		144,336
2017-2021		37,998		38,970
Thereafter		50,736		51,469
Mortgage-backed securities		11,571		11,561
Total fixed-maturity securities	$	275,845	$	281,294

Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

Net investment income for the periods ending September 30, 2012 and 2011, is summarized as follows:

	Successor			Predecessor			Successor			Predecessor			Predecessor
	Three Months Ended  September 30, 2012			Three Months Ended September  30, 2011			Period from March 20, 2012 through September 30, 2012			Period from January 1, 2012 through March 19, 2012			Nine Months ended September 30, 2011
Investment income:
Amortization of premium or discount on fixed-maturity	$	(507	)	$	(613	)	$	(1,263	)	$	(523	)	$	(1,912	)
Investment income on fixed-maturity securities		2,113			3,150			5,377			2,467			9,953
Interest income on cash and equivalents		58			6			87			3			45
Realized net gain (loss) from sale of investment		2,345			357			2,617			176			1,543
Unrealized (losses) gains on trading securities held at period end		(867	)		(2,498	)		(594	)		1,049			(3,251	)
Net investment income	$	3,142		$	402		$	6,224		$	3,172		$	6,378

The following tables show how the Company’s investments are categorized in accordance with fair value measurement, as of September 30, 2012 and December 31, 2011:

	September 30, 2012
	Level 1		Level 2		Level 3		Total
Class of Security:
U.S. Treasury securities	$	250	$	—	$	—	$	250
Obligations of U.S. government sponsored securities		16,415		86,493		—		102,908
Corporate debt securities		—		102,876		—		102,876
Commercial paper		44,915		—				44,915
Foreign corporate debt securities		—		18,784		—		18,784
Commercial mortgage-backed securities		—		11,561		—		11,561
Total	$	61,580	$	219,714	$	—	$	281,294
	December 31, 2011
	Level 1		Level 2		Level 3		Total
Class of Security:
U.S. Treasury securities	$	250	$	—	$	—	$	250
Obligations of U.S. government sponsored securities		42,927		81,709		—		124,636
Corporate debt securities		—		132,862		—		132,862
Foreign corporate debt securities		—		27,229		—		27,229
Commercial mortgage-backed securities		—		19,068		—		19,068
Total	$	43,177	$	260,868	$	—	$	304,045