Investment Securities

6 Months Ended

Jun. 30, 2016

Investments Debt And Equity Securities [Abstract]

Investment Securities

Note 4: Investment Securities

The amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of total fixed-maturity securities and total fixed-maturity securities held in trust at June 30, 2016, are as follows:

	June 30, 2016
Class of securities:	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
U.S. government treasury securities	$	249	$	1	$	—		$	250
Obligations of U.S. government sponsored enterprises		60,463		18		—			60,481
Corporate debt securities		18,833		100		(3	)		18,930
Foreign corporate debt securities		8,359		21		(2	)		8,378
Total fixed-maturity securities		87,904		140		(5	)		88,039
Less total unrestricted fixed-maturity securities		58,260		16		(1	)		58,275
Total fixed-maturity securities held in trust	$	29,644	$	124	$	(4	)	$	29,764

The amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of total fixed-maturity securities and total fixed-maturity securities held in trust at December 31, 2015, are as follows:

	December 31, 2015
Class of securities:	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
U.S. government treasury securities	$	249	$	—	$	(1	)	$	248
Obligations of U.S. government sponsored enterprises		69,392		13		(23	)		69,382
Corporate debt securities		21,048		62		(49	)		21,061
Foreign corporate debt securities		8,399		3		(38	)		8,364
Total fixed-maturity securities		99,088		78		(111	)		99,055
Less total unrestricted fixed-maturity securities		66,481		14		(11	)		66,484
Total fixed-maturity securities held in trust	$	32,607	$	64	$	(100	)	$	32,571

Amortized cost and estimated fair value of fixed-maturity securities at June 30, 2016 by contractual maturity are as follows:

	Amortized Cost		Estimated Fair Value
Maturity in:
2016	$	63,020	$	63,034
2017-2019		24,884		25,005
Total fixed-maturity securities	$	87,904	$	88,039

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 ended June 30, 2016 and 2015, respectively, is summarized as follows:

	Three months ended June 30, 2016			Three months ended June 30, 2015			Six months ended June 30, 2016			Six months ended June 30, 2015
Investment income:
Amortization of premium or discount on fixed-maturity securities	$	(51	)	$	(144	)	$	(173	)	$	(323	)
Investment income on fixed-maturity securities		241			326			559			739
Interest income on cash and cash equivalents		367			62			695			119
Realized net gain from sale of investments		5			81			1			267
Unrealized gain (loss) on trading securities held at period end		36			(197	)		167			(273	)
Net investment income	$	598		$	128		$	1,249		$	529

The following table shows how the Company’s investments are categorized in accordance with fair value measurement, as of

June 30, 2016:

	June 30, 2016
	Level 1		Level 2		Level 3		Total
Class of securities:
U.S. government treasury securities	$	250	$	—	$	—	$	250
Obligations of U.S. government sponsored enterprises		55,979		4,502		—		60,481
Corporate debt securities		7,608		11,322		—		18,930
Foreign corporate debt securities		2,507		5,871		—		8,378
Total fixed-maturity securities		66,344		21,695		—		88,039
Money market funds		6,134		—		—		6,134
Total	$	72,478	$	21,695	$	—	$	94,173

The following table shows how the Company’s investments are categorized in accordance with fair value measurement, as of December 31, 2015:

	December 31, 2015
	Level 1		Level 2		Level 3		Total
Class of securities:
U.S. government treasury securities	$	248	$	—	$	—	$	248
Obligations of U.S. government sponsored enterprises		63,909		5,473		—		69,382
Corporate debt securities		8,873		12,188		—		21,061
Foreign corporate debt securities		2,007		6,357		—		8,364
Total fixed-maturity securities		75,037		24,018		—		99,055
Money market funds		7,301		—		—		7,301
Total	$	82,338	$	24,018	$	—	$	106,356

A review of the fair value hierarchy classifications of the Company’s investments is conducted quarterly. Changes in the observability of valuation inputs may result in a reclassification for certain financial assets or liabilities. Reclassifications are reported as transfers in or transfers out of the applicable Level at the end of the calendar quarter in which the reclassifications occur. During the six months ended June 30, 2016 and the year ended December 31, 2015, $3.1 million and $9.9 million, respectively, of investments were transferred from Level 2 to Level 1 as a result of improving market conditions for short-term and investment grade corporate securities.

	January 1, 2016 to June 30, 2016				January 1, 2015 to  December 31, 2015
	Transfers from Level 1 to Level 2		Transfers from Level 2 to Level 1			Transfers from Level 1 to Level 2		Transfers from Level 2 to Level 1
Class of securities:
Corporate debt securities	$	—	$	2,558		$	—	$	7,860
Foreign corporate debt securities		—		501			—		2,007
Total transfers	$	—	$	3,059		$	—	$	9,867