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Investments
 12 Months Ended
Dec. 31, 2016
Investments [Abstract]  
Investments
Note B - Investments
               
 
The following is a summary of available for sale securities at December 31:
          
                
              
Net
 
     
Cost or
  
Gross
  
Gross
  
Unrealized
 
  
Fair
  
Amortized
  
Unrealized
  
Unrealized
  
Gains
 
  
Value
  
Cost
  
Gains
  
Losses
  
(Losses)
 
December 31, 2016
               
Fixed maturities
               
   Agency collateralized mortgage obligations
 
$
6,171
  
$
6,000
  
$
171
  
$
-
  
$
171
 
   Agency mortgage-backed securities
  
4,770
   
4,751
   
57
   
(38
)
  
19
 
   Asset-backed securities
  
45,183
   
45,207
   
458
   
(482
)
  
(24
)
   Bank loans
  
10,349
   
10,222
   
149
   
(22
)
  
127
 
   Certificates of deposit
  
3,117
   
3,126
   
-
   
(9
)
  
(9
)
   Collateralized mortgage obligations
  
9,104
   
9,096
   
290
   
(282
)
  
8
 
   Corporate securities
  
142,683
   
143,356
   
1,643
   
(2,316
)
  
(673
)
   Mortgage-backed securities
  
24,571
   
23,904
   
1,132
   
(465
)
  
667
 
   Municipal obligations
  
129,335
   
130,204
   
391
   
(1,260
)
  
(869
)
   Non-U.S. government obligations
  
24,681
   
26,461
   
230
   
(2,010
)
  
(1,780
)
   U.S. government obligations
  
91,940
   
92,234
   
74
   
(368
)
  
(294
)
      Total fixed maturities
  
491,904
   
494,561
   
4,595
   
(7,252
)
  
(2,657
)
Equity securities:
                    
   Consumer
  
32,576
   
15,231
   
17,656
   
(311
)
  
17,345
 
   Energy
  
12,842
   
5,641
   
7,203
   
(2
)
  
7,201
 
   Financial
  
31,186
   
22,417
   
8,998
   
(229
)
  
8,769
 
   Industrial
  
21,145
   
6,239
   
15,098
   
(192
)
  
14,906
 
   Technology
  
8,858
   
4,117
   
4,769
   
(28
)
  
4,741
 
   Mutual fund
  
6,995
   
6,930
   
121
   
(56
)
  
65
 
   Other
  
6,343
   
4,327
   
2,181
   
(165
)
  
2,016
 
      Total equity securities
  
119,945
   
64,902
   
56,026
   
(983
)
  
55,043
 
                     
      Total
 
$
611,849
  
$
559,463
  
$
60,621
  
$
(8,235
)
  
52,386
 
                     
              
Applicable federal income taxes
   
(18,335
)
                     
              
Net unrealized gains - net of tax
  
$
34,051
 
 
              
Net
 
     
Cost or
  
Gross
  
Gross
  
Unrealized
 
  
Fair
  
Amortized
  
Unrealized
  
Unrealized
  
Gains
 
  
Value
  
Cost
  
Gains
  
Losses
  
(Losses)
 
December 31, 2015
               
Fixed maturities
               
   Agency collateralized mortgage obligations
 
$
-
  
$
-
  
$
-
  
$
-
  
$
-
 
   Agency mortgage-backed securities
  
3,157
   
3,159
   
38
   
(40
)
  
(2
)
   Asset-backed securities
  
44,309
   
45,941
   
393
   
(2,025
)
  
(1,632
)
   Bank loans
  
5,060
   
5,333
   
4
   
(277
)
  
(273
)
   Certificates of deposit
  
3,230
   
3,247
   
-
   
(17
)
  
(17
)
   Collateralized mortgage obligations
  
9,257
   
9,282
   
116
   
(141
)
  
(25
)
   Corporate securities
  
110,511
   
112,615
   
2,123
   
(4,227
)
  
(2,104
)
   Mortgage-backed securities
  
23,892
   
24,138
   
243
   
(489
)
  
(246
)
   Municipal obligations
  
110,578
   
109,932
   
805
   
(159
)
  
646
 
   Non-U.S. government obligations
  
23,945
   
25,483
   
342
   
(1,880
)
  
(1,538
)
   U.S. government obligations
  
103,245
   
103,448
   
56
   
(259
)
  
(203
)
      Total fixed maturities
  
437,184
   
442,578
   
4,120
   
(9,514
)
  
(5,394
)
Equity securities:
                    
   Consumer
  
46,541
   
16,849
   
30,535
   
(843
)
  
29,692
 
   Energy
  
8,635
   
6,152
   
3,323
   
(840
)
  
2,483
 
   Financial
  
35,686
   
24,173
   
12,265
   
(752
)
  
11,513
 
   Industrial
  
24,841
   
9,325
   
15,840
   
(324
)
  
15,516
 
   Technology
  
11,596
   
6,153
   
5,546
   
(103
)
  
5,443
 
   Mutual fund
  
9,983
   
11,022
   
69
   
(1,108
)
  
(1,039
)
   Other
  
8,216
   
6,547
   
2,829
   
(1,160
)
  
1,669
 
      Total equity securities
  
145,498
   
80,221
   
70,407
   
(5,130
)
  
65,277
 
                     
      Total
 
$
582,682
  
$
522,799
  
$
74,527
  
$
(14,644
)
  
59,883
 
                     
              
Applicable federal income taxes
   
(20,959
)
                     
              
Net unrealized gains - net of tax
  
$
38,924
 
 
The following table summarizes, for fixed maturity and equity security investments in an unrealized loss position at December 31, the aggregate fair value and gross unrealized loss categorized by the duration those securities have been continuously in an unrealized loss position:
  
2016
  
2015
 
  
Number of Securities
  
Fair Value
  
Gross Unrealized Loss
  
Number of Securities
  
Fair Value
  
Gross Unrealized Loss
 
Fixed maturity securities:
                  
12 months or less
  
397
  
$
291,048
  
$
(4,380
)
  
328
  
$
205,475
  
$
(5,070
)
Greater than 12 months
  
54
   
32,054
   
(2,872
)
  
168
   
108,043
   
(4,444
)
Total fixed maturities
  
451
   
323,102
   
(7,252
)
  
496
   
313,518
   
(9,514
)
Equity securities:
                        
12 months or less
  
35
   
20,698
   
(983
)
  
73
   
26,517
   
(5,130
)
Greater than 12 months
  
-
   
-
   
-
   
-
   
-
   
-
 
Total equity securities
  
35
   
20,698
   
(983
)
  
73
   
26,517
   
(5,130
)
Total
  
486
  
$
343,800
  
$
(8,235
)
  
569
  
$
340,035
  
$
(14,644
)
 
Unrealized losses in the Company's fixed maturity portfolio are generally the result of interest rate or foreign currency fluctuations.  The Company does not intend to sell any fixed maturity securities which are in an unrealized loss position at December 31, 2016 and it is not more likely than not that the Company will have to sell any fixed maturity security before recovery of its amortized cost basis.  For equity securities, the Company has evaluated the near-term prospects of the investments in relation to the severity and duration of the impairment and, based on that evaluation, the Company has the ability and intent to hold these investments for a period sufficient to allow for recovery of fair value.  Accordingly, the Company does not believe the unrealized losses represent an other-than-temporary impairment as of December 31, 2016.

The fair value and the cost or amortized cost of fixed maturity investments at December 31, 2016, organized by contractual maturity, is shown below.  Actual maturities may differ from contractual maturities because borrowers have, in some cases, the right to call or prepay obligations with or without call or prepayment penalties.  Pre-refunded municipal bonds are classified based on their pre-refunded call dates.
  
Fair Value
  
Cost or Amortized Cost
 
             
One year or less
 
$
87,661
   
17.8
%
 
$
88,139
   
17.8
%
Excess of one year to five years
  
273,874
   
55.7
   
276,995
   
56.0
 
Excess of five years to ten years
  
35,553
   
7.2
   
35,409
   
7.2
 
Excess of ten years
  
5,017
   
1.0
   
5,060
   
1.0
 
   Total maturities
  
402,105
   
81.7
   
405,603
   
82.0
 
Asset-backed securities
  
89,799
   
18.3
   
88,958
   
18.0
 
  
$
491,904
   
100.0
%
 
$
494,561
   
100.0
%
 
Major categories of investment income for the years ended December 31 are summarized as follows:
 
  
2016
  
2015
  
2014
 
Interest on fixed maturities
 
$
13,254
  
$
11,663
  
$
8,806
 
Dividends on equity securities
  
3,598
   
3,445
   
2,693
 
Money market funds, Short-term and other
  
128
   
32
   
37
 
   
16,980
   
15,140
   
11,536
 
Investment expenses
  
(2,497
)
  
(2,642
)
  
(2,481
)
Net investment income
 
$
14,483
  
$
12,498
  
$
9,055
 
 
Gains and losses on investments, including equity method earnings from limited partnerships, for the years ended December 31 are summarized below:
 
  
2016
  
2015
  
2014
 
Fixed maturities:
         
   Gross gains
 
$
11,628
  
$
6,633
  
$
6,480
 
   Gross losses
  
(14,020
)
  
(13,634
)
  
(4,596
)
      Net gains (losses)
  
(2,392
)
  
(7,001
)
  
1,884
 
             
Equity securities:
            
   Gross gains
  
28,742
   
21,070
   
7,467
 
   Gross losses
  
(5,595
)
  
(13,643
)
  
(1,529
)
      Net gains
  
23,147
   
7,427
   
5,938
 
             
Limited partnerships - net gain (loss)
  
2,473
   
(1,687
)
  
7,108
 
             
             
      Total net gains (losses)
 
$
23,228
  
$
(1,261
)
 
$
14,930
 

Shareholders' equity includes approximately $28,110, net of deferred federal income taxes, of undistributed earnings from limited partnerships as of December 31, 2016.
 
Gain and loss activity for fixed maturity and equity security investments, as shown in the previous table, include adjustments for other-than-temporary impairment for the years ended December 31 summarized as follows:
 
  
2016
  
2015
  
2014
 
          
Cumulative charges to income at beginning of year
 
$
10,513
  
$
7,168
  
$
6,770
 
             
Writedowns based on objective and subjective criteria
  
5,743
   
7,700
   
689
 
Recovery of prior writedowns upon sale or disposal
  
(12,260
)
  
(4,355
)
  
(291
)
Net pre-tax realized gain (loss)
  
6,517
   
(3,345
)
  
(398
)
             
Cumulative charges to income at end of year
 
$
3,996
  
$
10,513
  
$
7,168
 
             
Unrealized gain on investments previously
            
written down at end of the year 1
 
$
2,108
  
$
14,710
  
$
17,127
 
 
1 Recovery in market value of an investment which has previously been adjusted for other-than-temporary impairment is treated as an unrealized gain until the investment matures or is sold.
 
There is no primary market and only a limited secondary market for the Company's investments in limited partnerships and, in most cases, the Company is prohibited from disposing of its limited partnership interests for some period of time and generally must seek approval from the applicable general partner for any such disposal.  Distributions of earnings from these partnerships are largely at the sole discretion of the general partners and distributions are generally not received by the Company for many years after the earnings have been reported.  The Company has commitments to contribute an additional $1,627 to various limited partnerships as of December 31, 2016.
 
The Company has invested a total of $23,000 in three limited partnerships, with an aggregate estimated value of $44,038 at December 31, 2016, that are managed by organizations in which four directors of the Company are executive officers, directors or owners.  The Company's ownership interest in these limited partnerships was 6% for New Vernon India Fund, 37% for New Vernon Global Opportunity Fund and 23% for New Vernon Global Opportunity Fund II.  These limited partnerships contributed ($971), ($1,978) and $7,088, net of fees, to investment gains (losses) in 2016, 2015 and 2014, respectively.  During 2016, 2015 and 2014, the Company has recorded management fees of $777, $749 and $697, respectively, for management of these limited partnerships.
 
The Company utilizes the services of investment firms of which four directors of the Company are employees or partial owners.  These investment firms manage equity securities and fixed maturity portfolios with an aggregate market value of approximately $41,706 at December 31, 2016.  Total commissions and net fees earned by the investment firm and affiliates on these transactions and for advice and consulting were approximately $207, $235 and $212 during 2016, 2015 and 2014, respectively.
 
The Company's limited partnerships include one investment which primarily invests in public and private equity markets in India.  This limited partnership investment's value as of December 31, 2016 and 2015 was $27,153 and $28,270, respectively.  At December 31, 2016, the Company's estimated ownership interest in this limited partnership investment was approximately 6%.  The Company's share of earnings (losses) from this limited partnership investment was ($1,117), ($1,599) and $7,176 in 2016, 2015 and 2014, respectively.  The summarized financial information of this limited partnership investment as of and for the years ended December 31 is as follows:
 
  
2016
  
2015
  
2014
 
Total assets
 
$
448,263
  
$
511,118
  
$
565,500
 
Total partners' capital
  
408,275
   
470,783
   
542,700
 
Net increase (decrease) in partners' capital resulting from operations
  
(15,679
)
  
(19,603
)
  
125,700
 

 
The fair value of regulatory deposits with various insurance departments in the United States and Canada totaled $86,169 and $84,198 at December 31, 2016 and 2015, respectively.
 
Short-term investments at December 31, 2016 included $1,500 in time certificates of deposit issued by a Bermuda bank.
 
The Company's fixed maturities are over 85% invested in investment grade fixed maturity investments.  The Company has a total of $719, representing one investment, of fixed maturity investments which were originally issued with guarantees by a third party insurance company.  The S&P credit rating of such investment, with consideration of the guarantee, is AA.  The S&P underlying credit rating of such investment, without consideration of the guarantee, would remain AA.  The Company does not have any direct exposure to any guarantor.

Approximately $69,112 of fixed maturity investments (9.2% of total invested assets) consists of non-rated bonds and bonds rated as less than investment grade at year end.  These investments include a diversified portfolio of over 40 investments and have a $951 aggregate net unrealized gain position at December 31, 2016.

During 2016 the Company's bridge loan investment program was terminated and the Company had no remaining committed funds related to bridge loan agreements as of December 31, 2016.  The Company historically retained possession of these funds which were only loaned in the unlikely event that long-term financing was unavailable to the counter party in the market.