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Investments (Tables)
 6 Months Ended
Jun. 30, 2018
Investments [Abstract]  
Available-for-Sale Securities
The following is a summary of available-for-sale securities at June 30, 2018 and December 31, 2017:

 
             
Net
 
 
    
Cost or
  
Gross
  
Gross
  
Unrealized
 
 
 
Fair
  
Amortized
  
Unrealized
  
Unrealized
  
Gains
 
 
 
Value
  
Cost
  
Gains
  
Losses
  
(Losses)
 
June 30, 2018 1
               
Fixed maturities
               
   Agency collateralized mortgage obligations
 
$
14,961
  
$
14,480
  
$
646
  
$
(165
)
 
$
481
 
   Agency mortgage-backed securities
  
33,708
   
34,459
   
12
   
(763
)
  
(751
)
   Asset-backed securities
  
51,454
   
50,994
   
689
   
(229
)
  
460
 
   Bank loans
  
20,202
   
20,127
   
204
   
(129
)
  
75
 
   Certificates of deposit
  
3,122
   
3,124
   
-
   
(2
)
  
(2
)
   Collateralized mortgage obligations
  
5,135
   
4,789
   
369
   
(23
)
  
346
 
   Corporate securities
  
212,059
   
216,496
   
716
   
(5,153
)
  
(4,437
)
   Mortgage-backed securities
  
30,954
   
30,475
   
940
   
(461
)
  
479
 
   Municipal obligations
  
48,327
   
48,468
   
296
   
(437
)
  
(141
)
   Non-U.S. government obligations
  
38,602
   
39,681
   
191
   
(1,270
)
  
(1,079
)
   U.S. government obligations
  
117,864
   
118,975
   
-
   
(1,111
)
  
(1,111
)
      Total fixed maturities
 
$
576,388
  
$
582,068
  
$
4,063
  
$
(9,743
)
 
$
(5,680
)


 
             
Net
 
 
    
Cost or
  
Gross
  
Gross
  
Unrealized
 
 
 
Fair
  
Amortized
  
Unrealized
  
Unrealized
  
Gains
 
 
 
Value
  
Cost
  
Gains
  
Losses
  
(Losses)
 
December 31, 2017 1
               
Fixed maturities
               
   Agency collateralized mortgage obligations
 
$
16,586
  
$
15,839
  
$
818
  
$
(71
)
 
$
747
 
   Agency mortgage-backed securities
  
27,075
   
27,180
   
47
   
(152
)
  
(105
)
   Asset-backed securities
  
43,469
   
42,861
   
749
   
(141
)
  
608
 
   Bank loans
  
19,488
   
19,271
   
266
   
(49
)
  
217
 
   Certificates of deposit
  
3,135
   
3,124
   
11
   
-
   
11
 
   Collateralized mortgage obligations
  
6,492
   
6,079
   
451
   
(38
)
  
413
 
   Corporate securities
  
198,349
   
198,419
   
1,602
   
(1,672
)
  
(70
)
   Mortgage-backed securities
  
24,204
   
23,656
   
933
   
(385
)
  
548
 
   Municipal obligations
  
96,650
   
97,059
   
322
   
(731
)
  
(409
)
   Non-U.S. government obligations
  
37,394
   
37,971
   
475
   
(1,052
)
  
(577
)
   U.S. government obligations
  
49,011
   
49,558
   
-
   
(547
)
  
(547
)
      Total fixed maturities
  
521,853
   
521,017
   
5,674
   
(4,838
)
  
836
 
Equity securities:
                    
   Consumer
  
46,578
   
23,565
   
24,031
   
(1,018
)
  
23,013
 
   Energy
  
10,278
   
6,763
   
3,602
   
(87
)
  
3,515
 
   Financial
  
45,470
   
31,859
   
13,937
   
(326
)
  
13,611
 
   Industrial
  
25,402
   
8,949
   
16,793
   
(340
)
  
16,453
 
   Technology
  
13,061
   
5,768
   
7,401
   
(108
)
  
7,293
 
   Funds (e.g. mutual funds, closed end funds, ETFs)
  
50,291
   
46,177
   
4,153
   
(39
)
  
4,114
 
   Other
  
10,683
   
7,670
   
3,313
   
(300
)
  
3,013
 
      Total equity securities
  
201,763
   
130,751
   
73,230
   
(2,218
)
  
71,012
 
 
                    
      Total
 
$
723,616
  
$
651,768
  
$
78,904
  
$
(7,056
)
 
$
71,848
 

1 Effective January 1, 2018, the Company adopted ASU 2016-01 and equity securities are no longer classified as available-for-sale.  Prior periods have not been restated to conform to the current presentation.  See Note 1 – Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements for further discussion.
Fixed Maturity and Equity Security Investments in Unrealized Loss Position
The following table summarizes, for available-for-sale fixed maturities in an unrealized loss position at June 30, 2018 and available-for-sale fixed maturities and equity securities in an unrealized loss position at December 31, 2017, respectively, the aggregate fair value and gross unrealized loss categorized by the duration individual securities have been continuously in an unrealized loss position.


 
 
June 30, 2018
  
December 31, 2017
 
 
 
Number of Securities
  
Fair Value
  
Gross Unrealized Loss
  
Number of Securities
  
Fair Value
  
Gross Unrealized Loss
 
Fixed maturity securities:
                  
12 months or less
  
542
  
$
419,376
  
$
(7,862
)
  
459
  
$
313,421
  
$
(2,683
)
Greater than 12 months
  
101
   
58,200
   
(1,881
)
  
112
   
75,638
   
(2,155
)
Total fixed maturities
  
643
   
477,576
   
(9,743
)
  
571
   
389,059
   
(4,838
)
 
                        
Equity securities 1:
                        
12 months or less
  
-
   
-
   
-
   
65
   
46,654
   
(2,218
)
Greater than 12 months
  
-
   
-
   
-
   
-
   
-
   
-
 
Total equity securities
  
-
   
-
   
-
   
65
   
46,654
   
(2,218
)
Total fixed maturity and equity securities
  
643
  
$
477,576
  
$
(9,743
)
  
636
  
$
435,713
  
$
(7,056
)


1 Effective January 1, 2018, the Company adopted ASU 2016-01 and equity securities are no longer classified as available-for-sale. Prior periods have not been restated to conform to the current presentation.  See Note 1 – Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements  for further discussion.
Fair Value and Cost or Amortized Cost of Fixed Maturity Investments by Contractual Maturity
Pre-refunded municipal bonds are classified based on their pre-refunded call dates.

 
  
Fair Value
  
Cost or Amortized Cost
 
       
One year or less
 
$
48,916
  
$
49,514
 
Excess of one year to five years
  
303,116
   
307,337
 
Excess of five years to ten years
  
87,208
   
89,044
 
Excess of ten years
  
2,531
   
2,590
 
   Contractual maturities
  
441,771
   
448,485
 
Asset-backed securities
  
134,617
   
133,583
 
Total
 
$
576,388
  
$
582,068
 
Net Realized and Unrealized Gains (Losses) on Investments
Following is a summary of the components of net realized and unrealized gains (losses) on investments for the periods presented in the accompanying condensed consolidated statements of operations.
 
 
 
 
Three Months Ended
  
Six Months Ended
 
 
 
June 30
  
June 30
 
 
 
2018
  
2017
  
2018
  
2017
 
Gross gains on available-for-sale investments sold during the period:
            
Fixed maturities
 
$
3,691
  
$
4,804
  
$
6,134
  
$
5,692
 
Equity securities1
  
-
   
2,892
   
-
   
4,498
 
Total gains
  
3,691
   
7,696
   
6,134
   
10,190
 
 
                
Gross losses on available-for-sale investments sold during the period:
                
Fixed maturities
 
$
(3,088
)
  
(4,776
)
 
$
(5,796
)
  
(6,149
)
Equity securities1
  
-
   
(355
)
  
-
   
(468
)
Total losses
  
(3,088
)
  
(5,131
)
  
(5,796
)
  
(6,617
)
 
                
Other-than-temporary impairments
  
-
   
-
   
-
   
-
 
 
                
Change in value of limited partnership investments
  
(2,842
)
  
731
   
(5,445
)
  
6,017
 
 
                
Gains (losses) on equity securities:
                
Realized gains on equity securities sold during the period 2
  
312
   
-
   
953
   
-
 
Unrealized losses on equity securities held at the end of the period
  
(1,508
)
  
-
   
(3,814
)
  
-
 
Realized and unrealized losses on equity securities held at the end of the period
  
(1,196
)
  
-
   
(2,861
)
  
-
 
 
                
Net realized and unrealized gains (losses) on investments
 
$
(3,435
)
 
$
3,296
  
$
(7,968
)
 
$
9,590
 

1 Effective January 1, 2018, the Company adopted ASU 2016-01 and equity securities are no longer classified as available-for-sale.  Prior periods have not been restated to conform to the current presentation.  See Note 1 – Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements for further discussion.

2 During the three and six months ended June 30, 2018, the Company sold $27,800 and $87,557 in equity securities, resulting in a realized gain of $9,990 and $45,128, respectively.  The majority of this gain was included in unrealized gains within other comprehensive income at December 31, 2017 and, as a result of the adoption of ASU 2016-01, was reclassified to retained earnings as of January 1, 2018 and was therefore not recognized in the condensed consolidated statements of operations for the three and six months ended June 30, 2018.