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Investments
 12 Months Ended
Dec. 31, 2019
Investments [Abstract]  
Investments
Note B - Investments

The following is a summary of available-for-sale securities at December 31:

  
Fair
Value
  
Cost or
Amortized
Cost
  
Gross
Unrealized
Gains
  
Gross
Unrealized
Losses
  
Net Unrealized
Gains (Losses)
 
December 31, 2019
               
Fixed income securities
               
Agency collateralized mortgage obligations
 
$
12,093
  
$
11,557
  
$
536
  
$
–
  
$
536
 
Agency mortgage-backed securities
  
56,280
   
54,286
   
2,005
   
(11
)
  
1,994
 
Asset-backed securities
  
106,397
   
107,028
   
499
   
(1,130
)
  
(631
)
Bank loans
  
14,568
   
14,932
   
106
   
(470
)
  
(364
)
Certificates of deposit
  
2,835
   
2,835
   
–
   
–
   
–
 
Collateralized mortgage obligations
  
5,616
   
5,123
   
493
   
–
   
493
 
Corporate securities
  
281,381
   
274,340
   
7,492
   
(451
)
  
7,041
 
Mortgage-backed securities
  
47,463
   
46,685
   
1,047
   
(269
)
  
778
 
Municipal obligations
  
36,286
   
35,749
   
684
   
(147
)
  
537
 
Non-U.S. government obligations
  
24,179
   
23,889
   
290
   
–
   
290
 
U.S. government obligations
  
208,440
   
206,623
   
2,891
   
(1,074
)
  
1,817
 
Total fixed income securities
 
$
795,538
  
$
783,047
  
$
16,043
  
$
(3,552
)
 
$
12,491
 

  
Fair
Value
  
Cost or
Amortized
Cost
  
Gross
Unrealized
Gains
  
Gross
Unrealized
Losses
  
Net Unrealized
Gains (Losses)
 
December 31, 2018
               
Fixed income securities
               
Agency collateralized mortgage obligations
 
$
10,687
  
$
10,636
  
$
145
  
$
(94
)
 
$
51
 
Agency mortgage-backed securities
  
37,385
   
37,168
   
371
   
(154
)
  
217
 
Asset-backed securities
  
64,422
   
66,241
   
14
   
(1,833
)
  
(1,819
)
Bank loans
  
9,750
   
10,208
   
27
   
(485
)
  
(458
)
Certificates of deposit
  
2,835
   
2,835
   
—
   
–
   
—
 
Collateralized mortgage obligations
  
5,423
   
5,095
   
376
   
(48
)
  
328
 
Corporate securities
  
190,450
   
196,925
   
127
   
(6,602
)
  
(6,475
)
Mortgage-backed securities
  
38,540
   
38,586
   
377
   
(423
)
  
(46
)
Municipal obligations
  
29,155
   
29,102
   
239
   
(186
)
  
53
 
Non-U.S. government obligations
  
25,180
   
25,339
   
6
   
(165
)
  
(159
)
U.S. government obligations
  
178,818
   
178,369
   
1,252
   
(803
)
  
449
 
Total fixed income securities
 
$
592,645
  
$
600,504
  
$
2,934
  
$
(10,793
)
 
$
(7,859
)

The following table summarizes, for available-for-sale fixed income securities in an unrealized loss position at December 31, 2019 and December 31, 2018, the aggregate fair value and gross unrealized loss categorized by the duration individual securities have been continuously in an unrealized loss position.

  
2019
  
2018
 
  
Number of
Securities
  
Fair
Value
  
Gross
Unrealized
Loss
  
Number of
Securities
  
Fair
Value
  
Gross
Unrealized
Loss
 
Fixed income securities:
                  
12 months or less
  
88
  
$
108,387
  
$
(2,452
)
  
275
  
$
282,646
  
$
(7,296
)
Greater than 12 months
  
69
   
66,860
   
(1,100
)
  
217
   
131,001
   
(3,497
)
Total fixed income securities
  
157
   
175,247
   
(3,552
)
  
492
   
413,647
   
(10,793
)

Unrealized losses in the Company's fixed income portfolio are generally the result of interest rate or foreign currency fluctuations.  The Company does not intend to sell any fixed income securities in an unrealized loss position at December 31, 2019, and it is not more likely than not that the Company will have to sell any such fixed income security before recovery of its amortized cost basis.  Accordingly, the Company does not believe any unrealized losses represent OTTIs as of December 31, 2019.

The fair value and the cost or amortized costs of fixed income investments at December 31, 2019, organized by contractual maturity, are shown below.  Actual maturities may ultimately 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
 
$
86,368
   
10.9
%
 
$
86,144
   
11.0
%
Excess of one year to five years
  
336,689
   
42.3
   
330,026
   
42.1
 
Excess of five years to ten years
  
135,169
   
17.0
   
132,985
   
17.0
 
Excess of ten years
  
15,079
   
1.9
   
14,337
   
1.9
 
Total contractual maturities
  
573,305
   
72.1
   
563,492
   
72.0
 
Asset-backed securities
  
222,233
   
27.9
   
219,555
   
28.0
 
Total
 
$
795,538
   
100.0
%
 
$
783,047
   
100.0
 

Major categories of investment income for the years ended December 31, 2019, 2018 and 2017 are summarized as follows:

  
2019
  
2018
  
2017
 
Interest on fixed income securities
 
$
24,620
  
$
19,092
  
$
15,340
 
Dividends on equity securities
  
2,320
   
4,380
   
4,611
 
Money market funds, Short-term and other
  
1,976
   
1,529
   
471
 
   
28,916
   
25,001
   
20,422
 
Investment expenses
  
(2,667
)
  
(2,953
)
  
(2,327
)
Net investment income
 
$
26,249
  
$
22,048
  
$
18,095
 

Gains and losses on investments, including equity method earnings from limited partnerships, for the years ended December 31 are summarized below:

  
2019
  
2018
  
2017
 
Gross gains on available-for-sale investments sold during the period:
         
Fixed income securities
 
$
11,009
  
$
10,807
  
$
9,135
 
Equity securities (1)
  
–
   
–
   
10,481
 
Total gains
  
11,009
   
10,807
   
19,616
 
             
Gross losses on available-for-sale investments sold during the period:
            
Fixed income securities
  
(10,492
)
  
(14,367
)
  
(9,882
)
Equity securities (1)
  
–
   
–
   
(2,368
)
Total losses
  
(10,492
)
  
(14,367
)
  
(12,250
)
             
Other-than-temporary impairments
  
(497
)
  
(19
)
  
(149
)
             
Change in value of limited partnership investments
  
1,644
   
(9,343
)
  
12,469
 
             
Gains (losses) on equity securities:
            
Realized gains (losses) on equity securities sold during the period
  
1,938
   
(3,072
)
  
–
 
Unrealized gains (losses) on equity securities held at the end of the period
  
9,287
   
(9,697
)
  
–
 
Total realized and unrealized gains (losses) on equity securities
  
11,225
   
(12,769
)
  
–
 
Net realized and unrealized gains (losses) on investments
 
$
12,889
  
$
(25,691
)
 
$
19,686
 

(1)
Effective January 1, 2018, the Company adopted Accounting Standards Update ("ASU") 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, or ASU 2016-01, and equity securities are no longer classified as available-for-sale.  The amendments in ASU 2016-01 changed the accounting for equity securities by requiring changes in fair value to be recognized in income.  Previously, the Company's equity securities were classified as available-for-sale and changes in fair value were recognized in accumulated other comprehensive income (loss) as a component of shareholders' equity.  Prior periods have not been restated to conform to the current presentation.

(2)
During 2018, the Company sold $149,195 in equity securities, resulting in a gain on sale of $51,900.  The majority of these gains were included in unrealized gains within other comprehensive income (loss) at December 31, 2017 and, as a result of the adoption of ASU 2016-01, were reclassified to retained earnings as of January 1, 2018 and were therefore not recognized in the consolidated statements of operations for the year ended December 31, 2018.

Gain and loss activity for fixed income and equity security investments, as shown in the previous table, includes adjustments for other-than-temporary impairment for the years ended December 31, 2019, 2018 and 2017 summarized as follows:

  
2019
  
2018
  
2017
 
Cumulative charges to income at beginning of year
 
$
930
  
$
4,209
  
$
5,650
 
             
Writedowns based on objective and subjective criteria
  
497
   
19
   
149
 
Recovery of prior writedowns upon sale or disposal
  
(538
)
  
(3,298
)
  
(1,590
)
Net pre-tax realized gain
  
41
   
3,279
   
1,441
 
             
Cumulative charges to income at end of year
 
$
889
  
$
930
  
$
4,209
 

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 a commitment to contribute up to an additional $350 to a limited partnership as of December 31, 2019.

The fair value of regulatory deposits with various insurance departments in the United States and Canada totaled $99,763 and $87,981 at December 31, 2019 and 2018, respectively.

Short-term investments at December 31, 2019 included $1,000 in certificates of deposit issued by a Bermuda bank.

The Company's fixed income securities are over 92% invested in investment grade fixed income investments.  The Company has no fixed income investments that were originally issued with guarantees by a third-party insurance company nor does the Company have any direct exposure to any guarantor at December 31, 2019.

Approximately $61,181 of fixed income investments (6.3% of the Company's consolidated investment portfolio, which includes money market instruments classified as cash equivalents) consists of non-rated bonds and bonds rated as less than investment grade at year-end.  These investments have a $684 aggregate net unrealized gain position at December 31, 2019.