Shareholders' Equity (Tables)

12 Months Ended

Dec. 31, 2020

A reconciliation of the components of accumulated other comprehensive income (loss) at December 31, 2020 and 2019 is as follows:

	2020			2019
Investments:
Total unrealized gain before federal income tax expense (benefit)	$	26,259		$	12,491
Deferred tax benefit (liability) ⁽¹⁾		(4,255	)		(2,628	)
Net unrealized gains on investments		22,004			9,863

Foreign exchange adjustment:
Total unrealized losses		(310	)		(625	)
Deferred tax benefit		65			131
Net unrealized losses on foreign exchange adjustment		(245	)		(494	)

Accumulated other comprehensive income	$	21,759		$	9,369

⁽¹⁾	Includes the $1,264 valuation allowance benefit recorded in other comprehensive income. See Note E - Income Taxes for additional information.

Details of changes in net unrealized gains (losses) on investments for the years ended December 31, 2020, 2019 and 2018 are as follows:

	2020			2019			2018
Investments:
Pre-tax holding gains (losses) on fixed income securities arising during period	$	10,501		$	19,182		$	(12,253	)
Less: applicable federal income tax expense (benefit) ⁽¹⁾		941			4,028			(2,573	)
		9,560			15,154			(9,680	)

Pre-tax gains (losses) on fixed income securities included in net income (loss) during period ⁽¹⁾		(3,267	)		(1,161	)		(3,560	)
Less: applicable federal income tax expense (benefit)		(686	)		(244	)		(748	)
		(2,581	)		(917	)		(2,812	)

Change in unrealized gains (losses) on investments	$	12,141		$	16,071		$	(6,868	)

⁽¹⁾	Includes the $1,264 valuation allowance benefit recorded in other comprehensive income. See Note E - Income Taxes for additional information.