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Investments
 12 Months Ended
Dec. 31, 2020
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
    
Allowance
for Credit Losses
    
Gross
Unrealized
Gains
    
Gross
Unrealized
Losses
    
Net Unrealized
Gains (Losses)
  
December 31, 2020
                                    
Fixed income securities
                                    
Agency collateralized mortgage obligations
  
$
11,931
    
$
11,448
    
$
–
    
$
483
    
$
–
    
$
483
  
Agency mortgage-backed securities
    
102,107
      
99,060
      
–
      
3,062
      
(15
)
    
3,047
  
Asset-backed securities
    
107,696
      
108,686
      
–
      
596
      
(1,586
)
    
(990
)
Bank loans
    
11,361
      
11,590
      
–
      
128
      
(357
)
    
(229
)
Collateralized mortgage obligations
    
5,118
      
5,061
      
–
      
151
      
(94
)
    
57
  
Corporate securities
    
360,241
      
344,059
      
–
      
16,380
      
(198
)
    
16,182
  
Mortgage-backed securities
    
38,056
      
40,675
      
(1,035
)
    
659
      
(2,243
)
    
(1,584
)
Municipal obligations
    
45,143
      
43,353
      
–
      
1,820
      
(30
)
    
1,790
  
Non-U.S. government obligations
    
30,600
      
29,882
      
–
      
718
      
–
      
718
  
U.S. government obligations
    
207,439
      
200,654
      
–
      
7,000
      
(215
)
    
6,785
  
Total fixed income securities
  
$
919,692
    
$
894,468
    
$
(1,035
)
  
$
30,997
    
$
(4,738
)
  
$
26,259
  

 
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
  

The following table summarizes, for available-for-sale fixed income securities in an unrealized loss position at December 31, 2020 and December 31, 2019, the aggregate fair value and gross unrealized loss categorized by the duration individual securities have been continuously in an unrealized loss position.

  
2020
    
2019
  
   
Number of
Securities
    
Fair
Value
    
Gross
Unrealized Loss
    
Number of
Securities
    
Fair
Value
    
Gross
Unrealized Loss
  
Fixed income securities:
                                    
12 months or less
    
100
    
$
120,630
    
$
(3,405
)
    
88
    
$
108,387
    
$
(2,452
)
Greater than 12 months
    
24
      
33,065
      
(1,333
)
    
69
      
66,860
      
(1,100
)
Total fixed income securities
    
124
    
$
153,695
    
$
(4,738
)
    
157
    
$
175,247
    
$
(3,552
)

The fair value and the cost or amortized costs of fixed income investments at December 31, 2020, 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
  
$
117,017
      
12.7
%
  
$
115,774
      
12.9
%
Excess of one year to five years
    
359,314
      
39.1
      
346,150
      
38.7
  
Excess of five years to ten years
    
161,700
      
17.6
      
151,446
      
16.9
  
Excess of ten years
    
21,871
      
2.4
      
22,264
      
2.6
  
Total contractual maturities
    
659,902
      
71.8
      
635,634
      
71.1
  
Asset-backed securities
    
259,790
      
28.2
      
258,834
      
28.9
  
 Total
  
$
919,692
      
100.0
%
  
$
894,468
      
100.0
%

Major categories of investment income for the years ended December 31, 2020, 2019 and 2018 are summarized as follows:

  
2020
    
2019
    
2018
  
Interest on fixed income securities
  
$
24,874
    
$
24,620
    
$
19,092
  
Dividends on equity securities
    
1,868
      
2,320
      
4,380
  
Money market funds, Short-term and other
    
1,070
      
1,976
      
1,529
  
     
27,812
      
28,916
      
25,001
  
Investment expenses
    
(2,390
)
    
(2,667
)
    
(2,953
)
Net investment income
  
$
25,422
    
$
26,249
    
$
22,048
  

Following is a summary of the components of net realized and unrealized gains (losses) for the years ended December 31, 2020, 2019 and 2018:

  
2020
    
2019
    
2018
  
                   
Gross gains on available-for-sale fixed income securities during the period:
  
$
11,125
    
$
11,009
    
$
10,807
  
                         
Gross losses on available-for-sale fixed income securities during the period:
    
(9,943
)
    
(10,492
)
    
(14,367
)
                         
Impairment losses on investments
    
(2,861
)
    
(497
)
    
(19
)
                         
Change in value of limited partnership investments
    
(1,442
)
    
1,644
      
(9,343
)
                         
Gains (losses) on equity securities:
                        
Realized gains (losses) on equity securities sold during the period(1)
    
(8,058
)
    
1,938
      
(3,072
)
Unrealized gains (losses) on equity securities held at the end of the period
    
1,943
      
9,287
      
(9,697
)
Total realized and unrealized gains (losses) on equity securities
    
(6,115
)
    
11,225
      
(12,769
)
                         
Net realized and unrealized gains (losses) on investments
  
$
(9,236
)
  
$
12,889
    
$
(25,691
)

(1)
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.

As discussed in Note A, the Company adopted the provisions of the new CECL model for measuring expected credit losses for available-for-sale fixed income securities as of January 1, 2020.  The updated guidance amended the previous OTTI model for available-for-sale fixed income securities by requiring the recognition of impairments relating to credit losses through an allowance account on the consolidated balance sheet with a corresponding adjustment to earnings and limiting the amount of credit loss to the difference between a security’s amortized cost basis and its fair value.  For those securities in an unrealized loss position throughout the year where the Company intended to sell the security at the balance sheet date, a write down to earnings of $1,826 was recorded during the year ended December 31, 2020.  The Company also analyzed securities in an unrealized loss position for credit losses and recorded an allowance for credit losses of $1,035 as of December 31, 2020.  The Company reviewed its remaining fixed income securities in an unrealized loss position as of December 31, 2020 and determined the losses were the result of non-credit factors, such as the increase in market volatility due to the disruption in global financial markets as a result of the novel coronavirus ("COVID-19") pandemic and responses to it.  The Company currently does not intend to sell nor does it expect to be required to sell these securities before recovery of their amortized cost.

Gain and loss activity for fixed income securities, as shown in the previous table, includes adjustments for impairment losses on investments for the years ended December 31, 2020, 2019 and 2018 summarized as follows:

  
2020
    
2019
    
2018
  
Cumulative charges to income at beginning of year
  
$
889
    
$
930
    
$
4,209
  
                         
Write-downs based on objective and subjective criteria
    
1,826
      
497
      
19
  
Recovery of prior write-downs upon sale or disposal
    
(909
)
    
(538
)
    
(3,298
)
Net pre-tax realized gain (loss)
    
(917
)
    
41
      
3,279
  
                         
Cumulative charges to income at end of year
  
$
1,806
    
$
889
    
$
930
  

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, 2020.

The fair value of regulatory deposits with various insurance departments in the United States and Canada totaled $122,896 and $99,763 at December 31, 2020 and 2019, respectively.

Short-term investments at December 31, 2020 included $1,000 in certificates of deposit issued by a Bermuda bank.

The Company's fixed income securities are over 93% 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, 2020.

Approximately $63,660 of fixed income investments (6.1% 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 $2,230 aggregate net unrealized gain position at December 31, 2020.