The cost (amortized cost with respect to certain fixed maturities), gross unrealized gains, gross unrealized losses and fair value of long-term investment securities are as follows:

					DECEMBER 31, 2011
								GROSS		GROSS
					AMORTIZED			UNREALIZED		UNREALIZED		FAIR
					COST			GAINS		LOSSES		VALUE
							(In thousands)
*FIXED MATURITIES*
	AVAILABLE-FOR-SALE:

	Corporate securities				$	30,031		$	510	$	(66)	$	30,475
	Collateralized mortgage obligations (CMO) –
				residential	1,760			168		(40)		1,888
	CMO – commercial				579			-		(364)		215
	States, municipalities and political subdivisions				8,851			528		(12)		9,367
	U.S. Government				5,982			309		-		6,291
	Government sponsored enterprise (GSE)				8,900			129		(46)		8,983
	Agency mortgage backed pass
				through securities (MBS)		196			16		-		212
			Total fixed maturities		$	56,299		$	1,660	$	(528)	$	57,431

*EQUITY SECURITIES*
	AVAILABLE-FOR-SALE
		Common stock			$	831		$	42	$	(22)	$	851
		Preferred stock with maturities				273			35		-		308
		Preferred stock without maturities				2,981			91		-		3,072
		Total equity securities			$	4,085		$	168	$	(22)	$	4,231

				DECEMBER 31, 2010
							GROSS		GROSS
				AMORTIZED			UNREALIZED		UNREALIZED		FAIR
				COST			GAINS		LOSSES		VALUE
						(In thousands)
*FIXED MATURITIES*
	AVAILABLE-FOR-SALE:

	Corporate securities			$	15,850		$	167	$	(248)	$	15,769
	CMO – residential			2,021			279		(107)		2,193
	CMO – commercial			579			-		(256)		323
	States, municipalities and political subdivisions			17,239			152		(327)		17,064
	U.S. Government			10,137			159		-		10,296
	GSE			7,678			145		(5)		7,818
	MBS				256			17		-		273
			Total fixed maturities	$	53,760		$	919	$	(943)	$	53,736

*EQUITY SECURITIES*
	AVAILABLE-FOR-SALE
		Common stock		$	604		$	26	$	(20)	$	610
		Preferred stock with maturities			273			54		-		327
		Preferred stock without maturities			2,993			77		(10)		3,060
		Total equity securities		$	3,870		$	157	$	(30)	$	3,997

Government-sponsored enterprise mortgage-backed securities consist of Federal Home Loan Mortgage Corporation and Federal National Mortgage Association securities.

The unrealized gains (losses) on certain available-for-sale securities (residential CMO’s and certain preferred stocks with maturities) at December 31, 2011 and 2010 include $140,000 and $99,000, respectively, of the non-credit related component of other-than-temporary impairment losses recognized in accumulated other comprehensive income.

The amortized cost and fair value of fixed maturities at December 31, 2011, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The average life of mortgage backed securities is affected by prepayments on the underlying loans and, therefore, is materially shorter than the original stated maturity.

						% OF
			AMORTIZED		FAIR	TOTAL FAIR
			COST		VALUE	VALUE
			(In thousands)

Due in one year or less		$	2,526	$	2,546	4%
Due after one year through five years			21,634		22,166	39%
Due after five years through ten years			17,581		18,016	31%
Due after ten years			6,013		6,252	11%
			47,754		48,980	85%

CMO and MBS
	15 years		2,949		2,725	5%
	30 years		5,596		5,726	10%

		$	56,299	$	57,431	100%

The following tables summarize, for all securities in an unrealized loss position at December 31, 2011 and December 31, 2010, the aggregate fair value and gross unrealized loss by length of time, those securities that have continuously been in an unrealized loss position (in thousands):

At December 31, 2011, a total of 9 fixed maturities and 6 equity securities were in a continuous unrealized loss position for less than 12 months. Also, at December 31, 2011, a total of 5 fixed maturities were in a continuous unrealized loss position for 12 months or longer. At December 31, 2010 a total of 20 fixed maturities and 9 equity securities were in a continuous unrealized loss position for less than 12 months. Also, at December 31, 2010, a total of 7 fixed maturities were in a continuous unrealized loss position for 12 months or longer. Except for certain fixed maturities which are determined to be other-than-temporarily impaired, there are no securities past due or securities for which the Company currently believes it is not probable that it will collect the current amortized cost basis of the security.

Substantially all of the unrealized losses on fixed maturities at December 31, 2011 and December 31, 2010 were attributable to changes in market interest rates and general disruptions in the credit market subsequent to purchase. The unrealized losses on corporate securities and state and political subdivisions are due to wider spreads. Spreads have widened in recent years as investors shifted funds to US Treasuries in response to the current market turmoil. Because the Company does not intend to sell, nor is it more likely than not that the Company will have to sell, such investments before recovery of their amortized cost bases, the Company does not consider those investments to be other-than-temporarily impaired at December 31, 2011.

At December 31, 2011, the Company had $732,000 invested in whole loan CMOs backed by Alt-A mortgages. Of this amount, 68.1% were in CMOs that originated in 2005 or earlier and 31.9% were in CMOs that originated in 2006 or later. The unrealized losses on all other CMO’s relate to prime rate CMO’s and are primarily attributable to general disruptions in the credit market subsequent to purchase. The Company’s mortgage security portfolio has no direct exposure to sub-prime mortgages.

Major categories of net investment income for years 2011, 2010 and 2009 are summarized as follows:

		Year Ended
		December 31,
		2011		2010		2009
		(In thousands)

Fixed maturities	$	1,918	$	2,052	$	2,346
Equity securities		281		262		219
Short-term investments		3		3		10
Other		(13)		201		349

Net investment income	$	2,189	$	2,518	$	2,924

Based on management’s review of the portfolio, which considered the various factors described in Note 2 (H) (vi), the Company recorded the following losses for other-than-temporary impairments in the Consolidated Statements of Operations for years 2011, 2010 and 2009 (in thousands):

				Year Ended
				December 31,
				2011		2010		2009

Impairment losses recognized in earnings:
		Fixed maturities		89		179		-

Impairment losses recognized in other
	comprehensive income:
		Fixed maturities		41		-		-

	Total other-than-temporary impairment losses		$	130	$	179	$	-

For the year ended December 31, 2011, other-than-temporary impairments recognized in earnings of $89,000 represent credit losses on fixed maturities as a result of the expected cash flows of certain securities being less than the securities’ amortized cost. For the year ended December 31, 2010, other-than-temporary impairments recognized in earnings of $179,000 represent credit losses on fixed maturities as a result of the expected cash flows of certain securities being less than the securities’ amortized cost.

Cumulative credit losses for other-than-temporary impairments recorded on securities for which a portion of an other-than-temporary impairment was recognized in other comprehensive income were as follows (in thousands):

Further deterioration in credit quality of the companies backing the securities, further deterioration in the condition of the financial services industry, a continuation of the current imbalance in liquidity that exist in the marketplace, a continuation or worsening of the current economic recession, or additional declines in real estate values may further affect the fair value of these securities and increase the potential that certain unrealized losses be designated as other-than-temporary in future periods and the Company may incur additional write-downs.