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 (in thousands):

		MARCH 31, 2016
				GROSS		GROSS
		AMORTIZED		UNREALIZED		UNREALIZED		FAIR
		COST		GAINS		LOSSES		VALUE

*FIXED MATURITIES*
*AVAILABLE-FOR-SALE:*

Corporate securities	$	37,115	$	233	$	(436)	$	36,912
Foreign government		1,078		29		-		1,107
Collateralized mortgage obligations (CMO) – residential		168		2		-		170
States, municipalities and political subdivisions		35,358		722		(156)		35,924
U.S. Government		106,392		243		(6)		106,629
Government sponsored enterprise (GSE)		23		2		-		25
Agency mortgage backed pass through securities (MBS)		32		1		-		33
Redeemable preferred stocks		273		85		-		358
Total fixed maturities	$	180,439	$	1,317	$	(598)	$	181,158

*EQUITY SECURITIES*
*AVAILABLE-FOR-SALE:*

Nonredeemable preferred stocks		2,577		51		(25)		2,603
Total available-for-sale equity securities	$	2,577	$	51	$	(25)	$	2,603

		DECEMBER 31, 2015
				GROSS		GROSS
		AMORTIZED		UNREALIZED		UNREALIZED		FAIR
		COST		GAINS		LOSSES		VALUE

*FIXED MATURITIES*
AVAILABLE-FOR-SALE:

Corporate securities	$	37,044	$	25	$	(683)	$	36,386
Foreign government		1,088		7		(6)		1,089
CMO – residential		187		2		-		189
CMO – commercial		359		119		-		478
States, municipalities and political subdivisions		37,590		237		(178)		37,649
U.S. Government		7,679		59		(4)		7,734
GSE		998		2		(1)		999
MBS		34		1		-		35
Redeemable preferred stocks		273		101		-		374
Total fixed maturities	$	85,252	$	553	$	(872)	$	84,933

*EQUITY SECURITIES*
AVAILABLE-FOR-SALE

Nonredeemable preferred stocks		2,578		19		(3)		2,594
Total available-for-sale equity securities	$	2,578	$	19	$	(3)	$	2,594

Government-sponsored enterprises (“GSEs”) are private enterprises established and chartered by the Federal Government, or its various insurance and lease programs that carry the full faith and credit obligation of the US Government.

The amortized cost and fair value of fixed maturities at March 31, 2016, 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. CMOs and MBSs are shown separately, as they are not due at a single maturity.


		AMORTIZED		FAIR
		COST		VALUE
		(In thousands)

Due in one year or less	$	6,316	$	6,205
Due after one year through five years		121,831		122,135
Due after five years through ten years		24,438		24,885
Due after ten years		27,632		27,705
CMOs and MBSs		222		228

	$	180,439	$	181,158

The following tables summarize, for all securities in an unrealized loss position at March 31, 2016 and December 31, 2015, 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):

		March 31, 2016
		Less than 12 Months				12 Months or Longer				Total
		Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
		Value		Loss		Value		Losses		Value		Losses
FIXED MATURITIES:

Corporate securities	$	12,208	$	90	$	7,933	$	346	$	20,141	$	436
U.S. government		25,002		6		-		-		25,002		6
States, municipalities and political subdivisions		1,896		79		1,408		77		3,304		156
Nonredeemable preferred stocks		1,301		25		-		-		1,301		25
Total temporarily impaired securities	$	40,407	$	200	$	9,341	$	423	$	49,748	$	623

Number of securities in an unrealized loss position		14				9				23

		December 31, 2015
		Less than 12 Months				12 Months or Longer				Total
		Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
		Value		Loss		Value		Losses		Value		Losses
FIXED MATURITIES:

Corporate securities	$	24,627	$	387	$	6,760	$	296	$	31,387	$	683
Foreign government		484		6		-		-		484		6
U.S. government		995		4		-		-		995		4
GSE		973		1		-		-		973		1
States, municipalities and political subdivisions		13,013		98		1,408		80		14,421		178
Nonredeemable preferred stocks		1,324		3		-		-		1,324		3
Total temporarily impaired securities	$	41,416	$	499	$	8,168	$	376	$	49,584	$	875

Number of securities in an unrealized loss position		36				7				43

Substantially all of the unrealized losses on fixed maturities at March 31, 2016 and December 31, 2015 were attributable to changes in market interest rates. 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 March 31, 2016.

The following table summarizes the Company’s net investment income for three months ended March 31, 2016 and 2015 (in thousands):

		Three Months Ended
		March 31,
		2016		2015

Fixed maturities	$	628	$	541
Equity securities		51		32
Short-term investments		4		-
Interest relating to the Risk Solutions Sale and Coinsurance Transaction		887		-
Other		(100)		26

Net investment income	$	1,470	$	599

Net realized investment gains for the three months ended March 31, 2016 and 2015 are as follows (in thousands):

		Three Months Ended
		March 31,
		2016		2015

Available-for-sale securities:
Fixed maturities	$	214	$	123
Total available-for-sale securities		214		123

Trading securities		-		1
Change in unrealized gain on trading securities		-		17

Net realized investment gains (losses)	$	214	$	141

For the three months ended March 31, 2016 and 2015, proceeds from sales of available-for-sale securities were $3,953,000 and $10,041,000, respectively. For the three months ended March 31, 2016 and 2015, the Company recorded realized gross gains of $239,000 and $157,000, respectively, and gross losses of $25,000 and $34,000, respectively, on available-for-sale securities.

We recognize an other-than-temporary impairment loss in earnings in the period that we determine: 1) we intend to sell the security; 2) it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis; or 3) the security has a credit loss. Any non-credit portion of the other-than-temporary impairment loss is recognized in other comprehensive income (loss). See Note 1I(v) to the Consolidated Financial Statements in the 2015 Annual Report for further discussion of the factors considered by management in its regular review to identify and recognize other-than-temporary impairments on available-for-sale securities. The Company did not recognize any other-than-temporary impairments on available-for-sale securities in the first three months of 2016 or 2015.

Credit losses were recognized on certain fixed maturities for which each security also had an impairment loss recognized in other comprehensive income (loss). The rollforward of these credit losses were as follows for the periods indicated (in thousands):

		Three Months Ended
		March 31,
		2016		2015

Balance, beginning of period	$	288	$	288
Securities sold		(288)		-

Balance, end of period	$	-	$	288