Investments (Tables)
 12 Months Ended
Dec. 31, 2015
Investments [Abstract]  
Amortized Cost and Estimated Fair Value of Investments in Debt and Equity Securities

The amortized cost and estimated fair value of investments in debt and equity securities by category is as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2015

 

Amortized Cost

 

Gross Unrealized Gains

 

Gross Unrealized Losses

 

Fair Value

U.S. Treasury securities and obligations of U.S. Government

 

$

 76,323 

 

$

 7 

 

$

 (61)

 

$

 76,269 

Corporate bonds

 

 

 122,894 

 

 

 637 

 

 

 (1,822)

 

 

 121,709 

Collateralized corporate bank loans

 

 

 83,434 

 

 

 44 

 

 

 (1,882)

 

 

 81,596 

Municipal bonds

 

 

 196,446 

 

 

 1,888 

 

 

 (5,966)

 

 

 192,368 

Mortgage-backed

 

 

 59,532 

 

 

 155 

 

 

 (304)

 

 

 59,383 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total debt securities

 

 

 538,629 

 

 

 2,731 

 

 

 (10,035)

 

 

 531,325 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity securities

 

 

 24,951 

 

 

 23,391 

 

 

 (838)

 

 

 47,504 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total debt and equity securities

 

$

 563,580 

 

$

 26,122 

 

$

 (10,873)

 

$

 578,829 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2014

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities and obligations of U.S. Government

 

$

 93,280 

 

$

 29 

 

$

 (4)

 

$

 93,305 

Corporate bonds

 

 

 28,643 

 

 

 884 

 

 

 (85)

 

 

 29,442 

Collateralized corporate bank loans

 

 

 115,358 

 

 

 206 

 

 

 (1,915)

 

 

 113,649 

Municipal bonds

 

 

 161,546 

 

 

 2,384 

 

 

 (1,601)

 

 

 162,329 

Mortgage-backed

 

 

 51,943 

 

 

 487 

 

 

 (370)

 

 

 52,060 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total debt securities

 

 

 450,770 

 

 

 3,990 

 

 

 (3,975)

 

 

 450,785 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity securities

 

 

 25,360 

 

 

 31,086 

 

 

 (2)

 

 

 56,444 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total debt and equity securities

 

$

 476,130 

 

$

 35,076 

 

$

 (3,977)

 

$

 507,229 

 

Major Categories of Investment Income

Major categories of net investment income are summarized as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended December 31

 

 

2015

 

2014

 

2013

U.S. Treasury securities and obligations of U.S. Government

 

$

 670 

 

$

 395 

 

$

 143 

Corporate bonds

 

 

 1,435 

 

 

 1,378 

 

 

 2,341 

Collateralized corporate bank loans

 

 

 4,727 

 

 

 4,400 

 

 

 4,653 

Municipal bonds

 

 

 5,901 

 

 

 5,232 

 

 

 5,245 

Mortgage-backed

 

 

 1,288 

 

 

 995 

 

 

 737 

Equity securities

 

 

 673 

 

 

 509 

 

 

 484 

Cash and cash equivalents

 

 

 148 

 

 

 230 

 

 

 157 

 

 

 

 14,842 

 

 

 13,139 

 

 

 13,760 

Investment expenses

 

 

 (873)

 

 

 (756)

 

 

 (876)

Investment income, net of expenses

 

$

 13,969 

 

$

 12,383 

 

$

 12,884 

 

Major Categories of Net Realized Gains on Investments

Major categories of net realized gains on investments are summarized as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended December 31

 

 

2015

 

2014

 

2013

U.S. Treasury securities and obligations of U.S. Government

 

$

-

 

$

-

 

$

-

Corporate bonds

 

 

 -

 

 

 263 

 

 

 853 

Collateralized corporate bank loans

 

 

 126 

 

 

 109 

 

 

 373 

Municipal bonds

 

 

 (83)

 

 

 (140)

 

 

 (156)

Mortgage-backed

 

 

 240 

 

 

 32 

 

 

 -

Equity securities

 

 

 5,543 

 

 

 144 

 

 

 9,470 

Gain on investments

 

 

 5,826 

 

 

 408 

 

 

 10,540 

Other-than-temporary impairments

 

 

 (3,323)

 

 

 (274)

 

 

-

Net realized gains

 

$

 2,503 

 

$

 134 

 

$

 10,540 

 

Summary of Gross Unrealized Loss Position

The following schedules summarize the gross unrealized losses showing the length of time that investments have been continuously in an unrealized loss position as of December 31, 2015 and December 31, 2014 (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2015

 

 

12 months or less

 

Longer than 12 months

 

Total

 

 

Fair Value

 

Unrealized Losses

 

Fair Value

 

Unrealized Losses

 

Fair Value

 

Unrealized Losses

U.S. Treasury securities and obligations of U.S. Government

 

$

 41,428 

 

$

 (61)

 

$

 -

 

$

 -

 

$

 41,428 

 

$

 (61)

Corporate bonds

 

 

 96,475 

 

 

 (1,822)

 

 

 -

 

 

 -

 

 

 96,475 

 

 

 (1,822)

Collateralized corporate bank loans

 

 

 65,868 

 

 

 (1,758)

 

 

 3,532 

 

 

 (124)

 

 

 69,400 

 

 

 (1,882)

Municipal bonds

 

 

 44,525 

 

 

 (488)

 

 

 25,310 

 

 

 (5,478)

 

 

 69,835 

 

 

 (5,966)

Mortgage-backed

 

 

 36,251 

 

 

 (302)

 

 

 48 

 

 

 (2)

 

 

 36,299 

 

 

 (304)

Total debt securities

 

 

 284,547 

 

 

 (4,431)

 

 

 28,890 

 

 

 (5,604)

 

 

 313,437 

 

 

 (10,035)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity securities

 

 

 6,584 

 

 

 (838)

 

 

 -

 

 

 -

 

 

 6,584 

 

 

 (838)

Total debt and equity securities

 

$

 291,131 

 

$

 (5,269)

 

$

 28,890 

 

$

 (5,604)

 

$

 320,021 

 

$

 (10,873)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2014

 

 

12 months or less

 

Longer than 12 months

 

Total

 

 

Fair Value

 

Unrealized Losses

 

Fair Value

 

Unrealized Losses

 

Fair Value

 

Unrealized Losses

U.S. Treasury securities and obligations of U.S. Government

 

$

 15,005 

 

$

 (4)

 

$

 -

 

$

 -

 

$

 15,005 

 

$

 (4)

Corporate bonds

 

 

 7,552 

 

 

 (85)

 

 

 -

 

 

 -

 

 

 7,552 

 

 

 (85)

Collateralized corporate bank loans

 

 

 64,712 

 

 

 (824)

 

 

 8,898 

 

 

 (1,091)

 

 

 73,610 

 

 

 (1,915)

Municipal bonds

 

 

 50,546 

 

 

 (945)

 

 

 15,684 

 

 

 (656)

 

 

 66,230 

 

 

 (1,601)

Mortgage-backed

 

 

 20,469 

 

 

 (365)

 

 

 2,966 

 

 

 (5)

 

 

 23,435 

 

 

 (370)

Total debt securities

 

 

 158,284 

 

 

 (2,223)

 

 

 27,548 

 

 

 (1,752)

 

 

 185,832 

 

 

 (3,975)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity securities

 

 

 129 

 

 

 (2)

 

 

 -

 

 

 -

 

 

 129 

 

 

 (2)

Total debt and equity securities

 

$

 158,413 

 

$

 (2,225)

 

$

 27,548 

 

$

 (1,752)

 

$

 185,961 

 

$

 (3,977)

 

Schedule of Amortized Cost and Estimated Fair Value of Debt Securities

The amortized cost and estimated fair value of debt securities at December 31, 2015 by contractual maturity are as follows. Expected maturities may differ from contractual maturities because certain borrowers may have the right to call or prepay obligations with or without penalties.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortized Cost

 

 

Fair Value

 

 

(in thousands)

Due in one year or less

 

$

 76,739 

 

$

 76,560 

Due after one year through five years

 

 

 236,507 

 

 

 234,213 

Due after five years through ten years

 

 

 106,046 

 

 

 101,387 

Due after ten years

 

 

 59,805 

 

 

 59,782 

Mortgage-backed

 

 

 59,532 

 

 

 59,383 

 

 

$

 538,629 

 

$

 531,325