Investments
12 Months Ended
Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]
INVESTMENTS
The amortized cost, gross unrealized gains and losses, and estimated fair value of the Company's investments in fixed maturities and equity investments at December 31, 2015 and December 31, 2014 are summarized in the tables shown below:
(in thousands)
 
December 31, 2015
 
 
 
Amortized Cost

 
Gross Unrealized Gains

 
Gross Unrealized Losses

 
Estimated  Fair Value

Fixed maturities:
 
 
 
 
 
 
 
 
U.S. government, government agencies and authorities
 
$
20,443

 
$
73

 
$
63

 
$
20,453

States, municipalities and political subdivisions
 
2,241

 
20

 
5

 
2,256

Mortgage-backed
 
7,997

 
25

 
59

 
7,963

Asset-backed securities and collateralized mortgage obligations
 
6,040

 
4

 
21

 
6,023

Corporate
 
18,885

 
60

 
81

 
18,864

Total fixed maturities
 
55,606

 
182

 
229

 
55,559

Equity investments:
 
 
 
 
 
 
 
 
Common stock
 
25,177

 
3,464

 
2,055

 
26,586

Warrants
 
1,251

 
52

 
330

 
973

Total equity investments
 
26,428

 
3,516

 
2,385

 
27,559

Total fixed maturities and equity investments
 
$
82,034

 
$
3,698

 
$
2,614

 
$
83,118


(in thousands)
 
December 31, 2014
 
 
 
Amortized Cost

 
Gross Unrealized Gains

 
Gross Unrealized Losses

 
Estimated  Fair Value

Fixed maturities:
 
 
 
 
 
 
 
 
U.S. government, government agencies and authorities
 
$
20,436

 
$
333

 
$
10

 
$
20,759

Canadian government
 
4,519

 

 
277

 
4,242

States, municipalities and political subdivisions
 
3,358

 
61

 

 
3,419

Mortgage-backed
 
5,330

 
37

 
15

 
5,352

Asset-backed securities and collateralized mortgage obligations
 
7,221

 
3

 
10

 
7,214

Corporate
 
15,136

 
103

 
30

 
15,209

Total fixed maturities
 
56,000

 
537

 
342

 
56,195

Equity investments:
 
 
 
 
 
 
 
 
Common stock
 
16,450

 
3,360

 
284

 
19,526

Warrants
 
129

 

 
37

 
92

Total equity investments
 
16,579

 
3,360

 
321

 
19,618

Total fixed maturities and equity investments
 
$
72,579

 
$
3,897

 
$
663

 
$
75,813


The table below summarizes the Company's fixed maturities at December 31, 2015 by contractual maturity periods. Actual results may differ as issuers may have the right to call or prepay obligations, with or without penalties, prior to the contractual maturity of these obligations.
(in thousands)
 
December 31, 2015
 
 
 
Amortized Cost

 
Estimated Fair Value

Due in one year or less
 
$
9,995

 
$
10,078

Due after one year through five years
 
36,091

 
35,999

Due after five years through ten years
 
1,429

 
1,425

Due after ten years
 
8,091

 
8,057

Total
 
$
55,606

 
$
55,559



The following tables highlight the aggregate unrealized loss position, by security type, of fixed maturities and equity investments in unrealized loss positions as of December 31, 2015 and December 31, 2014. The tables segregate the holdings based on the period of time the investments have been continuously held in unrealized loss positions.
(in thousands)
 
 
 
 
 
 
 
 
December 31, 2015
 
 
Less than 12 Months
 
Greater than 12 Months
 
Total
 
Estimated Fair Value
 
Unrealized Loss
 
Estimated Fair Value
 
Unrealized Loss
 
Estimated Fair Value
 
Unrealized Loss
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
U.S. government, government agencies and authorities
$
12,635

 
$
63

 
$

 
$

 
$
12,635

 
$
63

States, municipalities and political subdivisions
745

 
5

 

 

 
745

 
5

Mortgage-backed
5,685

 
59

 

 

 
5,685

 
59

Asset-backed securities and collateralized mortgage obligations
5,035

 
21

 

 

 
5,035

 
21

Corporate
9,171

 
81

 

 

 
9,171

 
81

Total fixed maturities
33,271

 
229

 

 

 
33,271

 
229

Equity investments:
 
 
 
 
 
 
 
 
 
 
 
Common stock
15,711

 
2,055

 

 

 
15,711

 
2,055

Warrants
897

 
330

 

 

 
897

 
330

Total equity investments
16,608

 
2,385

 

 

 
16,608

 
2,385

Total
$
49,879

 
$
2,614

 
$

 
$

 
$
49,879

 
$
2,614


(in thousands)
 
 
 
 
 
 
 
 
December 31, 2014
 
 
Less than 12 Months
 
Greater than 12 Months
 
Total
 
Estimated Fair Value
 
Unrealized Loss
 
Estimated Fair Value
 
Unrealized Loss
 
Estimated Fair Value
 
Unrealized Loss
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
U.S. government, government agencies and authorities
$
12,784

 
$
10

 
$
473

 
$

 
$
13,257

 
$
10

Canadian government

 

 
4,242

 
277

 
4,242

 
277

States, municipalities and political subdivisions
250

 

 

 

 
250

 

Mortgage-backed
2,816

 
15

 

 

 
2,816

 
15

Asset-backed securities and collateralized mortgage obligations
5,097

 
10

 

 

 
5,097

 
10

Corporate
6,226

 
20

 

 
10

 
6,226

 
30

Total fixed maturities
27,173

 
55

 
4,715

 
287

 
31,888

 
342

Equity investments:
 
 
 
 
 
 
 
 
 
 
 
Common stock
4,164

 
284

 

 

 
4,164

 
284

Warrants
92

 
37

 

 

 
92

 
37

Total equity investments
4,256

 
321

 

 

 
4,256

 
321

Total
$
31,429

 
$
376

 
$
4,715

 
$
287

 
$
36,144

 
$
663


Fixed maturities and equity investments contain approximately 127 and 71 individual investments that were in unrealized loss positions as of December 31, 2015 and 2014, respectively. 
The establishment of an other-than-temporary impairment on an investment requires a number of judgments and estimates. The Company performs a quarterly analysis of the individual investments to determine if declines in market value are other-than-temporary. The analysis includes some or all of the following procedures as deemed appropriate by the Company:
identifying all unrealized loss positions that have existed for at least six months;
identifying other circumstances which management believes may impact the recoverability of the unrealized loss positions;
obtaining a valuation analysis from third-party investment managers regarding the intrinsic value of these investments based on their knowledge and experience together with market-based valuation techniques;
reviewing the trading range of certain investments over the preceding calendar period;
assessing if declines in market value are other-than-temporary for debt instruments based on the investment grade credit ratings from third-party rating agencies;
assessing if declines in market value are other-than-temporary for any debt instrument with a non-investment grade credit rating based on the continuity of its debt service record;
determining the necessary provision for declines in market value that are considered other-than-temporary based on the analyses performed; and
assessing the Company's ability and intent to hold these investments at least until the investment impairment is recovered.
The risks and uncertainties inherent in the assessment methodology used to determine declines in market value that are other-than-temporary include, but may not be limited to, the following:
the opinions of professional investment managers could be incorrect;
the past trading patterns of individual investments may not reflect future valuation trends;
the credit ratings assigned by independent credit rating agencies may be incorrect due to unforeseen or unknown facts related to a company's financial situation; and
the debt service pattern of non-investment grade instruments may not reflect future debt service capabilities and may not reflect a company's unknown underlying financial problems.
As a result of the analysis performed by the Company to determine declines in market value that are other-than-temporary, the Company recorded a write down of $0.0 million for other-than-temporary impairment related to fixed maturities for the year ended December 31, 2015. The Company did not recognize any impairment related to its investments that was considered other-than-temporary for the year ended December 31, 2014.
There were $0.0 million of other-than-temporary losses recognized in other comprehensive income for the year ended December 31, 2015. There were no other-than-temporary losses recognized in other comprehensive loss for the year ended December 31, 2014.
The Company has reviewed currently available information regarding investments with estimated fair values that are less than their carrying amounts and believes that these unrealized losses are not other-than-temporary and are primarily due to temporary market and sector-related factors rather than to issuer-specific factors. The Company does not intend to sell those investments, and it is not likely that it will be required to sell those investments before recovery of its amortized cost.
The Company does not have any exposure to subprime mortgage-backed investments.
Limited liability investments include investments in limited liability companies and limited partnerships that primarily invest in income-producing real estate or real estate related investments. The Company's interests in these investments are not deemed minor and, therefore, are accounted for under the equity method of accounting. As of December 31, 2015 and December 31, 2014, the carrying value of limited liability investments totaled $20.1 million and $7.3 million, respectively. At December 31, 2015, the Company has unfunded commitments totaling $2.0 million to fund limited liability investments.
Other investments include mortgage and collateral loans and are reported at their unpaid principal balance. As of December 31, 2015 and December 31, 2014, the carrying value of other investments totaled $4.1 million and $3.6 million, respectively.
Gross realized gains and losses on fixed maturities, equity investments and limited liability investments for the years ended December 31, 2015 and 2014 were as follows:
(in thousands)
 
Years ended December 31,
 
 
 
2015

 
2014

Gross realized gains
 
$
1,198

 
$
5,474

Gross realized losses
 
(1
)
 
(433
)
Total
 
$
1,197

 
$
5,041



Net investment income for the years ended December 31, 2015 and 2014, respectively, is comprised as follows:
(in thousands)
 
Years ended December 31,
 
 
 
2015

 
2014

Investment income
 
 
 
 
  Interest from fixed maturities
 
$
907

 
$
1,084

Dividends
 
702

 
203

Income from limited liability investments
 
1,596

 
184

Loss on change in fair value of warrants
 
(216
)
 

Other
 
186

 
372

Gross investment income
 
3,175

 
1,843

Investment expenses
 
(257
)
 
(227
)
Net investment income
 
$
2,918

 
$
1,616