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Summary of Investments
 12 Months Ended
Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]  
Summary of Investments SUMMARY OF INVESTMENTS
Fair Value of Investments

The table that follows is a reconciliation of the amortized cost (cost for equity securities) to fair value of investments in available-for-sale fixed maturity securities, presented on a consolidated basis as of December 31, 2021 and 2020.
December 31, 2021
Type of InvestmentCost or Amortized Cost Gross Unrealized Appreciation Gross Unrealized Depreciation Fair ValueAllowance for Credit LossesCarrying Value
AVAILABLE-FOR-SALE
Fixed maturities
Bonds
U.S. Treasury$42,425 $216 $718 $41,923 $— $41,923 
U.S. government agency60,074 2,155 562 61,667 — 61,667 
States, municipalities and political subdivisions
  General obligations:
     Midwest71,863 2,483 — 74,346 — 74,346 
     Northeast22,061 701 — 22,762 — 22,762 
     South90,171 3,873 — 94,044 — 94,044 
     West93,968 5,110 — 99,078 — 99,078 
   Special revenue:
     Midwest114,997 7,292 — 122,289 — 122,289 
     Northeast55,811 3,921 — 59,732 — 59,732 
     South201,383 14,365 78 215,670 — 215,670 
     West126,521 8,128 — 134,649 — 134,649 
Foreign bonds30,314 789 197 30,906 — 30,906 
Public utilities104,008 3,966 481 107,493 — 107,493 
Corporate bonds
Energy31,011 1,751 81 32,681 — 32,681 
Industrials55,014 2,319 162 57,171 — 57,171 
Consumer goods and services71,543 1,912 611 72,844 — 72,844 
Health care27,351 539 461 27,429 — 27,429 
Technology, media and telecommunications55,405 2,958 866 57,497 — 57,497 
Financial services98,352 4,394 131 102,615 102,615 
Mortgage-backed securities25,075 167 229 25,013 — 25,013 
Collateralized mortgage obligations
Government national mortgage association109,968 2,322 1,772 110,518 — 110,518 
Federal home loan mortgage corporation120,911 736 1,658 119,989 — 119,989 
Federal national mortgage association48,246 945 642 48,549 — 48,549 
Asset-backed securities325 600 — 925 — 925 
Total Available-For-Sale Fixed Maturities$1,656,797 $71,642 $8,649 $1,719,790 $— $1,719,790 
December 31, 2020
Type of InvestmentCost or Amortized Cost Gross Unrealized Appreciation Gross Unrealized Depreciation Fair ValueAllowance for Credit LossesCarrying Value
AVAILABLE-FOR-SALE
Fixed maturities
Bonds
U.S. Treasury$149,481 $482 $25 $149,938 $— $149,938 
U.S. government agency60,502 4,016 — 64,518 — 64,518 
States, municipalities and political subdivisions
   General obligations:
      Midwest77,933 4,047 — 81,980 — 81,980 
      Northeast29,071 1,379 — 30,450 — 30,450 
      South104,522 5,448 — 109,970 — 109,970 
      West102,590 7,431 — 110,021 — 110,021 
   Special revenue:
      Midwest115,956 9,142 — 125,098 — 125,098 
      Northeast56,317 4,759 — 61,076 — 61,076 
      South208,739 17,967 — 226,706 — 226,706 
      West129,417 9,982 — 139,399 — 139,399 
Foreign bonds27,799 1,805 2 29,602 — 29,602 
Public utilities76,114 7,388 — 83,502 — 83,502 
Corporate bonds
Energy22,441 2,895 — 25,336 — 25,336 
Industrials39,513 3,744 — 43,257 — 43,257 
Consumer goods and services46,521 4,046 — 50,567 — 50,567 
Health care6,678 898 — 7,576 — 7,576 
Technology, media and telecommunications37,270 4,381 15 41,636 — 41,636 
Financial services93,736 7,564 269 101,031 5 101,026 
Mortgage-backed securities20,305 326 54 20,577 — 20,577 
Collateralized mortgage obligations
Government national mortgage association81,758 4,439 45 86,152 — 86,152 
Federal home loan mortgage corporation151,362 2,239 758 152,843 — 152,843 
Federal national mortgage association81,952 2,013 683 83,282 — 83,282 
Asset-backed securities314 612 — 926 — 926 
Total Available-For-Sale Fixed Maturities$1,720,291 $107,003 $1,851 $1,825,443 $5 $1,825,438 
Maturities
The amortized cost and fair value of available-for-sale fixed maturity securities at December 31, 2021, by contractual maturity, are shown in the following table. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Asset-backed securities, mortgage-backed securities and collateralized mortgage obligations may be subject to prepayment risk and are therefore not categorized by contractual maturity.
Maturities
 Available-For-Sale
December 31, 2021 Amortized Cost Fair Value
Due in one year or less $63,120  $63,776 
Due after one year through five years 475,467  496,231 
Due after five years through 10 years 386,274  403,830 
Due after 10 years 427,411  450,959 
Asset-backed securities325 925 
Mortgage-backed securities 25,075  25,013 
Collateralized mortgage obligations 279,125  279,056 
  $1,656,797  $1,719,790 
Net Investment Gains and Losses
Net gains (losses) on disposition of investments are computed using the specific identification method and are included in the computation of net income. A summary of net investment gains (losses) for 2021, 2020 and 2019, is as follows:
2021 20202019
Net investment gains (losses)   
Fixed maturities:
Available-for-sale$(277)$1,787 $655 
Allowance for credit losses5 (5)— 
Trading securities
Change in fair value— (3,314)1,351 
Sales— 2,950 1,993 
Equity securities
Change in fair value30,682 (6,875)51,231 
Sales14,444 (26,906)725 
Mortgage loans5 (4)(26)
Other long-term investments2,780  — — 
   Real estate(256)(28)(2,150)
   Total net investment gains (losses)$47,383 $(32,395)$53,779 
The proceeds and gross realized gains (losses) on the sale of available-for-sale fixed maturity securities for 2021, 2020 and 2019, are as follows:
2021 20202019
Proceeds from sales$180,514  $50,744 $41,760 
Gross realized gains843  1,400 302 
Gross realized losses(1,120) (495)(13)
Net investment income for the years ended December 31, 2021, 2020 and 2019, is comprised of the following:
Years Ended December 31,2021 20202019
Investment income:
Interest on fixed maturities$43,224 $46,478 $50,274 
Dividends on equity securities5,031 6,368 7,842 
Income on other long-term investments
Investment income4,481 1,890 3,115 
Change in value (1)
9,699 (9,633)1,114 
Interest on mortgage loans1,995 1,949 1,595 
Interest on short-term investments18 107 522 
Interest on cash and cash equivalents252 763 2,681 
Other152 205 252 
Total investment income$64,852 $48,127 $67,395 
Less investment expenses9,074 8,457 6,981 
Net investment income$55,778 $39,670 $60,414 
(1)Represents the change in value of our interests in limited liability partnerships that are recorded on the equity method of accounting.
Funding Commitment
Pursuant to agreements with our limited liability partnership investments, we are contractually committed through July 10, 2030 to make capital contributions upon request of the partnerships. Our remaining potential contractual obligation was $11,115 at December 31, 2021.
In addition, the Company invested $25,000 in December 2019 in a limited liability partnership investment fund which is subject to a 3-year lockup with a 60 day minimum notice, with 4 possible repurchase dates per year, after the 3-year lockup period is met. The fair value of the investment at December 31, 2021 was $24,771 and there are no remaining capital contributions with this investment.
Credit Risk
An allowance for credit losses is recorded based on a number of factors including the current economic conditions, management's expectations of future economic conditions and performance indicators, such as market value vs. amortized cost, investment spreads widening or contracting, rating actions, payment and default history. The following table contains a rollforward of the allowance for credit losses for available-for-sale fixed maturity securities at December 31, 2021:
Rollforward of allowance for credit losses for available-for-sale fixed maturity securities:
As of
December 31, 2021
Beginning balance, January 1, 2021$5 
Additions to the allowance for credit losses for which credit losses were not previously recorded0
Reductions for securities sold during the period (realized)— 
Write-offs charged against the allowance— 
Recoveries of amounts previously written off(5)
Ending balance, December 31, 2021$— 
Unrealized Appreciation and Depreciation
A summary of changes in net unrealized investment appreciation for 2021, 2020 and 2019, is as follows:
2021 20202019
Change in net unrealized investment appreciation (depreciation)   
Available-for-sale fixed maturities$(42,159)$45,305 $71,648 
Income tax effect8,858  (9,514)(15,046)
Total change in net unrealized investment appreciation (depreciation), net of tax$(33,301) $35,791 $56,602 
The following tables summarize our fixed maturity securities that were in an unrealized loss position reported on a consolidated basis at December 31, 2021 and 2020. The securities are presented by the length of time they have been continuously in an unrealized loss position. Non-credit related unrealized losses are recognized as a component of other comprehensive income and represent other market movements that are not credit related, for example interest rate changes. We have no intent to sell, and it is more likely than not that we will not be required to sell, these securities until the fair value recovers to at least equal our cost basis or the securities mature.
December 31, 2021Less than 12 months12 months or longerTotal
Type of InvestmentNumber
of Issues		Fair
Value		Gross Unrealized
Depreciation		Number
of Issues		Fair
Value		Gross Unrealized DepreciationFair
Value		Gross Unrealized Depreciation
AVAILABLE-FOR-SALE
Fixed maturities
Bonds
U.S. Treasury6 $32,166 $630 1 $2,837 $88 $35,003 $718 
U.S. government agency3 15,023 562 — — — 15,023 562 
States, municipalities and political subdivisions
      South1 1,195 78 — — — 1,195 78 
Foreign bonds4 10,731 147 1 1,952 50 12,683 197 
Public utilities9 24,238 481 — — — 24,238 481 
Corporate bonds
Energy1 5,881 81 — — — 5,881 81 
Industrials4 8,902 162 — — — 8,902 162 
Consumer goods and services10 26,367 611 — — — 26,367 611 
Health care3 20,550 461 — — — 20,550 461 
Technology, media and telecommunications4 11,204 739 1 1,906 127 13,110 866 
Financial services5 13,320 131 — — — 13,320 131 
Mortgage-backed securities12 13,740 229 — — — 13,740 229 
Collateralized mortgage obligations
Government national mortgage association11 48,256 1,752 1 1,032 20 49,288 1,772 
Federal home loan mortgage corporation18 50,701 698 7 30,847 960 81,548 1,658 
Federal national mortgage association6 21,806 521 4 5,297 121 27,103 642 
Total Available-for-Sale Fixed Maturities97 $304,080 $7,283 15 $43,871 $1,366 $347,951 $8,649 
The unrealized losses on our investments in available-for-sale fixed maturities were the result of interest rate movements. We have no intent to sell, and it is more likely than not that we will not be required to sell, these securities until the fair value recovers to at least equal our cost basis or the securities mature.
December 31, 2020Less than 12 months12 months or longerTotal
Type of InvestmentNumber
of Issues		Fair
Value		Gross Unrealized DepreciationNumber
of Issues		Fair
Value		Gross Unrealized DepreciationFair
Value		Gross Unrealized Depreciation
AVAILABLE-FOR-SALE
Fixed maturities
Bonds
U.S. Treasury5 $86,371 $25 — $— $— $86,371 $25 
Foreign bonds1 2,000 2 — — — 2,000 2 
Corporate bonds
Technology, media and telecommunications1 2,020 15 — — — 2,020 15 
Corporate bonds - financial services1 2,995 5 1 3,000 7 5,995 12 
Mortgage-backed securities2 8,099 53 5 118 1 8,217 54 
Collateralized mortgage obligations
Government national mortgage association2 12,394 45 1 24 — 12,418 45 
Federal home loan mortgage corporation24 97,691 758 1 26 — 97,717 758 
Federal national mortgage association10 44,677 683 — — — 44,677 683 
Total Available-for-Sale Fixed Maturities46 $256,247 $1,586 8 $3,168 $8 $259,415 $1,594