Investments (Tables)

6 Months Ended

Jun. 30, 2012

Investments [Abstract]

Summarize the Company investment securities

The following tables summarize the Company’s investment securities (in thousands).

June 30, 2012	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. government and agencies	$	22,184	$	1,234	$	—		$	23,418
State		5,010		194		—			5,204
Political subdivisions		753		45		—			798
Revenue and assessment		22,058		1,559		(11	)		23,606
Corporate bonds		67,561		6,394		—			73,955
Collateralized mortgage obligations:
Agency backed		13,485		956		—			14,441
Non-agency backed – residential		5,349		143		(130	)		5,362
Non-agency backed – commercial		5,018		302		—			5,320
Redeemable preferred stocks		1,676		215		(11	)		1,880
Total fixed maturities, available-for-sale		143,094		11,042		(152	)		153,984
Investment in mutual fund, available-for-sale		7,501		376		—			7,877
	$	150,595	$	11,418	$	(152	)	$	161,861

December 31, 2011	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. government and agencies	$	24,178	$	1,350	$	—		$	25,528
State		6,099		288		—			6,387
Political subdivisions		754		27		—			781
Revenue and assessment		24,130		1,302		—			25,432
Corporate bonds		71,392		6,113		(208	)		77,297
Collateralized mortgage obligations:
Agency backed		16,953		1,180		—			18,133
Non-agency backed – residential		5,530		66		(167	)		5,429
Non-agency backed – commercial		5,862		275		(12	)		6,125
Redeemable preferred stock		176		—		(7	)		169
Total fixed maturities, available-for-sale		155,074		10,601		(394	)		165,281
Investment in mutual fund, available-for-sale		7,501		43		—			7,544
	$	162,575	$	10,644	$	(394	)	$	172,825

The scheduled maturities of the Company's fixed maturity securities based on their fair values

The following tables set forth the scheduled maturities of the Company’s fixed maturity securities based on their fair values (in thousands). Actual maturities may differ from contractual maturities because certain securities may be called or prepaid by the issuers.

June 30, 2012	Securities with Unrealized Gains		Securities with Unrealized Losses		Securities with No Unrealized Gains or Losses		All Fixed Maturity Securities
One year or less	$	20,002	$	—	$	2,155	$	22,157
After one through five years		51,538		1,003		—		52,541
After five through ten years		41,685		—		—		41,685
After ten years		10,598		—		—		10,598
No single maturity date		24,992		1,933		78		27,003
	$	148,815	$	2,936	$	2,233	$	153,984

December 31, 2011	Securities with Unrealized Gains		Securities with Unrealized Losses		Securities with No Unrealized Gains or Losses		All Fixed Maturity Securities
One year or less	$	15,801	$	2,506	$	955	$	19,262
After one through five years		61,511		—		—		61,511
After five through ten years		42,997		689		—		43,686
After ten years		7,860		3,106		—		10,966
No single maturity date		26,623		2,168		1,065		29,856
	$	154,792	$	8,469	$	2,020	$	165,281

Number of fixed maturity securities with gross unrealized gains and losses

The following table reflects the number of fixed maturity securities with gross unrealized gains and losses. Gross unrealized losses are further segregated by the length of time that individual securities have been in a continuous unrealized loss position.

	Gross Unrealized Losses				Gross Unrealized Gains
At:	Less than or equal to 12 months		Greater than 12 months
June 30, 2012		2		5		127
December 31, 2011		7		4		139

Fair value and gross unrealized losses of fixed maturity securities in a continuous unrealized loss position for greater than 12 months

The following tables reflect the fair value and gross unrealized losses of those fixed maturity securities in a continuous unrealized loss position for greater than 12 months. Gross unrealized losses are further segregated by the percentage of amortized cost (in thousands, except number of securities).

Gross Unrealized Losses at June 30, 2012:	Number of Securities		Fair Value		Gross Unrealized Losses
Less than or equal to 10%		4	$	1,544	$	(38	)
Greater than 10%		1		193		(103	)
		5	$	1,737	$	(141	)
Gross Unrealized Losses at December 31, 2011:	Number of Securities		Fair Value		Gross Unrealized Losses
Less than or equal to 10%		3	$	2,760	$	(92	)
Greater than 10%		1		191		(110	)
		4	$	2,951	$	(202	)

Gross unrealized losses by current severity and length of time that individual securities have been in a continuous unrealized loss position

The following tables set forth the amount of gross unrealized losses by current severity (as compared to amortized cost) and length of time that individual securities have been in a continuous unrealized loss position (in thousands).

	Fair Value of Securities with Gross Unrealized Losses
						Severity of Gross Unrealized Losses
Length of Gross Unrealized Losses at June 30, 2012:			Gross Unrealized Losses			Less than 5%			5% to 10%			Greater than 10%
Less than or equal to:
Three months	$	196	$	—		$	—		$	—		$	—
Six months		—		—			—			—			—
Nine months		—		—			—			—			—
Twelve months		1,003		(11	)		(11	)		—			—
Greater than twelve months		1,737		(141	)		(27	)		(11	)		(103	)
Total	$	2,936	$	(152	)	$	(38	)	$	(11	)	$	(103	)
	Fair Value of Securities with Gross Unrealized Losses
						Severity of Gross Unrealized Losses
Length of Gross Unrealized Losses at December 31, 2011:			Gross Unrealized Losses			Less than 5%			5% to 10%			Greater than 10%
Less than or equal to:
Three months	$	2,506	$	—		$	—		$	—		$	—
Six months		1,945		(174	)		—			(174	)		—
Nine months		898		(11	)		(11	)		—			—
Twelve months		169		(7	)		(7	)		—			—
Greater than twelve months		2,951		(202	)		(45	)		(47	)		(110	)
Total	$	8,469	$	(394	)	$	(63	)	$	(221	)	$	(110	)

Major categories of investment income

The major categories of investment income follow (in thousands).

	Three Months Ended June  30,						Six Months Ended June 30,
	2012			2011			2012			2011
Fixed maturities, available-for-sale	$	1,746		$	2,119		$	3,506		$	4,095
Investment in mutual fund, available-for-sale		140			151			277			302
Cash and cash equivalents		9			1			9			2
Other		29			30			58			58
Investment expenses		(162	)		(158	)		(318	)		(323	)
	$	1,762		$	2,143		$	3,532		$	4,134

The components of net realized gains (losses) on investments, available-for-sale at fair value

The components of net realized gains (losses) on investments, available-for-sale at fair value follow (in thousands).

	Three Months Ended June  30,						Six Months Ended June  30,
	2012			2011			2012			2011
Gains	$	5		$	150		$	32		$	150
Losses		(9	)		(1	)		(9	)		(2	)
Other-than-temporary impairment		(15	)		—			(16	)		(77	)
	$	(19	)	$	149		$	7		$	71

The number and amount of securities for which the Company has recognized OTTI charges in net loss

The number and amount of securities for which the Company has recognized OTTI charges in net loss are presented in the following tables (in thousands, except for the number of securities).

	Three Months Ended June 30,
	2012					2011
	Number of Securities		OTTI			Number of Securities		OTTI
Collateralized mortgage obligations:
Non-agency backed – commercial		1	$	(15	)		—	$	—
Portion of loss recognized in accumulated other comprehensive income (loss)				—					—
Net OTTI recognized in net loss			$	(15	)			$	—

	Six Months Ended June 30,
	2012					2011
	Number of Securities		OTTI			Number of Securities		OTTI
Collateralized mortgage obligations:
Non-agency backed – residential		1	$	(1	)		1	$	(77	)
Non-agency backed – commercial		1		(15	)		—		—
		2		(16	)		1		(77	)
Portion of loss recognized in accumulated other comprehensive income (loss)				—					—
Net OTTI recognized in net loss			$	(16	)			$	(77	)

Progression of the credit-related portion of OTTI on investments

The following is a progression of the credit-related portion of OTTI on investments owned at June 30, 2012 and 2011 (in thousands).

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Beginning balance	$	(3,426	)	$	(3,475	)	$	(3,425	)	$	(3,590	)
Additional credit impairments on:
Previously impaired securities		(15	)		—			(16	)		(77	)
Securities without previous impairments		—			—			—			—
		(15	)		—			(16	)		(77	)
Reductions for securities sold (realized)		—			132			—			324
	$	(3,441	)	$	(3,343	)	$	(3,441	)	$	(3,343	)