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Investments (Tables)
 6 Months Ended
Jun. 30, 2013
Investments Debt And Equity Securities [Abstract]  
Summarize Company's Investment Securities

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

 

June 30, 2013

    Amortized
Cost		      Gross
Unrealized
Gains		      Gross
Unrealized
Losses		     Fair
Value		  

U.S. government and agencies

    $ 11,202       $ 670       $ —        $ 11,872   

State

      2,986         61         (3 )      3,044   

Political subdivisions

      752         21         —          773   

Revenue and assessment

      15,219         920         (5 )      16,134   

Corporate bonds

      68,725         2,449         (1,854 )      69,320   

Collateralized mortgage obligations:

           

Agency backed

      8,781         553         —          9,334   

Non-agency backed – residential

      4,642         479         (19 )      5,102   

Non-agency backed – commercial

      4,357         496         —          4,853   

Redeemable preferred stocks

      1,500         193         —          1,693   
  

 

 

     

 

 

     

 

 

    

 

 

  

Total fixed maturities, available-for-sale

      118,164         5,842         (1,881 )      122,125   

Mutual funds, available-for-sale

      9,901         737         (1 )      10,637   
  

 

 

     

 

 

     

 

 

    

 

 

  
   $ 128,065       $ 6,579       $ (1,882 )    $ 132,762   
  

 

 

     

 

 

     

 

 

    

 

 

  

December 31, 2012

    Amortized
Cost		      Gross
Unrealized
Gains		      Gross
Unrealized
Losses		     Fair
Value		  

U.S. government and agencies

    $ 11,202       $ 908       $ —        $ 12,110   

State

      3,994         117         —          4,111   

Political subdivisions

      753         37         —          790   

Revenue and assessment

      16,449         1,553         (6 )      17,996   

Corporate bonds

      68,114         3,669         (246 )      71,537   

Collateralized mortgage obligations:

           

Agency backed

      11,079         791         —          11,870   

Non-agency backed – residential

      5,098         472         (98 )      5,472   

Non-agency backed – commercial

      4,652         457         —          5,109   

Redeemable preferred stock

      1,500         218         —          1,718   
  

 

 

     

 

 

     

 

 

    

 

 

  

Total fixed maturities, available-for-sale .

      122,841         8,222         (350 )      130,713   

Mutual fund, available-for-sale .

      7,501         832         —          8,333   
  

 

 

     

 

 

     

 

 

    

 

 

  
   $ 130,342       $ 9,054       $ (350 )    $ 139,046   
  

 

 

     

 

 

     

 

 

    

 

 

  
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, 2013

    Securities
with
Unrealized
Gains		      Securities
with
Unrealized
Losses		      Securities
with No
Unrealized
Gains or
Losses		      All
Fixed
Maturity
Securities		  

One year or less

    $ 10,260       $ —         $ 1,585       $ 11,845   

After one through five years

      28,724         13,579         —           42,303   

After five through ten years

      17,080         20,409         —           37,489   

After ten years

      6,756         2,749         —           9,505   

No single maturity date

      20,605         378         —           20,983   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 83,425       $ 37,115       $ 1,585       $ 122,125   
  

 

 

     

 

 

     

 

 

     

 

 

  

December 31, 2012

    Securities
with
Unrealized
Gains		      Securities
with
Unrealized
Losses		      Securities
with No
Unrealized
Gains or
Losses		      All
Fixed
Maturity
Securities		  

One year or less

    $ 9,380       $ —         $ 5       $ 9,385   

After one through five years

      34,460         11,518         —           45,978   

After five through ten years

      25,230         15,181         —           40,411   

After ten years

      10,770         —           —           10,770   

No single maturity date

      23,833         336         —           24,169   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 103,673       $ 27,035       $ 5       $ 130,713   
  

 

 

     

 

 

     

 

 

     

 

 

  
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         

At:

    Less than
or equal to
12 months		      Greater
than  12
months		      Gross
Unrealized
Gains		  

June 30, 2013

      18         2         113   

December 31, 2012

      13         1         108   
Fair Value and Gross Unrealized Losses of Fixed Maturity Securities in 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, 2013:

    Number
of
Securities		      Fair
Value		      Gross
Unrealized
Losses		  

Less than or equal to 10%

      2       $ 947       $ (17 ) 

Greater than 10%

      —           —           —     
  

 

 

     

 

 

     

 

 

  
     2       $ 947       $ (17 ) 
  

 

 

     

 

 

     

 

 

  

Gross Unrealized Losses

at December 31, 2012:

    Number
of
Securities		      Fair
Value		      Gross
Unrealized
Losses		  

Less than or equal to 10%

      —         $ —         $ —     

Greater than 10%

      1         212         (78 ) 
  

 

 

     

 

 

     

 

 

  
     1       $ 212       $ (78 ) 
  

 

 

     

 

 

     

 

 

  
Gross Unrealized Losses by Current Severity and Length of Time that Individual Securities Have Been in 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

            Severity of Gross Unrealized Losses  

Length of Gross Unrealized Losses at June 30, 2013:

    Gross
Unrealized
Losses		      Gross
Unrealized
Losses		     Less
than 5%		     5% to
10%		     Greater
than
10%		  

Less than or equal to:

            

Three months

    $ 21,915       $ (804 )    $ (386 )    $ (419 )    $ —     

Six months

      3,368         (278 )      —          (278 )      —     

Nine months

      10,885         (782 )      (108 )      (674 )      —     

Twelve months

      —           —          —          —          —     

Greater than twelve months

      947         (17 )      (17 )      —          —     
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Total

    $ 37,115       $ (1,881 )    $ (511 )    $ (1,371 )    $   —     
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

 

    

Fair Value of

Securities with

            Severity of Gross Unrealized Losses  

Length of Gross Unrealized Losses at December 31, 2012:

    Gross
Unrealized
Losses		      Gross
Unrealized
Losses		     Less
than 5%		     5% to
10%		     Greater
than
10%		  

Less than or equal to:

            

Three months

    $ 26,121       $    (266 )    $ (246 )    $      —        $ (20 ) 

Six months

      —           —          —          —          —     

Nine months

      —           —          —          —          —     

Twelve months

      702         (6 )      (6 )      —          —     

Greater than twelve months

      212         (78 )      —          —          (78 ) 
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Total

    $ 27,035       $ (350 )    $ (252 )    $ —        $ (98 ) 
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  
Summarize Company's Investment Securities

Other Investments

The following table summarizes the Company’s other investments, which are included within other assets (in thousands).

 

June 30, 2013

    Amortized
Cost		      Gross
Unrealized
Gains		      Gross
Unrealized
Losses		     Fair
Value		  

Limited partnership interests

    $ 1,747       $ —         $ (20 )    $ 1,727   
Major Categories of Investment Income

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

 

                                                                       
     Three Months Ended
June  30,		     Six Months Ended
June 30,		  
     2013     2012     2013     2012  

Fixed maturities, available-for-sale

    $ 1,270      $ 1,746      $ 2,553      $ 3,506   

Mutual fund, available-for-sale

      145        140        285        277   

Other

      22        38        42        67   

Investment expenses

      (169 )      (162 )      (336 )      (318 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  
   $ 1,268      $ 1,762      $ 2,544      $ 3,532   
  

 

 

    

 

 

    

 

 

    

 

 

  
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,		  
     2013     2012     2013     2012  

Gains

    $ 7      $ 5      $ 48      $ 32   

Losses

      (62 )      (9 )      (62 )      (9 ) 

Other-than-temporary impairment

      —          (15 )      (28 )      (16 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  
   $ (55 )    $ (19 )    $ (42 )    $ 7   
  

 

 

    

 

 

    

 

 

    

 

 

  
Number and Amount of Securities for Which Company Has Recognized OTTI Charges in Net Income (Loss)

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

 

                                                               
     Three Months Ended June 30,  
     2013     2012  
     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,  
     2013     2012  
     Number
of
Securities		      OTTI     Number
of
Securities		      OTTI  

Collateralized mortgage obligations:

           

Non-agency backed – residential

      1       $ (28 )      1       $ (1 ) 

Non-agency backed – commercial

      —           —          1         (15 ) 
  

 

 

     

 

 

    

 

 

     

 

 

  
     1         (28 )      2         (16 ) 

Portion of loss recognized in accumulated other comprehensive income (loss)

         —             —     
     

 

 

       

 

 

  

Net OTTI recognized in net loss

       $ (28 )       $ (16 ) 
     

 

 

       

 

 

  
Progression of 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, 2013 and 2012 (in thousands).

 

                                                               
     Three Months Ended
June 30,		     Six Months Ended
June 30,		  
     2013     2012     2013     2012  

Beginning balance

    $ (2,607 )    $ (3,426 )    $ (2,666 )    $ (3,425 ) 

Additional credit impairments on:

         

Previously impaired securities

      —          (15 )      (28 )      (16 ) 

Securities without previous impairments

      —          —          —          —     
  

 

 

    

 

 

    

 

 

    

 

 

  
     —          (15 )      (28 )      (16 ) 

Reductions for securities sold (realized)

      (8 )      —          (95 )      —     
  

 

 

    

 

 

    

 

 

    

 

 

  
   $ (2,599 )    $ (3,441 )    $ (2,599 )    $ (3,441 )