Investments (Tables)

9 Months Ended

Sep. 30, 2014

Investments Debt And Equity Securities [Abstract]

Summary of Company's Investment Securities

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

September 30, 2014	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. government and agencies	$	4,005	$	290	$	(8)	$	4,287
State		698		33		-		731
Political subdivisions		500		8		-		508
Revenue and assessment		11,346		1,173		-		12,519
Corporate bonds		74,950		2,483		(1,007)		76,426
Collateralized mortgage obligations:
Agency backed		6,848		223		-		7,071
Non-agency backed – residential		3,682		676		-		4,358
Non-agency backed – commercial		2,425		696		-		3,121
Total fixed maturities, available-for-sale		104,454		5,582		(1,015)		109,021
Preferred stock, available-for-sale		1,500		221		-		1,721
Mutual funds, available-for-sale		9,900		871		-		10,771
	$	115,854	$	6,674	$	(1,015)	$	121,513

December 31, 2013	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. government and agencies	$	12,006	$	495	$	(16	)	$	12,485
State		697		39		—			736
Political subdivisions		601		11		—			612
Revenue and assessment		14,050		619		(11	)		14,658
Corporate bonds		73,461		2,127		(2,263	)		73,325
Collateralized mortgage obligations:
Agency backed		7,113		401		—			7,514
Non-agency backed – residential		4,181		480		(1	)		4,660
Non-agency backed – commercial		3,363		580		—			3,943
Total fixed maturities, available-for-sale		115,472		4,752		(2,291	)		117,933
Preferred stock, available-for-sale		1,500		78		—			1,578
Mutual funds, available-for-sale		9,901		836		—			10,737
	$	126,873	$	5,666	$	(2,291	)	$	130,248

Scheduled Maturities of 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.

September 30, 2014	Securities with Unrealized Gains		Securities with Unrealized Losses		Securities with No Unrealized Gains or Losses		All Fixed Maturity Securities
One year or less	$	5,106	$	-	$	-	$	5,106
After one through five years		27,068		10,941		-		38,009
After five through ten years		21,873		20,890		-		42,763
After ten years		6,858		1,735		-		8,593
No single maturity date		14,453		97		-		14,550
	$	75,358	$	33,663	$	-	$	109,021

December 31, 2013	Securities with Unrealized Gains		Securities with Unrealized Losses		Securities with No Unrealized Gains or Losses		All Fixed Maturity Securities
One year or less	$	14,305	$	—	$	—	$	14,305
After one through five years		25,667		10,888		—		36,555
After five through ten years		20,445		22,836		—		43,281
After ten years		3,667		4,008		—		7,675
No single maturity date		15,928		189		—		16,117
	$	80,012	$	37,921	$	—	$	117,933

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		Gross Unrealized Gains
September 30, 2014		5		11		81
December 31, 2013		12		7		83

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 September 30, 2014:	Number of Securities		Fair Value		Gross Unrealized Losses
Less than or equal to 10%		11	$	25,555	$	(974)
Greater than 10%		-		—		—
		11	$	25,555	$	(974)

Gross Unrealized Losses at December 31, 2013:	Number of Securities		Fair Value		Gross Unrealized Losses
Less than or equal to 10%		7	$	13,980	$	(1,270	)
Greater than 10%		—		—		—
		7	$	13,980	$	(1,270	)

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).

Length of Gross Unrealized Losses at September 30, 2014:	Fair Value of Securities with Gross Unrealized Losses		Gross Unrealized Losses		Severity of Gross Unrealized Losses
Length of Gross Unrealized Losses at September 30, 2014:	Fair Value of Securities with Gross Unrealized Losses		Gross Unrealized Losses		Less than 5%		5% to 10%		Greater than 10%
Less than or equal to:
Three months	$	1,198	$	(1)	$	(1)	$	-	$	-
Six months		3,038		(16)		(16)		-		-
Nine months		2,876		(16)		(16)		-		-
Twelve months		996		(8)		(8)		-		-
Greater than twelve months		25,555		(974)		(518)		(456)		-
Total	$	33,663	$	(1,015)	$	(559)	$	(456)	$	-

Length of Gross Unrealized Losses at December 31, 2013:	Fair Value of Securities with Gross Unrealized Losses		Gross Unrealized Losses			Severity of Gross Unrealized Losses
Length of Gross Unrealized Losses at December 31, 2013:	Fair Value of Securities with Gross Unrealized Losses		Gross Unrealized Losses			Less than 5%			5% to 10%			Greater than 10%
Less than or equal to:
Three months	$	6,417	$	(40	)	$	(40	)	$	—		$	—
Six months		1,653		(129	)		—			(129	)		—
Nine months		15,871		(852	)		(153	)		(699	)		—
Twelve months		—		—			—			—			—
Greater than twelve months		13,980		(1,270	)		(85	)		(1,185	)		—
Total	$	37,921	$	(2,291	)	$	(278	)	$	(2,013	)	$	—

Major Categories of Investment Income

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

	Three Months Ended September 30,					Nine Months Ended September 30,
	2014		2013			2014		2013
Fixed maturities, available-for-sale	$	1,089	$	1,213		$	3,442	$	3,717
Mutual funds, available-for-sale		151		176			458		462
Other investments		(29)		128			248		128
Other		54		73			156		163
Investment expenses		(123)		(117	)		(368)		(453	)
	$	1,142	$	1,473		$	3,936	$	4,017

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 September 30,					Nine Months Ended September 30,
	2014		2013			2014		2013
Gains	$	-	$	44		$	85	$	92
Losses		(4)		(5	)		(49)		(67	)
Other-than-temporary impairment		-		(33	)		-		(61	)
	$	(4)	$	6		$	36	$	(36	)

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 September 30, 2014 and 2013 (in thousands).

	Three Months Ended September 30,					Nine Months Ended September 30,
	2014		2013			2014		2013
Beginning balance	$	(2,632)	$	(2,599	)	$	(2,632)	$	(2,666	)
Additional credit impairments on:
Previously impaired securities		—		(33	)		—		(61	)
Securities without previous impairments		—		—			—		—
		—		(33	)		—		(61	)
Reductions for securities sold (realized)		—		—			—		95
	$	(2,632)	$	(2,632	)	$	(2,632)	$	(2,632	)

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

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- Definition

Tabular disclosure of investment income, including, but not limited to, interest and dividend income and amortization of discount (premium) derived from debt and equity securities. Excludes realized and unrealized gain (loss) on investments.

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- Definition

Tabular disclosure of the amount of other than temporary impairment (OTTI) related to credit losses recognized in earnings including: (a) the beginning balance of the amount related to credit losses on debt securities held by the investor at the beginning of the period for which a portion of an OTTI was recognized in other comprehensive income; (b) additions for the amount related to the credit loss for which an OTTI was not previously recognized; (c) reductions for securities sold during the period (realized); (d) reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the investor intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis; (e) additional increases to the amount related to the credit loss for which an OTTI was previously recognized when the investor does not intend to sell the security and it is not more likely than not that the investor will be required to sell the security before recovery of its amortized cost basis; (f) reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security; and (g) the ending balance of the amount related to credit losses on debt securities held by the entity at the end of the period for which a portion of an OTTI was recognized in other comprehensive income.

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