3. Investments

Investments, Available-for-Sale

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

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
June 30, 2016	Cost		Gains		Losses			Value
U.S. government and agencies	$	11,187	$	437	$	(1	)	$	11,623
State		700		3		—			703
Political subdivisions		4,294		78		—			4,372
Revenue and assessment		9,637		1,526		—			11,163
Corporate bonds		77,027		4,147		(4	)		81,170
Collateralized mortgage obligations:
Agency backed		771		86		—			857
Non-agency backed – residential		2,616		515		(8	)		3,123
Non-agency backed – commercial		1,673		543	—				2,216
Total fixed maturities, available-for-sale		107,905		7,335		(13	)		115,227
Preferred stock, available-for-sale		1,500		348		—			1,848
Mutual funds, available-for-sale		11,813		324		(124	)		12,013
	$	121,218	$	8,007	$	(137	)	$	129,088

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
December 31, 2015	Cost		Gains		Losses			Value
U.S. government and agencies	$	13,036	$	162	$	(85	)	$	13,113
State		698		4		—			702
Political subdivisions		4,354		9		—			4,363
Revenue and assessment		11,770		895		(21	)		12,644
Corporate bonds		79,426		2,022		(663	)		80,785
Collateralized mortgage obligations:
Agency backed		793		80		—			873
Non-agency backed – residential		2,877		579		(1	)		3,455
Non-agency backed – commercial		1,891		616		—			2,507
Total fixed maturities, available-for-sale		114,845		4,367		(770	)		118,442
Preferred stock, available-for-sale		1,500		223		—			1,723
Mutual funds, available-for-sale		11,959		120		(662	)		11,417
	$	128,304	$	4,710	$	(1,432	)	$	131,582

The following table sets 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.

					Securities
	Securities		Securities		with No		All
	with		with		Unrealized		Fixed
	Unrealized		Unrealized		Gains or		Maturity
June 30, 2016	Gains		Losses		Losses		Securities
One year or less	$	4,759	$	—	$	—	$	4,759
After one through five years		35,669		3,574		—		39,243
After five through ten years		56,093		—		—		56,093
After ten years		8,937		—		—		8,937
No single maturity date		5,899		296		—		6,195
	$	111,357	$	3,870	$	—	$	115,227

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

Less than

Greater

Gross

or equal to

than 12

Unrealized

At:

12 months

months

Gains

June 30, 2016

December 31, 2015

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).

	Number				Gross
Gross Unrealized Losses	of		Fair		Unrealized
at June 30, 2016:	Securities		Value		Losses
Less than or equal to 10%		1	$	3,574		(5	)
Greater than 10%		—		—		—
		1	$	3,574	$	(5	)

	Number				Gross
Gross Unrealized Losses	of		Fair		Unrealized
at December 31, 2015:	Securities		Value		Losses
Less than or equal to 10%		4	$	7,689	$	(241	)
Greater than 10%		—		—		—
		4	$	7,689	$	(241	)

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
Length of	Gross		Gross			Severity of Gross Unrealized Losses
Gross Unrealized Losses	Unrealized		Unrealized			Less			5% to			Greater
at June 30, 2016:	Losses		Losses			than 5%				10%		than 10%
Less than or equal to:
Three months	$	440	$	(2	)	$	(2	)	$	—		$	—
Six months		107		(7	)		—			(7	)		—
Nine months		—		—			—			—			—
Twelve months		7,378		(123	)		(123	)		—			—
Greater than twelve months		3,574		(5	)		(5	)		—			—
Total	$	11,499	$	(137	)	$	(130	)	$	(7	)	$	—

	Fair Value of
	Securities with
Length of	Gross		Gross			Severity of Gross Unrealized Losses
Gross Unrealized Losses	Unrealized		Unrealized			Less			5% to			Greater
at December 31, 2015:	Losses		Losses			than 5%				10%		than 10%
Less than or equal to:
Three months	$	20,899	$	(130	)	$	(130	)	$	—		$	—
Six months		7,036		(465	)		—			(465	)		—
Nine months		14,057		(395	)		(197	)		(197	)		(1	)
Twelve months		7,892		(201	)		(201	)		—			—
Greater than twelve months		7,689		(241	)		(241	)		—			—
Total	$	57,573	$	(1,432	)	$	(769	)	$	(662	)	$	(1	)

Other-Than-Temporary Impairment

For the six months ended June 30, 2016, the Company recognized OTTI charges in net income of $147 thousand related to one mutual fund.

The Company believes that the remaining securities having unrealized losses at June 30, 2016 were not other-than-temporarily impaired. The Company also does not intend to sell any of these securities and it is more likely than not that the Company will not be required to sell any of these securities before the recovery of their amortized cost basis.

Other Investments

Other investments consist of the common stock of a real estate investment trust and limited partnership interests in three funds that invest in (i) commercial real estate and secured commercial real estate loans acquired from financial intuitions, (ii) small balance distressed secured loans and debt securities and (iii) undervalued international publicly-traded equities. These investments have redemption and transfer restrictions. The Company recently withdrew from one of the limited partnership investments and received the final $1.0 million quarterly withdrawal installment in July 2016. The Company does not intend to sell the remaining investments, and it is more likely than not that the Company will not be required to sell them before the expiration of such restrictions. At June 30, 2016, the Company had unfunded commitments of $0.4 million with two of these investments.

Restrictions

At June 30, 2016, fixed maturities and cash equivalents with a fair value and amortized cost of $6.6 million were on deposit with various insurance departments as a requirement of doing business in those states. Cash equivalents with a fair value and amortized cost of $12.1 million were on deposit with another insurance company as collateral for an assumed reinsurance contract.

Investment Income and Net Realized Gains and Losses

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

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2016			2015			2016			2015
Fixed maturities, available-for-sale	$	981		$	1,039		$	1,951		$	2,054
Mutual funds, available-for-sale		160			145			366			293
Other investments		525			283			355			328
Other		105			59			183			118
Investment expenses		(125	)		(120	)		(247	)		(242	)
	$	1,646		$	1,406		$	2,608		$	2,551

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

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2016			2015			2016			2015
Gains	$	—		$	—		$	—		$	—
Losses		(15	)		(4	)		(17	)		(7	)
Other-than-temporary impairment		(147	)		—			(147	)		—
	$	(162	)	$	(4	)	$	(164	)	$	(7	)

Realized gains and losses on sales and redemptions are computed based on specific identification. The non-credit related portion of other-than-temporary impairment (“OTTI”) is included in other comprehensive loss. The amounts of non-credit OTTI for securities still owned was $0.9 million for non-agency backed residential collateralized mortgage obligations (“CMOs”) and $0.2 million related to non-agency backed commercial CMOs at both June 30, 2016 and December 31, 2015.