Investments

6 Months Ended

Jun. 30, 2022

INVESTMENTS

Money Market Investments. As of June 30, 2022, the Company had money market investments of $17.8 million that are classified as cash and cash equivalents in the Company’s Condensed Consolidated Balance Sheets. The Company had no money market investments as of December 31, 2021.

Investments in Marketable Equity Securities. Investments in marketable equity securities consist of the following:


	As of
	June 30, 2022		December 31, 2021
(in thousands)
Total cost	$	269,576	$	273,201
Gross unrealized gains	382,007		537,915
Gross unrealized losses	(2,979)		(1,119)
Total Fair Value	$	648,604	$	809,997

At June 30, 2022 and December 31, 2021, the Company owned 55,430 and 44,430 shares in Markel Corporation (Markel) valued at $71.7 million and $54.8 million, respectively. The Co-Chief Executive Officer of Markel, Mr. Thomas S. Gayner, is a member of the Company’s Board of Directors. As of June 30, 2022, there was no marketable equity security holding that exceeded 5% of the Company’s total assets.

The Company purchased $31.5 million of marketable equity securities during the first six months of 2022. The Company purchased $48.0 million of marketable equity securities during the first six months of 2021.

During the first six months of 2022, the gross cumulative realized gains from the sales of marketable equity securities were $39.1 million. The total proceeds from such sales were $74.2 million. During the first six months of 2021, the gross cumulative realized gains from the sales of marketable equity securities were $27.7 million. The total proceeds from such sales were $37.6 million.

The net (loss) gain on marketable equity securities comprised the following:


	Three Months Ended June 30				Six Months Ended June 30
(in thousands)	2022		2021		2022		2021
(Loss) gain on marketable equity securities, net	$	(165,540)	$	83,698	$	(118,628)	$	162,912
Less: Net losses (gains) in earnings from marketable equity securities sold and donated	4,838		(8,161)		10,605		(8,161)
Net unrealized (losses) gains in earnings from marketable equity securities still held at the end of the period	$	(160,702)	$	75,537	$	(108,023)	$	154,751

Investments in Affiliates. As of June 30, 2022, the Company held an approximate 12% interest in Intersection Holdings, LLC (Intersection), and accounts for its investment under the equity method. The Company holds two of the ten seats of Intersection’s governing board, which allows the Company to exercise significant influence over

Intersection. As of June 30, 2022, the Company also held investments in several other affiliates; GHG held a 40% interest in Residential Home Health Illinois, a 40% interest in Residential Hospice Illinois, a 40% interest in the joint venture formed between GHG and a Michigan hospital, and a 40% interest in the joint venture formed between GHG and Allegheny Health Network (AHN). During the first quarter of 2022, GHG invested an additional $18.5 million in the Residential Home Health Illinois and Residential Hospice Illinois affiliates to fund their acquisition of certain home health and hospice assets of the NorthShore University HealthSystem. The transaction diluted GHG’s interest in Residential Hospice Illinois resulting in a $0.6 million gain on the sale of investment in affiliate (see Note 12). For the three and six months ended June 30, 2022, the Company recorded $3.7 million and $7.0 million, respectively, in revenue for services provided to the affiliates of GHG. For the three and six months ended June 30, 2021, the Company recorded $2.7 million and $5.2 million, respectively, in revenue for services provided to the affiliates of GHG.

The Company had $54.3 million and $52.5 million in its investment account that represents cumulative undistributed income in its investments in affiliates as of June 30, 2022 and December 31, 2021, respectively.

Additionally, Kaplan International Holdings Limited (KIHL) held a 45% interest in a joint venture formed with University of York. KIHL loaned the joint venture £22 million, which loan is repayable over 25 years at an interest rate of 7% and guaranteed by the University of York. The loan is repayable by December 2041.

Cost Method Investments. The Company held investments without readily determinable fair values in a number of equity securities that are accounted for as cost method investments, which are recorded at cost, less impairment, and adjusted for observable price changes for identical or similar investments of the same issuer. The carrying value of these investments was $52.3 million and $48.9 million as of June 30, 2022 and December 31, 2021, respectively. During the three and six months ended June 30, 2021, the Company recorded gains of $7.8 million and $10.5 million, respectively, to those equity securities based on observable transactions.