INVESTMENTS

6 Months Ended

Jun. 30, 2020

Investments, Debt and Equity Securities [Abstract]

5. INVESTMENTS

Unrealized Gains and Losses

The difference between amortized cost or cost and estimated fair value and gross unrealized gains and losses, by major investment category, consisted of the following:

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	Amortized		Gross		Gross
	Cost		Unrealized		Unrealized
	or Cost		Gains		Losses		Fair Value
	(In thousands)
June 30, 2020
Debt securities - available-for-sale:
United States government obligations and authorities	$	192,968	$	2,860	$	200	$	195,628
Obligations of states and political subdivisions	22,414		799		—		23,213
Corporate	294,159		15,163		585		308,737
International	27,355		1,089		61		28,383
	$	536,896	$	19,911	$	846	$	555,961

໿


	Amortized		Gross		Gross
	Cost		Unrealized		Unrealized
	or Cost		Gains		Losses		Fair Value
	(In thousands)
December 31, 2019
Debt securities - available-for-sale:
United States government obligations and authorities	$	191,546	$	3,073	$	426	$	194,193
Obligations of states and political subdivisions	23,748		294		22		24,020
Corporate	268,182		10,252		132		278,302
International	29,169		593		12		29,750
	512,645		14,212		592		526,265

Debt securities - held-to-maturity:
United States government obligations and authorities	3,585		12		39		3,558
Corporate	697		20		—		717
International	55		1		—		56
	4,337		33		39		4,331
Total investments, excluding equity securities	$	516,982	$	14,245	$	631	$	530,596

Net Realized and Unrealized Gains and Losses

The Company calculates the gain or loss realized on the sale of investments by comparing the sales price (fair value) to the cost or amortized cost of the security sold. Net realized gains and losses on investments are determined in accordance with the specific identification method.

Net realized and unrealized gains (losses) recognized in earnings, by major investment category, consisted of the following:

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	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2020		2019		2020		2019
	(In thousands)
Gross realized and unrealized gains:
Debt securities	$	9,403	$	834	$	10,789	$	1,151
Equity securities	1,886		1,477		2,205		4,307
Total gross realized and unrealized gains	11,289		2,311		12,994		5,458

Gross realized and unrealized losses:
Debt securities	(2,339)		(120)		(2,487)		(520)
Equity securities	1,433		(236)		(2,949)		(682)
Total gross realized and unrealized losses	(906)		(356)		(5,436)		(1,202)
Net realized and unrealized gains (losses) on investments	$	10,383	$	1,955	$	7,558	$	4,256

The above line item, net realized and unrealized gains (losses) on investments, includes the following equity securities gains (losses) recognized in earnings:


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2020		2019		2020		2019
	(In thousands)
Net realized and unrealized gains (losses)	$	3,319	$	1,241	$	(744)	$	3,625
Less:
Net realized and unrealized gains (losses) on securities sold	53		(76)		(582)		250
Net realized and unrealized gains (losses) recognized during the period still held as of the end-of-period	$	3,266	$	1,317	$	(162)	$	3,375

Contractual Maturity

Actual maturities may differ from contractual maturities because issuers may have the right to call or pre-pay obligations.

Amortized cost and estimated fair value of debt securities, by contractual maturity, consisted of the following:

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	June 30, 2020
	Amortized
	Cost		Fair Value
Securities with Maturity Dates	(In thousands)
Debt securities, available-for-sale:
One year or less	$	36,092	$	36,331
Over one through five years	186,332		193,816
Over five through ten years	138,456		145,727
Over ten years	176,016		180,087







Total	$	536,896	$	555,961

Net Investment Income

Net investment income consisted of the following:

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	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2020		2019		2020		2019
	(In thousands)
Interest income	$	3,249	$	4,169	$	7,071	$	7,826
Dividends income	92		90		162		143
Net investment income	$	3,341	$	4,259	$	7,233	$	7,969

Aging of Gross Unrealized Losses

Gross unrealized losses and related fair values for debt securities, grouped by duration of time in a continuous unrealized loss position, consisted of the following:

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	Less than 12 months						12 months or longer						Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
					(In thousands)
June 30, 2020
Debt securities - available-for-sale:
United States government obligations and authorities	$	52,573	$	197	$	149	$	3	$	52,722	$	200
Obligations of states and political subdivisions	105		—		—		—		105		—
Corporate	25,597		585		—		—		25,597		585
International	4,962		60		206		1		5,168		61
	$	83,237	$	842	$	355	$	4	$	83,592	$	846


	Less than 12 months						12 months or longer						Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
					(In thousands)
December 31, 2019
Debt securities - available-for-sale:
United States government obligations and authorities	$	49,833	$	409	$	2,218	$	17	$	52,051	$	426
Obligations of states and political subdivisions	6,810		22		—		—		6,810		22
Corporate	15,872		94		7,694		38		23,566		132
International	3,856		10		179		2		4,035		12
	$	76,371	$	535	$	10,091	$	57	$	86,462	$	592

Debt securities, held-to-maturity:
United States government obligations and authorities	—		—		2,287		39		2,287		39
Corporate	—		—		—		—		—		—
International	—		—		—		—		—		—
	—		—		2,287		39		2,287		39
Total investments, excluding equity securities	$	76,371	$	535	$	12,378	$	96	$	88,749	$	631

As of June 30, 2020, the Company held a total of 83 debt securities that were in an unrealized loss position, of which 3 securities were in an unrealized loss position continuously for 12 months or more. As of December 31, 2019, the Company held a total of 203 debt securities that were in an unrealized loss position, of which 24 securities were in an unrealized loss position continuously for 12 months or more. The unrealized losses associated with these securities consisted primarily of losses related to corporate securities.

Collateral DepositsCash and cash equivalents and investments, the majority of which were debt securities, with fair values of $9.4 million and $11.2 million, were deposited with governmental authorities and into custodial bank accounts as required by law or contractual obligations as of June 30, 2020 and December 31, 2019, respectively.