INVESTMENTS

The amortized cost, gross unrealized gains and losses, and estimated fair value of the Company's investments at December 31, 2012 and December 31, 2011 are summarized in the tables shown below:



(in thousands)	December 31, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Fixed maturities:
U.S. government, government agencies and authorities	$	23,954	$	962	$	1	$	24,915
Canadian government	3,822		—		40		3,782
States municipalities and political subdivisions	7,158		187		—		7,345
Mortgage-backed	4,850		193		—		5,043
Asset-backed securities and collateralized mortgage obligations	1,084		8		—		1,092
Corporate	36,990		391		24		37,357
Total fixed maturities	$	77,858	$	1,741	$	65	$	79,534
Equity investments	2,305		1,256		13		3,548
Total investments	$	80,163	$	2,997	$	78	$	83,082



(in thousands)	December 31, 2011
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Fixed maturities:
U.S. government, government agencies and authorities	$	45,316	$	1,498	$	—	$	46,814
Canadian government	3,788		57		55		3,790
States municipalities and political subdivisions	8,195		269		—		8,464
Mortgage-backed	5,958		222		3		6,177
Asset-backed securities and collateralized mortgage obligations	6,414		40		6		6,448
Corporate	21,673		397		112		21,958
Total fixed maturities	$	91,344	$	2,483	$	176	$	93,651
Equity investments	2,689		287		16		2,960
Total investments	$	94,033	$	2,770	$	192	$	96,611

The table below summarizes the Company's fixed maturities at December 31, 2012 by contractual maturity periods. Actual results may differ as issuers may have the right to call or prepay obligations, with or without penalties, prior to the contractual maturity of these obligations.



(in thousands)	December 31, 2012
	Amortized Cost		Estimated Fair Value
Due in one year or less	$	16,303	$	16,347
Due after one year through five years	55,031		56,267
Due after five years through ten years	1,850		2,067
Due after ten years	4,674		4,853
Total	$	77,858	$	79,534

Gross realized gains and losses on fixed maturities and equity instruments for the years ended December 31, 2012 and 2011 were as follows:



(in thousands)	Years ended December 31,
	2012			2011
Gross gains	$	1,654		$	1,107
Gross losses	(74		)	(12		)
Total	$	1,580		$	1,095

The following tables highlight the aggregate unrealized loss position, by investment type, of fixed maturities and equity investments in unrealized loss positions as of December 31, 2012 and 2011. The tables segregate the holdings based on the period of time the investments have been continuously held in unrealized loss positions.



(in thousands)	December 31, 2012
		Less than 12 Months				Greater than 12 Months				Total
		Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss
Fixed maturities:
U.S. government, government agencies and authorities		$	4,612	$	1	$	—	$	—	$	4,612	$	1
Canadian government		3,782		40		—		—		3,782		40
Mortgage-backed		—		—		267		—		267		—
Corporate		4,169		14		—		10		4,169		24
Total fixed maturities		$	12,563	$	55	$	267	$	10	$	12,830	$	65
Equity investments		8		1		38		12		46		13
Total		$	12,571	$	56	$	305	$	22	$	12,876	$	78



(in thousands)	December 31, 2011
	Less than 12 Months				Greater than 12 Months				Total
	Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss
Fixed maturities:
U.S. government, government agencies and authorities	$	7,500	$	—	$	—	$	—	$	7,500	$	—
Canadian government	1,105		55		—		—		1,105		55
Mortgage-backed	1,026		3		—		—		1,026		3
Asset-backed securities and collateralized mortgage obligations	2,252		6		—		—		2,252		6
Corporate	178		10		1,893		102		2,071		112
Total fixed maturities	$	12,061	$	74	$	1,893	$	102	$	13,954	$	176
Equity investments	224		16		—		—		224		16
Total	$	12,285	$	90	$	1,893	$	102	$	14,178	$	192

Fixed maturities and equity investments contain approximately 19 and 12 individual investments that were in unrealized loss positions as of December 31, 2012 and 2011, respectively.

The establishment of an other-than-temporary impairment on an investment requires a number of judgments and estimates. The Company performs a quarterly analysis of the individual investments to determine if declines in market value are other-than-temporary. The analysis includes some or all of the following procedures as deemed appropriate by the Company:


•	identifying all unrealized loss positions that have existed for at least six months;


•	identifying other circumstances which management believes may impact the recoverability of the unrealized loss positions;


•	obtaining a valuation analysis from third-party investment managers regarding the intrinsic value of these investments based on their knowledge and experience together with market-based valuation techniques;


•	reviewing the trading range of certain investments over the preceding calendar period;


•	assessing if declines in market value are other-than-temporary for debt instruments based on the investment grade credit ratings from third-party rating agencies;


•	assessing if declines in market value are other-than-temporary for any debt instrument with a non-investment grade credit rating based on the continuity of its debt service record;


•	determining the necessary provision for declines in market value that are considered other-than-temporary based on the analyses performed; and


•	assessing the company's ability and intent to hold these investments at least until the investment impairment is recovered.

The risks and uncertainties inherent in the assessment methodology used to determine declines in market value that are other-than-temporary include, but may not be limited to, the following:


•	the opinions of professional investment managers could be incorrect;


•	the past trading patterns of individual investments may not reflect future valuation trends;


•	the credit ratings assigned by independent credit rating agencies may be incorrect due to unforeseen or unknown facts related to a company's financial situation; and


•	the debt service pattern of non-investment grade instruments may not reflect future debt service capabilities and may not reflect a company's unknown underlying financial problems.

As a result of the above analysis performed by the Company to determine declines in market value that are other-than-temporary, there were write-downs for other-than-temporary impairment related to other investments of $0.5 million and zero for the years ended December 31, 2012 and 2011, respectively. There were no write-downs related to fixed maturities and equity investments for other-than-temporary impairments for the years ended December 31, 2012 and 2011. There were no other-than-temporary losses recognized in other comprehensive income (loss) for the years ended December 31, 2012 and 2011.

The Company has reviewed currently available information regarding investments with estimated fair values that are less than their carrying amounts and believes that these unrealized losses are not other-than-temporary and are primarily due to temporary market and sector-related factors rather than to issuer-specific factors. The Company does not intend to sell those investments, and it is not likely that it will be required to sell those investments before recovery of its amortized cost.

The Company does not have any exposure to subprime mortgage-backed investments.

Limited liability investments include investments in limited liability companies and a limited partnership that primarily invest in income-producing real estate. The Company's interests in these investments are not deemed minor and, therefore, are accounted for under the equity method of accounting. As of December 31, 2012 and December 31, 2011, the carrying value of limited liability investments totaled $2.3 million and $0.1 million, respectively. At December 31, 2012, the Company has unfunded commitments totaling $3.7 million to fund limited liability investments.

Other investments include mortgage loans and are reported at their unpaid principal balance. As of December 31, 2012 and December 31, 2011, the carrying value of other investments totaled $2.0 million and $0.5 million, respectively.

Net investment income for the years ended December 31, 2012 and 2011, respectively, is comprised as follows:



(in thousands)	Years ended December 31,
	2012			2011
Investment income
Interest from fixed maturities	$	2,262		$	2,979
Dividends	991			959
Loss from limited liability investments	(54		)	(3		)
Other	427			457
Gross investment income	$	3,626		$	4,392
Investment expenses	(447		)	(309		)
Net investment income	$	3,179		$	4,083