INVESTMENTS

The amortized cost, gross unrealized gains and losses, and estimated fair value of the Company's investments in fixed maturities and equity investments at March 31, 2013 and December 31, 2012 are summarized in the tables shown below:



(in thousands)	March 31, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Fixed maturities:
U.S. government, government agencies and authorities	$	21,761	$	884	$	—	$	22,645
Canadian government	4,085		—		56		4,029
States municipalities and political subdivisions	7,150		170		—		7,320
Mortgage-backed	631		20		—		651
Asset-backed securities and collateralized mortgage obligations	157		3		—		160
Corporate	35,842		377		14		36,205
Total fixed maturities	$	69,626	$	1,454	$	70	$	71,010
Equity investments	2,024		1,296		16		3,304
Total fixed maturities and equity investments	$	71,650	$	2,750	$	86	$	74,314



(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 fixed maturities and equity investments	$	80,163	$	2,997	$	78	$	83,082

The table below summarizes the Company's fixed maturities at March 31, 2013 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)	March 31, 2013
	Amortized Cost		Estimated Fair Value
Due in one year or less	$	20,119	$	20,207
Due after one year through five years	47,781		48,934
Due after five years through ten years	1,132		1,257
Due after ten years	594		612
Total	$	69,626	$	71,010

The following tables highlight the aggregate unrealized loss position, by security type, of fixed maturities and equity investments in unrealized loss positions as of March 31, 2013 and December 31, 2012. The tables segregate the holdings based on the period of time the investments have been continuously held in unrealized loss positions.



(in thousands)									March 31, 2013
	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:
Canadian government	$	4,028	$	56	$	—	$	—	$	4,028	$	56
Mortgage-backed	256		—		—		—		256		—
Corporate	1,015		14		—		—		1,015		14
Total fixed maturities	$	5,299	$	70	$	—	$	—	$	5,299	$	70
Equity investments	18		5		3		11		21		16
Total	$	5,317	$	75	$	3	$	11	$	5,320	$	86



(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

Fixed maturities and equity investments contain approximately 7 and 19 individual investments that were in unrealized loss positions as of March 31, 2013 and December 31, 2012, 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 no write-downs related to fixed maturities and equity investments for other-than-temporary impairments for the three months ended March 31, 2013 and March 31, 2012.

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.

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 March 31, 2013 and December 31, 2012, the carrying value of limited liability investments totaled $1.5 million and $2.3 million, respectively. At March 31, 2013, the Company has unfunded commitments totaling $4.7 million to fund limited liability investments. Income from limited liability investments is recognized based on the Company's share of the earnings of the limited liability entities and is included in net investment income.

Other investments include mortgage loans and are reported at their unpaid principal balance. As of March 31, 2013 and December 31, 2012, the carrying value of other investments totaled $2.0 million and $2.0 million, respectively.

Gross realized gains and losses on fixed maturities, equity investments and limited liability investments for the three months ended March 31, 2013 and March 31, 2012 were as follows:



(in thousands)	Three months ended March 31,
	2013		2012
Gross realized gains	$	309	$	273
Gross realized losses	—		—
Total	$	309	$	273

Net investment income for the three months ended March 31, 2013 and March 31, 2012, respectively, is comprised as follows:



(in thousands)	Three months ended March 31,
	2013			2012
Investment income
Interest from fixed maturities	$	282		$	518
Dividends	253			242
Income (loss) from limited liability investments	50			(4		)
Other	92			166
Gross investment income	$	677		$	922
Investment expenses	(97		)	(96		)
Net investment income	$	580		$	826

At March 31, 2013, fixed maturities and short-term investments with an estimated fair value of $14.9 million were on deposit with state and provincial regulatory authorities. Also, from time to time, the Company pledges investments to third-parties to collateralize liabilities incurred under its policies of insurance. At March 31, 2013, the amount of such pledged securities was $23.1 million.