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Investments
 9 Months Ended
Sep. 30, 2018
Investments [Abstract]  
Investments
Investments
Fixed Maturity Securities
We evaluate our available-for-sale fixed maturity securities for other-than-temporary declines based on qualitative and quantitative factors. There were no individually significant other-than-temporary impairment losses on investments during the three and nine months ended September 30, 2018 and 2017. We continue to review our investment portfolios under our impairment review policy. Given the inherent uncertainty of changes in market conditions and the significant judgments involved, there is a continuing risk that further declines in fair value may occur and additional material other-than-temporary impairment losses on investments may be recorded in future periods.
A summary of current and long-term fixed maturity securities, available-for-sale, at September 30, 2018 and December 31, 2017 is as follows:
 
 
 
 
 
 
 
 
 
Non-Credit
Component of
Other-Than-
Temporary
Impairments
Recognized in
Accumulated
Other
Comprehensive
Loss
 
Cost or
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross Unrealized Losses
 
Estimated
Fair Value
 
 
 
 
Less than
12 Months
 
12 Months
or Greater
 
 
September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
Fixed maturity securities:
 
 
 
 
 
 
 
 
 
 
 
United States Government securities
$
634

 
$
1

 
$
(4
)
 
$
(6
)
 
$
625

 
$
—

Government sponsored securities
103

 
—

 
(1
)
 
(1
)
 
101

 
—

States, municipalities and political subdivisions, tax-exempt
4,944

 
66

 
(31
)
 
(15
)
 
4,964

 
—

Corporate securities
8,340

 
62

 
(98
)
 
(48
)
 
8,256

 
(2
)
Residential mortgage-backed securities
2,742

 
26

 
(23
)
 
(52
)
 
2,693

 
—

Commercial mortgage-backed securities
68

 
—

 
—

 
(2
)
 
66

 
—

Other securities
1,174

 
15

 
(3
)
 
(5
)
 
1,181

 
—

Total fixed maturity securities
$
18,005

 
$
170

 
$
(160
)
 
$
(129
)
 
$
17,886

 
$
(2
)
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
Fixed maturity securities:
 
 
 
 
 
 
 
 
 
 
 
United States Government securities
$
649

 
$
2

 
$
(5
)
 
$
(1
)
 
$
645

 
$
—

Government sponsored securities
90

 
—

 
—

 
—

 
90

 
—

States, municipalities and political subdivisions, tax-exempt
5,854

 
193

 
(5
)
 
(7
)
 
6,035

 
—

Corporate securities
7,363

 
166

 
(30
)
 
(13
)
 
7,486

 
—

Residential mortgage-backed securities
2,520

 
39

 
(8
)
 
(12
)
 
2,539

 
—

Commercial mortgage-backed securities
80

 
1

 
—

 
(2
)
 
79

 
—

Other securities
1,054

 
14

 
(3
)
 
(1
)
 
1,064

 
—

Total fixed maturity securities
$
17,610

 
$
415

 
$
(51
)
 
$
(36
)
 
$
17,938

 
$
—



For fixed maturity securities in an unrealized loss position at September 30, 2018 and December 31, 2017, the following table summarizes the aggregate fair values and gross unrealized losses by length of time those securities have continuously been in an unrealized loss position: 
 
Less than 12 Months
 
12 Months or Greater
(Securities are whole amounts)
Number of
Securities
 
Estimated
Fair Value
 
Gross
Unrealized
Loss
 
Number of
Securities
 
Estimated
Fair Value
 
Gross
Unrealized
Loss
September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
Fixed maturity securities:
 
 
 
 
 
 
 
 
 
 
 
United States Government securities
45

 
$
374

 
$
(4
)
 
20

 
$
206

 
$
(6
)
Government sponsored securities
27

 
66

 
(1
)
 
17

 
17

 
(1
)
States, municipalities and political subdivisions, tax-exempt
997

 
1,960

 
(31
)
 
260

 
383

 
(15
)
Corporate securities
2,243

 
4,642

 
(98
)
 
593

 
936

 
(48
)
Residential mortgage-backed securities
677

 
1,144

 
(23
)
 
531

 
1,092

 
(52
)
Commercial mortgage-backed securities
17

 
31

 
—

 
10

 
25

 
(2
)
Other securities
192

 
575

 
(3
)
 
68

 
201

 
(5
)
Total fixed maturity securities
4,198

 
$
8,792

 
$
(160
)
 
1,499

 
$
2,860

 
$
(129
)
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
Fixed maturity securities:
 
 
 
 
 
 
 
 
 
 
 
United States Government securities
36

 
$
450

 
$
(5
)
 
11

 
$
56

 
$
(1
)
Government sponsored securities
12

 
16

 
—

 
16

 
15

 
—

States, municipalities and political subdivisions, tax-exempt
414

 
641

 
(5
)
 
189

 
356

 
(7
)
Corporate securities
1,081

 
2,200

 
(30
)
 
279

 
330

 
(13
)
Residential mortgage-backed securities
445

 
1,050

 
(8
)
 
287

 
478

 
(12
)
Commercial mortgage-backed securities
7

 
14

 
—

 
12

 
27

 
(2
)
Other securities
132

 
406

 
(3
)
 
20

 
36

 
(1
)
Total fixed maturity securities
2,127

 
$
4,777

 
$
(51
)
 
814

 
$
1,298

 
$
(36
)

The amortized cost and fair value of fixed maturity securities at September 30, 2018, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations.
 
Amortized
Cost
 
Estimated
Fair Value
Due in one year or less
$
559

 
$
562

Due after one year through five years
5,401

 
5,376

Due after five years through ten years
5,252

 
5,211

Due after ten years
3,983

 
3,978

Mortgage-backed securities
2,810

 
2,759

Total fixed maturity securities
$
18,005

 
$
17,886


Proceeds from sales, maturities, calls or redemptions of fixed maturity securities and the related gross realized gains and gross realized losses for the three and nine months ended September 30, 2018 and 2017 are as follows:
 
Three Months Ended 
 September 30
 
Nine Months Ended 
 September 30
 
2018
 
2017
 
2018
 
2017
Proceeds
$
1,532

 
$
2,937

 
$
6,413

 
$
9,056

Gross realized gains
12

 
47

 
73

 
134

Gross realized losses
(16
)
 
(9
)
 
(85
)
 
(49
)

In the ordinary course of business, we may sell securities at a loss for a number of reasons, including, but not limited to: (i) changes in the investment environment; (ii) expectation that the fair value could deteriorate further; (iii) desire to reduce exposure to an issuer or an industry; (iv) changes in credit quality; or (v) changes in expected cash flow.
All securities sold resulting in investment gains and losses are recorded on the trade date. Realized gains and losses are determined on the basis of the cost or amortized cost of the specific securities sold.
Equity Securities
A summary of current and long-term equity securities at September 30, 2018 and December 31, 2017 is as follows:
 
September 30, 2018
 
December 31, 2017
Equity securities:
 
 
 
Exchange traded funds
$
487

 
$
1,300

Fixed maturity mutual funds
611

 
791

Common equity securities
890

 
1,254

Private equity securities
318

 
287

Total
$
2,306

 
$
3,632


The gains and losses related to equity securities for the three and nine months ended September 30, 2018 are as follows:
 
Three Months Ended September 30, 2018
 
Nine Months Ended September 30, 2018
Net realized gains (losses) recognized on equity securities
$
27

 
$
(33
)
Less: Net realized gains recognized on equity securities sold during the period
(11
)
 
(208
)
Unrealized gains (losses) recognized on equity securities still held at September 30, 2018
$
16

 
$
(241
)

The gross realized gains recognized on sales of equity securities for the three and nine months ended September 30, 2017 were $96 and $120, respectively. The gross realized losses recognized on sales of equity securities for the three and nine months ended September 30, 2017 were $8 and $13, respectively.
Securities Lending Programs
We participate in securities lending programs whereby marketable securities in our investment portfolio are transferred to independent brokers or dealers in exchange for cash and securities collateral. The fair value of the collateral received at the time of the transactions amounted to $741 and $454 at September 30, 2018 and December 31, 2017, respectively. The value of the collateral represented 103% and 104% of the market value of the securities on loan at September 30, 2018 and December 31, 2017, respectively. We recognize the collateral as an asset under the caption “Securities lending collateral” on our consolidated balance sheets and we recognize a corresponding liability for the obligation to return the collateral to the borrower under the caption “Securities lending payable.” The securities on loan are reported in the applicable investment category on our consolidated balance sheets.
The remaining contractual maturity of our securities lending agreements at September 30, 2018 is as follows:
 
Overnight and Continuous
Securities lending transactions
 
United States Government securities
$
131

Corporate securities
456

Equity securities
154

Total
$
741


The market value of loaned securities and that of the collateral pledged can fluctuate in non-synchronized fashions. To the extent the loaned securities' value appreciates faster or depreciates slower than the value of the collateral pledged, we are exposed to the risk of the shortfall. As a primary mitigating mechanism, the loaned securities and collateral pledged are marked to market on a daily basis and the shortfall, if any, is collected accordingly. Secondarily, the minimum collateral level is set at 102% of the value of the loaned securities, which provides a cushion before any shortfall arises. The investment of the cash collateral is subject to market risk, which is managed by limiting the investments to higher quality and shorter duration instruments.