Investments (Tables)

9 Months Ended

Sep. 30, 2023

Investments

Gross unrealized gains and losses on investments in securities

	As of September 30, 2023
	Cost or		Allowance for		Gross Unrealized				Estimated
	Amortized		Expected Credit						Fair
	Cost		Losses		Gains		Losses (3)		Value
U.S. Treasury securities	$	2,421	$	—	$	—	$	(164)	$	2,257
Obligations of states and political subdivisions		38,787		—		170		(3,810)		35,147
Residential mortgage-backed securities (1)		259,055		—		59		(34,717)		224,397
Commercial mortgage-backed securities		157,421		—		—		(18,253)		139,168
Other asset-backed securities		67,610		—		4		(3,945)		63,669
Corporate and other securities		592,058		(1,231)		758		(50,998)		540,587
Subtotal, fixed maturity securities		1,117,352		(1,231)		991		(111,887)		1,005,225
Equity securities (2)		216,589		—		23,041		(16,478)		223,152
Other invested assets (4)		129,739		—		—		—		129,739
Totals	$	1,463,680	$	(1,231)	$	24,032	$	(128,365)	$	1,358,116

	As of December 31, 2022
	Cost or		Allowance for		Gross Unrealized				Estimated
	Amortized		Expected Credit						Fair
	Cost		Losses		Gains		Losses (3)		Value
U.S. Treasury securities	$	1,825	$	—	$	—	$	(156)	$	1,669
Obligations of states and political subdivisions		57,319		—		282		(3,532)		54,069
Residential mortgage-backed securities (1)		259,878		—		385		(25,761)		234,502
Commercial mortgage-backed securities		156,303		—		107		(16,479)		139,931
Other asset-backed securities		74,160		—		—		(5,429)		68,731
Corporate and other securities		603,294		(678)		740		(52,103)		551,253
Subtotal, fixed maturity securities		1,152,779		(678)		1,514		(103,460)		1,050,155
Equity securities (2)		231,444		—		31,857		(23,146)		240,155
Other invested assets (4)		112,850		—		—		—		112,850
Totals	$	1,497,073	$	(678)	$	33,371	$	(126,606)	$	1,403,160

(1) Residential mortgage-backed securities consist primarily of obligations of U.S. Government agencies including collateralized mortgage obligations issued, guaranteed and/or insured by the following issuers: Government National Mortgage Association (GNMA), Federal Home Loan Mortgage Corporation (FHLMC), Federal National Mortgage Association (FNMA) and the Federal Home Loan Bank (FHLB).

(2) Equity securities include common stock, preferred stock, mutual funds and interests in mutual funds held to fund the Company’s executive deferred compensation plan.

(3) The Company’s investment portfolio included 1,119 and 1,195 securities in an unrealized loss position at September 30, 2023 and December 31, 2022, respectively.

(4) Other invested assets are accounted for under the equity method which approximated fair value.

Amortized cost and the estimated fair value of fixed maturity securities, by maturity

	As of September 30, 2023
	Amortized		Estimated
	Cost		Fair Value
Due in one year or less	$	25,248	$	24,765
Due after one year through five years		324,368		302,274
Due after five years through ten years		256,445		227,508
Due after ten years through twenty years		26,589		23,160
Due after twenty years		616		284
Asset-backed securities		484,086		427,234
Totals	$	1,117,352	$	1,005,225

Gross realized gains and losses on sales of investments

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Gross realized gains
Fixed maturity securities	$	436	$	302	$	1,275	$	1,295
Equity securities		1,869		2,029		5,235		9,443
Gross realized losses
Fixed maturity securities		(1,338)		(1,044)		(2,260)		(2,040)
Equity securities		(697)		(36)		(3,139)		(85)
Net realized gains on investments	$	270	$	1,251	$	1,111	$	8,613

Gross unrealized losses included in the Company's investment portfolio and the fair value of those securities

	As of September 30, 2023
	Less than 12 Months				12 Months or More				Total
	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
U.S. Treasury securities	$	594	$	4	$	1,663	$	160	$	2,257	$	164
Obligations of states and political subdivisions		3,728		172		27,752		3,638		31,480		3,810
Residential mortgage-backed securities		42,077		1,844		177,655		32,873		219,732		34,717
Commercial mortgage-backed securities		8,872		399		130,296		17,854		139,168		18,253
Other asset-backed securities		5,818		390		52,847		3,555		58,665		3,945
Corporate and other securities		112,458		4,376		359,076		46,622		471,534		50,998
Subtotal, fixed maturity securities		173,547		7,185		749,289		104,702		922,836		111,887
Equity securities		77,095		7,389		45,975		9,089		123,070		16,478
Total temporarily impaired securities	$	250,642	$	14,574	$	795,264	$	113,791	$	1,045,906	$	128,365

	As of December 31, 2022
	Less than 12 Months				12 Months or More				Total
	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
U.S. Treasury securities	$	1,669	$	156	$	—	$	—	$	1,669	$	156
Obligations of states and political subdivisions		34,178		2,504		3,072		1,028		37,250		3,532
Residential mortgage-backed securities		140,855		12,254		70,956		13,507		211,811		25,761
Commercial mortgage-backed securities		110,073		11,632		24,653		4,847		134,726		16,479
Other asset-backed securities		41,113		2,358		27,618		3,071		68,731		5,429
Corporate and other securities		386,401		28,048		131,046		24,055		517,447		52,103
Subtotal, fixed maturity securities		714,289		56,952		257,345		46,508		971,634		103,460
Equity securities		116,881		21,198		6,209		1,948		123,090		23,146
Total temporarily impaired securities	$	831,170	$	78,150	$	263,554	$	48,456	$	1,094,724	$	126,606

Reconciliation of beginning and ending balances of allowance for expected credit losses on fixed maturities classified as available for sale

	Three Months Ended September 30,				Nine Months Ended September 30,
		2023		2022	2023		2022
Beginning of period	$	1,635	$	691	$	678	$	691
Credit losses on securities with no previously recorded credit losses		195		193		912		193
Net increases (decreases) in allowance on previously impaired securities		(77)		98		245		98
Reduction due to sales		(522)		(84)		(604)		(84)
Writeoffs charged against allowance		—		—		—		—
Recoveries of amounts previously written off		—		—		—		—
Ending balance of period	$	1,231	$	898	$	1,231	$	898

Components of net investment income

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Interest on fixed maturity securities	$	12,101	$	10,074	$	35,805	$	28,925
Dividends on equity securities		1,562		1,442		4,656		4,198
Equity in earnings of other invested assets		1,425		379		3,705		2,644
Interest on other assets		69		23		134		38
Total investment income		15,157		11,918		44,300		35,805
Investment expenses		1,152		806		2,805		2,468
Net investment income	$	14,005	$	11,112	$	41,495	$	33,337

Fair value measurements for investments

	As of September 30, 2023
	Total		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
U.S. Treasury securities	$	2,257	$	—	$	2,257	$	—
Obligations of states and political subdivisions		35,147		—		35,147		—
Residential mortgage-backed securities		224,397		—		224,397		—
Commercial mortgage-backed securities		139,168		—		139,168		—
Other asset-backed securities		63,669		—		63,669		—
Corporate and other securities		540,587		—		540,587		—
Equity securities		187,498		185,412		—		2,086
Total investment securities	$	1,192,723	$	185,412	$	1,005,225	$	2,086

	As of December 31, 2022
	Total		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
U.S. Treasury securities	$	1,669	$	—	$	1,669	$	—
Obligations of states and political subdivisions		54,069		—		54,069		—
Residential mortgage-backed securities		234,502		—		234,502		—
Commercial mortgage-backed securities		139,931		—		139,931		—
Other asset-backed securities		68,731		—		68,731		—
Corporate and other securities		551,253		—		551,253		—
Equity securities		199,705		197,450		—		2,255
Total investment securities	$	1,249,860	$	197,450	$	1,050,155	$	2,255

Changes in the Company's Level 3 fair value securities

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	Level 3		Level 3		Level 3		Level 3
	Fair Value		Fair Value		Fair Value		Fair Value
	Securities		Securities		Securities		Securities
Balance at beginning of period	$	2,292	$	2,055	$	2,255	$	1,698
Net gains and losses included in earnings		—		—		—		—
Net gains included in other comprehensive income		—		—		—		—
Purchases		—		—		680		357
Sales		(206)		—		(849)		—
Transfers into Level 3		—		—		—		—
Transfers out of Level 3		—		—		—		—
Balance at end of period	$	2,086	$	2,055	$	2,086	$	2,055
Amount of total losses included in earnings attributable to the change in unrealized losses related to assets still held at end of period	$	—	$	—	$	—	$	—