Investments |
Note 3 — Investments
Available-for-Sale Securities
The Company holds investments in fixed-maturity securities and
equity securities that are classified as available-for-sale. At
June 30, 2015 and December 31, 2014, the cost or
amortized cost, gross unrealized gains and losses, and estimated
fair value of the Company’s available-for-sale securities by
security type were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost or
Amortized
Cost |
|
|
Gross
Unrealized
Gain |
|
|
Gross
Unrealized
Loss |
|
|
Estimated
Fair
Value |
|
As of June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed-maturity securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury and U.S. government agencies
|
|
$ |
10,918 |
|
|
$ |
18 |
|
|
$ |
(9 |
) |
|
$ |
10,927 |
|
Corporate bonds
|
|
|
43,118 |
|
|
|
94 |
|
|
|
(807 |
) |
|
|
42,405 |
|
Asset-backed securities
|
|
|
4,162 |
|
|
|
4 |
|
|
|
(3 |
) |
|
|
4,163 |
|
Mortgage-backed securities
|
|
|
14,528 |
|
|
|
5 |
|
|
|
(95 |
) |
|
|
14,438 |
|
State, municipalities, and political subdivisions
|
|
|
82,489 |
|
|
|
705 |
|
|
|
(657 |
) |
|
|
82,537 |
|
Redeemable preferred stock
|
|
|
10,283 |
|
|
|
221 |
|
|
|
(37 |
) |
|
|
10,467 |
|
Other
|
|
|
497 |
|
|
|
1 |
|
|
|
— |
|
|
|
498 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
165,995 |
|
|
|
1,048 |
|
|
|
(1,608 |
) |
|
|
165,435 |
|
Equity securities
|
|
|
59,557 |
|
|
|
2,327 |
|
|
|
(1,553 |
) |
|
|
60,331 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total available-for-sale securities
|
|
$ |
225,552 |
|
|
$ |
3,375 |
|
|
$ |
(3,161 |
) |
|
$ |
225,766 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed-maturity securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury and U.S. government agencies
|
|
$ |
2,881 |
|
|
$ |
5 |
|
|
$ |
(8 |
) |
|
$ |
2,878 |
|
Corporate bonds
|
|
|
23,645 |
|
|
|
57 |
|
|
|
(430 |
) |
|
|
23,272 |
|
Asset-backed securities
|
|
|
697 |
|
|
|
— |
|
|
|
— |
|
|
|
697 |
|
Mortgage-backed securities
|
|
|
3,004 |
|
|
|
8 |
|
|
|
(3 |
) |
|
|
3,009 |
|
State, municipalities, and political subdivisions
|
|
|
56,336 |
|
|
|
1,205 |
|
|
|
(38 |
) |
|
|
57,503 |
|
Redeemable preferred stock
|
|
|
9,433 |
|
|
|
178 |
|
|
|
(54 |
) |
|
|
9,557 |
|
Other
|
|
|
167 |
|
|
|
1 |
|
|
|
— |
|
|
|
168 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
96,163 |
|
|
|
1,454 |
|
|
|
(533 |
) |
|
|
97,084 |
|
Equity securities
|
|
|
45,387 |
|
|
|
1,694 |
|
|
|
(1,531 |
) |
|
|
45,550 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total available-for-sale securities
|
|
$ |
141,550 |
|
|
$ |
3,148 |
|
|
$ |
(2,064 |
) |
|
$ |
142,634 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of June 30, 2015 and December 31, 2014, $112 and $113,
respectively, of U.S. Treasury securities relate to a statutory
deposit held in trust for the Treasurer of Alabama.
Expected maturities will differ from contractual maturities as
borrowers may have the right to call or prepay obligations with or
without penalties. The scheduled contractual maturities of
fixed-maturity securities as of June 30, 2015 and
December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
Amortized
Cost |
|
|
Estimated
Fair Value |
|
As of June 30, 2015
|
|
|
|
|
|
|
|
|
Available-for-sale
|
|
|
|
|
|
|
|
|
Due in one year or less
|
|
$ |
687 |
|
|
$ |
690 |
|
Due after one year through five years
|
|
|
49,439 |
|
|
|
49,605 |
|
Due after five years through ten years
|
|
|
80,498 |
|
|
|
79,836 |
|
Due after ten years
|
|
|
20,843 |
|
|
|
20,866 |
|
Mortgage-backed securities
|
|
|
14,528 |
|
|
|
14,438 |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
165,995 |
|
|
$ |
165,435 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortized
Cost |
|
|
Estimated
Fair Value |
|
As of December 31, 2014
|
|
|
|
|
|
|
|
|
Available-for-sale
|
|
|
|
|
|
|
|
|
Due in one year or less
|
|
$ |
715 |
|
|
$ |
721 |
|
Due after one year through five years
|
|
|
25,973 |
|
|
|
26,093 |
|
Due after five years through ten years
|
|
|
56,448 |
|
|
|
56,847 |
|
Due after ten years
|
|
|
10,023 |
|
|
|
10,414 |
|
Mortgage-backed securities
|
|
|
3,004 |
|
|
|
3,009 |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
96,163 |
|
|
$ |
97,084 |
|
|
|
|
|
|
|
|
|
|
Sales of Available-for-Sale Securities
Proceeds received, and the gross realized gains and losses from
sales of available-for-sale securities, for the three and six
months ended June 30, 2015 and 2014 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds |
|
|
Gross
Realized
Gains |
|
|
Gross
Realized
Losses |
|
Three months ended June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed-maturity securities
|
|
$ |
1,051 |
|
|
$ |
1 |
|
|
$ |
(24 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity securities
|
|
$ |
3,239 |
|
|
$ |
121 |
|
|
$ |
(172 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed-maturity securities
|
|
$ |
18,271 |
|
|
$ |
799 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity securities
|
|
$ |
3,166 |
|
|
$ |
433 |
|
|
$ |
(65 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed-maturity securities
|
|
$ |
3,285 |
|
|
$ |
59 |
|
|
$ |
(30 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity securities
|
|
$ |
7,994 |
|
|
$ |
329 |
|
|
$ |
(625 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed-maturity securities
|
|
$ |
19,962 |
|
|
$ |
864 |
|
|
$ |
(9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity securities
|
|
$ |
5,930 |
|
|
$ |
508 |
|
|
$ |
(192 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other-than-temporary Impairment
The Company regularly reviews individual impaired investment
securities for other-than-temporary impairment. The Company
considers various factors in determining whether each individual
security is other-than-temporarily impaired, including:
|
• |
|
the financial condition and near-term
prospects of the issuer, including any specific events that may
affect its operations or earnings; |
|
• |
|
the length of time and the extent to
which the market value of the security has been below its cost or
amortized cost; |
|
• |
|
general market conditions and
industry or sector specific factors; |
|
• |
|
nonpayment by the issuer of its
contractually obligated interest and principal payments; and |
|
• |
|
the Company’s intent and
ability to hold the investment for a period of time sufficient to
allow for the recovery of costs. |
Securities with gross unrealized loss positions at June 30,
2015 and December 31, 2014, aggregated by investment category
and length of time the individual securities have been in a
continuous loss position, are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less Than Twelve
Months |
|
|
Twelve Months or
Greater |
|
|
Total |
|
|
|
Gross
Unrealized
Loss |
|
|
Estimated
Fair
Value |
|
|
Gross
Unrealized
Loss |
|
|
Estimated
Fair
Value |
|
|
Gross
Unrealized
Loss |
|
|
Estimated
Fair
Value |
|
As of June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed-maturity securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury and U.S. government agencies
|
|
$ |
(9 |
) |
|
$ |
3,224 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(9 |
) |
|
$ |
3,224 |
|
Corporate bonds
|
|
|
(789 |
) |
|
|
33,325 |
|
|
|
(18 |
) |
|
|
982 |
|
|
|
(807 |
) |
|
|
34,307 |
|
Asset-backed securities
|
|
|
(3 |
) |
|
|
1,234 |
|
|
|
— |
|
|
|
— |
|
|
|
(3 |
) |
|
|
1,234 |
|
Mortgage-backed securities
|
|
|
(95 |
) |
|
|
10,365 |
|
|
|
— |
|
|
|
— |
|
|
|
(95 |
) |
|
|
10,365 |
|
State, municipalities, and political subdivisions
|
|
|
(609 |
) |
|
|
40,529 |
|
|
|
(48 |
) |
|
|
594 |
|
|
|
(657 |
) |
|
|
41,123 |
|
Redeemable preferred stock
|
|
|
(37 |
) |
|
|
2,981 |
|
|
|
— |
|
|
|
— |
|
|
|
(37 |
) |
|
|
2,981 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total fixed-maturity securities
|
|
|
(1,542 |
) |
|
|
91,658 |
|
|
|
(66 |
) |
|
|
1,576 |
|
|
|
(1,608 |
) |
|
|
93,234 |
|
Equity securities
|
|
|
(1,527 |
) |
|
|
24,714 |
|
|
|
(26 |
) |
|
|
834 |
|
|
|
(1,553 |
) |
|
|
25,548 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total available-for-sale securities
|
|
$ |
(3,069 |
) |
|
$ |
116,372 |
|
|
$ |
(92 |
) |
|
$ |
2,410 |
|
|
$ |
(3,161 |
) |
|
$ |
118,782 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At June 30, 2015, there were 222 securities in an unrealized
loss position. Of these securities, seven securities had been in an
unrealized loss position for 12 months or greater.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less Than Twelve
Months |
|
|
Twelve Months or
Greater |
|
|
Total |
|
|
|
Gross
Unrealized
Loss |
|
|
Estimated
Fair
Value |
|
|
Gross
Unrealized
Loss |
|
|
Estimated
Fair
Value |
|
|
Gross
Unrealized
Loss |
|
|
Estimated
Fair
Value |
|
As of December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed-maturity securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury and U.S. government agencies
|
|
$ |
(8 |
) |
|
$ |
2,485 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(8 |
) |
|
$ |
2,485 |
|
Corporate bonds
|
|
|
(428 |
) |
|
|
12,720 |
|
|
|
(2 |
) |
|
|
998 |
|
|
|
(430 |
) |
|
|
13,718 |
|
Asset-backed securities
|
|
|
— |
|
|
|
209 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
209 |
|
Mortgage-backed securities
|
|
|
(3 |
) |
|
|
1,018 |
|
|
|
— |
|
|
|
— |
|
|
|
(3 |
) |
|
|
1,018 |
|
State, municipalities, and political subdivisions
|
|
|
(19 |
) |
|
|
3,144 |
|
|
|
(19 |
) |
|
|
202 |
|
|
|
(38 |
) |
|
|
3,346 |
|
Redeemable preferred stock
|
|
|
(54 |
) |
|
|
2,586 |
|
|
|
— |
|
|
|
— |
|
|
|
(54 |
) |
|
|
2,586 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total fixed-maturity securities
|
|
|
(512 |
) |
|
|
22,162 |
|
|
|
(21 |
) |
|
|
1,200 |
|
|
|
(533 |
) |
|
|
23,362 |
|
Equity securities
|
|
|
(1,449 |
) |
|
|
18,848 |
|
|
|
(82 |
) |
|
|
4,619 |
|
|
|
(1,531 |
) |
|
|
23,467 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total available-for-sale securities
|
|
$ |
(1,961 |
) |
|
$ |
41,010 |
|
|
$ |
(103 |
) |
|
$ |
5,819 |
|
|
$ |
(2,064 |
) |
|
$ |
46,829 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2014, there were 94 securities in an
unrealized loss position. Of these securities, nine securities had
been in an unrealized loss position for 12 months or greater.
Based on the Company’s recent review, the unrealized losses
on investments in fixed-maturity securities were caused primarily
by expectation of interest rate changes. Because the decline in
fair value is attributable to changes in interest rates or market
conditions and not a decline in credit quality, and because the
Company has the ability and intent to hold these securities and it
is probable that the Company will not be required to sell these
securities until a market price recovery or maturity, the Company
does not consider any of its fixed-maturity securities to be
other-than-temporarily impaired at June 30, 2015 and
December 31, 2014.
In determining whether equity securities are other than temporarily
impaired, the Company considers its intent and ability to hold a
security for a period of time sufficient to allow for the recovery
of cost. In the three and six months ended June 30, 2015, the
Company determined that four and six equity securities,
respectively, were other-than-temporarily impaired after
considering the length of time each security had been in an
unrealized loss position, the extent of the decline and the near
term prospect for recovery. As a result, the Company recognized
impairment losses of $293 and $1,983, respectively, for the three
and six months ended June 30, 2015. There were no impairment
losses recorded in the three and six months ended June 30,
2014.
Limited Partnership Investments
The Company has interests in limited partnerships that are not
registered under the United States Securities Act of 1933, as
amended, the securities laws of any state or the securities laws of
any other jurisdictions. These partnerships are private equity
funds managed by general partners who make decisions with regard to
financial policies and operations. As such, the Company is not the
primary beneficiary and does not consolidate these partnerships.
The following table provides information related to the
Company’s investments in limited partnerships.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2015 |
|
|
December 31, 2014 |
|
|
|
Carrying
Value |
|
|
Unfunded
Balance |
|
|
(%)(a) |
|
|
Carrying
Value |
|
|
Unfunded
Balance |
|
|
(%)(a) |
|
Investment Strategy
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primarily in senior secured loans and, to a limited extent, in
other debt and equity securities of private U.S.
lower-middle-market companies. (b)(c)(e)
|
|
$ |
4,895 |
|
|
$ |
7,549 |
|
|
|
16.50 |
|
|
$ |
2,550 |
|
|
$ |
9,860 |
|
|
|
16.50 |
|
Value creation through active distressed debt investing primarily
in bank loans, public and private corporate bonds, asset-backed
securities, and equity securities received in connection with debt
restructuring. (b)(d)(e)
|
|
|
3,194 |
|
|
|
4,682 |
|
|
|
0.65 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Maximum long-term capital appreciation through long and short
positions in equity and/or debt securities of publicly traded U.S.
and non-U.S. issuers, derivative instruments and certain other
financial instruments. (f)
|
|
|
14,627 |
|
|
|
— |
|
|
|
66.78 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
High returns and long-term capital appreciation through investments
in the power, utility and energy industries, and in the
infrastructure sector. (b)(g)(h)
|
|
|
— |
|
|
|
10,000 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
22,716 |
|
|
$ |
22,231 |
|
|
|
|
|
|
$ |
2,550 |
|
|
$ |
9,860 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Represents the Company’s
percentage investment in the fund at the balance sheet date. |
(b) |
Except under certain circumstances,
withdrawals from the funds or any assignments are not permitted.
Distributions will be received when underlying investments of the
funds are liquidated. |
(c) |
Expected to have a 10-year term and
the capital commitment is expected to expire on September 3,
2019. |
(d) |
Expected to have a three-year term
from the end of the capital commitment period, which is
March 31, 2018. |
(e) |
At the fund manager’s
discretion, the term of the fund may be extended for up to two
additional one-year periods. |
(f) |
Withdrawal is permitted upon at least
45 days’ written notice to the general partner, provided that
the Company has been a limited partner for at least 12 months. |
(g) |
Expected to have a 10-year term and
the capital commitment is expected to expire on June 30,
2020. |
(h) |
With the consent of a super majority,
the term of the fund may be extended for up to three additional
one-year periods. |
The following is the aggregated summarized unaudited financial
information of limited partnerships, which in certain cases is
presented on a three-month lag due to the unavailability of
information at the Company’s respective balance sheet dates.
In applying the equity method of accounting, the Company uses the
most recently available financial information provided by the
general partner of each of these partnerships. The financial
statements of these limited partnerships are audited annually.
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2015 |
|
|
Six Months Ended
June 30, 2015 |
|
Operating results:
|
|
|
|
|
|
|
|
|
Total income (loss)
|
|
$ |
(4,577 |
) |
|
$ |
(4,838 |
) |
Total expenses
|
|
|
254 |
|
|
|
957 |
|
Net loss
|
|
$ |
(4,831 |
) |
|
$ |
(5,795 |
) |
|
|
|
|
|
June 30,
2015 |
|
|
December 31,
2014 |
|
Balance Sheet:
|
|
|
|
|
|
|
|
|
Total assets
|
|
$ |
170,659 |
|
|
$ |
15,940 |
|
Total liabilities
|
|
$ |
951 |
|
|
$ |
513 |
|
For the three and six months ended June 30, 2015, the Company
recognized net investment losses of $197 and $462, respectively,
for these investments. At June 30, 2015 and December 31,
2014, the Company’s cumulative contributed capital to the
partnerships totaled $23,269 and $2,640, respectively, and the
Company’s maximum exposure to loss aggregated $22,716 and
$2,550, respectively. There were no limited partnership investments
in the six months ended June 30, 2014.
Investment in Joint Venture
In March 2015, the Company contributed additional cash of $270 to
the joint venture organized in September 2014. The joint venture
intends to use the additional funds to acquire additional land for
development.
At June 30, 2015 and December 31, 2014, the
Company’s maximum exposure to loss relating to the joint
venture was $4,746 and $4,477, respectively, representing the
carrying value of the investment. At June 30, 2015 and
December 31, 2014, undistributed losses of $24 and $23,
respectively, from this equity method investment were included in
the Company’s consolidated retained income. The joint venture
partners received no distributions during 2015. The following
tables provide summarized unaudited financial results for the three
months and six months ended June 30, 2015 and the unaudited
financial positions of the joint venture at June 30, 2015 and
December 31, 2014:
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2015 |
|
|
Six Months Ended
June 30, 2015 |
|
Operating results:
|
|
|
|
|
|
|
|
|
Total revenues
|
|
$ |
— |
|
|
$ |
— |
|
Total expenses
|
|
|
— |
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
Net loss
|
|
$ |
— |
|
|
$ |
(1 |
) |
|
|
|
|
|
|
|
|
|
The Company’s share of net loss*
|
|
$ |
(1 |
) |
|
$ |
(1 |
) |
* |
Included in net investment income in
the Company’s consolidated statements of income. |
|
|
|
|
|
|
|
|
|
|
|
June 30,
2015 |
|
|
December 31,
2014 |
|
Balance Sheet:
|
|
|
|
|
|
|
|
|
Construction in progress – real estate
|
|
$ |
9,616 |
|
|
$ |
3,612 |
|
Cash
|
|
|
407 |
|
|
|
1,323 |
|
Other
|
|
|
55 |
|
|
|
40 |
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$ |
10,078 |
|
|
$ |
4,975 |
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$ |
982 |
|
|
$ |
— |
|
Construction loan
|
|
|
3,794 |
|
|
|
— |
|
Other liabilities
|
|
|
28 |
|
|
|
— |
|
Members’ capital
|
|
|
5,274 |
|
|
|
4,975 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and members’ capital
|
|
$ |
10,078 |
|
|
$ |
4,975 |
|
|
|
|
|
|
|
|
|
|
Investment in joint venture, at equity
|
|
$ |
4,746 |
|
|
$ |
4,477 |
|
Real Estate Investments
The Company’s real estate investments include one
Acquisition, Development and Construction Loan Arrangement
(“ADC Arrangement”) and the leasing of office and
retail space to tenants, wet and dry boat storage, a restaurant,
and fuel services with respect to marina clients and recreational
boaters. Real estate investments consist of the following as of
June 30, 2015 and December 31, 2014:
|
|
|
|
|
|
|
|
|
|
|
June 30,
2015 |
|
|
December 31,
2014 |
|
Land
|
|
$ |
11,476 |
|
|
$ |
11,476 |
|
Land improvements
|
|
|
1,449 |
|
|
|
1,425 |
|
Buildings
|
|
|
3,104 |
|
|
|
3,097 |
|
Other
|
|
|
1,386 |
|
|
|
1,359 |
|
|
|
|
|
|
|
|
|
|
Total, at cost
|
|
|
17,415 |
|
|
|
17,357 |
|
Less: accumulated depreciation and amortization
|
|
|
(1,253 |
) |
|
|
(1,107 |
) |
|
|
|
|
|
|
|
|
|
Real estate, net
|
|
|
16,162 |
|
|
|
16,250 |
|
ADC Arrangement classified as real estate investment
|
|
|
6,285 |
|
|
|
2,888 |
|
|
|
|
|
|
|
|
|
|
Real estate investments
|
|
$ |
22,447 |
|
|
$ |
19,138 |
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization expense related to real estate
investments was $90 and $100 for the three months ended
June 30, 2015 and 2014, respectively, and $193 and $198 for
the six months ended June 30, 2015 and 2014, respectively.
ADC Arrangement
During the first quarter of 2015, the Company amended the maximum
loan amount under the ADC Arrangement from $9,785 to $10,200. The
increased financing is intended for use in acquiring additional
land.
At June 30, 2015 and December 31, 2014, the
Company’s maximum exposure to loss relating to this variable
interest was $6,285, and $2,888, respectively, representing the
carrying value of the ADC Arrangement.
Real Estate Development in Progress
During the quarter ended June 30, 2015, the Company deposited
a total of $70 to secure the right to purchase land in Riverview,
Florida where a retail center will be constructed for lease or for
sale. The land acquisition and the development project will be
operated and managed through a joint venture in which the
Company’s subsidiary, Greenleaf Essence LLC, has a
controlling financial interest and of which it is the primary
beneficiary. As such, the joint venture is consolidated with the
Company’s operations.
Net Investment Income
Net investment income (loss), by source, is summarized as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, |
|
|
Six Months Ended
June 30, |
|
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed-maturity securities
|
|
$ |
1,051 |
|
|
$ |
1,055 |
|
|
$ |
1,877 |
|
|
$ |
2,052 |
|
Equity securities
|
|
|
869 |
|
|
|
484 |
|
|
|
1,796 |
|
|
|
741 |
|
Investment expense
|
|
|
(167 |
) |
|
|
(124 |
) |
|
|
(312 |
) |
|
|
(209 |
) |
Limited partnership investments
|
|
|
(197 |
) |
|
|
— |
|
|
|
(462 |
) |
|
|
— |
|
Real estate investments
|
|
|
62 |
|
|
|
(119 |
) |
|
|
(21 |
) |
|
|
(403 |
) |
Cash and cash equivalents
|
|
|
162 |
|
|
|
185 |
|
|
|
297 |
|
|
|
359 |
|
Other
|
|
|
15 |
|
|
|
— |
|
|
|
29 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
$ |
1,795 |
|
|
$ |
1,481 |
|
|
$ |
3,204 |
|
|
$ |
2,540 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|