Investments (Tables)

9 Months Ended

Sep. 30, 2016

Summary of Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Value of Available-for-Sale Securities

At September 30, 2016 and December 31, 2015, 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		Gross Unrealized		Gross Unrealized			Estimated Fair
	Cost		Gain		Loss			Value
As of September 30, 2016
Fixed-maturity securities
U.S. Treasury and U.S. government agencies	$	430	$	10	$	—		$	440
Corporate bonds		77,432		1,007		(1,191	)		77,248
State, municipalities, and political subdivisions		77,040		2,921		(194	)		79,767
Exchange-traded debt		12,084		300		(68	)		12,316
Redeemable preferred stock		237		8		—			245
Total		167,223		4,246		(1,453	)		170,016
Equity securities		46,323		5,487		(350	)		51,460
Total available-for-sale securities	$	213,546	$	9,733	$	(1,803	)	$	221,476
As of December 31, 2015
Fixed-maturity securities
U.S. Treasury and U.S. government agencies	$	108	$	5	$	—		$	113
Corporate bonds		42,560		74		(4,815	)		37,819
State, municipalities, and political subdivisions		75,812		1,632		(120	)		77,324
Exchange-traded debt		9,817		177		(565	)		9,429
Redeemable preferred stock		317		8		(1	)		324
Total		128,614		1,896		(5,501	)		125,009
Equity securities		47,548		2,139		(1,450	)		48,237
Total available-for-sale securities	$	176,162	$	4,035	$	(6,951	)	$	173,246

Scheduled Contractual Maturities of Fixed-Maturity Securities

The scheduled contractual maturities of fixed-maturity securities as of September 30, 2016 and December 31, 2015 are as follows:

	Amortized Cost		Estimated Fair Value
As of September 30, 2016
Available-for-sale
Due in one year or less	$	4,624	$	4,642
Due after one year through five years		43,676		44,090
Due after five years through ten years		93,633		94,684
Due after ten years		25,290		26,600
	$	167,223	$	170,016
	Amortized Cost		Estimated Fair Value
As of December 31, 2015
Available-for-sale
Due in one year or less	$	3,282	$	3,292
Due after one year through five years		32,833		32,651
Due after five years through ten years		71,120		67,113
Due after ten years		21,379		21,953
	$	128,614	$	125,009

Summary of Proceeds Received and Gross Realized Gains and Losses from Sales of Available for Sale Securities

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 nine months ended September 30, 2016 and 2015 were as follows:

	Proceeds		Gross Realized Gains		Gross Realized Losses
Three months ended September 30, 2016
Fixed-maturity securities	$	3,891	$	196	$	—
Equity securities	$	5,000	$	491	$	(104	)
Three months ended September 30, 2015
Fixed-maturity securities	$	48,225	$	31	$	(436	)
Equity securities	$	6,117	$	515	$	(406	)
Nine months ended September 30, 2016
Fixed-maturity securities	$	37,415	$	579	$	—
Equity securities	$	14,155	$	850	$	(530	)
Nine months ended September 30, 2015
Fixed-maturity securities	$	51,510	$	90	$	(466	)
Equity securities	$	14,111	$	844	$	(1,031	)

Rollforward of Cumulative Credit Losses in Other-Than-Temporary Impairment Losses Recognized in Income from Available for Sale Fixed-Maturity Securities

The following table presents a rollforward of the cumulative credit losses in other-than-temporary impairment losses recognized in income from available for sale fixed-maturity securities:

	2016			2015
Balance at January 1	$	111		$	—
Additional credit impairments on previously impaired securities		293			—
Balance at March 31		404			—
Credit impaired security fully disposed of for which there was no prior intent or requirement to sell		(385	)		—
Reduction due to increase in expected cash flows recognized over the remaining life of the previously impaired security		(19	)		—
Balance at June 30		—			—
Credit impairments on impaired securities		180			109
Balance at September 30	$	180		$	109

Summary of Securities with Gross Unrealized Loss Positions Aggregated by Investment Category

Securities with gross unrealized loss positions at September 30, 2016 and December 31, 2015, 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			Estimated		Gross			Estimated		Gross			Estimated
	Unrealized			Fair		Unrealized			Fair		Unrealized			Fair
As of September 30, 2016	Loss			Value		Loss			Value		Loss			Value
Fixed-maturity securities
Corporate bonds	$	(356	)	$	22,352	$	(835	)	$	8,363	$	(1,191	)	$	30,715
State, municipalities, and political subdivisions		(136	)		5,614		(58	)		2,527		(194	)		8,141
Exchange-traded debt		(21	)		2,033		(47	)		1,953		(68	)		3,986
Total fixed-maturity securities		(513	)		29,999		(940	)		12,843		(1,453	)		42,842
Equity securities		(196	)		4,500		(154	)		3,573		(350	)		8,073
Total available-for-sale securities	$	(709	)	$	34,499	$	(1,094	)	$	16,416	$	(1,803	)	$	50,915

At September 30, 2016, there were 75 securities in an unrealized loss position. Of these securities, 23 securities had been in an unrealized loss position for 12 months or greater. The gross unrealized loss of corporate bonds in an unrealized loss position for twelve months or more included $351 of other-than-temporary impairment losses related to non-credit factors.

	Less Than Twelve Months					Twelve Months or Greater					Total
	Gross			Estimated		Gross			Estimated		Gross			Estimated
	Unrealized			Fair		Unrealized			Fair		Unrealized			Fair
As of December 31, 2015	Loss			Value		Loss			Value		Loss			Value
Fixed-maturity securities
Corporate bonds	$	(3,667	)	$	24,196	$	(1,148	)	$	3,278	$	(4,815	)	$	27,474
State, municipalities, and political subdivisions		(107	)		6,587		(13	)		184		(120	)		6,771
Exchange-traded debt		(565	)		5,559		—			—		(565	)		5,559
Redeemable preferred stock		(1	)		129		—			—		(1	)		129
Total fixed-maturity securities		(4,340	)		36,471		(1,161	)		3,462		(5,501	)		39,933
Equity securities		(1,350	)		15,748		(100	)		1,460		(1,450	)		17,208
Total available-for-sale securities	$	(5,690	)	$	52,219	$	(1,261	)	$	4,922	$	(6,951	)	$	57,141

Schedule of Company's Investments in Limited Partnerships

The following table provides information related to the Company’s investments in limited partnerships.

	September 30, 2016						December 31, 2015
	Carrying		Unfunded				Carrying		Unfunded
Investment Strategy	Value		Balance		(%)(a)		Value		Balance		(%)(a)
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)	$	6,226	$	6,428		16.50	$	4,774	$	7,888		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)		6,760		1,360		1.76		4,713		3,320		1.76
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)		11,100		—		66.60		11,689		—		65.79
High returns and long-term capital appreciation through investments in the power, utility and energy industries, and in the infrastructure sector. (b)(g)(h)		4,140		5,766		0.18		2,754		7,016		0.18
Total	$	28,226	$	13,554			$	23,930	$	18,224

(a) Represents the Company’s percentage investment in the fund at each balance sheet date.

(b) Except under certain circumstances, withdrawals from the funds or any assignments are not permitted. Distributions, except income from late admission of a new limited partner, 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.

(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.

Summary of Unaudited Financial Information and Unaudited Financial Position

The following tables provide FMKT Mel JV’s summarized unaudited financial results for the three and nine months ended September 30, 2016 and 2015 and its unaudited financial positions at September 30, 2016 and December 31, 2015:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2016			2015			2016			2015
Operating results:
Total revenues and gain	$	235		$	17		$	949		$	17
Total expenses		(318	)		(11	)		(801	)		(12	)
Net (loss) income	$	(83	)	$	6		$	148		$	5
The Company’s share of net (loss) income*	$	(75	)	$	5		$	153		$	4

* Included in net investment income in the Company’s consolidated statements of income.

	September 30,		December 31,
	2016		2015
Balance Sheet:
Construction in progress - real estate	$	333	$	277
Property and equipment, net		11,901		11,806
Cash		722		570
Accounts receivable		76		3
Other		963		1,008
Total assets	$	13,995	$	13,664
Accounts payable	$	163	$	125
Construction loan		8,153		8,063
Other liabilities		208		157
Members’ capital		5,471		5,319
Total liabilities and members’ capital	$	13,995	$	13,664
Investment in unconsolidated joint venture, at equity**	$	4,940	$	4,787

** Includes the 90% share of FMKT Mel JV’s operating results and the portion of profit split from the outparcel sale.

Summary of Real Estate Investment

Real estate investments consist of the following as of September 30, 2016 and December 31, 2015.

	September 30,			December 31,
	2016			2015
Land	$	14,734		$	13,134
Land improvements		4,577			1,505
Buildings		10,272			3,116
Tenant and leasehold improvements		581			—
Construction in progress*		2,965			2,906
Other		2,418			1,523
Total, at cost		35,547			22,184
Less: accumulated depreciation and amortization		(1,739	)		(1,430	)
Real estate, net		33,808			20,754
ADC Arrangement classified as real estate investment		—			10,200
Real estate investments	$	33,808		$	30,954

* The project is being developed by the Company’s consolidated variable interest entity.

Investment (Loss) Income Summarized

Net investment income (loss), by source, is summarized as follows:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2016			2015			2016			2015
Available-for-sale securities:
Fixed-maturity securities	$	1,170		$	1,120		$	3,400		$	2,994
Equity securities		811			914			2,546			2,710
Investment expense		(165	)		(199	)		(488	)		(511	)
Limited partnership investments		1,119			(2,400	)		54			(2,862	)
Real estate investments		(417	)		(135	)		(500	)		(155	)
(Loss) income from unconsolidated joint venture		(75	)		5			153			4
Cash and cash equivalents		285			161			755			461
Other		12			15			35			44
Net investment income (loss)	$	2,740		$	(519	)	$	5,955		$	2,685

Variable Interest Entity [Member]

Summary of Unaudited Financial Information and Unaudited Financial Position

The following table summarizes the assets and liabilities related to this variable interest entity which are included in the accompanying consolidated balance sheets.

	September 30,		December 31,
	2016		2015
Cash and cash equivalents	$	65	$	57
Construction in progress included in real estate investments	$	2,965	$	2,906
Accrued expenses	$	56	$	21
Other liabilities	$	26	$	—

Limited Partnership [Member]

Summary of Unaudited Financial Information and Unaudited Financial Position

The following is the aggregated summarized unaudited financial information of limited partnerships included in the investment strategy table above, 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 each general partner. The financial statements of these limited partnerships are audited annually.

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2016			2015			2016			2015
Operating results:
Total income (loss)	$	166,374		$	82		$	143,305		$	(4,756	)
Total expenses		(54,577	)		(386	)		(184,598	)		(1,343	)
Net income (loss)	$	111,797		$	(304	)	$	(41,293	)	$	(6,099	)

	September 30, 2016		December 31, 2015
Balance Sheet:
Total assets	$	2,902,014	$	288,351
Total liabilities	$	581,615	$	28,105