Investments

12 Months Ended

Dec. 31, 2014

Investments, Debt and Equity Securities [Abstract]

Investments

Note 3. Investments

The following table details the difference between cost or adjusted/amortized cost and estimated fair value, by major investment category, at December 31, 2014 and December 31, 2013:

	Cost or Adjusted / Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
December 31, 2014
U.S. government and agency securities	$	7,002	$	22	$	16	$	7,008
States, municipalities and political subdivisions		41,578		560		18		42,120
Special revenue		133,269		1,349		237		134,381
Industrial and miscellaneous		105,591		668		254		106,005
Redeemable preferred stocks		3,511		84		24		3,571
Total fixed maturities		290,951		2,683		549		293,085
Nonredeemable preferred stocks		11,494		237		53		11,678
Equity securities		19,061		1,525		1,039		19,547
Total equity securities		30,555		1,762		1,092		31,225
Mortgage loan participation		6,849		—		—		6,849
Total investments	$	328,355	$	4,445	$	1,641	$	331,159

	Cost or Adjusted / Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
December 31, 2013
U.S. government and agency securities	$	1,486	$	—	$	44	$	1,442
States, municipalities and political subdivisions		14,255		42		136		14,161
Special revenue		41,114		89		608		40,595
Industrial and miscellaneous		46,726		69		480		46,315
Redeemable preferred stocks		2,374		4		223		2,155
Total fixed maturities		105,955		204		1,491		104,668
Nonredeemable preferred stocks		5,283		6		331		4,958
Equity securities		20,163		370		45		20,488
Total equity securities		25,446		376		376		25,446
Mortgage loan participation		6,063		—		—		6,063
Total investments	$	137,464	$	580	$	1,867	$	136,177

The Company calculates the gain or loss realized on the sale of investments by comparing the sales price (fair value) to the cost or adjusted/amortized cost of the security sold. The Company determines the cost or adjusted/ amortized cost of the security sold using the specific-identification method. The following tables detail the Company’s realized gains (losses) by major investment category as of December 31, 2014 and 2013, respectively:

	2014					2013
	Gains (Losses)			Fair Value at Sale		Gains (Losses)			Fair Value at Sale
	(In thousands)
Year Ended December 31,
Fixed maturities	$	429		$	8,632	$	7		$	1,764
Equity securities		—			—		8			507
Total realized gains		429			8,632		15			2,271
Fixed maturities		(114	)		4,164		(44	)		1,331
Equity securities		(11	)		19,680		(294	)		3,603
Total realized losses		(125	)		23,844		(338	)		4,934
Net realized gain (losses)	$	304		$	32,476	$	(323	)	$	7,205

The table below summarizes the Company’s fixed maturities at December 31, 2014 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 those obligations.

	Cost or Amortized Cost		Percent of Total			Fair Value		Percent of Total
	(In thousands)					(In thousands)
December 31, 2014
Due in one year or less	$	13,709		5	%	$	13,712		5	%
Due after one year through five years		171,091		59	%		171,382		59	%
Due after five years through ten years		61,114		21	%		62,091		21	%
Due after ten years		45,037		15	%		45,900		15	%
Total	$	290,951		100	%	$	293,085		100	%
December 31, 2013
Due in one year or less	$	1,518		1	%	$	1,523		1	%
Due after one year through five years		62,242		59	%		62,059		59	%
Due after five years through ten years		33,620		32	%		32,921		32	%
Due after ten years		8,575		8	%		8,165		8	%
Total	$	105,955		100	%	$	104,668		100	%

The following table summarizes the Company’s net investment income by major investment category for the years ended December 31, 2014 and 2013, and the period from August 7, 2012 (inception) to December 31, 2012 respectively:

	Year Ended December 31, 2014		Year Ended December 31, 2013		Period From August 7, 2012 (inception) to December 31, 2012
	(In thousands)
Fixed maturities	$	3,100	$	914	$	12
Equity securities		1,159		456		—
Cash, cash equivalents and short-term investments		181		83		15
Other investments		243		93		5
Net investment income		4,683		1,546		32
Investment expenses		834		497		5
Net investment income, less investment expenses	$	3,849	$	1,049	$	27

During the Company’s quarterly evaluations of its securities for impairment, the Company determined that none of its investments in debt and equity securities that reflected an unrealized loss position were other-than-temporarily impaired. The issuers of the debt securities in which the Company invests continue to make interest payments on a timely basis and have not suffered any credit rating reductions. The Company does not intend to sell, nor is it likely that it would be required to sell, the debt securities before the Company recovers its amortized cost basis. All the issuers of the equity securities it owns had near-term prospects that indicated the Company could recover its cost basis, and the Company also has the ability and the intent to hold these securities until the value equals or exceeds its cost.

The following table presents an aging of the Company’s unrealized investment losses by investment class as of December 31, 2014 and December 31, 2013:

	Less Than Twelve Months						Twelve Months or More
	Number of Securities		Gross Unrealized Losses		Fair Value		Number of Securities		Gross Unrealized Losses		Fair Value
	(In thousands)
December 31, 2014
U.S. government and agency securities		11	$	15	$	2,451		1	$	1	$	109
States, municipalities and political subdivisions		14		15		7,661		1		3		177
Industrial and miscellaneous		98		204		51,156		10		50		1,975
Special revenue		71		214		36,643		6		23		1,592
Redeemable preferred stocks		18		9		854		8		15		355
Total fixed maturities		212	$	457	$	98,765		26	$	92	$	4,208
Nonredeemable preferred stocks		1		31		2,552		1		22		490
Equity securities		1		1,039		9,792		—		—		—
Total equity securities		2		1,070		12,344		1		22		490
Total		214	$	1,527	$	111,109		27	$	114	$	4,698
December 31, 2013
U.S. government and agency securities		6	$	44	$	1,335		—	$	—	$	—
States, municipalities and political subdivisions		17		116		8,294		2		20		341
Industrial and miscellaneous		89		413		30,962		6		67		888
Special revenue		59		582		27,256		3		26		502
Redeemable preferred stocks		27		223		1,844		—		—		—
Total fixed maturities		198	$	1,378	$	69,691		11	$	113	$	1,731
Nonredeemable preferred stocks		58		331		4,349		—		—		—
Equity securities		4		45		689		—		—		—
Total equity securities		62		376		5,038		—		—		—
Total		260	$	1,754	$	74,729		11	$	113	$	1,731