Investments (Tables)
|
9 Months Ended |
Sep. 30, 2020 |
|---|
| Marketable Securities [Abstract] |
|
| Schedule of amortized cost and estimated fair value of securities |
The amortized cost and estimated fair value of investment securities as of September 30, 2020 and December 31, 2019, were as follows:
|
|
|
September 30, 2020 |
| |
|
|
Cost or Amortized Cost |
|
|
Gross Unrealized Gains |
|
|
Gross Unrealized Losses |
|
|
Fair Value |
| |
Fixed income securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
U.S. Government and agencies |
|
$ |
16,110 |
|
|
$ |
1,324 |
|
|
$ |
(1 |
) |
|
$ |
17,433 |
| |
Obligations of states and political subdivisions |
|
|
62,975 |
|
|
|
3,044 |
|
|
|
(150 |
) |
|
|
65,869 |
| |
Corporate securities |
|
|
120,955 |
|
|
|
8,137 |
|
|
|
(434 |
) |
|
|
128,658 |
| |
Residential mortgage-backed securities |
|
|
36,384 |
|
|
|
1,612 |
|
|
|
(4 |
) |
|
|
37,992 |
| |
Commercial mortgage-backed securities |
|
|
24,574 |
|
|
|
1,705 |
|
|
|
(29 |
) |
|
|
26,250 |
| |
Asset-backed securities |
|
|
45,906 |
|
|
|
509 |
|
|
|
(188 |
) |
|
|
46,227 |
| |
Total fixed income securities |
|
|
306,904 |
|
|
|
16,331 |
|
|
|
(806 |
) |
|
|
322,429 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Equity securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Basic materials |
|
|
1,259 |
|
|
|
289 |
|
|
|
(69 |
) |
|
|
1,479 |
| |
Communications |
|
|
4,304 |
|
|
|
2,563 |
|
|
|
(507 |
) |
|
|
6,360 |
| |
Consumer, cyclical |
|
|
5,903 |
|
|
|
3,139 |
|
|
|
(596 |
) |
|
|
8,446 |
| |
Consumer, non-cyclical |
|
|
10,456 |
|
|
|
6,092 |
|
|
|
(758 |
) |
|
|
15,790 |
| |
Energy |
|
|
1,931 |
|
|
|
18 |
|
|
|
(532 |
) |
|
|
1,417 |
| |
Financial |
|
|
5,879 |
|
|
|
520 |
|
|
|
(491 |
) |
|
|
5,908 |
| |
Industrial |
|
|
6,857 |
|
|
|
4,240 |
|
|
|
(132 |
) |
|
|
10,965 |
| |
Technology |
|
|
7,905 |
|
|
|
7,570 |
|
|
|
(90 |
) |
|
|
15,385 |
| |
Utility |
|
|
37 |
|
|
|
- |
|
|
|
(1 |
) |
|
|
36 |
| |
Total equity securities |
|
|
44,531 |
|
|
|
24,431 |
|
|
|
(3,176 |
) |
|
|
65,786 |
| |
Total investments |
|
$ |
351,435 |
|
|
$ |
40,762 |
|
|
$ |
(3,982 |
) |
|
$ |
388,215 |
|
|
|
|
December 31, 2019 |
| |
|
|
Cost or Amortized
Cost |
|
|
Gross Unrealized
Gains |
|
|
Gross Unrealized
Losses |
|
|
Fair Value |
| |
Fixed income securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
U.S. Government and agencies |
|
$ |
17,078 |
|
|
$ |
472 |
|
|
$ |
(4 |
) |
|
$ |
17,546 |
| |
Obligations of states and political subdivisions |
|
|
55,232 |
|
|
|
1,511 |
|
|
|
(91 |
) |
|
|
56,652 |
| |
Corporate securities |
|
|
109,457 |
|
|
|
3,772 |
|
|
|
(16 |
) |
|
|
113,213 |
| |
Residential mortgage-backed securities |
|
|
50,458 |
|
|
|
1,050 |
|
|
|
(22 |
) |
|
|
51,486 |
| |
Commercial mortgage-backed securities |
|
|
26,450 |
|
|
|
658 |
|
|
|
(51 |
) |
|
|
27,057 |
| |
Asset-backed securities |
|
|
30,029 |
|
|
|
132 |
|
|
|
(170 |
) |
|
|
29,991 |
| |
Total fixed income securities |
|
|
288,704 |
|
|
|
7,595 |
|
|
|
(354 |
) |
|
|
295,945 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Equity securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Basic materials |
|
|
1,062 |
|
|
|
155 |
|
|
|
(7 |
) |
|
|
1,210 |
| |
Communications |
|
|
4,823 |
|
|
|
2,342 |
|
|
|
(169 |
) |
|
|
6,996 |
| |
Consumer, cyclical |
|
|
5,477 |
|
|
|
4,207 |
|
|
|
(72 |
) |
|
|
9,612 |
| |
Consumer, non-cyclical |
|
|
7,483 |
|
|
|
5,255 |
|
|
|
(171 |
) |
|
|
12,567 |
| |
Energy |
|
|
2,817 |
|
|
|
124 |
|
|
|
(485 |
) |
|
|
2,456 |
| |
Financial |
|
|
5,059 |
|
|
|
905 |
|
|
|
(35 |
) |
|
|
5,929 |
| |
Industrial |
|
|
5,293 |
|
|
|
4,023 |
|
|
|
(17 |
) |
|
|
9,299 |
| |
Technology |
|
|
6,022 |
|
|
|
5,867 |
|
|
|
(26 |
) |
|
|
11,863 |
| |
Total equity securities |
|
|
38,036 |
|
|
|
22,878 |
|
|
|
(982 |
) |
|
|
59,932 |
| |
Total investments |
|
$ |
326,740 |
|
|
$ |
30,473 |
|
|
$ |
(1,336 |
) |
|
$ |
355,877 |
|
|
| Schedule of amortized cost and fair value of fixed income securities by contractual maturity |
The amortized cost and estimated fair value of fixed income securities by contractual maturity are shown below. Actual maturities could differ from contractual maturities because issuers of the securities may have the right to call or prepay certain obligations, which may or may not include call or prepayment penalties.
|
|
|
September 30, 2020 |
| |
|
|
Amortized Cost |
|
|
Fair Value |
| |
Due to mature: |
|
|
|
|
|
|
|
| |
One year or less |
|
$ |
16,413 |
|
|
$ |
16,659 |
| |
After one year through five years |
|
|
90,477 |
|
|
|
95,182 |
| |
After five years through ten years |
|
|
59,812 |
|
|
|
64,928 |
| |
After ten years |
|
|
33,338 |
|
|
|
35,191 |
| |
Mortgage / asset-backed securities |
|
|
106,864 |
|
|
|
110,469 |
| |
Total fixed income securities |
|
$ |
306,904 |
|
|
$ |
322,429 |
|
|
|
|
December 31, 2019 |
| |
|
|
Amortized Cost |
|
|
Fair Value |
| |
Due to mature: |
|
|
|
|
|
|
|
| |
One year or less |
|
$ |
19,567 |
|
|
$ |
19,663 |
| |
After one year through five years |
|
|
84,937 |
|
|
|
87,134 |
| |
After five years through ten years |
|
|
55,927 |
|
|
|
58,466 |
| |
After ten years |
|
|
21,336 |
|
|
|
22,148 |
| |
Mortgage / asset-backed securities |
|
|
106,937 |
|
|
|
108,534 |
| |
Total fixed income securities |
|
$ |
288,704 |
|
|
$ |
295,945 |
|
|
| Schedule of unrealized loss of securities |
The investment category and duration of the Company’s gross unrealized losses on fixed income securities and equity securities were as follows:
|
|
|
September 30, 2020 |
| |
|
|
Less than 12 Months |
|
|
Greater than 12 months |
|
|
Total |
| |
|
|
Fair
Value |
|
|
Unrealized
Losses |
|
|
Fair
Value |
|
|
Unrealized
Losses |
|
|
Fair
Value |
|
|
Unrealized
Losses |
| |
Fixed income securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
U.S. Government and agencies |
|
$ |
203 |
|
|
$ |
(1 |
) |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
203 |
|
|
$ |
(1 |
) | |
Obligations of states and political subdivisions |
|
|
4,578 |
|
|
|
(150 |
) |
|
|
- |
|
|
|
- |
|
|
|
4,578 |
|
|
|
(150 |
) | |
Corporate securities |
|
|
8,763 |
|
|
|
(420 |
) |
|
|
693 |
|
|
|
(14 |
) |
|
|
9,456 |
|
|
|
(434 |
) | |
Residential mortgage-backed securities |
|
|
397 |
|
|
|
(4 |
) |
|
|
- |
|
|
|
- |
|
|
|
397 |
|
|
|
(4 |
) | |
Commercial mortgage-backed securities |
|
|
1,511 |
|
|
|
(29 |
) |
|
|
- |
|
|
|
- |
|
|
|
1,511 |
|
|
|
(29 |
) | |
Asset-backed securities |
|
|
10,324 |
|
|
|
(80 |
) |
|
|
4,393 |
|
|
|
(108 |
) |
|
|
14,717 |
|
|
|
(188 |
) | |
Total fixed income securities |
|
|
25,776 |
|
|
|
(684 |
) |
|
|
5,086 |
|
|
|
(122 |
) |
|
|
30,862 |
|
|
|
(806 |
) | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Equity securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Basic materials |
|
|
345 |
|
|
|
(69 |
) |
|
|
- |
|
|
|
- |
|
|
|
345 |
|
|
|
(69 |
) | |
Communications |
|
|
1,272 |
|
|
|
(507 |
) |
|
|
- |
|
|
|
- |
|
|
|
1,272 |
|
|
|
(507 |
) | |
Consumer, cyclical |
|
|
1,184 |
|
|
|
(528 |
) |
|
|
211 |
|
|
|
(68 |
) |
|
|
1,395 |
|
|
|
(596 |
) | |
Consumer, non-cyclical |
|
|
2,456 |
|
|
|
(758 |
) |
|
|
- |
|
|
|
- |
|
|
|
2,456 |
|
|
|
(758 |
) | |
Energy |
|
|
47 |
|
|
|
(33 |
) |
|
|
442 |
|
|
|
(499 |
) |
|
|
489 |
|
|
|
(532 |
) | |
Financial |
|
|
2,750 |
|
|
|
(491 |
) |
|
|
- |
|
|
|
- |
|
|
|
2,750 |
|
|
|
(491 |
) | |
Industrial |
|
|
1,139 |
|
|
|
(132 |
) |
|
|
- |
|
|
|
- |
|
|
|
1,139 |
|
|
|
(132 |
) | |
Technology |
|
|
1,379 |
|
|
|
(90 |
) |
|
|
- |
|
|
|
- |
|
|
|
1,379 |
|
|
|
(90 |
) | |
Utility |
|
|
37 |
|
|
|
(1 |
) |
|
|
- |
|
|
|
- |
|
|
|
37 |
|
|
|
(1 |
) | |
Total equity securities |
|
|
10,609 |
|
|
|
(2,609 |
) |
|
|
653 |
|
|
|
(567 |
) |
|
|
11,262 |
|
|
|
(3,176 |
) | |
Total investments |
|
$ |
36,385 |
|
|
$ |
(3,293 |
) |
|
$ |
5,739 |
|
|
$ |
(689 |
) |
|
$ |
42,124 |
|
|
$ |
(3,982 |
) |
NI Holdings, Inc.
Notes to Unaudited Consolidated Financial Statements
(dollar amounts in thousands, except per share amounts)
|
|
|
December 31, 2019 |
| |
|
|
Less than 12 Months |
|
|
Greater than 12 months |
|
|
Total |
| |
|
|
Fair
Value |
|
|
Unrealized
Losses |
|
|
Fair
Value |
|
|
Unrealized
Losses |
|
|
Fair
Value |
|
|
Unrealized
Losses |
| |
Fixed income securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
U.S. Government and agencies |
|
$ |
494 |
|
|
$ |
(4 |
) |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
494 |
|
|
$ |
(4 |
) | |
Obligations of states and political subdivisions |
|
|
8,018 |
|
|
|
(91 |
) |
|
|
- |
|
|
|
- |
|
|
|
8,018 |
|
|
|
(91 |
) | |
Corporate securities |
|
|
2,066 |
|
|
|
(15 |
) |
|
|
650 |
|
|
|
(1 |
) |
|
|
2,716 |
|
|
|
(16 |
) | |
Residential mortgage-backed securities |
|
|
2,911 |
|
|
|
(9 |
) |
|
|
2,583 |
|
|
|
(13 |
) |
|
|
5,494 |
|
|
|
(22 |
) | |
Commercial mortgage-backed securities |
|
|
4,841 |
|
|
|
(35 |
) |
|
|
653 |
|
|
|
(16 |
) |
|
|
5,494 |
|
|
|
(51 |
) | |
Asset-backed securities |
|
|
8,511 |
|
|
|
(96 |
) |
|
|
7,686 |
|
|
|
(74 |
) |
|
|
16,197 |
|
|
|
(170 |
) | |
Total fixed income securities |
|
|
26,841 |
|
|
|
(250 |
) |
|
|
11,572 |
|
|
|
(104 |
) |
|
|
38,413 |
|
|
|
(354 |
) | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Equity securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Basic materials |
|
|
258 |
|
|
|
(7 |
) |
|
|
- |
|
|
|
- |
|
|
|
258 |
|
|
|
(7 |
) | |
Communications |
|
|
506 |
|
|
|
(- |
) |
|
|
658 |
|
|
|
(169 |
) |
|
|
1,164 |
|
|
|
(169 |
) | |
Consumer, cyclical |
|
|
595 |
|
|
|
(30 |
) |
|
|
146 |
|
|
|
(42 |
) |
|
|
741 |
|
|
|
(72 |
) | |
Consumer, non-cyclical |
|
|
1,033 |
|
|
|
(171 |
) |
|
|
- |
|
|
|
- |
|
|
|
1,033 |
|
|
|
(171 |
) | |
Energy |
|
|
823 |
|
|
|
(432 |
) |
|
|
6 |
|
|
|
(53 |
) |
|
|
829 |
|
|
|
(485 |
) | |
Financial |
|
|
393 |
|
|
|
(35 |
) |
|
|
- |
|
|
|
- |
|
|
|
393 |
|
|
|
(35 |
) | |
Industrial |
|
|
620 |
|
|
|
(17 |
) |
|
|
- |
|
|
|
- |
|
|
|
620 |
|
|
|
(17 |
) | |
Technology |
|
|
575 |
|
|
|
(26 |
) |
|
|
- |
|
|
|
- |
|
|
|
575 |
|
|
|
(26 |
) | |
Total equity securities |
|
|
4,803 |
|
|
|
(718 |
) |
|
|
810 |
|
|
|
(264 |
) |
|
|
5,613 |
|
|
|
(982 |
) | |
Total investments |
|
$ |
31,644 |
|
|
$ |
(968 |
) |
|
$ |
12,382 |
|
|
$ |
(368 |
) |
|
$ |
44,026 |
|
|
$ |
(1,336 |
) |
|
| Schedule of net investment income |
Net investment income consisted of the following:
|
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
| |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
| |
Fixed income securities |
|
$ |
2,065 |
|
|
$ |
2,196 |
|
|
$ |
6,655 |
|
|
$ |
6,167 |
| |
Equity securities |
|
|
278 |
|
|
|
247 |
|
|
|
903 |
|
|
|
704 |
| |
Real estate |
|
|
170 |
|
|
|
91 |
|
|
|
440 |
|
|
|
273 |
| |
Cash and cash equivalents |
|
|
1 |
|
|
|
15 |
|
|
|
27 |
|
|
|
50 |
| |
Total gross investment income |
|
|
2,514 |
|
|
|
2,549 |
|
|
|
8,025 |
|
|
|
7,194 |
| |
Investment expenses |
|
|
628 |
|
|
|
566 |
|
|
|
2,150 |
|
|
|
1,690 |
| |
Net investment income |
|
$ |
1,886 |
|
|
$ |
1,983 |
|
|
$ |
5,875 |
|
|
$ |
5,504 |
|
|
| Schedule of net realized gain (loss) on investments |
Net capital gain (loss) on investments consisted of the following:
|
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
| |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
| |
Gross realized gains: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Fixed income securities |
|
$ |
279 |
|
|
$ |
58 |
|
|
$ |
756 |
|
|
$ |
114 |
| |
Equity securities |
|
|
637 |
|
|
|
1,386 |
|
|
|
2,887 |
|
|
|
2,408 |
| |
Total gross realized gains |
|
|
916 |
|
|
|
1,444 |
|
|
|
3,643 |
|
|
|
2,522 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Gross realized losses, excluding other-than-temporary impairment losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Fixed income securities |
|
|
252 |
|
|
|
(46 |
) |
|
|
(70 |
) |
|
|
(132 |
) | |
Equity securities |
|
|
(532 |
) |
|
|
(392 |
) |
|
|
(1,552 |
) |
|
|
(1,052 |
) | |
Total gross realized losses, excluding other-than-temporary impairment losses |
|
|
(280 |
) |
|
|
(438 |
) |
|
|
(1,622 |
) |
|
|
(1,184 |
) | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net realized gain on investments |
|
|
636 |
|
|
|
1,006 |
|
|
|
2,021 |
|
|
|
1,338 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Change in net unrealized gain on equity securities |
|
|
4,466 |
|
|
|
(384 |
) |
|
|
(641 |
) |
|
|
8,253 |
| |
Net capital gain on investments |
|
$ |
5,102 |
|
|
$ |
622 |
|
|
$ |
1,380 |
|
|
$ |
9,591 |
|
|