Investments

6 Months Ended

Jun. 30, 2023

Investments

Investments

3. Investments

The following table summarizes investment income and realized gains and losses on investments during the periods presented.

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Investment income, net of investment expenses	$	1,278	$	313	$	2,103	$	578
Realized gains on investments		7		4		11		6
Realized losses on investments		(36)		(74)		(107)		(144)
Investment income and realized gains (losses), net of investment expenses	$	1,249	$	243	$	2,007	$	440

The following table summarizes the amortized cost, fair value, and unrealized gains and losses of investment securities.

	As of June 30, 2023
			Gross Unrealized
	Amortized Cost		Gains		Losses		Fair Value
U.S. Treasuries	$	28,407	$	1	$	(361)	$	28,047
Obligations of states, municipalities and political subdivisions		11,846		4		(1,178)		10,672
Corporate bonds		35,236		38		(2,879)		32,395
Residential and commercial mortgage-backed securities		17,607		16		(1,328)		16,295
Other loan-backed and structured securities		5,710		4		(393)		5,321
Total investment securities	$	98,806	$	63	$	(6,139)	$	92,730

	As of December 31, 2022
			Gross Unrealized
	Amortized Cost		Gains		Losses		Fair Value
U.S. Treasuries	$	35,637	$	5	$	(320)	$	35,322
Obligations of states, municipalities and political subdivisions		11,549		2		(1,326)		10,225
Corporate bonds		31,032		32		(2,837)		28,227
Residential and commercial mortgage-backed securities		12,790		11		(1,268)		11,533
Other loan-backed and structured securities		6,804		6		(476)		6,334
Total investment securities	$	97,812	$	56	$	(6,227)	$	91,641

The amortized cost and fair value of securities at June 30, 2023, by contractual maturity, are shown in the following table. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	As of June 30, 2023
Remaining Time to Maturity	Amortized Cost		Fair Value
Due in one year or less	$	25,920	$	25,802
Due after one year through five years		19,481		17,895
Due after five years through ten years		25,245		23,099
Due after ten years		4,843		4,318
Residential and commercial mortgage-backed securities		17,607		16,295
Other loan-backed and structured securities		5,710		5,321
Total	$	98,806	$	92,730

Other-Than-Temporary Impairment

We regularly review our individual investment securities for other-than-temporary impairment. We consider 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 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

- our 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 position, 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				Gross				Gross
	Unrealized		Fair		Unrealized		Fair		Unrealized		Fair
As of June 30, 2023	Loss		Value		Loss		Value		Loss		Value
U.S. Treasuries	$	(182)	$	25,500	$	(179)	$	2,232	$	(361)	$	27,732
Obligations of states, municipalities and political subdivisions		(79)		2,060		(1,099)		8,145		(1,178)		10,205
Corporate bonds		(530)		12,546		(2,349)		18,045		(2,879)		30,591
Residential and commercial mortgage-backed securities		(292)		8,365		(1,036)		7,319		(1,328)		15,684
Other loan-backed and structured securities		(109)		1,039		(284)		3,677		(393)		4,716
Total securities	$	(1,192)	$	49,510	$	(4,947)	$	39,418	$	(6,139)	$	88,928

	Less Than Twelve Months				Twelve Months or Greater				Total
	Gross				Gross				Gross
	Unrealized		Fair		Unrealized		Fair		Unrealized		Fair
As of December 31, 2022	Loss		Value		Loss		Value		Loss		Value
U.S. Treasuries	$	(127)	$	10,748	$	(193)	$	9,824	$	(320)	$	20,572
Obligations of states, municipalities and political subdivisions		(929)		6,258		(397)		3,504		(1,326)		9,762
Corporate bonds		(1,623)		16,531		(1,214)		10,328		(2,837)		26,859
Residential and commercial mortgage-backed securities		(687)		6,565		(581)		4,952		(1,268)		11,517
Other loan-backed and structured securities		(359)		4,633		(117)		1,094		(476)		5,727
Total securities	$	(3,725)	$	44,735	$	(2,502)	$	29,702	$	(6,227)	$	74,437

At June 30, 2023, and December 31, 2022, there were 470 and 483 securities, respectively, in an unrealized loss position. Of these securities, 380 had been in an unrealized loss position for 12 months or longer as of June 30, 2023.

We believe there were no fundamental issues such as credit losses or other factors with respect to any of our available-for-sale securities. The unrealized losses on investments in fixed-maturity securities were caused primarily by interest rate changes. It is expected that the securities would not be settled at a price less than par value of the investments. Because the declines in fair value are attributable to changes in interest rates or market conditions and not credit quality, and because we have the ability and intent to hold our available-for-sale investments until a market price recovery or maturity, we do not consider any of our investments to be other-than-temporarily impaired at June 30, 2023.