
Carrying Value (In thousands, except for %)	March 31, 2020									December 31, 2019
			Amount			%			Amount			%

Cash and invested assets:
Fixed maturity securities	$	1,356,244		90.5	%		$	1,377,959		90.2	%
Equity securities	19,369			1.3	%		16,033			1.1	%
Policy loans	81,329			5.4	%		82,005			5.4	%
Real estate and other long-term investments	5,751			0.4	%		2,956			0.2	%
Short-term investments	690			0.1	%		1,301			0.1	%
Cash and cash equivalents	34,944			2.3	%		46,205			3.0	%

Total cash and invested assets	$	1,498,327		100.0	%		$	1,526,459		100.0	%


	Amortized Cost		Gross Unrealized Gains	Gross Unrealized Losses	Fair Value
March 31, 2020
(In thousands)

Fixed maturity securities:
Available-for-sale:
U.S. Treasury securities	$	9,690	2,152	—	11,842
U.S. Government-sponsored enterprises	3,509		1,327	—	4,836
States and political subdivisions	478,619		25,682	1,006	503,295
Corporate:
Financial	192,453		7,288	7,607	192,134
Consumer	157,768		11,921	6,457	163,232
Energy	74,475		386	11,502	63,359
All Other	228,879		10,756	6,466	233,169
Commercial mortgage-backed	401		2	15	388
Residential mortgage-backed	118,205		21,886	1	140,090
Asset-backed	50,806		8	7,037	43,777
Foreign governments	102		20	—	122
Total fixed maturity securities	$	1,314,907	81,428	40,091	1,356,244


	Amortized Cost		Gross Unrealized Gains	Gross Unrealized Losses	Fair Value
December 31, 2019
(In thousands)

Fixed maturity securities:
Available-for-sale securities:
U.S. Treasury securities	$	9,709	1,638	—	11,347
U.S. Government-sponsored enterprises	3,516		1,015	—	4,531
States and political subdivisions	512,239		24,285	240	536,284
Corporate:
Financial	169,146		13,094	135	182,105
Consumer	148,575		12,591	464	160,702
Energy	74,315		4,765	115	78,965
All Other	212,714		16,022	420	228,316
Commercial mortgage-backed	1,105		—	5	1,100
Residential mortgage-backed	118,130		12,223	66	130,287
Asset-backed	44,302		11	110	44,203
Foreign governments	102		17	—	119
Total fixed maturity securities	$	1,293,853	85,661	1,555	1,377,959


Fair Value (In thousands)	March 31, 2020		December 31, 2019

Equity securities:
Stock mutual funds	$	2,498	3,274
Bond mutual funds	11,134		12,311
Common stock	1,040		134
Non-redeemable preferred stock	4,697		314
Total equity securities	$	19,369	16,033

Available-for-sale securities are reported in the consolidated financial statements at fair value. Equity securities are measured at fair value with the change in fair value recorded through net income. The Company recognized net realized losses of $1.1 million on equity securities held for the three months ended March 31, 2020 and gains of $0.6 million for the period ended March 31, 2019. In the first quarter of 2019, the Company sold its former corporate office in Austin, Texas for a gross sales price of $7.5 million, resulting in a gain on the sale of $5.5 million. The building was owned by CICA within our Life Insurance segment.

The Company monitors all fixed maturity securities on an on-going basis relative to changes in credit ratings, market prices, earnings trends and financial performance, in addition to specific region or industry reviews. The Company evaluates whether a credit impairment exists for fixed maturity securities by considering primarily the following factors: (a) changes in the financial condition of the security's underlying collateral; (b) whether the issuer is current on contractually obligated interest and principal payments; (c) changes in the financial condition, credit rating and near-term prospects of the issuer; and (d) the payment structure of the security. The Company's best estimate of expected future cash flows used to determine the credit loss amount is a quantitative and qualitative

process. Quantitative review includes information received from third-party sources such as financial statements, pricing and rating changes, liquidity and other statistical information. Qualitative factors include judgments related to business strategies, economic impacts on the issuer, overall judgment related to estimates and industry factors as well as the Company's intent to sell the security, or if it is more likely than not that the Company would be required to sell a security before recovery of its amortized cost.

The Company's best estimate of future cash flows involves assumptions including, but not limited to, various performance indicators, such as historical and projected default and recovery rates, credit ratings, and current delinquency rates. These assumptions require the use of significant management judgment and include the probability of issuer default and estimates regarding timing and amount of expected recoveries, which may include estimating the underlying collateral value. In addition, projections of expected future fixed maturity security cash flows may change based upon new information regarding the performance of the issuer. Any credit losses are presented as an allowance rather than as a write-down on AFS fixed maturity securities management does not intend to sell or believes that it is more likely than not we will be required to sell.

We adopted ASU 2016-13 using the prospective transition approach for fixed maturity securities for which other-than-temporary impairment had been recognized prior to January 1, 2020. As a result, the amortized cost remains the same before and after adoption. The effective interest rate on these fixed maturity securities was not changed. Amounts previously recognized in accumulated other comprehensive income as of January 1, 2020 relating to improvements in cash flow expected to be collected will be accreted into income over the remaining life of the asset. Recoveries of amounts previously written off relating to improvements in cash flows after January 1, 2020 will be recorded in earnings when received.

For the three months ended March 31, 2020, the Company recorded no credit valuation losses on fixed maturity securities and recognized no fixed maturity investment impairments for the three months ended March 31, 2019.

The following table presents the fair values and gross unrealized losses of fixed maturity securities that are not deemed to have credit losses, aggregated by investment category and length of time that individual securities have been in a continuous loss position at March 31, 2020.


March 31, 2020	Less than 12 months							Greater than 12 months					Total
(In thousands, except for # of securities)	Fair Value		Unrealized Losses	# of Securities	Fair Value		Unrealized Losses	# of Securities	Fair Value		Unrealized Losses	# of Securities

Fixed maturities:
Available-for-sale securities:

States and political subdivisions	$	41,267	971	35	$	768	35	4	$	42,035	1,006	39
Corporate:
Financial	82,957		7,607	102	—		—	—	82,957		7,607	102
Consumer	53,797		6,457	62	—		—	—	53,797		6,457	62
Energy	53,378		11,502	66	—		—	—	53,378		11,502	66
All Other	80,110		6,466	91	—		—	—	80,110		6,466	91
Commercial mortgage-backed	210		15	1	—		—	—	210		15	1
Residential mortgage-backed	23		1	2	87		—	1	110		1	3
Asset-backed	40,790		7,037	42	—		—	—	40,790		7,037	42

Total fixed maturities	$	352,532	40,056	401	$	855	35	5	$	353,387	40,091	406

The COVID-19 pandemic has severely impacted equity and credit markets, leading to net unrealized losses of $40.1 million at March 31, 2020. In each category of our fixed maturity securities described below, we do not intend

to sell our investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases. While the losses are currently unrealized, we continue to monitor all fixed maturity securities on an on-going basis and future information may become available which could result in an allowance being recorded.

States and political subdivisions. The Company's investments in states and political subdivisions were purchased at a premium, relative to their face amount, and the contractual cash flows are guaranteed by the respective state or political subdivision. Accordingly, it is expected that the securities will not be settled at a price less than the amortized costs bases of the Company's investments.

Corporate. We did not recognize credit losses on corporate securities with unrealized losses that were due to interest rate sensitivity and changes in credit spreads. We believe that fluctuations caused by movements in interest rates and credit spreads have little bearing on the recoverability of our investments. While we are experiencing unrealized losses across several corporate sectors, the energy and automobile sectors have been impacted the most and some issuers within these sectors have been downgraded to below investment grade. We have assessed our exposure in the energy sector and believe our investments have access to sufficient liquidity to meet their debt obligations. We believe that the auto industry will benefit from the recent Federal Reserve program which expanded its corporate bond-buying program to include a primary market facility that specifies that companies recently downgraded from investment grade to the first-tier of junk bonds will be eligible for this relief. The automobile sector is included in the Consumer subtotal above.

Asset-backed. Our asset-backed securities are primarily senior tranches of pools of aircraft leases to airlines around the world. If an airline were to go bankrupt and default on its lease, the trust would repossess the plane and relet or sell it. There have been no defaults on leases to date, however the leases contain a feature that allows lessors to defer their lease payments for three months, with the funds recaptured with interest when payments resume. Several of the lessors have requested this deferral. We do not expect to realize any losses for these securities and see the current valuations as a result of general market conditions. Currently all of these securities are rated at investment grade.

The following table presents the fair values and gross unrealized losses of fixed maturity securities that are not deemed to have other than temporary impairment ("OTTI"), aggregated by investment category and length of time that individual securities have been in a continuous loss position at December 31, 2019.


December 31, 2019	Less than 12 months							Greater than 12 months					Total
(In thousands, except for # of securities)	Fair Value		Unrealized Losses	# of Securities	Fair Value		Unrealized Losses	# of Securities	Fair Value		Unrealized Losses	# of Securities

Fixed maturities:
Available-for-sale securities:

States and political subdivisions	$	24,064	163	24	$	1,961	77	6	$	26,025	240	30
Corporate:
Financial	13,581		135	15	—		—	—	13,581		135	15
Consumer	22,671		464	20	—		—	—	22,671		464	20
Energy	4,208		34	4	898		81	2	5,106		115	6
All Other	22,437		285	30	2,771		135	3	25,208		420	33
Commercial mortgage-backed	1,100		5	2	—		—	—	1,100		5	2
Residential mortgage-backed	1,656		65	11	91		1	3	1,747		66	14
Asset-backed	36,039		110	27	—		—	—	36,039		110	27
Total fixed maturities	$	125,756	1,261	133	$	5,721	294	14	$	131,477	1,555	147

We have reviewed the securities in an unrealized loss position for the period ended December 31, 2019 and determined that no OTTI exists that has not been recognized based on our evaluation of the credit worthiness of the issuers and the fact that we do not intend to sell the investments nor is it likely that we will be required to sell the securities before recovery of their amortized costs bases which may be maturity.

The amortized cost and fair value of fixed maturity securities at March 31, 2020 by contractual maturity are shown in the table below. 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. Securities not due at a single maturity date have been reflected based upon final stated maturity.


March 31, 2020	Amortized Cost		Fair Value
(In thousands)
Fixed maturity securities:
Due in one year or less	$	109,032	109,456
Due after one year through five years	113,913		116,458
Due after five years through ten years	215,501		222,473
Due after ten years	876,461		907,857
Total fixed maturity securities	$	1,314,907	1,356,244