
Carrying Value (In thousands, except for %)	June 30, 2020									December 31, 2019
			Amount			%			Amount			%

Cash and invested assets:
Fixed maturity securities	$	1,417,317		89.2	%		$	1,377,959		90.2	%
Equity securities	20,698			1.3	%		16,033			1.1	%
Policy loans	84,171			5.3	%		82,005			5.4	%
Real estate and other long-term investments	12,023			0.8	%		2,956			0.2	%
Short-term investments	—			—	%		1,301			0.1	%
Cash and cash equivalents	52,375			3.4	%		46,205			3.0	%

Total cash and invested assets	$	1,586,584		100.0	%		$	1,526,459		100.0	%


	Amortized Cost		Gross Unrealized Gains	Gross Unrealized Losses	Fair Value
June 30, 2020
(In thousands)

Fixed maturity securities:
Available-for-sale:
U.S. Treasury securities	$	9,570	2,070	—	11,640
U.S. Government-sponsored enterprises	3,503		1,378	—	4,881
States and political subdivisions	427,529		28,965	675	455,819
Corporate:
Financial	193,818		20,018	555	213,281
Consumer	157,302		20,113	1,450	175,965
Energy	81,201		4,854	1,904	84,151
All Other	255,584		27,951	1,048	282,487
Commercial mortgage-backed	278		—	7	271
Residential mortgage-backed	118,250		23,467	—	141,717
Asset-backed	48,491		165	1,672	46,984
Foreign governments	102		19	—	121
Total fixed maturity securities	$	1,295,628	129,000	7,311	1,417,317


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

Fixed maturity securities:
Available-for-sale:
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

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 gains of $1.3 million and $0.2 million on equity securities held for the three and six months ended June 30, 2020 and gains of $0.2 million and $0.8 million for the same periods ended June 30, 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. An impairment loss of $3.1 million was recorded during the second quarter of 2019 related to our Citizens Academy training facility property located near Austin, Texas. It was determined during the quarter that the property met the held-for-sale criteria. As a result, this investment was reclassified from real estate held for investment to real estate held-for-sale. This resulted in an impairment loss of $3.1 million as the carrying amount of the property was written down to the net realizable value. This investment is considered a Level 3 asset in the fair value hierarchy and is reported within other non-insurance enterprises.

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.

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 June 30, 2020.


June 30, 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	$	15,281	640	19	$	525	35	2	$	15,806	675	21
Corporate:
Financial	24,114		555	25	—		—	—	24,114		555	25
Consumer	22,907		1,121	21	1,368		329	1	24,275		1,450	22
Energy	26,644		1,904	34	—		—	—	26,644		1,904	34
All Other	29,026		1,048	33	—		—	—	29,026		1,048	33
Commercial mortgage-backed	218		7	1	—		—	—	218		7	1
Residential mortgage-backed	86		—	1	—		—	—	86		—	1
Asset-backed	42,222		1,672	40	—		—	—	42,222		1,672	40

Total fixed maturities	$	160,498	6,947	174	$	1,893	364	3	$	162,391	7,311	177

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 as 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 cost 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. The auto industry has been able to issue debt during the quarter which has increased their liquidity significantly. 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 was 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 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 impairments ("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.


June 30, 2020	Amortized Cost		Fair Value
(In thousands)
Fixed maturity securities:
Due in one year or less	$	75,437	75,900
Due after one year through five years	104,138		110,410
Due after five years through ten years	224,482		243,865
Due after ten years	891,571		987,142
Total fixed maturity securities	$	1,295,628	1,417,317