
Carrying Value as of December 31, (In thousands, except for %)	2021		%		2020		%
Cash and invested assets
Fixed maturity securities	$	1,470,617	89.0	%	$	1,489,383	89.8	%
Equity securities	14,844		0.9		22,102		1.3
Policy loans	80,307		4.9		83,318		5.0
Real estate and other long-term investments	57,399		3.5		29,865		1.8

Cash and cash equivalents	27,294		1.7		34,131		2.1
Total cash and invested assets	$	1,650,461	100.0	%	$	1,658,799	100.0	%


December 31, 2021 (In thousands)	Amortized Cost		Gross Unrealized Gains	Gross Unrealized Losses	Fair Value
Fixed maturity securities:
Available-for-sale:
U.S. Treasury securities	$	9,515	1,097	1	10,611
U.S. Government-sponsored enterprises	3,463		996	—	4,459
States and political subdivisions	356,594		28,056	692	383,958
Corporate
Financial	213,652		22,477	172	235,957
Consumer	219,223		23,658	900	241,981
Energy	76,989		7,334	68	84,255
All Other	302,141		29,855	1,181	330,815

Residential mortgage-backed	117,755		16,046	6	133,795
Asset-backed	44,322		368	14	44,676
Foreign governments	101		9	—	110
Total fixed maturity securities	$	1,343,755	129,896	3,034	1,470,617


December 31, 2020 (In thousands)	Amortized Cost		Gross Unrealized Gains	Gross Unrealized Losses	Fair Value
Fixed maturity securities:
Available-for-sale:
U.S. Treasury securities	$	9,529	1,797	—	11,326
U.S. Government-sponsored enterprises	3,490		1,301	—	4,791
States and political subdivisions	377,462		32,751	548	409,665
Corporate
Financial	204,160		31,000	13	235,147
Consumer	196,648		30,116	245	226,519
Energy	81,223		8,174	536	88,861
All Other	284,209		42,554	82	326,681
Commercial mortgage-backed	225		—	4	221
Residential mortgage-backed	118,144		21,819	—	139,963
Asset-backed	46,295		278	482	46,091
Foreign governments	102		16	—	118
Total fixed maturity securities	$	1,321,487	169,806	1,910	1,489,383


Fair Value as of December 31, (In thousands)	2021		2020
Equity securities:
Stock mutual funds	$	3,571	3,174
Bond mutual funds	5,060		12,354
Common stock	990		1,143
Non-redeemable preferred stock	161		281
Non-redeemable preferred stock fund	5,062		5,150
Total equity securities	$	14,844	22,102

AFS fixed maturity 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 $0.4 million and $1.6 million on equity securities held for the years ended December 31, 2021 and 2020.

The Company monitors all AFS 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

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 fixed maturity security investments that have unrealized losses as of December 31, 2021 and 2020, the gross unrealized losses that have been in a continuous unrealized loss position for less than 12 months, gross unrealized losses that have been in a continuous unrealized loss position for 12 months or longer and fair value are as follows.


December 31, 2021	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 maturity securities:
Available-for-sale:

U.S. Treasury securities	$	72	1	2	—	—	—	72	1	2
States and political subdivisions	21,715		692	15	—	—	—	21,715	692	15
Corporate
Financial	8,059		86	15	1,227	86	1	9,286	172	16
Consumer	29,494		777	28	2,419	123	1	31,913	900	29
Energy	7,381		68	8	—	—	—	7,381	68	8
All Other	33,384		781	30	4,523	400	4	37,907	1,181	34

Residential mortgage-backed	1,084		6	6	—	—	—	1,084	6	6
Asset-backed	9,078		12	11	663	2	1	9,741	14	12
Total fixed maturity securities	$	110,267	2,423	115	8,832	611	7	119,099	3,034	122


December 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 maturity securities:
Available-for-sale:

States and political subdivisions	$	32,487	548	27	—	—	—	32,487	548	27
Corporate
Financial	1,308		13	1	—	—	—	1,308	13	1
Consumer	10,740		230	5	1,667	15	1	12,407	245	6
Energy	6,350		536	8	—	—	—	6,350	536	8
All Other	9,418		82	11	—	—	—	9,418	82	11
Commercial mortgage-backed	221		4	1	—	—	—	221	4	1
Residential mortgage-backed	83		—	1	—	—	—	83	—	1
Asset-backed	26,353		481	26	994	1	1	27,347	482	27
Total fixed maturity securities	$	86,960	1,894	80	2,661	16	2	89,621	1,910	82

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.

The unrealized losses on fixed maturity securities detailed in the previous tables are due to noncredit-related factors, including interest rate sensitivity and other market conditions, which have little bearing on the recoverability of our investments, hence they are not recognized as credit losses. The fair value is expected to recover as the securities approach maturity or if market yields for such investments decline.

The amortized cost and fair value of fixed maturity securities at December 31, 2021 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.


(In thousands)	Amortized Cost		Fair Value
Fixed maturity securities:
Due in one year or less	$	40,017	40,752
Due after one year through five years	119,116		128,507
Due after five years through ten years	200,823		218,200
Due after ten years	983,799		1,083,158
Total fixed maturity securities	$	1,343,755	1,470,617

The Company had no investments in any one entity which exceeded 10% of stockholders' equity at December 31, 2021 or 2020. In addition, there were no investments that were non-income producing for the years ended December 31, 2021 or 2020.


Years ended December 31, (In thousands)	2021		2020	2019
Gross investment income:
Fixed maturity securities	$	55,579	54,653	53,860
Equity securities	1,024		816	662
Policy loans	6,420		6,605	6,451
Other long-term investments	809		238	13
Other	54		97	374
Total investment income	63,886		62,409	61,360
Investment expenses	(2,391)		(2,212)	(1,829)
Net investment income	$	61,495	60,197	59,531


Years ended December 31, (In thousands)	2021		2020	2019
Fixed maturity securities:
Proceeds	$	8,238	20,537	66,900
Gross realized gains	189		239	2,538
Gross realized losses	1		351	973

Equity securities:
Proceeds	$	7,383	—	—
Gross realized gains	—		—	—
Gross realized losses	149		—	—


Years ended December 31, (In thousands)	2021		2020	2019
Investment related gains (losses):
Sales, calls and maturities:
Fixed maturity securities	$	243	(112)	1,927
Equity securities	(152)		—	—
Real estate	981		—	5,513
Property and equipment	13		9	(48)
Other long-term investments	1,892		9	—
Realized investment gains (losses)	2,977		(94)	7,392
Change in fair value of equity securities	376		1,596	962
Change in fair value of limited partnerships	7,452		—	—
Change in credit loss allowance	186		—	—



Realized loss on OTTI - real estate held for sale	—		—	(3,105)
Net investment related gains (losses)	$	10,991	1,502	5,249

The Company sold its former training facility near Austin, Texas during 2021 for a gross sale price of $3.8 million, resulting in a gain on the sale of $1.0 million. We had recorded an impairment loss of $3.1 million in 2019 on this facility in connection with reclassifying it as real estate held for sale. The facility was owned by Citizens and was held in Other Non-Insurance Enterprises.