Investment Securities Available for Sale

3 Months Ended

Mar. 31, 2016

Available-for-sale Securities [Abstract]

Investment Securities Available for Sale

INVESTMENT SECURITIES AVAILABLE FOR SALE

The components of investment securities available for sale at March 31, 2016 were as follows:

	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Marketable equity securities	$	37,947	$	18,822	$	(238	)	$	56,531
Mutual funds invested in fixed income securities	20,215		77		—			20,292
Marketable debt securities	75,120		757		—			75,877
Total investment securities available for sale	$	133,282	$	19,656	$	(238	)	$	152,700

The components of investment securities available for sale at December 31, 2015 were as follows:

	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Marketable equity securities	$	47,502	$	19,833	$	(62	)	$	67,273
Mutual funds invested in fixed income securities	20,126		—		(15		)	20,111
Marketable debt securities	94,540		52		—			94,592
Total investment securities available for sale	$	162,168	$	19,885	$	(77	)	$	181,976

The table below summarizes the maturity dates of marketable debt securities at March 31, 2016.

Investment Type:	Market Value		Under 1 Year		1 Year up to 5 Years		More than 5 Years
U.S. Government securities	$	22,730	$	—	$	22,730	$	—
Corporate securities	35,592		433		35,159		—
U.S. mortgage-backed securities	5,369		605		4,764		—
Commercial mortgage-backed securities	5,605		4,526		1,079		—
U.S. asset-backed securities	4,443		3,857		586		—
Index-linked U.S. bonds	2,138		—		2,138		—
Total marketable debt securities by maturity dates	$	75,877	$	9,421	$	66,456	$	—

The available-for-sale investment securities with continuous unrealized losses for less than 12 months and 12 months or greater and their related fair values were as follows:

	In loss position for
	Less than 12 months					12 months or more
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Total Fair Value		Total Unrealized Losses
March 31, 2016
Marketable equity securities	$	5,762	$	(238	)	$	—	$	—	$	5,762	$	(238	)
	$	5,762	$	(238	)	$	—	$	—	$	5,762	$	(238	)
December 31, 2015
Marketable equity securities	$	5,938	$	(62	)	$	—	$	—	$	5,938	$	(62	)
Mutual funds invested in fixed income securities	10,053		(15		)	—		—		10,053		(15		)
	$	15,991	$	(77	)	$	—	$	—	$	15,991	$	(77	)

Unrealized losses from fixed-income securities are primarily attributable to changes in interest rates. Unrealized losses

from equity and debt securities are due to market price movements. The Company believes the unrealized losses associated with the Company's equity securities will be recovered in the future.

Gross realized gains and losses on available-for-sale investment securities were as follows:

	Three Months Ended
	March 31,
	2016			2015
Gross realized gains on sales	$	759		$	13,564
Gross realized losses on sales	(192		)	(535		)
Gains on sale of investment securities available for sale	$	567		$	13,029
Gross realized losses on other-than-temporary impairments	$	(4,813	)	$	—

The Company recorded an “Other-than-temporary impairment” charge of $4,813 during the three months ended March 31, 2016. The largest component of this charge was $4,772 related to Morgans Hotel Group Co., a company where Vector's President and Chief Executive Officer also serves as Chairman of the Board of Directors.

Although management generally does not have the intent to sell any specific securities at the end of the period, in the ordinary course of managing the Company's investment securities portfolio, management may sell securities prior to their maturities for a variety of reasons, including diversification, credit quality, yield and liquidity requirements and the funding of claims and obligations to policyholders.

Proceeds from investment securities sales totaled $51,218 and $74,591 and proceeds from early redemptions by issuers totaled $2,517 and $2,541 in the three months ended March 31, 2016 and 2015, respectively, mainly from sales of Corporate securities and U.S. Government securities.