Note 3.

Investments

The following tables set forth the estimated fair value, gross unrealized gains, gross unrealized losses and cost or amortized cost of the Company’s investments in fixed maturities and equity securities, aggregated by type and industry, as of March 31, 2019 and December 31, 2018.

Fixed maturities were comprised of the following:

	March 31, 2019
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Cost or Amortized Cost
Fixed maturities:
Bonds:
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	26,356	$	82	$	723	$	26,997
Obligations of states and political subdivisions		8,491		415		1		8,077
Corporate securities:
Utilities and telecom		19,399		1,312		124		18,211
Financial services		52,583		1,164		1,136		52,555
Other business – diversified		44,777		822		1,381		45,336
Other consumer – diversified		65,351		479		2,279		67,151
Total corporate securities		182,110		3,777		4,920		183,253
Redeemable preferred stocks:
Other consumer – diversified		192		-		-		192
Total redeemable preferred stocks		192		-		-		192
Total fixed maturities	$	217,149	$	4,274	$	5,644	$	218,519

	December 31, 2018
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Cost or Amortized Cost
Fixed maturities:
Bonds:
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	27,422	$	36	$	1,061	$	28,447
Obligations of states and political subdivisions		8,364		347		72		8,089
Corporate securities:
Utilities and telecom		19,642		873		431		19,200
Financial services		49,477		747		2,942		51,672
Other business – diversified		49,196		226		2,844		51,814
Other consumer – diversified		56,093		84		4,501		60,510
Total corporate securities		174,408		1,930		10,718		183,196
Redeemable preferred stocks:
Other consumer – diversified		192		-		-		192
Total redeemable preferred stocks		192		-		-		192
Total fixed maturities	$	210,386	$	2,313	$	11,851	$	219,924

Bonds having an amortized cost of $9,477 and $10,452 and included in the tables above were on deposit with insurance regulatory authorities as of March 31, 2019 and December 31, 2018, respectively, in accordance with statutory requirements.

Equity securities were comprised of the following:

	March 31, 2019
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Cost or Amortized Cost
Equity securities:
Common and non-redeemable preferred stocks:
Financial services	$	4,755	$	375	$	-	$	4,380
Other business – diversified		301		254		-		47
Other consumer – diversified		20,736		16,103		-		4,633
Total equity securities	$	25,792	$	16,732	$	-	$	9,060

	December 31, 2018
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Cost or Amortized Cost
Equity securities:
Common and non-redeemable preferred stocks:
Utilities and telecom	$	1,686	$	722	$	-	$	964
Financial services		4,552		172		-		4,380
Other business – diversified		306		259		-		47
Other consumer – diversified		14,214		9,090		-		5,124
Total equity securities	$	20,758	$	10,243	$	-	$	10,515

The carrying value and amortized cost of the Company’s investments in fixed maturities at March 31, 2019 and December 31, 2018 by contractual maturity were as follows. Actual maturities may differ from contractual maturities because issuers may call or prepay obligations with or without call or prepayment penalties.

	March 31, 2019				December 31, 2018
	Carrying Value		Amortized Cost		Carrying Value		Amortized Cost
Due in one year or less	$	1,501	$	1,500	$	3,150	$	3,150
Due after one year through five years		15,529		15,274		19,787		19,699
Due after five years through ten years		122,693		123,685		127,617		133,863
Due after ten years		61,355		61,389		43,823		46,338
Asset backed securities		16,071		16,671		16,009		16,874
Totals	$	217,149	$	218,519	$	210,386	$	219,924

The following tables present the Company’s unrealized loss aging for securities by type and length of time the security was in a continuous unrealized loss position as of March 31, 2019 and December 31, 2018.

	March 31, 2019
	Less than 12 months				12 months or longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	-	$	-	$	20,998	$	723	$	20,998	$	723
Obligations of states and political subdivisions		-		-		485		1		485		1
Corporate securities		9,142		135		94,244		4,785		103,386		4,920
Total temporarily impaired securities	$	9,142	$	135	$	115,727	$	5,509	$	124,869	$	5,644

	December 31, 2018
	Less than 12 months				12 months or longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	-	$	-	$	24,786	$	1,061	$	24,786	$	1,061
Obligations of states and political subdivisions		-		-		3,980		72		3,980		72
Corporate securities		49,633		1,592		97,012		9,126		146,645		10,718
Total temporarily impaired securities	$	49,633	$	1,592	$	125,778	$	10,259	$	175,411	$	11,851

The evaluation for an other than temporary impairment is a quantitative and qualitative process, which is subject to risks and uncertainties in the determination of whether declines in the fair value of investments are other than temporary. Potential risks and uncertainties include, among other things, changes in general economic conditions, an issuer’s financial condition or near term recovery prospects and the effects of changes in interest rates. In evaluating a potential impairment, the Company considers, among other factors, management’s intent and ability to hold the securities until price recovery, the nature of the investment and the expectation of prospects for the issuer and its industry, the status of an issuer’s continued satisfaction of its obligations in accordance with their contractual terms, and management’s expectation as to the issuer’s ability and intent to continue to do so, as well as ratings actions that may affect the issuer’s credit status.

There were no other than temporary impairment (“OTTI”) charges recorded during the three month periods ended March 31, 2019 and 2018.

As of March 31, 2019 and December 31, 2018, there were ninety-two and one hundred forty securities, respectively, in an unrealized loss position which primarily included certain of the Company’s investments in fixed maturities within the financial services, other diversified business and other diversified consumer sectors. The decrease in the number and value of securities in an unrealized loss position during the three month period ended March 31, 2019 was primarily attributable to the appreciation of fixed maturity market prices due to the current interest rate environment. Other than securities for which an impairment charge has already been taken, the Company does not currently intend to sell nor does it expect to be required to sell any of the securities in an unrealized loss position. Based upon the Company’s expected continuation of receipt of contractually required principal and interest payments and its intent and ability to retain the securities until price recovery, as well as the Company’s evaluation of other relevant factors, including those described above, the Company has deemed these securities to be temporarily impaired as of March 31, 2019.

The following table is a summary of realized investment gains (losses) for the three month periods ended March 31, 2019 and 2018.

	2019
	Fixed Maturities		Equity Securities		Other Invested Assets		Total
Gains	$	272	$	1,113	$	-	$	1,385
Losses		-		-		-		-
Realized investment gains (losses), net	$	272	$	1,113	$	-	$	1,385

	2018
	Fixed Maturities		Equity Securities		Other Invested Assets		Total
Gains	$	370	$	-	$	-	$	370
Losses		-		-		-		-
Realized investment gains (losses), net	$	370	$	-	$	-	$	370

The following table presents the portion of unrealized gains (losses) related to equity securities still held for the three month periods ended March 31, 2019 and 2018.

	Three Months Ended March 31,
	2019		2018
Net gains (losses) recognized during the period on equity securities	$	7,602	$	(4,419	)
Less: Net gains (losses) recognized during the period on equity securities sold during the period		1,113		-
Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date	$	6,489	$	(4,419	)

Variable Interest Entities

The Company holds passive interests in a number of entities that are considered to be variable interest entities (“VIEs”) under GAAP guidance. The Company’s VIE interests principally consist of interests in limited partnerships and limited liability companies formed for the purpose of achieving diversified equity returns. The Company’s VIE interests, carried as a part of other invested assets, totaled $7,493 and $7,424 as of March 31, 2019 and December 31, 2018, respectively. The Company’s VIE interests, carried as a part of investment in unconsolidated trusts, totaled $1,238 as of March 31, 2019 and December 31, 2018.

The Company does not have power over the activities that most significantly impact the economic performance of these VIEs and thus is not the primary beneficiary. Therefore, the Company has not consolidated these VIEs. The Company’s involvement with each VIE is limited to its direct ownership interest in the VIE. The Company has no arrangements with any of the VIEs to provide other financial support to or on behalf of the VIE. The Company’s maximum loss exposure relative to these investments was limited to the carrying value of the Company’s investment in the VIEs, which amount to $8,731 and $8,662, as of March 31, 2019 and December 31, 2018, respectively. As of March 31, 2019 and December 31, 2018, the Company has outstanding commitments totaling $4,900 and $0, respectively, whereby the Company is committed to fund these investments and may be called by the partnership during the commitment period to fund the purchase of new investments and partnership expenses.