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, 2020 and December 31, 2019.

Fixed maturities were comprised of the following:

	March 31, 2020
	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	$	20,723	$	1,529	$	61	$	19,255
Obligations of states and political subdivisions		11,009		406		10		10,613
Corporate securities:
Utilities and telecom		26,797		2,328		303		24,772
Financial services		65,655		1,899		2,342		66,098
Other business – diversified		36,186		1,512		3,797		38,471
Other consumer – diversified		53,076		2,517		1,626		52,185
Total corporate securities		181,714		8,256		8,068		181,526
Redeemable preferred stocks:
Other consumer – diversified		250		58		—		192
Total redeemable preferred stocks		250		58		—		192
Total fixed maturities	$	213,696	$	10,249	$	8,139	$	211,586

	December 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	$	20,259	$	467	$	53	$	19,845
Obligations of states and political subdivisions		11,940		371		53		11,622
Corporate securities:
Utilities and telecom		26,648		2,404		32		24,276
Financial services		73,917		4,249		57		69,725
Other business – diversified		41,706		2,335		98		39,469
Other consumer – diversified		57,752		3,702		54		54,104
Total corporate securities		200,023		12,690		241		187,574
Redeemable preferred stocks:
Other consumer – diversified		250		58		-		192
Total redeemable preferred stocks		250		58		-		192
Total fixed maturities	$	232,472	$	13,586	$	347	$	219,233

Bonds having an amortized cost of $10,444 and $10,669 and included in the tables above were on deposit with insurance regulatory authorities as of March 31, 2020 and December 31, 2019, respectively, in accordance with statutory requirements.

Equity securities were comprised of the following:

	March 31, 2020
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Cost or Amortized Cost
Equity securities:
Common and non-redeemable preferred stocks:
Financial services	$	2,871	$	338	$	2	$	2,535
Other business – diversified		11,596		6,963		-		4,633
Total equity securities	$	14,467	$	7,301	$	2	$	7,168

	December 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	$	3,159		624		-		2,535
Other business – diversified		19,763		15,130		-		4,633
Total equity securities	$	22,922	$	15,754	$	-	$	7,168

The carrying value and amortized cost of the Company’s investments in fixed maturities at March 31, 2020 and December 31, 2019 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, 2020				December 31, 2019
	Carrying Value		Amortized Cost		Carrying Value		Amortized Cost
Due in one year or less	$	-	$	-	$	-	$	-
Due after one year through five years		16,300		16,078		14,664		14,280
Due after five years through ten years		74,840		76,041		77,934		73,521
Due after ten years		113,770		110,938		130,680		122,321
Asset backed securities		8,786		8,529		9,194		9,111
Totals	$	213,696	$	211,586	$	232,472	$	219,233

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, 2020 and December 31, 2019.

	March 31, 2020
	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	$	1,858	$	61	$	-	$	-	$	1,858	$	61
Obligations of states and political subdivisions		4,153		10		-		-		4,153		10
Corporate securities		79,654		8,068		-		-		79,654		8,068
Total temporarily impaired securities	$	85,665	$	8,139	$	-	$	-	$	85,665	$	8,139

	December 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	$	3,432	$	22	$	3,533	$	31	$	6,965	$	53
Obligations of states and political subdivisions		3,106		53		-		-		3,106		53
Corporate securities		23,245		145		2,504		96		25,749		241
Total temporarily impaired securities	$	29,783	$	220	$	6,037	$	127	$	35,820	$	347

The evaluation for an other than temporary impairment (“OTTI”) 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 OTTI charges recorded during the three month periods ended March 31, 2020 and 2019.

As of March 31, 2020 and December 31, 2019, there were sixty-nine and thirty 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 increase in the number and value of securities in an unrealized loss position during the three month period ended March 31, 2020, was primarily attributable to the volatility and weakening of the financial markets as a result of the COVID-19 pandemic. 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, 2020.

The following table is a summary of realized investment gains (losses) for the three month periods ended March 31, 2020 and 2019.

	Three Months Ended March 31, 2020
	Fixed Maturities		Equity Securities		Other Invested Assets		Total
Gains	$	249	$	-	$	—	$	249
Losses		—		—		—		—
Realized investment gains (losses), net	$	249	$	-	$	—	$	249

	Three Months Ended March 31, 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

The following table presents the portion of unrealized gains (losses) related to equity securities still held for the three month periods ended March 31, 2020 and 2019.

	Three Months Ended March 31,
	2020			2019
Net realized and unrealized gains (losses) recognized during the period on equity securities	$	(8,455	)	$	7,602
Less: Net realized gains (losses) recognized during the period on equity securities sold during the period		-			1,113
Unrealized gains (losses) recognized during the reporting period
Unrealized gains (losses) on equity securities, net	$	(8,455	)	$	6,489

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 $9,775 and $9,960 as of March 31, 2020 and December 31, 2019, respectively. The Company’s VIE interests, carried as a part of investment in unconsolidated trusts, totaled $1,238 as of March 31, 2020 and December 31, 2019.

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 $11,013 and $11,198, as of March 31, 2020 and December 31, 2019, respectively. As of March 31, 2020 and December 31, 2019, the Company has outstanding commitments totaling $1,997, 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.