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 September 30, 2020 and December 31, 2019.

Fixed maturities were comprised of the following:

	September 30, 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	$	21,039	$	1,598	$	21	$	19,462
Obligations of states and political subdivisions		11,752		845		—		10,907
Corporate securities:
Utilities and telecom		31,491		4,404		14		27,101
Financial services		77,366		7,573		149		69,942
Other business – diversified		45,067		4,030		960		41,997
Other consumer – diversified		61,032		7,903		239		53,368
Total corporate securities		214,956		23,910		1,362		192,408
Redeemable preferred stocks:
Other consumer – diversified		250		58		—		192
Total redeemable preferred stocks		250		58		—		192
Total fixed maturities	$	247,997	$	26,411	$	1,383	$	222,969

	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 September 30, 2020 and December 31, 2019, respectively, in accordance with statutory requirements.

Equity securities were comprised of the following:

	September 30, 2020
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Cost
Equity securities:
Common and non-redeemable preferred stocks:
Financial services	$	2,080	$	316	$	3	$	1,767
Other business – diversified		12,243		7,610		—		4,633
Total equity securities	$	14,323	$	7,926	$	3	$	6,400

	December 31, 2019
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		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 September 30, 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.

	September 30, 2020				December 31, 2019
	Carrying Value		Amortized Cost		Carrying Value		Amortized Cost
Due in one year or less	$	1,040	$	1,019	$	—	$	—
Due after one year through five years		20,424		19,301		14,664		14,280
Due after five years through ten years		94,670		86,920		77,934		73,521
Due after ten years		122,558		106,788		130,680		122,321
Asset backed securities		9,305		8,941		9,194		9,111
Totals	$	247,997	$	222,969	$	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 September 30, 2020 and December 31, 2019.

	September 30, 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	$	2,053	$	21	$	—	$	—	$	2,053	$	21
Corporate securities		19,743		1,362		—		—		19,743		1,362
Total temporarily impaired securities	$	21,796	$	1,383	$	—	$	—	$	21,796	$	1,383

	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 and nine month periods ended September 30, 2020 and 2019.

As of September 30, 2020 and December 31, 2019, there were twenty 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 decrease in the number of securities in an unrealized loss position during the nine month period ended September 30, 2020, was primarily attributable to improvement in market values in certain of the Company’s fixed maturity securities as a result of a declining interest rate environment. 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 September 30, 2020.

The following tables summarize realized investment gains (losses) for the three month and nine month periods ended September 30, 2020 and 2019.

	Three Months Ended September 30, 2020
	Fixed Maturities		Equity Securities		Other Invested Assets		Total
Gains	$	95	$	88	$	—	$	183
Losses		—		—		—		—
Realized investment gains, net	$	95	$	88	$	—	$	183

	Three Months Ended September 30, 2019
	Fixed Maturities			Equity Securities		Other Invested Assets		Total
Gains	$	1,112		$	108	$	—	$	1,220
Losses		(1,650	)		—		—		(1,650	)
Realized investment gains (losses), net	$	(538	)	$	108	$	—	$	(430	)

	Nine Months Ended September 30, 2020
	Fixed Maturities		Equity Securities		Other Invested Assets		Total
Gains	$	344	$	88	$	—	$	432
Losses		—		—		—		—
Realized investment gains, net	$	344	$	88	$	—	$	432

	Nine Months Ended September 30, 2019
	Fixed Maturities			Equity Securities		Other Invested Assets		Total
Gains	$	1,994		$	1,221	$	—	$	3,215
Losses		(1,650	)		—		—		(1,650	)
Realized investment gains, net	$	344		$	1,221	$	—	$	1,565

The following table presents the portion of unrealized gains (losses) related to equity securities still held for the three month and nine month periods ended September 30, 2020 and 2019.

	Three Months Ended September 30,					Nine Months Ended September 30,
	2020			2019		2020			2019
Net realized and unrealized gains (losses) recognized during the period on equity securities	$	(643	)	$	1,052	$	(7,743	)	$	3,317
Less: Net realized gains (losses) recognized during the period on equity securities sold during the period		88			108		88			1,221
Unrealized gains (losses) recognized during the reporting period on equity securities, net	$	(731	)	$	944	$	(7,831	)	$	2,096

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 $9,097 and $9,960 as of September 30, 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 September 30, 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 $10,335 and $11,198, as of September 30, 2020 and December 31, 2019, respectively. As of September 30, 2020 and December 31, 2019, the Company had 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.