Results for reporting periods beginning after January 1, 2020 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable U.S. GAAP.


	June 30, 2020
	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Debt Securities:
U.S. government obligations and agencies	$	53,762	$	—	$	2,766	$	(7)	$	56,521
Corporate bonds	457,532		(313)		35,008		(864)		491,363
Mortgage-backed and asset-backed securities	295,075		—		13,959		(316)		308,718
Municipal bonds	3,113		—		161		—		3,274
Redeemable preferred stock	9,684		(142)		191		(191)		9,542
Total	$	819,166	$	(455)	$	52,085	$	(1,378)	$	869,418


	December 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Debt Securities:
U.S. government obligations and agencies	$	53,688	$	864	$	(188)	$	54,364
Corporate bonds	457,180		19,179		(141)		476,218
Mortgage-backed and asset-backed securities	304,285		7,400		(606)		311,079
Municipal bonds	3,397		103		(4)		3,496
Redeemable preferred stock	9,786		427		(86)		10,127
Total	$	828,336	$	27,973	$	(1,025)	$	855,284

The following table provides the credit quality of available-for-sale debt securities with contractual maturities as of the dates presented (dollars in thousands):


	June 30, 2020						December 31, 2019
Equivalent S&P Credit Ratings	Fair Value		% of Total Fair Value		Fair Value		% of Total Fair Value
AAA	$	364,007	41.9	%	$	372,442	43.6	%
AA	100,331		11.5	%	99,103		11.6	%
A	249,591		28.7	%	238,766		27.9	%
BBB	151,828		17.5	%	143,889		16.8	%
BB and Below	1,234		0.1	%	—		—
No Rating Available	2,427		0.3	%	1,084		0.1	%
Total	$	869,418	100.0	%	$	855,284	100.0	%

The table above includes credit quality ratings by Standard and Poor’s Rating Services, Inc. (“S&P”), Moody’s Investors Service, Inc. and Fitch Ratings, Inc. The Company has presented the highest rating of the three rating agencies for each investment position.

The following table summarizes the amortized cost and fair value of mortgage-backed and asset-backed securities as of the dates presented (in thousands):


	June 30, 2020						December 31, 2019
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Mortgage-backed Securities:
Agency	$	145,725	$	150,150	$	143,723	$	144,729
Non-agency	69,523		77,248		71,140		75,896
Asset-backed Securities:
Auto loan receivables	38,453		39,030		42,767		43,127
Credit card receivables	18,676		19,370		21,145		21,487
Other receivables	22,698		22,920		25,510		25,840
Total	$	295,075	$	308,718	$	304,285	$	311,079

The following tables summarize debt securities available for sale for which an allowance for expected credit losses has not been recorded at June 30, 2020, and December 31, 2019 aggregated by major security type and length of time in a continuous unrealized loss position as of the dates presented (in thousands):


	June 30, 2020
	Less Than 12 Months								12 Months or Longer
	Number of Issues	Fair Value		Unrealized Losses		Number of Issues	Fair Value		Unrealized Losses
Debt Securities:
U.S. government obligations and agencies	1	$	1,995	$	(5)	1	$	129	$	(2)
Corporate bonds	14	7,463		(520)		1	223		(31)
Mortgage-backed and asset-backed securities	20	24,546		(308)		3	2,151		(8)

Redeemable preferred stock	2	34		—		—	—		—
Total	37	$	34,038	$	(833)	5	$	2,503	$	(41)


	December 31, 2019
	Less Than 12 Months								12 Months or Longer
	Number of Issues	Fair Value		Unrealized Losses		Number of Issues	Fair Value		Unrealized Losses
Debt Securities:
U.S. government obligations and agencies	2	$	3,836	$	(108)	4	$	23,186	$	(80)
Corporate bonds	18	16,808		(107)		7	5,866		(34)
Mortgage-backed and asset-backed securities	42	58,023		(245)		26	34,985		(361)
Municipal bonds	—	—		—		1	276		(4)
Redeemable preferred stock	6	630		(8)		4	1,489		(78)
Total	68	$	79,297	$	(468)	42	$	65,802	$	(557)

Unrealized losses on available-for-sale debt securities in the above table as of June 30, 2020 have not been recognized into income as credit losses because the issuers are of high credit quality (rated AA or higher), management does not intend to sell and it is likely management will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates and other market conditions. There were no material factors impacting any one category or specific security requiring an accrual for credit loss. The issuers continue to make principal and interest payments on the bonds. The fair value is expected to recover as the bonds approach maturity.

Results for reporting periods occurring before January 1, 2020 continue to be reported in accordance with previously applicable U.S. GAAP and not presented under ASC 326, which was adopted by the Company on January 1, 2020.

The following table presents a reconciliation of the beginning and ending balances for expected credit losses on debt securities classified as available for sale (in thousands):


	Corporate Bonds		Redeemable Preferred Shares		Total
Balance, December 31, 2019	$	—	$	—	$	—
Cumulative effect adjustment as of January 1, 2020	665		126		791
Increase (decrease)	(352)		16		(336)
Balance, June 30, 2020	$	313	$	142	$	455

See “—Note 2 (Summary of Significant Accounting Policies — Recently Adopted Accounting Pronouncements)” for more information about the methodology and significant inputs used to measure the amount related to expected credit losses on debt securities classified as available for sale.


	June 30, 2020
	Amortized Cost		Fair Value
Due in one year or less	$	124,808	$	125,912
Due after one year through five years	400,137		420,146
Due after five years through ten years	278,719		308,072
Due after ten years	14,639		14,403
Perpetual maturity securities	863		885
Total	$	819,166	$	869,418

All securities, except those with perpetual maturities, were categorized in the table above utilizing years to effective maturity. Effective maturity takes into consideration all forms of potential prepayment, such as call features or prepayment schedules, that shorten the lifespan of contractual maturity dates.

The following table provides certain information related to available-for-sale debt securities and equity securities during the periods presented (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Proceeds from sales and maturities (fair value):
Available-for-sale debt securities	$	57,169	$	60,545	$	99,682	$	111,730
Equity securities	$	—	$	11,976	$	—	$	29,137
Gross realized gains on sale of securities:
Available-for-sale debt securities	$	540	$	112	$	886	$	299
Equity securities	$	—	$	170	$	—	$	335
Gross realized losses on sale of securities:
Available-for-sale debt securities	$	(372)	$	(148)	$	(419)	$	(190)
Equity securities	$	—	$	(2,952)	$	—	$	(14,787)
Realized gains on sales of investment real estate	$	—	$	1,213	$	—	$	1,213

The following table presents the components of net investment income, comprised primarily of interest and dividends, for the periods presented (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Available-for-sale debt securities	$	6,016	$	6,041	$	12,031	$	12,192
Equity securities	604		562		1,149		1,604

Cash and cash equivalents (1)	95		1,392		886		2,692
Other (2)	260		252		514		511
Total investment income	6,975		8,247		14,580		16,999
Less: Investment expenses (3)	(796)		(837)		(1,567)		(1,447)
Net investment income	$	6,179	$	7,410	$	13,013	$	15,552


(1)						Includes interest earned on restricted cash and cash equivalents.
(2)						Includes investment income earned on real estate investments.
(3)						Includes custodial fees, investment accounting and advisory fees, and expenses associated with real estate investments.

The following table provides the unrealized gains and losses recorded during the periods presented on equity securities still held at the end of the reported period (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Unrealized gains and (losses) recognized during the reported period on equity securities still held at the end of the reported period	$	3,871	$	880	$	(4,154)	$	2,766


	June 30,		December 31,
	2020		2019
Income Producing:
Investment real estate	$	14,679	$	14,679
Less: Accumulated depreciation	(1,492)		(1,284)
	13,187		13,395
Non-Income Producing:
Investment real estate	2,190		2,190
Investment real estate, net	$	15,377	$	15,585

During the six months ended June 30, 2019, the Company completed the sale of investment real estate. The Company received net cash proceeds of approximately $10.5 million and recognized a pre-tax gain of approximately $1.2 million that is included in net realized gains (losses) on investments on the Condensed Consolidated Statements of Income for the three and six months ended June 30, 2019.