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.


	December 31, 2020
	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Debt Securities:
U.S. government obligations and agencies	$	59,529	$	—	$	157	$	(55)	$	59,631
Corporate bonds	416,758		(148)		3,571		(337)		419,844
Mortgage-backed and asset-backed securities	319,377		—		1,175		(615)		319,937
Municipal bonds	11,990		—		138		—		12,128
Redeemable preferred stock	7,993		(38)		424		(58)		8,321
Total	$	815,647	$	(186)	$	5,465	$	(1,065)	$	819,861


	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):


	December 31, 2020				December 31, 2019
			% of Total				% of Total
Average Credit Ratings	Fair Value		Fair Value		Fair Value		Fair Value
AAA	$	337,462	41.2	%	$	372,442	43.6	%
AA	89,681		10.9	%	99,103		11.6	%
A	230,290		28.1	%	238,766		27.9	%
BBB	160,662		19.6	%	143,889		16.8	%
BB and Below	233		—	%	—		—
No Rating Available	1,533		0.2	%	1,084		0.1	%
Total	$	819,861	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):


	December 31, 2020				December 31, 2019
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Mortgage-backed securities:
Agency	$	153,937	$	153,758	$	143,723	$	144,729
Non-agency	54,231		54,666		71,140		75,896
Asset-backed securities:
Auto loan receivables	68,188		68,440		42,767		43,127
Credit card receivables	7,878		7,891		21,145		21,487
Other receivables	35,143		35,182		25,510		25,840
Total	$	319,377	$	319,937	$	304,285	$	311,079

The following tables summarize available-for-sale debt securities, aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position, for which no allowance for expected credit losses has been recorded as of the dates presented (in thousands):


	December 31, 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	8	$	31,729	$	(55)	—	$	—	$	—
Corporate bonds	27	28,791		(162)		—	—		—
Mortgage-backed and asset-backed securities	42	112,462		(615)		—	—		—
Municipal bonds	—	—		—		—	—		—
Redeemable preferred stock	2	688		(12)		—	—		—
Total	79	$	173,670	$	(844)	—	$	—	$	—


	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 December 31, 2020 have not been recognized into income as credit losses because the issuers are of high credit quality (investment grade securities), 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 available-for-sale debt securities (in thousands):


	Corporate Bonds		Redeemable Preferred Stock		Total
Balance, December 31, 2019	$	—	$	—	$	—
Cumulative effect adjustment as of January 1, 2020	665		126		791
Increase (decrease)	(517)		(88)		(605)
Balance, December 31, 2020	$	148	$	38	$	186

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 available-for-sale debt securities.


	December 31, 2020
	Amortized Cost		Fair Value
Due in one year or less	$	31,333	$	31,578
Due after one year through five years	480,269		482,031
Due after five years through ten years	270,152		272,445
Due after ten years	33,728		33,596
Perpetual maturity securities	165		211
Total	$	815,647	$	819,861

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, equity securities and investment real estate during the periods presented (in thousands):


	Years Ended December 31,
	2020		2019		2018
Proceeds from sales and maturities (fair value):
Available-for-sale debt securities	$	1,148,418	$	223,266	$	255,938
Equity securities	$	81,559	$	29,680	$	8,285
Gross realized gains on sale of securities:
Available-for-sale debt securities	$	57,378	$	790	$	326
Equity securities	$	6,438	$	367	$	714
Gross realized losses on sale of securities:
Available-for-sale debt securities	$	(464)	$	(298)	$	(3,129)
Equity securities	$	—	$	(14,787)	$	—
Realized gains on sales of investment real estate	$	—	$	1,213	$	—

In the third quarter of 2020, the Company took advantage of the market recovery and recognized $53.8 million of net realized gains on the sales of our available-for-sale debt securities that were in an unrealized gain position.

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


	Years Ended December 31,
	2020		2019		2018
Available-for-sale debt securities	$	19,091	$	24,989	$	18,198
Equity securities	2,445		2,648		2,978
Available-for-sale short-term investments	—		—		145
Cash and cash equivalents (1)	960		5,176		5,540
Other (2)	1,050		1,008		915
Total investment income	23,546		33,821		27,776
Less: Investment expenses (3)	(3,153)		(3,078)		(2,960)
Net investment income	$	20,393	$	30,743	$	24,816


(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 recognized for the periods presented on equity securities still held at the end of the reported period (in thousands):


	Years Ended December 31,
	2020		2019		2018


Unrealized gains and (losses) recognized during the reported period on equity securities still held at the end of the reporting period	$	25	$	4,163	$	(17,169)


	As of December 31,
	2020		2019
Income Producing:
Investment real estate	$	14,685	$	14,679
Less: Accumulated depreciation	(1,699)		(1,284)
	12,986		13,395
Non-Income Producing:
Investment real estate	2,190		2,190
Investment real estate, net	$	15,176	$	15,585

During the year ended December 31, 2019, the Company completed the sale of an investment real estate property. 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 in the Consolidated Statements of Income for the year ended December 31, 2019.