Investments (Tables)

9 Months Ended

Sep. 30, 2021

Investments, Debt and Equity Securities [Abstract]

Schedule of Cost or Amortized Cost and Fair Value of Securities Available for Sale

The following table provides the amortized cost and fair value of available-for-sale debt securities as of the dates presented (in thousands):

	September 30, 2021
	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Debt Securities:
U.S. government obligations and agencies	$	37,291	$	—	$	102	$	(277)	$	37,116
Corporate bonds	640,855		(236)		1,435		(7,562)		634,492
Mortgage-backed and asset-backed securities	336,881		—		493		(3,620)		333,754
Municipal bonds	14,925		(1)		1		(244)		14,681
Redeemable preferred stock	9,090		(53)		90		(13)		9,114
Total	$	1,039,042	$	(290)	$	2,121	$	(11,716)	$	1,029,157

	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

Schedule of Credit Quality of Investment Securities

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

	September 30, 2021				December 31, 2020
Equivalent S&P Credit Ratings	Fair Value		% of Total  Fair Value		Fair Value		% of Total  Fair Value
AAA	$	330,344	32.1	%	$	337,462	41.2	%
AA	143,806		14.0	%	89,681		10.9	%
A	315,761		30.7	%	230,290		28.1	%
BBB	229,208		22.2	%	160,662		19.6	%
BB and Below	—		—	%	233		—	%
No Rating Available	10,038		1.0	%	1,533		0.2	%
Total	$	1,029,157	100.0	%	$	819,861	100.0	%

Schedule of Amortized Cost and Fair Value on Mortgage-Backed and Asset-Backed Securities

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

	September 30, 2021				December 31, 2020
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Mortgage-backed Securities:
Agency	$	149,850	$	147,723	$	153,937	$	153,758
Non-agency	68,025		66,940		54,231		54,666
Asset-backed Securities:
Auto loan receivables	71,716		71,764		68,188		68,440
Credit card receivables	4,756		4,749		7,878		7,891
Other receivables	42,534		42,578		35,143		35,182
Total	$	336,881	$	333,754	$	319,377	$	319,937

Schedule of Fair Value and Gross Unrealized Losses on Securities Available for Sale

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):

	September 30, 2021
	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	5	$	21,069	$	(145)	2	$	1,981	$	(132)
Corporate bonds	216	304,464		(4,143)		7	12,896		(339)
Mortgage-backed and asset-backed securities	108	232,904		(3,425)		5	5,320		(195)
Municipal bonds	4	8,881		(199)		—	—		—
Redeemable preferred stock	1	498		(2)		—	—		—
Total	334	$	567,816	$	(7,914)	14	$	20,197	$	(666)

	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)	—	$	—	$	—

Schedule of Debt Securities, Available-for-sale, Allowance for Credit Loss

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		Municipal 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
Increase (decrease)	88		1		15		104
Balance, September 30, 2021	$	236	$	1	$	53	$	290

Schedule of Amortized Cost and Fair Value of Investments With Contractual Maturities

The following table presents the amortized cost and fair value of investments with maturities as of the date presented (in thousands):

	September 30, 2021
	Amortized Cost		Fair Value
Due in one year or less	$	31,202	$	31,275
Due after one year through five years	609,963		606,996
Due after five years through ten years	370,677		363,943
Due after ten years	26,301		26,046
Perpetual maturity securities	899		897
Total	$	1,039,042	$	1,029,157

Schedule of Securities Available for Sale

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Proceeds from sales and maturities (fair value):
Available-for-sale debt securities (1)	$	32,320	$	773,673	$	146,611	$	873,355
Equity securities	$	48,486	$	—	$	53,651	$	—
Gross realized gains on sale of securities:
Available-for-sale debt securities (1)	$	882	$	53,893	$	1,899	$	54,779
Equity securities	$	1,315	$	—	$	2,399	$	—
Gross realized losses on sale of securities:
Available-for-sale debt securities (1)	$	(192)	$	(66)	$	(1,656)	$	(485)
Equity securities	$	—	$	—	$	—	$	—
Realized gains on sales of investment real estate (2)	$	—	$	—	$	401	$	—

(1)	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 sale of our available-for-sale debt securities that were in an unrealized gain position.
(2)	See the discussion below for “Investment Real Estate” sold.

Schedule of Investment Income (Expense) Comprised Primarily of Interest and Dividends

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 September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Available-for-sale debt securities	$	2,799	$	4,394	$	8,393	$	16,425
Equity securities	544		583		1,787		1,732
Cash and cash equivalents (1)	2		49		28		935
Other (2)	274		268		809		782
Total investment income	3,619		5,294		11,017		19,874
Less: Investment expenses (3)	(822)		(737)		(2,376)		(2,304)
Net investment income	$	2,797	$	4,557	$	8,641	$	17,570

(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.

Schedule of Details on Realized and Unrealized Gains and Losses Related to Equity Securities

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):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Unrealized gains (losses) recognized during the reported period on equity securities still held at the end of the reported period	$	(3,418)	$	1,991	$	(2,391)	$	(2,162)

Schedule of Real Estate Investment

Investment real estate consisted of the following as of the dates presented (in thousands):

	September 30,		December 31,
	2021		2020
Income Producing:
Investment real estate	$	7,087	$	14,685
Less: Accumulated depreciation	(1,153)		(1,699)
	5,934		12,986
Non-Income Producing:
Investment real estate	—		2,190
Investment real estate, net	$	5,934	$	15,176

Schedule of Depreciation Expense Related to Investment Real Estate

Depreciation expense related to investment real estate for the periods presented (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Depreciation expense on investment real estate	$	47	$	103	$	139	$	311