Investments (Tables)

9 Months Ended

Sep. 30, 2014

Investments Debt And Equity Securities [Abstract]

Investment Holdings by Type of Instrument

The following table presents the Company’s investment holdings by type of instrument as of the dates presented (in thousands):

	September 30, 2014						December 31, 2013
	Cost or						Cost or
	Amortized				Carrying		Amortized				Carrying
	Cost		Fair Value		Value		Cost		Fair Value		Value
Cash and cash equivalents (1)	$	170,352	$	170,352	$	170,352	$	117,275	$	117,275	$	117,275
Restricted cash and cash equivalents		6,597		6,597		6,597		2,600		2,600		2,600
Fixed maturities:
U.S. government obligations and agencies		116,903		116,083		116,083		105,229		104,215		104,215
Corporate bonds		109,946		109,837		109,837		94,708		94,203		94,203
Mortgage-backed and asset-backed securities		95,599		95,238		95,238		91,502		91,000		91,000
Redeemable preferred stock		6,813		6,852		6,852		—		—		—
Equity securities:
Common stock		331		250		250		8,500		9,295		9,295
Mutual funds		21,297		20,137		20,137		55,113		55,727		55,727
Short-term investments		37,500		37,473		37,473		—		—		—
Total investments		388,389		385,870		385,870		355,052		354,440		354,440
Total	$	565,338	$	562,819	$	562,819	$	474,927	$	474,315	$	474,315

(1) Cash and cash equivalents have original maturities of three months or less. They include certificates of deposit, short-term debt securities consisting of direct obligations of the U.S. Treasury and/or money-market accounts that invest in or are collateralized by direct obligations of the U.S. Treasury and other U.S. government guaranteed securities.

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						Nine Months Ended
	September 30,						September 30,
	2014			2013			2014			2013
Cash and cash equivalents (1)	$	26		$	135		$	47		$	377
Fixed maturities		884			439			2,394			409
Equity securities		182			363			636			729
Short-term investments		11			—			11			—
Total investment income		1,103			937			3,088			1,515
Less: Investment expenses		(459	)		(555	)		(1,514	)		(985	)
Net investment (expense) income	$	644		$	382		$	1,574		$	530

(1) Includes interest earned on restricted cash and cash equivalents.

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

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

	September 30, 2014
	Cost or		Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses			Fair Value
Fixed Maturities:
U.S. government obligations and agencies	$	116,903	$	64	$	(884	)	$	116,083
Corporate bonds		109,946		216		(325	)		109,837
Mortgage-backed and asset-backed securities		95,599		141		(502	)		95,238
Redeemable preferred stock		6,813		71		(32	)		6,852
Equity Securities:
Common stock		331		1		(82	)		250
Mutual funds		21,297		—		(1,160	)		20,137
Short-term investments		37,500		—		(27	)		37,473
Total	$	388,389	$	493	$	(3,012	)	$	385,870

	December 31, 2013
	Cost or		Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses			Fair Value
Fixed Maturities:
U.S. government obligations and agencies	$	105,229	$	19	$	(1,033	)	$	104,215
Corporate bonds		94,708		265		(770	)		94,203
Mortgage-backed and asset-backed securities		91,502		75		(577	)		91,000
Equity Securities:
Common stock		8,500		916		(121	)		9,295
Mutual funds		55,113		2,266		(1,652	)		55,727
Total	$	355,052	$	3,541	$	(4,153	)	$	354,440

Schedule of Credit Quality of Investments With Contractual Maturities

The following table provides the credit quality of investments with contractual maturities as of the dates presented (in thousands):

September 30, 2014
Standard and Poor's			% of Total
Rating Services	Fair Value		Fair Value
AAA	$	28,505		8.1	%
AA		192,903		54.7	%
A		76,030		21.5	%
BBB		42,091		11.9	%
BB and Below (1)		2,714		0.8	%
No Rating Available (2)		10,740		3.0	%
Total	$	352,983		100.0	%

December 31, 2013
Standard and Poor's			% of Total
Rating Services	Fair Value		Fair Value
AAA	$	82,889		28.6	%
AA		120,976		41.8	%
A		46,689		16.1	%
BBB		38,114		13.2	%
No Rating Available		750		0.3	%
Total	$	289,418		100.0	%

(1) As of September 30, 2014, $259 thousand of these investments where rated “Baa3” by Moody’s Investors Service, Inc.

(2) As of September 30, 2014, $7.5 million of these investments where rated “Aaa” by Moody’s Investors Service, Inc.

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

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

	September 30, 2014				December 31, 2013
	Cost or				Cost or
	Amortized				Amortized
	Cost		Fair Value		Cost		Fair Value
Mortgage-backed securities:
Agency	$	59,548	$	59,228	$	64,028	$	63,547
Non-agency		3,110		3,063		—		—
Asset-backed securities:
Auto loan receivables		14,862		14,884		14,816		14,841
Credit card receivables		13,479		13,464		11,478		11,425
Other receivables		4,600		4,599		1,180		1,187
Total	$	95,599	$	95,238	$	91,502	$	91,000

Summarized Fair Value and Gross Unrealized Losses on Securities Available for Sale

The following table summarizes the fair value and gross unrealized losses on securities available for sale, aggregated by major investment category and length of time that individual securities have been in a continuous unrealized loss position as of the dates presented (in thousands):

	September 30, 2014
	Less Than 12 Months							12 Months or Longer
	Number of				Unrealized			Number of				Unrealized
	Issues		Fair Value		Losses			Issues		Fair Value		Losses
Fixed maturities:
U.S. government obligations and agencies		2	$	17,473	$	(152	)		4	$	33,950	$	(732	)
Corporate bonds		42		35,635		(153	)		13		16,301		(172	)
Mortgage-backed and asset-backed securities		14		35,116		(221	)		7		24,775		(281	)
Redeemable preferred stock		26		2,681		(32	)		—		—		—
Equity securities:
Common stock		3		131		(27	)		2		107		(55	)
Mutual funds		2		10,487		(70	)		1		9,596		(1,090	)
Short-term investments		1		24,973		(27	)		—		—		—
Total		90	$	126,496	$	(682	)		27	$	84,729	$	(2,330	)

	December 31, 2013
	Less Than 12 Months							12 Months or Longer
	Number of				Unrealized			Number of				Unrealized
	Issues		Fair Value		Losses			Issues		Fair Value		Losses
Fixed maturities:
U.S. government obligations and agencies		6	$	71,042	$	(1,033	)		—	$	—	$	—
Corporate bonds		55		65,926		(770	)		—		—		—
Mortgage-backed and asset-backed securities		16		67,110		(577	)		—		—		—
Equity securities:
Common stock		13		3,517		(121	)		—		—		—
Mutual funds		5		19,646		(1,652	)		—		—		—
Total		95	$	227,241	$	(4,153	)		—	$	—	$	—

Amortized Cost and Fair Value of Investments With Contractual Maturities

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

	September 30, 2014
	Cost or
	Amortized Cost		Fair Value
Due in one year or less	$	79,061	$	78,943
Due after one year through five years		171,757		170,939
Due after five years through ten years		138		128
Due after ten years		3,652		3,676
Mortgage-backed and asset-backed securities		95,599		95,238
Perpetual maturity securities		4,054		4,059
Total	$	354,261	$	352,983

Summary of Securities Available for Sale

The following table provides certain information related to securities available for sale during the period presented (in thousands):

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2014			2013		2014			2013
Sales proceeds (fair value)	$	53,961		$	376	$	126,748		$	390
Gross realized gains	$	742		$	56	$	5,930		$	56
Gross realized losses	$	(241	)	$	—	$	(577	)	$	(1	)
Other than temporary losses	$	—		$	—	$	—		$	—

Effect of Trading Activities by Type of Instrument and by Line Item in Condensed Consolidated Statements of Income

The following table provides the effect of trading activities on the Company’s results of operations for the period presented by type of instrument and by line item in the Condensed Consolidated Statements of Income (in thousands):

	Nine Months Ended
	September 30, 2013
Realized gains (losses) on investments:
Equity securities	$	(15,969	)
Derivatives (non-hedging instruments) (1)		(68	)
Total realized gains (losses) on trading portfolio		(16,037	)
Change in unrealized gains (losses) on investments:
Fixed maturities		13
Equity securities		7,758
Derivatives (non-hedging instruments) (1)		89
Other		14
Total change in unrealized gains (losses) on trading portfolio		7,874
Net gains (losses) recognized on trading portfolio	$	(8,163	)

(1) This table provides the alternative quantitative disclosures permitted for derivatives that are not used as hedging instruments and are included in the trading portfolio.