Investment Securities

9 Months Ended

Sep. 30, 2015

Investments Debt And Equity Securities [Abstract]

Investment Securities

Note 4: Investment Securities

The amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of total fixed-maturity securities and total fixed-maturity securities held in trust at September 30, 2015, are as follows:

	September 30, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Obligations of U.S. government sponsored enterprises	$	74,364	$	19	$	(3	)	$	74,380
Corporate debt securities		21,493		108		(12	)		21,589
Foreign corporate debt securities		10,029		22		(15	)		10,036
Total fixed-maturity securities		105,886		149		(30	)		106,005
Less total unrestricted fixed-maturity securities		73,834		33		(2	)		73,865
Total fixed-maturity securities held in trust	$	32,052	$	116	$	(28	)	$	32,140

The amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of total fixed-maturity securities and total fixed-maturity securities held in trust at December 31, 2014, are as follows:

	December 31, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Obligations of U.S. government sponsored enterprises	$	6,491	$	12	$	(28	)	$	6,475
Corporate debt securities		41,018		531		(65	)		41,484
Foreign corporate debt securities		12,693		47		(58	)		12,682
Total fixed-maturity securities		60,202		590		(151	)		60,641
Less total unrestricted fixed-maturity securities		7,895		179		(11	)		8,063
Total fixed-maturity securities held in trust	$	52,307	$	411	$	(140	)	$	52,578

Amortized cost and estimated fair value of fixed-maturity securities at September 30, 2015 by contractual maturity are as follows:

	Amortized Cost		Estimated Fair Value
Maturity in:
2015	$	73,442	$	73,464
2016-2019		32,444		32,541
Total fixed-maturity securities	$	105,886	$	106,005

Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

Net investment income for the periods ended September 30, 2015 and 2014, respectively, is summarized as follows:

	Three Months ended September 30, 2015			Three Months ended September 30, 2014			Nine Months ended September 30, 2015			Nine Months ended September 30, 2014
Investment income (loss):
Amortization of premium or discount on fixed-maturity securities	$	(131	)	$	(392	)	$	(454	)	$	(1,350	)
Investment income on fixed-maturity securities		298			740			1,037			2,749
Interest income on cash and equivalents		60			2			179			9
Realized net gain from sale of investments		52			19			319			434
Unrealized (losses) on trading securities held at period end		(38	)		(283	)		(311	)		(651	)
Net investment income	$	241		$	86		$	770		$	1,191

The following table shows how the Company’s investments are categorized in accordance with fair value measurement, as of September 30, 2015:

	September 30, 2015
	Level 1		Level 2		Level 3		Total
Class of securities:
Obligations of U.S. government sponsored enterprises	$	69,887	$	4,493	$	—	$	74,380
Corporate debt securities		11,396		10,193		—		21,589
Foreign corporate debt securities		1,072		8,964		—		10,036
Total fixed-maturity securities		82,355		23,650		—		106,005
Money market funds		16,276		—		—		16,276
Total	$	98,631	$	23,650	$	—	$	122,281

The following table shows how the Company’s investments are categorized in accordance with fair value measurement, as of December 31, 2014:

	December 31, 2014
	Level 1		Level 2		Level 3		Total
Class of securities:
Obligations of U.S. government sponsored enterprises	$	3,009	$	3,466	$	—	$	6,475
Corporate debt securities		14,939		26,545		—		41,484
Foreign corporate debt securities		2,822		9,860		—		12,682
Total fixed-maturity securities	$	20,770	$	39,871	$	—	$	60,641
Money market funds		88,851		—		—		88,851
Total	$	109,621	$	39,871	$	—	$	149,492

A review of the fair value hierarchy classifications of the Company’s investments is conducted quarterly. Changes in the observability of valuation inputs may result in a reclassification for certain financial assets or liabilities. Reclassifications are reported as transfers in or transfers out of the applicable Level at the end of the calendar quarter in which the reclassifications occur. During the nine months ended September 30, 2015 and the year ended December 31, 2014, $6.0 million and $15.8 million, respectively, of investments were transferred from Level 2 to Level 1 as a result of improving market conditions for short-term and investment grade corporate securities.

	January 1, 2015 to September 30, 2015				January 1, 2014 to  December 31, 2014
	Transfers from Level 1 to Level 2		Transfers from Level 2 to Level 1			Transfers from Level 1 to Level 2		Transfers from Level 2 to Level 1
Class of securities:
Corporate debt securities	$	—	$	5,999		$	—	$	13,941
Foreign corporate debt securities		—		—			—		1,810
Total transfers	$	—	$	5,999		$	—	$	15,751