Investments (Tables)

12 Months Ended

Dec. 31, 2017

Investments [Abstract]

Summary of available for sale securities

The following is a summary of available for sale securities at December 31:
										Net
			Cost or		Gross		Gross			Unrealized
	Fair		Amortized		Unrealized		Unrealized			Gains
	Value		Cost		Gains		Losses			(Losses)
December 31, 2017
Fixed maturities
Agency collateralized mortgage obligations	$	16,586	$	15,839	$	818	$	(71	)	$	747
Agency mortgage-backed securities		27,075		27,180		47		(152	)		(105	)
Asset-backed securities		43,469		42,861		749		(141	)		608
Bank loans		19,488		19,271		266		(49	)		217
Certificates of deposit		3,135		3,124		11		-			11
Collateralized mortgage obligations		6,492		6,079		451		(38	)		413
Corporate securities		198,349		198,419		1,602		(1,672	)		(70	)
Mortgage-backed securities		24,204		23,656		933		(385	)		548
Municipal obligations		96,650		97,059		322		(731	)		(409	)
Non-U.S. government obligations		37,394		37,971		475		(1,052	)		(577	)
U.S. government obligations		49,011		49,558		-		(547	)		(547	)
Total fixed maturities		521,853		521,017		5,674		(4,838	)		836
Equity securities:
Consumer		46,578		23,565		24,031		(1,018	)		23,013
Energy		10,278		6,763		3,602		(87	)		3,515
Financial		45,470		31,859		13,937		(326	)		13,611
Industrial		25,402		8,949		16,793		(340	)		16,453
Technology		13,061		5,768		7,401		(108	)		7,293
Funds (e.g. mutual funds, closed end funds, ETFs)		50,291		46,177		4,153		(39	)		4,114
Other		10,683		7,670		3,313		(300	)		3,013
Total equity securities		201,763		130,751		73,230		(2,218	)		71,012
Total	$	723,616	$	651,768	$	78,904	$	(7,056	)		71,848
							Applicable federal income taxes				(25,148	)
							Net unrealized gains - net of tax			$	46,700

										Net
			Cost or		Gross		Gross			Unrealized
	Fair		Amortized		Unrealized		Unrealized			Gains
	Value		Cost		Gains		Losses			(Losses)
December 31, 2016
Fixed maturities
Agency collateralized mortgage obligations	$	6,171	$	6,000	$	171	$	-		$	171
Agency mortgage-backed securities		4,770		4,751		57		(38	)		19
Asset-backed securities		45,183		45,207		458		(482	)		(24	)
Bank loans		10,349		10,222		149		(22	)		127
Certificates of deposit		3,117		3,126		-		(9	)		(9	)
Collateralized mortgage obligations		9,104		9,096		290		(282	)		8
Corporate securities		142,683		143,356		1,643		(2,316	)		(673	)
Mortgage-backed securities		24,571		23,904		1,132		(465	)		667
Municipal obligations		129,335		130,204		391		(1,260	)		(869	)
Non-U.S. government obligations		24,681		26,461		230		(2,010	)		(1,780	)
U.S. government obligations		91,940		92,234		74		(368	)		(294	)
Total fixed maturities		491,904		494,561		4,595		(7,252	)		(2,657	)
Equity securities:
Consumer		32,576		15,231		17,656		(311	)		17,345
Energy		12,842		5,641		7,203		(2	)		7,201
Financial		31,186		22,417		8,998		(229	)		8,769
Industrial		21,145		6,239		15,098		(192	)		14,906
Technology		8,858		4,117		4,769		(28	)		4,741
Funds (e.g. mutual funds, closed end funds, ETFs)		6,995		6,930		121		(56	)		65
Other		6,343		4,327		2,181		(165	)		2,016
Total equity securities		119,945		64,902		56,026		(983	)		55,043
Total	$	611,849	$	559,463	$	60,621	$	(8,235	)		52,386
							Applicable federal income taxes				(18,335	)
							Net unrealized gains - net of tax			$	34,051

Fixed maturity and equity security investments in unrealized loss position

The following table summarizes, for fixed maturity and equity security investments in an unrealized loss position at December 31, the aggregate fair value and gross unrealized loss categorized by the duration those securities have been continuously in an unrealized loss position:

	2017							2016
	Number of Securities		Fair Value		Gross Unrealized Loss			Number of Securities		Fair Value		Gross Unrealized Loss
Fixed maturity securities:
12 months or less		459	$	313,421	$	(2,683	)		397	$	291,048	$	(4,380	)
Greater than 12 months		112		75,638		(2,155	)		54		32,054		(2,872	)
Total fixed maturities		571		389,059		(4,838	)		451		323,102		(7,252	)
Equity securities:
12 months or less		65		46,654		(2,218	)		35		20,698		(983	)
Greater than 12 months		-		-		-			-		-		-
Total equity securities		65		46,654		(2,218	)		35		20,698		(983	)
Total		636	$	435,713	$	(7,056	)		486	$	343,800	$	(8,235	)

Fair value and cost or amortized cost of fixed maturity investments by contractual maturity

The fair value and the cost or amortized cost of fixed maturity investments at December 31, 2017, organized by contractual maturity, is shown below.  Actual maturities may differ from contractual maturities because borrowers have, in some cases, the right to call or prepay obligations with or without call or prepayment penalties.  Pre-refunded municipal bonds are classified based on their pre-refunded call dates.

	Fair Value				Cost or Amortized Cost
One year or less	$	54,567	10.5	%	$	54,777	10.5	%
Excess of one year to five years		292,755	56.1			294,698	56.6
Excess of five years to ten years		61,087	11.7			60,366	11.6
Excess of ten years		2,909	0.5			2,914	0.5
Total maturities		411,318	78.8			412,755	79.2
Asset-backed securities		110,535	21.2			108,262	20.8
	$	521,853	100.0	%	$	521,017	100.0	%

Major categories of investment income

Major categories of investment income for the years ended December 31 are summarized as follows:

	2017			2016			2015
Interest on fixed maturities	$	15,340		$	13,254		$	11,663
Dividends on equity securities		4,611			3,598			3,445
Money market funds, Short-term and other		471			128			32
		20,422			16,980			15,140
Investment expenses		(2,327	)		(2,497	)		(2,642	)
Net investment income	$	18,095		$	14,483		$	12,498

Realized gains (losses) on investments

Gains and losses on investments, including equity method earnings from limited partnerships, for the years ended December 31 are summarized below:

	2017			2016			2015
Fixed maturities:
Gross gains	$	9,135		$	11,628		$	6,633
Gross losses		(10,031	)		(14,020	)		(13,634	)
Net losses		(896	)		(2,392	)		(7,001	)
Equity securities:
Gross gains		10,481			28,742			21,070
Gross losses		(2,368	)		(5,595	)		(13,643	)
Net gains		8,113			23,147			7,427
Limited partnerships - net gain (loss)		12,469			2,473			(1,687	)
Total net gains (losses)	$	19,686		$	23,228		$	(1,261	)

Schedule of realized gains (loss)

Gain and loss activity for fixed maturity and equity security investments, as shown in the previous table, includes adjustments for other-than-temporary impairment for the years ended December 31 summarized as follows:

	2017			2016			2015
Cumulative charges to income at beginning of year	$	5,060		$	10,513		$	7,168
Writedowns based on objective and subjective criteria		149			5,743			7,700
Recovery of prior writedowns upon sale or disposal		(1,590	)		(10,606	)		(4,355	)
Net pre-tax realized gain (loss)		1,441			4,863			(3,345	)
Cumulative charges to income at end of year	$	4,209		$	5,060		$	10,513

Financial information of significant limited partnership investment

The summarized financial information of this limited partnership investment as of and for the years ended December 31 is as follows:

	2017			2016			2015
Investment income (loss)	$	623		$	(5	)	$	(188	)
Partnership expenses		2,206			2,426			3,024
Net investment loss		(1,583	)		(2,431	)		(3,212	)
Realized gain (loss) on investments		8,723			7,754			21,091
Unrealized appreciation (depreciation) on investments		133,807			(21,002	)		(37,482	)
Net increase (decrease) in partners' capital resulting from operations	$	140,947		$	(15,679	)	$	(19,603	)
Total assets		566,629			448,263			511,118
Total liabilities		30,976			39,988			40,335
Total partners' capital		535,653			408,275			470,783