XML 23 R9.htm IDEA: XBRL DOCUMENT v3.20.2
Investments
 6 Months Ended
Jun. 30, 2020
Investments [Abstract]  
Investments
(2)  Investments:

The following is a summary of available-for-sale securities at June 30, 2020 and December 31, 2019:

  
Fair
Value
    
Cost or
Amortized Cost
    
Gross
Unrealized Gains
    
Gross
Unrealized Losses
    
Net Unrealized
Gains (Losses)
  
June 30, 2020
                              
Fixed income securities
                              
Agency collateralized mortgage obligations
  
$
11,054
    
$
10,869
    
$
428
    
$
(243
)
  
$
185
  
Agency mortgage-backed securities
    
91,512
      
88,344
      
3,192
      
(24
)
    
3,168
  
Asset-backed securities
    
99,830
      
104,961
      
597
      
(5,728
)
    
(5,131
)
Bank loans
    
8,121
      
9,609
      
–
      
(1,488
)
    
(1,488
)
Certificates of deposit
    
2,835
      
2,835
      
–
      
–
      
–
  
Collateralized mortgage obligations
    
6,749
      
7,046
      
40
      
(337
)
    
(297
)
Corporate securities
    
295,894
      
284,676
      
13,318
      
(2,100
)
    
11,218
  
Mortgage-backed securities
    
45,502
      
53,106
      
478
      
(8,082
)
    
(7,604
)
Municipal obligations
    
38,359
      
36,967
      
1,421
      
(29
)
    
1,392
  
Non-U.S. government obligations
    
30,210
      
29,312
      
900
      
(2
)
    
898
  
U.S. government obligations
    
181,935
      
172,794
      
9,141
      
–
      
9,141
  
Total fixed income securities
  
$
812,001
    
$
800,519
    
$
29,515
    
$
(18,033
)
  
$
11,482
  

 
Fair
Value
    
Cost or
Amortized Cost
    
Gross
Unrealized Gains
    
Gross
Unrealized Losses
    
Net Unrealized
Gains (Losses)
  
December 31, 2019
                              
Fixed income securities
                              
Agency collateralized mortgage obligations
  
$
12,093
    
$
11,557
    
$
536
    
$
–
    
$
536
  
Agency mortgage-backed securities
    
56,280
      
54,286
      
2,005
      
(11
)
    
1,994
  
Asset-backed securities
    
106,397
      
107,028
      
499
      
(1,130
)
    
(631
)
Bank loans
    
14,568
      
14,932
      
106
      
(470
)
    
(364
)
Certificates of deposit
    
2,835
      
2,835
      
–
      
–
      
–
  
Collateralized mortgage obligations
    
5,616
      
5,123
      
493
      
–
      
493
  
Corporate securities
    
281,381
      
274,340
      
7,492
      
(451
)
    
7,041
  
Mortgage-backed securities
    
47,463
      
46,685
      
1,047
      
(269
)
    
778
  
Municipal obligations
    
36,286
      
35,749
      
684
      
(147
)
    
537
  
Non-U.S. government obligations
    
24,179
      
23,889
      
290
      
–
      
290
  
U.S. government obligations
    
208,440
      
206,623
      
2,891
      
(1,074
)
    
1,817
  
Total fixed income securities
  
$
795,538
    
$
783,047
    
$
16,043
    
$
(3,552
)
  
$
12,491
  

The following table summarizes, for available-for-sale fixed income securities in an unrealized loss position at June 30, 2020 and December 31, 2019, the aggregate fair value and gross unrealized loss categorized by the duration individual securities have been continuously in an unrealized loss position.

  
June 30, 2020
    
December 31, 2019
  
   
Number of
Securities
    
Fair
Value
    
Gross
Unrealized Loss
    
Number of
Securities
    
Fair
Value
    
Gross
Unrealized Loss
  
Fixed income securities:
                                    
12 months or less
    
149
    
$
130,567
    
$
(14,097
)
    
88
    
$
108,387
    
$
(2,452
)
Greater than 12 months
    
23
      
25,739
      
(3,936
)
    
69
      
66,860
      
(1,100
)
Total fixed income securities
    
172
    
$
156,306
    
$
(18,033
)
    
157
    
$
175,247
    
$
(3,552
)
                                                 

The fair value and the cost or amortized costs of fixed income investments at June 30, 2020, organized by contractual maturity, are shown below.  Actual maturities may ultimately 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
  
$
96,464
    
$
95,568
  
Excess of one year to five years
    
319,395
      
306,894
  
Excess of five years to ten years
    
132,463
      
124,972
  
Excess of ten years
    
15,781
      
15,805
  
Contractual maturities
    
564,103
      
543,239
  
Asset-backed securities
    
247,898
      
257,280
  
Total
  
$
812,001
    
$
800,519
  

Following is a summary of the components of net realized and unrealized gains (losses) on investments for the periods presented in the accompanying condensed consolidated statements of operations.

  
Three Months Ended
June 30
    
Six Months Ended
June 30
  
   
2020
    
2019
    
2020
    
2019
  
Gross gains on available-for-sale fixed income securities sold during the period
  
$
2,561
    
$
4,132
    
$
5,213
    
$
7,303
  
Gross losses on available-for-sale fixed income securities sold during the period
    
(149
)
    
(3,154
)
    
(4,890
)
    
(6,681
)
                                 
Impairment losses on investments
    
(418
)
    
(86
)
    
(458
)
    
(346
)
                                 
Change in value of limited partnership investments
    
(587
)
    
314
      
(1,263
)
    
722
  
                                 
Gains on equity securities:
                                
Realized gains (losses) on equity securities sold during the period
    
(6,511
)
    
(265
)
    
(9,209
)
    
51
  
Unrealized gains (losses) on equity securities held at the end of the period
    
15,719
      
1,948
      
(6,534
)
    
7,867
  
Realized and unrealized gains (losses) on equity securities during the period
    
9,208
      
1,683
      
(15,743
)
    
7,918
  
                                 
Net realized and unrealized gains (losses) on investments
  
$
10,615
    
$
2,889
    
$
(17,141
)
  
$
8,916
  

As discussed in Note 1, the Company adopted the provisions of the new CECL model for measuring expected credit losses for available-for-sale fixed income securities as of January 1, 2020.  The updated guidance amended the previous OTTI model for available-for-sale fixed income securities by requiring the recognition of impairments relating to credit losses through an allowance account on the balance sheet with a corresponding adjustment to earnings and limits the amount of credit loss to the difference between a security’s amortized cost basis and its fair value.  For those securities the Company intended to sell as of June 30, 2020, a write down to earnings of $0.4 million and $0.5 million was recorded during the three and six months ended June 30, 2020.  The Company reviewed its remaining fixed income securities in an unrealized loss position as of June 30, 2020 and determined that the losses were primarily the result of non-credit factors, such as the increase in market volatility due to the recent disruption in global financial markets as a result of the novel coronavirus COVID-19 pandemic and responses to it.  The Company currently does not intend to sell nor does it expect to be required to sell these securities before recovery of their amortized cost.  Based on the above factors, the Company did not record any allowance for credit losses related to its available-for-sale fixed income securities under the new guidance in the first six months of 2020.

Shareholders' equity at June 30, 2020 included approximately $3,989, net of federal income tax expense, of reported earnings that remain undistributed by limited partnerships.