Investments in debt and equity securities

6 Months Ended

Jun. 30, 2019

Investments, Debt and Equity Securities [Abstract]

Investments in debt and equity securities

Investments in debt and equity securities. The total fair values of the Company's investments in debt and equity securities are as follows:

	June 30, 2019	December 31, 2018
	($000 omitted)
Investments in:
Debt securities	579,823	602,020
Equity securities	37,526	33,997
	617,349	636,017

As of June 30, 2019 and December 31, 2018, the net unrealized investment gains relating to investments in equity securities held were $6.4 million and $2.9 million, respectively.

The amortized costs and fair values of investments in debt securities are as follows:

	June 30, 2019		December 31, 2018
	Amortized costs	Fair values	Amortized costs	Fair values
	($000 omitted)
Municipal	60,141	61,578	61,779	61,934
Corporate	311,687	319,745	333,289	328,495
Foreign	189,650	192,068	200,667	198,938
U.S. Treasury Bonds	6,537	6,432	12,951	12,653
	568,015	579,823	608,686	602,020

Foreign debt securities consist of Canadian government and corporate bonds, United Kingdom treasury and corporate bonds, and Mexican government bonds.

Gross unrealized gains and losses on investments in debt securities are as follows:

	June 30, 2019		December 31, 2018
	Gains	Losses	Gains	Losses
	($000 omitted)
Municipal	1,439	2	482	327
Corporate	8,184	126	1,894	6,688
Foreign	3,022	604	1,402	3,131
U.S. Treasury Bonds	8	113	2	300
	12,653	845	3,780	10,446

Debt securities as of June 30, 2019 mature, according to their contractual terms, as follows (actual maturities may differ due to call or prepayment rights):

	Amortized costs	Fair values
	($000 omitted)
In one year or less	50,679	50,634
After one year through five years	330,611	335,702
After five years through ten years	155,433	160,440
After ten years	31,292	33,047
	568,015	579,823

Gross unrealized losses on investments in debt securities and the fair values of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2019, were:

	Less than 12 months		More than 12 months		Total
	Losses	Fair values	Losses	Fair values	Losses	Fair values
	($000 omitted)
Municipal	—	—	2	506	2	506
Corporate	1	80	125	22,619	126	22,699
Foreign	30	21,616	574	59,053	604	80,669
U.S. Treasury Bonds	—	—	113	5,836	113	5,836
	31	21,696	814	88,014	845	109,710

The number of specific debt investment holdings held in an unrealized loss position as of June 30, 2019 was 61. Of these securities, 53 were in unrealized loss positions for more than 12 months. During 2019, the overall gross unrealized losses on debt securities improved compared to the prior year-end, primarily due to reduced interest rates and credit spreads which increased investment fair values. Since the Company does not intend to sell and will more likely than not maintain each investment security until its maturity or anticipated recovery, and no significant credit risk is deemed to exist, these investments are not considered as other-than-temporarily impaired. The Company believes its investment portfolio is diversified and expects no material loss to result from the failure to perform by issuers of the debt securities it holds. Investments made by the Company are not collateralized.

Gross unrealized losses on investments in debt securities and the fair values of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2018, were:

	Less than 12 months		More than 12 months		Total
	Losses	Fair values	Losses	Fair values	Losses	Fair values
	($000 omitted)
Municipal	91	13,366	236	11,645	327	25,011
Corporate	4,416	201,965	2,272	71,044	6,688	273,009
Foreign	158	11,424	2,973	137,793	3,131	149,217
U.S. Treasury Bonds	—	—	300	12,544	300	12,544
	4,665	226,755	5,781	233,026	10,446	459,781