Net realized and unrealized (losses) gains

6 Months Ended

Jun. 30, 2020

Investments, Debt and Equity Securities [Abstract]

Net realized and unrealized (losses) gains

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, 2020	December 31, 2019
	($000 omitted)
Investments in:
Debt securities	612,891	605,721
Equity securities	32,456	39,318
	645,347	645,039

As of June 30, 2020 and December 31, 2019, the net unrealized investment gains relating to investments in equity securities held were $0.4 million and $6.9 million, respectively (refer to Note 5).

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

	June 30, 2020		December 31, 2019
	Amortized costs	Fair values	Amortized costs	Fair values
	($000 omitted)
Municipal	47,635	50,068	52,176	53,823
Corporate	301,299	319,972	299,074	309,142
Foreign	226,561	236,224	234,734	236,073
U.S. Treasury Bonds	6,559	6,627	6,664	6,683
	582,054	612,891	592,648	605,721

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, 2020		December 31, 2019
	Gains	Losses	Gains	Losses
	($000 omitted)
Municipal	2,434	1	1,649	2
Corporate	18,926	253	10,091	23
Foreign	9,680	17	2,362	1,023
U.S. Treasury Bonds	92	24	60	41
	31,132	295	14,162	1,089

Debt securities as of June 30, 2020 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	69,702	70,474
After one year through five years	313,470	326,654
After five years through ten years	165,852	179,896
After ten years	33,030	35,867
	582,054	612,891

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, 2020, were:

	Less than 12 months		More than 12 months		Total
	Losses	Fair values	Losses	Fair values	Losses	Fair values
	($000 omitted)
Municipal	1	53	—	—	1	53
Corporate	253	7,618	—	—	253	7,618
Foreign	—	—	17	231	17	231
U.S. Treasury Bonds	—	—	24	1,022	24	1,022
	254	7,671	41	1,253	295	8,924

The number of specific debt investment holdings held in an unrealized loss position as of June 30, 2020 was 8. Of these securities, 3 were in unrealized loss positions for more than 12 months. During 2020, the overall investment fair values increased, primarily resulting from the effect of lower interest rates which was partially offset by increased credit spreads. 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, 2019, were:

	Less than 12 months		More than 12 months		Total
	Losses	Fair values	Losses	Fair values	Losses	Fair values
	($000 omitted)
Municipal	2	53	—	—	2	53
Corporate	23	7,420	—	—	23	7,420
Foreign	318	92,108	705	55,875	1,023	147,983
U.S. Treasury Bonds	—	—	41	2,215	41	2,215
	343	99,581	746	58,090	1,089	157,671

Net realized and unrealized gains (losses). Realized and unrealized gains and losses are detailed as follows:

	Three Months Ended   June 30,				Six Months Ended   June 30,
	2020		2019		2020		2019
	($000 omitted)
Realized gains	1,355		791		1,508		953
Realized losses	(657	)	(59	)	(1,347	)	(363	)
Net unrealized investment gains (losses) recognized on equity securities still held at June 30	4,366		(310	)	(6,188	)	3,236
	5,064		422		(6,027	)	3,826

Realized gains for the second quarter 2020 and 2019 included $1.1 million and $0.7 million, respectively, of gains from settlements of equity investments with no previously readily determinable fair values (cost-basis investments). Realized losses for the second quarter and first six months of 2020 included $0.6 million and $1.2 million, respectively, of losses from the sale of investment securities.

Investment gains and losses recognized related to investments in equity securities are as follows:

	Three Months Ended   June 30,				Six Months Ended   June 30,
	2020		2019		2020		2019
	($000 omitted)
Net investment gains (losses) recognized on equity securities during the period	3,966		(264	)	(7,095	)	3,393
Less: Net realized (losses) gains on equity securities sold during the period	(400	)	46		(907	)	157
Net unrealized investment gains (losses) recognized on equity securities still held at June 30	4,366		(310	)	(6,188	)	3,236

Proceeds from sales of investments in securities are as follows: 

	Three Months Ended   June 30,		Six Months Ended   June 30,
	2020	2019	2020	2019
	($000 omitted)
Proceeds from sales of debt securities	3,270	2,734	14,773	9,052
Proceeds from sales of equity securities	433	260	726	900
Total proceeds from sales of investments in securities	3,703	2,994	15,499	9,952