Investments in debt and equity securities

12 Months Ended

Dec. 31, 2020

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 as of December 31 are detailed below:

	2020	2019
	(in $ thousands)
Investments in:
Debt securities	631,386	605,721
Equity securities	53,001	39,318
	684,387	645,039

As of December 31, 2020 and 2019, included in the above fair values of investments in equity securities were net unrealized investment gains of $4.4 million and $6.9 million, respectively.

The amortized costs and fair values of investments in debt securities as of December 31, are as follows:

	2020		2019
	Amortized costs	Fair values	Amortized costs	Fair values
	(in $ thousands)
Municipal	45,138	47,603	52,176	53,823
Corporate	285,962	305,450	299,074	309,142
Foreign	261,748	271,711	234,734	236,073
U.S. Treasury Bonds	6,564	6,622	6,664	6,683
	599,412	631,386	592,648	605,721

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. Foreign debt securities primarily include Canadian government and corporate bonds, with aggregate fair values of $240.4 million and $206.5 million as of December 31, 2020 and 2019, respectively, and United Kingdom treasury and corporate bonds with aggregate fair values of $25.2 million and $24.1 million as of December 31, 2020 and 2019, respectively.

Gross unrealized gains and losses on investments in debt securities at December 31, were:

	2020		2019
	Gains	Losses	Gains	Losses
	(in $ thousands)
Municipal	2,465	—	1,649	2
Corporate	19,594	106	10,091	23
Foreign	10,024	61	2,362	1,023
U.S. Treasury Bonds	82	24	60	41
	32,165	191	14,162	1,089

Debt securities at December 31, 2020 mature, according to their contractual terms, as follows (actual maturities may differ due to call or prepayment rights):

	Amortized costs	Fair values
	(in $ thousands)
In one year or less	79,668	80,400
After one year through five years	304,610	317,567
After five years through ten years	184,215	198,443
After ten years	30,919	34,976
	599,412	631,386

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, 2020, were:

	Less than 12 months		More than 12 months		Total
	Losses	Fair values	Losses	Fair values	Losses	Fair values
	(in $ thousands)
Municipal	—	—	—	—	—	—
Corporate	106	13,518	—	—	106	13,518
Foreign	40	2,912	21	254	61	3,166
U.S. Treasury Bonds	—	—	24	1,022	24	1,022
	146	16,430	45	1,276	191	17,706

The number of specific debt securities investment holdings in an unrealized loss position as of December 31, 2020 was 12. Of these securities, three 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 credit-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
	(in $ thousands)
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

Investment income and net realized and unrealized gains. Income from investments and net realized and unrealized gains for the years ended December 31 are detailed below:

	2020	2019	2018
	(in $ thousands)
Investment income:
Debt securities	15,026	15,580	17,431
Short-term investments, cash equivalents and other	3,581	4,215	2,306
	18,607	19,795	19,737
Net realized and unrealized (losses) gains:
Realized gains	2,231	53,465	2,698
Realized losses	(1,598)	(14,747)	(483)
Net unrealized investment (losses) gains recognized on equity securities still held	(2,311)	4,042	(2,162)
	(1,678)	42,760	53

In 2020, net realized and unrealized losses included $2.3 million of net unrealized investment losses on equity securities held at year-end and $0.6 million of net realized losses from sales of securities investments, partially offset by $1.2 million of realized gains from settlements of equity investments with no previously readily determinable fair values (cost-basis investments).

In 2019, net realized and unrealized gains included a $50.0 million gain related to the fee received from the terminated merger with Fidelity National Financial, Inc. (FNF), $4.0 million of net unrealized investment gains on equity securities held at year-end and $2.5 million of realized gains from sales of securities investments, partially offset by $14.7 million of impairment expenses primarily related to title plants, buildings, intangible assets, equity-method investments and other assets.

In 2018, net realized and unrealized gains included $1.3 million of realized gains from settlements of cost-basis investments and $2.2 million of net unrealized investment losses on equity securities held at year-end.

Net investment gains and losses recognized for the years ended December 31 related to investments in equity securities are follows:

	2020	2019	2018
	(in $ thousands)
Total net investment (losses) gains recognized on equity securities during the period	(3,137)	4,825	(2,538)
Less: Net realized (losses) gains on equity securities sold during the period	(826)	783	(376)
Net unrealized investment (losses) gains recognized on equity securities still held at December 31	(2,311)	4,042	(2,162)

Proceeds from sales of investments in securities for the years ended December 31 are as follows:

	2020	2019	2018
	(in $ thousands)
Proceeds from sales of debt securities	36,449	46,834	43,556
Proceeds from sales of equity securities	791	3,771	5,886
Total proceeds from sales of investments in securities	37,240	50,605	49,442