Net realized and unrealized (losses) gains

3 Months Ended

Mar. 31, 2021

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:

	March 31, 2021	December 31, 2020
	($000 omitted)
Investments in:
Debt securities	615,445	631,386
Equity securities	67,354	53,001
	682,799	684,387

As of March 31, 2021 and December 31, 2020, the net unrealized investment gains relating to investments in equity securities held were $9.9 million and $4.4 million, respectively (refer to Note 5).

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

	March 31, 2021		December 31, 2020
	Amortized costs	Fair values	Amortized costs	Fair values
	($000 omitted)
Municipal	42,015	44,089	45,138	47,603
Corporate	276,870	289,159	285,962	305,450
Foreign	269,792	275,585	261,748	271,711
U.S. Treasury Bonds	6,567	6,612	6,564	6,622
	595,244	615,445	599,412	631,386

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:

	March 31, 2021		December 31, 2020
	Gains	Losses	Gains	Losses
	($000 omitted)
Municipal	2,077	3	2,465	—
Corporate	13,124	835	19,594	106
Foreign	6,572	779	10,024	61
U.S. Treasury Bonds	70	25	82	24
	21,843	1,642	32,165	191

Debt securities as of March 31, 2021 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	58,344	59,145
After one year through five years	311,487	321,937
After five years through ten years	194,553	201,439
After ten years	30,860	32,924
	595,244	615,445

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 March 31, 2021, were:

	Less than 12 months		More than 12 months		Total
	Losses	Fair values	Losses	Fair values	Losses	Fair values
	($000 omitted)
Municipal	3	130	—	—	3	130
Corporate	835	27,208	—	—	835	27,208
Foreign	756	65,568	23	254	779	65,822
U.S. Treasury Bonds	1	109	24	1,022	25	1,131
	1,595	93,015	47	1,276	1,642	94,291

The number of specific debt investment holdings held in an unrealized loss position as of March 31, 2021 was 47. Of these securities, 3 were in unrealized loss positions for more than 12 months. 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, 2020, were:

	Less than 12 months		More than 12 months		Total
	Losses	Fair values	Losses	Fair values	Losses	Fair values
	($000 omitted)
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

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

		Three Months Ended   March 31,
		2021	2020
	($000 omitted)
Realized gains		170	153
Realized losses		(2,469)	(690)
Net unrealized investment (losses) gains recognized on equity securities still held at end of period		5,573	(10,554)
		3,274	(11,091)

Net realized losses for the first quarter 2021 included a $2.5 million loss related to a disposal of an equity method investment.

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

		Three Months Ended   March 31,
		2021	2020
	($000 omitted)
Net investment gains (losses) recognized on equity securities during the period		5,582	(11,061)
Less: Net realized gains (losses) on equity securities sold during the period		9	(507)
Net unrealized investment gains (losses) recognized on equity securities still held at end of period		5,573	(10,554)

Proceeds from sales of investments in securities are as follows: 

		Three Months Ended   March 31,
		2021	2020
	($000 omitted)
Proceeds from sales of debt securities		115	11,503
Proceeds from sales of equity securities		2,936	293
Total proceeds from sales of investments in securities		3,051	11,796