Investments in debt and equity securities

9 Months Ended

Sep. 30, 2021

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:

	September 30, 2021	December 31, 2020
	($000 omitted)
Investments in:
Debt securities	617,278	631,386
Equity securities	83,441	53,001
	700,719	684,387

As of September 30, 2021 and December 31, 2020, the net unrealized investment gains relating to investments in equity securities held were $13.9 million and $4.4 million, respectively (refer to Note 5).

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

	September 30, 2021		December 31, 2020
	Amortized costs	Fair values	Amortized costs	Fair values
	($000 omitted)
Municipal	38,088	39,885	45,138	47,603
Corporate	280,090	292,119	285,962	305,450
Foreign	274,938	278,808	261,748	271,711
U.S. Treasury Bonds	6,426	6,466	6,564	6,622
	599,542	617,278	599,412	631,386

Foreign debt securities consist of Canadian government, provincial 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:

	September 30, 2021		December 31, 2020
	Gains	Losses	Gains	Losses
	($000 omitted)
Municipal	1,798	1	2,465	—
Corporate	12,630	601	19,594	106
Foreign	4,784	914	10,024	61
U.S. Treasury Bonds	60	20	82	24
	19,272	1,536	32,165	191

Debt securities as of September 30, 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	64,866	65,678
After one year through five years	363,235	371,531
After five years through ten years	140,784	146,686
After ten years	30,657	33,383
	599,542	617,278

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 September 30, 2021, were:

	Less than 12 months		More than 12 months		Total
	Losses	Fair values	Losses	Fair values	Losses	Fair values
	($000 omitted)
Municipal	1	130	—	—	1	130
Corporate	395	40,219	206	4,933	601	45,152
Foreign	888	83,259	26	246	914	83,505
U.S. Treasury Bonds	3	482	17	508	20	990
	1,287	124,090	249	5,687	1,536	129,777

The number of specific debt investment holdings held in an unrealized loss position as of September 30, 2021 was 70. Of these securities, 7 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 in value, 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, 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 gains (losses). Realized and unrealized gains and losses are detailed as follows:

	Three Months Ended   September 30,		Nine Months Ended   September 30,
	2021	2020	2021	2020
	($000 omitted)
Realized gains	2,615	241	10,695	1,749
Realized losses	(47)	(209)	(2,516)	(1,556)
Net unrealized investment gains (losses) recognized on equity securities still held at end of period	319	(39)	9,637	(6,228)
	2,887	(7)	17,816	(6,035)

Realized gains and losses during the third quarter 2021 included a $2.5 million gain related to an acquisition contingent liability adjustment. Additionally, realized gains and losses for the first nine months of 2021 included $7.3 million of gains on sales of buildings and a $2.5 million loss related to a disposal of an equity method investment. Realized gains and losses for the first nine months of 2020 included $1.3 million of gains from settlements of equity investments with no previously readily determinable fair values (cost-basis investments) and $1.1 million of net realized losses from sale of investment securities.

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

	Three Months Ended   September 30,		Nine Months Ended   September 30,
	2021	2020	2021	2020
	($000 omitted)
Net investment gains (losses) recognized on equity securities during the period	345	(41)	9,706	(7,136)
Less: Net realized gains (losses) on equity securities sold during the period	26	(2)	69	(908)
Net unrealized investment gains (losses) recognized on equity securities still held at end of period	319	(39)	9,637	(6,228)

Proceeds from sales of investments in securities are as follows: 

	Three Months Ended   September 30,		Nine Months Ended   September 30,
	2021	2020	2021	2020
	($000 omitted)
Proceeds from sales of debt securities	4,854	10,218	19,425	24,990
Proceeds from sales of equity securities	128	56	301	782
Total proceeds from sales of investments in securities	4,982	10,274	19,726	25,772