Net realized and unrealized gains

3 Months Ended

Mar. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Net realized and unrealized 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, 2022	December 31, 2021
	($000 omitted)
Investments in:
Debt securities	589,396	589,772
Equity securities	103,019	89,442
	692,415	679,214

As of March 31, 2022 and December 31, 2021, the net unrealized investment gains relating to investments in equity securities held were $23.9 million and $21.1 million, respectively (refer to Note 5).

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

	March 31, 2022		December 31, 2021
	Amortized costs	Fair values	Amortized costs	Fair values
	($000 omitted)
Municipal	32,934	33,182	34,739	36,323
Corporate	252,113	248,050	249,757	258,102
Foreign	311,239	301,284	287,240	288,883
U.S. Treasury Bonds	6,925	6,880	6,429	6,464
	603,211	589,396	578,165	589,772

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:

	March 31, 2022		December 31, 2021
	Gains	Losses	Gains	Losses
	($000 omitted)
Municipal	278	30	1,585	1
Corporate	1,778	5,841	9,389	1,044
Foreign	534	10,489	3,285	1,642
U.S. Treasury Bonds	21	66	60	25
	2,611	16,426	14,319	2,712

Debt securities as of March 31, 2022 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	89,611	90,044
After one year through five years	318,078	310,887
After five years through ten years	166,600	159,971
After ten years	28,922	28,494
	603,211	589,396

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, 2022, were:

	Less than 12 months		More than 12 months		Total
	Losses	Fair values	Losses	Fair values	Losses	Fair values
	($000 omitted)
Municipal	30	6,033	—	—	30	6,033
Corporate	4,614	114,478	1,227	11,631	5,841	126,109
Foreign	8,749	236,540	1,740	30,281	10,489	266,821
U.S. Treasury Bonds	42	1,203	24	612	66	1,815
	13,435	358,254	2,991	42,524	16,426	400,778

The number of specific debt investment holdings held in an unrealized loss position as of March 31, 2022 was 197. Of these securities, 19 were in unrealized loss positions for more than 12 months. Gross unrealized investment losses at March 31, 2022 increased compared to December 31, 2021, primarily due to the market volatility influenced by higher interest rates and credit spreads during 2022. 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, 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	588	42,231	456	12,014	1,044	54,245
Foreign	1,502	118,943	140	3,394	1,642	122,337
U.S. Treasury Bonds	8	477	17	508	25	985
	2,099	161,781	613	15,916	2,712	177,697

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

		Three Months Ended   March 31,
		2022	2021
	($000 omitted)
Realized gains		1,594	170
Realized losses		(168)	(2,469)
Net unrealized investment gains recognized on equity securities still held at end of period		2,659	5,573
		4,085	3,274

Net realized gains during the first quarter 2022 included a $1.0 million realized gain related to sale of a title plant copy. Net realized losses during 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,
		2022	2021
	($000 omitted)
Net investment gains recognized on equity securities during the period		2,785	5,582
Less: Net realized gains on equity securities sold during the period		126	9
Net unrealized investment gains recognized on equity securities still held at end of period		2,659	5,573

Proceeds from sales of investments in securities are as follows: 

		Three Months Ended   March 31,
		2022	2021
	($000 omitted)
Proceeds from sales of debt securities		17,280	2,936
Proceeds from sales of equity securities		370	115
Total proceeds from sales of investments in securities		17,650	3,051