Net realized and unrealized gains

6 Months Ended

Jun. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Net realized and unrealized gains

Investments in debt and equity securities. As of June 30, 2023 and December 31, 2022, the net unrealized investment gains relating to investments in equity securities held were $13.6 million and $19.2 million, respectively (refer to Note 5).

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

	June 30, 2023		December 31, 2022
	Amortized costs	Fair values	Amortized costs	Fair values
	($000 omitted)
Municipal	26,273	25,949	30,104	29,835
Corporate	249,888	233,200	272,362	254,316
Foreign	326,937	311,354	315,184	299,137
U.S. Treasury Bonds	32,149	31,424	29,078	28,646
	635,247	601,927	646,728	611,934

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:

	June 30, 2023		December 31, 2022
	Gains	Losses	Gains	Losses
	($000 omitted)
Municipal	1	325	3	272
Corporate	433	17,121	489	18,535
Foreign	293	15,876	165	16,212
U.S. Treasury Bonds	12	737	21	453
	739	34,059	678	35,472

Debt securities as of June 30, 2023 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	90,765	88,947
After one year through five years	357,970	337,352
After five years through ten years	171,140	162,291
After ten years	15,372	13,337
	635,247	601,927

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, 2023, were:

	Less than 12 months		More than 12 months		Total
	Losses	Fair values	Losses	Fair values	Losses	Fair values
	($000 omitted)
Municipal	191	20,666	134	4,033	325	24,699
Corporate	1,990	50,979	15,131	165,730	17,121	216,709
Foreign	1,335	84,849	14,541	206,510	15,876	291,359
U.S. Treasury Bonds	656	28,748	81	1,278	737	30,026
	4,172	185,242	29,887	377,551	34,059	562,793

The number of specific debt investment holdings held in an unrealized loss position as of June 30, 2023 was 356. Of these securities, 216 were in unrealized loss positions for more than 12 months. Total gross unrealized investment losses at June 30, 2023 slightly improved compared to December 31, 2022 primarily due to slower interest rate increases during 2023. 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, 2022, were:

	Less than 12 months		More than 12 months		Total
	Losses	Fair values	Losses	Fair values	Losses	Fair values
	($000 omitted)
Municipal	262	27,491	10	67	272	27,558
Corporate	12,935	193,239	5,600	44,342	18,535	237,581
Foreign	7,608	186,221	8,604	101,294	16,212	287,515
U.S. Treasury Bonds	413	25,102	40	445	453	25,547
	21,218	432,053	14,254	146,148	35,472	578,201

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

	Three Months Ended   June 30,		Six Months Ended   June 30,
	2023	2022	2023	2022
	($000 omitted)
Realized gains	278	1,683	339	3,277
Realized losses	(3,430)	(3,671)	(4,177)	(3,839)
Net unrealized investment gains (losses) recognized on equity securities still held at end of period	2,047	(9,917)	955	(7,258)
	(1,105)	(11,905)	(2,883)	(7,820)

Realized losses during the second quarter and first six months of 2023 included a $3.2 million contingent receivable loss adjustment resulting from a previous disposition of a business, while realized gains and losses during the second quarter and first six months of 2022 included a loss of $3.6 million from the same disposition of a business, partially offset by a $1.0 million gain from an acquisition contingent liability adjustment.

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

	Three Months Ended   June 30,		Six Months Ended   June 30,
	2023	2022	2023	2022
	($000 omitted)
Net investment gains (losses) recognized on equity securities during the period	1,988	(9,366)	232	(6,795)
Less: Net realized (losses) gains on equity securities sold during the period	(59)	551	(723)	463
Net unrealized investment gains (losses) recognized on equity securities still held at end of period	2,047	(9,917)	955	(7,258)

Proceeds from sales of investments in securities are as follows: 

	Three Months Ended   June 30,		Six Months Ended   June 30,
	2023	2022	2023	2022
	($000 omitted)
Proceeds from sales of debt securities	7,433	11,002	14,879	28,282
Proceeds from sales of equity securities	5,283	117	24,609	487
Total proceeds from sales of investments in securities	12,716	11,119	39,488	28,769