Note 5: Investment Securities

The amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of fixed-maturity securities held in trust at December 31, 2013, are as follows:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Trading Securities:
Obligations of U.S. government sponsored enterprises	$	15,868	$	127	$	(163)	$	15,832
Corporate debt securities		80,624		1,450		(182)		81,892
Commercial paper		98,929		4		(1)		98,932
Foreign corporate debt securities		22,166		149		(170)		22,145

Total fixed-maturity securities		217,587		1,730		(516)		218,801
Less total unrestricted fixed-maturity securities—trading		7,326		232		(13)		7,545
Less total unrestricted fixed-maturity securities—held to maturity		65,352		—		—		65,352

Total fixed-maturity securities held in trust	$	144,909	$	1,498	$	(503)	$	145,904

The amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of fixed-maturity securities held in trust at December 31, 2012, are as follows:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Trading Securities:
Obligations of U.S. government sponsored enterprises	$	97,103	$	1,416	$	(156)	$	98,363
Corporate debt securities		91,997		3,010		(34)		94,973
Commercial paper		54,949		—		—		54,949
Foreign corporate debt securities		18,305		379		(18)		18,666
Commercial mortgage-backed securities		10,541		64		(87)		10,518

Total fixed-maturity securities		272,895		4,869		(295)		277,469
Less total unrestricted fixed-maturity securities—trading		14,246		168		(18)		14,396
Less total unrestricted fixed-maturity securities—held to maturity		61,413		—		—		61,413

Total fixed-maturity securities held in trust	$	197,236	$	4,701	$	(277)	$	201,660

Amortized cost and estimated fair value of fixed-maturity securities at December 31, 2013 by contractual maturity are as follows:


	Amortized Cost		Estimated Fair Value
Maturity in:
2014	$	120,536	$	120,604
2015-2018		92,692		93,944
2019-2023		4,359		4,253
Thereafter		—		—

Total fixed-maturity securities	$	217,587	$	218,801

Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

Net investment income (loss) for the periods ending December 31, 2013, 2012 and 2011, respectively, is summarized as follows:


	Successor		Successor		Predecessor		Predecessor
	Year Ended December 31, 2013		Period from March 20, 2012 through December 31, 2012		Period from January 1, 2012 through March 19, 2012		Year ended December 31, 2011
Investment income (loss):
Amortization of premium or discount on fixed-maturity securities	$	(2,309)	$	(1,837)	$	(523)	$	(2,750)
Investment income on fixed-maturity securities		6,588		7,232		2,467		12,920
Interest income on cash and equivalents		10		161		3		49
Realized net gain (loss) from sale of investments		(1,575)		2,747		176		1,206
Unrealized (losses) gains on trading securities held at period end		(3,492)		(1,410)		1,049		(2,828)

Net investment income (loss)	$	(778)	$	6,893	$	3,172	$	8,597

The following tables show how the Company’s investments are categorized in accordance with fair value measurement, as of December 31, 2013 and 2012, respectively:


	December 31, 2013
	Level 1		Level 2		Level 3		Total
Class of Security:
Obligations of U.S. government sponsored enterprises	$	6,299	$	9,533	$	—	$	15,832
Corporate debt securities		11,891		70,001		—		81,892
Commercial paper		98,932		—		—		98,932
Foreign corporate debt securities		7,652		14,493		—		22,145

Total fixed maturity securities		124,774		94,027		—		218,801
Money market funds		44,863		—		—		44,863

Total	$	169,637	$	94,027	$	—	$	263,664


	December 31, 2012
	Level 1		Level 2		Level 3		Total
Class of Security:
Obligations of U.S. government sponsored enterprises	$	11,362	$	87,001	$	—	$	98,363
Corporate debt securities		22,833		72,141		—		94,974
Commercial paper		54,948		—		—		54,948
Foreign corporate debt securities		1,001		17,665		—		18,666
Commercial mortgage-backed securities		—		10,518		—		10,518

Total fixed maturity securities		90,144		187,325		—		277,469
Money market funds		33,628		—		—		33,628

Total	$	123,772	$	187,325	$	—	$	311,097

A review of the fair value hierarchy classifications of the Company’s investments is conducted quarterly. Changes in the observability of valuation inputs may result in a reclassification for certain financial assets or liabilities. Reclassifications are reported as transfers in or transfers out of the applicable Level at end of the calendar quarter in which the reclassifications occur. During the years ended December 31, 2013 and 2012, $7.1 million and $17.7 million, respectively, of investments were transferred from Level 2 to Level 1 as a result of improving market conditions for short-term and investment grade corporate securities.


	2013				2012
	Transfers from Level 1 to Level 2		Transfers from Level 2 to Level 1		Transfers from Level 1 to Level 2		Transfers from Level 2 to Level 1
Class of Securities:
Corporate securities	$	—	$	4,598	$	—	$	16,745
Foreign corporate debt securities		—		2,537		—		1,001

Total Transfers	$	—	$	7,135	$	—	$	17,746