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v3.22.4

Investments | 12 Months Ended
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Dec. 31, 2022
Investments |
Investments | 3. Investments The Company’s available-for-sale investments are summarized as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ | ​ |  | Gross |  | Gross |  | ​ | ​
​ | ​ | Amortized | ​ | Unrealized | ​ | Unrealized | ​ | Fair
December 31, 2022 | ​ | Cost or Cost | ​ | Gains | ​ | Losses | ​ | Value
​ |  | (in thousands)
Fixed maturities: |  | ​ | ​ |  | ​ |  |  | ​ |  |  | ​ |
U.S. Governments | ​ | $ | 50,802 | ​ | $ | 2 | ​ | $ | (2,253) | ​ | $ | 48,551
States, territories, and possessions | ​ |  | 5,857 | ​ |  | 49 | ​ | ​ | (552) | ​ |  | 5,354
Political subdivisions | ​ |  | 4,919 | ​ |  | — | ​ |  | (621) | ​ |  | 4,298
Special revenue excluding mortgage/asset-backed securities | ​ |  | 37,260 | ​ |  | 26 | ​ |  | (4,487) | ​ |  | 32,799
Industrial and miscellaneous | ​ |  | 278,164 | ​ |  | 79 | ​ | ​ | (24,148) | ​ |  | 254,095
Mortgage/asset-backed securities | ​ |  | 184,578 | ​ |  | 251 | ​ |  | (14,862) | ​ |  | 169,967
Total available-for-sale investments | ​ | $ | 561,580 | ​ | $ | 407 | ​ | $ | (46,923) | ​ | $ | 515,064
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ | ​ |  | Gross |  | Gross |  | ​ | ​
​ | ​ | Amortized | ​ | Unrealized | ​ | Unrealized | ​ | Fair
December 31, 2021 | ​ | Cost or Cost | ​ | Gains | ​ | Losses | ​ | Value
​ |  | (in thousands)
Fixed maturities: |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
U.S. Governments | ​ | $ | 16,713 | ​ | $ | 347 | ​ | $ | (190) | ​ | $ | 16,870
States, territories, and possessions | ​ |  | 3,789 | ​ |  | 288 | ​ |  | (63) | ​ |  | 4,014
Political subdivisions | ​ |  | 6,295 | ​ |  | 107 | ​ |  | (22) | ​ |  | 6,380
Special revenue excluding mortgage/asset-backed securities | ​ |  | 43,301 | ​ |  | 1,273 | ​ |  | (76) | ​ |  | 44,498
Industrial and miscellaneous | ​ |  | 245,064 | ​ |  | 5,873 | ​ | ​ | (1,891) | ​ |  | 249,046
Mortgage/asset-backed securities | ​ |  | 110,960 | ​ |  | 1,377 | ​ |  | (463) | ​ |  | 111,874
Total available-for-sale investments | ​ | $ | 426,122 | ​ | $ | 9,265 | ​ | $ | (2,705) | ​ | $ | 432,682
​ Security holdings in an unrealized loss position As of December 31, 2022, the Company held 543 fixed maturity securities in an unrealized loss position with a total estimated fair value of $484.7 million and total gross unrealized losses of $46.9 million. None of the fixed maturity securities with unrealized losses has ever missed, or been delinquent on, a scheduled principal or interest payment. As of December 31, 2021, the Company held 231 fixed maturity securities in an unrealized loss position with a total estimated fair value of $170.1 million and total gross unrealized losses of $2.7 million. None of the fixed maturity securities with unrealized losses has ever missed, or been delinquent on, a scheduled principal or interest payment. The aggregate fair value and gross unrealized losses of the Company’s investments aggregated by investment category and the length of time these individual securities have been in a continuous unrealized loss position as of December 31, 2022 and 2021, are as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Less Than 12 Months | ​ | More Than 12 Months | ​ | Total
​ |  | Fair |  | Unrealized |  | Fair |  | Unrealized |  | Fair |  | Unrealized
December 31, 2022 | ​ | Value | ​ | Losses | ​ | Value | ​ | Losses | ​ | Value | ​ | Losses
​ | ​ | (in thousands)
Fixed maturity securities: |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
U.S. Governments |  | $ | 41,077 | ​ | $ | (1,523) | ​ | $ | 6,853 | ​ | $ | (730) | ​ | $ | 47,930 | ​ | $ | (2,253)
States, territories, and possessions |  | ​ | 3,227 | ​ | ​ | (552) | ​ |  | — | ​ |  | — | ​ |  | 3,227 | ​ |  | (552)
Political subdivisions |  | ​ | 4,298 | ​ | ​ | (621) | ​ |  | — | ​ |  | — | ​ |  | 4,298 | ​ |  | (621)
Special revenue excluding mortgage/asset-backed securities |  | ​ | 25,091 | ​ | ​ | (3,287) | ​ |  | 5,080 | ​ |  | (1,200) | ​ |  | 30,171 | ​ |  | (4,487)
Industrial and miscellaneous |  | ​ | 192,185 | ​ | ​ | (15,667) | ​ |  | 55,605 | ​ |  | (8,481) | ​ |  | 247,790 | ​ |  | (24,148)
Mortgage/asset-backed securities |  | ​ | 118,815 | ​ | ​ | (9,908) | ​ |  | 32,448 | ​ |  | (4,954) | ​ |  | 151,263 | ​ |  | (14,862)
Total | ​ | $ | 384,693 | ​ | $ | (31,558) | ​ | $ | 99,986 | ​ | $ | (15,365) | ​ | $ | 484,679 | ​ | $ | (46,923)
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Less Than 12 Months | ​ | More Than 12 Months | ​ | Total
​ |  | Fair |  | Unrealized |  | Fair |  | Unrealized |  | Fair |  | Unrealized
December 31, 2021 | ​ | Value | ​ | Losses | ​ | Value | ​ | Losses | ​ | Value | ​ | Losses
​ | ​ | (in thousands)
Fixed maturity securities: |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
U.S. Governments | ​ | $ | 5,968 | ​ | $ | (147) | ​ | $ | 1,457 | ​ | $ | (43) | ​ | $ | 7,425 | ​ | $ | (190)
States, territories, and possessions | ​ |  | 1,444 | ​ | ​ | (63) | ​ |  | — | ​ |  | — | ​ |  | 1,444 | ​ |  | (63)
Political subdivisions | ​ |  | 1,815 | ​ | ​ | (22) | ​ |  | — | ​ |  | — | ​ |  | 1,815 | ​ |  | (22)
Special revenue excluding mortgage/asset-backed securities | ​ |  | 6,280 | ​ | ​ | (76) | ​ |  | — | ​ |  | — | ​ |  | 6,280 | ​ |  | (76)
Industrial and miscellaneous | ​ |  | 94,020 | ​ | ​ | (1,468) | ​ |  | 5,570 | ​ |  | (423) | ​ |  | 99,590 | ​ |  | (1,891)
Mortgage/asset-backed securities | ​ |  | 51,246 | ​ | ​ | (412) | ​ |  | 2,319 | ​ |  | (51) | ​ |  | 53,565 | ​ |  | (463)
Total | ​ | $ | 160,773 | ​ | $ | (2,188) | ​ | $ | 9,346 | ​ | $ | (517) | ​ | $ | 170,119 | ​ | $ | (2,705)
​ ​ The Company reviewed the above securities at each balance sheet date to consider whether it was necessary to recognize a credit loss related to any of these securities. An immaterial allowance for credit losses was recorded pertaining to one investment security as of December 31, 2022 and 2021. For the remaining securities, the Company determined that the fixed maturity securities’ unrealized losses were primarily the result of the interest rate environment and not the credit quality of the issuers. The Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before the recovery of their amortized cost basis. Contractual maturities of available-for-sale fixed maturity securities The amortized cost and fair value of fixed maturity securities at December 31, 2022, by contractual maturity, are shown below. ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Amortized |  | Fair
​ | ​ | Cost | ​ | Value
​ |  | (in thousands)
Due within one year | ​ | $ | 41,686 | ​ | $ | 41,106
Due after one year through five years | ​ |  | 182,785 | ​ |  | 170,399
Due after five years through ten years | ​ |  | 126,990 | ​ |  | 112,822
Due after ten years | ​ |  | 25,541 | ​ |  | 20,770
Mortgage and asset-backed securities | ​ |  | 184,578 | ​ |  | 169,967
​ | ​ | $ | 561,580 | ​ | $ | 515,064
​ Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations. Change in unrealized gains (losses) of investments The following table presents the change in available-for-sale gross unrealized gains or losses by investment type: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended December 31,
​ |  | 2022 |  | 2021 |  | 2020
​ | ​ | (in thousands)
Change in net unrealized gains (losses) | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
Fixed maturities | ​ | $ | (53,076) | ​ | $ | (10,148) | ​ | $ | 10,835
Net increase (decrease) | ​ | $ | (53,076) | ​ | $ | (10,148) | ​ | $ | 10,835
​ Net investment income summary Net investment income is summarized as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended December 31,
​ |  | 2022 |  | 2021 |  | 2020
​ |  | (in thousands)
Interest income | ​ | $ | 13,631 | ​ | $ | 9,119 | ​ | $ | 8,554
Dividend income | ​ |  | 739 | ​ |  | 461 | ​ |  | 489
Investment management fees and expenses | ​ |  | (493) | ​ |  | (500) | ​ |  | (431)
Net investment income | ​ | $ | 13,877 | ​ | $ | 9,080 | ​ | $ | 8,612
​ Net realized and unrealized investment gains and losses The following table presents net realized and unrealized investment gains and losses: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended
​ | ​ | December 31,
​ |  | 2022 |  | 2021 |  | 2020
​ | ​ |  | (in thousands)
Realized gains: | ​ |  |  | ​ |  |  | ​ |  |
Gains on sales of fixed maturity securities | ​ | $ | 14 | ​ | $ | 466 | ​ | $ | 501
Gains on sales of equity securities | ​ |  | — | ​ |  | 1,416 | ​ |  | 62
Total realized gains | ​ |  | 14 | ​ |  | 1,882 | ​ |  | 563
Realized losses: | ​ |  |  | ​ |  |  | ​ |  |
Losses on sales of fixed maturity securities | ​ |  | (2,340) | ​ | ​ | (1) | ​ | ​ | (46)
Losses on sales of equity securities | ​ |  | — | ​ | ​ | — | ​ | ​ | (68)
Total realized losses | ​ |  | (2,340) | ​ |  | (1) | ​ |  | (114)
Net realized investment gains (losses) | ​ |  | (2,326) | ​ |  | 1,881 | ​ |  | 449
Net unrealized gains (losses) on equity securities | ​ |  | (5,203) | ​ |  | (604) | ​ |  | 1,039
Net realized and unrealized gains (losses) on investments | ​ | $ | (7,529) | ​ | $ | 1,277 | ​ | $ | 1,488
​ Proceeds from the sale of fixed maturity securities were $19.7 million, $17.4 million and $39.8 million for the years ended December 31, 2022, 2021 and 2020, respectively. The Company places securities on statutory deposit with certain state agencies to retain the right to do business in those states. These securities are included in available-for-sale investments on the consolidated balance sheets. At December 31, 2022 and 2021, the carrying value of securities on deposit with state regulatory authorities was $8.5 million and $7.5 million, respectively.

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- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI https://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2176304 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) + Details
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