Investments

We have designated our investment portfolio as available-for-sale and report it at fair value. The related unrealized gains and losses are, after considering the related tax expense or benefit, recognized as a component of accumulated other comprehensive loss in shareholders' equity. Net realized investment gains and losses are reported in income based upon specific identification of securities sold.

Fair Values and Gross Unrealized Gains and Losses on Investments



	Amortized Cost		Gross Unrealized					Fair Value
	Amortized Cost		Gains		Losses			Fair Value
As of September 30, 2015	(In Thousands)
U.S. Treasury securities and obligations of U.S. government agencies	$	68,243	$	86	$	(106	)	$	68,223
Municipal debt securities	11,001		7		(24		)	10,984
Corporate debt securities	179,650		486		(2,793		)	177,343
Asset-backed securities	57,745		288		(128		)	57,905
Total investments	$	316,639	$	867	$	(3,051	)	$	314,455



	Amortized Cost		Gross Unrealized					Fair Value
	Amortized Cost		Gains		Losses			Fair Value
As of December 31, 2014	(In Thousands)
U.S. Treasury securities and obligations of U.S. government agencies	$	68,911	$	7	$	(573	)	$	68,345
Municipal debt securities	12,009		27		(73		)	11,963
Corporate debt securities	200,358		883		(1,456		)	199,785
Asset-backed securities	56,440		222		(254		)	56,408
Total investments	$	337,718	$	1,139	$	(2,356	)	$	336,501

Scheduled Maturities

The amortized cost and fair values of available for sale securities at September 30, 2015 and December 31, 2014, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Because most asset-backed securities provide for periodic payments throughout their lives, they are listed below in separate categories.



As of September 30, 2015	Amortized Cost		Fair Value
	(In Thousands)
Due in one year or less	$	17,951	$	17,971
Due after one through five years	149,970		150,086
Due after five through ten years	72,232		70,149
Due after ten years	18,741		18,344
Asset-backed securities	57,745		57,905
Total investments	$	316,639	$	314,455



As of December 31, 2014	Amortized Cost		Fair Value
	(In Thousands)
Due in one year or less	$	6,110	$	6,125
Due after one through five years	195,492		194,472
Due after five through ten years	54,360		53,891
Due after ten years	25,316		25,605
Asset-backed securities	56,440		56,408
Total investments	$	337,718	$	336,501

Aging of Unrealized Losses

At September 30, 2015, the investment portfolio had gross unrealized losses of $3.1 million, $0.5 million of which has been in an unrealized loss position for a period of 12 months or greater. We did not consider these securities to be other-than-temporarily impaired as of September 30, 2015. We based our conclusion that these investments were not other-than-temporarily impaired at September 30, 2015 on the following facts: (i) the unrealized losses were primarily caused by interest rate movements since the purchase date; (ii) we do not intend to sell these investments; and (iii) we do not believe that it is more likely than not that we will be required to sell these investments before recovery of our amortized cost basis, which may not occur until maturity. For those securities in an unrealized loss position, the length of time the securities were in such a position is as follows:



	Less Than 12 Months						12 Months or Greater						Total
	# of Securities	Fair Value		Unrealized Losses			# of Securities	Fair Value		Unrealized Losses			# of Securities	Fair Value		Unrealized Losses
As of September 30, 2015		(Dollars in Thousands)
U.S. Treasury securities and obligations of U.S. government agencies	2	$	12,740	$	(57	)	4	$	19,990	$	(49	)	6	$	32,730	$	(106	)
Municipal debt securities	—	—		—			2	4,976		(24		)	2	4,976		(24		)
Corporate debt securities	34	96,420		(2,473		)	5	13,589		(320		)	39	110,009		(2,793		)
Assets-backed securities	5	8,773		(71		)	3	9,273		(57		)	8	18,046		(128		)
Total investments	41	$	117,933	$	(2,601	)	14	$	47,828	$	(450	)	55	$	165,761	$	(3,051	)



	Less Than 12 Months						12 Months or Greater						Total
	# of Securities	Fair Value		Unrealized Losses			# of Securities	Fair Value		Unrealized Losses			# of Securities	Fair Value		Unrealized Losses
As of December 31, 2014		(Dollars in Thousands)
U.S. Treasury securities and obligations of U.S. government agencies	4	$	7,228	$	(33	)	10	$	49,884	$	(540	)	14	$	57,112	$	(573	)
Municipal debt securities	1	3,232		(18		)	1	1,695		(55		)	2	4,927		(73		)
Corporate debt securities	26	60,334		(559		)	22	65,806		(897		)	48	126,140		(1,456		)
Assets-backed securities	3	10,614		(57		)	4	20,047		(197		)	7	30,661		(254		)
Total investments	34	$	81,408	$	(667	)	37	$	137,432	$	(1,689	)	71	$	218,840	$	(2,356	)

Net Investment Income

For the three and nine months ended September 30, 2015, net investment income was comprised of $2.0 million and $5.5 million of investment income from fixed maturities and $0.1 million and $0.3 million of investment expenses, respectively, compared to $1.5 million and $4.7 million of investment income from fixed maturities and $0.1 million and $0.4 million of investment expenses for the three and nine months ended September 30, 2014, respectively.

As of September 30, 2015 and December 31, 2014, there were approximately $7.0 million of cash and investments in the form of U.S. Treasury securities on deposit with various state insurance departments to satisfy regulatory requirements.

Net Realized Investment Gains (Losses)



	For the three months ended September 30,						For the nine months ended September 30,
	2015			2014			2015			2014
	(In Thousands)
Gross realized investment gains	$	266		$	566		$	1,526		$	566
Gross realized investment losses	(281		)	(432		)	(574		)	(432		)
Net realized investment (losses) gains	$	(15	)	$	134		$	952		$	134