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Investments | 6 Months Ended
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Jun. 30, 2019
Investments, Debt and Equity Securities [Abstract] |
Investments | 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 through comprehensive income and loss, and on an accumulated basis in shareholders' equity. Net realized investment gains and losses are reported in earnings based on specific identification of securities sold or other-than-temporarily impaired. Fair Values and Gross Unrealized Gains and Losses on Investments
| Amortized Cost |  | Gross Unrealized |  | Fair Value
|  | Gains |  | Losses |
As of June 30, 2019 | (In Thousands)
U.S. Treasury securities and obligations of U.S. government agencies | $ | 48,193 |  |  | $ | 688 |  |  | $ | (116 | ) |  | $ | 48,765 |
Municipal debt securities | 91,650 |  |  | 1,497 |  |  | (73 | ) |  | 93,074 |
Corporate debt securities | 634,188 |  |  | 18,569 |  |  | (785 | ) |  | 651,972 |
Asset-backed securities | 168,251 |  |  | 3,216 |  |  | (36 | ) |  | 171,431 |
Total bonds | 942,282 |  |  | 23,970 |  |  | (1,010 | ) |  | 965,242 |
Short-term investments | 52,261 |  |  | 104 |  |  | — |  |  | 52,365 |
Total investments | $ | 994,543 |  |  | $ | 24,074 |  |  | $ | (1,010 | ) |  | $ | 1,017,607 |
| Amortized Cost |  | Gross Unrealized |  | Fair Value
|  | Gains |  | Losses |
As of December 31, 2018 | (In Thousands)
U.S. Treasury securities and obligations of U.S. government agencies | $ | 48,171 |  |  | $ | 35 |  |  | $ | (1,376 | ) |  | $ | 46,830 |
Municipal debt securities | 92,014 |  |  | 206 |  |  | (963 | ) |  | 91,257 |
Corporate debt securities | 554,079 |  |  | 847 |  |  | (11,688 | ) |  | 543,238 |
Asset-backed securities | 171,990 |  |  | 792 |  |  | (1,457 | ) |  | 171,325 |
Total bonds | 866,254 |  |  | 1,880 |  |  | (15,484 | ) |  | 852,650 |
Short-term investments | 58,733 |  |  | 107 |  |  | — |  |  | 58,840 |
Total investments | $ | 924,987 |  |  | $ | 1,987 |  |  | $ | (15,484 | ) |  | $ | 911,490 |
We did not own any mortgage-backed securities in our asset-backed securities portfolio at June 30, 2019 or December 31, 2018. The following table presents a breakdown of the fair value of our corporate debt securities by issuer industry group as of June 30, 2019 and December 31, 2018:
| June 30, 2019 |  | December 31, 2018
Financial | 38 | % |  | 38 | %
Consumer | 27 |  |  | 27 |
Communications | 10 |  |  | 12 |
Utilities | 9 |  |  | 7 |
Industrial | 8 |  |  | 7 |
Technology | 6 |  |  | 6 |
Energy | 1 |  |  | 2 |
Other | 1 |  |  | 1 |
Total | 100 | % |  | 100 | %
As of June 30, 2019 and December 31, 2018, approximately $5.5 million and $5.3 million, respectively, of our cash and investments were held in the form of U.S. Treasury securities on deposit with various state insurance departments to satisfy regulatory requirements. Scheduled Maturities The amortized cost and fair values of available-for-sale securities as of June 30, 2019 and December 31, 2018, 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 a separate category.
As of June 30, 2019 | Amortized Cost |  | Fair Value
| (In Thousands)
Due in one year or less | $ | 99,314 |  |  | $ | 99,375 |
Due after one through five years | 412,820 |  |  | 420,131 |
Due after five through ten years | 300,990 |  |  | 312,792 |
Due after ten years | 13,168 |  |  | 13,878 |
Asset-backed securities | 168,251 |  |  | 171,431 |
Total investments | $ | 994,543 |  |  | $ | 1,017,607 |
As of December 31, 2018 | Amortized Cost |  | Fair Value
| (In Thousands)
Due in one year or less | $ | 76,087 |  |  | $ | 76,104 |
Due after one through five years | 352,282 |  |  | 347,701 |
Due after five through ten years | 318,728 |  |  | 310,633 |
Due after ten years | 5,900 |  |  | 5,727 |
Asset-backed securities | 171,990 |  |  | 171,325 |
Total investments | $ | 924,987 |  |  | $ | 911,490 |
Aging of Unrealized Losses As of June 30, 2019, the investment portfolio had gross unrealized losses of $1.0 million, of which $0.8 million had 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 June 30, 2019. We based our conclusion that these investments were not other-than-temporarily impaired as of June 30, 2019 on the following facts: (i) the unrealized losses were primarily caused by interest rate movements and market fluctuations in credit spreads 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 June 30, 2019 |  | (Dollars in Thousands)
U.S. Treasury securities and obligations of U.S. government agencies | — |  | $ | — |  | $ | — |  |  | 5 |  | $ | 13,750 |  | $ | (116 | ) |  | 5 |  | $ | 13,750 |  | $ | (116 | )
Municipal debt securities(1) | 1 |  | 2,000 |  | — |  |  | 10 |  | 15,025 |  | (73 | ) |  | 11 |  | 17,025 |  | (73 | )
Corporate debt securities | 13 |  | 24,737 |  | (199 | ) |  | 33 |  | 51,099 |  | (586 | ) |  | 46 |  | 75,836 |  | (785 | )
Asset-backed securities | 2 |  | 8,786 |  | (33 | ) |  | 6 |  | 1,953 |  | (3 | ) |  | 8 |  | 10,739 |  | (36 | )
Total | 16 |  | $ | 35,523 |  | $ | (232 | ) |  | 54 |  | $ | 81,827 |  | $ | (778 | ) |  | 70 |  | $ | 117,350 |  | $ | (1,010 | )
(1) | Includes securities with unrealized losses of less than 12 months which are not identifiable in the schedule due to rounding.
| 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, 2018 |  | (Dollars in Thousands)
U.S. Treasury securities and obligations of U.S. government agencies | — |  | $ | — |  | $ | — |  |  | 19 |  | $ | 41,817 |  | $ | (1,376 | ) |  | 19 |  | $ | 41,817 |  | $ | (1,376 | )
Municipal debt securities | 4 |  | 7,409 |  | (11 | ) |  | 31 |  | 58,658 |  | (952 | ) |  | 35 |  | 66,067 |  | (963 | )
Corporate debt securities | 118 |  | 226,477 |  | (3,952 | ) |  | 126 |  | 221,675 |  | (7,736 | ) |  | 244 |  | 448,152 |  | (11,688 | )
Asset-backed securities | 25 |  | 36,017 |  | (1,136 | ) |  | 22 |  | 33,988 |  | (321 | ) |  | 47 |  | 70,005 |  | (1,457 | )
Total | 147 |  | $ | 269,903 |  | $ | (5,099 | ) |  | 198 |  | $ | 356,138 |  | $ | (10,385 | ) |  | 345 |  | $ | 626,041 |  | $ | (15,484 | )
Net Investment Income The following table presents the components of net investment income:
| For the three months ended June 30, |  | For the six months ended June 30,
| 2019 |  | 2018 |  | 2019 |  | 2018
| (In Thousands)
Investment income | $ | 7,741 |  |  | $ | 5,937 |  |  | $ | 15,237 |  |  | $ | 10,719 |
Investment expenses | (112 | ) |  | (202 | ) |  | (225 | ) |  | (410 | )
Net investment income | $ | 7,629 |  |  | $ | 5,735 |  |  | $ | 15,012 |  |  | $ | 10,309 |
The following table presents the components of net realized investment losses:
| For the three months ended June 30, |  | For the six months ended June 30,
| 2019 |  | 2018 |  | 2019 |  | 2018
| (In Thousands)
Gross realized investment gains | $ | 22 |  |  | $ | 59 |  |  | $ | 217 |  |  | $ | 59 |
Gross realized investment losses | (135 | ) |  | — |  |  | (517 | ) |  | — |
Net realized investment losses | $ | (113 | ) |  | $ | 59 |  |  | $ | (300 | ) |  | $ | 59 |
Investment Securities - Other-than-Temporary Impairment (OTTI) As of June 30, 2019, we held no other-than-temporarily impaired securities. During the six months ended June 30, 2019, we recognized a $0.4 million OTTI loss in earnings related to the planned sale of a security in a loss position that was disposed of in April 2019. We did not recognize any OTTI losses for the three months ended June 30, 2019 or the three and six months ended June 30, 2018. There were no credit losses recognized in earnings for which a portion of an OTTI loss was recognized in accumulated other comprehensive income (loss) for the three or six months ended June 30, 2019.

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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 http://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 http://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 http://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 http://asc.fasb.org/subtopic&trid=2176304 + Details
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