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INVESTMENTS | 3 Months Ended
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Mar. 31, 2021
Investments, Debt and Equity Securities [Abstract] |
INVESTMENTS | INVESTMENTS The amortized cost and fair value of short-term investments and available-for-sale fixed maturity securities at March 31, 2021 and December 31, 2020 are as follows:
| March 31, 2021
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
| (dollars in millions)
Fixed maturities: |  |  |  |  |  |  |
U.S. Treasury securities and agencies | $ | 16.0 |  |  | $ | 0.1 |  |  | $ | (0.1) |  |  | $ | 16.0 |
Municipal securities | 20.0 |  |  | 0.5 |  |  | — |  |  | 20.5 |
Corporate debt securities | 50.6 |  |  | 1.2 |  |  | (0.1) |  |  | 51.7 |
Residential mortgage-backed securities | 6.2 |  |  | — |  |  | (0.1) |  |  | 6.1 |
Commercial mortgage backed securities | 31.4 |  |  | 0.5 |  |  | — |  |  | 31.9 |
Other debt obligations | 10.0 |  |  | 0.1 |  |  | — |  |  | 10.1 |
Total fixed maturities | 134.2 |  | 2.4 |  | (0.3) |  | 136.3
Short-term investments | 3.0 |  | — |  |  | — |  |  | 3.0
Total | $ | 137.2 |  |  | $ | 2.4 |  |  | $ | (0.3) |  |  | $ | 139.3 |
| December 31, 2020
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
| (dollars in millions)
Fixed maturities: |  |  |  |  |  |  |
U.S. Treasury securities and agencies | $ | 16.9 |  |  | $ | 0.1 |  |  | $ | — |  |  | $ | 17.0 |
Municipal securities | 22.6 |  |  | 0.8 |  |  | — |  |  | 23.4 |
Corporate debt securities | 87.5 |  |  | 3.1 |  |  | (0.1) |  |  | 90.5 |
Residential mortgage-backed securities | 7.8 |  |  | — |  |  | — |  |  | 7.8 |
Commercial mortgage backed securities | 57.1 |  |  | 1.3 |  |  | — |  |  | 58.4 |
Other debt obligations | 23.5 |  |  | 0.4 |  |  | — |  |  | 23.9 |
Total fixed maturities | 215.4 |  | 5.7 |  | (0.1) |  | 221.0
Short-term investments | 3.0 |  | — |  |  | — |  |  | 3.0
Total | $ | 218.4 |  |  | $ | 5.7 |  |  | $ | (0.1) |  |  | $ | 224.0 |
The following tables reflect the gross unrealized losses and fair value of bonds, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2021 and December 31, 2020:
| March 31, 2021
| Less than 12 Months |  | 12 Months or More |  | Total
| Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss
| (dollars in millions)
Bonds: |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities and agencies | $ | 14.0 |  |  | $ | (0.1) |  |  | $ | — |  |  | $ | — |  |  | $ | 14.0 |  |  | $ | (0.1) |
Municipal securities | 6.4 |  |  | — |  |  | — |  |  | — |  |  | 6.4 |  |  | — |
Corporate debt securities | 8.1 |  |  | (0.1) |  |  | — |  |  | — |  |  | 8.1 |  |  | (0.1) |
Residential mortgage-backed securities | 4.3 |  |  | (0.1) |  |  | 0.3 |  |  | — |  |  | 4.6 |  |  | (0.1) |
Commercial mortgage-backed securities | 3.1 |  |  | — |  |  | — |  |  | — |  |  | 3.1 |  |  | — |
Total bonds | $ | 35.9 |  |  | $ | (0.3) |  |  | $ | 0.3 |  |  | $ | — |  |  | $ | 36.2 |  |  | $ | (0.3) |
| December 31, 2020
| Less than 12 Months |  | 12 Months or More |  | Total
| Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss
| (dollars in millions)
Bonds: |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities and agencies | $ | 15.7 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 15.7 |  |  | $ | — |
Municipal securities | 2.3 |  |  | — |  |  | — |  |  | — |  |  | 2.3 |  |  | — |
Corporate debt securities | 2.9 |  |  | (0.1) |  |  | — |  |  | — |  |  | 2.9 |  |  | (0.1) |
Residential mortgage-backed securities | 3.7 |  |  | — |  |  | — |  |  | — |  |  | 3.7 |  |  | — |
Commercial mortgage-backed securities | 4.9 |  |  | — |  |  | — |  |  | — |  |  | 4.9 |  |  | — |
Other debt obligations | 0.1 |  |  | — |  |  | — |  |  | — |  |  | 0.1 |  |  | — |
Total bonds | $ | 29.6 |  |  | $ | (0.1) |  |  | $ | — |  |  | $ | — |  |  | $ | 29.6 |  |  | $ | (0.1) |
There were no other-than-temporary impairments recognized in the three months ended March 31, 2021 or 2020, respectively. The following table reflects the gross and net realized gains and losses on short-term investments and fixed maturities that have been included in the condensed consolidated statements of operations and comprehensive loss for the three months ended March 31, 2021 and 2020:
| Three Months Ended March 31, |  |
| 2021 |  | 2020 |  |  |  |
| (dollars in millions)
Realized gains on investments | $ | 2.5 |  |  | $ | — |  |  |  |  |
Realized losses on investments | (0.1) |  |  | — |  |  |  |  |
Net realized gains on investments | $ | 2.4 |  |  | $ | — |  |  |  |  |
The following table sets forth the amortized cost and fair value of short-term investments and fixed maturity securities by contractual maturity at March 31, 2021:
| March 31, 2021 |  |
| Amortized Cost |  | Fair Value |  |  |  |
| (dollars in millions)
Due in one year or less | $ | 9.4 |  |  | $ | 9.4 |  |  |  |  |
Due after one year through five years | 98.8 |  |  | 100.6 |  |  |  |  |
Due five years through 10 years | 9.7 |  |  | 9.8 |  |  |  |  |
Due after 10 years | 19.3 |  |  | 19.5 |  |  |  |  |
Total | $ | 137.2 |  |  | $ | 139.3 |  |  |  |  |
The following table sets forth the components of net investment income for the three months ended March 31, 2021 and 2020:
|  |  | Three Months Ended March 31,
|  |  |  |  | 2021 |  | 2020
|  |  |  |  | (dollars in millions)
Interest on bonds |  |  |  |  | $ | 0.8 |  |  | $ | 0.9 |
Interest on deposits and cash equivalents |  |  |  |  | 0.3 |  |  | 1.1 |
Total |  |  |  |  | 1.1 |  |  | 2.0 |
Investment expense |  |  |  |  | (0.2) |  |  | (0.1) |
Net investment income |  |  |  |  | $ | 0.9 |  |  | $ | 1.9 |
The following tables summarize the credit ratings of investments at March 31, 2021 and December 31, 2020:
| March 31, 2021
| Amortized Cost |  | Fair Value |  | % of Total Fair Value
S&P Global rating or equivalent | (dollars in millions)
AAA | $ | 73.2 |  |  | $ | 74.0 |  |  | 53.1 | %
AA+, AA, AA-, A-1 | 17.0 |  |  | 17.3 |  | 12.5 |
A+, A, A- | 36.4 |  |  | 37.1 |  | 26.6 |
BBB+, BBB, BBB- | 10.6 |  |  | 10.9 |  | 7.8 |
Total | $ | 137.2 |  |  | $ | 139.3 |  |  | 100.0 | %
| December 31, 2020
| Amortized Cost |  | Fair Value |  | % of Total Fair Value
S&P Global rating or equivalent | (dollars in millions)
AAA | $ | 116.5 |  |  | $ | 118.7 |  |  | 53.0 | %
AA+, AA, AA-, A-1 | 22.7 |  |  | 23.3 |  | 10.4 |
A+, A, A- | 57.5 |  |  | 59.4 |  | 26.5 |
BBB+, BBB, BBB- | 21.7 |  |  | 22.6 |  | 10.1 |
Total | $ | 218.4 |  |  | $ | 224.0 |  |  | 100.0 | %

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- Definition The entire disclosure for investment. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 321 -URI http://asc.fasb.org/topic&trid=75115024 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 325 -URI http://asc.fasb.org/topic&trid=2197064 Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
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