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INVESTMENTS | 6 Months Ended
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Jun. 30, 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 June 30, 2021 and December 31, 2020 are as follows:
| June 30, 2021
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
| (dollars in millions)
Fixed maturities: |  |  |  |  |  |  |
U.S. Treasury securities and agencies | $ | 21.6 |  |  | $ | 0.1 |  |  | $ | (0.1) |  |  | $ | 21.6 |
Municipal securities | 20.0 |  |  | 0.5 |  |  | (0.1) |  |  | 20.4 |
Corporate debt securities | 49.6 |  |  | 1.2 |  |  | (0.1) |  |  | 50.7 |
Residential mortgage-backed securities | 4.8 |  |  | — |  |  | — |  |  | 4.8 |
Commercial mortgage backed securities | 29.7 |  |  | 0.5 |  |  | — |  |  | 30.2 |
Other debt obligations | 6.6 |  |  | 0.1 |  |  | — |  |  | 6.7 |
Total fixed maturities | 132.3 |  |  | 2.4 |  |  | (0.3) |  |  | 134.4 |
Short-term investments | 0.3 |  |  | — |  |  | — |  |  | 0.3 |
Total | $ | 132.6 |  |  | $ | 2.4 |  |  | $ | (0.3) |  |  | $ | 134.7 |
| 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 |
Other Investments Other investments consist of private equity investments without a readily determinable fair value. We elected to account for these investments at cost minus any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or a similar investment of the same issuer. As of June 30, 2021 and December 31, 2020, other investments were $0.8 million and $0.5 million, respectively. There were no impairments recognized on other investments for the three and six months ended June 30, 2021 or 2020. 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 June 30, 2021 and December 31, 2020:
| June 30, 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 | $ | 19.6 |  |  | $ | (0.1) |  |  | $ | — |  |  | $ | — |  |  | $ | 19.6 |  |  | $ | (0.1) |
Municipal securities | 5.0 |  |  | (0.1) |  |  | — |  |  | — |  |  | 5.0 |  |  | (0.1) |
Corporate debt securities | 5.8 |  |  | (0.1) |  |  | — |  |  | — |  |  | 5.8 |  |  | (0.1) |
Residential mortgage-backed securities | 2.7 |  |  | — |  |  | 0.3 |  |  | — |  |  | 3.0 |  |  | — |
Commercial mortgage-backed securities | 2.1 |  |  | — |  |  | — |  |  | — |  |  | 2.1 |  |  | — |
Total bonds | $ | 35.2 |  |  | $ | (0.3) |  |  | $ | 0.3 |  |  | $ | — |  |  | $ | 35.5 |  |  | $ | (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 for the three and six months ended June 30, 2021 or 2020. 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 and six months ended June 30, 2021 and 2020:
| Three Months Ended June 30, |  | Six Months Ended June 30, |  |
| 2021 |  | 2020 |  | 2021 |  | 2020 |  |  |  |
| (dollars in millions)
Realized gains on investments | $ | — |  |  | $ | 0.1 |  |  | $ | 2.5 |  |  | $ | 0.1 |  |  |  |  |
Realized losses on investments | — |  |  | — |  |  | (0.1) |  |  | — |  |  |  |  |
Net realized gains on investments | $ | — |  |  | $ | 0.1 |  |  | $ | 2.4 |  |  | $ | 0.1 |  |  |  |  |
The following table sets forth the amortized cost and fair value of short-term investments and fixed maturity securities by contractual maturity at June 30, 2021:
| June 30, 2021
| Amortized Cost |  | Fair Value
| (dollars in millions)
Due in one year or less | $ | 6.8 |  |  | $ | 6.9 |
Due after one year through five years | 102.8 |  |  | 104.5 |
Due five years through 10 years | 6.2 |  |  | 6.2 |
Due after 10 years | 16.8 |  |  | 17.1 |
Total | $ | 132.6 |  |  | $ | 134.7 |
The following table sets forth the components of net investment income for the three and six months ended June 30, 2021 and 2020:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
| (dollars in millions)
Interest on bonds | $ | 0.6 |  |  | $ | 1.2 |  |  | $ | 1.3 |  |  | $ | 2.1 |
Interest on deposits and cash equivalents | 0.3 |  |  | 0.2 |  |  | 0.6 |  |  | 1.3 |
Total | 0.9 |  |  | 1.4 |  |  | 1.9 |  |  | 3.4 |
Investment expense | (0.2) |  |  | (0.1) |  |  | (0.3) |  |  | (0.2) |
Net investment income | $ | 0.7 |  |  | $ | 1.3 |  |  | $ | 1.6 |  |  | $ | 3.2 |
The following tables summarize the credit ratings of investments at June 30, 2021 and December 31, 2020:
| June 30, 2021
| Amortized Cost |  | Fair Value |  | % of Total Fair Value
S&P Global rating or equivalent | (dollars in millions)
AAA | $ | 72.4 |  |  | $ | 73.1 |  |  | 54.3 | %
AA+, AA, AA-, A-1 | 14.7 |  |  | 15.1 |  |  | 11.2 |
A+, A, A- | 34.4 |  |  | 35.1 |  |  | 26.1 |
BBB+, BBB, BBB- | 11.1 |  |  | 11.4 |  |  | 8.4 |
Total | $ | 132.6 |  |  | $ | 134.7 |  |  | 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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