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INVESTMENTS | 3 Months Ended
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Mar. 31, 2022
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, 2022 and December 31, 2021 are as follows:
| March 31, 2022
| Amortized Cost |  | Allowance for Expected Credit Losses |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
| (dollars in millions)
Fixed maturities: |  |  |  |  |  |  |  |  |
U.S. Treasury securities and agencies | $ | 23.7 |  |  | $ | — |  |  | $ | — |  |  | $ | (0.6) |  |  | $ | 23.1 |
Municipal securities | 20.4 |  |  | — |  |  | — |  |  | (0.7) |  |  | 19.7 |
Corporate debt securities | 49.9 |  |  | — |  |  | 0.1 |  |  | (1.3) |  |  | 48.7 |
Residential mortgage-backed securities | 2.9 |  |  | — |  |  | — |  |  | (0.2) |  |  | 2.7 |
Commercial mortgage backed securities | 32.5 |  |  | — |  |  | — |  |  | (0.6) |  |  | 31.9 |
Other debt obligations | 3.0 |  |  | — |  |  | — |  |  | — |  |  | 3.0 |
Total fixed maturities | 132.4 |  |  | — |  |  | 0.1 |  |  | (3.4) |  |  | 129.1 |
Short-term investments | 0.5 |  |  | — |  |  | — |  |  | — |  |  | 0.5 |
Total | $ | 132.9 |  |  | $ | — |  |  | $ | 0.1 |  |  | $ | (3.4) |  |  | $ | 129.6 |
| December 31, 2021
| Amortized Cost |  | Allowance for Expected Credit Losses |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
| (dollars in millions)
Fixed maturities: |  |  |  |  |  |  |  |  |
U.S. Treasury securities and agencies | $ | 23.7 |  |  | $ | — |  |  | $ | — |  |  | $ | (0.4) |  |  | $ | 23.3 |
Municipal securities | 20.4 |  |  | — |  |  | 0.3 |  |  | (0.1) |  |  | 20.6 |
Corporate debt securities | 48.2 |  |  | — |  |  | 0.7 |  |  | (0.2) |  |  | 48.7 |
Residential mortgage-backed securities | 3.5 |  |  | — |  |  | — |  |  | — |  |  | 3.5 |
Commercial mortgage backed securities | 30.2 |  |  | — |  |  | 0.2 |  |  | (0.1) |  |  | 30.3 |
Other debt obligations | 3.5 |  |  | — |  |  | — |  |  | — |  |  | 3.5 |
Total | $ | 129.5 |  |  | $ | — |  |  | $ | 1.2 |  |  | $ | (0.8) |  |  | $ | 129.9 |
Management reviewed the available-for-sale securities at each balance sheet date to consider whether it was necessary to recognize a credit loss as of March 31, 2022 and December 31, 2021 related to any of the above securities. We do not intend to sell the investments and it is not more likely than not that we will be required to sell the security before recovery. Management concluded that the available-for-sale securities’ unrealized losses were due to non-credit related factors and, therefore, there was no allowance for credit loss recognized for the periods ended March 31, 2022 and December 31, 2021. Other Investments As of March 31, 2022 and December 31, 2021, other investments related to our private equity investments were $4.4 million and $4.7 million, respectively. We recognized $1.2 million of realized gains in the three months ended March 31, 2022 resulting from the sale of one of our private equity investments within net realized gains on investments in our condensed consolidated statements of operations and comprehensive loss. There were no unrealized gains or impairment losses recognized on private equity investments for the three months ended March 31, 2022 and 2021. The following tables reflect the gross unrealized losses and fair value of short-term investments and available-for-sale fixed maturity securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2022 and December 31, 2021:
| March 31, 2022
| Less than 12 Months |  | 12 Months or More |  | Total
| Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss
| (dollars in millions)
Fixed maturities: |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities and agencies | $ | 7.5 |  |  | $ | (0.1) |  |  | $ | 14.3 |  |  | $ | (0.5) |  |  | $ | 21.8 |  |  | $ | (0.6) |
Municipal securities | 14.9 |  |  | (0.5) |  |  | 2.0 |  |  | (0.2) |  |  | 16.9 |  |  | (0.7) |
Corporate debt securities | 39.8 |  |  | (1.1) |  |  | 2.3 |  |  | (0.2) |  |  | 42.1 |  |  | (1.3) |
Residential mortgage-backed securities | 2.2 |  |  | (0.1) |  |  | 0.5 |  |  | (0.1) |  |  | 2.7 |  |  | (0.2) |
Commercial mortgage-backed securities | 27.7 |  |  | (0.6) |  |  | 0.4 |  |  | — |  |  | 28.1 |  |  | (0.6) |
Other debt obligations | 2.5 |  |  | — |  |  | — |  |  | — |  |  | 2.5 |  |  | — |
Total fixed maturities | 94.6 |  |  | (2.4) |  |  | 19.5 |  |  | (1.0) |  |  | 114.1 |  |  | (3.4) |
Short-term investments | 0.5 |  |  | — |  |  | — |  |  | — |  |  | 0.5 |  |  | — |
Total | $ | 95.1 |  |  | $ | (2.4) |  |  | $ | 19.5 |  |  | $ | (1.0) |  |  | $ | 114.6 |  |  | $ | (3.4) |
| December 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)
Fixed maturities: |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities and agencies | $ | 7.5 |  |  | $ | (0.1) |  |  | $ | 14.0 |  |  | $ | (0.3) |  |  | $ | 21.5 |  |  | $ | (0.4) |
Municipal securities | 8.9 |  |  | (0.1) |  |  | — |  |  | — |  |  | 8.9 |  |  | (0.1) |
Corporate debt securities | 12.7 |  |  | (0.1) |  |  | 1.6 |  |  | (0.1) |  |  | 14.3 |  |  | (0.2) |
Residential mortgage-backed securities | 1.9 |  |  | — |  |  | 0.5 |  |  | — |  |  | 2.4 |  |  | — |
Commercial mortgage-backed securities | 8.7 |  |  | (0.1) |  |  | — |  |  | — |  |  | 8.7 |  |  | (0.1) |
Total fixed maturities | $ | 39.7 |  |  | $ | (0.4) |  |  | $ | 16.1 |  |  | $ | (0.4) |  |  | $ | 55.8 |  |  | $ | (0.8) |
The following table reflects the gross and net realized gains and losses on short-term investments, fixed maturities and other investments that have been included in the condensed consolidated statements of operations and comprehensive loss for the three months ended March 31, 2022 and 2021:
|  |  | Three Months Ended March 31, |  |
|  |  |  |  | 2022 |  | 2021 |  |  |  |
|  |  |  |  | (dollars in millions)
Realized gains on investments |  |  |  |  | $ | 1.2 |  |  | $ | 2.5 |  |  |  |  |
Realized losses on investments |  |  |  |  | — |  |  | (0.1) |  |  |  |  |
Net realized gains on investments |  |  |  |  | $ | 1.2 |  |  | $ | 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, 2022:
| March 31, 2022
| Amortized Cost |  | Fair Value
| (dollars in millions)
Due in one year or less | $ | 33.2 |  |  | $ | 32.9 |
Due after one year through five years | 78.4 |  |  | 76.1 |
Due five years through 10 years | 7.1 |  |  | 6.8 |
Due after 10 years | 14.2 |  |  | 13.8 |
Total | $ | 132.9 |  |  | $ | 129.6 |
The following table sets forth the components of net investment income for the three months ended March 31, 2022 and 2021:
|  |  | Three Months Ended March 31,
|  |  |  |  | 2022 |  | 2021
|  |  |  |  | (dollars in millions)
Interest on bonds |  |  |  |  | $ | 0.6 |  |  | $ | 0.8 |
Interest on deposits and cash equivalents |  |  |  |  | 0.2 |  |  | 0.3 |
Total |  |  |  |  | 0.8 |  |  | 1.1 |
Investment expense |  |  |  |  | (0.2) |  |  | (0.2) |
Net investment income |  |  |  |  | $ | 0.6 |  |  | $ | 0.9 |
The following tables summarize the credit ratings of investments at March 31, 2022 and December 31, 2021:
| March 31, 2022
| Amortized Cost |  | Fair Value |  | % of Total Fair Value
S&P Global rating or equivalent | (dollars in millions)
AAA | $ | 72.6 |  |  | $ | 70.8 |  |  | 54.6 | %
AA+, AA, AA-, A-1 | 15.9 |  |  | 15.5 |  |  | 12.0 |
A+, A, A- | 34.7 |  |  | 33.7 |  |  | 26.0 |
BBB+, BBB, BBB- | 9.7 |  |  | 9.6 |  |  | 7.4 |
Total | $ | 132.9 |  |  | $ | 129.6 |  |  | 100.0 | %
| December 31, 2021
| Amortized Cost |  | Fair Value |  | % of Total Fair Value
S&P Global rating or equivalent | (dollars in millions)
AAA | $ | 70.9 |  |  | $ | 70.8 |  |  | 54.5 | %
AA+, AA, AA-, A-1 | 14.7 |  |  | 14.8 |  | 11.4 |
A+, A, A- | 33.4 |  |  | 33.6 |  | 25.9 |
BBB+, BBB, BBB- | 10.5 |  |  | 10.7 |  | 8.2 |
Total | $ | 129.5 |  |  | $ | 129.9 |  |  | 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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