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Investments | 9 Months Ended
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Sep. 30, 2015
Investments Debt And Equity Securities [Abstract] |
Investments | 3. Investments Securities Available for Sale The following table provides the cost or amortized cost and fair value of securities available for sale as of the dates presented (in thousands):
| September 30, 2015 |
| Cost or |  |  | Gross |  |  | Gross |  |  |  |  |
| Amortized |  |  | Unrealized |  |  | Unrealized |  |  |  |  |
| Cost |  |  | Gains |  |  | Losses |  |  | Fair Value |
Fixed Maturities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government obligations and agencies | $ | 135,774 |  |  | $ | 517 |  |  | $ | (201 | ) |  | $ | 136,090 |
Corporate bonds |  | 128,357 |  |  |  | 412 |  |  |  | (649 | ) |  |  | 128,120 |
Mortgage-backed and asset-backed securities |  | 138,482 |  |  |  | 527 |  |  |  | (324 | ) |  |  | 138,685 |
Redeemable preferred stock |  | 9,734 |  |  |  | 201 |  |  |  | (65 | ) |  |  | 9,870 |
Other |  | 5,000 |  |  |  | 4 |  |  |  | — |  |  |  | 5,004 |
Equity Securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common stock |  | 16,545 |  |  |  | 472 |  |  |  | (1,274 | ) |  |  | 15,743 |
Mutual funds |  | 34,599 |  |  |  | — |  |  |  | (3,715 | ) |  |  | 30,884 |
Short-term investments |  | 75,022 |  |  |  | 3 |  |  |  | (2 | ) |  |  | 75,023 |
Total | $ | 543,513 |  |  | $ | 2,136 |  |  | $ | (6,230 | ) |  | $ | 539,419 |
| December 31, 2014 |
| Cost or |  |  | Gross |  |  | Gross |  |  |  |  |
| Amortized |  |  | Unrealized |  |  | Unrealized |  |  |  |  |
| Cost |  |  | Gains |  |  | Losses |  |  | Fair Value |
Fixed Maturities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government obligations and agencies | $ | 120,627 |  |  | $ | 38 |  |  | $ | (627 | ) |  | $ | 120,038 |
Corporate bonds |  | 120,025 |  |  |  | 171 |  |  |  | (364 | ) |  |  | 119,832 |
Mortgage-backed and asset-backed securities |  | 107,589 |  |  |  | 136 |  |  |  | (502 | ) |  |  | 107,223 |
Redeemable preferred stock |  | 6,700 |  |  |  | 165 |  |  |  | (9 | ) |  |  | 6,856 |
Equity Securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common stock |  | 331 |  |  |  | 4 |  |  |  | (65 | ) |  |  | 270 |
Mutual funds |  | 21,296 |  |  |  | — |  |  |  | (1,924 | ) |  |  | 19,372 |
Short-term investments |  | 50,000 |  |  |  | — |  |  |  | (10 | ) |  |  | 49,990 |
Total | $ | 426,568 |  |  | $ | 514 |  |  | $ | (3,501 | ) |  | $ | 423,581 |
The following table provides the credit quality of investment securities with contractual maturities or the issuer of such securities as of the dates presented (in thousands):
September 30, 2015 |
|  |  |  |  |  | % of Total |
Comparable Ratings |  | Fair Value |  |  | Fair Value |
AAA |  | $ | 87,860 |  |  |  | 17.8 | %
AA |  |  | 193,220 |  |  |  | 39.2 | %
A |  |  | 140,092 |  |  |  | 28.4 | %
BBB |  |  | 47,219 |  |  |  | 9.6 | %
BB+ and Below |  |  | 3,768 |  |  |  | 0.8 | %
No Rating Available |  |  | 20,633 |  |  |  | 4.2 | %
Total |  | $ | 492,792 |  |  |  | 100.0 | %
December 31, 2014 (1) |
|  |  |  |  |  | % of Total |
Comparable Ratings |  | Fair Value |  |  | Fair Value |
AAA |  | $ | 39,657 |  |  |  | 9.8 | %
AA |  |  | 220,693 |  |  |  | 54.8 | %
A |  |  | 83,734 |  |  |  | 20.7 | %
BBB |  |  | 47,003 |  |  |  | 11.6 | %
BB+ and Below |  |  | 3,401 |  |  |  | 0.8 | %
No Rating Available |  |  | 9,451 |  |  |  | 2.3 | %
Total |  | $ | 403,939 |  |  |  | 100.0 | %
(1) | The credit ratings in the table above have been reclassified from the prior periods’ consolidated financial statements to conform to the current periods’ presentation. For investment securities where no credit rating was previously available, the credit rating of the issuer of such security is disclosed in the table above, where applicable.
The tables above include comparable credit quality ratings by Standard and Poor’s Rating Services, Inc., Moody’s Investors Service, Inc. and Fitch Ratings, Inc. The following table summarizes the cost or amortized cost and fair value of mortgage-backed and asset-backed securities as of the dates presented (in thousands):
| September 30, 2015 |  |  | December 31, 2014 |
| Cost or |  |  |  |  |  |  | Cost or |  |  |  |  |
| Amortized |  |  |  |  |  |  | Amortized |  |  |  |  |
| Cost |  |  | Fair Value |  |  | Cost |  |  | Fair Value |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agency | $ | 76,428 |  |  | $ | 76,610 |  |  | $ | 64,905 |  |  | $ | 64,619 |
Non-agency |  | 10,454 |  |  |  | 10,389 |  |  |  | 8,053 |  |  |  | 7,987 |
Asset-backed securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Auto loan receivables |  | 18,423 |  |  |  | 18,488 |  |  |  | 16,551 |  |  |  | 16,556 |
Credit card receivables |  | 28,578 |  |  |  | 28,588 |  |  |  | 13,481 |  |  |  | 13,457 |
Other receivables |  | 4,599 |  |  |  | 4,610 |  |  |  | 4,599 |  |  |  | 4,604 |
Total | $ | 138,482 |  |  | $ | 138,685 |  |  | $ | 107,589 |  |  | $ | 107,223 |
The following table summarizes the fair value and gross unrealized losses on securities available for sale, aggregated by major investment category and length of time that individual securities have been in a continuous unrealized loss position as of the dates presented (in thousands):
| September 30, 2015 |
| Less Than 12 Months |  |  | 12 Months or Longer |
| Number of |  |  |  |  |  |  | Unrealized |  |  | Number of |  |  |  |  |  |  | Unrealized |
| Issues |  |  | Fair Value |  |  | Losses |  |  | Issues |  |  | Fair Value |  |  | Losses |
Fixed maturities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government obligations and agencies |  | — |  |  | $ | — |  |  | $ | — |  |  |  | 2 |  |  | $ | 3,470 |  |  | $ | (201 | )
Corporate bonds |  | 58 |  |  |  | 52,340 |  |  |  | (608 | ) |  |  | 4 |  |  |  | 3,952 |  |  |  | (41 | )
Mortgage-backed and asset-backed securities |  | 14 |  |  |  | 30,805 |  |  |  | (117 | ) |  |  | 6 |  |  |  | 15,504 |  |  |  | (207 | )
Redeemable preferred stock |  | 30 |  |  |  | 3,789 |  |  |  | (65 | ) |  |  | — |  |  |  | — |  |  |  | — |
Equity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common stock |  | 3 |  |  |  | 8,161 |  |  |  | (1,168 | ) |  |  | 2 |  |  |  | 83 |  |  |  | (106 | )
Mutual funds |  | 4 |  |  |  | 22,971 |  |  |  | (725 | ) |  |  | 1 |  |  |  | 7,912 |  |  |  | (2,990 | )
Short-term investments |  | 76 |  |  |  | 52,514 |  |  |  | (2 | ) |  |  | — |  |  |  | — |  |  |  | — |
Total |  | 185 |  |  | $ | 170,580 |  |  | $ | (2,685 | ) |  |  | 15 |  |  | $ | 30,921 |  |  | $ | (3,545 | )
| December 31, 2014 |
| Less Than 12 Months |  |  | 12 Months or Longer |
| Number of |  |  |  |  |  |  | Unrealized |  |  | Number of |  |  |  |  |  |  | Unrealized |
| Issues |  |  | Fair Value |  |  | Losses |  |  | Issues |  |  | Fair Value |  |  | Losses |
Fixed maturities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government obligations and agencies |  | 3 |  |  | $ | 27,341 |  |  | $ | (55 | ) |  |  | 4 |  |  | $ | 34,050 |  |  | $ | (572 | )
Corporate bonds |  | 67 |  |  |  | 58,271 |  |  |  | (238 | ) |  |  | 12 |  |  |  | 15,105 |  |  |  | (126 | )
Mortgage-backed and asset-backed securities |  | 20 |  |  |  | 48,335 |  |  |  | (273 | ) |  |  | 5 |  |  |  | 16,842 |  |  |  | (229 | )
Redeemable preferred stock |  | 12 |  |  |  | 1,153 |  |  |  | (9 | ) |  |  | — |  |  |  | — |  |  |  | — |
Equity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common stock |  | 2 |  |  |  | 87 |  |  |  | (20 | ) |  |  | 2 |  |  |  | 117 |  |  |  | (45 | )
Mutual funds |  | 2 |  |  |  | 10,514 |  |  |  | (97 | ) |  |  | 1 |  |  |  | 8,859 |  |  |  | (1,827 | )
Short-term investments |  | 2 |  |  |  | 37,490 |  |  |  | (10 | ) |  |  | — |  |  |  | — |  |  |  | — |
Total |  | 108 |  |  | $ | 183,191 |  |  | $ | (702 | ) |  |  | 24 |  |  | $ | 74,973 |  |  | $ | (2,799 | )
At September 30, 2015, we held fixed maturity, equity securities and short-term investments that were in an unrealized loss position as presented in the table above. For fixed maturity securities with significant declines in value, we perform quarterly fundamental credit analysis on a security-by-security basis, which includes consideration of credit quality and credit ratings, review of relevant industry analyst reports and other available market data. For fixed maturity, equity securities and short-term investments, the Company considers whether it has the intent and ability to hold the securities for a period of time sufficient to recover its cost basis. Where the Company lacks the intent and ability to hold to recovery, or believes the recovery period is extended, the security’s decline in fair value is considered other than temporary and is recorded in earnings. Based upon management’s intent and ability to hold the securities until recovery and its credit analysis of the individual issuers of the securities, management has no reason to believe the unrealized losses for securities available for sale at September 30, 2015 are other than temporary. The following table presents the amortized cost and fair value of investments with contractual maturities as of the date presented (in thousands):
| September 30, 2015 |
| Cost or |  |  |  |  |
| Amortized Cost |  |  | Fair Value |
Due in one year or less | $ | 119,008 |  |  | $ | 119,037 |
Due after one year through five years |  | 222,690 |  |  |  | 222,847 |
Due after five years through ten years |  | 1,465 |  |  |  | 1,427 |
Due after ten years |  | 4,121 |  |  |  | 4,172 |
Mortgage-backed and asset-backed securities |  | 138,482 |  |  |  | 138,685 |
Perpetual maturity securities |  | 6,603 |  |  |  | 6,624 |
Total | $ | 492,369 |  |  | $ | 492,792 |
Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay with or without penalty. The following table provides certain information related to securities available for sale during the periods presented (in thousands):
| Three Months Ended |  |  | Nine Months Ended |
| September 30, |  |  | September 30, |
| 2015 |  |  | 2014 |  |  | 2015 |  |  | 2014 |
Sales proceeds (fair value) | $ | 12,014 |  |  | $ | 53,961 |  |  | $ | 56,066 |  |  | $ | 126,748 |
Gross realized gains | $ | 12 |  |  | $ | 742 |  |  | $ | 308 |  |  | $ | 5,930 |
Gross realized losses | $ | (1 | ) |  | $ | (241 | ) |  | $ | (16 | ) |  | $ | (577 | )
The following table presents the components of net investment income, comprised primarily of interest and dividends, for the periods presented (in thousands):
| Three Months Ended |  |  | Nine Months Ended |
| September 30, |  |  | September 30, |
| 2015 |  |  | 2014 |  |  | 2015 |  |  | 2014 |
Fixed maturities | $ | 1,479 |  |  | $ | 884 |  |  | $ | 4,001 |  |  | $ | 2,394 |
Equity securities |  | 277 |  |  |  | 182 |  |  |  | 540 |  |  |  | 636 |
Short-term investments |  | 89 |  |  |  | 11 |  |  |  | 194 |  |  |  | 11 |
Other (1) |  | 102 |  |  |  | 26 |  |  |  | 247 |  |  |  | 47 |
Total investment income |  | 1,947 |  |  |  | 1,103 |  |  |  | 4,982 |  |  |  | 3,088 |
Less: Investment expenses (2) |  | (640 | ) |  |  | (459 | ) |  |  | (1,606 | ) |  |  | (1,514 | )
Net investment (expense) income | $ | 1,307 |  |  | $ | 644 |  |  | $ | 3,376 |  |  | $ | 1,574 |
(1) | Includes interest earned on cash and cash equivalents and restricted cash and cash equivalents. Also includes investment income earned on real estate investments.
(2) | Includes bank fees, investment accounting and advisory fees, and expenses associated with real estate investments.
Investment Real Estate Investment real estate consisted of the following as of the dates presented (in thousands):
| September 30, 2015 |  |  | December 31, 2014 |
Investment real estate | $ | 5,888 |  |  | $ | — |
Less: Accumulated depreciation |  | (68 | ) |  |  | — |
Investment real estate, net | $ | 5,820 |  |  | $ | — |

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- Definition The entire disclosure for investments, including all tables. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Article 6 -Section 10 -Paragraph (c) -Subparagraph (1) + Details
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