
	December 31, 2021
	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Debt Securities:
U.S. government obligations and agencies	$	27,076	$	—	$	64	$	(334)	$	26,806
Corporate bonds	687,058		(371)		843		(13,725)		673,805
Mortgage-backed and asset-backed securities	322,844		—		194		(6,920)		316,118
Municipal bonds	14,925		(1)		—		(350)		14,574
Redeemable preferred stock	9,289		(117)		28		(48)		9,152
Total	$	1,061,192	$	(489)	$	1,129	$	(21,377)	$	1,040,455


	December 31, 2020
	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Debt Securities:
U.S. government obligations and agencies	$	59,529	$	—	$	157	$	(55)	$	59,631
Corporate bonds	416,758		(148)		3,571		(337)		419,844
Mortgage-backed and asset-backed securities	319,377		—		1,175		(615)		319,937
Municipal bonds	11,990		—		138		—		12,128
Redeemable preferred stock	7,993		(38)		424		(58)		8,321

Total	$	815,647	$	(186)	$	5,465	$	(1,065)	$	819,861

The following table provides the credit quality of available-for-sale debt securities with contractual maturities as of the dates presented (dollars in thousands):


	December 31, 2021				December 31, 2020
			% of Total				% of Total
Average Credit Ratings	Fair Value		Fair Value		Fair Value		Fair Value
AAA	$	321,975	31.0	%	$	337,462	41.2	%
AA	139,186		13.4	%	89,681		10.9	%
A	339,500		32.6	%	230,290		28.1	%
BBB	234,358		22.5	%	160,662		19.6	%
BB and Below	—		—	%	233		—	%
No Rating Available	5,436		0.5	%	1,533		0.2	%
Total	$	1,040,455	100.0	%	$	819,861	100.0	%

The table above includes credit quality ratings by Standard and Poor’s Rating Services, Inc. (“S&P”), Moody’s Investors Service, Inc. and Fitch Ratings, Inc. The Company has presented the highest rating of the three rating agencies for each investment position.

The following table summarizes the amortized cost and fair value of mortgage-backed and asset-backed securities as of the dates presented (in thousands):


	December 31, 2021				December 31, 2020
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Mortgage-backed securities:
Agency	$	147,992	$	143,819	$	153,937	$	153,758
Non-agency	59,906		58,263		54,231		54,666
Asset-backed securities:
Auto loan receivables	67,352		66,877		68,188		68,440
Credit card receivables	4,741		4,719		7,878		7,891
Other receivables	42,853		42,440		35,143		35,182
Total	$	322,844	$	316,118	$	319,377	$	319,937

The following tables summarize available-for-sale debt securities, aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position, for which no allowance for expected credit losses has been recorded as of the dates presented (in thousands):


	December 31, 2021
	Less Than 12 Months					12 Months or Longer
	Number of Issues	Fair Value		Unrealized Losses		Number of Issues	Fair Value		Unrealized Losses
Debt Securities:
U.S. government obligations and agencies	4	$	18,913	$	(111)	4	$	5,016	$	(223)
Corporate bonds	249	378,595		(7,468)		18	17,356		(679)
Mortgage-backed and asset-backed securities	145	274,883		(5,969)		11	23,273		(951)
Municipal bonds	5	9,811		(269)		—	—		—
Redeemable preferred stock	1	200		(1)		—	—		—
Total	404	$	682,402	$	(13,818)	33	$	45,645	$	(1,853)


	December 31, 2020
	Less Than 12 Months					12 Months or Longer
	Number of Issues	Fair Value		Unrealized Losses		Number of Issues	Fair Value		Unrealized Losses
Debt Securities:
U.S. government obligations and agencies	8	$	31,729	$	(55)	—	$	—	$	—
Corporate bonds	27	28,791		(162)		—	—		—
Mortgage-backed and asset-backed securities	42	112,462		(615)		—	—		—
Municipal bonds	—	—		—		—	—		—
Redeemable preferred stock	2	688		(12)		—	—		—
Total	79	$	173,670	$	(844)	—	$	—	$	—

Unrealized losses on available-for-sale debt securities in the above table as of December 31, 2021 and 2020 have not been recognized into income as credit losses because the issuers are of high credit quality (investment grade securities), management does not intend to sell and it is likely management will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates and other market conditions. There were no material factors impacting any one category or specific security requiring an accrual for credit loss. The issuers continue to make principal and interest payments on the bonds. The fair value is expected to recover as the bonds approach maturity.

The following table presents a reconciliation of the beginning and ending balances for expected credit losses on available-for-sale debt securities (in thousands):


	Corporate Bonds		Municipal Bonds		Redeemable Preferred Stock		Total
Balance, December 31, 2019	$	—	$	—	$	—	$	—
Cumulative effect adjustment as of January 1, 2020	665		—		126		791
Provision for (or reversal of) credit loss expense	(517)		—		(88)		(605)
Balance, December 31, 2020	148		—		38		186
Provision for (or reversal of) credit loss expense	223		1		79		303
Balance, December 31, 2021	$	371	$	1	$	117	$	489

See “—Note 2 (Summary of Significant Accounting Policies — Allowance for Credit Losses-Available-For-Sale Securities.)” for more information about the methodology and significant inputs used to measure the amount related to expected credit losses on available-for-sale debt securities.


	December 31, 2021
	Amortized Cost		Fair Value
Due in one year or less	$	30,183	$	30,163
Due after one year through five years	530,894		522,941
Due after five years through ten years	469,554		457,010
Due after ten years	29,863		29,647
Perpetual maturity securities	698		694
Total	$	1,061,192	$	1,040,455

All securities, except those with perpetual maturities, were categorized in the table above utilizing years to effective maturity. Effective maturity takes into consideration all forms of potential prepayment, such as call features or prepayment schedules, that shorten the lifespan of contractual maturity dates.

The following table provides certain information related to available-for-sale debt securities, equity securities and investment real estate during the periods presented (in thousands):


	Years Ended December 31,
	2021		2020		2019
Proceeds from sales and maturities (fair value):
Available-for-sale debt securities (1)	$	186,507	$	1,148,418	$	223,266
Equity securities	$	85,103	$	81,559	$	29,680
Gross realized gains on sale of securities:
Available-for-sale debt securities (1)	$	2,649	$	57,378	$	790
Equity securities	$	3,005	$	6,438	$	367
Gross realized losses on sale of securities:
Available-for-sale debt securities	$	(2,434)	$	(464)	$	(298)
Equity securities	$	(208)	$	—	$	(14,787)
Realized gains on sales of investment real estate (2)	$	401	$	—	$	1,213


(1)						In the third and fourth quarters of 2020, the Company took advantage of the market recovery and recognized $56.4 million of net realized gains on the sale of our available-for-sale debt securities that were in an unrealized gain position.
(2)						See the discussion below for “Investment Real Estate” sold.

The following table presents the components of net investment income, comprised primarily of interest and dividends for the periods presented (in thousands):


	Years Ended December 31,
	2021		2020		2019
Available-for-sale debt securities	$	11,926	$	19,091	$	24,989
Equity securities	2,651		2,445		2,648

Cash and cash equivalents (1)	51		960		5,176
Other (2)	928		1,050		1,008
Total investment income	15,556		23,546		33,821
Less: Investment expenses (3)	(3,021)		(3,153)		(3,078)
Net investment income	$	12,535	$	20,393	$	30,743


(1)			Includes interest earned on restricted cash and cash equivalents.
(2)			Includes investment income earned on real estate investments.
(3)			Includes custodial fees, investment accounting and advisory fees, and expenses associated with real estate investments.

The following table provides the unrealized gains and losses recognized for the periods presented on equity securities still held at the end of the reported period (in thousands):


	Years Ended December 31,
	2021		2020		2019


Unrealized gains and (losses) recognized during the reported period on equity securities still held at the end of the reporting period	$	(3,459)	$	25	$	4,163

During the first quarter of 2021, the Company committed to a plan to actively market an income-producing investment real estate property and classified the investment property to assets held for sale. On September 30, 2021, the Company completed the sale and received net cash proceeds of approximately $8.9 million and recognized a pre-tax gain of approximately $2.3 million that is included in net realized gains (losses) on investments in the Consolidated Statements of Income for the year ended December 31, 2021.

During the second quarter of 2021, the Company committed to a plan to actively market the sale of a real estate property previously included in property and equipment, net and classified the real estate property to assets held for sale. The real estate property is located in Pompano Beach, Florida. On October 8, 2021, the Company completed the sale and received net cash proceeds of approximately $0.4 million and recognized a pre-tax gain of approximately $0.2 million that is included in net realized gains (losses) on investments in the Consolidated Statements of Income for the year ended December 31, 2021.


	As of December 31,
	2021		2020
Income Producing:
Investment real estate	$	7,091	$	14,685
Less: Accumulated depreciation	(1,200)		(1,699)
	5,891		12,986
Non-Income Producing:
Investment real estate	—		2,190
Investment real estate, net	$	5,891	$	15,176

During the year ended December 31, 2021, the Company completed the sale of an investment real estate property. The Company received net cash proceeds of approximately $2.6 million and recognized a pre-tax gain of approximately $0.4 million that is included in net realized gains (losses) on investments in the Consolidated Statements of Income for the year ended December 31, 2021. This investment real estate property was not previously reported under assets held for sale since it was actively marketed and sold within the first quarter of 2021.