
	Cost or Adjusted/Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
September 30, 2021
U.S. government and agency securities	$	103,655	$	569	$	2,008	$	102,216
Foreign government	4,896		102		13		4,985
States, municipalities and political subdivisions	105,203		885		995		105,093
Public utilities	31,376		257		567		31,066
Corporate securities	299,271		3,384		3,611		299,044
Mortgage-backed securities	259,730		1,691		3,708		257,713
Asset-backed securities	79,992		333		162		80,163
Redeemable preferred stocks	4,532		137		9		4,660
Total fixed maturities	$	888,655	$	7,358	$	11,073	$	884,940

December 31, 2020
U.S. government and agency securities	$	129,417	$	1,147	$	139	$	130,425
Foreign government	1,374		142		—		1,516
States, municipalities and political subdivisions	132,336		2,318		272		134,382
Public utilities	29,526		482		28		29,980
Corporate securities	285,814		6,633		118		292,329
Mortgage-backed securities	285,639		3,039		466		288,212
Asset-backed securities	56,351		525		219		56,657
Redeemable preferred stocks	6,257		266		13		6,510
Total fixed maturities	$	926,714	$	14,552	$	1,255	$	940,011

When we sell investments, we calculate the gain or loss realized on the sale by comparing the sales price (fair value) to the cost or adjusted/amortized cost of the security sold. We determine the cost or adjusted/amortized cost of the security sold using the specific-identification method. The following table details our realized gains (losses) by major investment category for the three and nine-months ended September 30, 2021 and 2020, respectively:


	2021				2020
	Gains (Losses)		Fair Value at Sale		Gains (Losses)		Fair Value at Sale
Three Months Ended September 30,
Fixed maturities	$	293	$	50,112	$	708	$	47,153
Equity securities	5,505		10,512		26,724		97,725
Short-term investments	—		14,655		—		1,275
Total realized gains	5,798		75,279		27,432		146,153
Fixed maturities	(236)		16,086		(45)		1,203
Equity securities	—		56		(2,419)		9,509
Short-term investments	(25)		23,974		—		—
Total realized losses	(261)		40,116		(2,464)		10,712
Net realized investment gains (losses)	$	5,537	$	115,395	$	24,968	$	156,865
Nine Months Ended September 30,
Fixed maturities	$	1,012	$	161,314	$	1,425	$	139,609
Equity securities	5,507		10,535		27,550		101,696
Short-term investments	—		29,485		—		1,346
Total realized gains	6,519		201,334		28,975		242,651
Fixed maturities	(544)		47,707		(439)		7,942
Equity securities	(18)		575		(3,577)		12,879
Short-term investments	(41)		31,958		—		128
Total realized losses	(603)		80,240		(4,016)		20,949
Net realized investment gains (losses)	$	5,916	$	281,574	$	24,959	$	263,600


	September 30, 2021
	Cost or Amortized Cost		Percent of Total		Fair Value		Percent of Total
Due in one year or less	$	66,172	7.4	%	$	66,609	7.5	%
Due after one year through five years	263,885		29.7		265,546		30.0
Due after five years through ten years	206,617		23.3		203,091		22.9
Due after ten years	12,258		1.4		11,818		1.3
Asset and mortgage-backed securities	339,723		38.2		337,876		38.3
Total	$	888,655	100.0	%	$	884,940	100.0	%


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Fixed maturities	$	3,091	$	5,744	$	10,113	$	16,806
Equity securities	184		467		512		1,966
Cash and cash equivalents	2		30		99		767
Other investments	558		62		843		17
Other assets	(92)		12		20		114
Investment income	3,743		6,315		11,587		19,670
Investment expenses	(272)		(305)		(850)		(836)
Net investment income	$	3,471	$	6,010	$	10,737	$	18,834

We have a quarterly portfolio monitoring process to identify and evaluate each fixed-income security whose carrying value may be impaired as the result of a credit loss. For each fixed-income security in an unrealized loss position, if we determine that we intend to sell the security or that it is more likely than not that we will be required to sell the security before recovery of the cost or amortized cost basis for reasons such as liquidity needs, contractual or regulatory requirements, the security's entire decline in fair value is recorded in earnings.

If our management decides not to sell the fixed-income security and it is more likely than not that we will not be required to sell the fixed-income security before recovery of its amortized cost basis, we evaluate whether the decline in fair value has resulted from credit losses or other factors. This is typically indicated by a change in the rating of the security assigned by a rating agency, and any adverse conditions specifically related to the security or industry, among other factors. If the assessment indicates that a credit loss may exist, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses will be recorded in earnings. Credit loss is limited to the difference between a security's amortized cost basis and its fair value. Any additional impairment not recorded through an allowance for credit losses is recognized in other comprehensive income.

During the three and nine-months ended September 30, 2021, we determined that none of our fixed-income securities shown in the table below that are in an unrealized loss position have declines in fair value that are reflected as a result of credit losses. Therefore, no credit loss allowance was recorded at September 30, 2021. The issuers of our debt security investments continue to make interest payments on a timely basis. We do not intend to sell, nor is it likely that we would be required to sell the debt securities before we recover our amortized cost basis. Equity securities are reported at fair value with changes in fair value recognized in the valuation of equity investments.


	Less Than Twelve Months					Twelve Months or More
	Number of Securities(1)	Gross Unrealized Losses		Fair Value		Number of Securities(1)	Gross Unrealized Losses		Fair Value
September 30, 2021
U.S. government and agency securities	81	$	1,978	$	73,886	10	$	30	$	4,730
Foreign governments	2	13		3,516		—	—		—
States, municipalities and political subdivisions	77	948		63,480		2	47		1,292
Public utilities	24	567		23,890		—	—		—
Corporate securities	227	3,596		197,453		2	15		588
Mortgage-backed securities	176	3,597		185,606		14	111		3,271
Asset-backed securities	58	103		35,080		4	59		1,759
Redeemable preferred stocks	1	2		89		1	7		92
Total fixed maturities	646	$	10,804	$	583,000	33	$	269	$	11,732

December 31, 2020
U.S. government and agency securities	44	$	129	$	40,341	18	$	10	$	10,482

States, municipalities and political subdivisions	22	272		30,538		—	—		—
Public utilities	8	28		9,472		—	—		—
Corporate securities	40	116		25,052		3	2		753
Mortgage-backed securities	87	397		100,171		8	69		3,479
Asset-backed securities	21	207		17,682		1	12		988
Redeemable preferred stocks	5	13		358		—	—		—
Total fixed maturities	227	$	1,162	$	223,614	30	$	93	$	15,702

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The hierarchy for inputs used in determining fair value maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Assets and liabilities recorded on our Unaudited Condensed Consolidated Balance Sheets at fair value are categorized in the fair value hierarchy based on the observability of inputs to the valuation techniques as follows:

Level 3: Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Unobservable inputs reflect our estimates of the assumptions that market participants would use in valuing the assets and liabilities.

We estimate the fair value of our investments using the closing prices on the last business day of the reporting period, obtained from active markets such as the NYSE, Nasdaq and NYSE American. For securities for which quoted prices in active markets are unavailable, we use a third-party pricing service that utilizes quoted prices in active markets for similar instruments, benchmark interest rates, broker quotes and other relevant inputs to estimate the fair value of those securities for which quoted prices are unavailable. Our estimates of fair value reflect the interest rate environment that existed as of the close of business on September 30, 2021 and December 31, 2020. Changes in interest rates subsequent to September 30, 2021 may affect the fair value of our investments.

The fair value of our fixed maturities is initially calculated by a third-party pricing service. Valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of proprietary models, produce valuation information in the form of a single fair value for individual fixed-income and other securities for which a fair value has been requested. The inputs used by the valuation service providers include, but are not limited to, market prices from recently completed transactions and transactions of comparable securities, interest rate yield curves, credit spreads, liquidity spreads, currency rates and other information, as applicable. Credit and liquidity spreads are typically implied from completed transactions and transactions of comparable securities. Valuation service providers also use proprietary discounted cash flow models that are widely accepted in the financial services industry and similar to those used by other market participants to value the same financial information. The valuation models take into account, among other things, market observable information as of the measurement date, as described above, as well as the specific attributes of the security being valued, including its term, interest rate, credit rating, industry sector and, where applicable, collateral quality and other issue or issuer specific information. Executing valuation models effectively requires seasoned professional judgment and experience.

Any change in the estimated fair value of our fixed-income securities would impact the amount of unrealized gain or loss we have recorded, which could change the amount we have recorded for our investments and other comprehensive income (loss) on our Unaudited Condensed Consolidated Balance Sheet as of September 30, 2021.


	Total		Level 1		Level 2		Level 3
September 30, 2021
U.S. government and agency securities	$	102,216	$	—	$	102,216	$	—
Foreign government	4,985		—		4,985		—
States, municipalities and political subdivisions	105,093		—		105,093		—
Public utilities	31,066		—		31,066		—
Corporate securities	299,044		—		299,044		—
Mortgage-backed securities	257,713		—		257,713		—
Asset-backed securities	80,163		—		80,163		—
Redeemable preferred stocks	4,660		814		3,846		—
Total fixed maturities	884,940		814		884,126		—
Mutual funds	22,838		17,193		5,645		—

Other common stocks	—		—		—		—
Non-redeemable preferred stocks	6,569		6,569		—		—
Total equity securities	29,407		23,762		5,645		—
Other investments (1)	8,418		300		8,118		—
Total investments	$	922,765	$	24,876	$	897,889	$	—

December 31, 2020
U.S. government and agency securities	$	130,425	$	—	$	130,425	$	—
Foreign government	1,516		—		1,516		—
States, municipalities and political subdivisions	134,382		—		134,382		—
Public utilities	29,980		—		29,980		—
Corporate securities	292,329		—		292,329		—
Mortgage-backed securities	288,212		—		288,212		—
Asset-backed securities	56,657		—		56,657		—
Redeemable preferred stocks	6,510		1,554		4,956		—
Total fixed maturities	940,011		1,554		938,457		—
Mutual Funds	152		152		—		—


Non-redeemable preferred stocks	7,293		7,293		—		—
Total equity securities	7,445		7,445		—		—
Other investments (1)	38,002		300		37,702		—
Total investments	$	985,458	$	9,299	$	976,159	$	—

Certain financial assets and financial liabilities are measured at fair value on a non-recurring basis; this is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). There were no financial instruments measured on a non-recurring basis at September 30, 2021 and December 31, 2020.

The carrying amounts for the following financial instrument categories approximate their fair values at September 30, 2021 and December 31, 2020, because of their short-term nature: cash and cash equivalents, accrued investment income, premiums receivable, reinsurance recoverable, reinsurance payable, other assets, and other liabilities. The carrying amount of the notes payable to the Florida State Board of Administration, Truist Financial Corporation (Truist) (formerly known as Branch Banking & Trust Corporation or BB&T), and our senior notes approximate fair value as the interest rates and terms are variable.

We are responsible for the determination of fair value and the supporting assumptions and methodologies. We have implemented a system of processes and controls designed to provide assurance that our assets and liabilities are appropriately valued. For fair values received from third parties, our processes are designed to provide assurance that the valuation methodologies and inputs are appropriate and consistently applied, the assumptions are reasonable and consistent with the objective of determining fair value, and the fair values are accurately recorded.

For our investments in U.S. government securities that do not have prices in active markets, agency securities, state and municipal governments, and corporate bonds, we obtain the fair values from our investment custodians, which use a third-party valuation service. The valuation service calculates prices for our investments in the aforementioned security types on a month-end basis by using several matrix-pricing methodologies that incorporate inputs from various sources. The model the valuation service uses to price U.S. government securities and securities of states and municipalities incorporates inputs from active market makers and inter-dealer brokers. To price corporate bonds and agency securities, the valuation service calculates non-call yield spreads on all issuers, uses option-adjusted yield spreads to account for any early redemption features, and adds final spreads to the U.S. Treasury curve at 3 p.m. (ET) as of quarter end. Since the inputs the valuation service uses in its calculations are not quoted prices in active markets, but are observable inputs, they represent Level 2 inputs.

In addition to the cash held on deposit described above, we also have securities on deposit with regulators, which are presented within our Fixed Maturities or Other Investments lines on the Unaudited Condensed Balance Sheets, dependent upon if they are short-term or long-term in nature. The table below shows the carrying value of those securities held on deposit with regulators.