
	Cost or Adjusted/Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
June 30, 2022
U.S. government and agency securities	$	39,608	$	1	$	3,044	$	36,565
Foreign government	3,376		5		19		3,362
States, municipalities and political subdivisions	70,260		10		5,606		64,664
Public utilities	19,626		—		1,796		17,830
Corporate securities	213,904		13		21,472		192,445
Mortgage-backed securities	161,457		13		15,474		145,996
Asset-backed securities	65,833		—		3,421		62,412
Redeemable preferred stocks	3,995		—		178		3,817
Total fixed maturities	$	578,059	$	42	$	51,010	$	527,091

December 31, 2021
U.S. government and agency securities	$	50,373	$	293	$	1,326	$	49,340
Foreign government	3,383		84		8		3,459
States, municipalities and political subdivisions	80,385		592		1,081		79,896
Public utilities	26,103		164		810		25,457
Corporate securities	246,933		2,303		4,793		244,443
Mortgage-backed securities	190,383		554		4,197		186,740
Asset-backed securities	70,569		116		523		70,162
Redeemable preferred stocks	4,010		106		11		4,105
Total fixed maturities	$	672,139	$	4,212	$	12,749	$	663,602

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 six months ended June 30, 2022 and 2021, respectively:


	2022				2021
	Gains (Losses)		Fair Value at Sale		Gains (Losses)		Fair Value at Sale
Three Months Ended June 30,
Fixed maturities	$	23	$	20,423	$	107	$	55,065
Equity securities	—		—		—		—
Short-term investments	—		—		—		7,774
Total realized gains	23		20,423		107		62,839
Fixed maturities	(101)		1,135		(212)		7,195
Equity securities	—		—		(16)		425
Short-term investments	—		—		(3)		1,998
Total realized losses	(101)		1,135		(231)		9,618
Net realized investment losses	$	(78)	$	21,558	$	(124)	$	72,457
Six Months Ended June 30,
Fixed maturities	$	654	$	61,841	$	719	$	111,202
Equity securities	—		—		2		23
Short-term investments	—		33		—		14,830
Total realized gains	654		61,874		721		126,055
Fixed maturities	(2,490)		45,695		(308)		31,621
Equity securities	(11)		88		(18)		519
Short-term investments	—		—		(16)		7,984
Total realized losses	(2,501)		45,783		(342)		40,124
Net realized investment gains (losses)	$	(1,847)	$	107,657	$	379	$	166,179


	June 30, 2022
	Cost or Amortized Cost		Percent of Total		Fair Value		Percent of Total
Due in one year or less	$	24,437	4.2	%	$	24,347	4.6	%
Due after one year through five years	188,439		32.6		177,045		33.6
Due after five years through ten years	125,905		21.8		107,120		20.3
Due after ten years	11,988		2.1		10,171		1.9
Asset and mortgage-backed securities	227,290		39.3		208,408		39.6
Total	$	578,059	100.0	%	$	527,091	100.0	%


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Fixed maturities	$	2,345	$	3,333	$	4,576	$	7,022
Equity securities	196		199		390		328
Cash and cash equivalents	468		39		617		97
Other investments	330		295		475		285
Other assets	5		71		9		112
Investment income	3,344		3,937		6,067		7,844
Investment expenses	(204)		(254)		(449)		(578)
Net investment income	$	3,140	$	3,683	$	5,618	$	7,266

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 loss.

During the three and six months ended June 30, 2022, 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 June 30, 2022. 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
June 30, 2022
U.S. government and agency securities	62	$	199	$	6,918	30	$	2,845	$	28,633
Foreign governments	3	19		2,358		—	—		—
States, municipalities and political subdivisions	100	3,809		44,934		12	1,797		13,302
Public utilities	21	505		9,892		9	1,291		7,939
Corporate securities	246	6,139		97,252		105	15,333		87,762
Mortgage-backed securities	177	4,823		74,066		80	10,651		70,979
Asset-backed securities	118	3,160		53,077		14	261		8,486
Redeemable preferred stocks	34	167		3,729		1	11		88
Total fixed maturities	761	$	18,821	$	292,226	251	$	32,189	$	217,189

December 31, 2021
U.S. government and agency securities	39	$	971	$	32,167	15	$	355	$	8,126
Foreign governments	1	8		2,010		—	—		—
States, municipalities and political subdivisions	63	761		41,670		8	320		11,423
Public utilities	14	346		12,719		7	464		7,708
Corporate securities	205	4,589		158,959		12	204		7,896
Mortgage-backed securities	138	2,638		111,636		37	1,559		41,786
Asset-backed securities	111	493		60,566		2	30		1,596
Redeemable preferred stocks	1	2		90		1	9		91
Total fixed maturities	572	$	9,808	$	419,817	82	$	2,941	$	78,626

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.

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 June 30, 2022 and December 31, 2021. Changes in interest rates subsequent to June 30, 2022 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 loss on our Unaudited Condensed Consolidated Balance Sheet as of June 30, 2022.


	Total		Level 1		Level 2		Level 3
June 30, 2022
U.S. government and agency securities	$	36,565	$	—	$	36,565	$	—
Foreign government	3,362		—		3,362		—
States, municipalities and political subdivisions	64,664		—		64,664		—
Public utilities	17,830		—		17,830		—
Corporate securities	192,445		—		192,445		—
Mortgage-backed securities	145,996		—		145,996		—
Asset-backed securities	62,412		—		62,412		—
Redeemable preferred stocks	3,817		481		3,336		—
Total fixed maturities	527,091		481		526,610		—
Mutual funds	33,027		22,369		10,658		—


Non-redeemable preferred stocks	4,525		4,525		—		—
Total equity securities	37,552		26,894		10,658		—
Other investments (1)	481		300		181		—
Total investments	$	565,124	$	27,675	$	537,449	$	—

December 31, 2021
U.S. government and agency securities	$	49,340	$	—	$	49,340	$	—
Foreign government	3,459		—		3,459		—
States, municipalities and political subdivisions	79,896		—		79,896		—
Public utilities	25,457		—		25,457		—
Corporate securities	244,443		—		244,443		—
Mortgage-backed securities	186,740		—		186,740		—
Asset-backed securities	70,162		—		70,162		—
Redeemable preferred stocks	4,105		535		3,570		—
Total fixed maturities	663,602		535		663,067		—
Mutual Funds	33,064		24,652		8,412		—


Non-redeemable preferred stocks	4,894		4,894		—		—
Total equity securities	37,958		29,546		8,412		—
Other investments (1)	381		300		81		—
Total investments	$	701,941	$	30,381	$	671,560	$	—

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 June 30, 2022 and December 31, 2021.

The carrying amounts for the following financial instrument categories approximate their fair values at June 30, 2022 and December 31, 2021, 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), 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.