Investments

Investments in Securities

The aggregate estimated fair value, gross unrealized holding gains, gross unrealized holding losses and cost or amortized cost for securities by major security type are as follows:



As of March 31, 2016	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Fixed maturities, available-for-sale, at fair value:
General obligations of U.S. states, territories and political subdivisions	$	32,257,800	$	1,110,229	$	13,243	$	33,354,786
Special revenue issuer obligations of U.S. states, territories and political subdivisions	52,061,731		3,234,721		909		55,295,543
Corporate debt securities	17,006,078		727,908		492		17,733,494
Total	$	101,325,609	$	5,072,858	$	14,644	$	106,383,823
Equity securities, available-for-sale, at fair value:
Common stocks	$	23,962,393	$	13,807,635	$	88,459	$	37,681,569
Total	$	23,962,393	$	13,807,635	$	88,459	$	37,681,569
Short-term investments:
Money market funds and certificates of deposit	$	7,520,069	$	—	$	—	$	7,520,069
Total	$	7,520,069	$	—	$	—	$	7,520,069



As of December 31, 2015	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Fixed maturities, available-for-sale, at fair value:
General obligations of U.S. states, territories and political subdivisions	$	31,883,439	$	987,595	$	11,734	$	32,859,300
Special revenue issuer obligations of U.S. states, territories and political subdivisions	52,202,815		2,604,152		26,127		54,780,840
Corporate debt securities	17,004,985		539,832		58,473		17,486,344
Auction rate securities	924,587		15,313		—		939,900
Total	$	102,015,826	$	4,146,892	$	96,334	$	106,066,384
Equity securities, available-for-sale, at fair value:
Common stocks and nonredeemable preferred stocks	$	23,855,873	$	13,785,968	$	128,377	$	37,513,464
Total	$	23,855,873	$	13,785,968	$	128,377	$	37,513,464
Short-term investments:
Money market funds and certificates of deposit	$	6,865,406	$	—	$	—	$	6,865,406
Total	$	6,865,406	$	—	$	—	$	6,865,406

The special revenue category for both periods presented includes at least 50 individual bonds with revenue sources from a variety of municipal sectors.

The scheduled maturities of fixed maturity securities at March 31, 2016 were as follows:



	Available-for-Sale
	Amortized Cost		Fair Value
Due in one year or less	$	11,488,568	$	11,607,930
Due after one year through five years	43,806,261		45,722,867
Due five years through ten years	44,039,421		46,529,077
Due after ten years	1,991,359		2,523,949
Total	$	101,325,609	$	106,383,823

Realized gains and losses on investments for the three months ended March 31 are summarized as follows:



	2016			2015
Gross realized gains from securities:
Special revenue issuer obligations of U.S. states, territories and political subdivisions	$	160		$	—
Corporate debt securities	—			999
Common stocks and nonredeemable preferred stocks	227,960			8,200
Auction rate securities	74,996			—
Total	$	303,116		$	9,199
Gross realized losses from securities:
General obligations of U.S. states, territories and political subdivisions	$	—		$	(396	)
Special revenue issuer obligations of U.S. states, territories and political subdivisions	(85		)	—
Common stocks and nonredeemable preferred stocks	(116,952		)	—
Other than temporary impairment of securities	(42,794		)	—
Total	$	(159,831	)	$	(396	)
Net realized gain from securities	$	143,285		$	8,803
Net realized gain on other investments:
Gains on other investments	6,545			6,000
Total	$	6,545		$	6,000
Net realized gain on investments	$	149,830		$	14,803

Realized gains and losses are determined on the specific identification method.

The following table presents the gross unrealized losses on investment securities and the fair value of the securities, aggregated by investment category and length of time that individual securities have been in a continuous loss position at March 31, 2016 and December 31, 2015:



	Less than 12 Months					12 Months or Longer					Total
As of March 31, 2016	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
General obligations of U.S. states, territories and political subdivisions	$	1,122,050	$	(143	)	$	1,070,310	$	(13,100	)	$	2,192,360	$	(13,243	)
Special revenue issuer obligations of U.S. states, territories and political subdivisions	893,506		(909		)	—		—			893,506		(909		)
Corporate debt securities	890,520		(492		)	—		—			890,520		(492		)
Total fixed income securities	$	2,906,076	$	(1,544	)	$	1,070,310	$	(13,100	)	$	3,976,386	$	(14,644	)
Equity securities	$	2,123,918	$	(88,459	)	$	—	$	—		$	2,123,918	$	(88,459	)
Total temporarily impaired securities	$	5,029,994	$	(90,003	)	$	1,070,310	$	(13,100	)	$	6,100,304	$	(103,103	)



	Less than 12 Months					12 Months or Longer					Total
As of December 31, 2015	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
General obligations of U.S. states, territories and political subdivisions	$	1,758,345	$	(11,734	)	$	—	$	—		$	1,758,345	$	(11,734	)
Special revenue issuer obligations of U.S. states, territories and political subdivisions	1,672,217		(5,139		)	1,183,963		(20,989		)	2,856,180		(26,128		)
Corporate debt securities	6,981,275		(58,472		)	—		—			6,981,275		(58,472		)
Total fixed income securities	$	10,411,837	$	(75,345	)	$	1,183,963	$	(20,989	)	$	11,595,800	$	(96,334	)
Equity securities	$	5,533,667	$	(128,377	)	$	—	$	—		$	5,533,667	$	(128,377	)
Total temporarily impaired securities	$	15,945,504	$	(203,722	)	$	1,183,963	$	(20,989	)	$	17,129,467	$	(224,711	)

As of March 31, 2016, the Company held $3,976,386 in fixed maturity securities with unrealized losses of $14,644. As of December 31, 2015, the Company held $11,595,800 in fixed maturity securities with unrealized losses of $96,334. The decline in fair value of the fixed maturity securities can be attributed primarily to changes in market interest rates and changes in credit spreads over Treasury securities. Because the Company does not have the intent to sell these securities and will likely not be compelled to sell them before it can recover its cost basis, the Company does not consider these investments to be other-than-temporarily impaired.

As of March 31, 2016, the Company held $2,123,918 in equity securities with unrealized losses of $88,459. As of December 31, 2015, the Company held $5,533,667 in equity securities with unrealized losses of $128,377. The unrealized losses related to holdings of equity securities were caused by market changes that the Company considers to be temporary. Since the Company has the intent and ability to hold these equity securities until a recovery of fair value, the Company does not consider these investments other-than-temporarily impaired.

Factors considered in determining whether a loss is temporary include the length of time and extent to which fair value has been below cost, the financial condition and prospects of the issuer (including credit ratings and analyst reports) and macro-economic changes. A total of 11 and 30 securities had unrealized losses at March 31, 2016 and December 31, 2015, respectively. Reviews of the values of securities are inherently uncertain and the value of the investment may not fully recover, or may decline in future periods resulting in a realized loss. The Company recorded other-than-temporary impairment charges for debt and equity investments in the amount of $42,794 for the three months ended March 31, 2016 and no other-than-temporary impairment charges for debt and equity investments for the three months ended March 31, 2015. Other-than-temporary impairment charges are included in net realized gain on investments in the Consolidated Statements of Income.

Variable Interest Entities

The Company holds investments in VIEs that are not consolidated in the Company's financial statements as the Company is not the primary beneficiary. These entities are considered VIEs as the equity investors at risk, including the Company, do not have the power over the activities that most significantly impact the economic performance of the entities; this power resides with a third-party general partner or managing member that cannot be removed except for cause. The following table sets forth details about the Company's variable interest investments in VIEs as of March 31, 2016:



Type of Investment	Balance Sheet Classification	Carrying Value		Estimated Fair Value		Maximum Potential Loss (a)
Tax credit LP's	Other investments	$	969,153	$	969,153	$	1,325,000
Real estate LLC's or LP's	Other investments	3,481,576		3,688,921		6,150,000
Small business investment LP's	Other investments	2,127,376		2,029,385		1,800,000
Total		$	6,578,105	$	6,687,459	$	9,275,000



(a)		Maximum potential loss is calculated as the total investment in the LLC or LP including any capital commitments that may have not yet been called. The Company is not exposed to any loss beyond the total commitment of its investment.