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Investments

12 Months Ended

Dec. 31, 2023

Investments [Abstract]

Investments

4. Investments

The amortized cost and estimated fair value of fixed income securities as of December 31, 2023 and 2022, were as follows:

		December 31, 2023
		Cost or Amortized Cost				Allowance for Expected Credit Losses				Gross Unrealized Gains				Gross Unrealized Losses				Fair Value
Fixed income securities:
U.S. Government and agencies		$	10,998			$	—			$	—			$	(736	)		$	10,262
Obligations of states and political subdivisions			55,769				—				408				(4,716	)			51,461
Corporate securities			152,630				—				442				(10,856	)			142,216
Residential mortgage-backed securities			66,362				—				180				(5,379	)			61,163
Commercial mortgage-backed securities			33,532				—				148				(4,241	)			29,439
Asset-backed securities			52,692				—				142				(3,805	)			49,029
Redeemable preferred stocks			4,747				—				—				(586	)			4,161
Total fixed income securities		$	376,730			$	—			$	1,320			$	(30,319	)		$	347,731

		December 31, 2022
		Cost or Amortized Cost				Allowance for Expected Credit Losses				Gross Unrealized Gains				Gross Unrealized Losses				Fair Value
Fixed income securities:
U.S. Government and agencies		$	11,174			$	—			$	1			$	(1,008	)		$	10,167
Obligations of states and political subdivisions			60,342				—				38				(6,454	)			53,926
Corporate securities			136,837				—				109				(15,787	)			121,159
Residential mortgage-backed securities			53,254				—				85				(5,846	)			47,493
Commercial mortgage-backed securities			30,837				—				—				(4,702	)			26,135
Asset-backed securities			45,786				—				—				(5,061	)			40,725
Redeemable preferred stocks			4,747				—				—				(1,028	)			3,719
Total fixed income securities		$	342,977			$	—			$	233			$	(39,886	)		$	303,324

The amortized cost and estimated fair value of fixed income securities by contractual maturity are shown below. Actual maturities could differ from contractual maturities because issuers may have the right to call or prepay these securities.

		December 31, 2023
		Amortized Cost				Fair Value
Due to mature:
One year or less		$	9,612			$	9,436
After one year through five years			75,794				72,602
After five years through ten years			86,185				79,281
After ten years			47,806				42,620
Mortgage / asset-backed securities			152,586				139,631
Redeemable preferred stocks			4,747				4,161
Total fixed income securities		$	376,730			$	347,731

		December 31, 2022
		Amortized Cost				Fair Value
Due to mature:
One year or less		$	10,130			$	9,971
After one year through five years			81,879				77,031
After five years through ten years			76,648				65,966
After ten years			39,696				32,284
Mortgage / asset-backed securities			129,877				114,353
Redeemable preferred stocks			4,747				3,719
Total fixed income securities		$	342,977			$	303,324

Fixed income securities with a fair value of $6,403 at December 31, 2023, and $6,613 at December 31, 2022, were deposited with various state regulatory agencies as required by law. The Company has not pledged any assets to secure any obligations.

The investment category and duration of the Company’s gross unrealized losses on fixed income securities are shown below. Investments with unrealized losses are categorized with a duration of greater than 12 months when all positions of a security have continually been in a loss position for at least 12 months.

		December 31, 2023
		Less than 12 Months								Greater than 12 months								Total
		Fair Value				Unrealized Losses				Fair Value				Unrealized Losses				Fair Value				Unrealized Losses
Fixed income securities:
U.S. Government and agencies		$	—			$	—			$	9,018			$	(736	)		$	9,018			$	(736	)
Obligations of states and political subdivisions			5,239				(359	)			36,194				(4,357	)			41,433				(4,716	)
Corporate securities			8,018				(93	)			110,117				(10,763	)			118,135				(10,856	)
Residential mortgage-backed securities			12,054				(104	)			33,341				(5,275	)			45,395				(5,379	)
Commercial mortgage-backed securities			2,678				(5	)			23,713				(4,236	)			26,391				(4,241	)
Asset-backed securities			4,463				(18	)			30,200				(3,787	)			34,663				(3,805	)
Redeemable preferred stocks			—				—				4,161				(586	)			4,161				(586	)
Total fixed income securities		$	32,452			$	(579	)		$	246,744			$	(29,740	)		$	279,196			$	(30,319	)

		December 31, 2022
		Less than 12 Months								Greater than 12 months								Total
		Fair Value				Unrealized Losses				Fair Value				Unrealized Losses				Fair Value				Unrealized Losses
Fixed income securities:
U.S. Government and agencies		$	7,078			$	(537	)		$	2,587			$	(471	)		$	9,665			$	(1,008	)
Obligations of states and political subdivisions			40,213				(3,554	)			9,045				(2,900	)			49,258				(6,454	)
Corporate securities			76,645				(7,944	)			39,683				(7,843	)			116,328				(15,787	)
Residential mortgage-backed securities			21,017				(1,805	)			18,519				(4,041	)			39,536				(5,846	)
Commercial mortgage-backed securities			18,932				(2,674	)			7,204				(2,028	)			26,136				(4,702	)
Asset-backed securities			18,904				(1,522	)			21,809				(3,539	)			40,713				(5,061	)
Redeemable preferred stocks			3,015				(732	)			705				(296	)			3,720				(1,028	)
Total fixed income securities		$	185,804			$	(18,768	)		$	99,552			$	(21,118	)		$	285,356			$	(39,886	)

We, along with our investment advisors, frequently review our investment portfolio for declines in fair value that could be indicative of credit losses. Beginning on December 31, 2022, credit losses are recognized through an allowance account. We consider a number of factors when determining if an allowance for credit losses is necessary, including payment and default history, credit spreads, credit ratings and rating actions, and probability of default. We determine the credit loss component of fixed income securities by utilizing discounted cash flow modeling to determine the present value of the security and comparing the present value with the amortized cost of the security. We did not recognize any credit losses for fixed income securities at the time of adoption of the new credit loss accounting standard or during the year ended December 31, 2023. Therefore, there was no beginning or ending balance of credit losses for the years ended December 31, 2022 and 2023. See Item II, Part 8, Note 3 “Summary of Significant Accounting Policies” for additional information.

Net investment income consisted of the following:

		Year Ended December 31,
		2023				2022				2021
Fixed income securities		$	11,506			$	9,226			$	8,489
Equity securities			1,118				1,485				1,221
Real estate			622				595				625
Cash and cash equivalents			579				30				4
Total gross investment income			13,825				11,336				10,339
Investment expenses			3,369				3,516				3,208
Net investment income		$	10,456			$	7,820			$	7,131

Net investment gains (losses) consisted of the following:

		Year Ended December 31,
		2023				2022				2021
Gross realized gains:
Fixed income securities		$	1			$	117			$	677
Equity securities			13,974				7,078				17,453
Total gross realized gains			13,975				7,195				18,130
Gross realized losses, excluding credit impairment losses:
Fixed income securities			(583	)			(268	)			(27	)
Equity securities			(1,341	)			(5,003	)			(335	)
Total gross realized losses, excluding credit impairment losses			(1,924	)			(5,271	)			(362	)
Net realized gains			12,051				1,924				17,768
Change in net unrealized gain on equity securities			(9,927	)			(15,050	)			(2,289	)
Net investment gains (losses)		$	2,124			$	(13,126	)		$	15,479

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The entire disclosure for investments in certain debt and equity securities.

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