Investments

6 Months Ended

Jun. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

INVESTMENTS

The Company invests primarily in fixed maturity securities, which totaled 86.5% of total cash and invested assets at June 30, 2023, as shown below.


Carrying Value (In thousands, except for %)	June 30, 2023				December 31, 2022
	Amount		%		Amount	%

Cash and invested assets:
Fixed maturity securities	$	1,206,483	86.5	%	1,179,619	86.5	%
Equity securities	11,710		0.8		11,590	0.8
Policy loans	77,944		5.6		78,773	5.8
Other long-term investments	77,262		5.5		69,558	5.1
Short-term investments	249		—		1,241	0.1
Cash and cash equivalents	20,914		1.6		22,973	1.7

Total cash and invested assets	$	1,394,562	100.0	%	1,363,754	100.0	%

The following tables represent the amortized cost, gross unrealized gains and losses and fair value of fixed maturity securities as of the dates indicated.


	Amortized Cost		Gross Unrealized Gains	Gross Unrealized Losses	Fair Value
June 30, 2023
(In thousands)

Fixed maturity securities:
Available-for-sale:
U.S. Treasury securities	$	5,710	88	29	5,769
U.S. Government-sponsored enterprises	3,419		268	3	3,684
States and political subdivisions	331,708		1,581	31,482	301,807
Corporate:
Financial	248,462		408	38,843	210,027
Consumer	249,961		1,184	42,172	208,973
Utilities	119,216		98	22,330	96,984
Energy	76,691		13	10,186	66,518
All other	186,470		572	25,439	161,603
Commercial mortgage-backed	171		—	4	167
Residential mortgage-backed	110,439		6	10,062	100,383
Asset-backed	52,774		53	2,359	50,468
Foreign governments	100		—	—	100
Total fixed maturity securities	$	1,385,121	4,271	182,909	1,206,483


	Amortized Cost		Gross Unrealized Gains	Gross Unrealized Losses	Fair Value
December 31, 2022
(In thousands)

Fixed maturity securities:
Available-for-sale:
U.S. Treasury securities	$	9,425	152	9	9,568
U.S. Government-sponsored enterprises	3,434		277	1	3,710
States and political subdivisions	344,208		1,114	37,964	307,358
Corporate:
Financial	243,758		512	42,383	201,887
Consumer	247,824		758	47,138	201,444
Utilities	115,738		39	23,790	91,987
Energy	76,065		—	11,395	64,670
All other	184,022		683	29,048	155,657
Commercial mortgage-backed	171		—	2	169
Residential mortgage-backed	110,582		9	10,765	99,826
Asset-backed	45,991		18	2,767	43,242
Foreign governments	100		1	—	101
Total fixed maturity securities	$	1,381,318	3,563	205,262	1,179,619

Most of the Company's equity securities are diversified stock and bond mutual funds.


Fair Value (In thousands)	June 30, 2023		December 31, 2022

Equity securities:
Stock mutual funds	$	2,727	2,615
Bond mutual funds	4,348		4,337
Common stock	790		857
Non-redeemable preferred stock	8		8
Non-redeemable preferred stock fund	3,837		3,773
Total equity securities	$	11,710	11,590

VALUATION OF INVESTMENTS

Available-for-sale ("AFS") fixed maturity securities are reported in the consolidated financial statements at fair value. Equity securities are measured at fair value with the change in fair value recorded through net income (loss). The Company recognized net investment related losses of $0.2 million and gains of $0.1 million on equity securities held for the three and six months ended June 30, 2023 and losses of $1.2 million and $2.0 million for the same periods ended June 30, 2022, respectively.

The Company considers several factors in its review and evaluation of individual investments, using the process described in Part IV, Item 15, Note 2. Investments in the notes to the consolidated financial statements of our Form 10-K to determine whether a credit valuation loss exists. For the three and six months ended June 30, 2023 and 2022, the Company recorded no credit valuation losses on fixed maturity securities.

The following tables present the fair values and gross unrealized losses of fixed maturity securities that are not deemed to have credit losses, aggregated by investment category and length of time that individual securities have been in a continuous loss position at June 30, 2023 and December 31, 2022.


June 30, 2023	Less than 12 months				Greater than 12 months			Total
(In thousands, except for # of securities)	Fair Value		Unrealized Losses	# of Securities	Fair Value	Unrealized Losses	# of Securities	Fair Value	Unrealized Losses	# of Securities

Fixed maturity securities:
Available-for-sale securities:
U.S. Treasury securities	$	740	20	3	65	9	2	805	29	5
U.S. Government-sponsored enterprises	220		3	1	—	—	—	220	3	1
States and political subdivisions	94,929		3,360	121	112,451	28,122	141	207,380	31,482	262
Corporate:
Financial	38,326		1,768	59	152,433	37,075	195	190,759	38,843	254
Consumer	48,950		2,896	57	139,405	39,276	189	188,355	42,172	246
Utilities	16,392		593	58	75,728	21,737	121	92,120	22,330	179
Energy	12,636		426	17	53,020	9,760	66	65,656	10,186	83
All Other	43,739		1,959	55	108,752	23,480	133	152,491	25,439	188
Commercial mortgage-backed	167		4	2	—	—	—	167	4	2
Residential mortgage-backed	82,833		7,194	78	17,384	2,868	26	100,217	10,062	104
Asset-backed	11,309		285	20	31,365	2,074	35	42,674	2,359	55

Total fixed maturity securities	$	350,241	18,508	471	690,603	164,401	908	1,040,844	182,909	1,379


December 31, 2022	Less than 12 months				Greater than 12 months			Total
(In thousands, except for # of securities)	Fair Value		Unrealized Losses	# of Securities	Fair Value	Unrealized Losses	# of Securities	Fair Value	Unrealized Losses	# of Securities

Fixed maturity securities:
Available-for-sale securities:
U.S. Treasury securities	$	—	—	—	64	9	2	64	9	2
U.S. Government-sponsored enterprises	223		1	1	—	—	—	223	1	1
States and political subdivisions	189,084		30,866	242	14,184	7,098	14	203,268	37,964	256
Corporate:
Financial	182,447		39,122	237	6,144	3,261	16	188,591	42,383	253
Consumer	164,224		34,823	220	23,417	12,315	30	187,641	47,138	250
Utilities	73,483		15,959	152	16,413	7,831	18	89,896	23,790	170
Energy	59,053		9,601	75	5,617	1,794	8	64,670	11,395	83
All Other	140,955		25,337	171	7,910	3,711	15	148,865	29,048	186
Commercial mortgage-backed	168		2	2	—	—	—	168	2	2
Residential mortgage-backed	98,758		10,514	95	759	251	5	99,517	10,765	100
Asset-backed	37,067		2,485	41	4,264	282	9	41,331	2,767	50
Total fixed maturity securities	$	945,462	168,710	1,236	78,772	36,552	117	1,024,234	205,262	1,353

In each category of our fixed maturity securities described above, we do not intend to sell our investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases. As of June 30, 2023 and December 31, 2022, 99% of the fair value of our fixed maturity securities portfolio was rated investment grade. While the losses are currently unrealized, we continue to monitor all fixed maturity securities on an on-going basis as future information may become available which could result in an allowance being recorded. While we experience unrealized losses across several corporate sectors, the financial sector includes exposure to banks which have been impacted the most by recent economic and interest rate pressures. We have assessed our exposure in this sector and believe our investments have access to sufficient liquidity to meet their debt obligations.

These unrealized losses on fixed maturity securities are due to noncredit-related factors, including widening credit spreads and rising interest rates since purchase, which have little bearing on the recoverability of our investments, hence they are not recognized as credit losses. The fair value is expected to recover as the securities approach maturity or if market yields for such investments decline.

The amortized cost and fair value of fixed maturity securities at June 30, 2023 by contractual maturity are shown in the table below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date have been reflected based upon final stated maturity.


June 30, 2023	Amortized Cost		Fair Value
(In thousands)
Fixed maturity securities:
Due in one year or less	$	15,095	14,965
Due after one year through five years	125,549		122,715
Due after five years through ten years	263,546		251,588
Due after ten years	980,931		817,215
Total fixed maturity securities	$	1,385,121	1,206,483

The Company uses the specific identification method of the individual security to determine the cost basis used in the calculation of realized gains and losses related to security sales.



	Three Months Ended			Six Months Ended
	June 30,			June 30,
(In thousands)	2023		2022	2023	2022
Fixed maturity securities, available-for-sale:
Proceeds	$	1,379	27,728	4,244	28,828
Gross realized gains	$	—	101	5	101
Gross realized losses	$	5	102	17	102