Investments (Tables)

12 Months Ended

Dec. 31, 2016

Investments, Debt and Equity Securities [Abstract]

Schedule of Fixed Maturity and Equity Securities Available-for-Sale

The following tables provide information relating to investments in fixed maturity and equity securities (in thousands):



December 31, 2016	Amortized		Unrealized		Unrealized			Fair
December 31, 2016	Cost		Gains		Losses			Value
Fixed maturity securities
U.S. Government and government agencies	$	15,910	$	135	$	(95	)	$	15,950
States, municipalities and political subdivisions	374,527		4,408		(3,858		)	375,077
Foreign government	6,380		—		(402		)	5,978
Residential mortgage-backed securities	136,126		2,634		(564		)	138,196
Commercial mortgage-backed securities	48,715		427		(89		)	49,053
Asset-backed securities	76,303		1,934		(572		)	77,665
Corporate and other	600,458		23,635		(7,054		)	617,039
Total fixed maturity securities	$	1,258,419	$	33,173	$	(12,634	)	$	1,278,958
Equity securities
Common stocks	$	16,236	$	—	$	(1,371	)	$	14,865
Perpetual preferred stocks	37,041		191		(578		)	36,654
Total equity securities	$	53,277	$	191	$	(1,949	)	$	51,519



December 31, 2015	Amortized		Unrealized		Unrealized			Fair
December 31, 2015	Cost		Gains		Losses			Value
Fixed maturity securities
U.S. Government and government agencies	$	17,131	$	1	$	(49	)	$	17,083
States, municipalities and political subdivisions	387,427		60		(1,227		)	386,260
Foreign government	6,426		3		—			6,429
Residential mortgage-backed securities	166,324		579		(588		)	166,315
Commercial mortgage-backed securities	74,898		233		(96		)	75,035
Asset-backed securities	34,396		106		(51		)	34,451



Corporate and other	553,487		318		(7,537		)	546,268
Total fixed maturity securities	$	1,240,089	$	1,300	$	(9,548	)	$	1,231,841
Equity securities
Common stocks	$	19,935	$	1	$	(1,311	)	$	18,625
Perpetual preferred stocks	30,901		162		(6		)	31,057
Total equity securities	$	50,836	$	163	$	(1,317	)	$	49,682

Schedule of Maturities of Fixed Maturity Securities Available-for-Sale

The amortized cost and fair value of fixed maturity securities available-for-sale as of December 31, 2016 are shown by contractual maturity in the table below (in thousands). Actual maturities can differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Asset and mortgage-backed securities are shown separately in the table below, as they are not due at a single maturity date:



	Amortized		Fair
	Cost		Value
Corporate, Municipal, U.S. Government and Other securities
Due in one year or less	$	48,194	$	44,237
Due after one year through five years	113,158		113,987
Due after five years through ten years	137,763		139,539
Due after ten years	698,160		716,281
Subtotal	997,275		1,014,044
Mortgage-backed securities	184,841		187,249
Asset-backed securities	76,303		77,665
Total	$	1,258,419	$	1,278,958

Schedule of Major Industry Types of Fixed Maturity Holdings

The tables below show the major industry types of the Company’s corporate and other fixed maturity securities (in thousands):



	December 31, 2016						December 31, 2015
	Amortized		Fair		% of		Amortized		Fair		% of
	Cost		Value		Total		Cost		Value		Total
Finance, insurance, and real estate	$	214,911	$	211,834	34.3	%	$	223,144	$	217,377	39.8	%
Transportation, communication and other services	180,647		189,163		30.7	%	156,022		155,175		28.4	%
Manufacturing	112,644		118,440		19.2	%	95,138		94,792		17.4	%
Other	92,256		97,602		15.8	%	79,183		78,924		14.4	%
Total	$	600,458	$	617,039	100.0	%	$	553,487	$	546,268	100.0	%

Schedule of Unrealized Losses for Fixed Maturities and Equity Securities

The following table presents the total unrealized losses for the 269 and 528 fixed maturity and equity securities held by the Company as of December 31, 2016 and December 31, 2015, respectively, where the estimated fair value had declined and remained below amortized cost by the indicated amount (in thousands):



	December 31, 2016					December 31, 2015
	Unrealized			% of		Unrealized			% of
	Losses			Total		Losses			Total
Fixed maturity and equity securities
Less than 20%	$	(10,069	)	69.0	%	$	(5,667	)	52.2	%
20% or more for less than six months	(482		)	3.3	%	—			—	%
20% or more for six months or greater	(4,032		)	27.6	%	(5,198		)	47.8	%
Total	$	(14,583	)	100.0	%	$	(10,865	)	100.0	%

Schedule of Estimated Fair Value and Gross Unrealized Loss

The following tables present the estimated fair values and gross unrealized losses for the 269 and 528 fixed maturity and equity securities held by the Company that have estimated fair values below amortized cost as of December 31, 2016 and December 31, 2015, respectively. The Company does not have any OTTI losses reported in AOCI. These investments are presented by investment category and the length of time the related fair value has remained below amortized cost (in thousands):



December 31, 2016	Less than 12 months					12 months of greater					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
Fixed maturity securities
U.S. Government and government agencies	$	4,392	$	(95	)	$	—	$	—		$	4,392	$	(95	)
States, municipalities and political subdivisions	207,740		(3,858		)	—		—			207,740		(3,858		)
Foreign government	5,978		(402		)	—		—			5,978		(402		)
Residential mortgage-backed securities	54,385		(564		)	—		—			54,385		(564		)
Commercial mortgage-backed securities	13,159		(89		)	—		—			13,159		(89		)
Asset-backed securities	12,443		(572		)	—		—			12,443		(572		)
Corporate and other	147,653		(3,022		)	3,579		(4,032		)	151,232		(7,054		)
Total fixed maturity securities	$	445,750	$	(8,602	)	$	3,579	$	(4,032	)	$	449,329	$	(12,634	)
Equity securities
Common stocks	$	14,585	$	(1,371	)	$	—	$	—		$	14,585	$	(1,371	)
Perpetual preferred stocks	20,464		(578		)	—		—			20,464		(578		)
Total equity securities	$	35,049	$	(1,949	)	$	—	$	—		$	35,049	$	(1,949	)

December 31, 2015

Less than 12 months

12 months of greater

Total

Fair

Unrealized

Fair

Unrealized

Fair

Unrealized

Value

Losses

Value

Losses

Value

Losses



Fixed maturity securities
U.S. Government and government agencies	$	15,409	$	(49	)	$	—	$	—	$	15,409	$	(49	)
States, municipalities and political subdivisions	294,105		(1,227		)	—		—		294,105		(1,227		)
Residential mortgage-backed securities	77,695		(588		)	—		—		77,695		(588		)
Commercial mortgage-backed securities	44,618		(96		)	—		—		44,618		(96		)
Asset-backed securities	22,550		(51		)	—		—		22,550		(51		)
Corporate and other	466,293		(7,537		)	—		—		466,293		(7,537		)
Total fixed maturity securities	$	920,670	$	(9,548	)	$	—	$	—	$	920,670	$	(9,548	)
Equity securities
Common stocks	$	13,657	$	(1,311	)	$	—	$	—	$	13,657	$	(1,311	)
Perpetual preferred stocks	7,378		(6		)	—		—		7,378		(6		)
Total equity securities	$	21,035	$	(1,317	)	$	—	$	—	$	21,035	$	(1,317	)

Schedule of Other Invested Assets

Carrying values of other invested assets accounted for under cost and equity method are as follows (in thousands):



	December 31, 2016				December 31, 2015
	Cost Method		Equity Method		Cost Method		Equity Method
Common Equity	$	138	$	1,047	$	249	$	6,475
Preferred Equity	2,484		9,971		1,655		7,522
Warrants	3,097		—		3,880		—
Limited Partnerships	—		1,116		—		1,171
Joint Ventures	—		40,697		—		27,324
Total	$	5,719	$	52,831	$	5,784	$	42,492

Additionally, other invested assets include common stock purchase warrants and call options accounted for under ASC 815, "Derivatives and Hedging" ("ASC 815") (in thousands):



December 31, 2016	Cost		Gains		Losses			Fair Value
Warrants	$	6,332	$	180	$	(2,919	)	$	3,593
Call Options	230		—		(10		)	220
Total	$	6,562	$	180	$	(2,929	)	$	3,813



December 31, 2015	Cost		Gains		Losses			Fair Value
Warrants	$	6,383	$	428	$	(2,600	)	$	4,211
Call Options	1,680		—		(1,048		)	632
Total	$	8,063	$	428	$	(3,648	)	$	4,843

Summarized Information for Equity Method Investments

Summarized information for the Company's equity method investments as of and for the years ended December 31, 2016, 2015 and 2014 (in thousands) is as follows (information for two of the investees is reported on a one month lag):



	Years Ended December 31,
		2016		2015			2014
Net revenue		$	558,180	$	502,122		$	151,594
Gross profit		$	164,853	$	103,236		$	35,783
Income (loss) from continuing operations		$	51,690	$	(18,743	)	$	5,142



Net income (loss)	$	(11,123	)	$	(36,873	)	$	5,142

Current assets	$	285,466		$	256,372		$	269,864
Noncurrent assets	$	278,766		$	219,434		$	149,995
Current liabilities	$	184,068		$	169,002		$	179,552
Noncurrent liabilities	$	131,587		$	132,934		$	18,063

Net Investment Income

he major sources of net investment income were as follows (in thousands):



	Year ended December 31,
	2016			2015
Fixed maturity securities, available-for-sale at fair value	$	54,685		$	964
Equity securities, available-for-sale at fair value	2,263			93
Mortgage loans	491			—
Policy loans	1,173			18
Other invested assets	321			—
Gross investment income	58,933			1,075
External investment expense	(901		)	(44		)
Net investment income	$	58,032		$	1,031

Net Realized Gain (Loss) on Investments

The major sources of net realized gains (losses) on investments were as follows (in thousands):



	Year ended December 31,
	2016			2015
Realized gains on fixed maturity securities	$	4,868		$	256
Realized losses on fixed maturity securities	(2,367		)	—
Realized gains on equity securities	4,525			—
Realized losses on equity securities	(352		)	—
Net realized gains (losses) on derivative instruments	(1,492		)	—
Impairment loss	(163		)	—
Net realized gains (losses)	$	5,019		$	256