Note 8. Investments

The following tables set forth the carrying value, gross unrealized gains, gross unrealized losses and amortized cost of the Company’s investments, aggregated by type and industry, as of September 30, 2015 and December 31, 2014.

Investments were comprised of the following:

	September 30, 2015
	Carrying Value		Gross Unrealized Gains		Gross Unrealized Losses		Amortized Cost
Fixed maturities:
Bonds:
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	30,782	$	430	$	243	$	30,595
Obligations of states and political subdivisions		25,720		721		415		25,414
Corporate securities:
Utilities and telecom		17,728		1,537		727		16,918
Financial services		51,108		2,167		1,149		50,090
Other business – diversified		63,014		944		4,066		66,136
Other consumer – diversified		23,014		183		1,024		23,855
Total corporate securities		154,864		4,831		6,966		156,999
Redeemable preferred stocks:
Financial services		252		2		-		250
Other consumer – diversified		192		-		-		192
Total redeemable preferred stocks		444		2		-		442
Total fixed maturities		211,810		5,984		7,624		213,450
Equity securities:
Common and non-redeemable preferred stocks:
Utilities and telecom		1,305		341		-		964
Financial services		5,039		711		-		4,328
Other business – diversified		195		148		-		47
Other consumer – diversified		13,449		7,835		-		5,614
Total equity securities		19,988		9,035		-		10,953
Other invested assets		2,372		-		-		2,372
Policy loans		2,181		-		-		2,181
Real estate		38		-		-		38
Investments in unconsolidated trusts		1,238		-		-		1,238
Total investments	$	237,627	$	15,019	$	7,624	$	230,232

	December 31, 2014
	Carrying Value		Gross Unrealized Gains		Gross Unrealized Losses		Amortized Cost
Fixed maturities:
Bonds:
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	33,898	$	1,459	$	30	$	32,469
Obligations of states and political subdivisions		11,459		681		-		10,778
Corporate securities:
Utilities and telecom		13,980		2,355		-		11,625
Financial services		59,224		3,404		588		56,408
Other business – diversified		70,139		2,076		1,830		69,893
Other consumer – diversified		25,388		332		547		25,603
Total corporate securities		168,731		8,167		2,965		163,529
Redeemable preferred stocks:
Financial services		608		8		-		600
Other consumer – diversified		192		-		-		192
Total redeemable preferred stocks		800		8		-		792
Total fixed maturities		214,888		10,315		2,995		207,568
Equity securities:
Common and non-redeemable preferred stocks:
Utilities and telecom		1,403		439		-		964
Financial services		6,083		739		-		5,344
Other business – diversified		226		179		-		47
Other consumer – diversified		11,212		5,598		-		5,614
Total equity securities		18,924		6,955		-		11,969
Other invested assets		2,995		-		-		2,995
Policy loans		2,202		-		-		2,202
Real estate		38		-		-		38
Investments in unconsolidated trusts		1,238		-		-		1,238
Total investments	$	240,285	$	17,270	$	2,995	$	226,010

The carrying value and amortized cost of the Company’s investments in fixed maturities at September 30, 2015 by contractual maturity were as follows. Actual maturities may differ from contractual maturities because issuers may call or prepay obligations with or without call or prepayment penalties.

	September 30, 2015
	Carrying Value		Amortized Cost
Due in one year or less	$	4,186	$	4,115
Due after one year through five years		20,023		19,593
Due after five years through ten years		94,107		96,140
Due after ten years		92,368		92,607
Varying maturities		1,126		995
Totals	$	211,810	$	213,450

The following table sets forth the carrying value, amortized cost, and net unrealized gains (losses) of the Company’s investments aggregated by industry as of September 30, 2015 and December 31, 2014.

	September 30, 2015							December 31, 2014
	Carrying Value		Amortized Cost		Unrealized Gains (Losses)			Carrying Value		Amortized Cost		Unrealized Gains
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	30,782	$	30,595	$	187		$	33,898	$	32,469	$	1,429
Obligations of states and political subdivisions		25,720		25,414		306			11,459		10,778		681
Utilities and telecom		19,033		17,882		1,151			15,383		12,589		2,794
Financial services		56,399		54,668		1,731			65,915		62,352		3,563
Other business – diversified		63,209		66,183		(2,974	)		70,365		69,940		425
Other consumer – diversified		36,655		29,661		6,994			36,792		31,409		5,383
Other investments		5,829		5,829		-			6,473		6,473		-
Investments	$	237,627	$	230,232	$	7,395		$	240,285	$	226,010	$	14,275

The following tables present the Company’s unrealized loss aging for securities by type and length of time the security was in a continuous unrealized loss position as of September 30, 2015 and December 31, 2014.

	September 30, 2015
	Less than 12 months				12 months or longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	9,498	$	242	$	503	$	1	$	10,001	$	243
Obligations of states and political subdivisions		13,237		415		-		-		13,237		415
Corporate securities		69,731		3,496		14,644		3,470		84,375		6,966
Total temporarily impaired securities	$	92,466	$	4,153	$	15,147	$	3,471	$	107,613	$	7,624

	December 31, 2014
	Less than 12 months				12 months or longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	3,695	$	7	$	2,692	$	23	$	6,387	$	30
Corporate securities		43,996		1,604		9,293		1,361		53,289		2,965
Total temporarily impaired securities	$	47,691	$	1,611	$	11,985	$	1,384	$	59,676	$	2,995

The evaluation for an other than temporary impairment is a quantitative and qualitative process, which is subject to risks and uncertainties in the determination of whether declines in the fair value of investments are other than temporary. Potential risks and uncertainties include, among other things, changes in general economic conditions, an issuer’s financial condition or near term recovery prospects and the effects of changes in interest rates. In evaluating a potential impairment, the Company considers, among other factors, management’s intent and ability to hold the securities until price recovery, the nature of the investment and the expectation of prospects for the issuer and its industry, the status of an issuer’s continued satisfaction of its obligations in accordance with their contractual terms, and management’s expectation as to the issuer’s ability and intent to continue to do so, as well as ratings actions that may affect the issuer’s credit status.

During the three month and nine month periods ended September 30, 2014, the Company recorded impairments related to the following investments. There were no impairments recorded during the three month or nine month periods ended September 30, 2015.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Common and non-redeemable preferred stocks	$	-	$	196	$	-	$	196

As of September 30, 2015, securities in an unrealized loss position primarily included certain of the Company’s investments in fixed maturities within the other diversified business, other diversified consumer, utilities and telecom and financial services sectors. Securities in an unrealized loss position reported in the other diversified business sector included gross unrealized losses of $2,582 related to investments in fixed maturities of 11 different issuers, all related to the oil and gas industry. The Company does not currently intend to sell nor does it expect to be required to sell any of the securities in an unrealized loss position. Based upon the Company’s expected continuation of receipt of contractually required principal and interest payments and its intent and ability to retain the securities until price recovery, as well as the Company’s evaluation of other relevant factors, including those described above, the Company has deemed these securities to be temporarily impaired as of September 30, 2015.

The following describes the fair value hierarchy and provides information as to the extent to which the Company uses fair value to measure the value of its financial instruments and information about the inputs used to value those financial instruments. The fair value hierarchy prioritizes the inputs in the valuation techniques used to measure fair value into three broad levels.

Level 1

Observable inputs that reflect quoted prices for identical assets or liabilities in active markets that the Company has the ability to access at the measurement date. The Company’s financial instruments valued using Level 1 criteria include cash equivalents and exchange traded common stocks.

Level 2

Observable inputs, other than quoted prices included in Level 1, for an asset or liability or prices for similar assets or liabilities. The Company’s financial instruments valued using Level 2 criteria include significantly all of its fixed maturities, which consist of U.S. Treasury securities and U.S. Government securities, obligations of states and political subdivisions, and certain corporate fixed maturities, as well as its non-redeemable preferred stocks. In determining fair value measurements using Level 2 criteria, the Company utilizes various external pricing sources.

Level 3

Valuations that are derived from techniques in which one or more of the significant inputs are unobservable (including assumptions about risk). Fair value is based on criteria that use assumptions or other data that are not readily observable from objective sources. The Company’s financial instruments valued using Level 3 criteria consist of a limited number of fixed maturities. As of September 30, 2015 and December 31, 2014, the value of the Company’s fixed maturities valued using Level 3 criteria was $2,241 and $2,214, respectively. The use of different criteria or assumptions regarding data may have yielded materially different valuations.

As of September 30, 2015, financial instruments carried at fair value were measured on a recurring basis as summarized below:

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets:
Fixed maturities	$	-	$	209,569	$	2,241	$	211,810
Equity securities		15,228		4,760		-		19,988
Cash equivalents		13,731		-		-		13,731
Total	$	28,959	$	214,329	$	2,241	$	245,529

As of December 31, 2014, financial instruments carried at fair value were measured on a recurring basis as summarized below:

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets:
Fixed maturities	$	-	$	212,674	$	2,214	$	214,888
Equity securities		13,148		5,776		-		18,924
Cash equivalents		15,009		-		-		15,009
Total	$	28,157	$	218,450	$	2,214	$	248,821

The following is a roll-forward of the Company’s financial instruments measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three month and nine month periods ended September 30, 2015.

	Fixed Maturities
Balance, December 31, 2014	$	2,214
Total unrealized gains included in other comprehensive income		50
Balance, March 31, 2015		2,264
Total unrealized losses included in other comprehensive loss		(57	)
Balance, June 30, 2015		2,207
Total unrealized gains included in other comprehensive loss		34
Balance, September 30, 2015	$	2,241

The Company’s fixed maturities valued using Level 3 inputs consist solely of issuances of pooled debt obligations of multiple, smaller financial services companies. They are not actively traded and valuation techniques used to measure fair value are based on future estimated cash flows (based on current cash flows) discounted at reasonable estimated rates of interest. There are no assumed prepayments and/or default probability assumptions as a majority of these instruments contain certain U.S. government agency strips to support the ultimate repayment of the principal. Other qualitative and quantitative information received from the original underwriter of the pooled offerings is also considered, as applicable.