XML 19 R10.htm IDEA: XBRL DOCUMENT
v3.22.2

Investments | 6 Months Ended
--- | ---
Jun. 30, 2022
Investments [Abstract] |
Investments |
Note 3. | Investments
The following tables set forth the estimated fair value, gross unrealized gains, gross unrealized losses and cost or amortized cost of the Company’s investments in fixed maturities and equity securities, aggregated by type and industry, as of June 30, 2022 and December 31, 2021. Fixed maturities were comprised of the following:
|  | June 30, 2022 |
|  | Estimated Fair Value |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Cost or Amortized Cost |
Fixed maturities: |  |  |  |  |  |  |  |  |  |  |  |
Bonds: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities and obligations of U.S. Government agencies and authorities |  | $ | 45,353 |  |  | $ | — |  |  | $ | 3,968 |  |  | $ | 49,321 |
Obligations of states and political subdivisions |  |  | 9,825 |  |  |  | 179 |  |  |  | 1,244 |  |  |  | 10,890 |
Corporate securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Utilities and telecom |  |  | 24,779 |  |  |  | 496 |  |  |  | 2,500 |  |  |  | 26,783 |
Financial services |  |  | 61,193 |  |  |  | 551 |  |  |  | 5,124 |  |  |  | 65,766 |
Other business – diversified |  |  | 31,375 |  |  |  | 108 |  |  |  | 3,350 |  |  |  | 34,617 |
Other consumer – diversified |  |  | 46,526 |  |  |  | 88 |  |  |  | 4,393 |  |  |  | 50,831 |
Total corporate securities |  |  | 163,873 |  |  |  | 1,243 |  |  |  | 15,367 |  |  |  | 177,997 |
Redeemable preferred stocks: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other consumer – diversified |  |  | 231 |  |  |  | 38 |  |  |  | — |  |  |  | 193 |
Total redeemable preferred stocks |  |  | 231 |  |  |  | 38 |  |  |  | — |  |  |  | 193 |
Total fixed maturities |  | $ | 219,282 |  |  | $ | 1,460 |  |  | $ | 20,579 |  |  | $ | 238,401 |
|  | December 31, 2021 |
|  | Estimated Fair Value |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Cost or Amortized Cost |
Fixed maturities: |  |  |  |  |  |  |  |  |  |  |  |
Bonds: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities and obligations of U.S. Government agencies and authorities |  | $ | 50,298 |  |  | $ | 763 |  |  | $ | 416 |  |  | $ | 49,951 |
Obligations of states and political subdivisions |  |  | 11,644 |  |  |  | 749 |  |  |  | — |  |  |  | 10,895 |
Corporate securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Utilities and telecom |  |  | 29,717 |  |  |  | 2,961 |  |  |  | 44 |  |  |  | 26,800 |
Financial services |  |  | 70,921 |  |  |  | 6,759 |  |  |  | 48 |  |  |  | 64,210 |
Other business – diversified |  |  | 40,216 |  |  |  | 4,631 |  |  |  | 106 |  |  |  | 35,691 |
Other consumer – diversified |  |  | 57,940 |  |  |  | 7,185 |  |  |  | 103 |  |  |  | 50,858 |
Total corporate securities |  |  | 198,794 |  |  |  | 21,536 |  |  |  | 301 |  |  |  | 177,559 |
Redeemable preferred stocks: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other consumer – diversified |  |  | 250 |  |  |  | 58 |  |  |  | — |  |  |  | 192 |
Total redeemable preferred stocks |  |  | 250 |  |  |  | 58 |  |  |  | — |  |  |  | 192 |
Total fixed maturities |  | $ | 260,986 |  |  | $ | 23,106 |  |  | $ | 717 |  |  | $ | 238,597 |
Bonds having an amortized cost of $11,049 and $11,169 and included in the tables above were on deposit with insurance regulatory authorities as of June 30, 2022 and December 31, 2021, respectively, in accordance with statutory requirements. Additionally, bonds having an amortized cost of $7,872 and $5,371 and included in the tables above were pledged as collateral to the Federal Home Loan Bank of Atlanta ("FHLB") at June 30, 2022 and December 31, 2021, respectively. Equity securities were comprised of the following:
|  | June 30, 2022 |  |  |  |
|  | Estimated Fair Value |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Cost |
Equity securities: |  |  |  |  |  |  |  |  |  |  |  |
Common and non-redeemable preferred stocks: |  |  |  |  |  |  |  |  |  |  |  |
Financial services |  | $ | 721 |  |  | $ | 448 |  |  | $ | — |  |  | $ | 273 |
Other business – diversified |  |  | 15,729 |  |  |  | 11,096 |  |  |  | — |  |  |  | 4,633 |
Total equity securities |  | $ | 16,450 |  |  | $ | 11,544 |  |  | $ | — |  |  | $ | 4,906 |
|  | December 31, 2021 |
|  | Estimated Fair Value |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Cost |
Equity securities: |  |  |  |  |  |  |  |  |  |  |  |
Common and non-redeemable preferred stocks: |  |  |  |  |  |  |  |  |  |  |  |
Financial services |  | $ | 799 |  |  | $ | 525 |  |  | $ | — |  |  | $ | 274 |
Other business – diversified |  |  | 18,325 |  |  |  | 13,692 |  |  |  | — |  |  |  | 4,633 |
Total equity securities |  | $ | 19,124 |  |  | $ | 14,217 |  |  | $ | — |  |  | $ | 4,907 |
The carrying value and amortized cost of the Company’s investments in fixed maturities at June 30, 2022 and December 31, 2021 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.
|  | June 30, 2022 |  |  | December 31, 2021 |
|  | Carrying Value |  |  | Amortized Cost |  |  | Carrying Value |  |  | Amortized Cost |
Due in one year or less |  | $ | 4,414 |  |  | $ | 4,402 |  |  | $ | 1,734 |  |  | $ | 1,730 |
Due after one year through five years |  |  | 29,475 |  |  |  | 30,290 |  |  |  | 24,926 |  |  |  | 23,593 |
Due after five years through ten years |  |  | 58,472 |  |  |  | 62,750 |  |  |  | 73,725 |  |  |  | 68,338 |
Due after ten years |  |  | 92,483 |  |  |  | 103,117 |  |  |  | 122,045 |  |  |  | 106,181 |
Asset backed securities |  |  | 34,438 |  |  |  | 37,842 |  |  |  | 38,556 |  |  |  | 38,755 |
Totals |  | $ | 219,282 |  |  | $ | 238,401 |  |  | $ | 260,986 |  |  | $ | 238,597 |
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 June 30, 2022 and December 31, 2021.
|  | June 30, 2022 |
|  | 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 |  | $ | 40,587 |  |  | $ | 3,139 |  |  | $ | 4,570 |  |  | $ | 829 |  |  | $ | 45,157 |  |  | $ | 3,968 |
Obligations of states and political subdivisions |  |  | 6,114 |  |  |  | 1,244 |  |  |  | — |  |  |  | — |  |  |  | 6,114 |  |  |  | 1,244 |
Corporate securities |  |  | 141,293 |  |  |  | 14,203 |  |  |  | 4,559 |  |  |  | 1,164 |  |  |  | 145,852 |  |  |  | 15,367 |
Total temporarily impaired securities |  | $ | 187,994 |  |  | $ | 18,586 |  |  | $ | 9,129 |  |  | $ | 1,993 |  |  | $ | 197,123 |  |  | $ | 20,579 |
|  | December 31, 2021 |
|  | 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 |  | $ | 30,141 |  |  | $ | 416 |  |  | $ | — |  |  | $ | — |  |  | $ | 30,141 |  |  | $ | 416 |
Corporate securities |  |  | 3,326 |  |  |  | 49 |  |  |  | 4,761 |  |  |  | 252 |  |  |  | 8,087 |  |  |  | 301 |
Total temporarily impaired securities |  | $ | 33,467 |  |  | $ | 465 |  |  | $ | 4,761 |  |  | $ | 252 |  |  | $ | 38,228 |  |  | $ | 717 |
The evaluation for an other than temporary impairment (“OTTI”) 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. There were no OTTI charges recorded during the three month and six month periods ended June 30, 2022 and 2021. As of June 30, 2022 and December 31, 2021, there were 227 and 61 securities, respectively, in an unrealized loss position, which primarily included certain of the Company’s investments in fixed maturities within the financial services, other diversified business and other diversified consumer sectors. The increase in the number of securities in an unrealized loss position during the six month period ended June 30, 2022 was primarily attributable to a decline in market values in certain of the Company’s fixed maturity securities as a result of a rising interest rate environment. 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 June 30, 2022. The following tables summarize realized investment gains (losses) for the three month and six month periods ended June 30, 2022 and 2021.
|  | Three Months Ended June 30, 2022 |
|  | Fixed Maturities |  |  | Equity Securities |  |  | Other Invested Assets |  |  | Total |
Gains |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Losses |  |  | (43 | ) |  |  | — |  |  |  | (19 | ) |  |  | (62 | )
Realized investment losses, net |  | $ | (43 | ) |  | $ | — |  |  | $ | (19 | ) |  | $ | (62 | )
|  | Three Months Ended June 30, 2021 |
|  | Fixed Maturities |  |  | Equity Securities |  |  | Other Invested Assets |  |  | Total |
Gains |  | $ | 50 |  |  | $ | — |  |  | $ | — |  |  | $ | 50 |
Losses |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Realized investment gains, net |  | $ | 50 |  |  | $ | — |  |  | $ | — |  |  | $ | 50 |
|  | Six Months Ended June 30, 2022 |
|  | Fixed Maturities |  |  | Equity Securities |  |  | Other Invested Assets |  |  | Total |
Gains |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Losses |  |  | (53 | ) |  |  | — |  |  |  | (19 | ) |  |  | (72 | )
Realized investment losses, net |  | $ | (53 | ) |  | $ | — |  |  | $ | (19 | ) |  | $ | (72 | )
|  | Six Months Ended June 30, 2021 |
|  | Fixed Maturities |  |  | Equity Securities |  |  | Other Invested Assets |  |  | Total |
Gains |  | $ | 171 |  |  | $ | — |  |  | $ | — |  |  | $ | 171 |
Losses |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Realized investment gains, net |  | $ | 171 |  |  | $ | — |  |  | $ | — |  |  | $ | 171 |
The following table presents the portion of unrealized gains (losses) related to equity securities still held for the three month and six month periods ended June 30, 2022 and 2021.
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |
Net realized and unrealized gains (losses) recognized during the period on equity securities |  | $ | (4,866 | ) |  | $ | 4,003 |  |  | $ | (2,673 | ) |  | $ | 4,747 |
Less: Net realized gains (losses) recognized during the period on equity securities sold during the period |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Unrealized gains (losses) recognized during the reporting period on equity securities, net |  | $ | (4,866 | ) |  | $ | 4,003 |  |  | $ | (2,673 | ) |  | $ | 4,747 |
Variable Interest Entities The Company holds passive interests in a number of entities that are considered to be variable interest entities (“VIEs”) under GAAP guidance. The Company’s VIE interests principally consist of interests in limited liability companies formed for the purpose of achieving diversified equity returns. The Company’s VIE interests, carried as a part of other invested assets, totaled $5,128 and $198 as of June 30, 2022 and December 31, 2021, respectively. The Company’s VIE interests, carried as a part of investment in unconsolidated trusts, totaled $1,238 as of June 30, 2022 and December 31, 2021. The Company does not have power over the activities that most significantly impact the economic performance of these VIEs and thus is not the primary beneficiary. Therefore, the Company has not consolidated these VIEs. The Company’s involvement with each VIE is limited to its direct ownership interest in the VIE. The Company has no arrangements with any of the VIEs to provide other financial support to or on behalf of the VIE. The Company’s maximum loss exposure relative to these investments was limited to the carrying value of the Company’s investment in the VIEs, which amount to $6,366 and $1,436, as of June 30, 2022 and December 31, 2021, respectively. As of June 30, 2022 and December 31, 2021, the Company had outstanding commitments totaling $5,872 and $1,997, respectively, whereby the Company is committed to fund these investments and may be called by the partnership during the commitment period to fund the purchase of new investments and partnership expenses.

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI https://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2176304 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration