What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2020-11-09 compared with 2020-08-07 · 130 added, 118 removed, 759 unchanged (25% of the section changed)

2 unchanged sentences

Consolidated Balance Sheets

As of June 30, 2020 and December 31, 2019

As of September 30, 2020 and December 31, 2019

(in thousands)

September 30,

2020 December 31,

1 unchanged sentence

Fixed maturity securities, available-for-sale, at fair value (amortized cost:

June 30, 2020:

September 30, 2020:

December 31, 2019:

1 unchanged sentence

Equity securities, at fair value (cost:

June 30, 2020:

September 30, 2020:

December 31, 2019:

29 unchanged sentences

Common stock – no par value ( 10,000 authorized shares;

1,892 and 1,889 shares issued and outstanding as of June 30, 2020 and December 31, 2019, respectively, excluding in each period 292 shares of common stock held by the Company)

1,892 and 1,889 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively, excluding in each period 292 shares of common stock held by the Company)

Retained earnings

8 unchanged sentences

Consolidated Statements of Operations

For the Three and Six Months Ended June 30, 2020 and 2019

For the Three and Nine Months Ended September 30, 2020 and 2019

(in thousands, except per share amounts)

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2020 2019 2020 2019

4 unchanged sentences

Other investment income 1,270 708 2,236 2,044

Net realized investment gains (losses) 553 ( 14 ) 141 776

Net realized investment gains 186 423 327 1,199

Changes in the estimated fair value of equity security investments 3,619 406 ( 2,867 ) 6,218

18 unchanged sentences

Consolidated Statements of Comprehensive Income

For the Three and Six Months Ended June 30, 2020 and 2019

For the Three and Nine Months Ended September 30, 2020 and 2019

(in thousands)

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2020 2019 2020 2019

20 unchanged sentences

Consolidated Statements of Stockholders’ Equity

For the Three and Six Months Ended June 30, 2020 and 2019

For the Three and Nine Months Ended September 30, 2020 and 2019

(in thousands, except per share amounts)

3 unchanged sentences

Shares Amount

Balance, March 31, 2019

Balance, June 30, 2019

1,889 $ — $ 185,441 $ 2,854 $ 188,295

4 unchanged sentences

Net unrealized gain on investments 341 341

Balance, June 30, 2019

Balance, September 30, 2019

1,889 $ — $ 192,695 $ 3,195 $ 195,890

Balance, March 31, 2020

Balance, June 30, 2020

1,892 $ — $ 194,235 $ 4,230 $ 198,465

5 unchanged sentences

Net unrealized gain on investments 50 50

Balance, June 30, 2020

Other ( 94 ) ( 94 )

Balance, September 30, 2020

1,892 $ — $ 208,647 $ 4,280 $ 212,927

13 unchanged sentences

Net unrealized gain on investments 2,246 2,246

Balance, June 30, 2019

Balance, September 30, 2019

1,889 $ — $ 192,695 $ 3,195 $ 195,890

1 unchanged sentence

1,889 $ — $ 188,262 $ 3,100 $ 191,362

22,785 22,785

Dividends paid ($ 1.32 per share)

6 unchanged sentences

Net unrealized gain on investments 1,212 1,212

Balance, June 30, 2020

Other ( 94 ) ( 94 )

Balance, September 30, 2020

1,892 $ — $ 208,647 $ 4,280 $ 212,927

2 unchanged sentences

Consolidated Statements of Cash Flows

For the Six Months Ended June 30, 2020 and 2019

For the Nine Months Ended September 30, 2020 and 2019

(in thousands)

Six Months Ended

Nine Months Ended

September 30,

Operating Activities

12 unchanged sentences

Changes in assets and liabilities:

(Increase) decrease in premium and fees receivables ( 2,735 ) 297

Increase in premium and fees receivables ( 4,768 ) ( 502 )

(Increase) decrease in other assets ( 3,893 ) 360

Decrease (increase) in operating lease right-of-use assets 577 ( 4,619 )

Increase in current income taxes receivable — ( 613 )

Increase (decrease) in accounts payable and accrued liabilities 3,206 ( 205 )

4 unchanged sentences

Investing Activities

Purchases of fixed maturities ( 517 ) ( 1,235 )

Purchases of equity securities ( 9,270 ) ( 3,921 )

18 unchanged sentences

Consolidated Statements of Cash Flows, continued

Six Months Ended

Nine Months Ended

September 30,

Supplemental Disclosures:

2 unchanged sentences

Non-Cash Investing and Financing Activities:

Non-cash net unrealized gain on investments, net of deferred tax provision of $( 322 ) and $( 511 ) for June 30, 2020 and 2019, respectively

Non-cash net unrealized gain on investments, net of deferred tax provision of $( 333 ) and $( 601 ) for September 30, 2020 and 2019, respectively

$ ( 1,212 ) $ ( 2,246 )

Adjustments to postretirement benefits obligation, net of deferred tax benefit of $ 9 and $ 0 for June 30, 2020 and 2019, respectively

Refer to notes to the Consolidated Financial Statements.c

Adjustments to postretirement benefits obligation, net of deferred tax benefit of $ 9 and $ 0 for September 30, 2020 and 2019, respectively

Adjustments to operating lease right-of-use assets for September 30, 2020 and 2019, respectively $ 94 $ —

Refer to notes to the Consolidated Financial Statements.

INVESTORS TITLE COMPANY

1 unchanged sentence

Notes to Consolidated Financial Statements

June 30, 2020

September 30, 2020

Note 1 – Basis of Presentation and Significant Accounting Policies

5 unchanged sentences

All such adjustments are of a normal recurring nature.

Operating results for the three- and six-month periods ended June 30, 2020 are not necessarily indicative of the financial condition and results that may be expected for the year ending December 31, 2020 or any other interim period.

Operating results for the three- and nine-month periods ended September 30, 2020 are not necessarily indicative of the financial condition and results that may be expected for the year ending December 31, 2020 or any other interim period.

Use of Estimates and Assumptions – The preparation of the Company’s Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities, at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period.

41 unchanged sentences

Note 2 – Reserve for Claims

Activity in the reserve for claims for the six-month period ended June 30, 2020 and the year ended December 31, 2019 are summarized as follows:

(in thousands) June 30, 2020 December 31, 2019

Activity in the reserve for claims for the nine-month period ended September 30, 2020 and the year ended December 31, 2019 are summarized as follows:

(in thousands) September 30, 2020 December 31, 2019

Balance, beginning of period $ 31,333 $ 31,729

3 unchanged sentences

$ 33,532 $ 31,333

The total reserve for all reported and unreported losses the Company incurred through June 30, 2020 is represented by the reserve for claims on the Consolidated Balance Sheets.

The total reserve for all reported and unreported losses the Company incurred through September 30, 2020 is represented by the reserve for claims on the Consolidated Balance Sheets.

The Company's reserves for unpaid losses and loss adjustment expenses are established using estimated amounts required to settle claims for which notice has been received (reported) and the amount estimated to be required to satisfy claims that have been incurred but not yet reported (“IBNR”).

Despite the variability of such estimates, management believes that the total reserve for claims is adequate to cover claim losses which might result from pending and future claims under title insurance policies issued through June 30, 2020.

Management continually reviews and adjusts its reserve for claims estimates to reflect its loss experience and any new information that becomes available.

1 unchanged sentence

A summary of the Company’s reserve for claims, broken down into its components of known title claims and IBNR, follows:

(in thousands, except percentages) June 30, 2020 % December 31, 2019 %

(in thousands, except percentages) September 30, 2020 % December 31, 2019 %

Known title claims $ 3,993 11.9 $ 3,799 12.1

10 unchanged sentences

Under the treasury stock method, as share-based awards are exercised, (a) the exercise price of a share-based award and (b) the amount of compensation cost, if any, for future services that the Company has not yet recognized, are assumed to be used to repurchase shares in the current period.

The following table sets forth the computation of basic and diluted earnings per share for the three- and six-month periods ended June 30:

The following table sets forth the computation of basic and diluted earnings per share for the three- and nine-month periods ended September 30:

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

(in thousands, except per share amounts)

7 unchanged sentences

Diluted earnings per common share $ 8.07 $ 4.20 $ 12.02 $ 10.59

There were 20 thousand and 9 thousand potential shares excluded from the computation of diluted earnings per share for the three-month periods ended June 30, 2020 and 2019, respectively, due to the out-of-the-money status of the related share-based awards.

There were 15 thousand and 9 thousand potential shares excluded from the computation of diluted earnings per share for the six-month periods ended June 30, 2020 and 2019, respectively.

There were 20 thousand and 14 thousand potential shares excluded from the computation of diluted earnings per share for the three-month periods ended September 30, 2020 and 2019, respectively, due to the out-of-the-money status of the related share-based awards.

There were 20 thousand and 14 thousand potential shares excluded from the computation of diluted earnings per share for the nine-month periods ended September 30, 2020 and 2019, respectively.

The Company historically has adopted employee stock award plans under which restricted stock, options or stock appreciation rights ("SARs") exercisable for the Company's stock may be granted to key employees or directors of the Company.

1 unchanged sentence

The awards eligible to be granted under the active plan are limited to SARs, and the maximum aggregate number of shares of common stock of the Company available pursuant to the plan for the grant of SARs is 250 thousand shares.

As of June 30, 2020, the only outstanding awards under the plans were SARs, which expire within seven years or less from the date of grant.

As of September 30, 2020, the only outstanding awards under the plans were SARs, which expire within seven years or less from the date of grant.

Most outstanding SARs vest and are exercisable within one year of the date of grant, with the exception of one grant where the SARs vest over five years .

1 unchanged sentence

There have been no stock options or SARs granted where the exercise price was less than the market price on the date of grant.

There was approximately $ 154 thousand and $ 147 thousand of compensation expense relating to SARs vesting on or before June 30, 2020 and 2019, respectively, included in personnel expenses in the Consolidated Statements of Operations.

As of June 30, 2020, there was $ 283 thousand of unrecognized compensation expense related to unvested share-based compensation arrangements granted under the Company’s stock award plans.

There was approximately $ 192 thousand and $ 205 thousand of compensation expense relating to SARs vesting on or before September 30, 2020 and 2019, respectively, included in personnel expenses in the Consolidated Statements of Operations.

As of September 30, 2020, there was $ 246 thousand of unrecognized compensation expense related to unvested share-based compensation arrangements granted under the Company’s stock award plans.

A summary of share-based award transactions for all share-based award plans follows:

9 unchanged sentences

SARs exercised ( 8 ) 75.75

Outstanding as of June 30, 2020 33 $ 138.55 4.66 $ 385

Exercisable as of June 30, 2020 25 $ 140.79 3.96 $ 385

Unvested as of June 30, 2020 8 $ 131.81 6.78 $ —

Outstanding as of September 30, 2020 33 $ 138.55 4.41 $ 496

Exercisable as of September 30, 2020 26 $ 140.02 3.83 $ 480

Unvested as of September 30, 2020 7 $ 133.21 6.52 $ 16

During the second quarters of both 2020 and 2019, the Company issued 4 thousand share-settled SARs to directors of the Company.

18 unchanged sentences

Title insurance policies insure titles to real estate.

Provided below is selected financial information about the Company's operations by segment for the periods ended June 30, 2020 and 2019:

Three Months Ended June 30, 2020 (in thousands)

Provided below is selected financial information about the Company's operations by segment for the periods ended September 30, 2020 and 2019:

Three Months Ended

September 30, 2020 (in thousands)

Insurance All

3 unchanged sentences

Investment income 5,627 322 — 5,949

Net realized gain on investments 527 26 — 553

Net realized (loss) gain on investments ( 263 ) 449 — 186

Total revenues

4 unchanged sentences

$ 213,152 $ 76,593 $ — $ 289,745

Three Months Ended June 30, 2019 (in thousands)

Three Months Ended

September 30, 2019 (in thousands)

Insurance All

3 unchanged sentences

Investment income 1,879 391 — 2,270

Net realized loss on investments ( 8 ) ( 6 ) — ( 14 )

Net realized gain on investments 346 77 — 423

Total revenues

4 unchanged sentences

$ 191,436 $ 74,678 $ — $ 266,114

Six Months Ended June 30, 2020 (in thousands) Title Insurance All Other Intersegment Eliminations Total

Nine Months Ended

September 30, 2020 (in thousands) Title Insurance All Other Intersegment Eliminations Total

Insurance and other services revenues $ 154,820 $ 7,149 $ ( 5,725 ) $ 156,244

Investment loss ( 3,102 ) ( 136 ) — ( 3,238 )

Net realized gain (loss) on investments 590 ( 449 ) — 141

Investment income 2,525 186 — 2,711

Net realized gain on investments 327 — — 327

Total revenues

1 unchanged sentence

Operating expenses 129,777 6,543 ( 5,288 ) 131,032

Income (loss) before income taxes

$ 9,982 $ ( 297 ) $ ( 292 ) $ 9,393

Income before income taxes $ 27,895 $ 792 $ ( 437 ) $ 28,250

$ 213,152 $ 76,593 $ — $ 289,745

Six Months Ended June 30, 2019 (in thousands) Title Insurance All Other Intersegment Eliminations Total

Nine Months Ended

September 30, 2019 (in thousands) Title Insurance All Other Intersegment Eliminations Total

Insurance and other services revenues $ 113,999 $ 8,373 $ ( 4,820 ) $ 117,552

8 unchanged sentences

Note 5 – Retirement Agreements and Other Postretirement Benefits

The Company’s subsidiary, Investors Title Insurance Company ("ITIC"), is a party to employment agreements with key executives that provide for the continuation of certain employee benefits and other payments due under the agreements upon retirement, estimated to total $ 12.4 million and $ 12.2 million as of June 30, 2020 and December 31, 2019, respectively.

The executive employee benefits include health, dental, vision and life insurance and are unfunded.

These amounts are classified as accounts payable and accrued liabilities in the Consolidated Balance Sheets.

The following sets forth the net periodic benefit cost for the executive benefits for the periods ended June 30, 2020 and 2019:

The following sets forth the net periodic benefit cost for the executive benefits for the periods ended September 30, 2020 and 2019:

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

(in thousands) 2020 2019 2020 2019

7 unchanged sentences

The estimated fair value, gross unrealized holding gains, gross unrealized holding losses and amortized cost for fixed maturity securities by major classification are as follows:

As of June 30, 2020 (in thousands) Amortized

As of September 30, 2020 (in thousands) Amortized

Losses Estimated Fair

24 unchanged sentences

The special revenue category for both periods presented includes approximately 50 individual fixed maturity securities with revenue sources from a variety of industry sectors.

The scheduled maturities of fixed maturity securities at June 30, 2020 are as follows:

The scheduled maturities of fixed maturity securities at September 30, 2020 are as follows:

Available-for-Sale

7 unchanged sentences

Expected maturities will differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without penalties.

The following table presents the gross unrealized losses on fixed maturity securities and the estimated fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous loss position at June 30, 2020 and December 31, 2019:

Less than 12 Months 12 Months or Longer Total

As of June 30, 2020 (in thousands) Estimated

As of September 30, 2020 (in thousands) Estimated

Value Unrealized

29 unchanged sentences

Factors considered in determining whether a loss is temporary include the length of time and extent to which fair value has been below cost, the financial condition and prospects of the issuer (including credit ratings and analyst reports) and macro-economic changes.

A total of 1 and 6 fixed maturity securities had unrealized losses without an allowance for credit losses at June 30, 2020 and December 31, 2019, respectively.

A total of 1 and 6 fixed maturity securities had unrealized losses without an allowance for credit losses at September 30, 2020 and December 31, 2019, respectively.

The Company does not have the intent to sell any of these securities and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost.

2 unchanged sentences

Reviews of the values of fixed maturity securities are inherently uncertain and the value of the investment may not fully recover, or may decline in future periods, resulting in a realized loss.

The Company recorded $ 482 thousand and $ 0 of other-than-temporary impairment charges related to fixed maturity securities for the six-month periods ended June 30, 2020 and 2019, respectively.

Expenses related to other-than-temporary impairments are recorded in net realized investment gains (losses) in the Consolidated Statements of Operations when recognized.

The Company recorded $ 482 thousand and $ 0 of other-than-temporary impairment charges related to fixed maturity securities for the nine-month periods ended September 30, 2020 and 2019, respectively.

Expenses related to other-than-temporary impairments are recorded in net realized investment gains in the Consolidated Statements of Operations when recognized.

Investments in Equity Securities

The cost and estimated fair value of equity securities are as follows:

As of June 30, 2020 (in thousands)

As of September 30, 2020 (in thousands)

Cost Estimated Fair

8 unchanged sentences

Unrealized holding gains and losses are reported in the Consolidated Statements of Operations as changes in the estimated fair value of equity security investments.

Net Realized Investment Gains (Losses)

Gross realized gains and losses on sales of investments for the six-month periods ended June 30 are summarized as follows:

Net Realized Investment Gains

Gross realized gains and losses on sales of investments for the nine-month period ended September 30 are summarized as follows:

(in thousands) 2020 2019

9 unchanged sentences

Net realized gains from securities

Net realized gains (losses) on other investments:

$ 300 $ 1,197

Gross realized gains (losses) on other investments:

Gains on other investments

1 unchanged sentence

Net realized investment gains

$ 327 $ 1,199

Realized gains and losses are determined on the specific identification method.

3 unchanged sentences

this power resides with a third-party general partner or managing member that cannot be removed except for cause.

The following table sets forth details about the Company's variable interest investments in VIEs, which are structured either as limited partnerships ("LPs") or limited liability companies ("LLCs"), as of June 30, 2020:

(in thousands) Balance Sheet Classification Carrying Value Estimated Fair Value Maximum Potential Loss (a)

21 unchanged sentences

Generally, quotes obtained from the pricing service for instruments classified as Level 2 are not adjusted and are not binding.

As of June 30, 2020 and December 31, 2019, the Company did not adjust any Level 2 fair values.

As of September 30, 2020 and December 31, 2019, the Company did not adjust any Level 2 fair values.

A number of the Company’s investment grade corporate debt securities are frequently traded in active markets, and trading prices are consequently available for these securities.

12 unchanged sentences

The carrying amount for accrued interest and dividends is a reasonable estimate of fair value due to the short-term maturity of these assets.

The following table presents, by level, fixed maturity securities carried at estimated fair value as of June 30, 2020 and December 31, 2019:

As of June 30, 2020 (in thousands) Level 1 Level 2 Level 3 Total

The following table presents, by level, fixed maturity securities carried at estimated fair value as of September 30, 2020 and December 31, 2019:

As of September 30, 2020 (in thousands) Level 1 Level 2 * Level 3 Total

Fixed maturity securities:

1 unchanged sentence

states, territories and political subdivisions $ 24,212 $ 69,214 $ — $ 93,426

$ 24,324 $ 72,834 $ — $ 97,158

Corporate debt securities — 5,002 — 5,002

$ 24,212 $ 74,216 $ — $ 98,428

$ 24,324 $ 77,791 $ — $ 102,115

As of December 31, 2019 (in thousands) Level 1 Level 2 * Level 3 Total

2 unchanged sentences

states, territories and political subdivisions $ 24,160 $ 74,431 $ — $ 98,591

$ 24,160 $ 74,431 $ — $ 98,591

Corporate debt securities — 6,047 — 6,047

$ 24,160 $ 80,478 $ — $ 104,638

*Denotes fair market value obtained from pricing services.

The following table presents, by level, estimated fair values of equity investments and other financial instruments as of June 30, 2020 and December 31, 2019:

As of June 30, 2020 (in thousands) Level 1 Level 2 Level 3 Total

The following table presents, by level, estimated fair values of equity investments and other financial instruments as of September 30, 2020 and December 31, 2019:

As of September 30, 2020 (in thousands) Level 1 Level 2 Level 3 Total

Financial assets:

7 unchanged sentences

Short-term investments:

Money market funds and certificates of deposit 24,723 — — 24,723

Money market funds, Treasury bills and certificates of deposit 22,516 — — 22,516

Other investments:

21 unchanged sentences

$ 101,224 $ — $ 13,982 $ 115,206

The Company did not hold any Level 3 category debt or marketable equity investment securities as of June 30, 2020 or December 31, 2019.

The Company did not hold any Level 3 category debt or marketable equity investment securities as of September 30, 2020 or December 31, 2019.

There were no transfers into or out of Levels 1, 2 or 3 during the periods presented.

14 unchanged sentences

If any such investment is determined to be other-than-temporarily impaired, an impairment charge is recorded against such investment and reflected in the Consolidated Statements of Operations.

There were no impairments of such investments made during the six-month period ended June 30, 2020 or the twelve-month period ended December 31, 2019.

The following table presents a rollforward of equity investments under the measurement alternative as of June 30, 2020 and December 31, 2019:

There were no impairments of such investments made during the nine-month period ended September 30, 2020 or the twelve-month period ended December 31, 2019.

The following table presents a rollforward of equity investments under the measurement alternative as of September 30, 2020 and December 31, 2019:

(in thousands) Balance,

2 unchanged sentences

Paid Sales, Returns of Capital and Other Reductions Balance,

June 30, 2020

September 30, 2020

Other investments:

21 unchanged sentences

Another Company subsidiary, Investors Title Accommodation Corporation (“ITAC”), serves as exchange accommodation titleholder and, through limited liability companies that are wholly owned subsidiaries of ITAC, holds property for exchangers in reverse exchange transactions.

Like-kind exchange deposits and reverse exchange property totaled approximately $ 171.4 million and $ 214.6 million as of June 30, 2020 and December 31, 2019, respectively.

Like-kind exchange deposits and reverse exchange property totaled approximately $ 179.5 million and $ 214.6 million as of September 30, 2020 and December 31, 2019, respectively.

These amounts are not considered assets of the Company and, therefore, are excluded from the accompanying Consolidated Balance Sheets;

20 unchanged sentences

(in thousands) As of

June 30, 2020 As of

September 30, 2020 As of

December 31, 2019

4 unchanged sentences

(in thousands) Three Months Ended

Six Months Ended

September 30,

Nine Months Ended

September 30,

2020 2019 2020 2019

5 unchanged sentences

The estimated fair values of intangible assets recognized as the result of title insurance agency acquisitions, all Level 3 inputs, are principally based on values obtained from an independent third-party valuation service.

In accordance with ASC 350, Intangibles – Goodwill and Other , management determined that no events or changes in circumstances occurred during the six-month periods ended June 30, 2020 and 2019 that would indicate the carrying amounts may not be recoverable, and therefore determined that no identifiable intangible assets were impaired.

In accordance with ASC 350, Intangibles – Goodwill and Other , management determined that no events or changes in circumstances occurred during the nine-month periods ended September 30, 2020 and 2019 that would indicate the carrying amounts may not be recoverable, and therefore determined that no identifiable intangible assets were impaired.

Identifiable intangible assets consist of the following:

(in thousands) As of

June 30, 2020 As of

September 30, 2020 As of

December 31, 2019

9 unchanged sentences

Goodwill and Title Plant

As of June 30, 2020, the Company recognized $ 4.4 million in goodwill and $ 690 thousand in a title plant, net of impairments, as the result of title insurance agency acquisitions.

As of September 30, 2020, the Company recognized $ 4.4 million in goodwill and $ 690 thousand in a title plant, net of impairments, as the result of title insurance agency acquisitions.

The title plant is included with other assets in the Consolidated Balance Sheets.

The fair values of goodwill and the title plant, both Level 3 inputs, are principally based on values obtained from an independent third-party valuation service as of the date of acquisition.

The fair values of goodwill and the title plant as of the date of acquisition, both Level 3 inputs, were principally based on values obtained from an independent third-party valuation service.

Note 10 – Accumulated Other Comprehensive Income

The following tables provide changes in the balances of each component of accumulated other comprehensive income, net of tax, for the periods ended June 30, 2020 and 2019:

The following tables provide changes in the balances of each component of accumulated other comprehensive income, net of tax, for the periods ended September 30, 2020 and 2019:

Three Months Ended

June 30, 2020 (in thousands) Unrealized Gains and Losses

September 30, 2020 (in thousands) Unrealized Gains and Losses

On Available-for-Sale

1 unchanged sentence

Benefits Plans

Beginning balance at March 31

Beginning balance at June 30

$ 4,294 $ ( 64 ) $ 4,230

Other comprehensive income before reclassifications

1,118 — 1,118

Amounts reclassified from accumulated other comprehensive income

Net current-period other comprehensive income

1,118 — 1,118

Ending balance

1 unchanged sentence

Three Months Ended

June 30, 2019 (in thousands) Unrealized Gains and Losses

September 30, 2019 (in thousands) Unrealized Gains and Losses

On Available-for-Sale

1 unchanged sentence

Benefits Plans

Beginning balance at March 31

Beginning balance at June 30

$ 2,886 $ ( 32 ) $ 2,854

3 unchanged sentences

Ending balance $ 3,227 $ ( 32 ) $ 3,195

Six Months Ended June 30, 2020 (in thousands) Unrealized Gains and Losses

Nine Months Ended

September 30, 2020 (in thousands) Unrealized Gains and Losses

On Available-for-Sale

3 unchanged sentences

Other comprehensive income (loss) before reclassifications 864 ( 32 ) 832

814 ( 32 ) 782

Amounts reclassified from accumulated other comprehensive income

Net current-period other comprehensive income (loss) 1,212 ( 32 ) 1,180

1,162 ( 32 ) 1,130

Ending balance $ 4,344 $ ( 64 ) $ 4,280

Six Months Ended June 30, 2019 (in thousands) Unrealized Gains and Losses

Nine Months Ended

September 30, 2019 (in thousands) Unrealized Gains and Losses

On Available-for-Sale

9 unchanged sentences

$ 3,227 $ ( 32 ) $ 3,195

The following table provides significant amounts reclassified out of each component of accumulated other comprehensive income for the three- and six-month periods ended June 30, 2020:

The following table provides significant amounts reclassified out of each component of accumulated other comprehensive income for the three- and nine-month periods ended September 30, 2020:

Three Months Ended

June 30, 2020 (in thousands)

September 30, 2020 (in thousands)

Details about Accumulated Other

6 unchanged sentences

Other-than-temporary impairments —

Total $ — Net realized investment gains (losses)

Total $ — Net realized investment gains

Tax — Provision for income taxes

1 unchanged sentence

Reclassifications for the period $ —

Six Months Ended

June 30, 2020 (in thousands)

Details about Accumulated Other Comprehensive Income Components (in thousands) Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Consolidated Statements of Operations

Nine Months Ended

September 30, 2020 (in thousands)

Details about Accumulated Other

Comprehensive Income Components (in thousands) Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Consolidated Statements of Operations

Unrealized gains (losses) on available-for-sale securities:

1 unchanged sentence

Other-than-temporary impairments ( 482 )

Total $ ( 452 ) Net realized investment gains (losses)

Total $ ( 452 ) Net realized investment gains

Tax 104 Provision for income taxes

1 unchanged sentence

Reclassifications for the period $ ( 348 )

There were no amounts reclassified out of each component of accumulated other comprehensive income for either the three- or six-month periods ended June 30, 2019.

There were no amounts reclassified out of each component of accumulated other comprehensive income for either the three- or nine-month periods ended September 30, 20 19.

Note 11 – Revenue from Contracts with Customers

11 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

(in thousands) 2020 2019 2020 2019

5 unchanged sentences

Net premiums written 57,205 40,169 143,311 103,942

Investment-related revenue (loss)

10,156 3,247 ( 3,097 ) 10,373

Investment-related revenue 6,135 2,693 3,038 13,066

Other 185 145 443 550

13 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

(in thousands) 2020 2019 2020 2019

2 unchanged sentences

Lease expense $ 371 $ 342 $ 1,078 $ 1,047

$ 357 $ 357 $ 707 $ 705

Sub-lease income — — — —

$ 357 $ 357 $ 707 $ 705

Lease cost $ 371 $ 342 $ 1,078 $ 1,047

(b) Leases with an initial term of twelve months or less are not recorded on the Consolidated Balance Sheets.

1 unchanged sentence

(in thousands) As of

June 30, 2020 As of

September 30, 2020 As of

December 31, 2019

Operating lease liabilities $ 1,097 $ 1,048

$ 1,092 $ 1,048

Operating lease liabilities 2,840 3,454

Total operating lease liabilities $ 3,937 $ 4,502

The future minimum lease payments under operating leases that have initial or remaining noncancelable lease terms in excess of one year as of June 30, 2020, are summarized as follows:

The future minimum lease payments under operating leases that have initial or remaining noncancelable lease terms in excess of one year as of September 30, 2020, are summarized as follows:

Year Ended (in thousands)

4 unchanged sentences

Supplemental lease information is as follows:

June 30, 2020 As of

September 30, 2020 As of

December 31, 2019

3 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements