Company Quick10K Filing
Stewart Information Services
Price38.50 EPS4
Shares24 P/E9
MCap916 P/FCF9
Net Debt-321 EBIT128
TEV595 TEV/EBIT5
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-09-30 Filed 2020-11-04
10-Q 2020-06-30 Filed 2020-08-03
10-Q 2020-03-31 Filed 2020-05-04
10-K 2019-12-31 Filed 2020-02-27
10-Q 2019-09-30 Filed 2019-11-07
10-Q 2019-06-30 Filed 2019-08-07
10-Q 2019-03-31 Filed 2019-05-01
10-K 2018-12-31 Filed 2019-02-28
10-Q 2018-09-30 Filed 2018-11-08
10-Q 2018-06-30 Filed 2018-08-06
10-Q 2018-03-31 Filed 2018-05-03
10-K 2017-12-31 Filed 2018-02-28
10-Q 2017-09-30 Filed 2017-11-07
10-Q 2017-06-30 Filed 2017-07-28
10-Q 2017-03-31 Filed 2017-04-28
10-K 2016-12-31 Filed 2017-02-27
10-Q 2016-09-30 Filed 2016-11-01
10-Q 2016-06-30 Filed 2016-07-29
10-Q 2016-03-31 Filed 2016-04-29
10-K 2015-12-31 Filed 2016-02-26
10-Q 2015-09-30 Filed 2015-11-03
10-Q 2015-06-30 Filed 2015-07-31
10-Q 2015-03-31 Filed 2015-05-04
10-K 2014-12-31 Filed 2015-02-27
10-Q 2014-09-30 Filed 2014-10-31
10-Q 2014-06-30 Filed 2014-08-01
10-Q 2014-03-31 Filed 2014-05-01
10-K 2013-12-31 Filed 2014-02-28
10-Q 2013-09-30 Filed 2013-11-06
10-Q 2013-06-30 Filed 2013-08-02
10-Q 2013-03-31 Filed 2013-05-03
10-K 2012-12-31 Filed 2013-03-06
10-Q 2012-09-30 Filed 2012-11-02
10-Q 2012-06-30 Filed 2012-08-03
10-Q 2012-03-31 Filed 2012-05-03
10-K 2011-12-31 Filed 2012-03-12
10-Q 2011-09-30 Filed 2011-11-02
10-Q 2011-06-30 Filed 2011-08-03
10-Q 2011-03-31 Filed 2011-05-04
10-K 2010-12-31 Filed 2011-03-03
10-Q 2010-09-30 Filed 2010-11-03
10-Q 2010-06-30 Filed 2010-08-03
10-Q 2010-03-31 Filed 2010-05-05
10-K 2009-12-31 Filed 2010-03-05
8-K 2020-10-21
8-K 2020-09-01
8-K 2020-08-31
8-K 2020-08-12
8-K 2020-07-22
8-K 2020-06-04
8-K 2020-06-01
8-K 2020-05-07
8-K 2020-04-22
8-K 2020-02-07
8-K 2020-02-05
8-K 2020-01-15
8-K 2019-12-12
8-K 2019-12-09
8-K 2019-10-22
8-K 2019-10-01
8-K 2019-09-20
8-K 2019-09-09
8-K 2019-09-08
8-K 2019-09-06
8-K 2019-07-25
8-K 2019-06-19
8-K 2019-06-10
8-K 2019-04-25
8-K 2019-03-11
8-K 2019-02-14
8-K 2019-01-31
8-K 2019-01-31
8-K 2018-12-31
8-K 2018-12-31
8-K 2018-11-09
8-K 2018-11-02
8-K 2018-10-25
8-K 2018-09-05
8-K 2018-08-24
8-K 2018-08-22
8-K 2018-07-18
8-K 2018-06-18
8-K 2018-05-31
8-K 2018-05-22
8-K 2018-05-03
8-K 2018-03-18
8-K 2018-02-22
8-K 2018-02-08
8-K 2017-12-29

STC 10Q Quarterly Report

Part I - Financial Information
Item 1. Financial Statements
Note 1
Note 2
Note 3
Note 4
Note 5
Note 6
Note 7
Note 8
Note 9
Note 10
Note 11
Note 12
Note 13
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 5. Other Information
Item 6. Exhibits
EX-10.1 etinvestmentsllcassetpur.htm
EX-31.1 q3-2020ex311.htm
EX-31.2 q3-2020ex312.htm
EX-32.1 q3-2020ex321.htm
EX-32.2 q3-2020ex322.htm

Stewart Information Services Earnings 2020-09-30

Balance SheetIncome StatementCash Flow
1.61.31.00.60.30.02012201420172020
Assets, Equity
0.60.50.30.20.0-0.12012201420172020
Rev, G Profit, Net Income
0.20.10.10.0-0.0-0.12012201420172020
Ops, Inv, Fin

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
FORM 10-Q
(Mark One)

    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2020
or
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     
Commission file number 001-02658
 STEWART INFORMATION SERVICES CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
 
74-1677330
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification No.)
1360 Post Oak Blvd.,
Suite 100
 
Houston,
Texas
77056
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (713625-8100
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $1 par value per share
STC
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    
Yes   No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes     No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Non-accelerated filer
Emerging growth company
Accelerated filerSmaller reporting company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes   No
On October 29, 2020, there were 26,719,342 outstanding shares of the issuer's Common Stock.



FORM 10-Q QUARTERLY REPORT
QUARTER ENDED SEPTEMBER 30, 2020
TABLE OF CONTENTS
 
Item Page
PART I – FINANCIAL INFORMATION
1.
2.
3.
4.
PART II – OTHER INFORMATION
1.
1A.
2.
5.
6.
As used in this report, “we,” “us,” “our,” "Registrant," the “Company” and “Stewart” mean Stewart Information Services Corporation and our subsidiaries, unless the context indicates otherwise.




















2


PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED)
 Three Months Ended 
 September 30,
Nine Months Ended 
 September 30,
 2020201920202019
 ($000 omitted, except per share)
Revenues
Title revenues:
Direct operations280,114 245,068 696,611 634,198 
Agency operations282,605 254,155 802,022 699,835 
Ancillary services27,957 8,628 44,573 30,708 
Operating revenues590,676 507,851 1,543,206 1,364,741 
Investment income5,027 4,752 14,530 14,631 
Net realized and unrealized (losses) gains(7)46,905 (6,035)50,730 
595,696 559,508 1,551,701 1,430,102 
Expenses
Amounts retained by agencies231,051 208,973 659,138 576,559 
Employee costs155,638 143,815 428,817 412,967 
Other operating expenses98,531 87,826 245,003 251,030 
Title losses and related claims28,427 21,059 68,600 55,532 
Depreciation and amortization5,144 5,694 13,436 17,458 
Interest562 1,080 2,075 3,369 
519,353 468,447 1,417,069 1,316,915 
Income before taxes and noncontrolling interests76,343 91,061 134,632 113,187 
Income tax expense(16,058)(21,393)(29,293)(25,978)
Net income60,285 69,668 105,339 87,209 
Less net income attributable to noncontrolling interests4,376 3,560 10,107 8,561 
Net income attributable to Stewart55,909 66,108 95,232 78,648 
Net income60,285 69,668 105,339 87,209 
Other comprehensive income (loss), net of taxes:
Foreign currency translation adjustments3,844 (5,135)(3,404)1,928 
Change in net unrealized gains and losses on investments920 3,603 15,055 17,985 
Reclassification adjustment for realized gains and losses on investments(175)(92)(276)120 
Other comprehensive income (loss), net of taxes:4,589 (1,624)11,375 20,033 
Comprehensive income64,874 68,044 116,714 107,242 
Less net income attributable to noncontrolling interests4,376 3,560 10,107 8,561 
Comprehensive income attributable to Stewart60,498 64,484 106,607 98,681 
Basic average shares outstanding (000)25,148 23,616 24,151 23,608 
Basic earnings per share attributable to Stewart2.22 2.80 3.94 3.33 
Diluted average shares outstanding (000)25,297 23,773 24,256 23,780 
Diluted earnings per share attributable to Stewart2.21 2.78 3.93 3.31 
See notes to condensed consolidated financial statements.
3


CONDENSED CONSOLIDATED BALANCE SHEETS
As of 
 September 30, 2020 (Unaudited)
As of 
 December 31, 2019
 ($000 omitted)
Assets
Cash and cash equivalents381,560 330,609 
Short-term investments21,288 23,527 
Investments in debt and equity securities, at fair value650,599 645,039 
Receivables:
Premiums from agencies32,749 26,405 
Trade and other47,287 45,962 
Income taxes2,110 1,641 
Notes1,591 2,464 
Allowance for uncollectible amounts(4,456)(4,469)
79,281 72,003 
Property and equipment:
Land2,964 3,009 
Buildings22,423 20,519 
Furniture and equipment174,079 178,416 
Accumulated depreciation(148,490)(151,483)
50,976 50,461 
Operating lease assets110,038 99,028 
Title plants, at cost72,850 72,627 
Investments on equity method basis6,851 6,169 
Goodwill382,235 248,890 
Intangible assets, net of amortization22,002 4,623 
Deferred tax assets4,451 4,407 
Other assets38,058 35,402 
1,820,189 1,592,785 
Liabilities
Notes payable101,256 110,632 
Accounts payable and accrued liabilities143,207 126,779 
Operating lease liabilities122,475 113,843 
Estimated title losses466,812 459,053 
Deferred tax liabilities35,570 28,719 
869,320 839,026 
Contingent liabilities and commitments
Stockholders’ equity
Common Stock ($1 par value) and additional paid-in capital
300,648 188,279 
Retained earnings637,223 564,392 
Accumulated other comprehensive income (loss):
Foreign currency translation adjustments(16,430)(13,027)
Net unrealized gains on debt securities investments25,106 10,328 
Treasury stock – 352,161 common shares, at cost
(2,666)(2,666)
Stockholders’ equity attributable to Stewart943,881 747,306 
Noncontrolling interests6,988 6,453 
Total stockholders’ equity (26,719,342 and 23,709,407 shares outstanding)
950,869 753,759 
1,820,189 1,592,785 
See notes to condensed consolidated financial statements.
4


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
 Nine Months Ended 
 September 30,
 20202019
 ($000 omitted)
Reconciliation of net income to cash provided by operating activities:
Net income105,339 87,209 
Add (deduct):
Depreciation and amortization13,436 17,458 
Provision for bad debt363 889 
Net realized and unrealized losses (gains)6,035 (730)
Amortization of net premium on debt securities investments3,280 3,790 
Payments for title losses less than (in excess of) provisions9,615 (11,266)
Adjustment for insurance recoveries of title losses(73)175 
Increase in receivables – net(4,290)(8,838)
(Increase) decrease in other assets – net(1,702)2,910 
Decrease in accounts payable and other liabilities – net1,301 6,753 
Change in net deferred income taxes3,576 5,563 
Net income from equity investees(2,385)(1,996)
Dividends received from equity investees2,499 1,964 
Stock-based compensation expense4,234 3,380 
Other – net(367)28 
Cash provided by operating activities140,861 107,289 
Investing activities:
Proceeds from sales of investments in securities25,772 20,899 
Proceeds from matured investments in debt securities46,677 44,685 
Purchases of investments in securities(75,487)(2,187)
Net sales (purchases) of short-term investments2,431 (193)
Purchases of property and equipment, and real estate – net(10,492)(11,957)
Cash paid for acquisition of businesses(146,518) 
Other – net1,524 2,111 
Cash (used) provided by investing activities(156,093)53,358 
Financing activities:
Proceeds from notes payable2,361 23,514 
Payments on notes payable(11,737)(26,179)
Distributions to noncontrolling interests(9,572)(8,578)
Issuance of new Common Stock108,961  
Repurchases of Common Stock(826)(481)
Cash dividends paid(22,214)(21,257)
Other - net(311)25 
Cash provided (used) by financing activities66,662 (32,956)
Effects of changes in foreign currency exchange rates(479)1,202 
Increase in cash and cash equivalents50,951 128,893 
Cash and cash equivalents at beginning of period330,609 192,067 
Cash and cash equivalents at end of period381,560 320,960 

See notes to condensed consolidated financial statements.
5


CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED)

Common Stock
Additional paid-in capitalRetained earningsAccumulated other comprehensive (loss) incomeTreasury stockNoncontrolling interestsTotal
($000 omitted)
Nine Months Ended September 30, 2020
Balance at December 31, 201924,062 164,217 564,392 (2,699)(2,666)6,453 753,759 
Net income attributable to Stewart— — 95,232 — — — 95,232 
Dividends on Common Stock ($0.90 per share)
— — (22,401)— — — (22,401)
Issuance of Common Stock3,026 105,935 — — — — 108,961 
Stock-based compensation4 4,230 — — — — 4,234 
Stock repurchases(20)(806)— — — — (826)
Change in net unrealized gains and losses on investments, net of taxes— — — 15,055 — — 15,055 
Reclassification adjustment for realized gains and losses on investments, net of taxes— — — (276)— — (276)
Foreign currency translation adjustments, net of taxes— — — (3,404)— — (3,404)
Net income attributable to noncontrolling interests— — — — — 10,107 10,107 
Distributions to noncontrolling interests— — — — — (9,572)(9,572)
Balance at September 30, 202027,072 273,576 637,223 8,676 (2,666)6,988 950,869 
Nine Months Ended September 30, 2019
Balance at December 31, 201824,072 162,642 514,248 (24,771)(2,666)6,312 679,837 
Net income attributable to Stewart— — 78,648 — — — 78,648 
Dividends on Common Stock ($0.90 per share)
— — (21,506)— — — (21,506)
Stock-based compensation4 3,376 — — — — 3,380 
Stock repurchases(11)(470)— — — — (481)
Change in net unrealized gains and losses on investments, net of taxes— — — 17,985 — — 17,985 
Reclassification adjustment for realized gains and losses on investments, net of taxes, net of taxes— — — 120 — — 120 
Foreign currency translation adjustments, net of taxes— — — 1,928 — — 1,928 
Net income attributable to noncontrolling interests— — — — — 8,561 8,561 
Distributions to noncontrolling interests— — — — — (8,578)(8,578)
Net effect of other changes in ownership— — — — — (10)(10)
Balance at September 30, 201924,065 165,548 571,390 (4,738)(2,666)6,285 759,884 


6


CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED)

Common Stock
Additional paid-in capitalRetained earningsAccumulated other comprehensive income (loss)Treasury stockNoncontrolling interestsTotal
($000 omitted)
Three Months Ended September 30, 2020
Balances at June 30, 202024,052 166,208 589,424 4,087 (2,666)6,227 787,332 
Net income attributable to Stewart— — 55,909 — — — 55,909 
Dividends on Common Stock ($0.30 per share)
— — (8,110)— — — (8,110)
Issuance of Common Stock3,026 105,935 — — — — 108,961 
Stock-based compensation2 1,783 — — — — 1,785 
Stock repurchases(8)(350)— — — — (358)
Change in net unrealized gains and losses on investments, net of taxes— — — 920 — — 920 
Reclassification adjustment for realized gains and losses on investments, net of taxes— — — (175)— — (175)
Foreign currency translation adjustments, net of taxes— — — 3,844 — — 3,844 
Net income attributable to noncontrolling interests— — — — — 4,376 4,376 
Distributions to noncontrolling interests— — — — — (3,615)(3,615)
Balance at September 30, 202027,072 273,576 637,223 8,676 (2,666)6,988 950,869 
Three Months Ended September 30, 2019
Balances at June 30, 201924,065 164,235 512,467 (3,114)(2,666)5,840 700,827 
Net income attributable to Stewart— — 66,108 — — — 66,108 
Dividends on Common Stock ($0.30 per share)
— — (7,185)— — — (7,185)
Stock-based compensation 1,323 — — — — 1,323 
Stock repurchases (10)— — — — (10)
Change in net unrealized gains and losses on investments, net of taxes— — — 3,603 — — 3,603 
Reclassification adjustment for realized gains and losses on investments, net of taxes, net of taxes— — — (92)— — (92)
Foreign currency translation adjustments, net of taxes— — — (5,135)— — (5,135)
Net income attributable to noncontrolling interests— — — — — 3,560 3,560 
Distributions to noncontrolling interests— — — — — (3,091)(3,091)
Net effect of other changes in ownership— — — — — (24)(24)
Balance at September 30, 201924,065 165,548 571,390 (4,738)(2,666)6,285 759,884 
See notes to condensed consolidated financial statements.

7


NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1

Interim financial statements. The financial information contained in this report for the three months ended September 30, 2020 and 2019, and as of September 30, 2020, is unaudited. This report should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 filed with the Securities and Exchange Commission on February 27, 2020 (2019 Form 10-K).

A. Management’s responsibility. The accompanying interim financial statements were prepared by management, who is responsible for their integrity and objectivity. These financial statements have been prepared in conformity with the United States (U.S.) generally accepted accounting principles (GAAP), including management’s best judgments and estimates. In the opinion of management, all adjustments necessary for a fair presentation of this information for all interim periods, consisting only of normal recurring accruals, have been made. The Company’s results of operations for interim periods are not necessarily indicative of results for a full year and actual results could differ.

B. Consolidation. The condensed consolidated financial statements include all subsidiaries in which the Company owns more than 50% voting rights in electing directors. All significant intercompany amounts and transactions have been eliminated and provisions have been made for noncontrolling interests. Unconsolidated investees, in which the Company typically owns from 20% to 50% of the voting stock, are accounted for using the equity method.

C. Restrictions on cash and investments. The Company maintains investments in accordance with certain statutory requirements for the funding of statutory premium reserves. Statutory reserve funds are required to be fully funded and invested in high-quality securities and short-term investments. Statutory reserve funds are not available for current claim payments, which must be funded from current operating cash flow. Included in investments in debt and equity securities are statutory reserve funds of approximately $535.7 million and $483.4 million at September 30, 2020 and December 31, 2019, respectively. In addition, included within cash and cash equivalents are statutory reserve funds of approximately $21.1 million and $39.7 million at September 30, 2020 and December 31, 2019, respectively. Although these cash statutory reserve funds are not restricted or segregated in depository accounts, they are required to be held pursuant to state statutes. If the Company fails to maintain minimum investments or cash and cash equivalents sufficient to meet statutory requirements, the Company may be subject to fines or other penalties, including potential revocation of its business license. These funds are not available for any other purpose. In the event that insurance regulators adjust the determination of the statutory premium reserves of the Company’s title insurers, these restricted funds as well as statutory surplus would correspondingly increase or decrease.

D. Issuance of Common Stock. On August 17, 2020, the Company issued an aggregate of 3,026,340 new shares of its Common Stock ($1 par value), which included shares purchased by the underwriters to the transaction. Proceeds from the Common Stock issuance, net of issuance costs, amounted to $109.0 million.

E. Impact of the COVID-19 pandemic. In March 2020, a global pandemic escalated relating to a novel strain of coronavirus (COVID-19), which resulted in a slowdown in the global economy and a U.S. declaration of a national emergency. In response to the pandemic, health and governmental bodies, including the state of Texas where the Company is headquartered, issued travel restrictions, quarantine orders, temporary closures of non-essential businesses and other restrictive measures. To date, various levels of restrictions are still in place across the U.S. to address the spread of COVID-19. Although the title insurance industry has been deemed essential in the U.S., the pandemic and measures to contain it have caused disruptions in the real estate market and in the Company's business operations. To the extent that the COVID-19 pandemic continues or worsens, it could adversely impact the Company's future operational and financial performance, which may result in impairments of its assets. The Company is currently unable to determine the effects the COVID-19 pandemic will have on the Company's future financial statements or results of operations.
8


NOTE 2

Revenues. The Company's operating revenues, summarized by type, are as follows:
 Three Months Ended 
 September 30,
Nine Months Ended 
 September 30,
 2020201920202019
($000 omitted)
Title insurance premiums:
Direct190,794 174,635 478,822 448,920 
Agency282,605 254,155 802,022 699,835 
Escrow fees53,384 38,666 127,903 100,570 
Search, abstract and valuation services42,627 20,922 81,533 63,109 
Other revenues21,266 19,473 52,926 52,307 
590,676 507,851 1,543,206 1,364,741 


NOTE 3

Investments in debt and equity securities. The total fair values of the Company's investments in debt and equity securities are as follows:
 September 30, 2020December 31, 2019
($000 omitted)
Investments in:
Debt securities617,895 605,721 
Equity securities32,704 39,318 
650,599 645,039 

As of September 30, 2020 and December 31, 2019, the net unrealized investment gains relating to investments in equity securities held were $0.4 million and $6.9 million, respectively (refer to Note 5).

The amortized costs and fair values of investments in debt securities are as follows:
 September 30, 2020December 31, 2019
 
Amortized
costs
Fair
values
Amortized
costs
Fair
values
 ($000 omitted)
Municipal46,397 48,952 52,176 53,823 
Corporate301,297 320,348 299,074 309,142 
Foreign231,859 241,969 234,734 236,073 
U.S. Treasury Bonds6,562 6,626 6,664 6,683 
586,115 617,895 592,648 605,721 

Foreign debt securities consist of Canadian government and corporate bonds, United Kingdom treasury and corporate bonds, and Mexican government bonds.

9


Gross unrealized gains and losses on investments in debt securities are as follows:
 September 30, 2020December 31, 2019
 GainsLossesGainsLosses
 ($000 omitted)
Municipal2,555  1,649 2 
Corporate19,396 345 10,091 23 
Foreign10,131 21 2,362 1,023 
U.S. Treasury Bonds88 24 60 41 
32,170 390 14,162 1,089 

Debt securities as of September 30, 2020 mature, according to their contractual terms, as follows (actual maturities may differ due to call or prepayment rights):
Amortized
costs
Fair
values
 ($000 omitted)
In one year or less68,394 69,164 
After one year through five years299,977 313,410 
After five years through ten years186,766 201,134 
After ten years30,978 34,187 
586,115 617,895 

Gross unrealized losses on investments in debt securities and the fair values of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2020, were:
 Less than 12 monthsMore than 12 monthsTotal
 LossesFair valuesLossesFair valuesLossesFair values
 ($000 omitted)
Municipal      
Corporate345 22,781   345 22,781 
Foreign1 4,106 20 240 21 4,346 
U.S. Treasury Bonds  24 1,022 24 1,022 
346 26,887 44 1,262 390 28,149 

The number of specific debt investment holdings held in an unrealized loss position as of September 30, 2020 was 15. Of these securities, 3 were in unrealized loss positions for more than 12 months. During 2020, the overall investment fair values increased, primarily resulting from the effect of lower interest rates which was partially offset by increased credit spreads. Since the Company does not intend to sell and will more likely than not maintain each investment security until its maturity or anticipated recovery, and no significant credit risk is deemed to exist, these investments are not considered as other-than-temporarily impaired. The Company believes its investment portfolio is diversified and expects no material loss to result from the failure to perform by issuers of the debt securities it holds. Investments made by the Company are not collateralized.

10


Gross unrealized losses on investments in debt securities and the fair values of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2019, were:
 Less than 12 monthsMore than 12 monthsTotal
 LossesFair valuesLossesFair valuesLossesFair values
 ($000 omitted)
Municipal2 53   2 53 
Corporate23