CITIZENS, INC. Table of Contents The Company holds 21.4% of its municipal holdings in Texas issuers as of December 31, 2020. There were no other states or individual issuer holdings that represented or exceeded 10% of the total municipal portfolio as of December 31, 2020. Beginning January 1, 2020, in connection with the adoption of a new accounting standard, the Company assesses available-for-sale ("AFS") fixed maturity securities in an unrealized loss position for expected credit losses. See  Note 1. Summary of Significant Accounting Policies  for a discussion regarding our application of this accounting standard in 2020. The Company recorded no credit losses on securities in 2020 or other-than-temporary impairments ("OTTI") on securities in 2019. Gross unrealized losses on AFS fixed maturity securities amounted to $1.9 million as of December 31, 2020 and $1.6 million as of December 31, 2019. This increase in gross unrealized losses during 2020 was a result of the market disruption caused by the COVID-19 pandemic. Information on both unrealized and realized gains and losses by category is set forth in  Note 2. Investments  of the notes to our consolidated financial statements. As is customary among insurance companies, our insurance company subsidiaries reinsure, with other companies, portions of the life insurance risks they underwrite. A primary purpose of reinsurance agreements is to enable an insurance company to reduce the amount of risk by reinsuring the amount exceeding the maximum amount the insurance company is willing to retain. Even though a portion of the risk may be reinsured, our insurance company subsidiaries remain liable to perform all the obligations imposed by the policies issued by them and could be liable if their reinsurers were unable to meet their obligations under the reinsurance agreements. We believe we have established appropriate reinsurance coverage based upon our net retained insured liabilities compared to our surplus. December 31, 2020 | 10-K 56 IMPAIRMENT CONSIDERATIONS RELATED TO INVESTMENTS IN FIXED MATURITY AND EQUITY SECURITIES REINSURANCE General Obligation Special Revenue Total (In thousands) Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Texas securities including third-party guarantees AAA $ 22,176 21,557 3,334 3,096 25,510 24,653 AA 23,009 22,554 14,092 13,067 37,101 35,621 A — — 22,334 21,855 22,334 21,855 BBB — — 1,977 1,828 1,977 1,828 BB and other — — 559 508 559 508 Total $ 45,185 44,111 42,296 40,354 87,481 84,465 Texas securities excluding third-party guarantees AAA $ 4,530 4,419 — — 4,530 4,419 AA 33,368 32,710 3,612 3,316 36,980 36,026 A 6,063 5,830 30,117 29,028 36,180 34,858 BBB 1,224 1,152 5,547 5,209 6,771 6,361 BB and other — — 3,020 2,801 3,020 2,801 Total $ 45,185 44,111 42,296 40,354 87,481 84,465