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Investments | 3 Months Ended
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Mar. 31, 2025
Investments [Abstract] |
Investments | Investments Fixed maturity securities See Note 6, "Fair Value" for additional fair value disclosures. The following tables summarize the amortized cost and estimated fair value, net of credit loss allowance, of our fixed maturity securities as of:
|  | March 31, 2025
(in thousands) |  | Amortized cost |  | Gross unrealized gains |  | Gross unrealized losses |  | Estimated fair value
Available-for-sale securities: |  |  |  |  |  |  |  |
Corporate debt securities (1) |  | $ | 696,519 |  |  | $ | 6,111 |  |  | $ | 7,298 |  |  | $ | 695,332 |
Collateralized debt obligations |  | 107,667 |  |  | 191 |  |  | 393 |  |  | 107,465 |
Commercial mortgage-backed securities |  | 120,342 |  |  | 1,930 |  |  | 2,246 |  |  | 120,026 |
Residential mortgage-backed securities |  | 157,872 |  |  | 310 |  |  | 13,703 |  |  | 144,479 |
Other debt securities |  | 36,362 |  |  | 366 |  |  | 458 |  |  | 36,270 |
U.S. Treasury |  | 8,979 |  |  | 156 |  |  | 0 |  |  | 9,135 |
Total available-for-sale securities, net |  | 1,127,741 |  |  | 9,064 |  |  | 24,098 |  |  | 1,112,707 |
Held-to-maturity securities - states & political subdivisions |  | 4,833 |  |  | 69 |  |  | 0 |  |  | 4,902 |
Total fixed maturity securities, net |  | $ | 1,132,574 |  |  | $ | 9,133 |  |  | $ | 24,098 |  |  | $ | 1,117,609 |
(1)This includes an estimated fair value of $12.2 million of securities lent under a securities lending agreement.
|  | December 31, 2024
(in thousands) |  | Amortized cost |  | Gross unrealized gains |  | Gross unrealized losses |  | Estimated fair value
Available-for-sale securities: |  |  |  |  |  |  |  |
Corporate debt securities (1) |  | $ | 647,861 |  |  | $ | 4,767 |  |  | $ | 8,685 |  |  | $ | 643,943 |
Collateralized debt obligations |  | 114,142 |  |  | 372 |  |  | 387 |  |  | 114,127 |
Commercial mortgage-backed securities |  | 126,509 |  |  | 1,458 |  |  | 2,985 |  |  | 124,982 |
Residential mortgage-backed securities |  | 150,212 |  |  | 62 |  |  | 16,462 |  |  | 133,812 |
Other debt securities |  | 27,232 |  |  | 147 |  |  | 628 |  |  | 26,751 |
Total available-for-sale securities, net |  | 1,065,956 |  |  | 6,806 |  |  | 29,147 |  |  | 1,043,615 |
Held-to-maturity securities - states & political subdivisions |  | 4,833 |  |  | 101 |  |  | 0 |  |  | 4,934 |
Total available-for-sale securities, net |  | $ | 1,070,789 |  |  | $ | 6,907 |  |  | $ | 29,147 |  |  | $ | 1,048,549 |
(1)This includes an estimated fair value of $7.3 million of securities lent under a securities lending agreement. The amortized cost and estimated fair value of available-for-sale and held-to-maturity securities at March 31, 2025 are shown below by remaining contractual term to maturity. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
|  | March 31, 2025
|  | Amortized |  | Estimated
(in thousands) |  | cost |  | fair value
Available-for-sale securities: |  |  |  |
Due in one year or less |  | $ | 53,577 |  |  | $ | 52,860 |
Due after one year through five years |  | 479,358 |  |  | 479,252 |
Due after five years through ten years |  | 187,422 |  |  | 187,375 |
Due after ten years |  | 407,384 |  |  | 393,220 |
Total available-for-sale securities, net (1) (2) |  | 1,127,741 |  |  | 1,112,707 |
Held-to-maturity securities - due after ten years |  | 4,833 |  |  | 4,902 |
Total fixed maturity securities, net |  | $ | 1,132,574 |  |  | $ | 1,117,609 |
(1)The contractual maturities of our available-for-sale securities are included in the table. However, given our intent to sell certain impaired securities, these securities are classified as current assets in our Consolidated Statement of Financial Position at March 31, 2025. (2)This includes an estimated fair value of $12.2 million of securities lent under a securities lending agreement. The below securities have been evaluated for credit impairment using criteria described within Note 2, "Significant Accounting Policies, of Notes to Consolidated Financial Statements" included in our Annual Report on Form 10-K for the year ended December 31, 2024 as filed with the SEC on February 27, 2025. The gross unrealized losses are primarily attributable to changes in interest rates and are not deemed to be credit-related. We do not have the intent to sell these securities and it is more likely than not that we would not be required to sell these securities before the anticipated recovery of the amortized cost basis. The following tables present available-for-sale securities based on length of time in a gross unrealized loss position as of:
|  | March 31, 2025
|  | Less than 12 months |  | 12 months or longer |  | Total
(dollars in thousands) |  | Fair value |  | Unrealized losses |  | Fair value |  | Unrealized losses |  | Fair value |  | Unrealized losses |  | No. of holdings
Corporate debt securities |  | $ | 170,976 |  |  | $ | 2,383 |  |  | $ | 144,217 |  |  | $ | 4,915 |  |  | $ | 315,193 |  |  | $ | 7,298 |  |  | 754 |
Collateralized debt obligations |  | 64,839 |  |  | 179 |  |  | 8,766 |  |  | 214 |  |  | 73,605 |  |  | 393 |  |  | 112 |
Commercial mortgage-backed securities |  | 15,244 |  |  | 149 |  |  | 22,838 |  |  | 2,097 |  |  | 38,082 |  |  | 2,246 |  |  | 92 |
Residential mortgage-backed securities |  | 31,709 |  |  | 752 |  |  | 89,244 |  |  | 12,951 |  |  | 120,953 |  |  | 13,703 |  |  | 162 |
Other debt securities |  | 7,392 |  |  | 39 |  |  | 4,844 |  |  | 419 |  |  | 12,236 |  |  | 458 |  |  | 34 |
Total available-for-sale securities |  | $ | 290,160 |  |  | $ | 3,502 |  |  | $ | 269,909 |  |  | $ | 20,596 |  |  | $ | 560,069 |  |  | $ | 24,098 |  |  | 1,154 |
Quality breakdown of available-for-sale securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment grade |  | $ | 221,033 |  |  | $ | 1,898 |  |  | $ | 243,010 |  |  | $ | 18,704 |  |  | $ | 464,043 |  |  | $ | 20,602 |  |  | 555 |
Non-investment grade |  | 69,127 |  |  | 1,604 |  |  | 26,899 |  |  | 1,892 |  |  | 96,026 |  |  | 3,496 |  |  | 599 |
Total available-for-sale securities |  | $ | 290,160 |  |  | $ | 3,502 |  |  | $ | 269,909 |  |  | $ | 20,596 |  |  | $ | 560,069 |  |  | $ | 24,098 |  |  | 1,154 |
|  | December 31, 2024
|  | Less than 12 months |  | 12 months or longer |  | Total
(dollars in thousands) |  | Fair value |  | Unrealized losses |  | Fair value |  | Unrealized losses |  | Fair value |  | Unrealized losses |  | No. of holdings
Corporate debt securities |  | $ | 197,619 |  |  | $ | 2,486 |  |  | $ | 156,059 |  |  | $ | 6,199 |  |  | $ | 353,678 |  |  | $ | 8,685 |  |  | 567 |
Collateralized debt obligations |  | 33,686 |  |  | 71 |  |  | 11,762 |  |  | 316 |  |  | 45,448 |  |  | 387 |  |  | 77 |
Commercial mortgage-backed securities |  | 28,333 |  |  | 407 |  |  | 24,966 |  |  | 2,578 |  |  | 53,299 |  |  | 2,985 |  |  | 131 |
Residential mortgage-backed securities |  | 38,003 |  |  | 1,289 |  |  | 90,209 |  |  | 15,173 |  |  | 128,212 |  |  | 16,462 |  |  | 169 |
Other debt securities |  | 11,663 |  |  | 150 |  |  | 5,045 |  |  | 478 |  |  | 16,708 |  |  | 628 |  |  | 42 |
Total available-for-sale securities |  | $ | 309,304 |  |  | $ | 4,403 |  |  | $ | 288,041 |  |  | $ | 24,744 |  |  | $ | 597,345 |  |  | $ | 29,147 |  |  | 986 |
Quality breakdown of available-for-sale securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment grade |  | $ | 280,332 |  |  | $ | 3,701 |  |  | $ | 260,480 |  |  | $ | 22,664 |  |  | $ | 540,812 |  |  | $ | 26,365 |  |  | 616 |
Non-investment grade |  | 28,972 |  |  | 702 |  |  | 27,561 |  |  | 2,080 |  |  | 56,533 |  |  | 2,782 |  |  | 370 |
Total available-for-sale securities |  | $ | 309,304 |  |  | $ | 4,403 |  |  | $ | 288,041 |  |  | $ | 24,744 |  |  | $ | 597,345 |  |  | $ | 29,147 |  |  | 986 |
Credit loss allowances The following tables present a roll-forward of the allowances for credit losses on investments for the three months ended March 31:
|  | 2025
(in thousands) |  | Available-for-sale securities |  | Held-to-maturity securities |  | Other loans receivable |  | Agent loans
Balance, beginning of period |  | $ | 513 |  |  | $ | 2,167 |  |  | $ | 12,198 |  |  | $ | 1,312 |
Provision and recoveries |  | 365 |  |  | 0 |  |  | 394 |  |  | 164 |
Sales/collections and write-offs |  | (52) |  |  | 0 |  |  | 0 |  |  | 0 |
Balance, end of period |  | $ | 826 |  |  | $ | 2,167 |  |  | $ | 12,592 |  |  | $ | 1,476 |
|  | 2024
(in thousands) |  | Available-for-sale securities |  | Held-to-maturity securities |  | Other loans receivable |  | Agent loans
Balance, beginning of period |  | $ | 597 |  |  | $ | 0 |  |  | $ | 11,081 |  |  | $ | 957 |
Provision and recoveries |  | 164 |  |  | 2,167 |  |  | 172 |  |  | 0 |
Sales/collections and write-offs |  | (186) |  |  | 0 |  |  | 0 |  |  | 0 |
Balance, end of period |  | $ | 575 |  |  | $ | 2,167 |  |  | $ | 11,253 |  |  | $ | 957 |
Net investment income Investment income, net of expenses, was generated from the following portfolios for the three months ended March 31:
(in thousands) |  |  |  |  |  | 2025 |  | 2024 |
Available-for-sale securities |  |  |  |  |  | $ | 13,283 |  |  | $ | 11,613 |  |
Equity securities |  |  |  |  |  | 1,164 |  |  | 1,218 |  |
Limited partnerships (1) |  |  |  |  |  | 1,072 |  |  | 525 |  |
Agent loans (2) |  |  |  |  |  | 1,444 |  |  | 913 |  |
Cash equivalents and other (2) |  |  |  |  |  | 3,387 |  |  | 2,035 |  |
Total investment income |  |  |  |  |  | 20,350 |  |  | 16,304 |  |
Less: investment expenses |  |  |  |  |  | 402 |  |  | 401 |  |
Net investment income |  |  |  |  |  | $ | 19,948 |  |  | $ | 15,903 |  |
(1)Limited partnership income include both realized gains (losses) and unrealized valuation changes. Our limited partnership investments are included in the line item "Other assets" in the Consolidated Statements of Financial Position. We have made no new significant limited partnership commitments since 2006, and the balance of limited partnership investments is expected to decline over time as additional distributions are received. (2)2024 amounts have been reclassified to conform to the current period presentation. Net realized and unrealized investment gains Realized and unrealized gains (losses) on investments were as follows for the three months ended March 31:
(in thousands) |  |  |  |  |  | 2025 |  | 2024 |
Available-for-sale securities: |  |  |  |  |  |  |  |  |
Gross realized gains |  |  |  |  |  | $ | 349 |  |  | $ | 270 |  |
Gross realized losses |  |  |  |  |  | (611) |  |  | (532) |  |
Net realized losses on available-for-sale securities |  |  |  |  |  | (262) |  |  | (262) |  |
Equity securities |  |  |  |  |  | 759 |  |  | 2,115 |  |
Miscellaneous |  |  |  |  |  | 5 |  |  | 0 |  |
Net realized and unrealized investment gains |  |  |  |  |  | $ | 502 |  |  | $ | 1,853 |  |
The portion of net unrealized gains recognized during the reporting period related to equity securities held at the reporting date is calculated as follows for the three months ended March 31:
(in thousands) |  |  |  |  |  | 2025 |  | 2024 |
Equity securities: |  |  |  |  |  |  |  |  |
Net gains recognized during the period |  |  |  |  |  | $ | 759 |  |  | $ | 2,115 |  |
Less: net gains recognized on securities sold |  |  |  |  |  | 101 |  |  | 67 |  |
Net unrealized gains recognized on securities held at reporting date |  |  |  |  |  | $ | 658 |  |  | $ | 2,048 |  |
Net impairment losses recognized in earnings Impairments on investments were as follows for the three months ended March 31:
(in thousands) |  |  |  |  |  | 2025 |  | 2024 |
Available-for-sale securities: |  |  |  |  |  |  |  |  |
Intent to sell |  |  |  |  |  | $ | 0 |  |  | $ | (174) |  |
Credit impaired |  |  |  |  |  | (365) |  |  | (164) |  |
Total available-for-sale securities |  |  |  |  |  | (365) |  |  | (338) |  |
Expected credit losses: |  |  |  |  |  |  |  |  |
Held-to-maturity securities |  |  |  |  |  | 0 |  |  | (2,167) |  |
Agent loans |  |  |  |  |  | (164) |  |  | 0 |  |
Other loans receivable |  |  |  |  |  | (385) |  |  | (172) |  |
Net impairment losses recognized in earnings |  |  |  |  |  | $ | (914) |  |  | $ | (2,677) |  |
Securities lending transactions As of March 31, 2025, the estimated fair value of loaned securities was $12.3 million, comprised of $12.2 million and $0.1 million of corporate debt and equity securities, respectively. The related cash collateral received was $12.7 million, which was reinvested in cash equivalents and is included with "Cash and cash equivalents" in our Consolidated Statement of Financial Position. There was no collateral that we are not permitted to sell or repledge and there are no securities lending transactions that extend beyond one year from the reporting date. If we have to return cash collateral on short notice, we may have difficulty selling investments in a timely manner, be forced to sell them for less than we otherwise would have been able to realize, or both. In addition, in the event of such forced sale, for securities in an unrealized loss position, realized losses would be incurred on securities sold and impairments would be incurred, if there is a need to sell securities prior to recovery, which may negatively impact our financial condition.

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