Investments

3 Months Ended

Jun. 30, 2025

Investments Debt Equity Securities [Abstract]

3. Investments

We deposit bonds with insurance regulatory authorities to meet statutory requirements. The adjusted cost of bonds on deposit with insurance regulatory authorities was $19.7 million and $21.5 million as of June 30, 2025 and March 31, 2025, respectively.

Available-for-Sale Investments

Available-for-sale investments as of June 30, 2025 were as follows:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Allowance for Expected Credit Losses			Fair Value
	(Unaudited)
	(In thousands)
U.S. treasury securities and government obligations	$	108,199	$	252	$	(6,629	)	$	—		$	101,822
U.S. government agency mortgage-backed securities		92,874		379		(8,348	)		—			84,905
Obligations of states and political subdivisions		135,370		392		(8,259	)		—			127,503
Corporate securities		1,759,338		2,657		(133,309	)		(2,443	)		1,626,243
Mortgage-backed securities		617,232		1,729		(38,268	)		—			580,693
	$	2,713,013	$	5,409	$	(194,813	)	$	(2,443	)	$	2,521,166

Available-for-sale investments as of March 31, 2025 were as follows:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Allowance for Expected Credit Losses			Fair Value
	(Unaudited)
	(In thousands)
U.S. treasury securities and government obligations	$	119,289	$	206	$	(8,353	)	$	—		$	111,142
U.S. government agency mortgage-backed securities		81,909		232		(8,712	)		—			73,429
Obligations of states and political subdivisions		137,280		272		(8,808	)		—			128,744
Corporate securities		1,807,605		1,623		(155,749	)		(3,104	)		1,650,375
Mortgage-backed securities		562,479		582		(47,253	)		—			515,808
	$	2,708,562	$	2,915	$	(228,875	)	$	(3,104	)	$	2,479,498

A summary of available-for-sale investments with unrealized losses for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous loss position as of June 30, 2025 and March 31, 2025 were as follows:


	June 30, 2025
	Less than or equal to 1 year					Greater than 1 year					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(Unaudited)
	(In thousands)
U.S. treasury securities and government obligations	$	1,459	$	(2	)	$	95,657	$	(6,627	)	$	97,116	$	(6,629	)
U.S. government agency mortgage-backed securities		22,220		(143	)		20,748		(8,205	)		42,968		(8,348	)
Obligations of states and political subdivisions		41,243		(1,530	)		54,196		(6,729	)		95,439		(8,259	)
Corporate securities		229,829		(2,724	)		1,209,858		(130,475	)		1,439,687		(133,199	)
Mortgage-backed securities		137,864		(1,135	)		210,919		(37,133	)		348,783		(38,268	)
	$	432,615	$	(5,534	)	$	1,591,378	$	(189,169	)	$	2,023,993	$	(194,703	)


	March 31, 2025
	Less than or equal to 1 year					Greater than 1 year					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(Unaudited)
	(In thousands)
U.S. treasury securities and government obligations	$	1,760	$	(24	)	$	95,058	$	(8,329	)	$	96,818	$	(8,353	)
U.S. government agency mortgage-backed securities		36,871		(197	)		20,928		(8,515	)		57,799		(8,712	)
Obligations of states and political subdivisions		46,036		(1,628	)		52,903		(7,179	)		98,939		(8,807	)
Corporate securities		294,133		(5,822	)		1,239,884		(149,927	)		1,534,017		(155,749	)
Mortgage-backed securities		188,328		(3,911	)		217,020		(43,343	)		405,348		(47,254	)
	$	567,128	$	(11,582	)	$	1,625,793	$	(217,293	)	$	2,192,921	$	(228,875	)

Gross proceeds from sales of securities were $2.4 million and $4.3 million for the quarters ended June 30, 2025 and June 30, 2024, respectively. No material gross realized gains or losses were recognized.

For available-for-sale debt securities in an unrealized loss position, we first assess whether the security is below investment grade. For securities that are below investment grade, we evaluate whether the decline in fair value has resulted from credit losses or other factors such as the interest rate environment. Declines in value due to credit are recognized as an allowance. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse market conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, cumulative default rates based on ratings are used to determine the potential cost of default, by year. The present value of these potential costs is then compared to the amortized cost of the security to determine the credit loss, limited by the amount that the fair value is less than the amortized cost basis.

Declines in fair value that have not been recorded through an allowance for credit losses, such as declines due to changes in market interest rates, are recorded through accumulated other comprehensive income, net of applicable taxes. If we intend to sell a security, or it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis, the security is written down to its fair value and the write down is charged against the allowance for credit losses, with any incremental impairment reported in earnings. Reversals of the allowance for credit losses are permitted and should not exceed the allowance amount initially recognized.

Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. There was a ($0.7) million and $1.9 million net impairment charge recorded in the quarters ended June 30, 2025 and June 30, 2024, respectively.

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

The amortized cost and fair value of available-for-sale investments by contractual maturity were as follows:


	June 30, 2025				March 31, 2025
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(Unaudited)
	(In thousands)
Due in one year or less	$	213,405	$	212,060	$	196,238	$	194,896
Due after one year through five years		535,496		525,630		591,589		576,204
Due after five years through ten years		618,977		573,337		611,788		558,430
Due after ten years		727,903		629,446		746,468		634,160
		2,095,781		1,940,473		2,146,083		1,963,690

Mortgage-backed securities		617,232		580,693		562,479		515,808
	$	2,713,013	$	2,521,166	$	2,708,562	$	2,479,498

Equity investments of common stock and non-redeemable preferred stock were as follows:


	June 30, 2025				March 31, 2025
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(Unaudited)
	(In thousands)
Common stocks	$	30,051	$	43,843	$	30,108	$	43,413
Non-redeemable preferred stocks		25,144		21,766		25,144		22,136
	$	55,195	$	65,609	$	55,252	$	65,549

Changes in the market value of common stock and non-redeemable preferred stock are recognized in earnings.

Investments, other

The carrying value of the other investments was as follows:


	June 30,		March 31,
	2025		2025
	(Unaudited)
	(In thousands)
Mortgage loans, net	$	664,551	$	657,567
Policy loans		12,065		11,868
Other investments		5,076		8,819
	$	681,692	$	678,254