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Investments (Tables) | 3 Months Ended
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Mar. 31, 2025
Investments, Debt and Equity Securities [Abstract] |
Summary Investment Income | Sources of net investment income were as follows for the periods indicated:
| Three months ended March 31, |  |
(Amounts in thousands) | 2025 |  | 2024 |  |  |  |
Fixed maturity securities available-for-sale | $ | 58,452 |  |  | $ | 51,156 |  |  |  |  |
Cash, cash equivalents and short-term investments | 6,623 |  |  | 7,645 |  |  |  |  |
Gross investment income before expenses and fees | 65,075 |  |  | 58,801 |  |  |  |  |
Investment expenses and fees | (2,038) |  |  | (1,690) |  |  |  |  |
Net investment income | $ | 63,037 |  |  | $ | 57,111 |  |  |  |  |
Summary of Net Investment Gains (Losses) | The following table sets forth net investment gains (losses) for the periods indicated:
| Three months ended March 31, |  |
(Amounts in thousands) | 2025 |  | 2024 |  |  |  |
Fixed maturity securities available-for-sale: |  |  |  |  |  |  |
Gross realized gains | $ | 369 |  |  | $ | 203 |  |  |  |  |
Gross realized (losses) | (3,497) |  |  | (6,876) |  |  |  |  |
Net realized gains (losses) | (3,128) |  |  | (6,673) |  |  |  |  |
Change in allowance for credit losses on fixed maturity securities | (273) |  |  | — |  |  |  |  |
Change in allowance for credit losses on commitment | 158 |  |  | (11) |  |  |  |  |
Net investment gains (losses) | $ | (3,243) |  |  | $ | (6,684) |  |  |  |  |
Schedule of Unrealized Gain (Loss) on Investments | Net unrealized gains and losses on available-for-sale securities reflected as a separate component of accumulated other comprehensive income (“AOCI”) were as follows as of the dates indicated:
(Amounts in thousands) | March 31, 2025 |  | December 31, 2024
Net unrealized gains (losses) on investment securities: |  |  |
Fixed maturity securities | $ | (176,760) |  |  | $ | (251,729) |
Short-term investments | 4 |  |  | (3) |
Unrealized gains (losses) on investment securities | (176,756) |  |  | (251,732) |
Income taxes | 28,026 |  |  | 44,108 |
Net unrealized investment gains (losses) | $ | (148,730) |  |  | $ | (207,624) |
The change in net unrealized gains (losses) on available-for-sale securities reported in accumulated other comprehensive income was as follows as of and for the periods indicated:
| Three months ended March 31,
(Amounts in thousands) | 2025 |  | 2024
Beginning balance | $ | (207,624) |  |  | $ | (230,556) |
Unrealized gains (losses) arising during the period: |  |  |
Unrealized gains (losses) on investment securities | 71,848 |  |  | (15,665) |
Provision for income taxes | (15,425) |  |  | 3,314 |
Change in unrealized gains (losses) on investment securities | 56,423 |  |  | (12,351) |
Reclassification adjustments to net investment (gains) losses, net of taxes of $(657) and $(1,401), respectively | 2,471 |  |  | 5,272 |
Change in net unrealized investment gains (losses) | 58,894 |  |  | (7,079) |
Ending balance | $ | (148,730) |  |  | $ | (237,635) |
Summary of Fixed Maturity Securities Classified as Available-for-Sale | As of March 31, 2025, the amortized cost, gross unrealized gains (losses) and fair value of our investment securities were as follows:
(Amounts in thousands) | Amortized cost |  | Gross unrealized gains |  | Gross unrealized losses |  | Allowance for credit losses |  | Fair value
U.S. government, agencies and GSEs | $ | 287,643 |  |  | $ | 2,800 |  |  | $ | (1,435) |  |  | $ | — |  |  | $ | 289,008 |
State and political subdivisions | 540,495 |  |  | 1,571 |  |  | (65,925) |  |  | — |  |  | 476,141 |
Non-U.S. government | 113,342 |  |  | 780 |  |  | (969) |  |  | — |  |  | 113,153 |
U.S. corporate | 2,978,401 |  |  | 20,555 |  |  | (98,751) |  |  | — |  |  | 2,900,205 |
Non-U.S. corporate | 786,865 |  |  | 5,589 |  |  | (23,228) |  |  | (273) |  |  | 768,953 |
Residential mortgage-backed | 111,660 |  |  | 505 |  |  | (482) |  |  | — |  |  | 111,683 |
Commercial mortgage-backed | 20,597 |  |  | 105 |  |  | — |  |  | — |  |  | 20,702 |
Other asset-backed | 1,153,367 |  |  | 5,513 |  |  | (23,388) |  |  | — |  |  | 1,135,492 |
Total fixed maturity securities available-for-sale | $ | 5,992,370 |  |  | $ | 37,418 |  |  | $ | (214,178) |  |  | $ | (273) |  |  | $ | 5,815,337 |
Short-term investments | 3,692 |  |  | 4 |  |  | — |  |  | — |  |  | 3,696 |
Total investments | $ | 5,996,062 |  |  | $ | 37,422 |  |  | $ | (214,178) |  |  | $ | (273) |  |  | $ | 5,819,033 |
As of December 31, 2024, the amortized cost, gross unrealized gains (losses) and fair value of our investment securities were as follows:
(Amounts in thousands) | Amortized cost |  | Gross unrealized gains |  | Gross unrealized losses |  |  |  | Fair value
U.S. government, agencies and GSEs | $ | 281,858 |  |  | $ | 590 |  |  | $ | (5,085) |  |  |  |  | $ | 277,363 |
State and political subdivisions | 541,715 |  |  | 1,388 |  |  | (75,627) |  |  |  |  | 467,476 |
Non-U.S. government | 85,566 |  |  | 94 |  |  | (1,858) |  |  |  |  | 83,802 |
U.S. corporate | 2,943,900 |  |  | 11,363 |  |  | (129,584) |  |  |  |  | 2,825,679 |
Non-U.S. corporate | 800,141 |  |  | 2,533 |  |  | (30,050) |  |  |  |  | 772,624 |
Residential mortgage-backed | 8,394 |  |  | 27 |  |  | (57) |  |  |  |  | 8,364 |
Other asset-backed | 1,214,928 |  |  | 4,716 |  |  | (30,179) |  |  |  |  | 1,189,465 |
Total fixed maturity securities available-for-sale | $ | 5,876,502 |  |  | $ | 20,711 |  |  | $ | (272,440) |  |  |  |  | $ | 5,624,773 |
Short-term investments | 3,370 |  |  | 1 |  |  | (4) |  |  |  |  | 3,367 |
Total investments | $ | 5,879,872 |  |  | $ | 20,712 |  |  | $ | (272,444) |  |  |  |  | $ | 5,628,140 |
Schedule of Unrealized Losses and FV of Fixed Maturity Securities Available for Sale | The following table presents the gross unrealized losses and fair values of our fixed maturity securities for which an allowance for credit losses has not been recorded, aggregated by investment type and length of time that individual fixed maturity securities have been in a continuous unrealized loss position, as of March 31, 2025:
| Less than 12 months |  | 12 months or more |  | Total
(Dollar amounts in thousands) | Fair value |  | Gross unrealized losses |  | Number of securities |  | Fair value |  | Gross unrealized losses |  | Number of securities |  | Fair value |  | Gross unrealized losses |  | Number of securities
Fixed maturity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government, agencies and GSEs | $ | 75,658 |  |  | $ | (1,180) |  |  | 12 |  |  | $ | 18,126 |  |  | $ | (255) |  |  | 7 |  |  | $ | 93,784 |  |  | $ | (1,435) |  |  | 19 |
State and political subdivisions | 47,020 |  |  | (2,623) |  |  | 11 |  |  | 392,765 |  |  | (63,302) |  |  | 81 |  |  | 439,785 |  |  | (65,925) |  |  | 92 |
Non-U.S. government | 30,832 |  |  | (467) |  |  | 45 |  |  | 9,776 |  |  | (502) |  |  | 1 |  |  | 40,608 |  |  | (969) |  |  | 46 |
U.S. corporate | 649,982 |  |  | (11,504) |  |  | 177 |  |  | 1,246,554 |  |  | (87,247) |  |  | 232 |  |  | 1,896,536 |  |  | (98,751) |  |  | 409 |
Non-U.S. corporate | 123,572 |  |  | (2,410) |  |  | 52 |  |  | 313,493 |  |  | (20,818) |  |  | 61 |  |  | 437,065 |  |  | (23,228) |  |  | 113 |
Residential mortgage-backed | 75,399 |  |  | (468) |  |  | 26 |  |  | 2,433 |  |  | (14) |  |  | 4 |  |  | 77,832 |  |  | (482) |  |  | 30 |
Other asset-backed | 156,138 |  |  | (919) |  |  | 69 |  |  | 449,391 |  |  | (22,469) |  |  | 116 |  |  | 605,529 |  |  | (23,388) |  |  | 185 |
Total for fixed maturity securities in an unrealized loss position | $ | 1,158,601 |  |  | $ | (19,571) |  |  | 392 |  |  | $ | 2,432,538 |  |  | $ | (194,607) |  |  | 502 |  |  | $ | 3,591,139 |  |  | $ | (214,178) |  |  | 894 |
The following table presents the gross unrealized losses and fair values of our fixed maturity securities, aggregated by investment type and length of time that individual fixed maturity securities have been in a continuous unrealized loss position, as of December 31, 2024:
| Less than 12 months |  | 12 months or more |  | Total
(Dollar amounts in thousands) | Fair value |  | Gross unrealized losses |  | Number of securities |  | Fair value |  | Gross unrealized losses |  | Number of securities |  | Fair value |  | Gross unrealized losses |  | Number of securities
Fixed maturity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government, agencies and GSEs | $ | 157,596 |  |  | $ | (4,704) |  |  | 32 |  |  | $ | 19,998 |  |  | $ | (381) |  |  | 9 |  |  | $ | 177,594 |  |  | $ | (5,085) |  |  | 41 |
State and political subdivisions | 48,280 |  |  | (2,366) |  |  | 17 |  |  | 396,638 |  |  | (73,261) |  |  | 84 |  |  | 444,918 |  |  | (75,627) |  |  | 101 |
Non-U.S. government | 56,631 |  |  | (1,236) |  |  | 76 |  |  | 9,692 |  |  | (622) |  |  | 1 |  |  | 66,323 |  |  | (1,858) |  |  | 77 |
U.S. corporate | 881,643 |  |  | (20,844) |  |  | 265 |  |  | 1,379,860 |  |  | (108,740) |  |  | 264 |  |  | 2,261,503 |  |  | (129,584) |  |  | 529 |
Non-U.S. corporate | 195,648 |  |  | (4,015) |  |  | 102 |  |  | 385,508 |  |  | (26,035) |  |  | 74 |  |  | 581,156 |  |  | (30,050) |  |  | 176 |
Residential mortgage-backed | 3,313 |  |  | (31) |  |  | 3 |  |  | 2,822 |  |  | (26) |  |  | 4 |  |  | 6,135 |  |  | (57) |  |  | 7 |
Other asset-backed | 101,549 |  |  | (1,168) |  |  | 49 |  |  | 527,531 |  |  | (29,011) |  |  | 130 |  |  | 629,080 |  |  | (30,179) |  |  | 179 |
Total for fixed maturity securities in an unrealized loss position | $ | 1,444,660 |  |  | $ | (34,364) |  |  | 544 |  |  | $ | 2,722,049 |  |  | $ | (238,076) |  |  | 566 |  |  | $ | 4,166,709 |  |  | $ | (272,440) |  |  | 1,110 |
The scheduled maturity distribution of fixed maturity securities as of March 31, 2025, is set forth below. Actual maturities may differ from contractual maturities because issuers of securities may have the right to call or prepay obligations with or without call or prepayment penalties.
(Amounts in thousands) | Amortized cost |  | Fair value
Due one year or less | $ | 264,671 |  |  | $ | 263,849 |
Due after one year through five years | 1,709,680 |  |  | 1,646,604 |
Due after five years through ten years | 2,261,321 |  |  | 2,171,249 |
Due after ten years | 471,074 |  |  | 465,758 |
Subtotal | 4,706,746 |  |  | 4,547,460 |
Residential mortgage-backed | 111,660 |  |  | 111,683 |
Commercial mortgage-backed | 20,597 |  |  | 20,702 |
Other asset-backed | 1,153,367 |  |  | 1,135,492 |
Total fixed maturity securities available-for-sale | $ | 5,992,370 |  |  | $ | 5,815,337 |

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