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Investments

9 Months Ended

Sep. 30, 2025

Investments [Abstract]

Investments

Investments

(a) Information regarding our AFS securities as of September 30, 2025 and December 31, 2024, were as follows:

September 30, 2025						Cost/ Amortized Cost						Allowance for Credit Losses						Unrealized Gains						Unrealized Losses						Fair Value
($ in thousands)
AFS fixed income securities:
U.S. government and government agencies						$	158,593					—						134						(15,329)						143,398
Foreign government						10,784						(19)						49						(829)						9,985
Obligations of states and political subdivisions						580,895						(326)						5,977						(25,586)						560,960
Corporate securities						3,366,977						(8,020)						74,035						(73,730)						3,359,262
Collateralized loan obligations ("CLO") and other asset-backed securities ("ABS")						2,495,028						(9,234)						29,936						(36,989)						2,478,741
Residential mortgage-backed securities ("RMBS")						2,060,837						(11,368)						18,184						(68,720)						1,998,933
Commercial mortgage-backed securities ("CMBS")						736,239						(109)						5,272						(17,257)						724,145
Total AFS fixed income securities						$	9,409,353					(29,076)						133,587						(238,440)						9,275,424

December 31, 2024						Cost/ Amortized Cost						Allowance for Credit Losses						Unrealized Gains						Unrealized Losses						Fair Value
($ in thousands)
AFS fixed income securities:
U.S. government and government agencies						$	139,906					—						2						(19,753)						120,155
Foreign government						10,656						(21)						—						(1,333)						9,302
Obligations of states and political subdivisions						483,609						(570)						550						(32,359)						451,230
Corporate securities						3,181,046						(14,924)						25,259						(123,201)						3,068,180
CLO and other ABS						2,065,611						(4,889)						22,116						(49,689)						2,033,149
RMBS						1,812,744						(11,544)						3,880						(112,722)						1,692,358
CMBS						782,506						—						1,478						(31,024)						752,960
Total AFS fixed income securities						$	8,476,078					(31,948)						53,285						(370,081)						8,127,334

The following tables provide a roll forward of the allowance for credit losses on our AFS fixed income securities for the indicated periods:

Quarter ended September 30, 2025						Beginning Balance						Current Provision for Securities without Prior Allowance						Initial Allowance for Purchased Credit Deteriorated Assets with Credit Deterioration						Increase (Decrease) on Securities with Prior Allowance, excluding intent (or Requirement) to Sell Securities						Reductions for Securities Sold						Reductions for Securities Identified as Intent (or Requirement) to Sell during the Period						Ending Balance
($ in thousands)
Foreign government						$	21					—						—						(2)						—						—						19
Obligations of states and political subdivisions						390						13						—						(77)						—						—						326
Corporate securities						9,571						369						—						(1,568)						(352)						—						8,020
CLO and other ABS						7,230						333						1,938						68						(335)						—						9,234
RMBS						11,422						—						—						25						(79)						—						11,368
CMBS						99						—						—						10						—						—						109
Total AFS fixed income securities						$	28,733					715						1,938						(1,544)						(766)						—						29,076

Quarter ended September 30, 2024						Beginning Balance						Current Provision for Securities without Prior Allowance						Initial Allowance for Purchased Credit Deteriorated Assets with Credit Deterioration						Increase (Decrease) on Securities with Prior Allowance, excluding intent (or Requirement) to Sell Securities						Reductions for Securities Sold						Reductions for Securities Identified as Intent (or Requirement) to Sell during the Period						Ending Balance
($ in thousands)
Foreign government						$	26					—						—						(2)						—						—						24
Obligations of states and political subdivisions						639						107						—						(266)						(8)						—						472
Corporate securities						15,950						747						—						(4,231)						(432)						—						12,034
CLO and other ABS						3,022						1,575						—						(49)						(86)						—						4,462
RMBS						11,660						—						—						(63)						(88)						—						11,509
CMBS						12						—						—						(9)						—						—						3
Total AFS fixed income securities						$	31,309					2,429						—						(4,620)						(614)						—						28,504

Nine Months ended September 30, 2025						Beginning Balance						Current Provision for Securities without Prior Allowance						Initial Allowance for Purchased Credit Deteriorated Assets with Credit Deterioration						Increase (Decrease) on Securities with Prior Allowance, excluding intent (or Requirement) to Sell Securities						Reductions for Securities Sold						Reductions for Securities Identified as Intent (or Requirement) to Sell during the Period						Ending Balance
($ in thousands)
Foreign government						$	21					—						—						(2)						—						—						19
Obligations of states and political subdivisions						570						18						—						(156)						(106)						—						326
Corporate securities						14,924						957						—						(6,363)						(1,498)						—						8,020
CLO and other ABS						4,889						2,177						1,938						752						(522)						—						9,234
RMBS						11,544						—						—						163						(339)						—						11,368
CMBS						—						109						—						—						—						—						109
Total AFS fixed income securities						$	31,948					3,261						1,938						(5,606)						(2,465)						—						29,076

Nine Months ended September 30, 2024						Beginning Balance						Current Provision for Securities without Prior Allowance						Initial Allowance for Purchased Credit Deteriorated Assets with Credit Deterioration						Increase (Decrease) on Securities with Prior Allowance, excluding intent (or Requirement) to Sell Securities						Reductions for Securities Sold						Reductions for Securities Identified as Intent (or Requirement) to Sell during the Period						Ending Balance
($ in thousands)
Foreign government						$	35					—						—						(4)						(7)						—						24
Obligations of states and political subdivisions						669						118						—						(299)						(16)						—						472
Corporate securities						12,999						1,325						—						(1,282)						(999)						(9)						12,034
CLO and other ABS						2,854						1,886						—						(188)						(90)						—						4,462
RMBS						11,649						—						—						139						(279)						—						11,509
CMBS						6						—						—						(3)						—						—						3
Total AFS fixed income securities						$	28,212					3,329						—						(1,637)						(1,391)						(9)						28,504

During Nine Months 2025 and Nine Months 2024, we had no write-offs or recoveries of our AFS fixed income securities.

For information on our methodology and significant inputs used to measure expected credit losses, our accounting policy for recognizing write-offs of uncollectible amounts, and our treatment of accrued interest, refer to Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2024 Annual Report. Accrued interest on AFS securities was $84.0 million as of September 30, 2025, and $74.3 million as of December 31, 2024. We did not record any material write-offs of accrued interest in Nine Months 2025 and Nine Months 2024.

(b) Quantitative information about unrealized losses on our AFS portfolio follows:

September 30, 2025						Less than 12 months												12 months or longer												Total
($ in thousands)						Fair Value						Unrealized Losses						Fair Value						Unrealized Losses						Fair Value						Unrealized Losses
AFS fixed income securities:
U.S. government and government agencies						$	14,800					(200)						110,360						(15,129)						125,160						(15,329)
Foreign government						—						—						9,040						(829)						9,040						(829)
Obligations of states and political subdivisions						70,170						(1,158)						225,951						(24,428)						296,121						(25,586)
Corporate securities						186,603						(3,200)						841,224						(70,530)						1,027,827						(73,730)
CLO and other ABS						312,803						(6,383)						491,315						(30,606)						804,118						(36,989)
RMBS						284,520						(2,875)						710,469						(65,845)						994,989						(68,720)
CMBS						46,613						(1,476)						326,468						(15,781)						373,081						(17,257)
Total AFS fixed income securities						$	915,509					(15,292)						2,714,827						(223,148)						3,630,336						(238,440)

December 31, 2024						Less than 12 months												12 months or longer												Total
($ in thousands)						Fair Value						Unrealized Losses						Fair Value						Unrealized Losses						Fair Value						Unrealized Losses
AFS fixed income securities:
U.S. government and government agencies						$	14,708					(70)						105,326						(19,683)						120,034						(19,753)
Foreign government						—						—						9,302						(1,333)						9,302						(1,333)
Obligations of states and political subdivisions						153,996						(3,539)						247,735						(28,820)						401,731						(32,359)
Corporate securities						684,999						(11,699)						1,083,392						(111,502)						1,768,391						(123,201)
CLO and other ABS						349,786						(6,296)						601,057						(43,393)						950,843						(49,689)
RMBS						714,061						(21,206)						677,574						(91,516)						1,391,635						(112,722)
CMBS						184,394						(2,870)						417,472						(28,154)						601,866						(31,024)
Total AFS fixed income securities						$	2,101,944					(45,680)						3,141,858						(324,401)						5,243,802						(370,081)

We currently do not intend to sell any of the securities summarized in the tables above, nor do we believe we will be required to sell any of them. The decrease in gross unrealized losses at September 30, 2025, compared to December 31, 2024, was primarily driven by a decrease in benchmark U.S. Treasury rates. Considering these factors and our review of these securities under our credit loss policy as described in Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2024 Annual Report, we have concluded that no additional allowance for credit loss is required on these balances beyond the allowance for credit loss recorded as of September 30, 2025. This conclusion reflects our current judgment about the financial position and future prospects of the entities that issued the investment security and underlying collateral.

(c) AFS and held-to-maturity ("HTM") fixed income securities at September 30, 2025, by contractual maturity are shown below. The maturities of RMBS, CMBS, CLO and other ABS securities were calculated using each security's expected maturities. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

						AFS						HTM
($ in thousands)						Fair Value						Carrying Value						Fair Value
Due in one year or less						$	560,606					68						68
Due after one year through five years						3,627,688						15,840						15,649
Due after five years through 10 years						3,922,594						8,335						8,537
Due after 10 years						1,164,536						—						—
Total fixed income securities						$	9,275,424					24,243						24,254

(d) The following table summarizes our alternative investment portfolio by strategy:

						September 30, 2025																		December 31, 2024
($ in thousands)						Carrying Value						Remaining Commitment						Maximum Exposure to Loss						Carrying Value						Remaining Commitment						Maximum Exposure to Loss
Alternative Investments
Private equity						$	334,659					161,065						495,724						346,020						182,355						528,375
Private credit						36,928						134,693						171,621						52,100						99,185						151,285
Real assets						45,479						50,352						95,831						42,776						38,950						81,726
Total alternative investments						$	417,066					346,110						763,176						440,896						320,490						761,386

We are contractually committed to make additional investments up to the remaining commitments stated above. We did not provide any non-contractual financial support during 2025 or 2024.

The following table shows gross summarized financial information for our alternative investments portfolio, including the portion we do not own. As the majority of these investments report results to us on a one-quarter lag, the summarized financial statement information is for the 3- and 9-month periods ended June 30:

Income Statement Information						Quarter ended September 30,												Nine Months ended September 30,
($ in millions)						2025						2024						2025						2024
Net investment income (loss)						$	(192.1)					230.6						$	460.0					127.0
Realized gains						4,429.6						1,878.3						5,992.2						5,263.4
Net change in unrealized appreciation (depreciation)						(1,919.7)						607.7						935.7						7,277.0
Net income						$	2,317.8					2,716.6						$	7,387.9					12,667.4
Alternative investment income included in "Net investment income earned" on our Consolidated Statements of Income						$	11.8					9.0						$	22.9					26.4

(e) We have pledged certain AFS fixed income securities as collateral related to our borrowing relationships with the Federal Home Loan Bank of Indianapolis ("FHLBI") and the Federal Home Loan Bank of New York ("FHLBNY"). We also had certain securities on deposit with various state and regulatory agencies at September 30, 2025, to comply with insurance laws. We retain all rights regarding all securities pledged as collateral.

The following table summarizes the market value of these securities at September 30, 2025:

($ in millions)						FHLBI Collateral						FHLBNY Collateral												State and Regulatory Deposits						Total
U.S. government and government agencies						$	—					—												24.5						24.5
Obligations of states and political subdivisions						—						—												1.8						1.8
RMBS						65.4						20.4												0.5						86.3
CMBS						—						6.1												—						6.1
Total pledged as collateral						$	65.4					26.5												26.8						118.7

(f) We did not have exposure to any credit concentration risk of a single issuer greater than 10% of our stockholders' equity, other than to certain U.S. government agencies, as of September 30, 2025, or December 31, 2024.

(g) The components of pre-tax net investment income earned were as follows:

						Quarter ended September 30,												Nine Months ended September 30,
($ in thousands)						2025						2024						2025						2024
Fixed income securities						$	117,242					98,464						$	338,057					286,501
CMLs						3,999						3,238						11,375						9,177
Equity securities						5,164						5,362						13,639						12,147
Short-term investments						5,712						6,457						17,212						14,656
Alternative investments						11,769						9,031						22,852						26,429
Other investments						171						251						565						632
Investment expenses						(5,402)						(5,044)						(16,386)						(15,292)
Net investment income earned						$	138,655					117,759						$	387,314					334,250

The increase in net investment income earned in Third Quarter 2025 and Nine Months 2025 compared to the same prior-year periods was primarily driven by active portfolio management, operating cash flow deployment, and net proceeds from the issuance of our 5.90% Senior Notes in the first quarter of 2025. For additional information regarding our 5.90% Senior Notes issuance, see Note 12. "Indebtedness" in Item 1. "Financial Statements" of this Form 10-Q.

(h) The following table summarizes net realized and unrealized investment gains and losses for the periods indicated:

						Quarter ended September 30,												Nine Months ended September 30,
($ in thousands)						2025						2024						2025						2024
Gross gains on sales						$	8,311					4,159						$	12,192					10,681
Gross losses on sales						(8,886)						(2,012)						(13,663)						(5,228)
Net realized gains (losses) on disposals						(575)						2,147						(1,471)						5,453
Net unrealized gains (losses) on equity securities						7,802						2,407						12,492						3,006
Net credit loss benefit (expense) on fixed income securities, AFS						829						2,191						2,345						(1,692)
Net credit loss benefit (expense) on CMLs						1						(2)						(149)						134
Losses on securities for which we have the intent to sell						—						(752)						(759)						(1,248)
Other realized gains (losses)						—						(602)						—						(602)
Net realized and unrealized investment gains (losses)						$	8,057					5,389						$	12,458					5,051

Net unrealized gains and losses recognized in income on equity securities, as reflected in the table above, included the following:

						Quarter ended September 30,												Nine Months ended September 30,
($ in thousands)						2025						2024						2025						2024
Unrealized gains (losses) recognized in income on equity securities:
On securities remaining in our portfolio at end of period						$	7,802					1,997						$	11,341					4,904
On securities sold in period						—						410						1,151						(1,898)
Total unrealized gains (losses) recognized in income on equity securities						$	7,802					2,407						$	12,492					3,006

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The entire disclosure for investments in certain debt and equity securities.

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