XML 25 R12.htm IDEA: XBRL DOCUMENT v3.24.2
Derivative Financial Instruments
 6 Months Ended
Jun. 30, 2024
General Discussion of Derivative Instruments and Hedging Activities [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
The Company is exposed to certain risks relating to its ongoing business operations. The primary risk managed by using derivative instruments is equity price risk. Equity contracts (options sold) on various equity securities are intended to manage the price risk associated with forecasted purchases or sales of such securities. From time to time, the Company also enters into derivative contracts to enhance returns on its investment portfolio.
The following tables present the location and amounts of derivative fair values in the consolidated balance sheets and derivative gains or losses in the consolidated statements of operations:
 Derivatives
June 30, 2024December 31, 2023
 (Amount in thousands)
Options sold - Other liabilities$663 $1,955 
Total $663 $1,955 
 Gains Recognized in Net Income (Loss)
 Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
 (Amounts in thousands)
Options sold - Net realized investment gains (losses)$4,229 $1,596 $8,545 $2,824 
Total$4,229 $1,596 $8,545 $2,824 

Most options sold consist of covered calls. The Company writes covered calls on underlying equity positions held as an enhanced income strategy that is permitted for the Company’s insurance subsidiaries under statutory regulations. The Company manages the risk associated with covered calls through strict capital limitations and asset diversification throughout various industries. See Note 5. Fair Value Measurements for additional disclosures regarding options sold.