Note 2 - Investments

9 Months Ended

Sep. 30, 2025

Investments, Debt and Equity Securities [Abstract]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

2. Investments

The Company’s available‑for‑sale investments are summarized as follows:


	Amortized		Gross		Gross			Allowance for
	Cost or		Unrealized		Unrealized			Credit		Fair
September 30, 2025	Cost		Gains		Losses			Losses		Value
	(in thousands)
Fixed maturities:
U.S. Governments	$	24,831	$	85	$	(279	)	$	—	$	24,637
U.S. States, Territories, and Political Subdivisions		19,789		104		(1,178	)		—		18,715
Special revenue excluding mortgage/asset-backed securities		19,292		36		(2,125	)		—		17,203
Corporate and other		601,329		10,080		(8,526	)		—		602,883
Mortgage/asset-backed securities		481,614		5,212		(8,897	)		—		477,929
Total available-for-sale investments	$	1,146,855	$	15,517	$	(21,005	)	$	—	$	1,141,367


	Amortized		Gross		Gross			Allowance for
	Cost or		Unrealized		Unrealized			Credit			Fair
December 31, 2024	Cost		Gains		Losses			Losses			Value
	(in thousands)
Fixed maturities:
U.S. Governments	$	33,449	$	6	$	(649	)	$	—		$	32,806
U.S. States, Territories, and Political Subdivisions		10,606		29		(857	)		—			9,778
Special revenue excluding mortgage/asset-backed securities		30,283		85		(3,734	)		—			26,634
Corporate and other		492,395		1,689		(18,349	)		(244	)		475,491
Mortgage/asset-backed securities		406,597		1,408		(13,668	)		—			394,337
Total available-for-sale investments	$	973,330	$	3,217	$	(37,257	)	$	(244	)	$	939,046

Security holdings in an unrealized loss position

As of September 30, 2025, the Company held 390 fixed maturity securities in an unrealized loss position with a total estimated fair value of $368.8 million and total gross unrealized losses of $21.0 million. As of December 31, 2024, the Company held 595 fixed maturity securities in an unrealized loss position with a total estimated fair value of $664.0 million and total gross unrealized losses of $37.3 million.

The aggregate fair value and gross unrealized losses of the Company’s investments aggregated by investment category and the length of time these individual securities have been in a continuous unrealized loss position as of September 30, 2025 and December 31, 2024, are as follows:


	Less Than 12 Months					More Than 12 Months					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
September 30, 2025	Value		Losses			Value		Losses			Value		Losses
	(in thousands)
Fixed maturity securities:
U.S. Governments	$	1,600	$	(45	)	$	8,161	$	(234	)	$	9,761	$	(279	)
U.S. States, Territories, and Political Subdivisions		5,181		(541	)		9,342		(637	)		14,523		(1,178	)
Special revenue excluding mortgage/asset-backed securities		230		(7	)		14,939		(2,118	)		15,169		(2,125	)
Corporate and other		61,100		(1,392	)		143,594		(7,134	)		204,694		(8,526	)
Mortgage/asset-backed securities		35,994		(497	)		88,658		(8,400	)		124,652		(8,897	)
Total available-for-sale investments	$	104,105	$	(2,482	)	$	264,694	$	(18,523	)	$	368,799	$	(21,005	)


	Less Than 12 Months					More Than 12 Months					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
December 31, 2024	Value		Losses			Value		Losses			Value		Losses
	(in thousands)
Fixed maturity securities:
U.S. Governments	$	16,507	$	(65	)	$	14,291	$	(584	)	$	30,798	$	(649	)
U.S. States, Territories, and Political Subdivisions		2,614		(419	)		5,076		(438	)		7,690		(857	)
Special revenue excluding mortgage/asset-backed securities		2,182		(426	)		21,733		(3,308	)		23,915		(3,734	)
Corporate and other		181,179		(4,996	)		176,531		(13,353	)		357,710		(18,349	)
Mortgage/asset-backed securities		152,287		(2,820	)		91,572		(10,848	)		243,859		(13,668	)
Total available-for-sale investments	$	354,769	$	(8,726	)	$	309,203	$	(28,531	)	$	663,972	$	(37,257	)

The Company reviews all securities with unrealized losses on a quarterly basis to assess whether the decline in the securities fair value necessitates the recognition of an allowance for credit losses. The Company considers numerous factors in its review as described in Note 1 of the Notes to the Consolidated Financial Statements in the 2024 Annual Report on Form 10-K.

Based on the Company’s review as of September 30, 2025, the Company determined that the fixed maturity securities’ unrealized losses were primarily the result of the interest rate environment and not the credit quality of the issuers. The Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before the recovery of their amortized cost basis.

Contractual maturities of available‑for‑sale fixed maturity securities

The amortized cost and fair value of fixed maturity securities at September 30, 2025, by contractual maturity, are shown below.


	Amortized		Fair
	Cost		Value
	(in thousands)
Due within one year	$	71,849	$	71,977
Due after one year through five years		260,401		260,035
Due after five years through ten years		226,631		228,747
Due after ten years		106,360		102,679
Mortgage and asset-backed securities		481,614		477,929
	$	1,146,855	$	1,141,367

Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations.

Net investment income summary

Net investment income is summarized as follows:


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2025			2024			2025			2024
	(in thousands)						(in thousands)
Interest income	$	14,515		$	9,365		$	39,824		$	24,317
Dividend income		298			220			857			675
Investment expense		(241	)		(177	)		(667	)		(486	)
Net investment income	$	14,572		$	9,408		$	40,014		$	24,506

Net realized and unrealized investment gains and losses

The following table presents net realized and unrealized investment gains and losses:


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2025			2024			2025			2024
	(in thousands)						(in thousands)
Realized gains:
Gains on sales of fixed maturity securities	$	29		$	42		$	463		$	59
Gains on sales of equity securities		—			—			234			—
Total realized gains		29			42			697			59
Realized losses:
Losses on sales of fixed maturity securities		(25	)		(328	)		(783	)		(330	)
Losses on sales of equity securities		—			—			(235	)		(1,204	)
Total realized losses		(25	)		(328	)		(1,018	)		(1,534	)
Net realized investment gains (losses)		4			(286	)		(321	)		(1,475	)
Change in allowance for credit losses		—			327			244			—
Net unrealized gains on equity securities		2,862			2,434			6,190			7,052
Net unrealized gains (losses) on equity method investment		—			148			2,268			(118	)
Net unrealized gains on other investments		627			111			1,080			309
Net realized and unrealized gains on investments	$	3,493		$	2,734		$	9,461		$	5,768

Realized gains and losses on disposition of investments are based on specific identification of the investments sold on the settlement date.

Proceeds from the sale of fixed maturity securities were $10.7 million and $3.2 million for the three months ended September 30, 2025 and 2024, respectively. Proceeds from the sale of equity securities were immaterial for the three months ended September 30, 2025 and 2024.

Proceeds from the sale of fixed maturity securities were $19.5 million and $5.4 million for the nine months ended September 30, 2025 and 2024, respectively. Proceeds from the sale of equity securities were $6.4 million and immaterial for the nine months ended September 30, 2025 and 2024, respectively.

The Company places securities on statutory deposit with certain state agencies to retain the right to do business in those states. These securities are included in available‑for‑sale investments on the balance sheet. As of September 30, 2025 and December 31, 2024, the carrying value of securities on deposit with state regulatory authorities was $13.8 million and $9.9 million, respectively.

The Company has investments in limited partnerships, recorded in the Other investments line of the Unaudited Condensed Consolidated Balance Sheets. These investments represent capital contributions to private equity funds structured as limited partnerships, which primarily hold illiquid securities. The funds have a ten-year term with no redemption rights. Capital is contributed as called by the general partners, and distributions are received as proceeds are generated from the underlying investments. These investments are measured at estimated fair value utilizing a net asset value per share (or its equivalent) as a practical expedient. As of September 30, 2025, the Company had unfunded commitments to invest an additional $102.3 million in these limited partnerships.

In addition, Other investments include derivative instruments, such as a livestock put option designated as a cash flow hedge. The purpose of this hedge is to manage the Company’s exposure to the variability in future cash flows attributable to livestock price fluctuations associated with its Crop insurance products. The derivative instruments are recorded at fair value, with changes in the intrinsic value recognized in other comprehensive income and the excluded time value recognized directly in earnings over the life of the hedging instrument. As such, derivative instruments are not included within the Net realized and unrealized gains and losses table above, and realized gains and losses are recognized within Losses and loss adjustment expenses in the Condensed Consolidated Statements of Income and Comprehensive Income. The fair value of this derivative instrument was approximately $4.4 million as of September 30, 2025. The impact of this derivative activity was immaterial to the Company’s condensed consolidated financial statements for the three and nine months ended September 30, 2025.