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Investments | 9 Months Ended
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Sep. 30, 2025
Investments, Debt and Equity Securities [Abstract] |
Investments | Investments We hold all investments on an available-for-sale basis at fair value on our condensed consolidated balance sheets and evaluate each position quarterly for impairment. We recognize an impairment on a security through the statement of operations if (i) we intend to sell the impaired security; or (ii) it is more likely than not that we will be required to sell the impaired security prior to recovery of its amortized cost basis. If a sale is intended or likely to be required, we recognize an impairment loss equivalent to the difference of the amortized cost basis of the security and its fair value through the condensed consolidated statements of operations and comprehensive income as a “Net Realized Investment Loss.” In the event of an impairment of a security that we intend to and have the ability to hold to maturity, we evaluate the drivers of the impairment to determine the portion that is credit related and the portion that is non-credit related. The portion of impairment loss that is attributed to credit related factors is recognized through the statement of operations as a provision for credit loss and the portion that is attributed to non-credit related factors is recognized in other comprehensive income, net of taxes. Fair Values and Gross Unrealized Gains and Losses on Investments
| Amortized Cost |  | Gross Unrealized |  | Fair Value
|  | Gains |  | Losses |
As of September 30, 2025 | (In Thousands)
U.S. Treasury securities and obligations of U.S. government agencies | $ | 100,950 |  |  | $ | 2,710 |  |  | $ | (165) |  |  | $ | 103,495 |
Municipal debt securities | 658,725 |  |  | 2,603 |  |  | (30,964) |  |  | 630,364 |
Corporate debt securities | 2,148,007 |  |  | 27,454 |  |  | (61,582) |  |  | 2,113,879 |
Asset-backed securities | 52,559 |  |  | — |  |  | (2,796) |  |  | 49,763 |
Total bonds | 2,960,241 |  |  | 32,767 |  |  | (95,507) |  |  | 2,897,501 |
Short-term investments | 118,053 |  |  | 8 |  |  | (2) |  |  | 118,059 |
Total investments | $ | 3,078,294 |  |  | $ | 32,775 |  |  | $ | (95,509) |  |  | $ | 3,015,560 |
| Amortized Cost |  | Gross Unrealized |  | Fair Value
|  | Gains |  | Losses |
As of December 31, 2024 | (In Thousands)
U.S. Treasury securities and obligations of U.S. government agencies | $ | 115,342 |  |  | $ | 1,207 |  |  | $ | (489) |  |  | $ | 116,060 |
Municipal debt securities | 684,523 |  |  | 589 |  |  | (49,867) |  |  | 635,245 |
Corporate debt securities | 1,949,800 |  |  | 3,981 |  |  | (106,141) |  |  | 1,847,640 |
Asset-backed securities | 44,104 |  |  | 1 |  |  | (2,125) |  |  | 41,980 |
Total bonds | 2,793,769 |  |  | 5,778 |  |  | (158,622) |  |  | 2,640,925 |
Short-term investments | 82,574 |  |  | 42 |  |  | — |  |  | 82,616 |
Total investments | $ | 2,876,343 |  |  | $ | 5,820 |  |  | $ | (158,622) |  |  | $ | 2,723,541 |
We did not own any mortgage-backed securities in our asset-backed securities portfolio at September 30, 2025 or December 31, 2024. The following table presents a breakdown of the fair value of our corporate debt securities by issuer industry group as of September 30, 2025 and December 31, 2024:
| September 30, 2025 |  | December 31, 2024
Financial | 39 | % |  | 40 | %
Consumer | 28 |  |  | 26 |
Utilities | 11 |  |  | 11 |
Industrial | 9 |  |  | 9 |
Communications | 6 |  |  | 7 |
Technology | 6 |  |  | 7 |
Basic materials | 1 |  |  | — |
Total | 100 | % |  | 100 | %
As of September 30, 2025 and December 31, 2024, approximately $5.4 million and $5.3 million, respectively, of our cash and investments were held in the form of U.S. Treasury securities on deposit with various state insurance departments to satisfy regulatory requirements. Scheduled Maturities The amortized cost and fair value of available-for-sale securities as of September 30, 2025 and December 31, 2024, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Because most asset-backed securities provide for periodic payments throughout their lives, they are listed below in a separate category.
As of September 30, 2025 | Amortized Cost |  | Fair Value
| (In Thousands)
Due in one year or less | $ | 327,073 |  |  | $ | 325,628 |
Due after one through five years | 1,767,053 |  |  | 1,721,568 |
Due after five through ten years | 924,819 |  |  | 911,763 |
Due after ten years | 6,790 |  |  | 6,838 |
Asset-backed securities | 52,559 |  |  | 49,763 |
Total investments | $ | 3,078,294 |  |  | $ | 3,015,560 |
As of December 31, 2024 | Amortized Cost |  | Fair Value
| (In Thousands)
Due in one year or less | $ | 261,492 |  |  | $ | 260,132 |
Due after one through five years | 1,549,468 |  |  | 1,479,220 |
Due after five through ten years | 995,717 |  |  | 916,885 |
Due after ten years | 25,562 |  |  | 25,324 |
Asset-backed securities | 44,104 |  |  | 41,980 |
Total investments | $ | 2,876,343 |  |  | $ | 2,723,541 |
Aging of Unrealized Losses As of September 30, 2025, the investment portfolio had gross unrealized losses of $95.5 million, of which $95.1 million were associated with securities that had been in an unrealized loss position for a period of twelve months or longer. As of December 31, 2024, the investment portfolio had gross unrealized losses of $158.6 million, of which $150.8 million were associated with securities that had been in an unrealized loss position for a period of twelve months or longer. For those securities in an unrealized loss position, the length of time the securities were in such a position is as follows:
| Less Than Twelve Months |  | Twelve Months or Greater |  | Total
| # of Securities | Fair Value | Unrealized Losses |  | # of Securities | Fair Value | Unrealized Losses |  | # of Securities | Fair Value | Unrealized Losses
As of September 30, 2025 |  | ($ In Thousands)
U.S. Treasury securities and obligations of U.S. government agencies | 1 |  | $ | 125 |  | * |  | 7 |  | $ | 10,819 |  | $ | (165) |  |  | 8 |  | $ | 10,944 |  | $ | (165) |
Municipal debt securities | 1 |  | 893 |  | (3) |  |  | 221 |  | 478,460 |  | (30,961) |  |  | 222 |  | 479,353 |  | (30,964) |
Corporate debt securities | 15 |  | 64,253 |  | (378) |  |  | 170 |  | 866,782 |  | (61,204) |  |  | 185 |  | 931,035 |  | (61,582) |
Asset-backed securities | 3 |  | 13,133 |  | (37) |  |  | 16 |  | 36,630 |  | (2,759) |  |  | 19 |  | 49,763 |  | (2,796) |
Short-term investments | 3 |  | 31,149 |  | (2) |  |  | — |  | — |  | — |  |  | 3 |  | 31,149 |  | (2) |
Total | 23 |  | $ | 109,553 |  | $ | (420) |  |  | 414 |  | $ | 1,392,691 |  | $ | (95,089) |  |  | 437 |  | $ | 1,502,244 |  | $ | (95,509) |
| Less Than Twelve Months |  | Twelve Months or Greater |  | Total
| # of Securities | Fair Value | Unrealized Losses |  | # of Securities | Fair Value | Unrealized Losses |  | # of Securities | Fair Value | Unrealized Losses
As of December 31, 2024 |  | ($ In Thousands)
U.S. Treasury securities and obligations of U.S. government agencies | 4 |  | $ | 8,002 |  | $ | (98) |  |  | 9 |  | $ | 11,510 |  | $ | (391) |  |  | 13 |  | $ | 19,512 |  | $ | (489) |
Municipal debt securities | 25 |  | 110,648 |  | (1,928) |  |  | 220 |  | 471,770 |  | (47,939) |  |  | 245 |  | 582,418 |  | (49,867) |
Corporate debt securities | 68 |  | 366,113 |  | (5,822) |  |  | 226 |  | 1,053,862 |  | (100,319) |  |  | 294 |  | 1,419,975 |  | (106,141) |
Asset-backed securities | — |  | — |  | — |  |  | 19 |  | 41,559 |  | (2,125) |  |  | 19 |  | 41,559 |  | (2,125) |
Short-term investments | 1 |  | 1,551 |  | * |  | — |  | — |  | — |  |  | 1 |  | 1,551 |  | *
Total | 98 |  | $ | 486,314 |  | $ | (7,848) |  |  | 474 |  | $ | 1,578,701 |  | $ | (150,774) |  |  | 572 |  | $ | 2,065,015 |  | $ | (158,622) |
* Amounts not identifiable due to rounding. Allowance for Credit Losses As of September 30, 2025 and December 31, 2024, we did not recognize an allowance for credit loss for any security in the investment portfolio and we did not record any provision for credit loss for investment securities during the three or nine months ended September 30, 2025 or 2024. We evaluated the securities in an unrealized loss position as of September 30, 2025, assessing their credit ratings as well as any adverse conditions specifically related to the security. Based upon our assessment of the amount and timing of cash flows to be collected over the remaining life of each instrument, we believe the unrealized losses as of September 30, 2025 are not indicative of the ultimate collectability of the current amortized cost of the securities. Rather, the unrealized losses on securities held as of September 30, 2025 were primarily driven by fluctuations in interest rates, and to a lesser extent, movements in credit spreads following the purchase of those securities. Net Investment Income The following table presents the components of net investment income:
| For the three months ended September 30, |  | For the nine months ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
| (In Thousands)
Investment income (1) | $ | 27,127 |  |  | $ | 22,772 |  |  | $ | 76,425 |  |  | $ | 63,423 |
Investment expenses | (354) |  |  | (298) |  |  | (1,017) |  |  | (825) |
Net investment income | $ | 26,773 |  |  | $ | 22,474 |  |  | $ | 75,408 |  |  | $ | 62,598 |
(1) Includes interest income recognized on cash and cash equivalents of $0.9 million and $2.9 million during the three and nine months ended September 30, 2025, respectively, and $1.3 million and $4.2 million during the three and nine months ended September 30, 2024, respectively. The following table presents the components of net realized investment gains (losses):
| For the three months ended September 30, |  | For the nine months ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
| (In Thousands)
Gross realized investment gains | $ | 390 |  |  | $ | — |  |  | $ | 414 |  |  | $ | — |
Gross realized investment losses | (69) |  |  | (10) |  |  | (469) |  |  | (10) |
Net realized investment gains (losses) | $ | 321 |  |  | $ | (10) |  |  | $ | (55) |  |  | $ | (10) |

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