Fixed-Maturity Securities Available-For-Sale

9 Months Ended

Sep. 30, 2025

Debt Securities, Available-for-Sale [Abstract]

Fixed-Maturity Securities Available-For-Sale

The amortized cost, gross unrealized gains and losses, and estimated fair value of investments in fixed-maturity securities available-for-sale at September 30, 2025 and December 31, 2024, are as follows:


	September 30, 2025
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
U.S. government and agencies	$	145,066	$	1,941	$	(14	)	$	146,993
States, municipalities and political subdivisions		166,703		3,423		(144	)	$	169,982
Corporate Bonds		129,982		3,823		(7	)	$	133,798
Asset-Backed Securities		23,703		145		(18	)	$	23,830
	$	465,454	$	9,332	$	(183	)	$	474,603


	December 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
U.S. government and agencies	$	166,641	$	418	$	(776	)	$	166,283
U.S. states, territories and possessions		17,344		71		(193	)		17,222
Industrial and miscellaneous		149,104		1,350		(429	)		150,025
Special Revenue		106,681		527		(622	)		106,586
Political subdivisions		23,061		187		(151	)		23,097
Hybrid securities		1,754		—		(1	)		1,753
	$	464,585	$	2,553	$	(2,172	)	$	464,966

The amortized cost and estimated fair value of investments in fixed-maturity securities at September 30, 2025 and December 31, 2024, by contractual maturity, are shown below.


	September 30, 2025				December 31, 2024
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
In one year or less	$	41,456	$	41,609	$	56,574	$	56,666
After one year through five years		273,751		279,568		286,584		287,703
After five years through 10 years		122,082		125,209		112,702		112,117
After 10 years		28,165		28,217		8,725		8,480
	$	465,454	$	474,603	$	464,585	$	464,966

Actual maturities may differ from contractual maturities, as the issuers of the securities may have the right to call or prepay obligations with or without penalty.

The following tables show the Company’s investments estimated fair value and gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2025.


	September 30, 2025
	Less than 12 months					More than 12 months					Total
	Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses
U.S. government and agencies	$	2,030	$	—		$	1,724	$	(14	)	$	3,754	$	(14	)
States, municipalities and political subdivisions		10,011		(102	)		2,436		(42	)		12,447		(144	)
Corporate Bonds		445		(1	)		1,984		(6	)		2,429		(7	)
Asset-Backed Securities		15,909		(18	)		—		—			15,909		(18	)
	$	28,395	$	(121	)	$	6,144	$	(62	)	$	34,539	$	(183	)

A total of 29 securities had unrealized losses at September 30, 2025. The Company’s unrealized losses relate to its portfolio of fixed-maturity securities. The Company’s unrealized losses on its fixed maturity securities were caused by interest rate changes. The Company regularly reviews its individual investment securities for credit impairment. The Company considers various factors in determining whether a credit loss exists for each individual security, including:

•

the financial condition and near-term prospects of the issuer, including any specific events that may affect its operations or earnings;

•

the extent to which the market value of the security has been below its cost or amortized cost;

•

general market conditions and industry or sector specific factors and other qualitative factors;

•

nonpayment by the issuer of its contractually obligated interest and principal payments; and

•

the Company’s intent and ability to hold the investment for a period of time sufficient to allow for the recovery of costs.

For the nine months ended September 30, 2025, the Company recognized $0 credit loss expense related to fixed-maturity securities in the consolidated statements of income.


	December 31, 2024
	Less than 12 months					More than 12 months					Total
	Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses
U.S. government and agencies	$	93,063	$	(729	)	$	2,975	$	(47	)	$	96,038	$	(776	)
U.S. states, territories and possessions		9,169		(193	)		502		—			9,671		(193	)
Industrial and miscellaneous		69,745		(389	)		3,417		(40	)		73,162		(429	)
Special revenue		43,829		(604	)		2,693		(17	)		46,522		(621	)
Political subdivisions		4,477		(151	)		503		(1	)		4,980		(152	)
Hybrid securities		1,754		(1	)		—		—			1,754		(1	)
	$	222,037	$	(2,067	)	$	10,090	$	(105	)	$	232,127	$	(2,172	)

A total of 125 securities had unrealized losses at December 31, 2024. The Company’s unrealized losses relate to its portfolio of fixed-maturity securities. The Company’s unrealized losses on its fixed-maturity securities were caused by interest rate changes. The Company regularly reviews its individual investment securities for credit impairment. The Company considers various factors in determining whether a credit loss exists for each individual security, including:

•

the financial condition and near-term prospects of the issuer, including any specific events that may affect its operations or earnings;

•

the extent to which the market value of the security has been below its cost or amortized cost;

•

general market conditions and industry or sector specific factors and other qualitative factors;

•

nonpayment by the issuer of its contractually obligated interest and principal payments; and

•

the Company’s intent and ability to hold the investment for a period of time sufficient to allow for the recovery of costs.

For the year ended December 31, 2024, the Company recognized $0 credit loss expense related to fixed-maturity securities in the consolidated statements of income.

Proceeds from maturities, and redemptions of fixed-maturities securities were $75,745 and $25,059 for the nine months ended September 30, 2025 and 2024, respectively, with realized gross gains of $6 and $8 on these sales, maturities, and redemptions respectively.

At September 30, 2025 and December 31, 2024, the Company had restricted cash of $540,634 and $296,433, respectively, consisting of funds on deposit with regulatory authorities, as required by law and funds held in trust by the VIE where the Company is the primary beneficiary.

Major categories of net investment income, excluding realized gains, are summarized as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Income:
Available-for-sale fixed-maturity securities	$	5,666	$	5,346	$	16,551	$	13,988
Cash and cash equivalents		13,542	$	7,513		31,704		20,629
Other investments		106	$	134		339		432
Total investment income	$	19,314	$	12,993	$	48,594	$	35,049
Investment expenses		221	$	207		653		549
Net investment income	$	19,093	$	12,786	$	47,941	$	34,500