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v3.25.2

INVESTMENTS (Tables) | 6 Months Ended
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Jun. 30, 2025
Investments, Debt and Equity Securities [Abstract] |
Schedule of AFS Debt Securities | The amortized cost and fair value of short-term investments and available-for-sale fixed maturity securities at June 30, 2025 and December 31, 2024 are as follows:
| June 30, 2025
| Amortized Cost |  | Allowance for Expected Credit Losses |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
| (dollars in millions)
Fixed maturities: |  |  |  |  |  |  |  |  |
U.S. Treasury securities | $ | 47.4 |  |  | $ | — |  |  | $ | 0.7 |  |  | $ | (0.1) |  |  | $ | 48.0 |
Municipal securities | 22.3 |  |  | — |  |  | 0.2 |  |  | (0.2) |  |  | 22.3 |
Corporate debt securities | 121.7 |  |  | — |  |  | 1.3 |  |  | (0.4) |  |  | 122.6 |
Asset-backed securities | 125.5 |  |  | — |  |  | 1.1 |  |  | (0.3) |  |  | 126.3 |
Total fixed maturities | 316.9 |  |  | — |  |  | 3.3 |  |  | (1.0) |  |  | 319.2 |
Short-term investments | 3.5 |  |  | — |  |  | — |  |  | — |  |  | 3.5 |
Total | $ | 320.4 |  |  | $ | — |  |  | $ | 3.3 |  |  | $ | (1.0) |  |  | $ | 322.7 |
| December 31, 2024
| Amortized Cost |  | Allowance for Expected Credit Losses |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
| (dollars in millions)
Fixed maturities: |  |  |  |  |  |  |  |  |
U.S. Treasury securities and agencies | $ | 46.5 |  |  | $ | — |  |  | $ | — |  |  | $ | (0.3) |  |  | $ | 46.2 |
Municipal securities | 23.9 |  |  | — |  |  | 0.1 |  |  | (0.5) |  |  | 23.5 |
Corporate debt securities | 106.6 |  |  | — |  |  | 0.3 |  |  | (1.2) |  |  | 105.7 |
Asset-backed securities | 117.3 |  |  | — |  |  | 0.4 |  |  | (1.1) |  |  | 116.6 |
Total fixed maturities | 294.3 |  | — |  |  | 0.8 |  | (3.1) |  | 292.0
Short-term investments | 14.8 |  | — |  |  | — |  |  | — |  |  | 14.8
Total | $ | 309.1 |  |  | $ | — |  |  | $ | 0.8 |  |  | $ | (3.1) |  |  | $ | 306.8 |
The following table sets forth the amortized cost and fair value of short-term investments and available-for-sale fixed maturity securities by contractual maturity at June 30, 2025:
| June 30, 2025 |  |  |  |
| Amortized Cost |  | Fair Value |  |  |  |
| (dollars in millions) |  |  |  |
Due in one year or less | $ | 32.0 |  |  | $ | 31.9 |  |  |  |  |
Due after one year through five years | 213.6 |  |  | 215.4 |  |  |  |  |
Due five years through 10 years | 36.8 |  |  | 37.3 |  |  |  |  |
Due after 10 years | 38.0 |  |  | 38.1 |  |  |  |  |
Total | $ | 320.4 |  |  | $ | 322.7 |  |  |  |  |
Schedule of Unrealized Losses | The following tables reflect the gross unrealized losses and fair value of short-term investments and available-for-sale fixed maturity securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2025 and December 31, 2024:
| June 30, 2025
| Less than 12 Months |  | 12 Months or More |  | Total
| Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss
| (dollars in millions)
Fixed maturities: |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities | $ | 2.7 |  |  | $ | — |  |  | $ | 0.7 |  |  | $ | (0.1) |  |  | $ | 3.4 |  |  | $ | (0.1) |
Municipal securities | 1.3 |  |  | — |  |  | 8.3 |  |  | (0.2) |  |  | 9.6 |  |  | (0.2) |
Corporate debt securities | 26.1 |  |  | (0.1) |  |  | 11.2 |  |  | (0.3) |  |  | 37.3 |  |  | (0.4) |
Asset-backed securities | 17.4 |  |  | (0.1) |  |  | 8.0 |  |  | (0.2) |  |  | 25.4 |  |  | (0.3) |
Total fixed maturities | 47.5 |  |  | (0.2) |  |  | 28.2 |  |  | (0.8) |  |  | 75.7 |  |  | (1.0) |
Short-term investments | 3.5 |  |  | — |  |  | — |  |  | — |  |  | 3.5 |  |  | — |
Total | $ | 51.0 |  |  | $ | (0.2) |  |  | $ | 28.2 |  |  | $ | (0.8) |  |  | $ | 79.2 |  |  | $ | (1.0) |
| December 31, 2024
| Less than 12 Months |  | 12 Months or More |  | Total
| Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss
| (dollars in millions)
Fixed maturities: |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities and agencies | $ | 26.4 |  |  | $ | (0.3) |  |  | $ | 1.8 |  |  | $ | — |  |  | $ | 28.2 |  |  | $ | (0.3) |
Municipal securities | 7.1 |  |  | (0.1) |  |  | 10.4 |  |  | (0.4) |  |  | 17.5 |  |  | (0.5) |
Corporate debt securities | 49.5 |  |  | (0.6) |  |  | 21.1 |  |  | (0.6) |  |  | 70.6 |  |  | (1.2) |
Asset backed securities | 53.6 |  |  | (0.6) |  |  | 10.6 |  |  | (0.5) |  |  | 64.2 |  |  | (1.1) |
Total fixed maturities | 136.6 |  |  | (1.6) |  |  | 43.9 |  |  | (1.5) |  |  | 180.5 |  |  | (3.1) |
Short-term investments | 6.4 |  |  | — |  |  | — |  |  | — |  |  | 6.4 |  |  | — |
Total | $ | 143.0 |  |  | $ | (1.6) |  |  | $ | 43.9 |  |  | $ | (1.5) |  |  | $ | 186.9 |  |  | $ | (3.1) |
Schedule of Net Investment Income | The following table sets forth the components of net investment income for the three and six months ended June 30, 2025 and 2024:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
| (dollars in millions)
Interest on fixed maturities and short-term investments | $ | 3.6 |  |  | $ | 2.3 |  |  | $ | 7.0 |  |  | $ | 4.0 |
Interest on cash and cash equivalents | 6.3 |  |  | 8.2 |  |  | 12.3 |  |  | 16.3 |
Total | 9.9 |  |  | 10.5 |  |  | 19.3 |  |  | 20.3 |
Investment expense | (0.5) |  |  | (0.5) |  |  | (1.2) |  |  | (1.1) |
Net investment income | $ | 9.4 |  |  | $ | 10.0 |  |  | $ | 18.1 |  |  | $ | 19.2 |
Schedule of Credit Ratings | The following tables summarize the credit ratings of short-term investments and available-for-sale fixed maturity securities at June 30, 2025 and December 31, 2024:
| June 30, 2025
| Amortized Cost |  | Fair Value |  | % of Total Fair Value
| (dollars in millions)
S&P Global rating or equivalent |  |  |  |  |
AAA | $ | 67.5 |  |  | $ | 67.8 |  |  | 21.0 | %
AA+, AA, AA-, A-1+ | 151.5 |  |  | 152.7 |  |  | 47.3 |
A+, A, A- | 82.0 |  |  | 82.6 |  |  | 25.6 |
BBB+, BBB, BBB- | 19.3 |  |  | 19.5 |  |  | 6.1 |
BB+ | 0.1 |  |  | 0.1 |  |  | — |
Total | $ | 320.4 |  |  | $ | 322.7 |  |  | 100.0 | %
| December 31, 2024
| Amortized Cost |  | Fair Value |  | % of Total Fair Value
| (dollars in millions)
S&P Global rating or equivalent |  |  |  |  |
AAA | $ | 75.2 |  |  | $ | 74.8 |  |  | 24.4 | %
AA+, AA, AA-, A-1+ | 146.0 |  |  | 145.0 |  | 47.3 |
A+, A, A- | 67.8 |  |  | 67.1 |  | 21.9 |
BBB+, BBB, BBB- | 20.1 |  |  | 19.9 |  | 6.4 |
Total | $ | 309.1 |  |  | $ | 306.8 |  |  | 100.0 | %

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