The following table summarizes the amortized cost and fair value of the Company’s fixed maturity securities, all of which are classified as available for sale:


			Gross Unrealized
As of September 30, 2024	Amortized Cost		Gains		Losses		Fair Value
	($ in thousands)
Fixed maturity securities
U.S. government and government agency	$	309,181	$	747	$	(54)	$	309,874
State and municipal	68,779		163		(3,566)		65,376
Commercial mortgage-backed securities	61,453		1,082		(680)		61,855
Residential mortgage-backed securities	174,766		3,473		(3,769)		174,470
Asset-backed securities	82,743		732		(475)		83,000
Corporate	196,031		2,161		(1,515)		196,677
Total	$	892,953	$	8,358	$	(10,059)	$	891,252


			Gross Unrealized
As of December 31, 2023	Amortized Cost		Gains		Losses		Fair Value
	($ in thousands)
Fixed maturity securities
U.S. government and government agency	$	252,294	$	579	$	(332)	$	252,541
State and municipal	55,984		—		(5,264)		50,720
Commercial mortgage-backed securities	26,573		29		(1,166)		25,436
Residential mortgage-backed securities	79,032		680		(5,010)		74,702
Asset-backed securities	42,964		32		(963)		42,033
Corporate	112,166		80		(3,054)		109,192
Total	$	569,013	$	1,400	(15,789)		$	554,624

The amortized cost and fair value of fixed maturity securities at September 30, 2024 and December 31, 2023, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because certain issuers may have the right to call or prepay obligations.


As of September 30, 2024	Amortized Cost		Fair Value
	($ in thousands)
Fixed maturity securities
Due in one year or less	$	133,335	$	133,341
Due after one year through five years	330,832		329,839
Due after five years through ten years	79,882		80,370
Due after ten years	29,942		28,377
	573,991		571,927
Commercial mortgage-backed securities	61,453		61,855
Residential mortgage-backed securities	174,766		174,470
Asset-backed securities	82,743		83,000
Total	$	892,953	$	891,252


As of December 31, 2023	Amortized Cost		Fair Value
	($ in thousands)
Fixed maturity securities
Due in one year or less	$	254,656	$	254,443
Due after one year through five years	122,274		118,585
Due after five years through ten years	27,145		25,265
Due after ten years	16,369		14,160
	420,444		412,453
Commercial mortgage-backed securities	26,573		25,436
Residential mortgage-backed securities	79,032		74,702
Asset-backed securities	42,964		42,033
Total	$	569,013	$	554,624


	Three Months Ended September 30,
	2024		2023
	($ in thousands)
U.S. government and government agency	$	3,793	$	1,224
State and municipal	467		387
Commercial mortgage-backed securities	761		375
Residential mortgage-backed securities	1,955		256
Asset-backed securities	719		1,044
Corporate	1,611		925
Short-term investments	134		186
Cash and cash equivalents	2,273		916
Gross investment income	11,713		5,313
Investment expenses	(222)		(125)
Net investment income	$	11,491	$	5,188


	Nine Months Ended September 30,
	2024		2023
	($ in thousands)
U.S. government and government agency	$	11,316	$	2,162
State and municipal	1,241		1,163
Commercial mortgage-backed securities	1,603		1,003
Residential mortgage-backed securities	4,118		718
Asset-backed securities	1,760		2,537
Corporate	3,614		2,514
Short-term investments	350		817
Cash and cash equivalents	4,493		2,011
Gross investment income	28,495		12,925
Investment expenses	(567)		(336)
Net investment income	$	27,928	$	12,589

There were $18.1 thousand and $16.2 thousand net realized investment losses for the three and nine months ended September 30, 2024 from the sale of investments and nil for the three and nine months ended September 30, 2023.

The Company is required to maintain assets as collateral in trust accounts to support the obligations of the AmFam Quota Share Agreement. The assets held in trust include fixed maturity securities, short-term investments and restricted cash and cash equivalents. The Company is entitled to interest income earned on these restricted assets, which is included in net investment income in the Condensed Consolidated Statements of Income and Comprehensive Income.


As of	September 30, 2024		December 31, 2023
	($ in thousands)
U.S. government and government agency	$	211,665	$	142,297
State and municipal	30,928		19,585
Commercial mortgage-backed securities	33,354		9,333
Residential mortgage-backed securities	96,991		35,313
Asset-backed securities	39,714		23,798
Corporate	103,839		49,632
Restricted fixed maturity securities	516,491		279,958
Restricted short-term investments	10,002		4,864
Restricted cash and cash equivalents	28,822		1,698
Restricted assets	$	555,315	$	286,520

The following table summarizes available for sale securities in an unrealized loss position, the fair value and gross unrealized loss by length of time the security has been in a continual unrealized loss position:


	Less than 12 Months				12 Months or Greater				Total
As of September 30, 2024	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
	($ in thousands)
Fixed maturity securities
U.S. government and government agency	$	30,291	$	(17)	$	15,195	$	(37)	$	45,486	$	(54)
State and municipal	523		(3)		46,911		(3,563)		47,434		(3,566)
Commercial mortgage-backed securities	843		(2)		17,194		(678)		18,037		(680)
Residential mortgage-backed securities	13,139		(46)		31,982		(3,723)		45,121		(3,769)
Asset-backed securities	19,846		(66)		10,604		(409)		30,450		(475)
Corporate	14,733		(28)		55,009		(1,487)		69,742		(1,515)
Total	$	79,375	$	(162)	$	176,895	$	(9,897)	$	256,270	$	(10,059)


	Less than 12 Months				12 Months or Greater				Total
As of December 31, 2023	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
	($ in thousands)
Fixed maturity securities
U.S. government and government agency	$	48,598	$	(69)	$	10,970	$	(263)	$	59,568	$	(332)
State and municipal	2,992		(14)		47,728		(5,250)		50,720		(5,264)
Commercial mortgage-backed securities	2,485		(53)		18,423		(1,113)		20,908		(1,166)
Residential mortgage-backed securities	17,536		(609)		31,502		(4,401)		49,038		(5,010)
Asset-backed securities	16,253		(71)		18,491		(892)		34,744		(963)
Corporate	24,976		(173)		62,733		(2,881)		87,709		(3,054)
Total	$	112,840	$	(989)	$	189,847	$	(14,800)	$	302,687	$	(15,789)

All of the securities in an unrealized loss position are rated investment grade. For fixed maturity securities that management does not intend to sell or are required to sell, there is no portion of the decline in value that is considered to be due to credit factors that would be recognized in earnings. Declines in value are considered to be due to non-credit factors and are recognized in Other Comprehensive Income.

The Company has evaluated its fixed maturity securities in an unrealized loss position and concluded that the unrealized losses are due primarily to temporary market and sector-related factors rather than to issuer-specific factors. None of these securities are delinquent or in default under financial covenants. Based on the assessment of these issuers, the Company expects them to continue to meet their contractual payment obligations as they become due.