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Investments | 12 Months Ended
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Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract] |
Investments | 2. Investments The amortized cost and fair value of fixed maturities securities and short-term investments are as follows (in millions):
| December 31, 2023
| Amortized Cost |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value
Fixed maturities available-for-sale: |  |  |  |  |  |  |
U.S. government and agencies | $ | 18.6 |  |  | $ | — |  |  | $ | (0.2) |  |  | $ | 18.4 |
States and other territories | 9.3 |  |  | — |  |  | (0.4) |  |  | 8.9 |
Corporate securities | 91.3 |  |  | 1.1 |  |  | (1.3) |  |  | 91.1 |
Foreign securities | 0.9 |  |  | — |  |  | — |  |  | 0.9 |
Residential mortgage-backed securities | 20.7 |  |  | 0.1 |  |  | (1.3) |  |  | 19.5 |
Commercial mortgage-backed securities | 7.7 |  |  | — |  |  | (0.6) |  |  | 7.1 |
Asset backed securities | 16.1 |  |  | — |  |  | (0.3) |  |  | 15.8 |
Total fixed maturities available-for-sale | $ | 164.6 |  |  | $ | 1.2 |  |  | $ | (4.1) |  |  | $ | 161.7 |
Short-term investments: |  |  |  |  |  |  |
U.S. government and agencies | 137.7 |  |  | — |  |  | — |  |  | 137.7 |
Commercial paper | 34.5 |  |  | — |  |  | — |  |  | 34.5 |
Corporate securities | 14.9 |  |  | — |  |  | — |  |  | 14.9 |
Total short-term investments | 187.1 |  |  | — |  |  | — |  |  | 187.1 |
Total | $ | 351.7 |  |  | $ | 1.2 |  |  | $ | (4.1) |  |  | $ | 348.8 |
| December 31, 2022
| Amortized Cost |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value
Fixed maturities available-for-sale: |  |  |  |  |  |  |
U.S. government and agencies | $ | 21.6 |  |  | $ | — |  |  | $ | (0.5) |  |  | $ | 21.1 |
States and other territories | 8.9 |  |  | — |  |  | (0.6) |  |  | 8.3 |
Corporate securities | 54.8 |  |  | 0.1 |  |  | (2.4) |  |  | 52.5 |
Foreign securities | 0.9 |  |  | — |  |  | (0.1) |  |  | 0.8 |
Residential mortgage-backed securities | 20.4 |  |  | 0.1 |  |  | (1.6) |  |  | 18.9 |
Commercial mortgage-backed securities | 6.5 |  |  | — |  |  | (0.7) |  |  | 5.8 |
Asset backed securities | 14.2 |  |  | — |  |  | (0.5) |  |  | 13.7 |
Total fixed maturities available-for-sale | $ | 127.3 |  |  | $ | 0.2 |  |  | $ | (6.4) |  |  | $ | 121.1 |
Short-term investments: |  |  |  |  |  |  |
U.S. government and agencies | $ | 129.1 |  |  | $ | — |  |  | $ | (0.2) |  |  | $ | 128.9 |
Commercial paper | 147.1 |  |  | — |  |  | (0.6) |  |  | 146.5 |
Corporate securities | 49.4 |  |  | — |  |  | — |  |  | 49.4 |
Total short-term investments | 325.6 |  |  | — |  |  | (0.8) |  |  | 324.8 |
Total | $ | 452.9 |  |  | $ | 0.2 |  |  | $ | (7.2) |  |  | $ | 445.9 |
The following tables present the gross unrealized losses and related fair values for the Company’s investments in available-for-sale debt securities, grouped by duration of time in a continuous unrealized loss position as of December 31, 2023 and December 31, 2022 (in millions):
| December 31, 2023
| Less than 12 months |  | 12 months or more |  | Total
| Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses
Fixed maturities available-for-sale: |  |  |  |  |  |  |  |  |  |  |
U.S. government and agencies | $ | 4.3 |  |  | $ | — |  |  | $ | 10.5 |  |  | $ | (0.2) |  |  | $ | 14.8 |  |  | $ | (0.2) |
States and other territories | 1.5 |  |  | — |  |  | 7.4 |  |  | (0.4) |  |  | 8.9 |  |  | (0.4) |
Corporate securities | 5.7 |  |  | — |  |  | 37.4 |  |  | (1.3) |  |  | 43.1 |  |  | (1.3) |
Foreign securities | — |  |  | — |  |  | 0.9 |  |  | — |  |  | 0.9 |  |  | — |
Residential mortgage-backed securities | — |  |  | — |  |  | 11.6 |  |  | (1.3) |  |  | 11.6 |  |  | (1.3) |
Commercial mortgage-backed securities | 0.4 |  |  | — |  |  | 5.8 |  |  | (0.6) |  |  | 6.2 |  |  | (0.6) |
Asset backed securities | 1.6 |  |  | — |  |  | 8.2 |  |  | (0.3) |  |  | 9.8 |  |  | (0.3) |
Short-term investments: |  |  |  |  |  |  |  |  |  |  |
U.S. government and agencies | 137.7 |  |  | — |  |  | — |  |  | — |  |  | 137.7 |  |  | — |
Commercial paper | 34.5 |  |  | — |  |  | — |  |  | — |  |  | 34.5 |  |  | — |
Corporate securities | 14.9 |  |  | — |  |  | — |  |  | — |  |  | 14.9 |  |  | — |
Total | $ | 200.6 |  |  | $ | — |  |  | $ | 81.8 |  |  | $ | (4.1) |  |  | $ | 282.4 |  |  | $ | (4.1) |
| December 31, 2022
| Less than 12 months |  | 12 months or more |  | Total
| Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses
Fixed maturities available-for-sale: |  |  |  |  |  |  |  |  |  |  |
U.S. government and agencies | $ | 17.9 |  |  | $ | (0.4) |  |  | $ | 1.1 |  |  | $ | (0.1) |  |  | $ | 19.0 |  |  | $ | (0.5) |
States and other territories | 3.6 |  |  | (0.1) |  |  | 4.6 |  |  | (0.5) |  |  | 8.2 |  |  | (0.6) |
Corporate securities | 30.5 |  |  | (1.5) |  |  | 11.1 |  |  | (0.9) |  |  | 41.6 |  |  | (2.4) |
Foreign securities | — |  |  | — |  |  | 0.8 |  |  | (0.1) |  |  | 0.8 |  |  | (0.1) |
Residential mortgage-backed securities | 6.3 |  |  | (0.3) |  |  | 7.6 |  |  | (1.3) |  |  | 13.9 |  |  | (1.6) |
Commercial mortgage-backed securities | 1.9 |  |  | — |  |  | 3.9 |  |  | (0.7) |  |  | 5.8 |  |  | (0.7) |
Asset backed securities | 5.5 |  |  | (0.2) |  |  | 3.7 |  |  | (0.3) |  |  | 9.2 |  |  | (0.5) |
Short-term investments: |  |  |  |  |  |  |  |  |  |  |
U.S. government and agencies | 129.1 |  |  | (0.2) |  |  | — |  |  | — |  |  | 129.1 |  |  | (0.2) |
Commercial paper | 147.1 |  |  | (0.6) |  |  | — |  |  | — |  |  | 147.1 |  |  | (0.6) |
Total | $ | 341.9 |  |  | $ | (3.3) |  |  | $ | 32.8 |  |  | $ | (3.9) |  |  | $ | 374.7 |  |  | $ | (7.2) |
The Company has determined that unrealized losses as of December 31, 2023 and December 31, 2022 resulted from the interest rate environment, rather than a deterioration of the creditworthiness of the issuers. Therefore, an allowance for credit losses was not necessary as it is more likely than not that the Company will not be required to sell the investments before the recovery of the amortized cost basis or until maturity. The amortized cost and fair value of fixed maturities securities by contractual maturity are as follows (in millions):
| December 31, 2023
| Amortized Cost |  | Fair Value
Due to mature: |  |  |
One year or less | $ | 29.9 |  |  | $ | 29.6 |
After one year through five years | 76.3 |  |  | 75.2 |
After five years | 13.9 |  |  | 14.5 |
Residential mortgage-backed securities | 20.7 |  |  | 19.5 |
Commercial mortgage-backed securities | 7.7 |  |  | 7.1 |
Asset backed securities | 16.1 |  |  | 15.8 |
Total fixed maturities available-for-sale | $ | 164.6 |  |  | $ | 161.7 |
Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Net realized gains on fixed maturity securities were insignificant for the years ended December 31, 2023 and 2022, respectively. The Company’s net investment income is comprised of the following (in millions):
|  |  | Year Ended December 31,
|  |  |  |  | 2023 |  | 2022 |  |
Interest on cash and cash equivalents |  |  |  |  | $ | 7.3 |  |  | $ | 2.4 |  |  |
Fixed maturities income |  |  |  |  | 5.9 |  |  | 2.9 |  |  |
Short-term investment income |  |  |  |  | 10.4 |  |  | 3.9 |  |  |
Total investment income |  |  |  |  | 23.6 |  |  | 9.2 |  |  |
Investment expenses |  |  |  |  | (0.5) |  |  | (0.2) |  |  |
Net investment income |  |  |  |  | $ | 23.1 |  |  | $ | 9.0 |  |  |
Pursuant to certain regulatory requirements, the Company is required to hold assets on deposit with various state insurance departments for the benefit of policyholders. These special deposits are included in cash and cash equivalents or fixed maturities available-for-sale on the consolidated balance sheet s. The carrying value of securities on deposit with state regulatory authorities tot al $12.9 million and $12.6 million as o f December 31, 2023 and 2022, respectively.

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