The amortized cost, allowance for credit losses, carrying amount, gross unrecognized gains and losses, and the fair value of those investments classified as held-to-maturity at September 30, 2024 are summarized as follows:


	Amortized Cost		Allowance for Credit Losses			Carrying Amount		Gross Unrecognized Gains		Gross Unrecognized Losses			Fair Value
	(in thousands)
States and political subdivisions	$	387,702	$	(35	)	$	387,667	$	4,190	$	(9,006	)	$	382,851
Corporate bonds		37,453		(100	)		37,353		12		(1,094	)		36,271
U.S. agency-based mortgage-backed securities		2,877		—			2,877		33		(81	)		2,829
U.S. Treasury securities and obligations of U.S. government agencies		8,456		—			8,456		31		(101	)		8,386
Asset-backed securities		17		(1	)		16		—		—			16
Totals	$	436,505	$	(136	)	$	436,369	$	4,266	$	(10,282	)	$	430,353

The amortized cost, gross unrealized gains and losses, fair value, and the allowance for credit losses of those investments classified as available-for-sale at September 30, 2024 are summarized as follows:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Allowance for Credit Losses
	(in thousands)
States and political subdivisions	$	147,821	$	939	$	(5,153	)	$	143,607	$	—
Corporate bonds		151,114		3,404		(1,439	)		153,079		—
U.S. agency-based mortgage-backed securities		4,702		—		(341	)		4,361		—
U.S. Treasury securities and obligations of U.S. government agencies		14,858		—		(791	)		14,067		—
Totals	$	318,495	$	4,343	$	(7,724	)	$	315,114	$	—

The cost, gross unrealized gains and losses, and the fair value of equity securities at September 30, 2024 are summarized as follows:


	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in thousands)
Equity securities:
Domestic common stock	$	36,020	$	21,692	$	—	$	57,712
Total equity securities	$	36,020	$	21,692	$	—	$	57,712


	Amortized Cost		Allowance for Credit Losses			Carrying Amount		Gross Unrecognized Gains		Gross Unrecognized Losses			Fair Value
	(in thousands)
States and political subdivisions	$	416,916	$	(38	)	$	416,878	$	4,166	$	(12,074	)	$	408,970
Corporate bonds		52,321		(142	)		52,179		—		(2,231	)		49,948
U.S. agency-based mortgage-backed securities		3,297		—			3,297		25		(123	)		3,199
U.S. Treasury securities and obligations of U.S. government agencies		11,186		—			11,186		26		(273	)		10,939
Asset-backed securities		37		(2	)		35		1		—			36
Totals	$	483,757	$	(182	)	$	483,575	$	4,218	$	(14,701	)	$	473,092

The amortized cost, gross unrealized gains and losses, fair value, and the allowance for credit losses of those investments classified as available-for-sale at December 31, 2023 are summarized as follows:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Allowance for Credit Losses
	(in thousands)
States and political subdivisions	$	138,031	$	583	$	(6,719	)	$	131,895	$	—
Corporate bonds		168,134		2,105		(3,486	)		166,753		—
U.S. agency-based mortgage-backed securities		5,190		—		(445	)		4,745		—
U.S. Treasury securities and obligations of U.S. government agencies		14,816		—		(1,145	)		13,671		—
Totals	$	326,171	$	2,688	$	(11,795	)	$	317,064	$	—

The cost, gross unrealized gains and losses, and the fair value of equity securities at December 31, 2023 are summarized as follows:


	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in thousands)
Equity securities:
Domestic common stock	$	44,046	$	13,101	$	—	$	57,147
Total equity securities	$	44,046	$	13,101	$	—	$	57,147

A summary of the carrying amounts and fair value of investments in fixed maturity securities classified as held-to-maturity, by contractual maturity, is as follows:


	September 30, 2024				December 31, 2023
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(in thousands)
Maturity:
Within one year	$	47,290	$	46,978	$	64,129	$	63,703
After one year through five years		115,402		112,425		136,854		131,396
After five years through ten years		113,949		110,703		114,990		110,814
After ten years		156,835		157,402		164,270		163,944
U.S. agency-based mortgage-backed securities		2,877		2,829		3,297		3,199
Asset-backed securities		16		16		35		36
Totals	$	436,369	$	430,353	$	483,575	$	473,092

A summary of the amortized cost and fair value of investments in fixed maturity securities classified as available-for-sale, by contractual maturity, is as follows:


	September 30, 2024				December 31, 2023
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(in thousands)
Maturity:
Within one year	$	17,898	$	17,728	$	25,995	$	25,875
After one year through five years		104,803		103,134		106,178		102,201
After five years through ten years		73,094		73,199		82,664		80,911
After ten years		117,998		116,692		106,144		103,332
U.S. agency-based mortgage-backed securities		4,702		4,361		5,190		4,745
Totals	$	318,495	$	315,114	$	326,171	$	317,064


	Less Than 12 Months				12 Months or Greater				Total
	Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses
	(in thousands)
September 30, 2024
Available-for-Sale
States and political subdivisions	$	61,392	$	3,595	$	21,334	$	1,558	$	82,726	$	5,153
Corporate bonds		30,359		786		25,343		653		55,702		1,439
U.S. agency-based mortgage-backed securities		4,122		312		239		29		4,361		341
U.S. Treasury securities and obligations of U.S. government agencies		—		—		14,067		791		14,067		791
Total available-for-sale securities	$	95,873	$	4,693	$	60,983	$	3,031	$	156,856	$	7,724

At September 30, 2024, we held 132 individual fixed maturity securities classified as available-for-sale that were in an unrealized loss position.


	Less Than 12 Months				12 Months or Greater				Total
	Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses
	(in thousands)
December 31, 2023
Available-for-Sale
States and political subdivisions	$	14,115	$	111	$	72,358	$	6,608	$	86,473	$	6,719
Corporate bonds		26,178		96		93,538		3,390		119,716		3,486
U.S. agency-based mortgage-backed securities		—		—		4,745		445		4,745		445
U.S. Treasury securities and obligations of U.S. government agencies		—		—		13,672		1,145		13,672		1,145
Total available-for-sale securities	$	40,293	$	207	$	184,313	$	11,588	$	224,606	$	11,795

The following table illustrates the changes in the allowance for credit losses by major security type of the investments classified as held-to-maturity for the quarter ended September 30, 2024.


	States and Political Subdivisions			Corporate Bonds			U.S. Agency -Based Mortgage- Backed Securities		U.S. Treasury Securities and Obligations of U.S. Government Agencies		Asset-Backed Securities			Totals
	(in thousands)
Balance at June 30, 2024	$	36		$	111		$	—	$	—	$	2		$	149
Provision for credit loss benefit		(1	)		(11	)		—		—		(1	)		(13	)
Balance at September 30, 2024	$	35		$	100		$	—	$	—	$	1		$	136

The following table illustrates the changes in the allowance for credit losses by major security type of the investments classified as held-to-maturity for the nine months ended September 30, 2024.


	States and Political Subdivisions			Corporate Bonds			U.S. Agency -Based Mortgage- Backed Securities		U.S. Treasury Securities and Obligations of U.S. Government Agencies		Asset-Backed Securities			Totals
	(in thousands)
Balance at December 31, 2023	$	38		$	142		$	—	$	—	$	2		$	182
Provision for credit loss benefit		(3	)		(42	)		—		—		(1	)		(46	)
Balance at September 30, 2024	$	35		$	100		$	—	$	—	$	1		$	136

The Company has established an allowance for credit losses on 436 held-to-maturity securities totaling $0.1 million. The majority of those securities were issued by states and political subdivisions (417 securities) and corporate bonds (16 securities).

The Company has no allowance for credit losses on investments classified as available-for-sale for the period ended September 30, 2024.

The credit rating used for held-to-maturity fixed income securities is the rating for each security as published by Moody’s, S&P, and Fitch to determine the probability of default. If there are two ratings, the lower rating is used. If there are three ratings, the median rating is used. If there is one rating, that rating is used. For corporate fixed income securities (given a rating), the probability of default comes from Moody’s annual study of corporate bond defaults published each February. The maximum maturity using the default rate is 20 years (any maturity greater than 20 years will use the 20-year rate). For municipal fixed income securities (given a rating), the probability of default comes from Moody’s study of municipal bond defaults published annually.

The calculation of the credit loss allowance takes the amortized cost of the fixed income security and assumes default and recovery based on the average recovery rates from the Moody’s default studies. The amortized cost of the security, minus the amount recovered, is the estimated full amount the Company could lose in a default scenario. Then this amount is multiplied by the probability of default to determine the allowance for credit loss. The lower the security is rated, the higher likelihood of default, and therefore a higher allowance for credit loss. The longer to the maturity date of a security, the higher the default risk.

The table below presents the amortized cost of held-to-maturity securities aggregated by credit quality indicator as of September 30, 2024.


	States and Political Subdivisions		Corporate Bonds		U.S. Agency -Based Mortgage- Backed Securities		U.S. Treasury Securities and Obligations of U.S. Government Agencies		Asset-Backed Securities		Totals
	Amortized Cost
	(in thousands)
AAA/AA/A ratings	$	385,526	$	13,367	$	2,877	$	8,456	$	7	$	410,233
Baa/BBB ratings		2,176		24,086		—		—		10		26,272
Total	$	387,702	$	37,453	$	2,877	$	8,456	$	17	$	436,505

Net realized gains in the quarter ended September 30, 2024 were $0.2 million resulting from the redemption of fixed maturity securities. Net realized gains in the quarter ended September 30, 2023 were $5.1 million resulting from the sale of equity and fixed maturity securities classified as available-for-sale.

Net realized losses in the nine months ended September 30, 2024 were $0.2 million resulting primarily from the sale of equity and fixed maturity securities classified as available-for-sale. Net realized gains in the nine months ended September 30, 2023 were $5.5 million resulting primarily from the sale of equity and fixed maturity securities classified as available-for-sale.

During the third quarter of 2024, we recognized through income $3.9 million of net unrealized gains on equity securities. During the third quarter of 2023, we recognized through income $7.3 million of net unrealized losses on equity securities.

During the nine months ended September 30, 2024, we recognized through income $8.6 million of net unrealized gains on equity securities. During the nine months ended September 30, 2023, we recognized through income $3.9 million of net unrealized losses on equity securities.

Investment income is recognized as it is earned. The discount or premium on fixed maturity securities is amortized using the “constant yield” method. Anticipated prepayments, where applicable, are considered when determining the amortization of premiums or discounts. Realized investment gains and losses are determined using the specific identification method.