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INVESTMENTS | 12 Months Ended
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Dec. 31, 2025
Investments, Debt and Equity Securities [Abstract] |
INVESTMENTS | INVESTMENTS Fair Value of Investments A reconciliation of the amortized cost to fair value of our investments in available-for-sale fixed maturity securities, presented on a consolidated basis, as of December 31, 2025 and 2024.
December 31, 2025 |  |
Type of Investment | Amortized Cost | Gross Unrealized Gain | Gross Unrealized Loss | Allowance for Credit Losses | Fair Value
US Treasury and government agencies | $ | 109,358 |  | $ | 482 |  | $ | 5,736 |  | $ | — |  | $ | 104,104 |
States, municipalities and political subdivisions | 261,711 |  | 1,598 |  | 1,575 |  | — |  | 261,734 |
Corporate | 797,892 |  | 9,186 |  | 23,924 |  | — |  | 783,154 |
Residential mortgage-backed | 732,452 |  | 8,991 |  | 25,846 |  | — |  | 715,597 |
Commercial mortgage-backed | 143,009 |  | 2,405 |  | 7 |  | — |  | 145,407 |
Other asset-backed | 194,751 |  | 1,238 |  | 635 |  | — |  | 195,354 |
Total Available-for-Sale | $ | 2,239,173 |  | $ | 23,900 |  | $ | 57,723 |  | $ | — |  | $ | 2,205,350 |
December 31, 2024 |  |
Type of Investment | Amortized Cost | Gross Unrealized Gain | Gross Unrealized Loss | Allowance for Credit Losses | Fair Value
US Treasury and government agencies | $ | 126,402 |  | $ | 153 |  | $ | 9,255 |  | $ | — |  | $ | 117,301 |
States, municipalities and political subdivisions | 252,936 |  | 52 |  | 5,084 |  | — |  | 247,904 |
Corporate | 728,662 |  | 1,354 | 40,633 |  | — |  | 689,382 |
Residential mortgage-backed | 623,431 |  | 864 |  | 40,884 |  | — |  | 583,411 |
Commercial mortgage-backed | 102,975 |  | 624 |  | 44 |  | — |  | 103,554 |
Other asset-backed | 127,125 |  | 593 |  | 940 |  | — |  | 126,779 |
Total Available-for-Sale | $ | 1,961,531 |  | $ | 3,640 |  | $ | 96,840 |  | $ | — |  | $ | 1,868,331 |
Maturities The amortized cost and fair value of available-for-sale fixed maturity securities at December 31, 2025, by contractual maturity, are shown in the following table. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Asset-backed securities, mortgage-backed securities and collateralized mortgage obligations may be subject to prepayment risk and are therefore not categorized by contractual maturity.
|  |  | Available-For-Sale |  |
December 31, 2025 |  |  |  |  | Amortized Cost |  | Fair Value |  |  |  |
Due in one year or less |  |  |  |  | $ | 61,856 |  |  | $ | 61,675 |  |  |  |  |
Due after one year through five years |  |  |  |  | 311,486 |  |  | 311,006 |  |  |  |  |
Due after five years through 10 years |  |  |  |  | 530,617 |  |  | 524,842 |  |  |  |  |
Due after 10 years |  |  |  |  | 265,002 |  |  | 251,469 |  |  |  |  |
Asset-backed securities |  |  |  |  | 1,070,212 |  |  | 1,056,358 |  |  |  |  |
|  |  |  |  | $ | 2,239,173 |  |  | $ | 2,205,350 |  |  |  |  |
Allowance for Credit Loss We regularly review available-for-sale securities for declines in fair value that we determine to be credit-related. For our fixed maturity securities, we generally consider the following in determining whether our unrealized losses are credit-related, and if so, the magnitude of the credit loss: •The extent to which the fair value is less than the amortized cost basis; •The reasons for the decline in value (credit event, currency or interest-rate related, including general credit spread widening); •The financial condition of and near-term prospects of the issuer (including issuer's current credit rating and the probability of full recovery of principal based upon the issuer's financial strength); •Current delinquencies and nonperforming assets of underlying collateral; •Expected future default rates; •Collateral value by vintage, geographic region, industry concentration or property type; •Subordination levels or other credit enhancements as of the balance sheet date as compared to origination; and •Contractual and regulatory cash obligations and the issuer's plans to meet such obligations. We recognize an allowance for credit losses on fixed maturity securities in an unrealized loss position when it is determined, using the factors discussed above, a component of the unrealized loss is related to credit. We recognize the credit losses in "Net investment gains (losses)" in the Consolidated Statements of Income, with an offset for the amount of non-credit impairments recognized in accumulated other comprehensive income. We do not measure an allowance for credit losses on accrued investment income because we write-off accrued interest through Net investment income when collectability concerns arise. We consider the following in determining whether write-offs of a security's amortized cost are necessary: •We believe amounts related to securities have become uncollectible; •We intend to sell a security; or •It is more likely than not that we will be required to sell a security prior to recovery. If we intend to sell a fixed maturity security or it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis and the fair value of the security is below amortized cost, we will write down the security to current fair value, with a corresponding charge, net of any amount previously recognized as an allowance for credit losses, to "Net investment gains (losses)" in the Consolidated Statements of Income. If we do not intend to sell a fixed maturity security or it is more likely than not that we will not be required to sell a fixed maturity security before recovery of its amortized cost basis but believe amounts related to a security are uncollectible, an impairment is deemed to have occurred and the amortized cost is written down to the estimated recovery value with a corresponding charge, net of any amount previously recognized as an allowance for credit losses, to "Net investment gains (losses)" in the Consolidated Statements of Income. The remainder of unrealized loss is held in "Accumulated other comprehensive income (loss)" in the Consolidated Statements of Stockholders' Equity. As of December 31, 2025, we had no allowance for credit losses for the available-for-sale fixed maturity securities portfolio.
Unrealized Gain and Loss Changes in unrealized gains and losses on available-for-sale fixed maturity securities do not affect net income and earnings per share but do impact comprehensive income, stockholders' equity and book value per share. A summary of changes in net unrealized investment gain (loss), net of taxes, for the years ended December 31, 2025, 2024 and 2023, is as follows:
| 2025 |  | 2024 |  | 2023
Change in net unrealized investment gain (loss) |  |  |  |  |
Available-for-sale fixed maturities(1) | $ | 59,466 |  |  | $ | (6,675) |  |  | $ | 27,091 |
Income tax effect | (12,493) |  |  | 1,402 |  |  | (5,689) |
Total change in net unrealized investment gain (loss), net of tax | $ | 46,973 |  |  | $ | (5,273) |  |  | $ | 21,402 |
(1) As a member of Lloyd's, the Company participates in the syndicate results which include unrealized gains and losses on investments. The change in net unrealized gains and losses on Lloyd's syndicate investments included above was $0.1 million as of December 31, 2025. The following tables summarize our available-for-sale fixed maturity securities that were in an unrealized loss position reported on a consolidated basis at December 31, 2025 and 2024. The securities are presented by the length of time they have been continuously in an unrealized loss position.
December 31, 2025 | Less than 12 months |  | 12 months or longer |  | Total
Type of Investment | Number of Issues | Fair Value | Gross Unrealized Loss |  | Number of Issues | Fair Value | Gross Unrealized Loss |  | Fair Value | Gross Unrealized Loss
US Treasury and government agencies | 3 | $ | 1,743 |  | $ | 3 |  |  | 25 | $ | 72,773 |  | $ | 5,733 |  |  | $ | 74,516 |  | $ | 5,736 |
States, municipalities and political subdivisions | 39 | 60,660 |  | 478 |  |  | 52 | 104,732 |  | 1,097 |  |  | 165,392 |  | 1,575 |
Corporate | 52 | 156,734 |  | 866 |  |  | 83 | 226,071 |  | 23,058 |  |  | 382,805 |  | 23,924 |
Residential mortgage-backed | 34 | 121,159 |  | 398 |  |  | 103 | 148,711 |  | 25,448 |  |  | 269,870 |  | 25,846 |
Commercial mortgage-backed | 2 | 7,986 |  | 7 |  |  | 0 | — |  | — |  |  | 7,986 |  | 7 |
Other asset-backed | 19 | 70,050 |  | 223 |  |  | 4 | 7,575 |  | 412 |  |  | 77,625 |  | 635 |
Total Available-for-Sale | 149 | $ | 418,332 |  | $ | 1,975 |  |  | 267 | $ | 559,862 |  | $ | 55,748 |  |  | $ | 978,194 |  | $ | 57,723 |
December 31, 2024 | Less than 12 months |  | 12 months or longer |  | Total
Type of Investment | Number of Issues | Fair Value | Gross Unrealized Loss |  | Number of Issues | Fair Value | Gross Unrealized Loss |  | Fair Value | Gross Unrealized Loss
US Treasury and government agencies | 5 | $ | 16,006 |  | $ | 67 |  |  | 28 | $ | 83,386 |  | $ | 9,188 |  |  | $ | 99,392 |  | $ | 9,255 |
States, municipalities and political subdivisions | 67 | 92,003 |  | 1,159 |  |  | 72 | 135,350 |  | 3,925 |  |  | 227,353 |  | 5,084 |
Corporate | 73 | 203,142 |  | 4,474 |  |  | 154 | 370,211 |  | 36,159 |  |  | 573,352 |  | 40,633 |
Residential mortgage-backed | — |  | 318,810 |  | 4,549 |  |  | — |  | 151,879 |  | 36,335 |  |  | 470,689 |  | 40,884 |
Commercial mortgage-backed | 4 | 8,198 |  | 44 |  |  | 0 | — |  | — |  |  | 8,198 |  | 44 |
Other asset-backed | 14 | 32,645 |  | 804 |  |  | 2 | 3,915 |  | 136 |  |  | 36,560 |  | 940 |
Total Available-for-Sale | 242 | $ | 670,804 |  | $ | 11,097 |  |  | 387 | $ | 744,741 |  | $ | 85,743 |  |  | $ | 1,415,544 |  | $ | 96,840 |
We believe that any unrealized losses on our available-for-sale fixed maturity securities at December 31, 2025 are temporary based upon our current analysis of the issuers of the securities that we hold and current market conditions. We invest in high quality assets to provide protection from future credit quality issues. Non-credit related unrealized losses are recognized as a component of other comprehensive income and represent other market movements that are not credit related, for example, interest rate changes. We have no intent to sell, and it is more likely than not that we will not be required to sell, these securities until the fair value recovers to at least equal our cost basis or the securities mature. Included in investments at December 31, 2025 and 2024, are securities on deposit with, or available to, various regulatory authorities as required by law and collateral for reinsurance agreements with fair values of $136,523 and $110,335 respectively. Mortgage Loans The mortgage loan portfolio consists entirely of commercial mortgage loans. We did not acquire new loans during the years ended December 31, 2025 or 2024. The following tables present the carrying value of our commercial mortgage loans at December 31, 2025 and 2024:
Commercial Mortgage Loans |  |
Loan-to-value | December 31, 2025 |  |  |  | December 31, 2024 |  |
Less than 65% | $ | 22,846 |  |  |  |  | 32,499 |  |  |
65%-75% | 8,270 |  |  |  |  | 8,468 |  |  |
Mortgage loans, amortized cost | $ | 31,116 |  |  |  |  | $ | 40,967 |  |  |
Allowance for mortgage loan credit losses | (286) |  |  |  |  | (45) |  |  |
Mortgage loans, net | $ | 30,830 |  |  |  |  | $ | 40,922 |  |  |
Mortgage Loans by Region
| December 31, 2025 |  | December 31, 2024
| Carrying Value |  | Percent of Total |  | Carrying Value |  | Percent of Total
U.S. Region |  |  |  |  |  |  |
East North Central | $ | 3,162 |  |  | 10.2 | % |  | $ | 3,218 |  |  | 7.9 | %
Southern Atlantic | 14,206 |  |  | 45.7 |  |  | 17,021 |  |  | 41.4 |
East South Central | 6,977 |  |  | 22.4 |  |  | 7,257 |  |  | 17.7 |
New England | — |  |  | — |  |  | 6,588 |  |  | 16.1 |
Middle Atlantic | 2,028 |  |  | 6.5 |  |  | 2,078 |  |  | 5.1 |
Mountain | 1,992 |  |  | 6.4 |  |  | 1,992 |  |  | 4.9 |
West North Central | 2,751 |  |  | 8.8 |  |  | 2,813 |  |  | 6.9 |
Total mortgage loans at amortized cost | $ | 31,116 |  |  | 100.0 | % |  | $ | 40,967 |  |  | 100.0 | %
Mortgage Loans by Property Type
| December 31, 2025 |  | December 31, 2024
| Carrying Value |  | Percent of Total |  | Carrying Value |  | Percent of Total
Property Type |  |  |  |  |  |  |
Multifamily | $ | 8,184 |  |  | 26.3 | % |  | $ | 8,362 |  |  | 20.4 | %
Office | 7,703 |  |  | 24.8 |  |  | 10,615 |  |  | 25.9 |
Industrial | 3,248 |  |  | 10.4 |  |  | 9,912 |  |  | 24.2 |
Retail | 9,953 |  |  | 32.0 |  |  | 10,000 |  |  | 24.4 |
Mixed use/Other | 2,028 |  |  | 6.5 |  |  | 2,078 |  |  | 5.1 |
Total mortgage loans at amortized cost | $ | 31,116 |  |  | 100.0 | % |  | $ | 40,967 |  |  | 100.0 | %
Mortgage loans are evaluated on a quarterly basis for impairment on an individual basis through a monitoring process and review of key credit indicators, such as economic trends, delinquency rates, property valuations, occupancy and rental rates and loan-to-value ratios. A loan is considered impaired when the Company believes it will not collect the principal and interest set forth in the contractual terms of the loan. An internal grade is assigned to each mortgage loan, with a grade of 1 being the highest and least likely for an impairment and a grade of 7 being the lowest and most likely for an impairment. An allowance for mortgage loan losses is established on each loan for those amounts we believe will not be collected according to the contractual terms of the respective loan agreement. The table below shows mortgage loans by year of origination as of December 31, 2025.
Amortized Cost Basis by Year of Origination and Credit Quality Indicator
| 2023 | 2022 | 2020 |  | 2019 |  | 2018 |  | Total
Risk Rating |  |  |  |  |  |  |  |  |
1-2 internal grade | $ | 8,085 |  | $ | 96 |  | $ | 4,935 |  |  | $ | 7,472 |  |  | $ | 10,528 |  |  | $ | 31,116 |
Total commercial mortgage loans | $ | 8,085 |  | $ | 96 |  | $ | 4,935 |  |  | $ | 7,472 |  |  | $ | 10,528 |  |  | $ | 31,116 |
As of December 31, 2025, the Company had a credit loss allowance of $286, summarized in the following rollforward:
Beginning balance, January 1, 2025 |  | $ | 45 |
Current-period provision for credit losses |  | 241 |
Write-off charged against the allowance, if any |  | — |
Recoveries of amounts previously written off, if any |  | — |
Ending balance, December 31, 2025 |  | $ | 286 |
The Company recorded a $2.6 million impairment loss related to one commercial office mortgage loan during the year ended December 31, 2025 as interest payments were past due and terms of the mortgage loan agreement were restructured to avoid foreclosure. Accrued interest of $129 has been excluded from commercial mortgage loans carrying value and is reported within "Accrued Investment Income" on the accompanying Consolidated Balance Sheets. Other than the commercial office mortgage loan noted above, all other loan receivables were current, with no delinquencies, as of December 31, 2025. Net Investment Gains and Losses Details of net investment gains (losses) reported on the accompanying Consolidated Statements of Income for the years ended December 31, 2025, 2024 and 2023 are as follows:
| 2025 |  | 2024 |  | 2023
Fixed maturity, available-for-sale securities: |  |  |  |  |
Net realized gains (losses) on fixed maturity, available-for-sale securities | $ | (1,404) |  |  | $ | (7,274) |  |  | $ | (442) |
Change in allowance for credit losses | — |  |  | 1 |  |  | 1 |
Equity securities: |  |  |  |  |
Net realized gains (losses) on equity securities sold | — |  |  | 1,362 |  |  | 150 |
Unrealized gains (losses) on equity securities still held at reporting date | — |  |  | — |  |  | 1,842 |
Net gains (losses) recognized on equity securities | — |  |  | 1,362 |  |  | 1,992 |
Net realized gains (losses) on mortgage loans | (2,864) |  |  | 10 |  |  | (5) |
Net realized gains (losses) on other long-term assets | 446 |  |  | 472 |  |  | (319) |
Net realized gains (losses) on real estate | — |  |  | — |  |  | 47 |
Total net investment gains (losses) | $ | (3,822) |  |  | $ | (5,429) |  |  | $ | 1,274 |
The proceeds and gross realized gains (losses) on the sale of available-for-sale fixed maturity securities for the years ended December 31, 2025, 2024 and 2023 are as follows:
| 2025 |  | 2024 |  | 2023
Proceeds from sales | $ | 121,054 |  |  | $ | 491,771 |  |  | $ | 77,388 |
Gross realized gains | 101 |  |  | 2,127 |  |  | 265 |
Gross realized losses | (1,505) |  |  | 9,401 |  |  | 707 |
Net Investment Income Net investment income for the years ended December 31, 2025, 2024 and 2023, is comprised of the following:
Years Ended December 31, | 2025 |  | 2024 |  | 2023
Investment income: |  |  |  |  |
Interest on fixed maturities | $ | 87,642 |  |  | $ | 69,703 |  |  | $ | 56,243 |
Dividends on equity securities | — |  |  | 341 |  |  | 3,548 |
Income on other long-term investments |  |  |  |  |
Investment income | 8,426 |  |  | 6,492 |  |  | 2,833 |
Change in value (1) | (1,482) |  |  | 1,447 |  |  | (2,864) |
Interest on mortgage loans | 1,698 |  |  | 1,852 |  |  | 1,889 |
Interest on short-term investments | 1,985 |  |  | 3,048 |  |  | 1,068 |
Interest on cash and cash equivalents | 6,925 |  |  | 5,045 |  |  | 2,228 |
Other | 4,515 |  |  | 5,006 |  |  | 4,139 |
Total investment income | $ | 109,709 |  |  | $ | 92,934 |  |  | $ | 69,084 |
Less investment expenses | 12,171 |  |  | 10,948 |  |  | 9,478 |
Net investment income | $ | 97,538 |  |  | $ | 81,986 |  |  | $ | 59,606 |
(1)Represents the change in value of our interests in limited liability partnerships that are recorded on the equity method of accounting. Funding Commitments Pursuant to agreements related to our limited liability partnership investments, we are contractually committed through 2030 to make capital contributions upon request of the partnerships. The timing of these additional contributions is unknown and based upon the timing of when investments and agreements are executed or signed compared to when the actual commitments are funded or closed. Our remaining potential contractual obligation was $15.9 million at December 31, 2025.

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