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EMPLOYEE BENEFITS
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
EMPLOYEE BENEFITS EMPLOYEE BENEFITS
We offer various benefits to our employees including a non-contributory cash balance pension plan and an employee health and dental benefit plan.
In 2023, we offered an Early Retirement Package ("ERP") as a voluntary program for a select group of eligible employees to consider retiring earlier than planned. Employees that accepted the offering received a one-time separation package. At the same time, we announced a change to our paid time off ("PTO") policy to a discretionary time off policy as of December 31, 2023. As a result, the Company no longer maintains an accrued liability on the balance sheet for PTO. The expense of the severance benefits offered with the ERP largely offset the benefit of the liability released with the change in time off policy in the financial statements. A partial plan curtailment was triggered during that period due to the reduction in active lives resulting from the ERP reduction in force, providing the benefit shown in the table for the Net Periodic Benefit Cost below.
Pension Plan
We offer a non-contributory cash balance pension plan in which all of our employees are eligible to participate after they have completed one year of service, attained 21 years of age and have met the hourly service requirements. Retirement benefits under our cash balance pension plan are based on the number of years of service and level of compensation. Our policy to fund the pension plan on a current basis to not less than the minimum amounts required by the Employee Retirement Income Security Act of 1974, as amended, and the Internal Revenue Code of 1986, as amended, is designed to ensure that plan assets will be adequate to provide retirement benefits. We are not required to make a contribution to the pension plan in 2026.
As a result of the ERP offered in 2023, any retiree or terminated employees were offered the opportunity to take a lump sum distribution out of the plan post-retirement. About 25% of retirees elected to take a lump sum payment, which in total was $17.8 million, and as a result, a settlement gain of $0, $0.5 million, and $2.7 million was recorded during the years ended December 31, 2025, 2024 and 2023, respectively.
Investment Policies and Strategies
The investment objective of the plan is to seek the highest rate of return consistent with its asset mix. The plan seeks to ensure reasonable costs and places a high priority on benefit security and satisfying its benefit obligations. The plan's investment objectives include, but are not limited to: maximization of return within reasonable and prudent levels of risk; provision of returns comparable to returns for similar investment options; control administrative and management costs; provision of appropriate diversification within investment vehicles. The plan's investment strategy will utilize several different asset classes with varying risk/return characteristics. The returns of the asset classes are not expected to move in tandem, which will allow the plan to take part in different parts of the global economic cycle.
We have an internal retirement committee, which includes our Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, Chief Human Resources Officer, Chief Legal Officer, and Chief Claims Officer, all of whom periodically receive information on the value of the pension plan assets and their performance. Quarterly, the retirement committee meets to review and discuss the performance of the pension plan assets as well as the allocation of investments within the pension plan in accordance with the Investment Policy.
The plan's liability driven investment ("LDI") strategy is designed to match the timing of cash outflows related to payouts from the plan with cash inflows from the plan's investment portfolio, as well as hedge interest rate risk
between assets and liabilities. The portfolio includes a hedge portfolio, targeting 80.0 percent of the pension plan asset balance, largely comprised of highly rated fixed maturity securities and designed to match the assets and liabilities and maintain a fully funded position while hedging interest rate, yield curve and credit spread risks. The remaining 20.0 percent target of the asset balance is return seeking, with the objective to account for liability growth and to maintain a healthy surplus position. The largest fund in the return seeking portfolio is the LargeCap S&P 500 Index Separate Account fund, comprising 66.5% of the return seeking portfolio and 13.8% of the overall portfolio. We have not identified any significant concentrations of risk as a result of the LDI investment strategy.
The investments held by the pension plan at December 31, 2025 include the following asset categories:
•Fixed maturity securities, which are income-oriented investments including low, medium, and high quality bond funds with short, intermediate, and/or long term durations;
•Equity securities, which may include various types of stock (foreign and domestic), such as large-cap, mid-cap, small-cap, with value, blend, and growth investment objectives;
•Alternatives/other investments, which include commingled trusts, insurance company separate accounts through a group annuity contract, and mutual funds;
•Pooled separate accounts, which includes seven separate funds, including three S&P index separate accounts, an international equity index separate account, a short-term income separate account, a liquid assets separate account, and a US property separate account;
•Cash and cash equivalents, which include money market funds, stable value, and guaranteed interest accounts.
We have one external investment manager as of December 31, 2025 and 2024.
The following is a summary of the pension plan's actual and target asset allocations at December 31, 2025 and 2024 by asset category:
Target
Pension plan assets2025% of Total2024% of TotalAllocation
Hedge portfolio:79.2 %77.6 %80 %
Fixed maturity securities:
Corporate bonds$153,149 63.3 %$147,336 61.1 %
Foreign bonds18,265 7.5 15,960 6.6 
Federal agency4,578 1.9 5,185 2.1 
U.S. Treasury bonds285 0.1 — — 
Private placement2,423 1.0 3,319 1.4 
Mortgage/asset backed securities724 0.3 732 0.3 
Money market funds1,480 0.6 546 0.2 
Pooled separate accounts:
Liquid assets separate account fund5,274 2.2 8,872 3.7 
Short-term income separate account fund5,584 2.3 5,169 2.1 
Return seeking portfolio:20.8 %22.4 %20 %
Pooled separate accounts:
U.S. property separate account fund— — 6,688 2.8 
LargeCap S&P 500 index33,397 13.8 31,968 13.3 
MidCap S&P 400 index6,699 2.8 6,227 2.6 
SmallCap S&P 600 index4,421 1.8 4,163 1.7 
International equity index5,705 2.4 5,017 2.1 
Total plan assets$241,984 100.0 %$241,182 100.0 %100.0 %
Assets held in cash and cash equivalents enable the pension plan to mitigate market risk associated with other types of investments and allows the pension plan to maintain liquidity both for the purpose of making future benefit payments to participants and their beneficiaries and for future investment opportunities.
Valuation of Investments and Fair Value Measurement
Fair value measurement for the plan, including the application of the fair value hierarchy, is consistent with the methodology outlined in Part II, Item 8, Note 3 "Fair Value of Financial Instruments".
The following tables present the categorization of the pension plan's assets measured at fair value on a recurring basis at December 31, 2025 and 2024:
 Fair Value Measurements
DescriptionDecember 31, 2025Level 1Level 2Level 3
Fixed maturity securities
Corporate bonds$153,149 $— $153,149 $— 
Foreign bonds18,265 — 18,265 — 
Federal agency4,578 — 4,578 — 
U.S. Treasury bonds285 — 285 — 
Private placement2,423 — 2,423 — 
Mortgage/asset backed securities724 — 724 — 
Money market funds1,480 1,480 — — 
Pooled separate accounts:
Liquid assets separate account fund5,274 — 5,274 — 
Short-term income separate account fund5,584 5,584 — — 
LargeCap S&P 500 index33,397 33,397 — — 
MidCap S&P 400 index6,699 6,699 — — 
SmallCap S&P 600 index4,421 4,421 — — 
International equity index5,705 5,705 — — 
Total assets measured at fair value$241,984 $57,286 $184,698 $— 
Fair Value Measurements
DescriptionDecember 31, 2024Level 1Level 2Level 3
Fixed maturity securities
Corporate bonds$147,336 $— $147,336 $— 
Foreign bonds15,960 — 15,960 — 
Federal agency5,185 — 5,185 — 
Private placement3,319 — 3,319 — 
Mortgage/asset backed securities732 — 732 — 
Money market Funds546 546 — — 
Pooled separate accounts
Liquid assets separate account fund8,872 — 8,872 — 
Short-term income separate account fund5,169 5,169 — — 
U.S. property separate account fund6,688 — — 6,688 
LargeCap S&P 500 index31,968 31,968 — — 
MidCap S&P 400 index6,227 6,227 — — 
SmallCap S&P 600 index4,163 4,163 — — 
International equity index5,017 5,017 — — 
Total assets measured at fair value$241,182 $53,090 $181,404 $6,688 
The fair value of the majority of the plan's investments is determined based on prices obtained from the plan's investment manager who obtain prices from independent pricing services. One price is obtained for each security, which is evaluated for reasonableness prior to its use for reporting purposes.
Fixed Maturity Securities ("LDI Portfolio")
The LDI portfolio is comprised of individual investments in cash equivalents, bonds and notes, and options and contracts.
Cash and cash equivalents within the portfolio consist of interest-bearing cash and money market funds. The fair value of money market funds approximates their cost basis due to their liquidity and short-term nature and are classified within Level 1 of the fair value hierarchy.
Bonds and notes consist of corporate bonds (domestic and foreign), private placement debt instruments, federal agency and US Treasury government bonds, and mortgage backed obligations. Valuation is determined by the fund administrator's investment manager primarily utilizing Intercontinental Exchange ("ICE") institutional bond pricing and ICE CMO pricing applications and models. For federal agency government bonds, evaluators may also utilize yield curves constructed from dealer contracts and live data sources. For CMOs, evaluators may apply a volatility-driven, multi-dimensional single cash flow stream model or option-adjusted spread model. For ABS and CMBS issuances, a single cash flow stream model is utilized. Input information is from market and dealer sources, integrated with credit information, observed market movements, and other sector news. Market sources generally include public information about the issuer of the bond. Credit information pertains to information on how well the issuing company pays debts. Observed market movements relates to information about the issuer's publicly traded stock. Sector news includes other public information about corporations similar to the issuer. As the inputs utilized are either directly or indirectly observable, bonds and notes are classified within Level 2 of the fair value hierarchy.
Options and contracts consist of futures contracts which utilize pricing provided by issuers, investment managers, fund accountants, clients, and others. Default pricing may also be used if not provided. As there are significant unobservable inputs utilized for these holdings, they are classified within Level 3 of the fair value hierarchy. The plan's reported value of these holdings is zero as of December 31, 2025.
Pooled Separate Accounts
The pension plan invests in six pooled separate account funds: (1) Large Cap S&P 500 Index separate account; (2) Mid Cap S&P 400 Index separate account; (3) Small Cap S&P 600 Index separate account; (4) International Equity Index separate account; (5) Short-Term Income separate account; and (6) Liquid Assets separate account. The pension plan also invested in the US Property separate account during the year ended December 31, 2024, but had no investment holdings in this separate account as of December 31, 2025.
The Large Cap S&P 500 Index, MidCap S&P 400 Index, and SmallCap S&P 600 Index separate account funds are stated at fair value as provided by the fund administrator based on the fair value of the underlying holdings of the funds. These pooled separate accounts invest mainly in domestic stocks composing the S&P 500 Index, S&P MidCap 400 Index, and S&P SmallCap 600 Index, respectively, which have observable Level 1 quoted pricing inputs. The NAV of each fund is the basis for current transactions and the pooled separate accounts can be redeemed at NAV as of the measurement date. Most of the security prices were obtained from a pricing service, Interactive Data Corporation ("IDC"), for each fund. The fair value measurement for each fund is classified within Level 1 of the fair value hierarchy as the inputs reflect observable market data and quoted prices.
The International Equity Index separate account fund is stated at fair value as provided by the fund administrator based on the fair value of the underlying holdings of the fund. This pooled separate account invests in a single mutual fund with underlying holdings primary in non-US stocks. The fair value of the mutual fund is a publicly quoted pricing input used in determining the NAV of the pooled separate account. The NAV of the pooled separate account is not publicly quoted but is available to current investors. The fair value of the underlying mutual fund is based on third-party pricing vendors and utilizes observable market information. The NAV is the basis for current transactions and the pooled separate account can be redeemed at NAV as of the measurement date. The fair value measurement is classified within Level 1 of the fair value hierarchy as the underlying inputs reflect observable public market data from an active market.
The Short-Term Income separate account fund is stated at fair value as provided by the fund administrator based on the fair value of the underlying holdings of the fund. The fund invests in a single mutual fund. The underlying investments of this mutual fund are primarily in high quality short-term bonds and other fixed-income securities that, at the time of purchase, are rated BBB- or higher by S&P Global or Baa3 or higher by Moody's. The fair value of the mutual fund is a publicly quoted pricing input used in determining the NAV of the pooled separate account. The NAV of the pooled separate account is not publicly quoted but is available to current investors. The fair value of the underlying mutual fund is based on third-party pricing vendors and utilizes observable market information. The NAV is the basis for current transactions and the pooled separate account can be redeemed at NAV as of the measurement date. The fair value measurement is classified within Level 1 of the fair value hierarchy as the underlying inputs reflect observable public market data from an active market.
Investments in the liquid assets separate account fund are stated at fair value as provided by the administrator of the fund based on the fair value of the underlying assets owned by the fund. This pooled separate account invests mainly in short term securities such as commercial paper. The majority of the underlying securities have observable Level 1 or Level 2 pricing inputs, including quoted prices for similar assets in active or non-active markets. Most of the security prices were obtained from IDC. The NAV is the basis for current transactions and the pooled separate account can be redeemed at NAV as of the measurement date. The fair value measurement is classified within Level 2 of the fair value hierarchy as the inputs reflect observable market data and quoted prices for similar assets, but in some instances, quoted prices are in markets that are not active.
The fair value of the investments in the U.S. property separate account fund is provided by the administrator of the fund based on the NAV of the fund. The NAV is based on the fair value of the underlying properties included in the fund as this pooled separate account invests mainly in commercial real estate and includes mortgage loans which are backed by the associated properties. The fair value of the underlying real estate is estimated using discounted cash flow valuation models that utilize public real estate market data inputs such as transaction prices, market rents and growth rates, vacancy levels, leasing absorption, loan-to-value ratios, market cap rates, market interest rates, and discount rates. In addition, each property is appraised annually by an independent appraiser. The NAV is the basis for current transactions and the pooled separate account can be redeemed at net asset value as of the measurement
date. The fair value measurement is classified within Level 3 of the fair value hierarchy given the inputs reflect significant unobservable inputs. There are no restrictions as to the plan's ability to redeem its investment at the net asset value of the fund as of the reported date. The net asset value provided by the custodian has not been adjusted.
The following tables provide a summary of the changes in fair value of the pension plan's Level 3 securities:
U.S. property separate account fund
Balance at January 1, 2025$6,688 
Realized gains32 
Transfers out(6,720)
Balance at December 31, 2025$— 

U.S. property separate account fund
Balance at January 1, 2024$25,407 
Unrealized losses(564)
Expenses(54)
Transfers out(18,101)
Balance at December 31, 2024$6,688 
Estimates and Assumptions
The preparation of financial statements in conformity with GAAP requires us to make various estimates and assumptions that affect the reporting of net periodic benefit cost, plan assets and plan obligations for each plan at the date of the financial statements. Actual results could differ from these estimates. One significant estimate relates to the calculation of the benefit obligation for each plan. The discount rate assumption uses a published discount yield curve ("Discount Yield Curve") and reflects the expected future benefit discounted cash flows to determine the present value of the plan benefit obligations as of December 31. The Discount Yield Curve uses pricing and yield information for high quality corporate bonds. We have reviewed the updated curve and materials provided by our external actuaries with regard to the assumptions used in the curve. We will continue to monitor this curve and will make changes, as appropriate.
The Society of Actuaries ("SOA") is an actuarial organization that periodically reviews mortality data and publishes mortality tables and improvement scales. The mortality assumptions are based on the SOA's Pri-2012 white collar base rate mortality projected generationally using a published mortality improvement scale ("2024 MI"). The 2024 MI scale is based on latest mortality improvement release, the MIM-2021-v4 application tool issued by the SOA in October 2023 with a few user-selected assumptions: 2030 as the ultimate year for age/cohort transition and long-term rate assumptions using sex-distinct and age based rated developed from the latest Social Security Trustee Reports. We have reviewed these updated tables and have updated the mortality assumptions based on this information and also based on research provided by our external actuaries. We will continue to monitor mortality assumptions and will make changes, as appropriate, to reflect additional research and our resulting best estimate of future mortality rates.
Assumptions Used to Determine Benefit Obligations
The following actuarial assumptions were used to determine the reported plan benefit obligations at December 31:
Pension Benefits
Weighted-average assumptions as of December 3120252024
Discount rate5.46 %5.54 %
Interest crediting rate4.00 4.00 
Rate of compensation increase4.00 4.00 
Declining interest rates resulted in a decrease in the discount rates we use to value our respective plan's benefit obligations at December 31, 2025 compared to December 31, 2024.
Assumptions Used to Determine Net Periodic Benefit Cost
The following actuarial assumptions were used at January 1 to determine our reported net periodic benefit costs for the year ended December 31:
Pension Benefits
January 1,202520242023
Discount rate5.54 %4.93 %5.15 %
Expected long-term rate of return on plan assets5.90 5.70 6.70 
Rate of compensation increase4.00 4.00 3.00 

Benefit Obligation and Funded Status
The following table provides a reconciliation of benefit obligations, plan assets and funded status of our plans:
Pension Benefits
Years Ended December 31,20252024
Reconciliation of benefit obligation
Benefit obligation at beginning of year (2)
$180,324 $209,867 
Service cost3,340 3,287 
Interest cost9,586 9,913 
Actuarial loss (gain)2,708 (15,634)
Benefit payments(19,387)(9,350)
Settlement - lump sums paid— (17,759)
Benefit obligation at end of year (1)
$176,571 $180,324 
Reconciliation of fair value of plan assets
Fair value of plan assets at beginning of year (2)
$241,182 $263,893 
Actual return on plan assets20,189 4,398 
Benefit payments(19,387)(9,350)
Settlement - lump sums paid— (17,759)
Fair value of plan assets at end of year$241,984 $241,182 
Funded status at end of year$65,413 $60,858 
(1)For the pension plan, the benefit obligation is the projected benefit obligation.
(2)For end of year 2023 benefit obligation and fair value, an adjustment of 13 (thousand) was made reflecting an estimate provided to the current sole-custodian of the fund assets from a separate third-party managed custodian. The beginning of year 2024 balances were updated to reflect actual valuation as there is now only one custodian of fund assets.
Our accumulated pension benefit obligation was $176,571 and $180,324 at December 31, 2025 and 2024, respectively. Actuarial loss during 2025 was driven by actuarial assumption changes, primarily a decrease in the discount rate, and participant experience. Actuarial gain during 2024 was driven by actuarial assumption changes, primarily an increase in discount rate, and participant experience.
The following table displays the effect that the unrecognized prior service cost and unrecognized actuarial loss of our plan had on accumulated other comprehensive income ("AOCI"), as reported in the accompanying Consolidated Balance Sheets:
Pension Benefits
Years Ended December 3120252024
Amounts recognized in AOCI
Unrecognized prior service cost$(14,328)$(17,224)
Unrecognized actuarial (gain) loss(9,164)(5,131)
Total amounts recognized in AOCI$(23,492)$(22,354)
We anticipate amortization of the net actuarial gains for our pension plan in 2026 to be $2,708.

Net Periodic Benefit Cost

The components of the net periodic benefit cost for our pension plan are as follows:
Pension Plan
Years Ended December 31,202520242023
Net periodic benefit cost
Service cost$3,340 $3,287 $3,817 
Interest cost9,586 9,913 10,106 
Expected return on plan assets(13,585)(14,541)(15,025)
Amortization of prior service cost(2,896)(2,896)(3,280)
Effect of partial curtailment— (506)(2,666)
Amortization of net loss— — 207 
Net periodic benefit cost$(3,555)$(4,743)$(6,841)
The expected long-term return on plan assets is determined using a calculated value. The expected long-term return on plan assets assumption was developed as a weighted average rate based on the target asset allocation of the plan and the Long-Term Capital Market Assumptions ("CMA") October 2025. The capital market assumptions were developed with a primary focus on forward-looking valuation models and market indicators. The key fundamental economic inputs for these models are future inflation, economic growth, and interest rate environment. Due to the long-term nature of the pension obligations, the investment horizon for the CMA is 20 years. In addition to forward-looking models, historical analysis of market data and trends was reflected, as well as the outlook of recognized economists, organizations and consensus CMA from other credible studies.
The Corridor Approach is used to amortize actuarial gains and losses. An allowable 10% corridor is utilized under this approach. The period of amortization of such gains and losses is the average future service of members expected to receive benefits. A portion of the prior service cost component of net periodic pension benefit costs are capitalized and amortized straight-line as part of deferred acquisition costs and is included in "Amortization of deferred policy acquisition costs" within the Consolidated Statements of Income. The portion not related to the compensation and the other components of net periodic pension benefit costs are included in "Other underwriting expenses" within the Consolidated Statements of Income.
Projected Benefit Payments
The following table summarizes the expected benefits to be paid from our plan over the next 10 years:
202620272028202920302031-2035
Pension benefits$14,750 $13,260 $13,700 $13,930 $14,500 $74,030