
	March 31, 2024
	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Debt Securities:
U.S. government obligations and agencies	$	22,434	$	—	$	—	$	(781)	$	21,653
Corporate bonds	807,313		(502)		646		(65,515)		741,942
Mortgage-backed and asset-backed securities	353,909		—		509		(33,714)		320,704
Municipal bonds	15,918		(5)		—		(1,821)		14,092
Redeemable preferred stock	9,480		(93)		3		(723)		8,667
Total	$	1,209,054	$	(600)	$	1,158	$	(102,554)	$	1,107,058


	December 31, 2023
	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Debt Securities:
U.S. government obligations and agencies	$	23,886	$	—	$	49	$	(677)	$	23,258
Corporate bonds	779,177		(469)		1,097		(64,091)		715,714
Mortgage-backed and asset-backed securities	334,460		—		969		(32,283)		303,146
Municipal bonds	15,916		(4)		—		(1,873)		14,039
Redeemable preferred stock	9,480		(93)		—		(1,214)		8,173
Total	$	1,162,919	$	(566)	$	2,115	$	(100,138)	$	1,064,330

The following table provides the credit quality of available-for-sale debt securities with contractual maturities as of the dates presented (dollars in thousands):


	March 31, 2024				December 31, 2023
Average Credit Ratings	Fair Value		% of Total Fair Value		Fair Value		% of Total Fair Value
AAA	$	349,025	31.5	%	$	333,516	31.3	%
AA	130,036		11.7	%	128,249		12.0	%
A	373,361		33.8	%	356,090		33.5	%
BBB	253,416		22.9	%	245,823		23.1	%

No Rating Available	1,220		0.1	%	652		0.1	%
Total	$	1,107,058	100.0	%	$	1,064,330	100.0	%

The table above includes credit quality ratings by Standard and Poor’s Rating Services, Inc. (“S&P”), Moody’s Investors Service, Inc. and Fitch Ratings, Inc. The Company has presented the highest rating of the three rating agencies for each investment position.

The following table summarizes the amortized cost and fair value of mortgage-backed and asset-backed securities as of the dates presented (in thousands):


	March 31, 2024				December 31, 2023
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Mortgage-backed securities:
Agency	$	175,783	$	153,236	$	165,507	$	145,686
Non-agency	62,078		54,009		63,729		55,102
Asset-backed securities:
Auto loan receivables	60,382		59,651		53,686		52,869
Credit card receivables	5,400		5,386		3,414		3,428
Other receivables	50,266		48,422		48,124		46,061
Total	$	353,909	$	320,704	$	334,460	$	303,146

The following tables summarize available-for-sale debt securities, aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position, for which no allowance for expected credit losses has been recorded as of the dates presented (in thousands):


	March 31, 2024
	Less Than 12 Months					12 Months or Longer
		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Debt Securities:
U.S. government obligations and agencies		$	15,169	$	(283)		$	5,986	$	(497)
Corporate bonds		5,517		(59)			347,969		(37,393)
Mortgage-backed and asset-backed securities		56,643		(668)			209,013		(33,046)
Municipal bonds		292		(3)			7,070		(1,009)
Redeemable preferred stock		—		—			1,101		(108)
Total		$	77,621	$	(1,013)		$	571,139	$	(72,053)


	December 31, 2023
	Less Than 12 Months					12 Months or Longer
		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Debt Securities:
U.S. government obligations and agencies		$	9,045	$	(108)		$	6,811	$	(569)
Corporate bonds		1,387		(9)			365,893		(37,088)
Mortgage-backed and asset-backed securities		18,150		(316)			216,220		(31,967)
Municipal bonds		293		(1)			7,010		(1,069)
Redeemable preferred stock		529		(30)			1,052		(158)
Total		$	29,404	$	(464)		$	596,986	$	(70,851)

Unrealized losses on available-for-sale debt securities in the above table as of March 31, 2024 have not been recognized into income as credit losses because the issuers are of high credit quality (investment grade securities), management does not intend to sell nor does it believe it is more likely than not it will be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates and other market conditions. There were no material factors impacting any one category or specific security requiring an accrual for credit loss. The issuers continue to make principal and interest payments on the bonds. The fair value is expected to recover as the bonds approach maturity.

The following table presents a reconciliation of the beginning and ending balances for expected credit losses on available-for-sale debt securities (in thousands):


	Corporate Bonds		Municipal Bonds		Redeemable Preferred Stock		Total
Balance, December 31, 2022	$	729	$	2	$	189	$	920

Provision for (or reversal of) credit loss expense	(260)		2		(96)		(354)
Balance, December 31, 2023	469		4		93		566
Provision for (or reversal of) credit loss expense	33		1		—		34
Balance, March 31, 2024	$	502	$	5	$	93	$	600

Refer to “Part II—Item 8—Note 2 (Summary of Significant Accounting Policies)” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 for details of accounting policies and reporting in the consolidated financial statements associated with available-for-sale debt securities and allowance for credit losses.


	March 31, 2024
	Amortized Cost		Fair Value
Due in one year or less	$	88,396	$	87,092
Due after one year through five years	654,617		616,104
Due after five years through ten years	431,416		373,897
Due after ten years	31,123		26,718
Perpetual maturity securities	3,502		3,247
Total	$	1,209,054	$	1,107,058

All securities, except those with perpetual maturities, were categorized in the table above utilizing years to effective maturity. Effective maturity takes into consideration all forms of potential prepayment, such as call features or prepayment schedules, that shorten the lifespan of contractual maturity dates.

The following table provides certain information related to available-for-sale debt securities, equity securities and investment in real estate during the periods presented (in thousands):


	Three Months Ended March 31,
	2024		2023
Proceeds from sales and maturities (fair value):
Available-for-sale debt securities	$	36,548	$	30,855
Equity securities	$	2,910	$	2,789
Gross realized gains on sale of securities:
Available-for-sale debt securities	$	5	$	5
Equity securities	$	69	$	54
Gross realized losses on sale of securities:
Available-for-sale debt securities	$	(74)	$	(706)
Equity securities	$	(77)	$	(141)

The following table presents the components of net investment income, comprised primarily of interest and dividends, for the periods presented (in thousands):


	Three Months Ended March 31,
	2024		2023
Available-for-sale debt securities	$	7,214	$	5,870
Equity securities	894		1,053

Cash and cash equivalents (1)	5,823		4,203
Other (2)	177		141
Total investment income	14,108		11,267
Less: Investment expenses (3)	(585)		(569)
Net investment income	$	13,523	$	10,698


(1)						Includes interest earned on restricted cash and cash equivalents.
(2)						Includes investment income earned on real estate investments.
(3)						Includes custodial fees, investment accounting and advisory fees, and expenses associated with real estate investments.

The following table provides the unrealized gains and losses recognized for the periods presented on equity securities still held at the end of the reported period (in thousands):


	Three Months Ended March 31,
	2024		2023
Unrealized gains (losses) recognized during the reported period on equity securities still held at the end of the reported period	$	2,905	$	503


	March 31,		December 31,
	2024		2023
Income Producing:
Investment real estate	$	7,097	$	7,097
Less: Accumulated depreciation	(1,618)		(1,572)
Investment real estate, net	$	5,479	$	5,525

The Company has an ownership interest in a limited partnership that is not registered or readily tradable on a securities exchange. This partnership is private equity fund managed by general partners who make decisions with regard to financial policies and operations. As such, the Company is not the primary beneficiary and does not consolidate these partnerships.

The limited partnership investment is subject to a contractual restriction on the transfer or sale by the Company prior to liquidation or dissolution of the partnership agreement by the general partner. This restriction lapses upon the dissolution of the partnership or upon the written consent of the general partner and its Board of Directors. The fair value of this investment was $10.4 million as of March 31, 2024 and December 31, 2023.

The following table provides the unrealized gains (losses) recognized for the periods presented on investment in private equity limited partnership still held at the end of the reported period (in thousands):


	March 31,		December 31,
	2024		2023


Unrealized gains (losses) recognized during the reported period on investment in private equity limited partnership still held at the end of the reported period	$	—	$	5,640

For the quarter ended March 31, 2024, the Company recognized no net change in unrealized gain or loss on this investment which is recognized in net change in unrealized gains (losses) on investments in the Consolidated Statement of Income. At March 31, 2024 and December 31, 2023 the Company’s net cumulative contributed capital to the partnership was $4.8 million.