
	June 30, 2024
	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Debt Securities:
U.S. government obligations and agencies	$	22,350	$	—	$	36	$	(794)	$	21,592
Corporate bonds	888,118		(617)		533		(64,038)		823,996
Mortgage-backed and asset-backed securities	380,581		—		1,029		(34,479)		347,131
Municipal bonds	15,890		(4)		—		(1,760)		14,126
Redeemable preferred stock	9,480		(95)		4		(604)		8,785
Total	$	1,316,419	$	(716)	$	1,602	$	(101,675)	$	1,215,630


	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):


	June 30, 2024				December 31, 2023
Average Credit Ratings	Fair Value		% of Total Fair Value		Fair Value		% of Total Fair Value
AAA	$	372,446	30.6	%	$	333,516	31.3	%
AA	144,142		11.9	%	128,249		12.0	%
A	411,218		33.8	%	356,090		33.5	%
BBB	283,267		23.3	%	245,823		23.1	%

No Rating Available	4,557		0.4	%	652		0.1	%
Total	$	1,215,630	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):


	June 30, 2024				December 31, 2023
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Mortgage-backed securities:
Agency	$	187,979	$	165,097	$	165,507	$	145,686
Non-agency	56,990		48,963		63,729		55,102
Asset-backed securities:
Auto loan receivables	66,262		65,805		53,686		52,869
Credit card receivables	9,644		9,636		3,414		3,428
Other receivables	59,706		57,630		48,124		46,061
Total	$	380,581	$	347,131	$	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):


	June 30, 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		$	6,660	$	(77)		$	12,090	$	(717)
Corporate bonds		6,680		(92)			343,383		(35,984)
Mortgage-backed and asset-backed securities		68,579		(1,055)			197,283		(33,424)
Municipal bonds		291		(3)			7,061		(1,017)
Redeemable preferred stock		—		—			1,092		(117)
Total		$	82,210	$	(1,227)		$	560,909	$	(71,259)


	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 June 30, 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	148		—		2		150
Balance, June 30, 2024	$	617	$	4	$	95	$	716

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.


	June 30, 2024
	Amortized Cost		Fair Value
Due in one year or less	$	110,996	$	109,281
Due after one year through five years	745,807		707,068
Due after five years through ten years	427,102		371,633
Due after ten years	29,012		24,332
Perpetual maturity securities	3,502		3,316
Total	$	1,316,419	$	1,215,630

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 and equity securities during the periods presented (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Proceeds from sales and maturities (fair value):
Available-for-sale debt securities	$	28,717	$	15,872	$	65,265	$	46,727
Equity securities	$	8,042	$	34,444	$	10,952	$	37,233
Gross realized gains on sale of securities:
Available-for-sale debt securities	$	580	$	—	$	585	$	5
Equity securities	$	725	$	1,498	$	794	$	1,552
Gross realized losses on sale of securities:
Available-for-sale debt securities	$	(489)	$	(21)	$	(563)	$	(727)
Equity securities	$	(1,109)	$	(595)	$	(1,186)	$	(736)

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 June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Available-for-sale debt securities	$	8,390	$	5,927	$	15,604	$	11,797
Equity securities	842		868		1,736		1,921

Cash and cash equivalents (1)	5,885		4,949		11,708		9,152
Other (2)	150		127		327		268
Total investment income	15,267		11,871		29,375		23,138
Less: Investment expenses (3)	(607)		(589)		(1,192)		(1,158)
Net investment income	$	14,660	$	11,282	$	28,183	$	21,980


(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 June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Unrealized gains (losses) recognized during the reported period on equity securities still held at the end of the reported period	$	980	$	(205)	$	3,885	$	298


	June 30,		December 31,
	2024		2023
Income Producing:
Investment real estate	$	7,188	$	7,097
Less: Accumulated depreciation	(1,665)		(1,572)
Investment real estate, net	$	5,523	$	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 a private equity fund managed by a general partner who makes decisions with regard to financial policies and operations. As such, the Company is not the primary beneficiary and does not consolidate this partnership.

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 June 30, 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):


	June 30,		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 June 30, 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 June 30, 2024 and December 31, 2023, the Company’s net cumulative contributed capital to the partnership was $4.8 million.