
	Cost or Adjusted/Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
September 30, 2023
U.S. government and agency securities	$	2,494	$	—	$	95	$	2,399
Foreign government	1,000		—		—		1,000
States, municipalities and political subdivisions	26,366		1		3,345		23,022
Public utilities	5,658		—		692		4,966
Corporate securities	71,604		—		11,450		60,154
Mortgage-backed securities	55,526		—		9,398		46,128
Asset-backed securities	18,155		—		1,967		16,188

Total fixed maturities	$	180,803	$	1	$	26,947	$	153,857

December 31, 2022
U.S. government and agency securities	$	2,490	$	—	$	105	$	2,385
Foreign government	1,000		—		9		991
States, municipalities and political subdivisions	30,958		2		4,065		26,895
Public utilities	8,936		—		1,242		7,694
Corporate securities	99,062		20		15,739		83,343
Mortgage-backed securities	65,251		—		9,136		56,115
Asset-backed securities	30,038		9		2,788		27,259

Total fixed maturities	$	237,735	$	31	$	33,084	$	204,682

When we sell investments, we calculate the gain or loss realized on the sale by comparing the sales price (fair value) to the cost or adjusted/amortized cost of the security sold. We determine the cost or adjusted/amortized cost of the security sold using the specific-identification method. The following table details our realized gains (losses) by major investment category for the three and nine months ended September 30, 2023 and 2022, respectively:


	2023				2022
	Gains (Losses)		Fair Value at Sale(1)		Gains (Losses)		Fair Value at Sale(1)
Three Months Ended September 30,
Fixed maturities	$	—	$	3,849	$	—	$	13,696
Equity securities	—		—		—		—
Short-term investments	—		—		—		—
Other investments	3		1,151		—		—
Total realized gains	3		5,000		—		13,696
Fixed maturities	(1)		128		(4)		105
Equity securities	—		—		—		—
Short-term investments	—		—		—		—
Other investments	—		—		—		—
Total realized losses	(1)		128		(4)		105
Net realized investment gains (losses)	$	2	$	5,128	$	(4)	$	13,801
Nine Months Ended September 30,
Fixed maturities	$	59	$	16,839	$	64	$	38,429
Equity securities	165		5,786		—		—
Short-term investments	—		126		—		—
Other investments	3		1,151		—		—
Total realized gains	227		23,902		64		38,429
Fixed maturities	(6,368)		44,603		(108)		1,366
Equity securities	(665)		10,372		—		—
Short-term investments	—		—		—		—
Other investments	—		—		—		—
Total realized losses	(7,033)		54,975		(108)		1,366
Net realized investment gains (losses)	$	(6,806)	$	78,877	$	(44)	$	39,795


	September 30, 2023
	Cost or Amortized Cost		Percent of Total		Fair Value		Percent of Total
Due in one year or less	$	7,480	4.1	%	$	7,367	4.8	%
Due after one year through five years	35,890		19.9		32,330		21.0
Due after five years through ten years	58,876		32.5		48,028		31.2
Due after ten years	4,876		2.7		3,816		2.5
Asset and mortgage-backed securities	73,681		40.8		62,316		40.5
Total	$	180,803	100.0	%	$	153,857	100.0	%


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Fixed maturities	$	1,041	$	1,596	$	3,537	$	4,610
Equity securities	—		91		81		219
Cash and cash equivalents	1,759		504		4,687		721
Other investments	(33)		161		(111)		333

Investment income	2,767		2,352		8,194		5,883
Investment expenses	(58)		(116)		(204)		(404)
Net investment income	$	2,709	$	2,236	$	7,990	$	5,479

We have a quarterly portfolio monitoring process to identify and evaluate each fixed-income security whose carrying value may be impaired as the result of a credit loss. For each fixed-income security in an unrealized loss position, if we determine that we intend to sell the security or that it is more likely than not that we will be required to sell the security before recovery of the cost or amortized cost basis for reasons such as liquidity needs, contractual or regulatory requirements, the security's entire decline in fair value is recorded in earnings.

If our management decides not to sell the fixed-income security and it is more likely than not that we will not be required to sell the fixed-income security before recovery of its amortized cost basis, we evaluate whether the decline in fair value has resulted from credit losses or other factors. This is typically indicated by a change in the rating of the security assigned by a rating agency, and any adverse conditions specifically related to the security or industry, among other factors. If the assessment indicates that a credit loss may exist, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses will be recorded in earnings. Credit loss is limited to the difference between a security's amortized cost basis and its fair value. Any additional impairment not recorded through an allowance for credit losses is recognized in other comprehensive loss.

During the three and nine months ended September 30, 2023, we determined that none of our fixed-income securities shown in the table below that are in an unrealized loss position have declines in fair value that are reflected as a result of credit losses. Therefore, no credit loss allowance was recorded at September 30, 2023. The issuers of our debt security investments continue to make interest payments on a timely basis. We do not intend to sell, nor is it likely that we would be required to sell the debt securities before we recover our amortized cost basis. Equity securities are reported at fair value with changes in fair value recognized in the valuation of equity investments.


	Less Than Twelve Months					Twelve Months or More
	Number of Securities(1)	Gross Unrealized Losses		Fair Value		Number of Securities(1)	Gross Unrealized Losses		Fair Value
September 30, 2023
U.S. government and agency securities	—	$	—	$	—	3	$	95	$	2,399
Foreign governments	—	—		—		1	—		1,000
States, municipalities and political subdivisions	5	113		2,433		44	3,232		19,837
Public utilities	—	—		—		12	692		4,967
Corporate securities	6	143		2,290		137	11,307		57,858
Mortgage-backed securities	4	77		908		119	9,321		45,220
Asset-backed securities	5	38		2,135		43	1,929		14,053

Total fixed maturities	20	$	371	$	7,766	359	$	26,576	$	145,334

December 31, 2022
U.S. government and agency securities	3	$	105	$	2,385	—	$	—	$	—
Foreign governments	1	9		991		—	—		—
States, municipalities and political subdivisions	21	540		7,306		31	3,525		18,853
Public utilities	8	193		2,286		4	1,049		5,408
Corporate securities	78	2,279		24,594		77	13,460		57,765
Mortgage-backed securities	48	1,282		15,259		80	7,854		40,856
Asset-backed securities	16	795		6,397		46	1,993		19,028

Total fixed maturities	175	$	5,203	$	59,218	238	$	27,881	$	141,910

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The hierarchy for inputs used in determining fair value maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Assets and liabilities recorded on our Unaudited Condensed Consolidated Balance Sheets at fair value are categorized in the fair value hierarchy based on the observability of inputs to the valuation techniques as follows:

Level 3: Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Unobservable inputs reflect our estimates of the assumptions that market participants would use in valuing the assets and liabilities.

We estimate the fair value of our investments using the closing prices on the last business day of the reporting period, obtained from active markets such as the NYSE, Nasdaq and NYSE American. For securities for which quoted prices in active markets are unavailable, we use a third-party pricing service that utilizes quoted prices in active markets for similar instruments, benchmark interest rates, broker quotes and other relevant inputs to estimate the fair value of those securities for which quoted prices are unavailable. Our estimates of fair value reflect the interest rate environment that existed as of the close of business on

The fair value of our fixed maturities is initially calculated by a third-party pricing service. Valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of proprietary models, produce valuation information in the form of a single fair value for individual fixed-income and other securities for which a fair value has been requested. The inputs used by the valuation service providers include, but are not limited to, market prices from recently completed transactions and transactions of comparable securities, interest rate yield curves, credit spreads, liquidity spreads, currency rates and other information, as applicable. Credit and liquidity spreads are typically implied from completed transactions and transactions of comparable securities. Valuation service providers also use proprietary discounted cash flow models that are widely accepted in the financial services industry and similar to those used by other market participants to value the same financial information. The valuation models take into account, among other things, market observable information as of the measurement date, as described above, as well as the specific attributes of the security being valued, including its term, interest rate, credit rating, industry sector and, where applicable, collateral quality and other issue or issuer specific information. Executing valuation models effectively requires seasoned professional judgment and experience.

Any change in the estimated fair value of our fixed-income securities would impact the amount of unrealized gain or loss we have recorded, which could change the amount we have recorded for our investments and other comprehensive loss on our Unaudited Condensed Consolidated Balance Sheet as of September 30, 2023.


	Total		Level 1		Level 2		Level 3
September 30, 2023
U.S. government and agency securities	$	2,399	$	—	$	2,399	$	—
Foreign government	1,000		—		1,000		—
States, municipalities and political subdivisions	23,022		—		23,022		—
Public utilities	4,966		—		4,966		—
Corporate securities	60,154		—		60,154		—
Mortgage-backed securities	46,128		—		46,128		—
Asset-backed securities	16,188		—		16,188		—

Total fixed maturities	153,857		—		153,857		—
Mutual funds	—		—		—		—



Total equity securities	—		—		—		—
Other investments (1)	116		—		116		—
Total investments	$	153,973	$	—	$	153,973	$	—

December 31, 2022
U.S. government and agency securities	$	2,385	$	—	$	2,385	$	—
Foreign government	991		—		991		—
States, municipalities and political subdivisions	26,895		—		26,895		—
Public utilities	7,694		—		7,694		—
Corporate securities	83,343		—		83,343		—
Mortgage-backed securities	56,115		—		56,115		—
Asset-backed securities	27,259		—		27,259		—

Total fixed maturities	204,682		—		204,682		—
Mutual Funds	15,657		15,657		—		—



Total equity securities	15,657		15,657		—		—
Other investments (1)	125		—		125		—
Total investments	$	220,464	$	15,657	$	204,807	$	—

Certain financial assets and financial liabilities are measured at fair value on a non-recurring basis; this is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). There were no financial instruments measured on a non-recurring basis at September 30, 2023 and December 31, 2022.

The carrying amounts for the following financial instrument categories approximate their fair values at September 30, 2023 and December 31, 2022, because of their short-term nature: cash and cash equivalents, accrued investment income, premiums receivable, reinsurance recoverable, reinsurance payable, other assets, and other liabilities. The carrying amount of our senior notes approximate fair value as the interest rates and terms are variable.

We are responsible for the determination of fair value and the supporting assumptions and methodologies. We have implemented a system of processes and controls designed to provide assurance that our assets and liabilities are appropriately valued. For fair values received from third parties, our processes are designed to provide assurance that the valuation methodologies and inputs are appropriate and consistently applied, the assumptions are reasonable and consistent with the objective of determining fair value, and the fair values are accurately recorded.

For our investments in U.S. government securities that do not have prices in active markets, agency securities, state and municipal governments, and corporate bonds, we obtain the fair values from our investment custodians, which use a third-party valuation service. The valuation service calculates prices for our investments in the aforementioned security types on a month-end basis by using several matrix-pricing methodologies that incorporate inputs from various sources. The model the valuation service uses to price U.S. government securities and securities of states and municipalities incorporates inputs from active market makers and inter-dealer brokers. To price corporate bonds and agency securities, the valuation service calculates non-call yield spreads on all issuers, uses option-adjusted yield spreads to account for any early redemption features, and adds final spreads to the U.S. Treasury curve at 3 p.m. (ET) as of quarter end. Since the inputs the valuation service uses in its calculations are not quoted prices in active markets, but are observable inputs, they represent Level 2 inputs.

In addition to the cash held on deposit described above, we also have securities on deposit with regulators, which are presented within our Fixed Maturities or Other Investments lines on the Unaudited Condensed Balance Sheets, dependent upon if they are short-term or long-term in nature. The table below shows the carrying value of those securities held on deposit with regulators.