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Investments
 12 Months Ended
Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
Investments INVESTMENTS
The following table details fixed maturity available-for-sale securities, by major investment category, at December 31, 2023 and 2022:
Cost or Adjusted/Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
December 31, 2023
U.S. government and agency securities$27,489 $11 $68 $27,432 
States, municipalities and political subdivisions26,336 9 2,480 23,865 
Public utilities5,645 — 511 5,134 
Corporate securities70,197 20 8,368 61,849 
Mortgage-backed securities53,619 — 7,309 46,310 
Asset-backed securities17,665 9 1,561 16,113 
Total fixed maturities$200,951 $49 $20,297 $180,703 
December 31, 2022
U.S. government and agency securities$2,490 $— $105 $2,385 
Foreign government1,000 — 9 991 
States, municipalities and political subdivisions30,958 2 4,065 26,895 
Public utilities8,936 — 1,242 7,694 
Corporate securities99,062 20 15,739 83,343 
Mortgage-backed securities65,251 — 9,136 56,115 
Asset-backed securities30,038 9 2,788 27,259 
Total fixed maturities$237,735 $31 $33,084 $204,682 

Equity securities are summarized as follows at:
December 31, 2023December 31, 2022
Estimated Fair ValuePercent of TotalEstimated Fair ValuePercent of Total
Mutual funds$— — %$15,657 100.0 %
Total equity securities$— — %$15,657 100.0 %
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 years ended December 31, 2023, 2022 and 2021:

202320222021
Gains
(Losses)
Fair Value at Sale (1)
Gains
(Losses)
Fair Value at Sale (1)
Gains (Losses)
Fair Value at Sale (1)
Fixed maturities$59 $22,011 $134 $38,268 $243 $74,007 
Equity securities165 5,786 — — — — 
Short-term investments— 126 — — — 4,675 
Other investments3 1,151 — — — — 
Total realized gains227 29,074 134 38,268 243 78,682 
Fixed maturities(6,370)45,035 (6,617)88,033 (105)7,658 
Equity securities(665)10,372 — — — 56 
Total realized losses(7,035)55,407 (6,617)88,033 (105)7,714 
Net realized investment gains (losses)$(6,808)$84,481 $(6,483)$126,301 $138 $86,396 
(1) Fair Value at sale includes maturities and paydowns executed at par value.

The table below summarizes our fixed maturities at December 31, 2023 by contractual maturity periods. Actual results may differ as issuers may have the right to call or prepay obligations, with or without penalties, prior to the contractual maturities of those obligations.

December 31, 2023
Cost or Amortized CostPercent of TotalFair ValuePercent of Total
Due in one year or less$7,275 3.6 %$7,194 4.0 %
Due after one year through five years63,930 31.8 %60,795 33.6 %
Due after five years through ten years53,591 26.7 %46,295 25.6 %
Due after ten years4,871 2.4 %3,996 2.2 %
Asset and mortgage-backed securities71,284 35.5 %62,423 34.6 %
Total$200,951 100.0 %$180,703 100.0 %



The following table summarizes our net investment income by major investment category:
Year Ended December 31,
202320222021
Fixed maturities$4,581 $6,164 $6,069 
Equity securities81 305 131 
Cash and cash equivalents6,232 1,488 31 
Other investments(68)63214 275 
Investment income10,826 8,171 6,506 
Investment expenses(252)(498)(605)
Net investment income$10,574 $7,673 $5,901 
Portfolio monitoring

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 year-ended December 31, 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 December 31, 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.
The following table presents an aging of our unrealized investment losses by investment class:
Less Than Twelve MonthsTwelve Months or More
Number of Securities(1)
Gross Unrealized LossesFair Value
Number of Securities(1)
Gross Unrealized LossesFair Value
December 31, 2023 
U.S. government and agency securities9 $14 $19,943 2 $54 $1,430 
States, municipalities and political subdivisions4 12 2,052 44 2,468 20,571 
Public utilities— — — 12 511 5,134 
Corporate securities3 27 1,255 133 8,341 59,419 
Mortgage-backed securities2 14 807 117 7,295 45,502 
Asset backed securities4 6 1,354 43 1,555 14,074 
Total fixed maturities22 $73 $25,411 351 $20,224 $146,130 
December 31, 2022
U.S. government and agency securities3 $105 $2,385 — $— $— 
Foreign governments1 9 991 — — — 
States, municipalities and political subdivisions21 540 7,306 31 3,525 18,853 
Public utilities8 193 2,286 4 1,049 5,408 
Corporate securities78 2,279 24,594 77 13,460 57,765 
Mortgage-backed securities48 1,282 15,259 80 7,854 40,856 
Asset-backed securities16 795 6,397 46 1,993 19,028 
Total fixed maturities175 $5,203 $59,218 238 $27,881 $141,910 
(1) This amount represents the actual number of discrete securities, not the number of shares or units of those securities. The numbers are not presented in thousands.

Fair value measurement

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 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 1: Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that we can access.

Level 2: Assets and liabilities whose values are based on the following:
    (a) Quoted prices for similar assets or liabilities in active markets;
    (b) Quoted prices for identical or similar assets or liabilities in markets that are not active; or
(c) Valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or liability.

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 December 31, 2023 and 2022. Changes in interest rates subsequent to December 31, 2023 may affect the fair value of our investments.

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 income (loss) on our Consolidated Balance Sheet as of December 31, 2023.
The following table presents the fair value of our financial instruments measured on a recurring basis by level at December 31, 2023 and 2022:

TotalLevel 1Level 2Level 3
December 31, 2023
U.S. government and agency securities$27,432 $— $27,432 $— 
States, municipalities and political subdivisions23,865 — 23,865 — 
Public utilities5,134 — 5,134 — 
Corporate securities61,849 — 61,849 — 
Mortgage-backed securities46,310 — 46,310 — 
Asset-backed securities16,113 — 16,113 — 
Total fixed maturities180,703 — 180,703 — 
Other investments (1)
14,004 — 14,004 — 
Total investments$194,707 $— $194,707 $— 
December 31, 2022
U.S. government and agency securities$2,385 $— $2,385 $— 
Foreign government991 — 991 — 
States, municipalities and political subdivisions26,895 — 26,895 — 
Public utilities7,694 — 7,694 — 
Corporate securities83,343 — 83,343 — 
Mortgage-backed securities56,115 — 56,115 — 
Asset-backed securities27,259 — 27,259 — 
Total fixed maturities204,682 — 204,682 — 
Mutual Funds15,657 15,657 — — 
Total equity securities15,657 15,657 — — 
Other investments (1)
125 — 125 — 
Total investments$220,464 $15,657 $204,807 $— 
(1) Other long-term investments included in the fair value hierarchy exclude these other limited partnership interests that are measured at estimated fair value using the net asset value per share (or its equivalent) practical expedient.

    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 December 31, 2023 and 2022.

    The carrying amounts for the following financial instrument categories approximate their fair values at December 31, 2023 and 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.

At the end of each quarter, we determine whether we need to transfer the fair values of any securities between levels of the fair value hierarchy and, if so, we report the transfer as of the end of the quarter. During 2023, we transferred no investments between levels.

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.

Other investments

We acquired investments in limited partnerships, recorded in the other investments line of our Consolidated Balance Sheets and these investments are currently being accounted for at fair value utilizing a net asset value per share equivalent methodology.

The information presented in the table below is as of December 31, 2023 and 2022:
Book ValueUnrealized GainUnrealized LossFair Value
December 31, 2023
Limited partnership investments (1)
$2,104 $379 $— $2,483 
Short-term investments14,014 1 11 14,004 
Total other investments
$16,118 $380 $11 $16,487 
December 31, 2022
Limited partnership investments (1)
$2,946 $604 $— $3,550 
Short-term investments126 — 1 125 
Total other investments$3,072 $604 $1 $3,675 
(1) Distributions will be generated from investment gains, from operating income, from underlying investments of the funds, and from liquidation of the underlying assets of the funds. We estimate that the underlying assets of the funds will be liquidated over the next few months to five years.

Restricted Cash

We are required to maintain assets on deposit with various regulatory authorities to support our insurance operations. The cash on deposit with state regulators is available to settle insurance liabilities. We also use trust funds in certain reinsurance transactions.

The following table presents the components of restricted assets:
December 31,
20232022
Trust funds$17,439 $45,364 
Cash on deposit (regulatory deposits)631 624 
     Total restricted cash$18,070 $45,988 

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 Consolidated 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.

December 31,
20232022
Invested assets on deposit (regulatory deposits)$1,495 $2,616