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Investments
 12 Months Ended
Dec. 31, 2024
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, 2024 and 2023:
Cost or Adjusted/Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
December 31, 2024
U.S. government and agency securities$154,096 $589 $25 $154,660 
Corporate securities68,024 6 6,495 61,535 
Mortgage-backed securities35,895 — 5,433 30,462 
States, municipalities and political subdivisions19,104 — 1,907 17,197 
Asset-backed securities12,341 1 906 11,436 
Public utilities5,651 — 367 5,284 
Foreign government436 — 9 427 
Total fixed maturities$295,547 $596 $15,142 $281,001 
December 31, 2023
U.S. government and agency securities$25,995 $10 $3 $26,002 
Corporate securities55,230 9 7,213 48,026 
Mortgage-backed securities40,876 — 6,254 34,622 
States, municipalities and political subdivisions19,168 — 2,204 16,964 
Asset-backed securities10,691 — 1,206 9,485 
Public utilities3,726 — 438 3,288 
Foreign government— — — — 
Total fixed maturities$155,686 $19 $17,318 $138,387 

Equity securities are summarized as follows at:
December 31, 2024December 31, 2023
Estimated Fair ValuePercent of TotalEstimated Fair ValuePercent of Total
Mutual funds$31,818 86.5 %$— — %
Other common stocks4,976 13.5 — — 
Total equity securities$36,794 100.0 %$— — %
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, 2024, 2023 and 2022:

202420232022
Gains
(Losses)
Fair Value at Sale (1)
Gains
(Losses)
Fair Value at Sale (1)
Gains (Losses)
Fair Value at Sale (1)
Fixed maturities$— $10,720 $4 $7,315 $88 $27,249 
Equity securities— — 165 5,786 — — 
Short-term investments— 9,000 — 126 — — 
Other investments— 2,000 3 1,151 — — 
Total realized gains— 21,720 172 14,378 88 27,249 
Fixed maturities(124)443 (6,296)39,225 (6,600)87,577 
Equity securities— — (665)10,372 — — 
Short-term investments— 4,999 — — — — 
Total realized losses(124)5,442 (6,961)49,597 (6,600)87,577 
Net realized investment gains (losses)$(124)$27,162 $(6,789)$63,975 $(6,512)$114,826 
(1) Fair Value at Sale includes maturities and paydowns executed at par value.

The table below summarizes our fixed maturities at December 31, 2024, 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, 2024
Cost or Amortized CostPercent of TotalFair ValuePercent of Total
Due in one year or less$105,803 35.8 %$106,110 37.7 %
Due after one year through five years104,319 35.3 %101,342 36.1 %
Due after five years through ten years35,198 11.9 %30,105 10.7 %
Due after ten years1,991 0.7 %1,546 0.6 %
Asset and mortgage-backed securities48,236 16.3 %41,898 14.9 %
Total$295,547 100.0 %$281,001 100.0 %



The following table summarizes our net investment income by major investment category:
Year Ended December 31,
202420232022
Fixed maturities$7,132 $3,061 $4,739 
Equity securities386 80 305 
Cash and cash equivalents12,624 5,411 1,205 
Other investments918 (68)214 
Investment income21,060 8,484 6,463 
Investment expenses(265)(184)(420)
Net investment income$20,795 $8,300 $6,043 
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 or 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 income (loss).

During the year ended December 31, 2024, 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 result from credit losses. Therefore, no credit loss allowance was recorded at December 31, 2024. 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, 2024 
U.S. government and agency securities2 $25 $5,878 — $— $— 
Corporate securities42 300 14,559 80 6,195 45,702 
Mortgage-backed securities4 26 1,244 61 5,407 29,218 
States, municipalities and political subdivisions4 25 1,330 27 1,882 15,868 
Asset-backed securities6 21 2,104 22 885 7,977 
Public utilities6 37 1,937 6 330 3,347 
Foreign governments1 9 427 — — — 
Total fixed maturities65 $443 $27,479 196 $14,699 $102,112 
December 31, 2023
U.S. government and agency securities9 $3 $19,943 — $— $— 
Corporate securities1 6 511 85 7,207 46,708 
Mortgage-backed securities1 5 269 69 6,249 34,353 
States, municipalities and political subdivisions1 7 507 29 2,197 16,457 
Asset-backed securities2 3 616 24 1,203 8,869 
Public utilities— — — 6 438 3,288 
Foreign governments— — — — — — 
Total fixed maturities14 $24 $21,846 213 $17,294 $109,675 
(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, 2024 and 2023. Changes in interest rates subsequent to December 31, 2024, 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 Sheets as of December 31, 2024.
The following table presents the fair value of our financial instruments measured on a recurring basis by level at December 31, 2024 and 2023:

TotalLevel 1Level 2Level 3
December 31, 2024
U.S. government and agency securities$154,660 $— $154,660 $— 
Corporate securities61,535 — 61,535 — 
Mortgage-backed securities30,462 — 30,462 — 
States, municipalities and political subdivisions17,197 — 17,197 — 
Asset-backed securities11,436 — 11,436 — 
Public utilities5,284 — 5,284 — 
Foreign government427 — 427 — 
Total fixed maturities281,001 — 281,001 — 
Mutual funds31,818 31,818 — — 
Other common stocks (1)
— — — — 
Total equity securities31,818 31,818 — — 
Other investments (2)
20,494 — 20,494 — 
Total investments$333,313 $31,818 $301,495 $— 
December 31, 2023
U.S. government and agency securities$26,002 $— $26,002 $— 
Corporate securities48,026 — 48,026 — 
Mortgage-backed securities34,622 — 34,622 — 
States, municipalities and political subdivisions16,964 — 16,964 — 
Asset-backed securities9,485 — 9,485 — 
Public utilities3,288 — 3,288 — 
Foreign government— — — — 
Total fixed maturities138,387 — 138,387 — 
Mutual Funds— — — — 
Other common stocks— — — — 
Total equity securities— — — — 
Other investments (2)
14,004 — 14,004 — 
Total investments$152,391 $— $152,391 $— 
(1) \Other common stocks in the fair value hierarchy exclude these common stock interests that are measured at estimated fair value using the net asset value per share (or its equivalent) practical expedient.
(2) Other 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, meaning, 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, 2024 and 2023.

    The carrying amounts for the following financial instrument categories approximate their fair values at December 31, 2024 and 2023, 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 (defined below) approximates 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 2024, 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, 2024 and 2023:
Book ValueUnrealized GainUnrealized LossFair Value
December 31, 2024
Limited partnership investments (1)
$2,556 $573 $— $3,129 
Short-term investments20,413 81 — 20,494 
Total other investments
$22,969 $654 $— $23,623 
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 
(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,
20242023
Trust funds$62,013 $17,439 
Cash on deposit (regulatory deposits)344 631 
     Total restricted cash$62,357 $18,070