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Investments
 3 Months Ended
Mar. 31, 2025
Investments, Debt and Equity Securities [Abstract]  
Investments INVESTMENTS
The following table details fixed-maturity available-for-sale securities, by major investment category, at March 31, 2025 and December 31, 2024:
Cost or Adjusted/Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
March 31, 2025
U.S. government and agency securities$150,075 $664 $— $150,739 
Corporate securities69,184 36 5,436 63,784 
Mortgage-backed securities35,613 3 4,787 30,829 
States, municipalities and political subdivisions21,290 9 1,618 19,681 
Asset-backed securities12,243 8 773 11,478 
Public utilities6,134 12 292 5,854 
Foreign government599 1 5 595 
Total fixed maturities$295,138 $733 $12,911 $282,960 
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 


Equity securities are summarized as follows:
March 31, 2025December 31, 2024
Estimated Fair ValuePercent of TotalEstimated Fair ValuePercent of Total
Mutual funds$24,234 83.0 %$31,818 86.5 %
Other common stocks4,976 17.0 4,976 13.5 
Total equity securities$29,210 100.0 %$36,794 100.0 %
When the Company sells investments, the Company calculates 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. The Company determines the cost or adjusted/amortized cost of the security sold using the specific-identification method. The following table details the Company's realized gains (losses) by major investment category for the three months ended March 31, 2025 and 2024, respectively:

20252024
Gains
(Losses)
Fair Value at Sale(1)
Gains
(Losses)
Fair Value at Sale(1)
Three Months Ended March 31,
Fixed maturities$2 $6,311 $— $994 
Equity securities1,383 9,998 — — 
Short-term investments
— 149 — — 
Other investments— — — 2,000 
Total realized gains1,385 16,458 — 2,994 
Fixed maturities(3)1,000 — — 
Total realized losses(3)1,000 — — 
Net realized investment gains$1,382 $17,458 $— $2,994 
(1) Fair value at sale includes maturities and paydowns executed at par value.

The table below summarizes the Company's fixed maturities at March 31, 2025 by contractual maturity period. 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.

March 31, 2025
Cost or Amortized CostPercent of TotalFair ValuePercent of Total
Due in one year or less$102,785 34.8 %$102,897 36.4 %
Due after one year through five years109,528 37.2 107,346 37.8 
Due after five years through ten years31,686 10.7 27,701 9.8 
Due after ten years3,283 1.1 2,709 1.0 
Asset and mortgage-backed securities47,856 16.2 42,307 15.0 
Total$295,138 100.0 %$282,960 100.0 %


The following table summarizes net investment income by major investment category:

Three Months Ended March 31,
20252024
Fixed maturities$2,646 $946 
Equity securities130 13 
Cash and cash equivalents1,554 2,950 
Other investments270 155 
Investment income4,600 4,064 
Investment expenses(89)(47)
Net investment income$4,511 $4,017 
Portfolio Monitoring

The Company has a quarterly portfolio monitoring process to identify and evaluate each fixed-income security whose carrying value may be impaired as a result of a credit loss. For each fixed-income security in an unrealized loss position, if the Company determines that it intends to sell the security or that it is more likely than not that it 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 management decides not to sell the fixed-income security and it is more likely than not that the Company will not be required to sell the fixed-income security before recovery of its amortized cost basis, the Company evaluates 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 is 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 three months ended March 31, 2025, the Company determined that none of its 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 March 31, 2025. The issuers of the Company's debt security investments continue to make interest payments on a timely basis. The Company does not intend to sell, nor is it likely that it would be required to sell the debt securities before it recovers the 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 the Company's 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
March 31, 2025 
U.S. government and agency securities— $— $— — $— $— 
Corporate securities34 145 12,348 79 5,291 45,879 
Mortgage-backed securities9 13 1,965 59 4,774 28,009 
States, municipalities and political subdivisions5 13 1,808 26 1,605 15,302 
Asset-backed securities8 6 2,861 21 767 6,971 
Public utilities5 16 1,652 5 276 3,140 
Foreign governments1 5 429 — — — 
Total fixed maturities62 $198 $21,063 190 $12,713 $99,301 
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 
(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 the Company's 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 1: Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the Company 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 the Company's estimates of the assumptions that market participants would use in valuing the assets and liabilities.

The Company estimates 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, the Company uses 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. The Company's estimates of fair value reflect the interest rate environment that existed as of the close of business on March 31, 2025 and December 31, 2024. Changes in interest rates subsequent to March 31, 2025 may affect the fair value of the Company's investments.

The fair value of the Company's 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 the Company's fixed-income securities would impact the amount of unrealized gain or loss the Company has recorded, which could change the amount the Company has recorded for its investments and other comprehensive income (loss) on its Unaudited Condensed Consolidated Balance Sheets as of March 31, 2025.
The following table presents the fair value of the Company's financial instruments measured on a recurring basis by level at March 31, 2025 and December 31, 2024, respectively:

TotalLevel 1Level 2Level 3
March 31, 2025
U.S. government and agency securities$150,739 $— $150,739 $— 
Corporate securities63,784 — 63,784 — 
Mortgage-backed securities30,829 — 30,829 — 
States, municipalities and political subdivisions19,681 — 19,681 — 
Asset-backed securities11,478 — 11,478 — 
Public utilities5,854 — 5,854 — 
Foreign government595 — 595 — 
Total fixed maturities282,960 — 282,960 — 
Mutual funds24,234 24,234 — — 
Other common stocks (1)
— — — — 
Total equity securities24,234 24,234 — — 
Other investments (2)
20,407 — 20,407 — 
Total investments$327,601 $24,234 $303,367 $— 
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 $— 
(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 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 March 31, 2025 and December 31, 2024.

The carrying amounts for the following financial instrument categories approximate their fair values at March 31, 2025 and December 31, 2024, 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 the Company's senior notes approximate fair value as the interest rates and terms are variable.

The Company is responsible for the determination of fair value and the supporting assumptions and methodologies. The Company has implemented a system of processes and controls designed to provide assurance that its assets and liabilities are
appropriately valued. For fair values received from third parties, the Company's 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, the Company determines whether it needs to transfer the fair values of any securities between levels of the fair value hierarchy and, if so, the Company reports the transfer as of the end of the quarter. During the quarter ended March 31, 2025, the Company transferred no investments between levels.

For the Company's investments in U.S. government securities that do not have prices in active markets, agency securities, state and municipal governments, and corporate bonds, the Company obtains the fair values from its investment custodians, which use a third-party valuation service. The valuation service calculates prices for the Company's 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

The Company acquired investments in limited partnerships, recorded in the other investments line of the Company's Unaudited Condensed Consolidated Balance Sheets, and these investments are currently being measured at estimated fair value utilizing a net asset value per share practical expedient.

The information presented in the table below is as of March 31, 2025:

Book ValueUnrealized GainUnrealized LossFair Value
March 31, 2025
Limited partnership investments (1)
$2,633 $577 $— $3,210 
 Short-term investments
20,375 32 — 20,407 
Total other investments$23,008 $609 $— $23,617 
(1) Distributions will be generated from investment gains, from operating income, from underlying investments of funds, and from liquidation of the underlying assets of the funds. The Company estimates that the underlying assets of the funds will be liquidated over the next few months to five years.

Restricted Cash

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


The following table presents the components of restricted assets:
March 31, 2025December 31, 2024
Trust funds$65,538 $62,013 
Cash on deposit (regulatory deposits)347 344 
Total restricted cash$65,885 $62,357