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Note 6 - Investments | 3 Months Ended
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Mar. 31, 2025
Notes to Financial Statements |
Investment [Text Block] | NOTE 6 INVESTMENTS The amortized cost, gross unrealized gains and losses included in accumulated other comprehensive loss, and estimated fair value of the Company's available-for-sale investments at March 31, 2025 and December 31, 2024 are summarized in the tables shown below:
(in thousands) |  | March 31, 2025 |
|  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Estimated Fair Value |
Fixed maturities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government, government agencies and authorities |  | $ | 13,589 |  |  | $ | 46 |  |  | $ | 129 |  |  | $ | 13,506 |
States, municipalities and political subdivisions |  |  | 2,602 |  |  |  | 3 |  |  |  | 56 |  |  |  | 2,549 |
Mortgage-backed |  |  | 9,852 |  |  |  | 29 |  |  |  | 321 |  |  |  | 9,560 |
Asset-backed |  |  | 1,338 |  |  |  | 4 |  |  |  | 19 |  |  |  | 1,323 |
Corporate |  |  | 10,342 |  |  |  | 26 |  |  |  | 350 |  |  |  | 10,018 |
Total fixed maturities |  | $ | 37,723 |  |  | $ | 108 |  |  | $ | 875 |  |  | $ | 36,956 |
(in thousands) |  | December 31, 2024 |
|  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Estimated Fair Value |
Fixed maturities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government, government agencies and authorities |  | $ | 13,561 |  |  | $ | 11 |  |  | $ | 218 |  |  | $ | 13,354 |
States, municipalities and political subdivisions |  |  | 2,846 |  |  |  | 2 |  |  |  | 73 |  |  |  | 2,775 |
Mortgage-backed |  |  | 10,309 |  |  |  | 10 |  |  |  | 433 |  |  |  | 9,886 |
Asset-backed |  |  | 1,346 |  |  |  | 2 |  |  |  | 22 |  |  |  | 1,326 |
Corporate |  |  | 10,055 |  |  |  | 9 |  |  |  | 442 |  |  |  | 9,622 |
Total fixed maturities |  | $ | 38,117 |  |  | $ | 34 |  |  | $ | 1,188 |  |  | $ | 36,963 |
The table below summarizes the Company's fixed maturities at March 31, 2025 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 maturity of these obligations.
(in thousands) |  | March 31, 2025 |
|  | Amortized Cost |  |  | Estimated Fair Value |
Due in one year or less |  | $ | 7,264 |  |  | $ | 7,220 |
Due after one year through five years |  |  | 24,396 |  |  |  | 23,986 |
Due after five years through ten years |  |  | 2,204 |  |  |  | 2,170 |
Due after ten years |  |  | 3,859 |  |  |  | 3,580 |
Total |  | $ | 37,723 |  |  | $ | 36,956 |
The following tables highlight the aggregate unrealized loss position, by security type, of available-for-sale investments in unrealized loss positions where no credit loss allowance had been established as of March 31, 2025 and December 31, 2024. The tables segregate the holdings based on the period of time the investments have been continuously held in unrealized loss positions.
(in thousands) |  | March 31, 2025 |
|  | Less than 12 Months |  |  | Greater than 12 Months |  |  | Total |
|  | Estimated Fair Value |  |  | Unrealized Loss |  |  | Estimated Fair Value |  |  | Unrealized Loss |  |  | Estimated Fair Value |  |  | Unrealized Loss |
Fixed maturities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government, government agencies and authorities |  | $ | 1,878 |  |  | $ | 17 |  |  | $ | 4,431 |  |  | $ | 112 |  |  | $ | 6,309 |  |  | $ | 129 |
States, municipalities and political subdivisions |  |  | 323 |  |  |  | 1 |  |  |  | 1,380 |  |  |  | 55 |  |  |  | 1,703 |  |  |  | 56 |
Mortgage-backed |  |  | 1,591 |  |  |  | 19 |  |  |  | 4,100 |  |  |  | 302 |  |  |  | 5,691 |  |  |  | 321 |
Asset-backed |  |  | 314 |  |  |  | — |  |  |  | 537 |  |  |  | 19 |  |  |  | 851 |  |  |  | 19 |
Corporate |  |  | 596 |  |  |  | 4 |  |  |  | 6,962 |  |  |  | 346 |  |  |  | 7,558 |  |  |  | 350 |
Total fixed maturities |  | $ | 4,702 |  |  | $ | 41 |  |  | $ | 17,410 |  |  | $ | 834 |  |  | $ | 22,112 |  |  | $ | 875 |
(in thousands) |  | December 31, 2024 |
|  | Less than 12 Months |  |  | Greater than 12 Months |  |  | Total |
|  | Estimated Fair Value |  |  | Unrealized Loss |  |  | Estimated Fair Value |  |  | Unrealized Loss |  |  | Estimated Fair Value |  |  | Unrealized Loss |
Fixed maturities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government, government agencies and authorities |  | $ | 2,417 |  |  | $ | 28 |  |  | $ | 7,984 |  |  | $ | 190 |  |  | $ | 10,401 |  |  | $ | 218 |
States, municipalities and political subdivisions |  |  | 331 |  |  |  | 1 |  |  |  | 1,981 |  |  |  | 72 |  |  |  | 2,312 |  |  |  | 73 |
Mortgage-backed |  |  | 3,006 |  |  |  | 57 |  |  |  | 5,477 |  |  |  | 376 |  |  |  | 8,483 |  |  |  | 433 |
Asset-backed |  |  | 254 |  |  |  | — |  |  |  | 756 |  |  |  | 22 |  |  |  | 1,010 |  |  |  | 22 |
Corporate |  |  | 966 |  |  |  | 10 |  |  |  | 7,274 |  |  |  | 432 |  |  |  | 8,240 |  |  |  | 442 |
Total fixed maturities |  | $ | 6,974 |  |  | $ | 96 |  |  | $ | 23,472 |  |  | $ | 1,092 |  |  | $ | 30,446 |  |  | $ | 1,188 |
At March 31, 2025 and December 31, 2024, there are approximately 155 and 191 individual available-for-sale investments, respectively, that were in unrealized loss positions, for which an allowance for credit losses has not been recorded. The Company did not have the intent to sell these investments, and it was not more likely than not that the Company would be required to sell these investments before recovery of its amortized cost. The Company evaluated these investments for credit losses at March 31, 2025 and December 31, 2024. The Company considers many factors in evaluating whether the unrealized losses were credit related including, but not limited to, the extent to which the fair value is less than amortized cost, conditions related to the security, industry, or geographic area, payment structure of the investment and the likelihood of the issuer’s ability to make contractual cashflows, defaults or other collectability concerns related to the issuer, changes in the ratings assigned by a rating agency, and other credit enhancements that affect the investment’s expected performance. The Company determined that the unrealized losses on the fixed maturity investments were due to non-credit related factors at March 31, 2025 and December 31, 2024. The establishment of an impairment loss on an investment requires a number of judgments and estimates. Refer to the "Significant Accounting Policies and Critical Estimates" section of Management's Discussion and Analysis of Financial Condition included in the 2024 Annual Report for further information regarding the Company's detailed analysis and factors considered in recording an impairment loss on an investment. The Company did not record any write-downs for impairment related to available-for-sale fixed maturity investments for the three months ended March 31, 2025 and March 31, 2024. The Company does not have any exposure to subprime mortgage-backed investments. Limited liability investments include investments in limited liability companies and limited partnerships. The Company's interests in these investments are not deemed minor and, therefore, are accounted for under the equity method of accounting. The most recently available financial statements are used in applying the equity method. The difference between the end of the reporting period of the limited liability entities and that of the Company is no more than three months. As of March 31, 2025 and December 31, 2024, the carrying value of limited liability investments totaled $0.7 million. The Company recorded no impairments related to limited liability investments during the three months ended March 31, 2025 and March 31, 2024. Income or loss from limited liability investments is recognized based on the Company's share of the earnings of the limited liability entities and is included in net investment income in the consolidated statements of operations. At March 31, 2025, the Company had no unfunded commitments related to limited liability investments. Limited liability investment, at fair value represents the underlying investments of the Company’s consolidated entity, Argo Holdings Fund I, LLC ("Argo Holdings"). As of March 31, 2025 and December 31, 2024, the carrying value of the Company's limited liability investment, at fair value was $2.9 million. At March 31, 2025, the Company had no unfunded commitments to fund limited liability investment, at fair value. Investments in private companies consist of convertible preferred stocks and notes in privately owned companies and investments in limited liability companies in which the Company’s interests are deemed minor. The Company's investments in private companies do not have readily determinable fair values. The Company has elected to record investments in private companies at cost, adjusted for observable price changes and impairments. As of March 31, 2025 and December 31, 2024, the carrying value of the Company's investments in private companies totaled $0.6 million and $0.7 million, respectively. For the three months ended March 31, 2025 and March 31, 2024, the Company did not record any adjustments to the carrying value of its investments in private companies for observable price changes. The Company performs a quarterly impairment analysis of its investments in private companies. As a result of the analysis performed, the Company did not record any impairments related to investments in private companies for the three months ended March 31, 2025 and March 31, 2024. Net investment income for the three months ended March 31, 2025 and March 31, 2024 is comprised as follows:
(in thousands) |  | Three months ended March 31, |
|  | 2025 |  |  | 2024 |
Investment income: |  |  |  |  |  |  |  |
Interest from fixed maturities |  | $ | 336 |  |  | $ | 312 |
Dividends |  |  | 10 |  |  |  | 12 |
Loss from limited liability investments |  |  | — |  |  |  | (60 | )
Other |  |  | 70 |  |  |  | 93 |
Gross investment income |  |  | 416 |  |  |  | 357 |
Investment expenses |  |  | (36 | ) |  |  | (31 | )
Net investment income |  | $ | 380 |  |  | $ | 326 |
Net realized (losses) gains on investments for the three months ended March 31, 2025 and March 31, 2024 are comprised as follows:
(in thousands) |  | Three months ended March 31, |
|  | 2025 |  |  | 2024 |
Available-for-sale fixed maturities: |  |  |  |  |  |  |  |
Gross realized gains |  | $ | — |  |  | $ | — |
Gross realized losses |  |  | (72 | ) |  |  | — |
Net realized losses on available-for-sale fixed maturities |  |  | (72 | ) |  |  | — |
Limited liability investment, at fair value |  |  | — |  |  |  | 115 |
Investments in private companies |  |  | 1 |  |  |  | 9 |
Net realized (losses) gains |  | $ | (71 | ) |  | $ | 124 |
Net loss on equity investments for the three months ended March 31, 2025 and March 31, 2024 is comprised as follows:
(in thousands) |  | Three months ended March 31, |
|  | 2025 |  |  | 2024 |
Net losses recognized on equity investments sold during the period |  | $ | — |  |  | $ | (3 | )
Change in net unrealized (losses) gains recognized on equity investments held at end of the period |  |  | — |  |  |  | — |
Net loss on equity investments |  | $ | — |  |  | $ | (3 | )

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