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Note 6 - Investments

3 Months Ended

Mar. 31, 2025

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	)