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Note 6 - Investments

9 Months Ended

Sep. 30, 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 September 30, 2025 and December 31, 2024 are summarized in the tables shown below:

(in thousands)	September 30, 2025
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Fixed maturities:
U.S. government, government agencies and authorities	$	14,360	$	88	$	68	$	14,380
States, municipalities and political subdivisions		1,788		3		27		1,764
Mortgage-backed		10,079		68		250		9,897
Asset-backed		1,227		10		13		1,224
Corporate		10,310		52		227		10,135
Total fixed maturities	$	37,764	$	221	$	585	$	37,400

(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 September 30, 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)	September 30, 2025
	Amortized Cost		Estimated Fair Value
Due in one year or less	$	7,494	$	7,433
Due after one year through five years		23,449		23,368
Due after five years through ten years		2,533		2,521
Due after ten years		4,288		4,078
Total	$	37,764	$	37,400

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 September 30, 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)	September 30, 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	$	2,471	$	20	$	2,103	$	48	$	4,574	$	68
States, municipalities and political subdivisions		299		1		1,082		26		1,381		27
Mortgage-backed		813		3		3,456		247		4,269		250
Asset-backed		61		—		451		13		512		13
Corporate		425		1		6,263		226		6,688		227
Total fixed maturities	$	4,069	$	25	$	13,355	$	560	$	17,424	$	585

(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 September 30, 2025 and December 31, 2024, there are approximately 128 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 September 30, 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 September 30, 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 and nine months ended September 30, 2025 and September 30, 2024.

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 September 30, 2025 and December 31, 2024, the carrying value of limited liability investments totaled $0.6 million. The Company recorded no impairments related to limited liability investments during the three and nine months ended September 30, 2025 and September 30, 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 September 30, 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 September 30, 2025 and December 31, 2024, the carrying value of the Company's limited liability investment, at fair value was $3.1 million and $2.9 million, respectively. At September 30, 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 September 30, 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 and nine months ended September 30, 2025 and September 30, 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 and nine months ended September 30, 2025 and September 30, 2024.

Net investment income for the three and nine months ended September 30, 2025 and September 30, 2024 is comprised as follows:

(in thousands)	Three months ended September 30,						Nine months ended September 30,
	2025			2024			2025			2024
Investment income:
Interest from fixed maturities	$	357		$	331		$	1,044		$	968
Dividends		10			11			30			39
(Loss) income from limited liability investments		(1	)		1			(1	)		(161	)
Other		108			98			251			300
Gross investment income		474			441			1,324			1,146
Investment expenses		(43	)		(38	)		(103	)		(109	)
Net investment income	$	431		$	403		$	1,221		$	1,037

Net realized (losses) gains on investments for the three and nine months ended September 30, 2025 and September 30, 2024 are comprised as follows:

(in thousands)	Three months ended September 30,					Nine months ended September 30,
	2025			2024		2025			2024
Available-for-sale fixed maturities:
Gross realized gains	$	—		$	—	$	—		$	—
Gross realized losses		(9	)		—		(85	)		—
Net realized losses on available-for-sale fixed maturities		(9	)		—		(85	)		—
Limited liability investment, at fair value		34			874		129			1,260
Investments in private companies		(30	)		84		8			99
Net realized (losses) gains	$	(5	)	$	958	$	52		$	1,359

Net loss on equity investments for the three and nine months ended September 30, 2025 and September 30, 2024 is comprised as follows:

(in thousands)	Three months ended September 30,				Nine months ended September 30,
	2025		2024		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	)