Investments, Debt and Equity Securities [Abstract]

Summary of Amortized Cost and Estimated Fair Value Through Fixed Maturities

The amortized cost and estimated fair value of the Company’s fixed maturities portfolio classified as available for sale at December 31, 2024, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


(Dollars in thousands)	Amortized Cost		Estimated Fair Value
Due in one year or less	$	923,761	$	923,861
Due in one year through five years		184,069		180,523
Due in five years through ten years		9,524		8,600
Due after ten years		9,894		9,009
Mortgage-backed securities		61,905		58,920
Asset-backed securities		137,445		135,427
Commercial mortgage-backed securities		68,041		65,568
Total	$	1,394,639	$	1,381,908

Schedule of Impairments on Investments

The Company recorded the following impairments on its investment portfolio for the years ended December 31, 2024, 2023, and 2022 and are related to securities in an unrealized loss position where the Company had an intent to sell the securities:


	Years Ended December 31,
(Dollars in thousands)	2024		2023		2022 (1)
Fixed maturities:
Impairment related to intent to sell	$	—	$	—	$	(26,205	)
Total	$	—	$	—	$	(26,205	)

(1) In response to a rising interest rate environment, the Company took action early in April 2022 to shorten the duration of its fixed maturities portfolio. In connection with these actions, the Company identified fixed maturities securities with a weighted average life of five years or greater as having an intent to sell resulting in other-than-temporary impairment losses. The majority of which were sold in the second quarter of 2022. Since April 2022, the Company has been investing in securities with much shorter durations. As a result of these actions, the Company's book yield rose over time. Book yield was approximately 2.2% at December 31, 2021 and 4.4% at December 31, 2024.

Changes in Accumulated Other Comprehensive Income (Loss)

The following tables present the changes in accumulated other comprehensive income (loss) by components, for the years ended December 31, 2024 and 2023:


Year Ended December 31, 2024 (Dollars in thousands)	Unrealized Gains and Losses on Available for Sale Securities			Foreign Currency Items			Accumulated Other Comprehensive Income (Loss)
Beginning balance, net of tax	$	(22,715	)	$	(148	)	$	(22,863	)
Other comprehensive income (loss) before reclassification, before tax		14,712			(72	)		14,640
Amounts reclassified from accumulated other comprehensive income, before tax		856			—			856
Other comprehensive income (loss), before tax		15,568			(72	)		15,496
Income tax benefit (expense)		(3,058	)		15			(3,043	)
Ending balance, net of tax	$	(10,205	)	$	(205	)	$	(10,410	)


Year Ended December 31, 2023 (Dollars in thousands)	Unrealized Gains and Losses on Available for Sale Securities			Foreign Currency Items			Accumulated Other Comprehensive Income (Loss)
Beginning balance, net of tax	$	(42,958	)	$	(100	)	$	(43,058	)
Other comprehensive income (loss) before reclassification, before tax		23,572			(60	)		23,512
Amounts reclassified from accumulated other comprehensive income, before tax		1,654			—			1,654
Other comprehensive income (loss), before tax		25,226			(60	)		25,166
Income tax benefit (expense)		(4,983	)		12			(4,971	)
Ending balance, net of tax	$	(22,715	)	$	(148	)	$	(22,863	)

Components of Net Realized Investment Gains (Losses)

The components of net realized investment gains (losses) for the years ended December 31, 2024, 2023, and 2022 were as follows:


	Years Ended December 31,
(Dollars in thousands)	2024			2023			2022
Fixed maturities:
Gross realized gains	$	54		$	49		$	688
Gross realized losses		(910	)		(1,703	)		(40,298	)
Net realized gains (losses)		(856	)		(1,654	)		(39,610	)
Equity securities:
Gross realized gains		1,325			1,061			2,289
Gross realized losses		(14	)		(1,514	)		(5,681	)
Net realized gains (losses)		1,311			(453	)		(3,392	)
Derivatives:
Gross realized gains		—			—			12,844
Gross realized losses		—			—			(2,771	)
Net realized gains (losses) (1)		—			—			10,073
Total net realized investment gains (losses)	$	455		$	(2,107	)	$	(32,929	)

(1)

Includes periodic net interest settlements related to the derivatives of $3.0 million for the year ended December 31, 2022.

Proceeds from Sales and Redemptions of Available-for-Sale Securities

The proceeds from sales and redemptions of available for sale and equity securities resulting in net realized investment gains (losses) for the years ended December 31, 2024, 2023, and 2022 were as follows:


	Years Ended December 31,
(Dollars in thousands)	2024		2023		2022
Fixed maturities	$	112,507	$	148,164	$	933,554
Equity securities		—		1,158		88,726

Schedule of Total Investment Return

The Company’s total investment return on a pre-tax basis for the years ended December 31, 2024, 2023, and 2022 were as follows:


	Years Ended December 31,
(Dollars in thousands)	2024			2023			2022
Net investment income	$	62,375		$	55,444		$	27,627
Net realized investment gains (losses)		455			(2,107	)		(32,929	)
Change in unrealized holding gains (losses)		15,496			25,166			(61,627	)
Net realized and unrealized investment returns		15,951			23,059			(94,556	)
Total investment return	$	78,326		$	78,503		$	(66,929	)
Total investment return %		5.5	%		5.7	%		(4.7	%)
Average investment portfolio (1)	$	1,415,549		$	1,366,553		$	1,437,327

(1)

Average of total cash and invested assets, net of receivable/payable for securities, as of the beginning and end of the period.