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Investments | 6 Months Ended
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Jun. 30, 2024
Investments [Abstract] |
Investments | 3. Investments The amortized cost and estimated fair value of fixed income securities, presented on a consolidated basis, including both continuing and discontinued operations, as of June 30, 2024, and December 31, 2023, were as follows:
|  | June 30, 2024 |
|  | Cost or Amortized Cost |  |  | Allowance for Expected Credit Losses |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
Fixed income securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government and agencies |  | $ | 12,075 |  |  | $ | — |  |  | $ | 21 |  |  | $ | (355 | ) |  | $ | 11,741 |
Obligations of states and political subdivisions |  |  | 56,568 |  |  |  | — |  |  |  | 191 |  |  |  | (4,897 | ) |  |  | 51,862 |
Corporate securities |  |  | 125,282 |  |  |  | — |  |  |  | 138 |  |  |  | (8,980 | ) |  |  | 116,440 |
Residential mortgage-backed securities |  |  | 48,926 |  |  |  | — |  |  |  | 38 |  |  |  | (5,061 | ) |  |  | 43,903 |
Commercial mortgage-backed securities |  |  | 28,301 |  |  |  | — |  |  |  | 61 |  |  |  | (3,324 | ) |  |  | 25,038 |
Asset-backed securities |  |  | 54,596 |  |  |  | — |  |  |  | 236 |  |  |  | (3,699 | ) |  |  | 51,133 |
Redeemable preferred stocks |  |  | 3,738 |  |  |  | — |  |  |  | — |  |  |  | (440 | ) |  |  | 3,298 |
Total fixed income securities |  | $ | 329,486 |  |  | $ | — |  |  | $ | 685 |  |  | $ | (26,756 | ) |  | $ | 303,415 |
|  | December 31, 2023 |
|  | Cost or Amortized Cost |  |  | Allowance for Expected Credit Losses |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
Fixed income securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government and agencies |  | $ | 10,998 |  |  | $ | — |  |  | $ | — |  |  | $ | (736 | ) |  | $ | 10,262 |
Obligations of states and political subdivisions |  |  | 55,769 |  |  |  | — |  |  |  | 408 |  |  |  | (4,716 | ) |  |  | 51,461 |
Corporate securities |  |  | 152,630 |  |  |  | — |  |  |  | 442 |  |  |  | (10,856 | ) |  |  | 142,216 |
Residential mortgage-backed securities |  |  | 66,362 |  |  |  | — |  |  |  | 180 |  |  |  | (5,379 | ) |  |  | 61,163 |
Commercial mortgage-backed securities |  |  | 33,532 |  |  |  | — |  |  |  | 148 |  |  |  | (4,241 | ) |  |  | 29,439 |
Asset-backed securities |  |  | 52,692 |  |  |  | — |  |  |  | 142 |  |  |  | (3,805 | ) |  |  | 49,029 |
Redeemable preferred stocks |  |  | 4,747 |  |  |  | — |  |  |  | — |  |  |  | (586 | ) |  |  | 4,161 |
Total fixed income securities |  | $ | 376,730 |  |  | $ | — |  |  | $ | 1,320 |  |  | $ | (30,319 | ) |  | $ | 347,731 |
The reconciliation of the amortized cost and estimated fair value of fixed income securities for continuing and discontinued operations as of June 30, 2024, and December 31, 2023, were as follows:
|  | June 30, 2024 |
|  | Cost or Amortized Cost |  |  | Allowance for Expected Credit Losses |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
Fixed income securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Continuing operations |  | $ | 329,486 |  |  | $ | — |  |  | $ | 685 |  |  | $ | (26,756 | ) |  | $ | 303,415 |
Discontinued operations |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total fixed income securities |  | $ | 329,486 |  |  | $ | — |  |  | $ | 685 |  |  | $ | (26,756 | ) |  | $ | 303,415 |
|  | December 31, 2023 |
|  | Cost or Amortized Cost |  |  | Allowance for Expected Credit Losses |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
Fixed income securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Continuing operations |  | $ | 313,182 |  |  | $ | — |  |  | $ | 1,116 |  |  | $ | (24,899 | ) |  | $ | 289,399 |
Discontinued operations |  |  | 63,548 |  |  |  | — |  |  |  | 204 |  |  |  | (5,420 | ) |  |  | 58,332 |
Total fixed income securities |  | $ | 376,730 |  |  | $ | — |  |  | $ | 1,320 |  |  | $ | (30,319 | ) |  | $ | 347,731 |
The amortized cost and estimated fair value of fixed income securities by contractual maturity, presented on a consolidated basis, including both continuing and discontinued operations, are shown below. Actual maturities could differ from contractual maturities because issuers may have the right to call or prepay these securities.
|  | June 30, 2024 |
|  | Amortized Cost |  |  | Fair Value |
Due to mature: |  |  |  |  |  |  |  |
One year or less |  | $ | 12,663 |  |  | $ | 12,454 |
After one year through five years |  |  | 64,545 |  |  |  | 61,560 |
After five years through ten years |  |  | 72,035 |  |  |  | 65,882 |
After ten years |  |  | 44,682 |  |  |  | 40,147 |
Mortgage / asset-backed securities |  |  | 131,823 |  |  |  | 120,074 |
Redeemable preferred stocks |  |  | 3,738 |  |  |  | 3,298 |
Total fixed income securities |  | $ | 329,486 |  |  | $ | 303,415 |
|  | December 31, 2023 |
|  | Amortized Cost |  |  | Fair Value |
Due to mature: |  |  |  |  |  |  |  |
One year or less |  | $ | 9,612 |  |  | $ | 9,436 |
After one year through five years |  |  | 75,794 |  |  |  | 72,602 |
After five years through ten years |  |  | 86,185 |  |  |  | 79,281 |
After ten years |  |  | 47,806 |  |  |  | 42,620 |
Mortgage / asset-backed securities |  |  | 152,586 |  |  |  | 139,631 |
Redeemable preferred stocks |  |  | 4,747 |  |  |  | 4,161 |
Total fixed income securities |  | $ | 376,730 |  |  | $ | 347,731 |
Fixed income securities with a fair value of $7,245 at June 30, 2024, and $6,403 at December 31, 2023, were deposited with various state regulatory agencies as required by law. The Company has not pledged any assets to secure any obligations. The investment category and duration of the Company’s gross unrealized losses on fixed income securities, presented on a consolidated basis, including both continuing and discontinued operations, are shown below. Investments with unrealized losses are categorized with a duration of greater than 12 months when all positions of a security have continually been in a loss position for at least 12 months.
|  | June 30, 2024 |
|  | Less than 12 Months |  |  | Greater than 12 months |  |  | Total |
|  | Fair Value |  |  | Unrealized Losses |  |  | Fair Value |  |  | Unrealized Losses |  |  | Fair Value |  |  | Unrealized Losses |
Fixed income securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government and agencies |  | $ | 3,212 |  |  | $ | (28 | ) |  | $ | 6,071 |  |  | $ | (327 | ) |  | $ | 9,283 |  |  | $ | (355 | )
Obligations of states and political subdivisions |  |  | 9,019 |  |  |  | (112 | ) |  |  | 36,207 |  |  |  | (4,785 | ) |  |  | 45,226 |  |  |  | (4,897 | )
Corporate securities |  |  | 14,678 |  |  |  | (240 | ) |  |  | 91,589 |  |  |  | (8,740 | ) |  |  | 106,267 |  |  |  | (8,980 | )
Residential mortgage-backed securities |  |  | 8,535 |  |  |  | (121 | ) |  |  | 30,354 |  |  |  | (4,940 | ) |  |  | 38,889 |  |  |  | (5,061 | )
Commercial mortgage-backed securities |  |  | 1,928 |  |  |  | (42 | ) |  |  | 21,112 |  |  |  | (3,282 | ) |  |  | 23,040 |  |  |  | (3,324 | )
Asset-backed securities |  |  | 6,526 |  |  |  | (43 | ) |  |  | 23,230 |  |  |  | (3,656 | ) |  |  | 29,756 |  |  |  | (3,699 | )
Redeemable preferred stocks |  |  | — |  |  |  | — |  |  |  | 3,297 |  |  |  | (440 | ) |  |  | 3,297 |  |  |  | (440 | )
Total fixed income securities |  | $ | 43,898 |  |  | $ | (586 | ) |  | $ | 211,860 |  |  | $ | (26,170 | ) |  | $ | 255,758 |  |  | $ | (26,756 | )
|  | December 31, 2023 |
|  | Less than 12 Months |  |  | Greater than 12 months |  |  | Total |
|  | Fair Value |  |  | Unrealized Losses |  |  | Fair Value |  |  | Unrealized Losses |  |  | Fair Value |  |  | Unrealized Losses |
Fixed income securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government and agencies |  | $ | — |  |  | $ | — |  |  | $ | 9,018 |  |  | $ | (736 | ) |  | $ | 9,018 |  |  | $ | (736 | )
Obligations of states and political subdivisions |  |  | 5,239 |  |  |  | (359 | ) |  |  | 36,194 |  |  |  | (4,357 | ) |  |  | 41,433 |  |  |  | (4,716 | )
Corporate securities |  |  | 8,018 |  |  |  | (93 | ) |  |  | 110,117 |  |  |  | (10,763 | ) |  |  | 118,135 |  |  |  | (10,856 | )
Residential mortgage-backed securities |  |  | 12,054 |  |  |  | (104 | ) |  |  | 33,341 |  |  |  | (5,275 | ) |  |  | 45,395 |  |  |  | (5,379 | )
Commercial mortgage-backed securities |  |  | 2,678 |  |  |  | (5 | ) |  |  | 23,713 |  |  |  | (4,236 | ) |  |  | 26,391 |  |  |  | (4,241 | )
Asset-backed securities |  |  | 4,463 |  |  |  | (18 | ) |  |  | 30,200 |  |  |  | (3,787 | ) |  |  | 34,663 |  |  |  | (3,805 | )
Redeemable preferred stocks |  |  | — |  |  |  | — |  |  |  | 4,161 |  |  |  | (586 | ) |  |  | 4,161 |  |  |  | (586 | )
Total fixed income securities |  | $ | 32,452 |  |  | $ | (579 | ) |  | $ | 246,744 |  |  | $ | (29,740 | ) |  | $ | 279,196 |  |  | $ | (30,319 | )
The reconciliation for continuing and discontinued operations by duration of the Company’s gross unrealized losses on fixed income securities are shown below.
|  | June 30, 2024 |
|  | Less than 12 Months |  |  | Greater than 12 months |  |  | Total |
|  | Fair Value |  |  | Unrealized Losses |  |  | Fair Value |  |  | Unrealized Losses |  |  | Fair Value |  |  | Unrealized Losses |
Fixed income securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Continuing operations |  | $ | 43,898 |  |  | $ | (586 | ) |  | $ | 211,860 |  |  | $ | (26,170 | ) |  | $ | 255,758 |  |  | $ | (26,756 | )
Discontinued operations |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total fixed income securities |  | $ | 43,898 |  |  | $ | (586 | ) |  | $ | 211,860 |  |  | $ | (26,170 | ) |  | $ | 255,758 |  |  | $ | (26,756 | )
|  | December 31, 2023 |
|  | Less than 12 Months |  |  | Greater than 12 months |  |  | Total |
|  | Fair Value |  |  | Unrealized Losses |  |  | Fair Value |  |  | Unrealized Losses |  |  | Fair Value |  |  | Unrealized Losses |
Fixed income securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Continuing operations |  | $ | 24,049 |  |  | $ | (509 | ) |  | $ | 211,367 |  |  | $ | (24,390 | ) |  | $ | 235,416 |  |  | $ | (24,899 | )
Discontinued operations |  |  | 8,403 |  |  |  | (70 | ) |  |  | 35,377 |  |  |  | (5,350 | ) |  |  | 43,780 |  |  |  | (5,420 | )
Total fixed income securities |  | $ | 32,452 |  |  | $ | (579 | ) |  | $ | 246,744 |  |  | $ | (29,740 | ) |  | $ | 279,196 |  |  | $ | (30,319 | )
We, along with our investment advisor, frequently review our investment portfolio for declines in fair value that could be indicative of credit losses. Beginning on December 31, 2022, credit losses are recognized through an allowance account. We consider a number of factors when determining if an allowance for credit losses is necessary, including payment and default history, credit spreads, credit ratings and rating actions, and probability of default. We determine the credit loss component of fixed income investments by utilizing discounted cash flow modeling to determine the present value of the security and comparing the present value with the amortized cost of the security. We did not recognize any credit losses for fixed income securities at the time of adoption of the new credit loss accounting standard and have not recognized any credit losses for fixed income securities since adoption of the credit loss standard. Therefore, there were no beginning or ending balances of credit losses as of the six months ended June 30, 2024 or the year ended December 31, 2023. See Item II, Part 8, Note 3 “Summary of Significant Accounting Policies” section of the 2023 Annual Report for additional information. Net investment income for continuing and discontinued operations consisted of the following:
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Continuing operations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed income securities |  | $ | 2,624 |  |  | $ | 2,283 |  |  | $ | 5,496 |  |  | $ | 4,466 |
Equity securities |  |  | 182 |  |  |  | 207 |  |  |  | 423 |  |  |  | 448 |
Real estate |  |  | 92 |  |  |  | 97 |  |  |  | 189 |  |  |  | 195 |
Cash and cash equivalents |  |  | 432 |  |  |  | 67 |  |  |  | 869 |  |  |  | 99 |
Total gross investment income |  |  | 3,330 |  |  |  | 2,654 |  |  |  | 6,977 |  |  |  | 5,208 |
Investment expenses |  |  | 807 |  |  |  | 731 |  |  |  | 1,699 |  |  |  | 1,594 |
Net investment income – continuing operations |  |  | 2,523 |  |  |  | 1,923 |  |  |  | 5,278 |  |  |  | 3,614 |
Net investment income – discontinued operations |  |  | 621 |  |  |  | 582 |  |  |  | 1,419 |  |  |  | 1,130 |
Net investment income |  | $ | 3,144 |  |  | $ | 2,505 |  |  | $ | 6,697 |  |  | $ | 4,744 |
Net investment gains (losses) for continuing and discontinued operations consisted of the following:
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Continuing operations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross realized gains: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed income securities |  | $ | — |  |  | $ | — |  |  | $ | 9 |  |  | $ | — |
Equity securities |  |  | 191 |  |  |  | 344 |  |  |  | 381 |  |  |  | 13,018 |
Total gross realized gains |  |  | 191 |  |  |  | 344 |  |  |  | 390 |  |  |  | 13,018 |
Gross realized losses, excluding credit impairment losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed income securities |  |  | — |  |  |  | (185 | ) |  |  | (15 | ) |  |  | (440 | )
Equity securities |  |  | (182 | ) |  |  | (257 | ) |  |  | (457 | ) |  |  | (1,041 | )
Total gross realized losses, excluding credit impairment losses |  |  | (182 | ) |  |  | (442 | ) |  |  | (472 | ) |  |  | (1,481 | )
Net realized gains (losses) |  |  | 9 |  |  |  | (98 | ) |  |  | (82 | ) |  |  | 11,537 |
Change in net unrealized gains on equity securities |  |  | (589 | ) |  |  | (75 | ) |  |  | 958 |  |  |  | (10,307 | )
Net investment gains (losses) – continuing operations |  |  | (580 | ) |  |  | (173 | ) |  |  | 876 |  |  |  | 1,230 |
Net investment gains (losses) – discontinued operations |  |  | (256 | ) |  |  | (1 | ) |  |  | 116 |  |  |  | 12 |
Net investment gains (losses) |  | $ | (836 | ) |  | $ | (174 | ) |  | $ | 992 |  |  | $ | 1,242 |

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