Investments

12 Months Ended

Dec. 31, 2025

Investments, Debt and Equity Securities [Abstract]

The Company invests primarily in fixed maturity securities as shown below.


Carrying Value as of December 31, (In thousands, except for %)	2025		%		2024		%
Cash and invested assets:
Fixed maturity securities	$	1,287,861	87.9	%	$	1,220,961	86.0	%
Equity securities	1,356		0.1		5,447		0.4
Policy loans	67,455		4.6		71,216		5.0
Other long-term investments	85,439		5.8		93,604		6.6

Cash and cash equivalents	22,976		1.6		29,271		2.0
Total cash and invested assets	$	1,465,087	100.0	%	$	1,420,499	100.0	%

The following tables represent the amortized cost, gross unrealized gains and losses and fair value of fixed maturity securities as of the dates indicated.


December 31, 2025 (In thousands)	Amortized Cost		Gross Unrealized Gains	Gross Unrealized Losses	Fair Value
Fixed maturity securities:
U.S. Treasury securities	$	5,692	61	99	5,654
U.S. Government-sponsored enterprises	1,268		86	—	1,354
States and political subdivisions	294,347		1,881	27,436	268,792
Corporate:
Financial	323,056		4,137	26,847	300,346
Consumer	244,480		797	39,093	206,184
Utilities	136,005		829	20,048	116,786
Energy	82,205		473	7,622	75,056
Communications	69,719		256	8,454	61,521
All other	122,240		764	16,027	106,977
Commercial mortgage-backed	8,872		24	2	8,894
Residential mortgage-backed	111,243		28	8,183	103,088
Asset-backed	33,327		412	530	33,209

Total fixed maturity securities	$	1,432,454	9,748	154,341	1,287,861


December 31, 2024 (In thousands)	Amortized Cost		Gross Unrealized Gains	Gross Unrealized Losses	Fair Value
Fixed maturity securities:
U.S. Treasury securities	$	5,939	85	115	5,909
U.S. Government-sponsored enterprises	3,152		152	—	3,304
States and political subdivisions	300,757		1,087	33,542	268,302
Corporate:
Financial	272,925		1,593	33,285	241,233
Consumer	263,242		899	45,955	218,186
Utilities	126,361		220	22,770	103,811
Energy	79,247		40	9,959	69,328
Communications	70,896		111	9,910	61,097
All other	117,387		315	16,368	101,334
Commercial mortgage-backed	315		1	5	311
Residential mortgage-backed	106,661		7	13,026	93,642
Asset-backed	54,419		891	806	54,504

Total fixed maturity securities	$	1,401,301	5,401	185,741	1,220,961

The Company's investments in equity securities are shown below.


Fair Value as of December 31, (In thousands)	2025		2024
Equity securities:

Bond mutual funds	$	219	739
Common stock	1,130		810
Non-redeemable preferred stock	7		7
Non-redeemable preferred stock fund	—		3,891
Total equity securities	$	1,356	5,447

VALUATION OF INVESTMENTS

AFS fixed maturity securities are reported in the consolidated financial statements at fair value with the change in fair value recorded through other comprehensive income (loss). Equity securities are measured at fair value with the change in fair value recorded through net income (loss). The Company recognized net investment related losses of $0.1 million on equity securities held for the year ended December 31, 2025 and gains of $0.2 million on equity securities held for the year ended December 31, 2024.

The Company monitors all AFS fixed maturity securities on an on-going basis relative to changes in credit ratings, market prices, earnings trends and financial performance, in addition to specific region or industry reviews. The Company evaluates whether a credit impairment exists for fixed maturity securities by considering primarily the following factors: (a) changes in the financial condition of the security's underlying collateral; (b) whether the issuer is current on contractually obligated interest and principal payments; (c) changes in the financial condition, credit rating and near-term prospects of the issuer; and (d) the payment structure of the security. The Company's best estimate of expected future cash flows used to determine the credit loss amount is a quantitative and qualitative process. Quantitative review includes information received from third-party sources such as financial statements, pricing and rating changes, liquidity and other statistical information. Qualitative factors include judgments related to business strategies, economic impacts on the issuer, overall judgment related to estimates and industry factors as well as the Company's intent to sell the security, or if it is more likely than not that the Company would be required to sell a security before recovery of its amortized cost.

The Company's best estimate of future cash flows involves assumptions including, but not limited to, various performance indicators, such as historical and projected default and recovery rates, credit ratings, and current delinquency rates. These assumptions require the use of significant management judgment and include the probability of issuer default and estimates regarding timing and amount of expected recoveries, which may include estimating the underlying collateral value. In addition, projections of expected future fixed maturity security cash flows may change based upon new information regarding the performance of the issuer. Any credit losses are presented as an allowance rather than as a write-down on AFS fixed maturity securities management does not intend to sell or believes that it is more likely than not we will be required to sell.

The Company recorded no credit valuation losses on fixed maturity securities for the years ended December 31, 2025 and 2024.

For fixed maturity security investments that have unrealized losses as of December 31, 2025 and 2024, the gross unrealized losses and related fair values that have been in a continuous unrealized loss position by timeframe are as follows.


December 31, 2025	Less than 12 months				Greater than 12 months			Total
(In thousands, except for # of securities)	Fair Value		Unrealized Losses	# of Securities	Fair Value	Unrealized Losses	# of Securities	Fair Value	Unrealized Losses	# of Securities
Fixed maturity securities:
U.S. Treasury securities	$	—	—	—	883	99	7	883	99	7

States and political subdivisions	21,991		147	28	145,859	27,289	180	167,850	27,436	208
Corporate:
Financial	13,485		196	23	148,244	26,651	182	161,729	26,847	205
Consumer	19,282		361	25	165,229	38,732	225	184,511	39,093	250
Utilities	12,109		170	35	82,012	19,878	152	94,121	20,048	187
Energy	11,650		214	24	44,795	7,408	55	56,445	7,622	79
Communications	10,682		126	14	39,964	8,328	50	50,646	8,454	64
All Other	4,289		38	13	72,186	15,989	93	76,475	16,027	106
Commercial mortgage-backed	—		—	—	79	2	1	79	2	1
Residential mortgage-backed	17		—	4	93,197	8,183	77	93,214	8,183	81
Asset-backed	1,569		66	2	11,569	464	13	13,138	530	15
Total fixed maturity securities	$	95,074	1,318	168	804,017	153,023	1,035	899,091	154,341	1,203


December 31, 2024	Less than 12 months				Greater than 12 months			Total
(In thousands, except for # of securities)	Fair Value		Unrealized Losses	# of Securities	Fair Value	Unrealized Losses	# of Securities	Fair Value	Unrealized Losses	# of Securities
Fixed maturity securities:
U.S. Treasury securities	$	835	51	3	435	64	5	1,270	115	8

States and political subdivisions	42,583		1,484	63	147,534	32,058	177	190,117	33,542	240
Corporate:
Financial	29,258		756	53	154,448	32,529	192	183,706	33,285	245
Consumer	37,231		2,053	57	161,795	43,902	216	199,026	45,955	273
Utilities	16,750		687	47	79,488	22,083	142	96,238	22,770	189
Energy	11,654		438	29	52,537	9,521	65	64,191	9,959	94
Communications	9,973		250	11	48,462	9,660	60	58,435	9,910	71
All Other	25,208		1,237	38	68,756	15,131	87	93,964	16,368	125
Commercial mortgage-backed	100		—	1	89	5	1	189	5	2
Residential mortgage-backed	160		2	11	93,231	13,024	84	93,391	13,026	95
Asset-backed	10,330		243	14	14,741	563	16	25,071	806	30
Total fixed maturity securities	$	184,082	7,201	327	821,516	178,540	1,045	1,005,598	185,741	1,372

In each category of our fixed maturity securities described above, we do not intend to sell our investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases. At December 31, 2025 and 2024, 98.7% and 99.2%, respectively, of the fair value of our fixed maturity securities portfolio was rated investment grade. While the losses are currently unrealized, we continue to monitor

all fixed maturity securities on an on-going basis as future information may become available which could result in an allowance being recorded.

The unrealized losses on fixed maturity securities detailed in the previous tables are due to noncredit-related factors, including widening credit spreads and rising interest rates since purchase, which have little bearing on the recoverability of our investments, hence they are not recognized as credit losses. The fair value is expected to recover as the securities approach maturity or if market yields for such investments decline.

The amortized cost and fair value of fixed maturity securities at December 31, 2025 by contractual maturity are shown in the table 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. Securities not due at a single maturity date have been reflected based upon final stated maturity.


(In thousands)	Amortized Cost		Fair Value
Fixed maturity securities:
Due in one year or less	$	28,279	28,320
Due after one year through five years	109,760		110,282
Due after five years through ten years	302,587		303,361
Due after ten years	991,828		845,898
Total fixed maturity securities	$	1,432,454	1,287,861

There were no investments that were non-income producing for the years ended December 31, 2025 or 2024.

Major categories of net investment income are summarized as follows:


Years ended December 31, (In thousands)	2025		2024
Gross investment income:
Fixed maturity securities	$	63,340	60,940
Equity securities	212		302
Policy loans	5,275		5,597
Other long-term investments	5,427		4,846
Other	760		834
Total investment income	75,014		72,519
Investment expenses	(2,975)		(2,807)
Net investment income	$	72,039	69,712

The Company uses the specific identification method of the individual security to determine the cost basis used in the calculation of realized gains and losses related to security sales.


Years ended December 31, (In thousands)	2025		2024
Fixed maturity securities:
Proceeds	$	94,668	15,161
Gross realized gains	$	1,632	131
Gross realized losses	$	691	225

Investment related gains and losses are as follows:


Years ended December 31, (In thousands)	2025		2024
Investment related gains (losses):
Sales, calls and maturities:
Fixed maturity securities	$	349	(699)
Equity securities	398		—


Other long-term investments	(134)		(788)
Investment related gains (losses)	613		(1,487)
Change in fair value of equity securities	(127)		164
Change in fair value of limited partnerships	(429)		(969)
Change in fair value of structured note	307		—
Change in credit loss allowance	(224)		(334)




Net investment related gains (losses)	$	140	(2,626)