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Investments | 9 Months Ended
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Sep. 30, 2025
Investments [Abstract] |
Investments |
Note 3. | Investments
The following tables set forth the estimated fair value, gross unrealized gains, gross unrealized losses, allowance for credit losses and cost or amortized cost of the Company’s investments in fixed maturities and equity securities, aggregated by type and industry, as of September 30, 2025 and December 31, 2024. Fixed maturities were comprised of the following:
|  | September 30, 2025 |
|  | Estimated Fair Value |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Allowance for Credit Losses |  |  | Cost or Amortized Cost |
Fixed maturities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Bonds: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities and obligations of U.S. Government agencies and authorities |  | $ | 23,952 |  |  | $ | 172 |  |  | $ | 1,609 |  |  | $ | — |  |  | $ | 25,389 |
Loan backed and structured securities |  |  | 28,737 |  |  |  | 176 |  |  |  | 2,045 |  |  |  | — |  |  |  | 30,606 |
Obligations of states and political subdivisions |  |  | 7,393 |  |  |  | 16 |  |  |  | 1,389 |  |  |  | — |  |  |  | 8,766 |
Corporate securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Utilities and telecom |  |  | 30,162 |  |  |  | 312 |  |  |  | 2,539 |  |  |  | — |  |  |  | 32,389 |
Financial services |  |  | 62,866 |  |  |  | 1,036 |  |  |  | 3,129 |  |  |  | — |  |  |  | 64,959 |
Other business – diversified |  |  | 38,158 |  |  |  | 219 |  |  |  | 3,060 |  |  |  | — |  |  |  | 40,999 |
Other consumer – diversified |  |  | 43,997 |  |  |  | 106 |  |  |  | 4,511 |  |  |  | — |  |  |  | 48,402 |
Total corporate securities |  |  | 175,183 |  |  |  | 1,673 |  |  |  | 13,239 |  |  |  | — |  |  |  | 186,749 |
Redeemable preferred stocks: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other consumer – diversified |  |  | 204 |  |  |  | 11 |  |  |  | — |  |  |  | — |  |  |  | 193 |
Total redeemable preferred stocks |  |  | 204 |  |  |  | 11 |  |  |  | — |  |  |  | — |  |  |  | 193 |
Total fixed maturities |  | $ | 235,469 |  |  | $ | 2,048 |  |  | $ | 18,282 |  |  | $ | — |  |  | $ | 251,703 |
|  | December 31, 2024 |
|  | Estimated Fair Value |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Allowance for Credit Losses |  |  | Cost or Amortized Cost |
Fixed maturities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Bonds: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities and obligations of U.S. Government agencies and authorities |  | $ | 22,251 |  |  | $ | 24 |  |  | $ | 2,144 |  |  | $ | — |  |  | $ | 24,371 |
Loan backed and structured securities |  |  | 22,290 |  |  |  | 17 |  |  |  | 2,457 |  |  |  | — |  |  |  | 24,730 |
Obligations of states and political subdivisions |  |  | 7,623 |  |  |  | 9 |  |  |  | 1,517 |  |  |  | — |  |  |  | 9,131 |
Corporate securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Utilities and telecom |  |  | 24,623 |  |  |  | 108 |  |  |  | 3,206 |  |  |  | — |  |  |  | 27,721 |
Financial services |  |  | 59,564 |  |  |  | 563 |  |  |  | 4,768 |  |  |  | — |  |  |  | 63,769 |
Other business – diversified |  |  | 34,117 |  |  |  | 160 |  |  |  | 3,919 |  |  |  | — |  |  |  | 37,876 |
Other consumer – diversified |  |  | 41,957 |  |  |  | 33 |  |  |  | 6,585 |  |  |  | — |  |  |  | 48,509 |
Total corporate securities |  |  | 160,261 |  |  |  | 864 |  |  |  | 18,478 |  |  |  | — |  |  |  | 177,875 |
Redeemable preferred stocks: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other consumer – diversified |  |  | 187 |  |  |  | — |  |  |  | 5 |  |  |  | — |  |  |  | 192 |
Total redeemable preferred stocks |  |  | 187 |  |  |  | — |  |  |  | 5 |  |  |  | — |  |  |  | 192 |
Total fixed maturities |  | $ | 212,612 |  |  | $ | 914 |  |  | $ | 24,601 |  |  | $ | — |  |  | $ | 236,299 |
Bonds having an amortized cost of $15,368 and $15,065 and included in the tables above were on deposit with insurance regulatory authorities as of September 30, 2025 and December 31, 2024, respectively, in accordance with statutory requirements. In addition, the Company maintains cash and cash equivalents on deposit with insurance regulatory authorities of $0 and $226 as of September 30, 2025 and December 31, 2024, respectively. Additionally, bonds having an amortized cost of $8,954 and $9,209 and included in the tables above were pledged as collateral to the Federal Home Loan Bank of Atlanta (“FHLB”) at September 30, 2025 and December 31, 2024, respectively. Equity securities were comprised of the following:
|  | September 30, 2025 |
|  | Estimated Fair Value |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Cost or Amortized Cost |
Equity securities: |  |  |  |  |  |  |  |  |  |  |  |
Common and non-redeemable preferred stocks: |  |  |  |  |  |  |  |  |  |  |  |
Financial services |  | $ | 1,281 |  |  | $ | 971 |  |  | $ | — |  |  | $ | 310 |
Communications |  |  | 9,151 |  |  |  | 4,518 |  |  |  | — |  |  |  | 4,633 |
Total equity securities |  | $ | 10,432 |  |  | $ | 5,489 |  |  | $ | — |  |  | $ | 4,943 |
|  | December 31, 2024 |
|  | Estimated Fair Value |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Cost or Amortized Cost |
Equity securities: |  |  |  |  |  |  |  |  |  |  |  |
Common and non-redeemable preferred stocks: |  |  |  |  |  |  |  |  |  |  |  |
Financial services |  | $ | 1,149 |  |  | $ | 843 |  |  | $ | — |  |  | $ | 306 |
Communications |  |  | 6,751 |  |  |  | 2,118 |  |  |  | — |  |  |  | 4,633 |
Total equity securities |  | $ | 7,900 |  |  | $ | 2,961 |  |  | $ | — |  |  | $ | 4,939 |
The carrying value and amortized cost of the Company’s investments in fixed maturities at September 30, 2025 and December 31, 2024 by contractual maturity were as follows. Actual maturities may differ from contractual maturities because issuers may call or prepay obligations with or without call or prepayment penalties.
|  | September 30, 2025 |  |  | December 31, 2024 |
|  | Carrying Value |  |  | Amortized Cost |  |  | Carrying Value |  |  | Amortized Cost |
Due in one year or less |  | $ | 7,915 |  |  | $ | 8,002 |  |  | $ | 7,484 |  |  | $ | 7,497 |
Due after one year through five years |  |  | 66,531 |  |  |  | 67,793 |  |  |  | 62,722 |  |  |  | 64,703 |
Due after five years through ten years |  |  | 27,745 |  |  |  | 28,319 |  |  |  | 32,820 |  |  |  | 35,552 |
Due after ten years |  |  | 96,421 |  |  |  | 107,897 |  |  |  | 80,199 |  |  |  | 95,466 |
Asset backed securities |  |  | 36,857 |  |  |  | 39,692 |  |  |  | 29,387 |  |  |  | 33,081 |
Totals |  | $ | 235,469 |  |  | $ | 251,703 |  |  | $ | 212,612 |  |  | $ | 236,299 |
The following tables present the Company’s unrealized loss aging for securities by type and length of time the security was in a continuous unrealized loss position as of September 30, 2025 and December 31, 2024.
|  | September 30, 2025 |
|  | Less than 12 months |  |  | 12 months or longer |  |  | Total |
|  | Fair Value |  |  | Unrealized Losses |  |  | Fair Value |  |  | Unrealized Losses |  |  | Fair Value |  |  | Unrealized Losses |
U.S. Treasury securities and obligations of U.S. Government agencies and authorities |  | $ | 739 |  |  | $ | 7 |  |  | $ | 14,050 |  |  | $ | 1,602 |  |  | $ | 14,789 |  |  | $ | 1,609 |
Loan backed and structured securities |  |  | 850 |  |  |  | 4 |  |  |  | 15,802 |  |  |  | 2,041 |  |  |  | 16,652 |  |  |  | 2,045 |
Obligations of states and political subdivisions |  |  | 406 |  |  |  | — |  |  |  | 5,966 |  |  |  | 1,389 |  |  |  | 6,372 |  |  |  | 1,389 |
Corporate securities |  |  | 11,252 |  |  |  | 133 |  |  |  | 120,826 |  |  |  | 13,106 |  |  |  | 132,078 |  |  |  | 13,239 |
Total temporarily impaired securities |  | $ | 13,247 |  |  | $ | 144 |  |  | $ | 156,644 |  |  | $ | 18,138 |  |  | $ | 169,891 |  |  | $ | 18,282 |
|  | December 31, 2024 |
|  | Less than 12 months |  |  | 12 months or longer |  |  | Total |
|  | Fair Value |  |  | Unrealized Losses |  |  | Fair Value |  |  | Unrealized Losses |  |  | Fair Value |  |  | Unrealized Losses |
U.S. Treasury securities and obligations of U.S. Government agencies and authorities |  | $ | 3,753 |  |  | $ | 33 |  |  | $ | 16,136 |  |  | $ | 2,111 |  |  | $ | 19,889 |  |  | $ | 2,144 |
Loan backed and structured securities |  |  | 1,010 |  |  |  | 5 |  |  |  | 16,069 |  |  |  | 2,452 |  |  |  | 17,079 |  |  |  | 2,457 |
Obligations of states and political subdivisions |  |  | — |  |  |  | — |  |  |  | 5,839 |  |  |  | 1,517 |  |  |  | 5,839 |  |  |  | 1,517 |
Corporate securities |  |  | 18,510 |  |  |  | 755 |  |  |  | 125,930 |  |  |  | 17,723 |  |  |  | 144,440 |  |  |  | 18,478 |
Redeemable preferred stocks |  |  | 188 |  |  |  | 5 |  |  |  | — |  |  |  | — |  |  |  | 188 |  |  |  | 5 |
Total temporarily impaired securities |  | $ | 23,461 |  |  | $ | 798 |  |  | $ | 163,974 |  |  | $ | 23,803 |  |  | $ | 187,435 |  |  | $ | 24,601 |
Analysis of Securities in Unrealized Loss Positions As of September 30, 2025 and December 31, 2024, there were 193 and 213 securities, respectively, in an unrealized loss position which primarily included certain of the Company’s investments in fixed maturities within the utilities and telecom, financial services, other diversified business and other diversified consumer sectors. The unrealized losses on the Company’s fixed maturity securities investments have been primarily related to general market changes in interest rates and/or the levels of credit spreads rather than specific concerns with the issuer’s ability to pay interest and repay principal. For any of its fixed maturity securities with significant declines in fair value, the Company performs detailed analyses to identify whether the drivers of the declines are due to general market drivers, such as the elevated interest rate environment, or due to credit-related factors. Identifying the drivers of the declines in fair value helps to align and allocate the Company’s resources to securities with real credit-related concerns that could impact the ultimate collection of principal and interest. For any significant declines in fair value determined to be non-interest rate or market related, the Company performs a more focused review of the related issuers’ specific credit profile. For corporate issuers, the Company evaluates their assets, business profile including industry dynamics and competitive positioning, financial statements and other available financial data. For non-corporate issuers, the Company analyzes all reasonably available sources of credit support, including issuer-specific factors. The Company utilizes information available in the public domain and, for certain private placement issuers, from consultations with the issuers directly. The Company also considers ratings from Nationally Recognized Statistical Rating Organizations, as well as the specific characteristics of the security it owns including seniority in the issuer’s capital structure, covenant protections, or other relevant features. From these reviews, the Company evaluates the issuers’ continued ability to service the Company’s investment through payment of interest and principal. Assuming no credit-related factors develop, unrealized gains and losses on fixed maturity securities are expected to diminish as investments near maturity. Based on its credit analysis, the Company believes that the issuers of its fixed maturity investments in the sectors shown in the table above have the ability to service their obligations to the Company. In addition, the Company does not intend to sell the 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, which may be at maturity. However, from time to time the Company identifies certain available-for-sale fixed maturity securities where the amortized cost basis exceeds the present value of the cash flows expected to be collected due to credit related factors and as a result, a credit allowance will be estimated. The Company had no allowance for credit losses (“ACL”) on its available-for-sale fixed maturities as of September 30, 2025 or December 31, 2024. The following tables summarize realized investment gains and losses for the three month and nine month periods ended September 30, 2025 and 2024.
|  | Three Months Ended September 30, 2025 |
|  | Fixed Maturities |  |  | Equity Securities |  |  | Other Invested Assets |  |  | Total |
Gains |  | $ | 43 |  |  | $ | — |  |  | $ | — |  |  | $ | 43 |
Losses |  |  | (41 | ) |  |  | — |  |  |  | — |  |  |  | (41 | )
Realized investment gains, net |  | $ | 2 |  |  | $ | — |  |  | $ | — |  |  | $ | 2 |
|  | Three Months Ended September 30, 2024 |
|  | Fixed Maturities |  |  | Equity Securities |  |  | Other Invested Assets |  |  | Total |
Gains |  | $ | 4 |  |  | $ | — |  |  | $ | — |  |  | $ | 4 |
Losses |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Realized investment gains, net |  | $ | 4 |  |  | $ | — |  |  | $ | — |  |  | $ | 4 |
|  | Nine Months Ended September 30, 2025 |
|  | Fixed Maturities |  |  | Equity Securities |  |  | Other Invested Assets |  |  | Total |
Gains |  | $ | 196 |  |  | $ | — |  |  | $ | — |  |  | $ | 196 |
Losses |  |  | (178 | ) |  |  | — |  |  |  | — |  |  |  | (178 | )
Realized investment gains, net |  | $ | 18 |  |  | $ | — |  |  | $ | — |  |  | $ | 18 |
|  | Nine Months Ended September 30, 2024 |
|  | Fixed Maturities |  |  | Equity Securities |  |  | Other Invested Assets |  |  | Total |
Gains |  | $ | 19 |  |  | $ | — |  |  | $ | — |  |  | $ | 19 |
Losses |  |  | (2 | ) |  |  | — |  |  |  | — |  |  |  | (2 | )
Realized investment gains, net |  | $ | 17 |  |  | $ | — |  |  | $ | — |  |  | $ | 17 |
The following table presents the change in unrealized gains (losses) related to equity securities still held for the three month and nine month periods ended September 30, 2025 and 2024.
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Net realized and unrealized gains (losses) recognized during the period on equity securities |  | $ | (848 | ) |  | $ | (1,746 | ) |  | $ | 2,528 |  |  | $ | (1,617 | )
Less: Net realized gains recognized during the period on equity securities sold during the period |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Unrealized gains (losses) recognized during the reporting period on equity securities, net |  | $ | (848 | ) |  | $ | (1,746 | ) |  | $ | 2,528 |  |  | $ | (1,617 | )
Variable Interest Entities The Company holds passive interests in a number of entities that are considered to be variable interest entities (“VIEs”) under GAAP guidance. The Company’s VIE interests principally consist of interests in limited liability companies formed for the purpose of achieving diversified equity returns. The Company’s VIE interests, carried as a part of other invested assets, totaled $6,225 and $6,616 as of September 30, 2025 and December 31, 2024, respectively. The Company’s VIE interests, carried as a part of investment in unconsolidated trusts, totaled $1,238 as of September 30, 2025 and December 31, 2024. The Company does not have power over the activities that most significantly impact the economic performance of these VIEs and thus is not the primary beneficiary. Therefore, the Company has not consolidated these VIEs. The Company’s involvement with each VIE is limited to its direct ownership interest in the VIE. The Company’s maximum loss exposure relative to these investments was limited to the carrying value of the Company’s investment in the VIEs, which amount to $7,463 and $7,854, as of September 30, 2025 and December 31, 2024, respectively. As of September 30, 2025 and December 31, 2024, the Company had outstanding commitments totaling $2,200, respectively, whereby the Company is committed to fund these investments and may be called by the partnership during the commitment period to fund the purchase of new investments and partnership expenses.

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