Investments (Tables)
|
3 Months Ended |
Mar. 31, 2025 |
|---|
| Investments, Debt and Equity Securities [Abstract] |
|
| Schedule of Amortized Cost and Estimated Fair Value of Company's Fixed Maturities Securities |
The amortized cost and estimated fair value of the Company’s fixed maturities securities were as follows as of March 31, 2025 and December 31, 2024:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
|
Amortized
Cost |
|
|
Allowance for Expected Credit Losses |
|
|
Gross
Unrealized
Gains |
|
|
Gross
Unrealized
Losses |
|
|
Estimated
Fair Value |
|
As of March 31, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. treasuries |
|
$ |
543,858 |
|
|
$ |
— |
|
|
$ |
74 |
|
|
$ |
(422 |
) |
|
$ |
543,510 |
|
Obligations of states and political subdivisions |
|
|
17,099 |
|
|
|
— |
|
|
|
— |
|
|
|
(615 |
) |
|
|
16,484 |
|
Mortgage-backed securities |
|
|
210,360 |
|
|
|
— |
|
|
|
862 |
|
|
|
(2,586 |
) |
|
|
208,636 |
|
Asset-backed securities |
|
|
143,084 |
|
|
|
— |
|
|
|
962 |
|
|
|
(2,346 |
) |
|
|
141,700 |
|
Commercial mortgage-backed securities |
|
|
69,010 |
|
|
|
— |
|
|
|
333 |
|
|
|
(1,786 |
) |
|
|
67,557 |
|
Corporate bonds |
|
|
247,440 |
|
|
|
— |
|
|
|
595 |
|
|
|
(2,151 |
) |
|
|
245,884 |
|
Foreign corporate bonds |
|
|
92,815 |
|
|
|
— |
|
|
|
224 |
|
|
|
(1,411 |
) |
|
|
91,628 |
|
Total fixed maturities |
|
$ |
1,323,666 |
|
|
$ |
— |
|
|
$ |
3,050 |
|
|
$ |
(11,317 |
) |
|
$ |
1,315,399 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
|
Amortized
Cost |
|
|
Allowance for Expected Credit Losses |
|
|
Gross
Unrealized
Gains |
|
|
Gross
Unrealized
Losses |
|
|
Estimated
Fair Value |
|
As of December 31, 2024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. treasuries |
|
$ |
875,273 |
|
|
$ |
— |
|
|
$ |
757 |
|
|
$ |
(784 |
) |
|
$ |
875,246 |
|
Obligations of states and political subdivisions |
|
|
17,125 |
|
|
|
— |
|
|
|
— |
|
|
|
(790 |
) |
|
|
16,335 |
|
Mortgage-backed securities |
|
|
61,905 |
|
|
|
— |
|
|
|
299 |
|
|
|
(3,284 |
) |
|
|
58,920 |
|
Asset-backed securities |
|
|
137,445 |
|
|
|
— |
|
|
|
864 |
|
|
|
(2,882 |
) |
|
|
135,427 |
|
Commercial mortgage-backed securities |
|
|
68,041 |
|
|
|
— |
|
|
|
15 |
|
|
|
(2,488 |
) |
|
|
65,568 |
|
Corporate bonds |
|
|
158,798 |
|
|
|
— |
|
|
|
189 |
|
|
|
(2,891 |
) |
|
|
156,096 |
|
Foreign corporate bonds |
|
|
76,052 |
|
|
|
— |
|
|
|
81 |
|
|
|
(1,817 |
) |
|
|
74,316 |
|
Total fixed maturities |
|
$ |
1,394,639 |
|
|
$ |
— |
|
|
$ |
2,205 |
|
|
$ |
(14,936 |
) |
|
$ |
1,381,908 |
|
|
| 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 March 31, 2025, 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 |
|
$ |
597,762 |
|
|
$ |
597,332 |
|
Due in one year through five years |
|
|
284,061 |
|
|
|
282,263 |
|
Due in five years through ten years |
|
|
9,531 |
|
|
|
8,834 |
|
Due after ten years |
|
|
9,858 |
|
|
|
9,077 |
|
Mortgage-backed securities |
|
|
210,360 |
|
|
|
208,636 |
|
Asset-backed securities |
|
|
143,084 |
|
|
|
141,700 |
|
Commercial mortgage-backed securities |
|
|
69,010 |
|
|
|
67,557 |
|
Total |
|
$ |
1,323,666 |
|
|
$ |
1,315,399 |
|
|
| Summary of Securities With Gross Unrealized Losses |
The following table contains an analysis of the Company’s fixed income securities with gross unrealized losses that are not deemed to have credit losses, categorized by the period that the securities were in a continuous loss position as of March 31, 2025. The fair value amounts reported in the table are estimates that are prepared using the process described in Note 3.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less than 12 months |
|
|
12 months or longer |
|
|
Total |
|
(Dollars in thousands) |
|
Fair Value |
|
|
Gross
Unrealized
Losses |
|
|
Fair Value |
|
|
Gross
Unrealized
Losses |
|
|
Fair Value |
|
|
Gross
Unrealized
Losses |
|
Fixed maturities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. treasuries |
|
$ |
212,512 |
|
|
$ |
(57 |
) |
|
$ |
50,659 |
|
|
$ |
(365 |
) |
|
$ |
263,171 |
|
|
$ |
(422 |
) |
Obligations of states and political subdivisions |
|
|
— |
|
|
|
— |
|
|
|
16,484 |
|
|
|
(615 |
) |
|
|
16,484 |
|
|
|
(615 |
) |
Mortgage-backed securities |
|
|
38,437 |
|
|
|
(228 |
) |
|
|
23,660 |
|
|
|
(2,358 |
) |
|
|
62,097 |
|
|
|
(2,586 |
) |
Asset-backed securities |
|
|
11,417 |
|
|
|
(18 |
) |
|
|
44,887 |
|
|
|
(2,328 |
) |
|
|
56,304 |
|
|
|
(2,346 |
) |
Commercial mortgage-backed securities |
|
|
5,918 |
|
|
|
(36 |
) |
|
|
50,333 |
|
|
|
(1,750 |
) |
|
|
56,251 |
|
|
|
(1,786 |
) |
Corporate bonds |
|
|
14,696 |
|
|
|
(23 |
) |
|
|
83,580 |
|
|
|
(2,128 |
) |
|
|
98,276 |
|
|
|
(2,151 |
) |
Foreign corporate bonds |
|
|
785 |
|
|
|
(42 |
) |
|
|
43,481 |
|
|
|
(1,369 |
) |
|
|
44,266 |
|
|
|
(1,411 |
) |
Total fixed maturities |
|
$ |
283,765 |
|
|
$ |
(404 |
) |
|
$ |
313,084 |
|
|
$ |
(10,913 |
) |
|
$ |
596,849 |
|
|
$ |
(11,317 |
) |
The following table contains an analysis of the Company’s fixed income securities with gross unrealized losses that are not deemed to have credit losses, categorized by the period that the securities were in a continuous loss position as of December 31, 2024. The fair value amounts reported in the table are estimates that are prepared using the process described in Note 3.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less than 12 months |
|
|
12 months or longer |
|
|
Total |
|
(Dollars in thousands) |
|
Fair Value |
|
|
Gross
Unrealized
Losses |
|
|
Fair Value |
|
|
Gross
Unrealized
Losses |
|
|
Fair Value |
|
|
Gross
Unrealized
Losses |
|
Fixed maturities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. treasuries |
|
$ |
12,909 |
|
|
$ |
(180 |
) |
|
$ |
67,662 |
|
|
$ |
(604 |
) |
|
$ |
80,571 |
|
|
$ |
(784 |
) |
Obligations of states and political subdivisions |
|
|
— |
|
|
|
— |
|
|
|
16,335 |
|
|
|
(790 |
) |
|
|
16,335 |
|
|
|
(790 |
) |
Mortgage-backed securities |
|
|
20,832 |
|
|
|
(336 |
) |
|
|
26,802 |
|
|
|
(2,948 |
) |
|
|
47,634 |
|
|
|
(3,284 |
) |
Asset-backed securities |
|
|
7,239 |
|
|
|
(49 |
) |
|
|
46,792 |
|
|
|
(2,833 |
) |
|
|
54,031 |
|
|
|
(2,882 |
) |
Commercial mortgage-backed securities |
|
|
7,551 |
|
|
|
(242 |
) |
|
|
55,750 |
|
|
|
(2,246 |
) |
|
|
63,301 |
|
|
|
(2,488 |
) |
Corporate bonds |
|
|
14,325 |
|
|
|
(54 |
) |
|
|
95,266 |
|
|
|
(2,837 |
) |
|
|
109,591 |
|
|
|
(2,891 |
) |
Foreign corporate bonds |
|
|
17,635 |
|
|
|
(62 |
) |
|
|
46,696 |
|
|
|
(1,755 |
) |
|
|
64,331 |
|
|
|
(1,817 |
) |
Total fixed maturities |
|
$ |
80,491 |
|
|
$ |
(923 |
) |
|
$ |
355,303 |
|
|
$ |
(14,013 |
) |
|
$ |
435,794 |
|
|
$ |
(14,936 |
) |
|
| Schedule of Accumulated Other Comprehensive Income (Loss), Net of Tax |
Accumulated other comprehensive income (loss), net of tax, as of March 31, 2025 and December 31, 2024 was as follows:
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
|
March 31, 2025 |
|
|
December 31, 2024 |
|
Net unrealized gains (losses) from: |
|
|
|
|
|
|
Fixed maturities |
|
$ |
(8,267 |
) |
|
$ |
(12,731 |
) |
Foreign currency fluctuations |
|
|
(340 |
) |
|
|
(259 |
) |
Deferred taxes |
|
|
1,694 |
|
|
|
2,580 |
|
Accumulated other comprehensive income (loss), net of tax |
|
$ |
(6,913 |
) |
|
$ |
(10,410 |
) |
|
| Changes in Accumulated Other Comprehensive Income (Loss) |
The following tables present the changes in accumulated other comprehensive income (loss), by components, for the quarters ended March 31, 2025 and 2024:
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended March 31, 2025
(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 |
|
$ |
(10,205 |
) |
|
$ |
(205 |
) |
|
$ |
(10,410 |
) |
Other comprehensive income (loss) before reclassification, before tax |
|
|
4,477 |
|
|
|
(81 |
) |
|
|
4,396 |
|
Amounts reclassified from accumulated other comprehensive income (loss), before tax |
|
|
(13 |
) |
|
|
— |
|
|
|
(13 |
) |
Other comprehensive income (loss), before tax |
|
|
4,464 |
|
|
|
(81 |
) |
|
|
4,383 |
|
Income tax benefit (expense) |
|
|
(903 |
) |
|
|
17 |
|
|
|
(886 |
) |
Ending balance, net of tax |
|
$ |
(6,644 |
) |
|
$ |
(269 |
) |
|
$ |
(6,913 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended March 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 |
|
|
3,608 |
|
|
|
(86 |
) |
|
|
3,522 |
|
Amounts reclassified from accumulated other comprehensive income (loss), before tax |
|
|
25 |
|
|
|
— |
|
|
|
25 |
|
Other comprehensive income (loss), before tax |
|
|
3,633 |
|
|
|
(86 |
) |
|
|
3,547 |
|
Income tax benefit (expense) |
|
|
(697 |
) |
|
|
18 |
|
|
|
(679 |
) |
Ending balance, net of tax |
|
$ |
(19,779 |
) |
|
$ |
(216 |
) |
|
$ |
(19,995 |
) |
|
| Reclassifications Out of Accumulated Other Comprehensive Income (Loss) |
The reclassifications out of accumulated other comprehensive income (loss) for the quarters ended March 31, 2025 and 2024 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts Reclassified from
Accumulated Other
Comprehensive Income (Loss) |
|
(Dollars in thousands) |
|
|
|
Quarters Ended March 31, |
|
Details about Accumulated Other
Comprehensive Income (Loss) Components |
|
Affected Line Item in the Consolidated
Statements of Operations |
|
2025 |
|
|
2024 |
|
Unrealized gains and losses on available for sale securities |
|
Other net realized investment (gains) losses |
|
$ |
(13 |
) |
|
$ |
25 |
|
|
|
Income tax expense (benefit) |
|
|
3 |
|
|
|
(3 |
) |
|
|
Total reclassifications, net of tax |
|
$ |
(10 |
) |
|
$ |
22 |
|
|
| Components of Net Realized Investment Gains |
The components of net realized investment gains for the quarters ended March 31, 2025 and 2024 were as follows:
|
|
|
|
|
|
|
|
|
|
|
Quarters Ended March 31, |
|
(Dollars in thousands) |
|
2025 |
|
|
2024 |
|
Fixed maturities: |
|
|
|
|
|
|
Gross realized gains |
|
$ |
14 |
|
|
$ |
6 |
|
Gross realized losses |
|
|
(1 |
) |
|
|
(31 |
) |
Net realized gains (losses) |
|
|
13 |
|
|
|
(25 |
) |
Equity securities: |
|
|
|
|
|
|
Gross realized gains |
|
|
123 |
|
|
|
875 |
|
Gross realized losses |
|
|
— |
|
|
|
(3 |
) |
Net realized gains (losses) |
|
|
123 |
|
|
|
872 |
|
Total net realized investment gains |
|
$ |
136 |
|
|
$ |
847 |
|
|
| Summary of Calculation of Realized Gains and Losses |
The following table shows the calculation of the portion of realized gains and losses related to equity securities held as of March 31, 2025 and 2024:
|
|
|
|
|
|
|
|
|
|
|
Quarters Ended March 31, |
|
(Dollars in thousands) |
|
2025 |
|
|
2024 |
|
Net gains recognized during the period on equity securities |
|
$ |
123 |
|
|
$ |
872 |
|
Less: net losses recognized during the period on equity securities sold during the period |
|
|
— |
|
|
|
(11 |
) |
Unrealized gains recognized during the reporting period on equity securities still held |
|
$ |
123 |
|
|
$ |
883 |
|
|
| 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 quarters ended March 31, 2025 and 2024 were as follows:
|
|
|
|
|
|
|
|
|
|
|
Quarters Ended March 31, |
|
(Dollars in thousands) |
|
2025 |
|
|
2024 |
|
Fixed maturities |
|
$ |
39,984 |
|
|
$ |
20,759 |
|
Equity securities |
|
|
— |
|
|
|
— |
|
|
| Schedule of Investment Income |
The sources of net investment income for the quarters ended March 31, 2025 and 2024 were as follows:
|
|
|
|
|
|
|
|
|
|
|
Quarters Ended March 31, |
|
(Dollars in thousands) |
|
2025 |
|
|
2024 |
|
Fixed maturities |
|
$ |
14,387 |
|
|
$ |
13,578 |
|
Equity securities |
|
|
116 |
|
|
|
189 |
|
Cash and cash equivalents |
|
|
856 |
|
|
|
659 |
|
Other invested assets |
|
|
(86 |
) |
|
|
597 |
|
Total investment income |
|
|
15,273 |
|
|
|
15,023 |
|
Investment expense |
|
|
(491 |
) |
|
|
(503 |
) |
Net investment income |
|
$ |
14,782 |
|
|
$ |
14,520 |
|
|
| Schedule of Total Investment Return |
The Company’s total investment return on a pre-tax basis for the quarters ended March 31, 2025 and 2024 were as follows:
|
|
|
|
|
|
|
|
|
|
|
Quarters Ended March 31, |
|
(Dollars in thousands) |
|
2025 |
|
|
2024 |
|
Net investment income |
|
$ |
14,782 |
|
|
$ |
14,520 |
|
Net realized investment gains |
|
|
136 |
|
|
|
847 |
|
Change in unrealized holding gains (losses) |
|
|
4,383 |
|
|
|
3,547 |
|
Net realized and unrealized investment returns |
|
|
4,519 |
|
|
|
4,394 |
|
Total investment return |
|
$ |
19,301 |
|
|
$ |
18,914 |
|
Total investment return % (1) |
|
|
1.3 |
% |
|
|
1.3 |
% |
Average investment portfolio (2) |
|
$ |
1,436,218 |
|
|
$ |
1,403,878 |
|
(2)Average of total cash and invested assets, net of receivable/payable for securities, as of the beginning and end of the period.
|
| Summary of Estimated Fair Values of Bonds Held on Deposit |
The fair values were as follows as of March 31, 2025 and December 31, 2024:
|
|
|
|
|
|
|
|
|
|
|
Estimated Fair Value |
|
(Dollars in thousands) |
|
March 31, 2025 |
|
|
December 31, 2024 |
|
On deposit with governmental authorities |
|
$ |
19,604 |
|
|
$ |
19,378 |
|
Held in trust pursuant to third party requirements |
|
|
160,782 |
|
|
|
158,964 |
|
Total (1) |
|
$ |
180,386 |
|
|
$ |
178,342 |
|
(1)Includes cash and cash equivalents of $13.6 million and $5.2 million at March 31, 2025 and December 31, 2024, respectively, with the remainder related to bonds available for sale.
|