Investments

3 Months Ended

Mar. 31, 2025

Investments, Debt and Equity Securities [Abstract]

Note 5 -- Investments

a) Available-for-Sale Fixed-Maturity Securities

The Company holds investments in fixed-maturity securities that are classified as available-for-sale. At March 31, 2025 and December 31, 2024, the cost or amortized cost, allowance for credit loss, gross unrealized gains and losses, and estimated fair value of the Company’s available-for-sale securities by security type were as follows:


	Cost or Amortized		Allowance for Credit		Gross Unrealized		Gross Unrealized			Estimated Fair
	Cost		Loss		Gain		Loss			Value
As of March 31, 2025
U.S. Treasury and U.S. government agencies	$	624,650	$	—	$	2,229	$	(306	)	$	626,573
Corporate bonds		25,927		—		139		(242	)		25,824
Exchange-traded debt		494		—		—		(30	)		464
Total	$	651,071	$	—	$	2,368	$	(578	)	$	652,861
As of December 31, 2024
U.S. Treasury and U.S. government agencies	$	688,123	$	—	$	2,019	$	(2,726	)	$	687,416
Corporate bonds		30,919		—		77		(371	)		30,625
Exchange-traded debt		494		—		2		—			496
Total	$	719,536	$	—	$	2,098	$	(3,097	)	$	718,537

Expected maturities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without penalties. The scheduled contractual maturities of fixed-maturity securities as of March 31, 2025 and December 31, 2024 are as follows:


	March 31, 2025				December 31, 2024
	Cost or		Estimated		Cost or		Estimated
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Available-for-sale
Due in one year or less	$	510,506	$	511,771	$	520,005	$	521,301
Due after one year through five years		39,207		39,261		98,831		98,808
Due after five years through ten years		100,864		101,365		100,206		97,932
Due after ten years		494		464		494		496
	$	651,071	$	652,861	$	719,536	$	718,537

Securities on Deposit

The fair value of fixed-maturity securities on deposit with various regulatory authorities at March 31, 2025 and December 31, 2024 was $1,801 and $1,794, respectively.

Sales of Available-for-Sale Fixed-Maturity Securities

Proceeds received, and the gross realized gains and losses from sales of available-for-sale fixed-maturity securities, for the three months ended March 31, 2025 and 2024 were as follows:


			Gross Realized		Gross Realized
	Proceeds		Gains		Losses
Three months ended March 31, 2025	$	2,610	$	24	$	(4	)
Three months ended March 31, 2024	$	6,030	$	12	$	(44	)

Gross Unrealized Losses for Available-for-Sale Fixed-Maturity Securities

Securities with gross unrealized loss positions at March 31, 2025 and December 31, 2024, aggregated by investment category and length of time the individual securities have been in a continuous loss position, are as follows:


	Less Than Twelve Months					Twelve Months or Longer					Total
	Gross			Estimated		Gross			Estimated		Gross			Estimated
	Unrealized			Fair		Unrealized			Fair		Unrealized			Fair
As of March 31, 2025	Loss			Value		Loss			Value		Loss			Value
U.S. Treasury and U.S. government agencies	$	(1	)	$	498	$	(305	)	$	83,792	$	(306	)	$	84,290
Corporate bonds		(19	)		5,814		(223	)		7,851		(242	)		13,665
Exchange-traded debt		(30	)		464		—			—		(30	)		464
Total available-for-sale securities	$	(50	)	$	6,776	$	(528	)	$	91,643	$	(578	)	$	98,419


	Less Than Twelve Months					Twelve Months or Longer					Total
	Gross			Estimated		Gross			Estimated		Gross			Estimated
	Unrealized			Fair		Unrealized			Fair		Unrealized			Fair
As of December 31, 2024	Loss			Value		Loss			Value		Loss			Value
U.S. Treasury and U.S. government agencies	$	(2,063	)	$	97,771	$	(663	)	$	104,872	$	(2,726	)	$	202,643
Corporate bonds		(53	)		6,296		(318	)		15,255		(371	)		21,551
Total available-for-sale securities	$	(2,116	)	$	104,067	$	(981	)	$	120,127	$	(3,097	)	$	224,194

At March 31, 2025 and December 31, 2024, there were 34 and 56 securities, respectively, in an unrealized loss position.

Allowance for Credit Losses of Available-for-Sale Fixed-Maturity Securities

The Company regularly reviews its individual investment securities for credit impairment. The Company considers various factors in determining whether a credit loss exists for each individual security, including-

•

the financial condition and near-term prospects of the issuer, including any specific events that may affect its operations or earnings;

•

the extent to which the market value of the security has been below its cost or amortized cost;

•

general market conditions and industry or sector specific factors and other qualitative factors;

•

nonpayment by the issuer of its contractually obligated interest and principal payments; and

•

the Company’s intent and ability to hold the investment for a period of time sufficient to allow for the recovery of costs.

There was no balance or activity in the allowance for credit losses of available-for-sale fixed-maturity securities during the three months ended March 31, 2025 and 2024.

b) Equity Securities

The Company holds investments in equity securities measured at fair values which are readily determinable. At March 31, 2025 and December 31, 2024, the cost, gross unrealized gains and losses, and estimated fair value of the Company’s equity securities were as follows:


			Gross Unrealized		Gross Unrealized			Estimated Fair
	Cost		Gain		Loss			Value
March 31, 2025	$	52,962	$	4,573	$	(2,309	)	$	55,226
December 31, 2024	$	52,030	$	6,427	$	(2,257	)	$	56,200

The table below presents the portion of unrealized gains and losses in the Company’s consolidated statements of income related to equity securities still held.


	Three Months Ended
	March 31,
	2025			2024
Net (losses) gains recognized	$	(759	)	$	2,667
Exclude: Net realized gains recognized for securities sold		1,147			32
Net unrealized (losses) gains recognized	$	(1,906	)	$	2,635

Sales of Equity Securities

Proceeds received, and the gross realized gains and losses from sales of equity securities, for the three months ended March 31, 2025 and 2024 were as follows:


			Gross Realized		Gross Realized
	Proceeds		Gains		Losses
Three months ended March 31, 2025	$	9,542	$	1,331	$	(184	)
Three months ended March 31, 2024	$	3,516	$	173	$	(141	)

c) Limited Partnership Investments

The Company has interests in limited partnerships that are not registered or readily tradeable on a securities exchange. These partnerships are private equity funds managed by general partners who make decisions with regard to financial policies and operations. As such, the Company is not the primary beneficiary and does not consolidate these partnerships. The following table provides information related to the Company’s investments in limited partnerships:


	March 31, 2025						December 31, 2024
	Carrying		Unfunded				Carrying		Unfunded
Investment Strategy	Value		Balance		(%) (a)		Value		Balance		(%) (a)
Primarily in senior secured loans and, to a limited extent, in other debt and equity securities of private U.S. lower- middle-market companies. (b)(c)(e)	$	2,307	$	—		15.37	$	2,400	$	—		15.37
Value creation through active distressed debt investing primarily in bank loans, public and private corporate bonds, asset-backed securities, and equity securities received in connection with debt restructuring. (b)(d)(e)		717		—		1.04		1,082		—		1.13
High returns and long-term capital appreciation through investments in the power, utility and energy industries, and in the infrastructure sector. (b)(f)(g)		3,242		—		0.17		3,407		—		0.18
Value-oriented investments in less liquid and mispriced senior and junior debts of private equity-backed companies. (b)(h)(i)		2,061		—		0.51		2,053		—		0.52
Value-oriented investments in mature real estate private equity funds and portfolios globally. (b)(j)		6,605		2,350		1.31		6,781		2,445		1.31
Risk-adjusted returns on credit and equity investments, primarily in private equity-owned companies. (b)(k)		5,244		810		0.54		5,079		810		0.55
Total	$	20,176	$	3,160			$	20,802	$	3,255

(a)

Represents the Company’s percentage investment in the fund at each balance sheet date.

(b)

Except under certain circumstances, withdrawals from the funds or any assignments are not permitted. Distributions, except income from late admission of a new limited partner, will be received when underlying investments of the funds are liquidated.

(c)

The term is expected to be two years following the maturity of the fund’s outstanding leverage. Although the capital commitment period has expired, follow-on investments and pending commitments may require additional fundings.

(d)

Effective July 1, 2023, this investment is in the process of winding down. Although the capital commitment period has ended, the general partner could still request an additional funding under certain circumstances.

(e)

At the fund manager’s discretion, the term of the fund may be extended for up to two additional one-year periods.

(f)

Expected to have a ten-year term. The capital commitment period has expired but the general partner may request additional funding for follow-on investment.

(g)

With the consent of a supermajority of partners, the term of the fund may be extended for up to three additional one-year periods.

(h)

Expected to have an eight-year term from the commencement date, which can be extended for up to two additional one-year periods with the consent of either the advisory committee or a majority of limited partners.

(i)

The capital commitment period has ended but an additional funding may be requested.

(j)

The term is expected to end November 27, 2027. The term may be extended for up to four additional one-year periods at the general partner’s discretion, and up to two additional one-year periods with the consent of the advisory committee.

(k)

Expected to have an eight-year term after the final admission date. The term may be extended for an additional one-year period at the general partner’s discretion, and up to two additional one-year periods with the consent of either the advisory committee or a majority of limited partners.

The following is the summary of aggregated unaudited financial information of limited partnerships included in the investment strategy table above, which in certain cases is presented on a three-month lag due to the unavailability of information at the Company’s respective balance sheet dates. The financial statements of these limited partnerships are audited annually.


	Three Months Ended
	March 31,
	2025			2024
Operating results:
Total income*	$	(8,373	)	$	3,066
Total expenses		(16,215	)		(25,601	)
Net loss	$	(24,588	)	$	(22,535	)

*Includes net change in unrealized gains or losses on investments.


	March 31,		December 31,
	2025		2024
Balance sheet:
Total assets	$	3,979,579	$	4,118,765
Total liabilities	$	172,868	$	157,420

For the three months ended March 31, 2025 and 2024, the Company recognized net investment loss from limited partnerships of $626 and net investment income of $195, respectively. Included in net investment income for the three months ended March 31, 2025 and 2024 was an estimated unfavorable change in net asset value of $175 and an estimated favorable change in net asset value of $100, respectively. For the three months ended March 31, 2025 and 2024, the Company received total cash distributions of $95 and $162, respectively, representing returns of capital.

At March 31, 2025 and December 31, 2024, the Company’s net cumulative contributed capital to the partnerships at each respective balance sheet date totaled $23,346 and $20,987, respectively, and the Company’s maximum exposure to loss aggregated $20,176 and $20,802, respectively.

d) Real Estate Investments

Real estate investments consist of the following as of March 31, 2025 and December 31, 2024:


	March 31,			December 31,
	2025			2024
Land	$	41,818		$	42,272
Land improvements		10,578			4,843
Buildings and building improvements		30,680			18,772
Tenant and leasehold improvements		2,265			2,265
Construction in progress - Haines City		1,427			17,373
Other		1,233			1,106
Total, at cost		88,001			86,631
Less: accumulated depreciation and amortization		(7,850	)		(7,511	)
Real estate investments	$	80,151		$	79,120

Depreciation and amortization expense related to real estate investments was $339 and $269 for the three months ended March 31, 2025 and 2024, respectively.

In March 2025, the Company sold an outparcel of land in Sorrento, Florida for proceeds of $824.

e) Net Investment Income

Net investment income (loss), by source, is summarized as follows:


	Three Months Ended
	March 31,
	2025			2024
Available-for-sale fixed-maturity securities	$	7,514		$	4,827
Equity securities		487			442
Investment expense		(185	)		(79	)
Limited partnership investments		(626	)		195
Real estate investments		318			1,493
Cash and cash equivalents		6,243			7,189
Net investment income	$	13,751		$	14,067

For the three months ended March 31, 2025, income from real estate investments included a net gain of $370 in connection with the sale of one outparcel in Sorrento, Florida as described in d) Real Estate Investments.