Investments (Tables)
|
3 Months Ended |
Mar. 31, 2025 |
|---|
| Summary of Amortized Cost, Allowance for Credit Loss, Gross Unrealized Gains and Losses, and Estimated Fair Value of Available-for-Sale 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 |
|
|
| Scheduled Contractual Maturities of Fixed-Maturity Securities |
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 |
|
|
| Summary of Proceeds Received and Gross Realized Gains and Losses from Sales of Available-for-Sale 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 |
) |
|
|
|
|
|
|
|
|
|
|
|
| Summary of Securities with Gross Unrealized Loss Positions Aggregated by Investment Category |
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 |
|
|
| Summary of Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Value of Equity Securities |
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 |
|
|
| Summary of Unrealized Gains and Losses for Equity Securities |
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 |
|
|
| Summary of Proceeds Received, Gross Realized Gains and Losses from 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 |
) |
|
|
|
|
|
|
|
|
|
|
|
| Schedule of Company's Investments in Limited 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.
|
| Summary of Unaudited Financial Information and Unaudited Financial Position |
The following table summarizes the assets and liabilities related to the Company’s variable interests in consolidated VIEs which are included in the accompanying consolidated balance sheets:
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
|
December 31, |
|
|
|
2025 |
|
|
2024 |
|
Assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
100,286 |
|
|
$ |
74,886 |
|
Restricted cash |
|
|
616 |
|
|
|
611 |
|
Income taxes receivable |
|
|
— |
|
|
|
463 |
|
Deferred income taxes, net |
|
|
1,502 |
|
|
|
72 |
|
Premiums receivable, net
(allowance: $205 and $1,085, respectively) |
|
|
4,143 |
|
|
|
4,230 |
|
Prepaid reinsurance premium |
|
|
6,582 |
|
|
|
13,886 |
|
Reinsurance recoverable, net of allowance for
credit losses: |
|
|
|
|
|
|
Unpaid losses and loss adjustment expenses
(allowance: $2 and $4, respectively) |
|
|
3,598 |
|
|
|
3,596 |
|
Deferred policy acquisition costs |
|
|
2,538 |
|
|
|
2,709 |
|
Other assets |
|
|
626 |
|
|
|
891 |
|
Total assets |
|
$ |
119,891 |
|
|
$ |
101,344 |
|
Liabilities: |
|
|
|
|
|
|
Losses and loss adjustment expenses |
|
$ |
19,042 |
|
|
$ |
17,415 |
|
Unearned premiums |
|
|
40,474 |
|
|
|
30,204 |
|
Advance premiums |
|
|
327 |
|
|
|
— |
|
Assumed premiums payable |
|
|
1,362 |
|
|
|
656 |
|
Accrued expenses |
|
|
889 |
|
|
|
915 |
|
Income taxes payable |
|
|
2,535 |
|
|
|
19 |
|
Deferred income taxes, net |
|
|
— |
|
|
|
261 |
|
Other liabilities |
|
|
1,398 |
|
|
|
1,131 |
|
Total liabilities |
|
$ |
66,027 |
|
|
$ |
50,601 |
|
|
| Summary of 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 |
|
|
| Investment Income (Loss) Summarized |
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.
|
| Limited Partnership [Member] |
|
| Summary of Unaudited Financial Information and Unaudited Financial Position |
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 |
|
|