Investments (Tables)
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6 Months Ended |
Jun. 30, 2025 |
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| Investments [Abstract] |
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| Available-for-sale Investments |
The following tables summarize the available-for-sale investments at June 30, 2025 and December 31, 2024: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2025 | | | Amortized Cost | | Gross Unrealized Gains | | Gross Unrealized Losses | | Allowance for Credit Losses | | Estimated Fair Value | | | (in thousands) | | Fixed-maturity securities: | | | | | | | | | | | U.S. Treasury securities and obligations of U.S. government agencies | | $ | 7,839 | | | $ | 12 | | | $ | (241) | | | $ | — | | | $ | 7,610 | | Obligations of states, municipalities and political subdivisions | | 158,963 | | | 190 | | | (21,570) | | | (3) | | | 137,580 | | | Corporate and other securities | | 2,114,850 | | | 21,041 | | | (35,818) | | | (39) | | | 2,100,034 | | | Asset-backed securities | | 777,402 | | | 7,113 | | | (608) | | | — | | | 783,907 | | Residential mortgage-backed securities | | 607,220 | | | 2,461 | | | (45,890) | | | — | | | 563,791 | | | Commercial mortgage-backed securities | | 325,597 | | | 2,574 | | | (3,015) | | | — | | | 325,156 | | | Total fixed-maturity securities | | $ | 3,991,871 | | | $ | 33,391 | | | $ | (107,142) | | | $ | (42) | | | $ | 3,918,078 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2024 | | | Amortized Cost | | Gross Unrealized Gains | | Gross Unrealized Losses | | Allowance for Credit Losses | | Estimated Fair Value | | | (in thousands) | | Fixed-maturity securities: | | | | | | | | | | | U.S. Treasury securities and obligations of U.S. government agencies | | $ | 15,465 | | | $ | — | | | $ | (417) | | | $ | — | | | $ | 15,048 | | Obligations of states, municipalities and political subdivisions | | 168,894 | | | 46 | | | (22,633) | | | (3) | | | 146,304 | | | Corporate and other securities | | 2,037,372 | | | 5,779 | | | (53,638) | | | (23) | | | 1,989,490 | | | Asset-backed securities | | 729,658 | | | 4,606 | | | (1,522) | | | — | | | 732,742 | | Residential mortgage-backed securities | | 502,121 | | | 747 | | | (53,994) | | | — | | | 448,874 | | | Commercial mortgage-backed securities | | 209,521 | | | 423 | | | (4,838) | | | (1) | | | 205,105 | | | Total fixed-maturity securities | | $ | 3,663,031 | | | $ | 11,601 | | | $ | (137,042) | | | $ | (27) | | | $ | 3,537,563 | |
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| Debt Securities, Available-for-Sale, Allowance for Credit Loss |
The following table presents changes in the allowance for expected credit losses on available-for-sale securities for the three and six months ended June 30, 2025 and 2024: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | | 2025 | | 2024 | | 2025 | | 2024 | | | (in thousands) | | Beginning balance | | $ | 47 | | | $ | 543 | | | $ | 27 | | | $ | 553 | | | Increase to allowance from securities for which credit losses were not previously recorded | | — | | | — | | | — | | | — | | | Reduction from securities sold during the period | | (2) | | | (479) | | | (14) | | | (479) | | | Net increase (decrease) from securities that had an allowance at the beginning of the period | | (3) | | | 3 | | | 29 | | | (7) | | | Ending balance | | $ | 42 | | | $ | 67 | | | $ | 42 | | | $ | 67 | |
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| Available-for-sale Securities in an Unrealized Loss Position |
The following tables summarize gross unrealized losses and estimated fair value for available-for-sale investments by length of time that the securities have continuously been in an unrealized loss position: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2025 | | | Less than 12 Months | | 12 Months or Longer | | Total | | | Estimated Fair Value | | Gross Unrealized Losses | | Estimated Fair Value | | Gross Unrealized Losses | | Estimated Fair Value | | Gross Unrealized Losses | | | (in thousands) | | Fixed-maturity securities: | | | | | | | | | | | | | | U.S. Treasury securities and obligations of the U.S. government agencies | | $ | 293 | | | $ | (3) | | | $ | 6,746 | | | $ | (238) | | | $ | 7,039 | | | $ | (241) | | Obligations of states, municipalities and political subdivisions | | 7,184 | | | (115) | | | 117,383 | | | (21,455) | | | 124,567 | | | (21,570) | | Corporate and other securities | | 155,805 | | | (1,145) | | | 376,847 | | | (34,673) | | | 532,652 | | | (35,818) | | | Asset-backed securities | | 97,455 | | | (171) | | | 12,589 | | | (437) | | | 110,044 | | | (608) | | Residential mortgage-backed securities | | 48,856 | | | (358) | | | 231,602 | | | (45,532) | | | 280,458 | | | (45,890) | | | Commercial mortgage-backed securities | | 52,417 | | | (200) | | | 51,096 | | | (2,815) | | | 103,513 | | | (3,015) | | | Total fixed-maturity securities | | $ | 362,010 | | | $ | (1,992) | | | $ | 796,263 | | | $ | (105,150) | | | $ | 1,158,273 | | | $ | (107,142) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2024 | | | Less than 12 Months | | 12 Months or Longer | | Total | | | Estimated Fair Value | | Gross Unrealized Losses | | Estimated Fair Value | | Gross Unrealized Losses | | Estimated Fair Value | | Gross Unrealized Losses | | | (in thousands) | | Fixed-maturity securities: | | | | | | | | | | | | | U.S. Treasury securities and obligations of U.S. government agencies | | $ | 838 | | | $ | (13) | | | $ | 14,210 | | | $ | (404) | | | $ | 15,048 | | | $ | (417) | | Obligations of states, municipalities and political subdivisions | | 27,049 | | | (417) | | | 114,620 | | | (22,216) | | | 141,669 | | | (22,633) | | Corporate and other securities | | 667,645 | | | (9,139) | | | 493,598 | | | (44,499) | | | 1,161,243 | | | (53,638) | | | Asset-backed securities | | 121,371 | | | (943) | | | 24,656 | | | (579) | | | 146,027 | | | (1,522) | | Residential mortgage-backed securities | | 144,955 | | | (1,934) | | | 237,514 | | | (52,060) | | | 382,469 | | | (53,994) | | | Commercial mortgage-backed securities | | 92,024 | | | (960) | | | 53,812 | | | (3,878) | | | 145,836 | | | (4,838) | | | Total fixed-maturity securities | | $ | 1,053,882 | | | $ | (13,406) | | | $ | 938,410 | | | $ | (123,636) | | | $ | 1,992,292 | | | $ | (137,042) | |
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| Contractual Maturities of Available-for-sale Fixed Maturity Securities |
The amortized cost and estimated fair value of available-for-sale fixed-maturity securities at June 30, 2025 are summarized, by contractual maturity, as follows: | | | | | | | | | | | | | | | | | June 30, 2025 | | | Amortized | | Estimated | | | Cost | | Fair Value | | | (in thousands) | | Due in one year or less | | $ | 293,096 | | | $ | 292,850 | | | Due after one year through five years | | 1,193,332 | | | 1,198,056 | | | Due after five years through ten years | | 575,575 | | | 573,679 | | | Due after ten years | | 219,649 | | | 180,639 | | | Asset-backed securities | | 777,402 | | | 783,907 | | | Residential mortgage-backed securities | | 607,220 | | | 563,791 | | | Commercial mortgage-backed securities | | 325,597 | | | 325,156 | | | Total fixed-maturity securities | | $ | 3,991,871 | | | $ | 3,918,078 | |
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| Schedule of Real Estate Properties |
Real estate investments represents directly owned property held for investment purposes and consisted of land with a carrying value of $15.0 million at June 30, 2025 and December 31, 2024, respectively. There was no accumulated depreciation on real estate investments at June 30, 2025 and December 31, 2024.
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| Net Investment Income |
The following table presents the components of net investment income for the three and six months ended June 30, 2025 and 2024: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | | 2025 | | 2024 | | 2025 | | 2024 | | | (in thousands) | | Interest: | | | | | | | | | | Taxable bonds | | $ | 43,497 | | | $ | 34,471 | | | $ | 84,979 | | | $ | 65,862 | | | Tax exempt municipal bonds | | 355 | | | 395 | | | 711 | | | 834 | | | Cash equivalents and short-term investments | | 1,896 | | | 568 | | | 3,026 | | | 1,111 | | | Dividends on equity securities | | 2,011 | | | 1,461 | | | 3,964 | | | 2,837 | | | Real estate investment income | | — | | | — | | | — | | | 153 | | | Gross investment income | | 47,759 | | | 36,895 | | | 92,680 | | | 70,797 | | | Investment expenses | | (1,286) | | | (1,048) | | | (2,388) | | | (2,017) | | | Net investment income | | $ | 46,473 | | | $ | 35,847 | | | $ | 90,292 | | | $ | 68,780 | |
There was no depreciation expense related to real estate investments for the three and six months ended June 30, 2025 or June 30, 2024 as the Company sold the related assets during 2023.
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| Realized Gain (Loss) on Investments |
The following table presents realized investment gains and losses for the three and six months ended June 30, 2025 and 2024: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | | 2025 | | 2024 | | 2025 | | 2024 | | | (in thousands) | | Fixed-maturity securities: | | | | | | | | | | Realized gains | | $ | 532 | | | $ | 846 | | | $ | 1,305 | | | $ | 941 | | | Realized losses | | (396) | | | (933) | | | (1,187) | | | (1,039) | | | Net realized gains (losses) from fixed-maturity securities | | 136 | | | (87) | | | 118 | | | (98) | | | | | | | | | | | | Equity securities: | | | | | | | | | | Realized gains | | — | | | 3,390 | | | 2,465 | | | 7,271 | | | Realized losses | | — | | | (424) | | | (1,910) | | | (424) | | | Net realized gains from equity securities | | — | | | 2,966 | | | 555 | | | 6,847 | | | Realized gains from the sales of short-term investments | | — | | | 1 | | | — | | | 1 | | | Realized losses on sale of real estate investments | | — | | | (1) | | | — | | | (5) | | | Net realized investment gains | | $ | 136 | | | $ | 2,879 | | | $ | 673 | | | $ | 6,745 | |
The net realized gains or losses on sales of equity securities represent the total gains or losses from the purchase dates of the equity securities. The change in unrealized gains (losses) in the consolidated statement of income consists of two components: (1) the reversal of the gain or loss recognized in previous periods on equity securities sold and (2) the change in unrealized gain or loss resulting from mark-to-market adjustments on equity securities still held.
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