v3.25.2
Investments
6 Months Ended
Jun. 30, 2025
Investments, Debt and Equity Securities [Abstract]  
Investments Investments
Net Investment Income
Sources of net investment income were as follows for the periods indicated:
Three months ended
June 30,
Six months ended
June 30,
(Amounts in thousands)
2025202420252024
Fixed maturity securities available-for-sale$61,285 $52,338 $119,737 $103,494 
Cash, cash equivalents and short-term investments6,731 9,244 13,354 16,889 
Gross investment income before expenses and fees68,016 61,582 133,091 120,383 
Investment expenses and fees(2,132)(1,809)(4,170)(3,499)
Net investment income$65,884 $59,773 $128,921 $116,884 
Net Investment Gains (Losses)
The following table sets forth net investment gains (losses) for the periods indicated:
Three months ended
June 30,
Six months ended
June 30,
(Amounts in thousands)
2025202420252024
Fixed maturity securities available-for-sale:  
Gross realized gains$2,014 $340 $2,383 $543 
Gross realized (losses)(8,306)(8,064)(11,803)(14,940)
Net realized gains (losses)(6,292)(7,724)(9,420)(14,397)
Write-down of available-for-sale fixed maturity securities(1,254)— (1,254)— 
Change in allowance for credit losses on fixed maturity securities273 — — — 
Other(70)11 88 — 
Net investment gains (losses)$(7,343)$(7,713)$(10,586)$(14,397)
There was no allowance for credit losses recorded on fixed maturity securities classified as available-for-sale as of June 30, 2025, and December 31, 2024.
Unrealized Investment Gains (Losses)
Net unrealized gains and losses on available-for-sale securities reflected as a separate component of accumulated other comprehensive income (“AOCI”) were as follows as of the dates indicated:
(Amounts in thousands)
June 30, 2025December 31, 2024
Net unrealized gains (losses) on investment securities:
Fixed maturity securities$(115,325)$(251,729)
Short-term investments(3)
Unrealized gains (losses) on investment securities(115,322)(251,732)
Income taxes14,846 44,108 
Net unrealized investment gains (losses)$(100,476)$(207,624)
The change in net unrealized gains (losses) on available-for-sale securities reported in accumulated other comprehensive income was as follows as of and for the periods indicated:
Three months ended
June 30,
(Amounts in thousands)
20252024
Beginning balance$(148,730)$(237,635)
Unrealized gains (losses) arising during the period:
Unrealized gains (losses) on investment securities53,888 (6,222)
Provision for income taxes(11,595)1,291 
Change in unrealized gains (losses) on investment securities42,293 (4,931)
Reclassification adjustments to net investment (gains) losses, net of taxes of $(1,585) and $(1,621), respectively
5,961 6,103 
Change in net unrealized investment gains (losses)48,254 1,172 
Ending balance$(100,476)$(236,463)
Six months ended
June 30,
(Amounts in thousands)
20252024
Beginning balance$(207,624)$(230,556)
Unrealized gains (losses) arising during the period:
Unrealized gains (losses) on investment securities125,736 (21,887)
Provision for income taxes(27,020)4,605 
Change in unrealized gains (losses) on investment securities98,716 (17,282)
Reclassification adjustments to net investment (gains) losses, net of taxes of $(2,242) and $(3,022), respectively
8,432 11,375 
Change in net unrealized investment gains (losses)107,148 (5,907)
Ending balance$(100,476)$(236,463)
Amounts reclassified out of accumulated other comprehensive income to net investment gains (losses) include realized gains (losses) on sales of securities, which are determined on a specific identification basis.
Fixed Maturity Securities Available-For-Sale
As of June 30, 2025, the amortized cost, gross unrealized gains (losses) and fair value of our investment securities were as follows:
(Amounts in thousands)
Amortized
cost
Gross unrealized gainsGross unrealized losses
Fair
value
U.S. government, agencies and GSEs$263,827 $3,020 $(1,866)$264,981 
State and political subdivisions538,822 1,628 (61,095)479,355 
Non-U.S. government152,936 2,215 (615)154,536 
U.S. corporate2,891,693 34,023 (74,241)2,851,475 
Non-U.S. corporate789,886 9,931 (16,633)783,184 
Residential mortgage-backed260,372 1,602 (559)261,415 
Commercial mortgage-backed48,224 588 (3)48,809 
Other asset-backed1,066,383 6,555 (19,875)1,053,063 
Total fixed maturity securities available-for-sale$6,012,143 $59,562 $(174,887)$5,896,818 
Short-term investments2,998 — 3,001 
Total investments$6,015,141 $59,565 $(174,887)$5,899,819 
As of December 31, 2024, the amortized cost, gross unrealized gains (losses) and fair value of our investment securities were as follows:
(Amounts in thousands)
Amortized
cost
Gross unrealized gains
Gross unrealized losses
Fair
value
U.S. government, agencies and GSEs$281,858 $590 $(5,085)$277,363 
State and political subdivisions541,715 1,388 (75,627)467,476 
Non-U.S. government85,566 94 (1,858)83,802 
U.S. corporate2,943,900 11,363 (129,584)2,825,679 
Non-U.S. corporate800,141 2,533 (30,050)772,624 
Residential mortgage-backed8,394 27 (57)8,364 
Other asset-backed1,214,928 4,716 (30,179)1,189,465 
Total fixed maturity securities available-for-sale$5,876,502 $20,711 $(272,440)$5,624,773 
Short-term investments3,370 (4)3,367 
Total investments$5,879,872 $20,712 $(272,444)$5,628,140 
Gross Unrealized Losses and Fair Values of Fixed Maturity Securities Available-For-Sale
The following table presents the gross unrealized losses and fair values of our fixed maturity securities for which an allowance for credit losses has not been recorded, aggregated by investment type and length of time that individual fixed maturity securities have been in a continuous unrealized loss position, as of June 30, 2025:
 
Less than 12 months 
12 months or more
Total
(Dollar amounts in thousands)
Fair value 
Gross unrealized losses
Number of securities
Fair value
Gross unrealized losses
Number of securities
Fair value
Gross unrealized losses
Number of securities
Fixed maturity securities:         
U.S. government, agencies and GSEs$69,908 $(1,670)13 $18,086 $(196)$87,994 $(1,866)19 
State and political subdivisions65,525 (5,002)21 383,015 (56,093)76 448,540 (61,095)97 
Non-U.S. government16,110 (211)24 9,836 (404)25,946 (615)25 
U.S. corporate392,199 (6,967)95 1,043,840 (67,274)186 1,436,039 (74,241)281 
Non-U.S. corporate84,807 (1,500)33 270,004 (15,133)52 354,811 (16,633)85 
Residential mortgage-backed100,554 (559)32 — — — 100,554 (559)32 
Commercial mortgage-backed3,319 (3)— — — 3,319 (3)
Other asset-backed77,194 (632)43 423,867 (19,243)105 501,061 (19,875)148 
Total for fixed maturity securities in an unrealized loss position$809,616 $(16,544)264 $2,148,648 $(158,343)426 $2,958,264 $(174,887)690 
We did not recognize an allowance for credit losses on securities in an unrealized loss position included in the table above. Based on a qualitative and quantitative review of the issuers of the securities, we believe the unrealized losses are largely due to changes in interest rates and recent market volatility and are not indicative of credit losses. The issuers continue to make timely principal and interest payments.
For all securities in an unrealized loss position without an allowance for credit losses, we expect to recover the amortized cost based on our estimate of the amount and timing of cash flows to be collected. We do not intend to sell, nor do we expect that we will be required to sell these securities prior to recovering our amortized cost.
The following table presents the gross unrealized losses and fair values of our fixed maturity securities, aggregated by investment type and length of time that individual fixed maturity securities have been in a continuous unrealized loss position, as of December 31, 2024:
 
Less than 12 months 
12 months or more
Total
(Dollar amounts in thousands)
Fair value 
Gross unrealized losses
Number of securities
Fair value
Gross unrealized losses
Number of securities
Fair value
Gross unrealized losses
Number of securities
Fixed maturity securities:         
U.S. government, agencies and GSEs$157,596 $(4,704)32 $19,998 $(381)$177,594 $(5,085)41 
State and political subdivisions48,280 (2,366)17 396,638 (73,261)84 444,918 (75,627)101 
Non-U.S. government56,631 (1,236)76 9,692 (622)66,323 (1,858)77 
U.S. corporate881,643 (20,844)265 1,379,860 (108,740)264 2,261,503 (129,584)529 
Non-U.S. corporate195,648 (4,015)102 385,508 (26,035)74 581,156 (30,050)176 
Residential mortgage-backed3,313 (31)2,822 (26)6,135 (57)
Other asset-backed101,549 (1,168)49 527,531 (29,011)130 629,080 (30,179)179 
Total for fixed maturity securities in an unrealized loss position$1,444,660 $(34,364)544 $2,722,049 $(238,076)566 $4,166,709 $(272,440)1,110 
Contractual Maturities of Fixed Maturity Securities Available-For-Sale
The scheduled maturity distribution of fixed maturity securities as of June 30, 2025, is set forth below. Actual maturities may differ from contractual maturities because issuers of securities may have the right to call or prepay obligations with or without call or prepayment penalties.
(Amounts in thousands)
Amortized
cost
Fair
value
Due one year or less$237,116 $236,084 
Due after one year through five years1,552,510 1,508,787 
Due after five years through ten years2,299,977 2,244,148 
Due after ten years547,561 544,512 
Subtotal4,637,164 4,533,531 
Residential mortgage-backed260,372 261,415 
Commercial mortgage-backed48,224 48,809 
Other asset-backed1,066,383 1,053,063 
Total fixed maturity securities available-for-sale$6,012,143 $5,896,818 
As of June 30, 2025, securities issued by the finance and insurance, utilities, technology and communications, consumer—non-cyclical, energy, and capital goods industry groups represented approximately 30%, 13%, 12%, 11%, 10%, and 10% respectively, of our domestic and foreign corporate fixed maturity securities portfolio. No other industry group comprised more than 9% of our investment portfolio.
As of June 30, 2025, we did not hold any fixed maturity securities in any single issuer, other than securities issued or guaranteed by the U.S. government, which exceeded 10% of equity.
As of June 30, 2025, and December 31, 2024, $21.3 million and $25.7 million, respectively, of securities in our portfolio were on deposit with various state insurance commissioners in order to comply with relevant insurance regulations.
In connection with its reinsurance activities, the Company is required to maintain assets in trusts for the benefit of its contractual counterparties. As of June 30, 2025 and December 31, 2024, the fair value of the assets on deposit in these trusts was $287.9 million and $141.9 million, respectively, of which $39.2 million and $6.3 million, respectively, related to cash and cash equivalents.
During 2024, the Company entered into an agreement to invest in a limited partnership with an expected term of ten years. The investment is recorded within Other assets. As of June 30, 2025, we have committed to additionally fund approximately $9.5 million over the remaining life of the fund.