Investments

6 Months Ended

Jun. 30, 2025

Note 3.

Investments

The following tables set forth the estimated fair value, gross unrealized gains, gross unrealized losses, allowance for credit losses and cost or amortized cost of the Company’s investments in fixed maturities and equity securities, aggregated by type and industry, as of June 30, 2025 and December 31, 2024.

Fixed maturities were comprised of the following:

	June 30, 2025
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Cost or Amortized Cost
Fixed maturities:
Bonds:
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	24,251	$	153	$	1,818	$	—	$	25,916
Loan backed and structured securities		22,209		51		2,179		—		24,337
Obligations of states and political subdivisions		7,318		15		1,464		—		8,767
Corporate securities:
Utilities and telecom		22,280		86		2,828		—		25,022
Financial services		60,141		731		3,888		—		63,298
Other business – diversified		33,724		96		3,507		—		37,135
Other consumer – diversified		43,194		46		5,340		—		48,488
Total corporate securities		159,339		959		15,563		—		173,943
Redeemable preferred stocks:
Other consumer – diversified		206		13		—		—		193
Total redeemable preferred stocks		206		13		—		—		193
Total fixed maturities	$	213,323	$	1,191	$	21,024	$	—	$	233,156

	December 31, 2024
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Cost or Amortized Cost
Fixed maturities:
Bonds:
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	22,251	$	24	$	2,144	$	—	$	24,371
Loan backed and structured securities		22,290		17		2,457		—		24,730
Obligations of states and political subdivisions		7,623		9		1,517		—		9,131
Corporate securities:
Utilities and telecom		24,623		108		3,206		—		27,721
Financial services		59,564		563		4,768		—		63,769
Other business – diversified		34,117		160		3,919		—		37,876
Other consumer – diversified		41,957		33		6,585		—		48,509
Total corporate securities		160,261		864		18,478		—		177,875
Redeemable preferred stocks:
Other consumer – diversified		187		—		5		—		192
Total redeemable preferred stocks		187		—		5		—		192
Total fixed maturities	$	212,612	$	914	$	24,601	$	—	$	236,299

Bonds having an amortized cost of $14,898 and $15,065 and included in the tables above were on deposit with insurance regulatory authorities as of June 30, 2025 and December 31, 2024, respectively, in accordance with statutory requirements. In addition, the Company maintains cash and cash equivalents on deposit with insurance regulatory authorities of $226 as of June 30, 2025 and December 31, 2024. Additionally, bonds having an amortized cost of $9,048 and $9,209 and included in the tables above were pledged as collateral to the Federal Home Loan Bank of Atlanta (“FHLB”) at June 30, 2025 and December 31, 2024, respectively.

Equity securities were comprised of the following:

	June 30, 2025
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Cost or Amortized Cost
Equity securities:
Common and non-redeemable preferred stocks:
Financial services	$	1,240	$	930	$	—	$	310
Communications		10,040		5,407		—		4,633
Total equity securities	$	11,280	$	6,337	$	—	$	4,943

	December 31, 2024
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Cost or Amortized Cost
Equity securities:
Common and non-redeemable preferred stocks:
Financial services	$	1,149	$	843	$	—	$	306
Communications		6,751		2,118		—		4,633
Total equity securities	$	7,900	$	2,961	$	—	$	4,939

The carrying value and amortized cost of the Company’s investments in fixed maturities at June 30, 2025 and December 31, 2024 by contractual maturity were as follows. Actual maturities may differ from contractual maturities because issuers may call or prepay obligations with or without call or prepayment penalties.

	June 30, 2025				December 31, 2024
	Carrying Value		Amortized Cost		Carrying Value		Amortized Cost
Due in one year or less	$	7,425	$	7,502	$	7,484	$	7,497
Due after one year through five years		66,745		68,104		62,722		64,703
Due after five years through ten years		25,966		27,395		32,820		35,552
Due after ten years		82,742		96,475		80,199		95,466
Asset backed securities		30,445		33,680		29,387		33,081
Totals	$	213,323	$	233,156	$	212,612	$	236,299

The following tables present the Company’s unrealized loss aging for securities by type and length of time the security was in a continuous unrealized loss position as of June 30, 2025 and December 31, 2024.

	June 30, 2025
	Less than 12 months				12 months or longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	2,570	$	19	$	14,071	$	1,799	$	16,641	$	1,818
Loan backed and structured securities		543		3		15,392		2,176		15,935		2,179
Obligations of states and political subdivisions		—		—		5,891		1,464		5,891		1,464
Corporate securities		17,818		470		122,233		15,093		140,051		15,563
Total temporarily impaired securities	$	20,931	$	492	$	157,587	$	20,532	$	178,518	$	21,024

	December 31, 2024
	Less than 12 months				12 months or longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	3,753	$	33	$	16,136	$	2,111	$	19,889	$	2,144
Loan backed and structured securities		1,010		5		16,069		2,452		17,079		2,457
Obligations of states and political subdivisions		—		—		5,839		1,517		5,839		1,517
Corporate securities		18,510		755		125,930		17,723		144,440		18,478
Redeemable preferred stocks		188		5		—		—		188		5
Total temporarily impaired securities	$	23,461	$	798	$	163,974	$	23,803	$	187,435	$	24,601

Analysis of Securities in Unrealized Loss Positions

As of June 30, 2025 and December 31, 2024, there were 198 and 213 securities, respectively, in an unrealized loss position which primarily included certain of the Company’s investments in fixed maturities within the utilities and telecom, financial services, other diversified business and other diversified consumer sectors. The unrealized losses on the Company’s fixed maturity securities investments have been primarily related to general market changes in interest rates and/or the levels of credit spreads rather than specific concerns with the issuer’s ability to pay interest and repay principal.

For any of its fixed maturity securities with significant declines in fair value, the Company performs detailed analyses to identify whether the drivers of the declines are due to general market drivers, such as the elevated interest rate environment, or due to credit-related factors. Identifying the drivers of the declines in fair value helps to align and allocate the Company’s resources to securities with real credit-related concerns that could impact the ultimate collection of principal and interest. For any significant declines in fair value determined to be non-interest rate or market related, the Company performs a more focused review of the related issuers’ specific credit profile.

For corporate issuers, the Company evaluates their assets, business profile including industry dynamics and competitive positioning, financial statements and other available financial data. For non-corporate issuers, the Company analyzes all reasonably available sources of credit support, including issuer-specific factors. The Company utilizes information available in the public domain and, for certain private placement issuers, from consultations with the issuers directly. The Company also considers ratings from Nationally Recognized Statistical Rating Organizations, as well as the specific characteristics of the security it owns including seniority in the issuer’s capital structure, covenant protections, or other relevant features. From these reviews, the Company evaluates the issuers’ continued ability to service the Company’s investment through payment of interest and principal.

Assuming no credit-related factors develop, unrealized gains and losses on fixed maturity securities are expected to diminish as investments near maturity. Based on its credit analysis, the Company believes that the issuers of its fixed maturity investments in the sectors shown in the table above have the ability to service their obligations to the Company. In addition, the Company does not intend to sell the investments, and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be at maturity.

However, from time to time the Company identifies certain available-for-sale fixed maturity securities where the amortized cost basis exceeds the present value of the cash flows expected to be collected due to credit related factors and as a result, a credit allowance will be estimated. The Company had no allowance for credit losses (“ACL”) on its available-for-sale fixed maturities as of June 30, 2025 or December 31, 2024.

The following tables summarize realized investment gains for the three month and six month periods ended June 30, 2025 and 2024.

	Three Months Ended June 30, 2025
	Fixed Maturities			Equity Securities		Other Invested Assets		Total
Gains	$	153		$	—	$	—	$	153
Losses		(137	)		—		—		(137	)
Realized investment gains, net	$	16		$	—	$	—	$	16

	Three Months Ended June 30, 2024
	Fixed Maturities			Equity Securities		Other Invested Assets		Total
Gains	$	15		$	—	$	—	$	15
Losses		(2	)		—		—		(2	)
Realized investment gains, net	$	13		$	—	$	—	$	13

	Six Months Ended June 30, 2025
	Fixed Maturities			Equity Securities		Other Invested Assets		Total
Gains	$	153		$	—	$	—	$	153
Losses		(137	)		—		—		(137	)
Realized investment gains, net	$	16		$	—	$	—	$	16

	Six Months Ended June 30, 2024
	Fixed Maturities			Equity Securities		Other Invested Assets		Total
Gains	$	15		$	—	$	—	$	15
Losses		(2	)		—		—		(2	)
Realized investment gains, net	$	13		$	—	$	—	$	13

The following table presents the change in unrealized gains related to equity securities still held for the three month and six month periods ended June 30, 2025 and 2024.

	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Net realized and unrealized gains recognized during the period on equity securities	$	2,609	$	243	$	3,376	$	129
Less: Net realized gains recognized during the period on equity securities sold during the period		—		—		—		—
Unrealized gains recognized during the reporting period on equity securities, net	$	2,609	$	243	$	3,376	$	129

Variable Interest Entities

The Company holds passive interests in a number of entities that are considered to be variable interest entities (“VIEs”) under GAAP guidance. The Company’s VIE interests principally consist of interests in limited liability companies formed for the purpose of achieving diversified equity returns. The Company’s VIE interests, carried as a part of other invested assets, totaled $6,324 and $6,616 as of June 30, 2025 and December 31, 2024, respectively. The Company’s VIE interests, carried as a part of investment in unconsolidated trusts, totaled $1,238 as of June 30, 2025 and December 31, 2024.

The Company does not have power over the activities that most significantly impact the economic performance of these VIEs and thus is not the primary beneficiary. Therefore, the Company has not consolidated these VIEs. The Company’s involvement with each VIE is limited to its direct ownership interest in the VIE. The Company’s maximum loss exposure relative to these investments was limited to the carrying value of the Company’s investment in the VIEs, which amount to $7,562 and $7,854, as of June 30, 2025 and December 31, 2024, respectively. As of June 30, 2025 and December 31, 2024, the Company had outstanding commitments totaling $2,200, respectively, whereby the Company is committed to fund these investments and may be called by the partnership during the commitment period to fund the purchase of new investments and partnership expenses.