| Investments |
4 - Investments
The amortized cost and estimated fair values of our fixed maturities at December 31, 2025 and 2024 are as follows:
| |
|
2025
|
|
| |
|
Carrying Value
|
|
|
Allowance for
Credit Losses
|
|
|
Amortized
Cost
|
|
|
Gross
Unrealized
Gains
|
|
|
Gross
Unrealized
Losses
|
|
|
Estimated Fair
Value
|
|
| |
|
|
|
|
Held to Maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury securities and obligations of U.S. government corporations and agencies
|
|
$
|
79,242,467 |
|
|
$
|
47,257 |
|
|
$
|
79,289,724 |
|
|
$
|
84,055 |
|
|
$
|
4,864,438 |
|
|
$
|
74,509,341 |
|
|
Obligations of states and political subdivisions
|
|
|
436,802,311 |
|
|
|
357,188 |
|
|
|
437,159,499 |
|
|
|
3,221,019 |
|
|
|
39,248,172 |
|
|
|
401,132,346 |
|
|
Corporate securities
|
|
|
252,098,474 |
|
|
|
903,506 |
|
|
|
253,001,980 |
|
|
|
2,211,196 |
|
|
|
7,422,745 |
|
|
|
247,790,431 |
|
|
Mortgage-backed securities
|
|
|
8,304,095 |
|
|
|
4,952 |
|
|
|
8,309,047 |
|
|
|
66,156 |
|
|
|
147,998 |
|
|
|
8,227,205 |
|
|
Totals
|
|
$
|
776,447,347 |
|
|
$
|
1,312,903 |
|
|
$
|
777,760,250 |
|
|
$
|
5,582,426 |
|
|
$
|
51,683,353 |
|
|
$
|
731,659,323 |
|
| |
|
2025
|
|
|
Available for Sale
|
|
Amortized Cost
|
|
|
Gross Unrealized
Gains
|
|
|
Gross Unrealized
Losses
|
|
|
Estimated Fair
Value
|
|
|
U.S. Treasury securities and obligations of U.S. government corporations and agencies
|
|
$
|
25,057,361 |
|
|
$
|
107,304 |
|
|
$
|
835,267 |
|
|
$
|
24,329,398 |
|
|
Obligations of states and political subdivisions
|
|
|
49,982,079 |
|
|
|
504,540 |
|
|
|
1,935,902 |
|
|
|
48,550,717 |
|
|
Corporate securities
|
|
|
132,203,204 |
|
|
|
699,686 |
|
|
|
1,978,429 |
|
|
|
130,924,461 |
|
|
Mortgage-backed securities
|
|
|
443,127,367 |
|
|
|
3,091,284 |
|
|
|
9,300,452 |
|
|
|
436,918,199 |
|
|
Totals
|
|
$
|
650,370,011 |
|
|
$
|
4,402,814 |
|
|
$
|
14,050,050 |
|
|
$
|
640,722,775 |
|
| |
|
2024
|
|
| |
|
Carrying Value
|
|
|
Allowance for
Credit Losses
|
|
|
Amortized
Cost
|
|
|
Gross
Unrealized
Gains
|
|
|
Gross
Unrealized
Losses
|
|
|
Estimated Fair
Value
|
|
| |
|
|
|
|
Held to Maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury securities and obligations of U.S. government corporations and agencies
|
|
$
|
86,579,024 |
|
|
$
|
51,632 |
|
|
$
|
86,630,656 |
|
|
$
|
— |
|
|
$
|
8,484,505 |
|
|
$
|
78,146,151 |
|
|
Obligations of states and political subdivisions
|
|
|
371,895,483 |
|
|
|
259,896 |
|
|
|
372,155,379 |
|
|
|
649,770 |
|
|
|
54,062,089 |
|
|
|
318,743,060 |
|
|
Corporate securities
|
|
|
236,550,262 |
|
|
|
1,070,337 |
|
|
|
237,620,599 |
|
|
|
272,817 |
|
|
|
13,607,632 |
|
|
|
224,285,784 |
|
|
Mortgage-backed securities
|
|
|
10,689,147 |
|
|
|
6,375 |
|
|
|
10,695,522 |
|
|
|
— |
|
|
|
301,588 |
|
|
|
10,393,934 |
|
|
Totals
|
|
$
|
705,713,916 |
|
|
$
|
1,388,240 |
|
|
$
|
707,102,156 |
|
|
$
|
922,587 |
|
|
$
|
76,455,814 |
|
|
$
|
631,568,929 |
|
| |
|
2024
|
|
|
Available for Sale
|
|
Amortized Cost
|
|
|
Gross Unrealized
Gains
|
|
|
Gross Unrealized
Losses
|
|
|
Estimated Fair
Value
|
|
|
U.S. Treasury securities and obligations of U.S. government corporations and agencies
|
|
$
|
87,514,016 |
|
|
$
|
50,451 |
|
|
$
|
3,771,832 |
|
|
$
|
83,792,635 |
|
|
Obligations of states and political subdivisions
|
|
|
41,693,772 |
|
|
|
9,435 |
|
|
|
4,298,787 |
|
|
|
37,404,420 |
|
|
Corporate securities
|
|
|
211,059,119 |
|
|
|
141,685 |
|
|
|
8,269,108 |
|
|
|
202,931,696 |
|
|
Mortgage-backed securities
|
|
|
312,298,058 |
|
|
|
216,549 |
|
|
|
18,751,496 |
|
|
|
293,763,111 |
|
|
Totals
|
|
$
|
652,564,965 |
|
|
$
|
418,120 |
|
|
$
|
35,091,223 |
|
|
$
|
617,891,862 |
|
At December 31, 2025, our holdings of obligations of states and political subdivisions included general obligation bonds with an aggregate fair value of $291.7 million and an amortized cost of $317.5 million. Our holdings also included special revenue bonds with an aggregate fair value of $158.0 million and an amortized cost of $169.6 million. With respect to both categories of bonds, we held no securities of any issuer that comprised more than 10% of that category at December 31, 2025. Education bonds and water and sewer utility bonds represented 42% and 32%, respectively, of our total investments in special revenue bonds based on their carrying values at December 31, 2025. Many of the issuers of the special revenue bonds we held at December 31, 2025 have the authority to impose ad valorem taxes. In that respect, many of the special revenue bonds we held are similar to general obligation bonds.
At December 31, 2024, our holdings of obligations of states and political subdivisions included general obligation bonds with an aggregate fair value of $233.1 million and an amortized cost of $272.5 million. Our holdings also included special revenue bonds with an aggregate fair value of $123.0 million and an amortized cost of $141.3 million. With respect to both categories of bonds, we held no securities of any issuer that comprised more than 10% of that category at December 31, 2024. Education bonds and water and sewer utility bonds represented 44% and 37%, respectively, of our total investments in special revenue bonds based on their carrying values at December 31, 2024. Many of the issuers of the special revenue bonds we held at December 31, 2024 have the authority to impose ad valorem taxes. In that respect, many of the special revenue bonds we held are similar to general obligation bonds.
We have segregated within accumulated other comprehensive loss the net unrealized losses of $15.1 million arising prior to the November 30, 2013 reclassification date for fixed maturities reclassified from available for sale to held to maturity. We are amortizing this balance over the remaining life of the related securities as an adjustment of yield in a manner consistent with the accretion of discount on the same fixed maturities. We recorded amortization of $181,869, $219,583 and $284,095 in other comprehensive income in 2025, 2024 and 2023, respectively. At December 31, 2025 and 2024, net unrealized losses of $853,706 and $1.0 million, respectively, remained within accumulated other comprehensive loss.
We set forth below the amortized cost and estimated fair value of fixed maturities at December 31, 2025 by contractual maturity. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
| |
|
Amortized Cost
|
|
|
Estimated Fair
Value
|
|
|
Held to maturity
|
|
|
|
|
|
|
|
Due in one year or less
|
|
$
|
9,858,728 |
|
|
$
|
9,844,359 |
|
|
Due after one year through five years
|
|
|
169,072,060 |
|
|
|
163,642,082 |
|
|
Due after five years through ten years
|
|
|
239,817,355 |
|
|
|
231,085,406 |
|
|
Due after ten years
|
|
|
350,703,060 |
|
|
|
318,860,271 |
|
|
Mortgage-backed securities
|
|
|
8,309,047 |
|
|
|
8,227,205 |
|
|
Total held to maturity
|
|
$
|
777,760,250 |
|
|
$
|
731,659,323 |
|
|
Available for sale
|
|
|
|
|
|
|
|
|
|
Due in one year or less
|
|
$
|
18,784,118 |
|
|
$
|
18,750,756 |
|
|
Due after one year through five years
|
|
|
48,817,652 |
|
|
|
48,465,558 |
|
|
Due after five years through ten years
|
|
|
86,158,680 |
|
|
|
84,052,777 |
|
|
Due after ten years
|
|
|
53,482,194 |
|
|
|
52,535,485 |
|
|
Mortgage-backed securities
|
|
|
443,127,367 |
|
|
|
436,918,199 |
|
|
Total available for sale
|
|
$
|
650,370,011 |
|
|
$
|
640,722,775 |
|
The cost and estimated fair values of our equity securities at December 31, 2025 were as follows:
| |
|
Cost
|
|
|
Gross Gains
|
|
|
Gross Losses
|
|
|
Estimated Fair
Value
|
|
| |
|
|
|
|
Equity securities
|
|
$
|
27,238,146 |
|
|
$
|
17,193,576 |
|
|
$
|
61,364 |
|
|
$
|
44,370,358 |
|
The cost and estimated fair values of our equity securities at December 31, 2024 were as follows:
| |
|
Cost
|
|
|
Gross Gains
|
|
|
Gross Losses
|
|
|
Estimated Fair
Value
|
|
| |
|
|
|
|
Equity securities
|
|
$
|
24,725,576 |
|
|
$
|
12,087,227 |
|
|
$
|
4,993 |
|
|
$
|
36,807,810 |
|
The amortized cost of fixed maturities on deposit with various regulatory authorities at December 31, 2025 and 2024 amounted to $10,316,907 and $10,323,629, respectively.
We derived net investment income, consisting primarily of interest and dividends, from the following sources:
| |
|
2025
|
|
|
2024
|
|
|
2023
|
|
|
Fixed maturities
|
|
$
|
50,881,739 |
|
|
$
|
44,450,895 |
|
|
$
|
40,445,697 |
|
|
Equity securities
|
|
|
814,239 |
|
|
|
710,333 |
|
|
|
765,881 |
|
|
Short-term investments
|
|
|
5,165,683 |
|
|
|
3,621,766 |
|
|
|
2,471,998 |
|
|
Other
|
|
|
29,250 |
|
|
|
29,250 |
|
|
|
29,250 |
|
|
Investment income
|
|
|
56,890,911 |
|
|
|
48,812,244 |
|
|
|
43,712,826 |
|
|
Investment expenses
|
|
|
(4,264,196 |
)
|
|
|
(3,894,082 |
)
|
|
|
(2,859,611 |
)
|
|
Net investment income
|
|
$
|
52,626,715 |
|
|
$
|
44,918,162 |
|
|
$
|
40,853,215 |
|
We present below gross gains and losses from investments and the change in the difference between fair value and cost of investments:
| |
|
2025
|
|
|
2024
|
|
|
2023
|
|
|
Gross realized gains:
|
|
|
|
|
|
|
|
|
|
|
Fixed maturities
|
|
$
|
1,217,434 |
|
|
$
|
113,699 |
|
|
$
|
1,059,244 |
|
|
Equity securities
|
|
|
686,981 |
|
|
|
289,840 |
|
|
|
2,662,661 |
|
| |
|
|
1,904,415 |
|
|
|
403,539 |
|
|
|
3,721,905 |
|
|
Gross realized losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturities
|
|
|
6,410,388 |
|
|
|
288,008 |
|
|
|
3,300,351 |
|
|
Equity securities
|
|
|
— |
|
|
|
95,290 |
|
|
|
732,940 |
|
| |
|
|
6,410,388 |
|
|
|
383,298 |
|
|
|
4,033,291 |
|
|
Net realized (losses) gains
|
|
|
(4,505,973 |
)
|
|
|
20,241 |
|
|
|
(311,386 |
)
|
|
Gross unrealized gains on equity securities
|
|
|
5,111,342 |
|
|
|
5,028,206 |
|
|
|
3,651,125 |
|
|
Gross unrealized losses on equity securities
|
|
|
(61,364 |
)
|
|
|
(4,982 |
)
|
|
|
(109,125 |
)
|
|
Decrease (increase) in allowance for credit losses
|
|
|
75,337 |
|
|
|
(62,393 |
)
|
|
|
(57,807 |
)
|
|
Net investment gains
|
|
$
|
619,342 |
|
|
$
|
4,981,072 |
|
|
$
|
3,172,807 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in difference between fair value and cost of investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturities
|
|
$
|
54,458,167 |
|
|
$
|
(530,513 |
)
|
|
$
|
28,839,658 |
|
|
Equity securities
|
|
|
5,049,978 |
|
|
|
5,023,207 |
|
|
|
2,724,820 |
|
|
Totals
|
|
$
|
59,508,145 |
|
|
$
|
4,492,694 |
|
|
$
|
31,564,478 |
|
We held fixed maturities with unrealized losses representing declines that we considered temporary at December 31, 2025 as follows:
| |
|
Less than 12 months
|
|
|
12 months or longer
|
|
| |
|
Fair Value
|
|
|
Unrealized
Losses
|
|
|
Fair Value
|
|
|
Unrealized
Losses
|
|
|
U.S. Treasury securities and obligations of U.S. government corporations and agencies
|
|
$
|
9,502,823 |
|
|
$
|
45,722 |
|
|
$
|
76,505,619 |
|
|
$
|
5,653,983 |
|
|
Obligations of states and political subdivisions
|
|
|
34,777,933 |
|
|
|
697,410 |
|
|
|
287,717,398 |
|
|
|
40,486,664 |
|
|
Corporate securities
|
|
|
47,139,104 |
|
|
|
405,757 |
|
|
|
183,025,525 |
|
|
|
8,995,417 |
|
|
Mortgage-backed securities
|
|
|
102,103,532 |
|
|
|
540,325 |
|
|
|
88,886,762 |
|
|
|
8,908,125 |
|
|
Totals
|
|
$
|
193,523,392 |
|
|
$
|
1,689,214 |
|
|
$
|
636,135,304 |
|
|
$
|
64,044,189 |
|
We held fixed maturities with unrealized losses representing declines that we considered temporary at December 31, 2024 as follows:
| |
|
Less than 12 months
|
|
|
12 months or longer
|
|
| |
|
Fair Value
|
|
|
Unrealized
Losses
|
|
|
Fair Value
|
|
|
Unrealized
Losses
|
|
|
U.S. Treasury securities and obligations of U.S. government corporations and agencies
|
|
$
|
37,528,341 |
|
|
$
|
349,573 |
|
|
$
|
112,322,114 |
|
|
$
|
11,906,764 |
|
|
Obligations of states and political subdivisions
|
|
|
37,674,513 |
|
|
|
824,487 |
|
|
|
292,851,970 |
|
|
|
57,536,389 |
|
|
Corporate securities
|
|
|
83,342,468 |
|
|
|
1,505,512 |
|
|
|
311,435,364 |
|
|
|
20,371,228 |
|
|
Mortgage-backed securities
|
|
|
112,950,244 |
|
|
|
1,261,878 |
|
|
|
153,960,179 |
|
|
|
17,791,206 |
|
|
Totals
|
|
$
|
271,495,566 |
|
|
$
|
3,941,450 |
|
|
$
|
870,569,627 |
|
|
$
|
107,605,587 |
|
We held 638 debt securities that were in an unrealized loss position at December 31, 2025. Based upon our analysis of general market conditions and underlying factors impacting these debt securities, we considered these declines in value to be temporary.
We did not recognize any impairment losses on specific securities in 2025, 2024 or 2023. We had no sales or transfers from our held to maturity portfolio in 2025, 2024 or 2023. We had no derivative instruments or hedging activities during 2025, 2024 or 2023.
|