v3.26.1
Concentration of Risks
12 Months Ended
Dec. 31, 2025
Risks and Uncertainties [Abstract]  
Concentration of Risks
Note 26. Concentration of Risks
Our current operations subject us to the following concentrations of risk:
Insurance Solutions
Historically, we have assumed our MYGA products, which is a part of our insurance operations, from two insurance companies, ACL and SSL. We have made a decision to no longer assume business from ACL and SSL as of June 30, 2024. However, the Company will continue to earn investment income from the cash proceeds of the existing MYGA contracts and the holders will continue to be a diversified base of numerous individuals. Effective March 31, 2025, Ability entered a new reinsurance treaty for additional MYGA with National Security Group (“NSG”), further diversifying its reinsurance partners.
Certain concentrations of credit risk related to reinsurance recoverable exist with the insurance organizations listed in the table below:
As of December 31, 2025A.M. Best credit rating
Net reinsurance
recoverable1
Funds withheld payableNet reinsurance credit exposure
Medico Insurance CompanyA$4,466 $— $4,466 
Front Street ReNot Rated273,981 237,143 36,838 
Vista Life and Casualty Reinsurance CoNot Rated178,273 183,802 
Total$456,720 $420,945 $41,304 
As of December 31, 2024A.M. Best credit rating
Net reinsurance
recoverable1
Funds withheld payableNet reinsurance credit exposure
Medico Insurance CompanyA$4,376 $— $4,376 
Front Street ReNot Rated266,629 239,918 26,711 
Vista Life and Casualty Reinsurance CoNot Rated179,220 190,771 — 
Total$450,225 $430,689 $31,087 
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(1)Includes credit loss allowance of $1.1 million and $0.8 million as of December 31, 2025 and December 31, 2024, respectively, held against reinsurance recoverable.
Further, our Insurance Solutions segment has the following investment concentration risk:
As of December 31, 2025
Fair value% of total
Insurance Solutions
United States$688,545 72 %
Cayman Islands207,034 22 %
Other¹
61,229 %
Total insurance solutions956,808 100 %
Insurance Solutions consolidated VIEs
United States111,781 93 %
Other²
8,899 %
Total insurance solutions consolidated VIEs120,680 100 %
Total$1,077,488 
_______________
(1)Other consists of nominal investments primarily in Bermuda, Canada, Cayman Islands and United Kingdom.
(2)Other consists of nominal investments primarily in Ireland and Canada.
As of December 31, 2024
Fair value% of total
Insurance Solutions
United States$643,438 70 %
Canada6,579 %
Other¹
265,539 29 %
Total insurance solutions915,556 100 %
Insurance Solutions consolidated VIEs
United States120,144 95 %
Canada1,075 %
Other4,679 %
Total insurance solutions consolidated VIEs125,898 100 %
Total$1,041,454 
_______________
(1)Other consists of nominal investments primarily in Cayman Islands, Bermuda, and United Kingdom.
The Asset Management segment does not have meaningful investment concentration risk.