The Company analyzed its investment portfolio in accordance with its credit loss review policy and determined it did not need to record a credit loss for the twelve months ended December 31, 2025 and 2024. The Company holds only investment grade securities from high credit quality issuers. The gross unrealized losses were $8.4 million and $12.3 million as of December 31, 2025 and 2024, respectively. The gross unrealized losses were from the Company's available-for-sale securities are due to market conditions and interest rate changes. Management believes it will not need to sell its available-for-sale securities at significant losses as it has the ability and intention to hold them until maturity or until their values improve.

The cost or amortized cost, gross unrealized gain or loss, and estimated fair value of the investments in securities classified as available-for-sale at December 31, 2025 and 2024 were as follows (dollars in thousands):


	December 31, 2025
	Cost or		Gross Unrealized
	Amortized Cost		Gains		Losses			Estimated Fair Value
Debt securities:
U.S. Government	$	4,596	$	21	$	(12	)	$	4,605
State and local government		20,194		4		(2,982	)		17,216
Corporate debt		25,170		1		(1,407	)		23,764
Asset-backed securities		20,962		33		(22	)		20,973
Mortgage-backed securities		22,258		—		(3,690	)		18,568
Commercial mortgage-backed securities		1,054		—		(48	)		1,006
Collateralized mortgage obligations		2,435		—		(262	)		2,173
Total debt securities available for sale	$	96,669	$	59	$	(8,423	)	$	88,305


	December 31, 2024
	Cost or		Gross Unrealized
	Amortized Cost		Gains		Losses			Estimated Fair Value
Debt securities:
U.S. Government	$	4,573	$	4	$	(75	)	$	4,502
State and local government		21,933		—		(3,810	)		18,123
Corporate debt		33,543		—		(2,903	)		30,640
Asset-backed securities		28,432		84		(83	)		28,433
Mortgage-backed securities		24,605		—		(4,940	)		19,665
Commercial mortgage-backed securities		1,899		1		(69	)		1,831
Collateralized mortgage obligations		2,842		—		(371	)		2,471
Total debt securities available for sale	$	117,827	$	89	$	(12,251	)	$	105,665

The following table summarizes the aggregate fair value and gross unrealized losses, by security type, of the available-for-sale securities in unrealized loss positions. The table segregates the holdings based on the length of time that individual securities have been in a continuous unrealized loss position (dollars in thousands):


	December 31, 2025
	Less than 12 months							12 months or More							Total
	No. of Issues		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses			No. of Issues		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses			No. of Issues		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses
Debt securities:
U.S. Government		—	$	-	$	-			2	$	550	$	(12	)		2	$	550	$	(12	)
State and local government		—		—		—			96		16,327		(2,982	)		96		16,327		(2,982	)
Corporate debt		—		—		—			48		22,763		(1,407	)		48		22,763		(1,407	)
Asset-backed securities		3		3,531		(2	)		1		209		(20	)		4		3,740		(22	)
Mortgage-backed securities		—		—		—			64		18,563		(3,690	)		64		18,563		(3,690	)
Commercial mortgage -backed securities		1		145		(1	)		2		861		(47	)		3		1,006		(48	)
Collateralized mortgage obligations		—		—		—			25		2,172		(262	)		25		2,172		(262	)
Total debt securities available for sale		4		3,676		(3	)		238		61,445		(8,420	)		242		65,121		(8,423	)


	December 31, 2024
	Less than 12 months							12 months or More							Total
	No. of Issues		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses			No. of Issues		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses			No. of Issues		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses
Debt securities:
U.S. Government		5	$	2,208	$	(13	)		5	$	1,657	$	(62	)		10	$	3,865	$	(75	)
State and local government		3		1,068		(23	)		104		17,055		(3,787	)		107		18,123		(3,810	)
Corporate debt		1		95		(5	)		63		30,545		(2,898	)		64		30,640		(2,903	)
Asset-backed securities		1		298		(1	)		6		5,630		(82	)		7		5,928		(83	)
Mortgage-backed securities		1		5		(1	)		65		19,660		(4,939	)		66		19,665		(4,940	)
Commercial mortgage -backed securities		—		—		—			2		1,066		(69	)		2		1,066		(69	)
Collateralized mortgage obligations		—		—		—			29		2,471		(371	)		29		2,471		(371	)
Total debt securities available for sale		11	$	3,674	$	(43	)		274	$	78,084	$	(12,208	)		285	$	81,758	$	(12,251	)

Proceeds from the sales of available-for-sale securities were $6.1 million and $1.9 million for the years ended December 31, 2025 and 2024, respectively.

The gross realized gains from sales of available-for-sale securities for the years ended December 31, 2025 and 2024 were $11,000 and $10,000, respectively. The gross realized losses from sales of available-for-sale securities for the years ended December 31, 2025 and 2024 were $249,000 and $17,000, respectively.

As of December 31, 2025 and 2024, there were $0 of payables from securities purchased, respectively. As of December 31, 2025 and 2024, there were $0 of receivables from securities sold, respectively.

The Company's gross unrealized losses related to its equity investments were $79,000 and $584,000 as of December 31, 2025 and 2024, respectively. The Company's gross unrealized gains related to its equity investments were $80,000 and $350,000 as of December 31, 2025 and 2024, respectively.

Proceeds from sales of short-term investments were $186.0 million and $124.7 million for the years ended December 31, 2025, and 2024, respectively. Purchases of short-term investments were $283.2 million and $188.4 million for the years ended December 31, 2025 and 2024, respectively.

The Company also carries other equity investments that do not have a readily determinable fair value and are recorded at cost, less impairment or observable changes in price. We review these investments for impairment during each reporting period. There was no impairment or observable changes in price recorded during 2025 and 2024 related to the Company's equity securities without readily determinable fair value. These investments are a component of Other Assets in the Consolidated Balance Sheets. The value of these investments as of December 31, 2025 and December 31, 2024 were $250,000, respectively.

At December 31, 2025 and 2024, the Insurance Companies Subsidiaries had an aggregate of $8.5 million and $8.3 million, respectively, on deposit in trust accounts to meet the deposit requirements of various state insurance departments. At December 31, 2025 and 2024, the Company had $98.8 million and $108.4 million held in trust accounts to meet collateral requirements with other third-party insurers, relating to various fronting arrangements. Approximately $98.0 million of the trust account balances are for collateral of gross unearned premiums and gross loss reserves of the fronted business on the Security Program and the quick service restaurant program. There are withdrawal and other restrictions on these deposits, including the type of investments that may be held, however, the Company may generally invest in high-grade bonds and short-term investments and earn interest on the funds. As the unearned premiums run off to zero and loss reserves are paid on these programs, the remaining trust balances will be released and available for general use. It is expected to take approximately seven years for a large majority of the balances to be released with approximately 50% being released in the next few years.