v3.26.1
SUMMARY OF INVESTMENTS
 3 Months Ended
Mar. 31, 2026
Investments, Debt and Equity Securities [Abstract]  
SUMMARY OF INVESTMENTS SUMMARY OF INVESTMENTS
Fair Value of Investments
A reconciliation of the amortized cost to fair value of investments in our available-for-sale fixed maturity portfolio, as of March 31, 2026 and December 31, 2025, is provided below:
March 31, 2026
Type of InvestmentAmortized CostGross Unrealized GainGross Unrealized LossAllowance for Credit LossesFair Value
AVAILABLE-FOR-SALE
US Treasury and government agencies$104,981 $216 $5,947 $— $99,250 
States, municipalities and political subdivisions196,098 1,281 1,943 — 195,436 
Corporate810,184 4,301 29,670 — 784,815 
Residential mortgage-backed788,942 6,104 28,163 — 766,883 
Commercial mortgage-backed146,511 1,691 59 — 148,143 
Other asset-backed224,838 795 1,229 — 224,404 
Total Available-for-Sale Fixed Maturities$2,271,554 $14,388 $67,011 $— $2,218,931 

December 31, 2025
Type of InvestmentAmortized CostGross Unrealized GainGross Unrealized LossAllowance for Credit LossesFair Value
AVAILABLE-FOR-SALE
US Treasury and government agencies$109,358 $482 $5,736 $— $104,104 
States, municipalities and political subdivisions261,711 1,598 1,575 — 261,734 
Corporate797,892 9,186 23,924 — 783,154 
Residential mortgage-backed732,452 8,991 25,846 — 715,597 
Commercial mortgage-backed143,009 2,405 7 — 145,407 
Other asset-backed194,751 1,238 635 — 195,354 
Total Available-for-Sale Fixed Maturities$2,239,173 $23,900 $57,723 $— $2,205,350 
Maturities
The amortized cost and fair value of available-for-sale fixed maturity securities at March 31, 2026, by contractual maturity, are shown in the following table. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Asset-backed securities, mortgage-backed securities and collateralized mortgage obligations may be subject to prepayment risk and are therefore not categorized by contractual maturity.
Available-For-Sale
March 31, 2026Amortized Cost Fair Value
Due in one year or less$35,805  $35,622 
Due after one year through five years356,171  350,901 
Due after five years through 10 years484,716  472,375 
Due after 10 years234,571  220,603 
Asset-backed securities1,160,291 1,139,430 
 $2,271,554  $2,218,931 
Allowance for Credit Losses

We regularly review available-for-sale fixed-maturity securities for declines in fair value that we determine to be credit-related. For our fixed maturity securities, we generally consider the following in determining whether our unrealized losses are credit-related, and if so, the magnitude of the credit loss:

•The extent to which the fair value is less than the amortized cost basis;
•The reasons for the decline in value (credit event, currency or interest-rate related, including general credit spread widening);
•The financial condition and near-term prospects of the issuer (including issuer's current credit rating and the probability of full recovery of principal, based upon the issuer's financial strength);
•Current delinquencies and nonperforming assets of underlying collateral;
•Expected future default rates;
•Collateral value by vintage, geographic region, industry concentration or property type;
•Subordination levels or other credit enhancements as of the balance sheet date as compared to origination; and
•Contractual and regulatory cash obligations and the issuer's plans to meet such obligations.

We recognize an allowance for credit losses on fixed maturity securities in an unrealized loss position when it is determined, using the factors discussed above, a component of the unrealized loss is related to credit. We recognize the credit loss in "Net investment gains (losses)" in the Consolidated Statements of Income, with an offset for the amount of non-credit impairments recognized in accumulated other comprehensive income. We do not measure an allowance for credit losses on accrued investment income because we write-off accrued interest through net investment income when collectability concerns arise.

We consider the following in determining whether write-offs of a security's amortized cost are necessary:
•We believe amounts related to securities have become uncollectible;
•We intend to sell a security; or
•It is more likely than not that we will be required to sell a security prior to recovery.

If we intend to sell a fixed maturity security or it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis and the fair value of the security is below amortized cost, we will write down the security to current fair value, with a corresponding charge, net of any amount previously recognized as an allowance for credit losses, to "Net investment gains (losses)" in the Consolidated Statements of Income. If we do not intend to sell a fixed maturity security or it is more likely than not that we will not be required to sell a fixed maturity security before recovery of its amortized cost basis but believe amounts related to a security are uncollectible, an impairment is deemed to have occurred and the amortized cost is written down to the estimated recovery value with a corresponding charge, net of any amount previously recognized as an allowance for credit losses, to "Net investment gains (losses)" in the Consolidated Statements of Income. The remainder of unrealized loss is held in "Accumulated other comprehensive income (loss)" in the Consolidated Statements of Stockholders' Equity.
As of March 31, 2026, we had no allowance for credit losses for the available-for-sale fixed maturity securities portfolio.
Unrealized Gain and Loss
Changes in unrealized gains and losses on available-for-sale fixed maturity securities do not affect net income and earnings per share but do impact comprehensive income, stockholders' equity and book value per share. A summary of changes in net unrealized investment gain (loss), net of taxes, during the reporting period is as follows:
 Three months ended March 31,
2026 2025
Change in net unrealized investment gain (loss)   
Available-for-sale fixed maturities(1)
$(18,544)$25,998 
Income tax effect3,894 (5,459)
Total change in net unrealized investment gain (loss), net of tax$(14,650) $20,539 
(1) As a member of Lloyd's, the Company participates in the syndicate results which include unrealized gains and losses on investments. The change in net unrealized gains and losses on Lloyd's syndicate investments included above was $0.3 million as of March 31, 2026 and ($1.0) million as of March 31, 2025.
The following tables summarize our fixed maturity securities that were in an unrealized loss position at March 31, 2026 and December 31, 2025. The securities are presented by the length of time they have been continuously in an unrealized loss position.
March 31, 2026Less than 12 months12 months or longerTotal
Type of InvestmentNumber
of Issues		Fair
Value		Gross Unrealized
Loss		Number
of Issues		Fair
Value		Gross Unrealized LossFair
Value		Gross Unrealized Loss
AVAILABLE-FOR-SALE
US Treasury and government agencies7 $10,623 $75 20 $66,304 $5,872 $76,927 $5,947 
States, municipalities and political subdivisions4868,554 830 2341,328 1,113 109,882 1,943 
Corporate145328,680 4,817 75193,551 24,853 522,231 29,670 
Residential mortgage-backed76 286,131 2,787 100 133,148 25,376 419,279 28,163 
Commercial mortgage-backed9 18,227 59 — — — 18,227 59 
Other asset-backed46 118,507 1,170 2 2,983 59 121,490 1,229 
Total Available-for-Sale331 $830,722 $9,738 220 $437,314 $57,273 $1,268,036 $67,011 
December 31, 2025Less than 12 months12 months or longerTotal
Type of InvestmentNumber
of Issues		Fair
Value		Gross Unrealized
Loss		Number
of Issues		Fair
Value		Gross Unrealized LossFair
Value		Gross Unrealized Loss
AVAILABLE-FOR-SALE
US Treasury and government agencies3 $1,743 $3 25 $72,773 $5,733 $74,516 $5,736 
States, municipalities and political subdivisions39 60,660 478 52 104,732 1,097 165,392 1,575 
Corporate52 156,734 866 83 226,071 23,058 382,805 23,924 
Residential mortgage-backed34 121,159 398 103 148,711 25,448 269,870 25,846 
Commercial mortgage-backed2 7,986 7 — — — 7,986 7 
Other asset-backed19 70,050 223 4 7,575 412 77,625 635 
Total Available-for-Sale149 $418,332 $1,975 267 $559,862 $55,748 $978,194 $57,723 

We believe that any unrealized losses on our available-for-sale fixed maturity securities at March 31, 2026 are temporary based upon our current analysis of the issuers of the securities we hold and current market conditions. We invest in high quality assets to provide protection from future credit quality issues. Non-credit related unrealized losses are recognized as a component of other comprehensive income and represent other market movements that are not credit related, for example, interest rate changes. We have no intent to sell, and it is more likely than not that we will not be required to sell these securities until the fair value recovers to at least equal our cost basis or the securities mature.

Mortgage Loans
The mortgage loan portfolio consists entirely of commercial mortgage loans. We did not acquire new loans during the three months ended March 31, 2026. The following tables present the carrying value of our commercial mortgage loans and additional information at March 31, 2026 and December 31, 2025:
Commercial Mortgage Loans
March 31, 2026December 31, 2025
Loan-to-valueCarrying ValueCarrying Value
Less than 65%$22,743 $22,846 
65%-75%8,219 8,270 
Total mortgage loans at amortized cost$30,962 $31,116 
Allowance for mortgage loan losses(286)(286)
Mortgage loans, net$30,676 $30,830 

Commercial Mortgage Loans by Region
March 31, 2026December 31, 2025
Carrying ValuePercent of TotalCarrying ValuePercent of Total
East North Central$3,147 10.2 %$3,162 10.2 %
Southern Atlantic14,168 45.8 14,206 45.7 
East South Central6,905 22.3 6,977 22.4 
Middle Atlantic2,015 6.5 2,028 6.5 
Mountain1,992 6.4 1,992 6.4 
West North Central2,735 8.8 2,751 8.8 
Total mortgage loans at amortized cost$30,962 100.0 %$31,116 100.0 %
Commercial Mortgage Loans by Property Type
March 31, 2026December 31, 2025
Carrying ValuePercent of TotalCarrying ValuePercent of Total
Commercial   
Multifamily$8,138 26.3 %$8,184 26.3 %
Office7,651 24.7 7,703 24.8 
Industrial
3,228 10.4 3,248 10.4 
Retail
9,930 32.1 9,953 32.0 
Mixed use/Other
2,015 6.5 2,028 6.5 
Total mortgage loans at amortized cost$30,962 100.0 %$31,116 100.0 %
Mortgage loans are evaluated on a quarterly basis for impairment on an individual basis through a monitoring process and review of key credit indicators, such as economic trends, delinquency rates, property valuations, occupancy and rental rates and loan-to-value ratios. A loan is considered impaired when the Company believes it will not collect the principal and interest set forth in the contractual terms of the loan. An internal grade is assigned to each mortgage loan, with a grade of 1 being the highest and least likely for an impairment and a grade of 7 being the lowest and most likely for an impairment. An allowance for credit losses on mortgage loans is established on each loan for those amounts we believe will not be collected according to the contractual terms of the respective loan agreement. The table below shows mortgage loans by year of origination as of March 31, 2026.
20232022202020192018Total
Commercial mortgage loans:
Risk Rating:
1-2 internal grade$8,061 $96 4,905 $7,440 $10,460 $30,962 
Total commercial mortgage loans$8,061 $96 $4,905 $7,440 $10,460 $30,962 

As of March 31, 2026, the Company had a credit loss allowance of $286, summarized in the following rollforward:
Beginning balance, January 1, 2026
$286 
Current-period provision for expected credit losses— 
Write-off charged against the allowance, if any— 
Recoveries of amounts previously written off, if any— 
Ending balance, March 31, 2026
$286 
As of March 31, 2026, the Company had one commercial mortgage loan with a carrying value of $4.0 million with principal and interest payments past due. Other than the commercial office mortgage loan, all other loan receivables were current, with no delinquencies, as of March 31, 2026.
Accrued interest of $129 has been excluded from commercial mortgage loans carrying value and is reported within "Accrued investment income" on the accompanying Consolidated Balance Sheets.
Net Investment Gains and Losses
Details of net investment gains (losses) reported on the accompanying Consolidated Statements of Income were as follows:
Three months ended March 31,
2026 2025
Fixed maturities:
Available-for-sale$(298)$(797)
Allowance for credit losses— — 
Mortgage loans allowance for credit losses— 4 
Other long-term investments44  39 
Total net investment gains (losses)$(254) $(754)
The proceeds and gross realized gains (losses) on the sale of available-for-sale fixed maturity securities are as follows:

 Three months ended March 31,
2026 2025
Proceeds from sales$67,642  $24,318 
Gross realized gains13  24 
Gross realized losses(311) 821 

Net Investment Income

Net investment income is comprised of the following:

Three months ended March 31,
(In thousands)20262025
Investment income:
Interest on fixed maturities$24,937 $21,124 
Income on other long-term investments1,268 1,793 
Other2,931 3,619 
Total investment income$29,136 $26,536 
Less investment expenses2,096 3,078 
Net investment income$27,040 $23,458 

Funding Commitment
Pursuant to agreements with our limited liability partnership investments, we are contractually committed through 2030 to make capital contributions upon the request of certain of the partnerships. The timing of these additional contributions is unknown and based upon the timing of when investments and agreements are executed or signed compared to when the actual commitments are funded or closed. Our remaining potential contractual obligation was $15.3 million at March 31, 2026.