| Investments |
Investments Net Investment Income Sources of net investment income were as follows for the periods indicated: | | | | | | | | | | | | | | | | | Three months ended
March 31, | | | (Amounts in thousands) | 2026 | | 2025 | | | | | | Fixed maturity securities available-for-sale | $ | 67,895 | | | $ | 58,452 | | | | | | | Cash, cash equivalents and short-term investments | 5,325 | | | 6,623 | | | | | | | Gross investment income before expenses and fees | 73,220 | | | 65,075 | | | | | | | Investment expenses and fees | (2,314) | | | (2,038) | | | | | | | Net investment income | $ | 70,906 | | | $ | 63,037 | | | | | |
Net Investment Gains (Losses) The following table sets forth net investment gains (losses) for the periods indicated: | | | | | | | | | | | | | | | | | Three months ended
March 31, | | | (Amounts in thousands) | 2026 | | 2025 | | | | | | Fixed maturity securities available-for-sale: | | | | | | | | | Gross realized gains | $ | 354 | | | $ | 369 | | | | | | | Gross realized (losses) | (6,164) | | | (3,497) | | | | | | | Net realized gains (losses) | (5,810) | | | (3,128) | | | | | | | | | | | | | | | Change in allowance for credit losses on fixed maturity securities | — | | | (273) | | | | | | | Other | (13) | | | 158 | | | | | | | | | | | | | | | Net investment gains (losses) | $ | (5,823) | | | $ | (3,243) | | | | | |
There was no allowance for credit losses recorded on fixed maturity securities classified as available-for-sale as of March 31, 2026, and December 31, 2025. Unrealized Investment Gains (Losses) Net unrealized gains and losses on available-for-sale securities reflected as a separate component of accumulated other comprehensive income (“AOCI”) were as follows as of the dates indicated: | | | | | | | | | | | | (Amounts in thousands) | March 31, 2026 | | December 31, 2025 | Net unrealized gains (losses) on investment securities: | | | | | Fixed maturity securities | $ | (96,015) | | | $ | (31,455) | | | | | | | | | | | Income taxes | 20,704 | | | 6,864 | | | Net unrealized investment gains (losses) | $ | (75,311) | | | $ | (24,591) | |
The change in net unrealized gains (losses) on available-for-sale securities reported in accumulated other comprehensive income was as follows as of and for the periods indicated: | | | | | | | | | | | | | Three months ended
March 31, | (Amounts in thousands) | 2026 | | 2025 | | Beginning balance | $ | (24,591) | | | $ | (207,624) | | | | | | | Unrealized gains (losses) arising during the period: | | | | | Unrealized gains (losses) on investment securities | (70,370) | | | 71,848 | | | Provision for income taxes | 15,060 | | | (15,425) | | | Change in unrealized gains (losses) on investment securities | (55,310) | | | 56,423 | | Reclassification adjustments to net investment (gains) losses, net of taxes of $(1,220) and $(657), respectively | 4,590 | | | 2,471 | | | Change in net unrealized investment gains (losses) | (50,720) | | | 58,894 | | | Ending balance | $ | (75,311) | | | $ | (148,730) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Amounts reclassified out of accumulated other comprehensive income to net investment gains (losses) include realized gains (losses) on sales of securities, which are determined on a specific identification basis. Fixed Maturity Securities Available-For-Sale As of March 31, 2026, the amortized cost, gross unrealized gains (losses) and fair value of our investment securities were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | (Amounts in thousands) | Amortized cost | | Gross unrealized gains | | Gross unrealized losses | | | | Fair value | | U.S. government, agencies and GSEs | $ | 268,060 | | | $ | 2,941 | | | $ | (2,279) | | | | | $ | 268,722 | | | State and political subdivisions | 521,242 | | | 1,633 | | | (53,043) | | | | | 469,832 | | | Non-U.S. government | 179,045 | | | 2,178 | | | (1,680) | | | | | 179,543 | | | U.S. corporate | 2,855,124 | | | 29,156 | | | (60,284) | | | | | 2,823,996 | | | Non-U.S. corporate | 821,423 | | | 9,127 | | | (14,226) | | | | | 816,324 | | | Residential mortgage-backed | 338,304 | | | 3,889 | | | (709) | | | | | 341,484 | | | Commercial mortgage-backed | 199,514 | | | 866 | | | (1,748) | | | | | 198,632 | | | Other asset-backed | 1,047,090 | | | 3,806 | | | (15,640) | | | | | 1,035,256 | | | Total fixed maturity securities available-for-sale | $ | 6,229,802 | | | $ | 53,596 | | | $ | (149,609) | | | | | $ | 6,133,789 | | | | | | | | | | | | | | | | | | | | | |
As of December 31, 2025, the amortized cost, gross unrealized gains (losses) and fair value of our investment securities were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | (Amounts in thousands) | Amortized cost | | Gross unrealized gains | | Gross unrealized losses | | | | Fair value | | U.S. government, agencies and GSEs | $ | 253,706 | | | $ | 4,893 | | | $ | (1,292) | | | | | $ | 257,307 | | | State and political subdivisions | 527,584 | | | 1,914 | | | (50,526) | | | | | 478,972 | | | Non-U.S. government | 180,669 | | | 5,176 | | | (383) | | | | | 185,462 | | | U.S. corporate | 2,806,747 | | | 54,322 | | | (50,342) | | | | | 2,810,727 | | | Non-U.S. corporate | 778,640 | | | 17,020 | | | (12,604) | | | | | 783,056 | | | Residential mortgage-backed | 342,915 | | | 6,496 | | | (78) | | | | | 349,333 | | | Commercial mortgage-backed | 128,692 | | | 1,355 | | | (485) | | | | | 129,562 | | | Other asset-backed | 1,063,044 | | | 6,295 | | | (13,216) | | | | | 1,056,123 | | | Total fixed maturity securities available-for-sale | $ | 6,081,997 | | | $ | 97,471 | | | $ | (128,926) | | | | | $ | 6,050,542 | | | | | | | | | | | | | | | | | | | | | |
Gross Unrealized Losses and Fair Values of Fixed Maturity Securities Available-For-Sale The following table presents the gross unrealized losses and fair values of our fixed maturity securities for which an allowance for credit losses has not been recorded, aggregated by investment type and length of time that individual fixed maturity securities have been in a continuous unrealized loss position, as of March 31, 2026: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Less than 12 months | | 12 months or more | | Total | (Dollar amounts in thousands) | Fair value | | Gross unrealized losses | | Number of securities | | Fair value | | Gross unrealized losses | | Number of securities | | Fair value | | Gross unrealized losses | | Number of securities | | Fixed maturity securities: | | | | | | | | | | | | | | | | | | | U.S. government, agencies and GSEs | $ | 73,162 | | | $ | (1,151) | | | 17 | | | $ | 19,544 | | | $ | (1,128) | | | 6 | | | $ | 92,706 | | | $ | (2,279) | | | 23 | | | State and political subdivisions | 30,838 | | | (1,808) | | | 14 | | | 405,008 | | | (51,235) | | | 80 | | | 435,846 | | | (53,043) | | | 94 | | | Non-U.S. government | 58,513 | | | (1,444) | | | 70 | | | 9,892 | | | (236) | | | 1 | | | 68,405 | | | (1,680) | | | 71 | | | U.S. corporate | 713,576 | | | (11,733) | | | 194 | | | 802,476 | | | (48,551) | | | 148 | | | 1,516,052 | | | (60,284) | | | 342 | | | Non-U.S. corporate | 199,918 | | | (3,742) | | | 73 | | | 188,776 | | | (10,484) | | | 39 | | | 388,694 | | | (14,226) | | | 112 | | | Residential mortgage-backed | 73,911 | | | (709) | | | 33 | | | — | | | — | | | — | | | 73,911 | | | (709) | | | 33 | | | Commercial mortgage-backed | 116,575 | | | (1,748) | | | 33 | | | — | | | — | | | — | | | 116,575 | | | (1,748) | | | 33 | | | Other asset-backed | 398,032 | | | (2,823) | | | 116 | | | 257,896 | | | (12,817) | | | 73 | | | 655,928 | | | (15,640) | | | 189 | | | Total for fixed maturity securities in an unrealized loss position | $ | 1,664,525 | | | $ | (25,158) | | | 550 | | | $ | 1,683,592 | | | $ | (124,451) | | | 347 | | | $ | 3,348,117 | | | $ | (149,609) | | | 897 | |
We did not recognize an allowance for credit losses on securities in an unrealized loss position included in the table above. Based on a qualitative and quantitative review of the issuers of the securities, we believe the unrealized losses are largely due to changes in interest rates and recent market volatility and are not indicative of credit losses. The issuers continue to make timely principal and interest payments. For all securities in an unrealized loss position without an allowance for credit losses, we expect to recover the amortized cost based on our estimate of the amount and timing of cash flows to be collected. We do not intend to sell, nor do we expect that we will be required to sell these securities prior to recovering our amortized cost. The following table presents the gross unrealized losses and fair values of our fixed maturity securities, aggregated by investment type and length of time that individual fixed maturity securities have been in a continuous unrealized loss position, as of December 31, 2025: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Less than 12 months | | 12 months or more | | Total | (Dollar amounts in thousands) | Fair value | | Gross unrealized losses | | Number of securities | | Fair value | | Gross unrealized losses | | Number of securities | | Fair value | | Gross unrealized losses | | Number of securities | | Fixed maturity securities: | | | | | | | | | | | | | | | | | | | U.S. government, agencies and GSEs | $ | 34,142 | | | $ | (384) | | | 6 | | | $ | 22,664 | | | $ | (908) | | | 7 | | | $ | 56,806 | | | $ | (1,292) | | | 13 | | | State and political subdivisions | 18,053 | | | (1,483) | | | 9 | | | 422,895 | | | (49,043) | | | 83 | | | 440,948 | | | (50,526) | | | 92 | | | Non-U.S. government | 15,323 | | | (146) | | | 20 | | | 10,525 | | | (237) | | | 2 | | | 25,848 | | | (383) | | | 22 | | | U.S. corporate | 182,483 | | | (2,790) | | | 49 | | | 908,852 | | | (47,552) | | | 163 | | | 1,091,335 | | | (50,342) | | | 212 | | | Non-U.S. corporate | 38,506 | | | (1,800) | | | 16 | | | 230,778 | | | (10,804) | | | 50 | | | 269,284 | | | (12,604) | | | 66 | | | Residential mortgage-backed | 24,879 | | | (78) | | | 11 | | | — | | | — | | | — | | | 24,879 | | | (78) | | | 11 | | | Commercial mortgage-backed | 56,000 | | | (485) | | | 14 | | | — | | | — | | | — | | | 56,000 | | | (485) | | | 14 | | | Other asset-backed | 114,991 | | | (568) | | | 41 | | | 312,575 | | | (12,648) | | | 84 | | | 427,566 | | | (13,216) | | | 125 | | | Total for fixed maturity securities in an unrealized loss position | $ | 484,377 | | | $ | (7,734) | | | 166 | | | $ | 1,908,289 | | | $ | (121,192) | | | 389 | | | $ | 2,392,666 | | | $ | (128,926) | | | 555 | |
Contractual Maturities of Fixed Maturity Securities Available-For-Sale The scheduled maturity distribution of fixed maturity securities as of March 31, 2026, is set forth below. Actual maturities may differ from contractual maturities because issuers of securities may have the right to call or prepay obligations with or without call or prepayment penalties. | | | | | | | | | | | | (Amounts in thousands) | Amortized cost | | Fair value | | Due one year or less | $ | 343,393 | | | $ | 341,767 | | | Due after one year through five years | 1,185,756 | | | 1,151,219 | | | Due after five years through ten years | 2,546,363 | | | 2,507,986 | | | Due after ten years | 569,382 | | | 557,445 | | | Subtotal | 4,644,894 | | | 4,558,417 | | | Residential mortgage-backed | 338,304 | | | 341,484 | | | Commercial mortgage-backed | 199,514 | | | 198,632 | | | Other asset-backed | 1,047,090 | | | 1,035,256 | | | Total fixed maturity securities available-for-sale | $ | 6,229,802 | | | $ | 6,133,789 | |
As of March 31, 2026, securities issued by the finance and insurance, utilities, consumer—non-cyclical, technology and communications, energy, and capital goods industry groups represented approximately 32%, 13%, 12%, 10%, 10%, and 10% respectively, of our domestic and foreign corporate fixed maturity securities portfolio. No other industry group comprised more than 9% of our investment portfolio. As of March 31, 2026, we did not hold any fixed maturity securities in any single issuer, other than securities issued or guaranteed by the U.S. government, which exceeded 10% of equity. As of March 31, 2026, and December 31, 2025, $19.0 million and $21.3 million, respectively, of securities in our portfolio were on deposit with various state insurance commissioners in order to comply with relevant insurance regulations. In connection with its reinsurance activities, the Company is required to maintain assets in trusts for the benefit of its contractual counterparties. As of March 31, 2026 and December 31, 2025, the fair value of the assets on deposit in these trusts was $344.4 million and $336.4 million, respectively, of which $40.1 million and $35.2 million, respectively, related to cash and cash equivalents. During 2024, the Company entered into an agreement to invest in a limited partnership with an expected term of ten years. The investment is recorded within Other assets. As of March 31, 2026, we have committed to additionally fund approximately $8.6 million over the remaining life of the fund. As of March 31, 2026, the Company has commitments of $248.2 million to purchase private placement investments.
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