Investments

3 Months Ended

Mar. 31, 2026

Investments, Debt and Equity Securities [Abstract]

Note 5 -- Investments

Available-for-Sale Fixed-Maturity Securities

The Company holds investments in fixed-maturity securities that are classified as available-for-sale. As of March 31, 2026 and December 31, 2025, the cost or amortized cost, allowance for credit loss, gross unrealized gains and losses, and estimated fair value of the Company’s available-for-sale fixed-maturity securities by security type were as follows:


	Cost or Amortized		Allowance for Credit		Gross Unrealized		Gross Unrealized			Estimated Fair
	Cost		Loss		Gains		Losses			Value
As of March 31, 2026
U.S. Treasury and U.S. government agencies	$	653,256	$	—	$	487	$	(5,455	)	$	648,288
Corporate bonds		242,120		—		192		(1,174	)		241,138
Commercial mortgage-backed securities		25,597		—		18		(195	)		25,420
Available-for-sale fixed-maturity securities	$	920,973	$	—	$	697	$	(6,824	)	$	914,846

As of December 31, 2025
U.S. Treasury and U.S. government agencies	$	332,284	$	—	$	1,785	$	(717	)	$	333,352
Corporate bonds		241,843		—		1,463		(384	)		242,922
Commercial mortgage-backed securities		21,256		—		74		(275	)		21,055
Available-for-sale fixed-maturity securities	$	595,383	$	—	$	3,322	$	(1,376	)	$	597,329

Expected maturities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without penalties. As of March 31, 2026 and December 31, 2025, the scheduled contractual maturities of available-for-sale fixed-maturity securities, with securities not due at a single maturity date shown separately, were as follows:


	March 31, 2026				December 31, 2025
	Cost or		Estimated		Cost or		Estimated
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	15,139	$	15,127	$	10,202	$	10,214
Due after one year through five years		377,942		375,912		353,454		354,648
Due after five years through ten years		501,794		497,957		209,970		210,963
Due after ten years		501		430		501		449
Commercial mortgage-backed securities		25,597		25,420		21,256		21,055
Available-for-sale fixed-maturity securities	$	920,973	$	914,846	$	595,383	$	597,329

Securities on Deposit

As of March 31, 2026 and December 31, 2025, the fair value of available-for-sale fixed-maturity securities on deposit with various regulatory authorities was $1,691 and $1,807, respectively.

Sales of Available-for-Sale Fixed-Maturity Securities

Proceeds received and the gross realized gains and losses from sales of available-for-sale fixed-maturity securities for the three months ended March 31, 2026 and 2025 were as follows:


			Gross Realized		Gross Realized
	Proceeds		Gains		Losses
Three months ended March 31, 2026	$	1,878	$	49	$	—
Three months ended March 31, 2025	$	2,610	$	24	$	(4	)

Gross Unrealized Losses for Available-for-Sale Fixed-Maturity Securities

As of March 31, 2026 and December 31, 2025, available-for-sale fixed-maturity securities with gross unrealized loss positions by investment category and length of time the individual securities have been in a continuous loss position were as follows:


	Less Than Twelve Months					Twelve Months or Longer					Total
	Gross			Estimated		Gross			Estimated		Gross			Estimated
	Unrealized			Fair		Unrealized			Fair		Unrealized			Fair
As of March 31, 2026	Losses			Value		Losses			Value		Losses			Value
U.S. Treasury and U.S. government agencies	$	(5,289	)	$	529,963	$	(166	)	$	2,915	$	(5,455	)	$	532,878
Corporate bonds		(1,001	)		165,245		(173	)		1,410		(1,174	)		166,655
Commercial mortgage-backed securities		(195	)		17,029		—			—		(195	)		17,029
Total	$	(6,485	)	$	712,237	$	(339	)	$	4,325	$	(6,824	)	$	716,562


	Less Than Twelve Months					Twelve Months or Longer					Total
	Gross			Estimated		Gross			Estimated		Gross			Estimated
	Unrealized			Fair		Unrealized			Fair		Unrealized			Fair
As of December 31, 2025	Losses			Value		Losses			Value		Losses			Value
U.S. Treasury and U.S. government agencies	$	(553	)	$	208,273	$	(164	)	$	2,918	$	(717	)	$	211,191
Corporate bonds		(289	)		28,303		(95	)		1,187		(384	)		29,490
Commercial mortgage-backed securities		(275	)		16,749		—			—		(275	)		16,749
Total	$	(1,117	)	$	253,325	$	(259	)	$	4,105	$	(1,376	)	$	257,430

As of March 31, 2026 and December 31, 2025, there were 111 and 47 available-for-sale fixed-maturity securities in an unrealized loss position, respectively.

Allowance for Credit Losses of Available-for-Sale Fixed-Maturity Securities

The Company regularly reviews its individual available-for-sale fixed-maturity securities for credit impairment. The Company considers various factors in determining whether a credit loss exists for each individual security, including:

•

the financial condition and near-term prospects of the issuer, including any specific events that may affect its operations or earnings;

•

the extent to which the market value of the security has been below its cost or amortized cost;

•

general market conditions and industry or sector specific factors and other qualitative factors;

•

nonpayment by the issuer of its contractually obligated interest and principal payments; and

•

the Company’s intent and ability to hold the investment for a period of time sufficient to allow for the recovery of costs.

There was no balance or activity in the allowance for credit losses of available-for-sale fixed-maturity securities during the three months ended March 31, 2026 and 2025.

Equity Securities

The Company holds investments in equity securities measured at fair values which are readily determinable. As of March 31, 2026 and December 31, 2025, the cost, gross unrealized gains and losses, and estimated fair value of the Company’s equity securities were as follows:


			Gross Unrealized		Gross Unrealized			Estimated Fair
	Cost		Gains		Losses			Value
March 31, 2026	$	62,461	$	5,153	$	(2,558	)	$	65,056
December 31, 2025	$	61,597	$	6,204	$	(1,911	)	$	65,890

The table below presents the portion of unrealized gains and losses in the Company’s consolidated statements of income related to equity securities still held:


	Three Months Ended
	March 31,
	2026			2025
Net losses recognized	$	(1,213	)	$	(759	)
Exclude: Net realized gains recognized for securities sold		485			1,147
Net unrealized investment losses	$	(1,698	)	$	(1,906	)

Sales of Equity Securities

Proceeds received and the gross realized gains and losses from sales of equity securities for the three months ended March 31, 2026 and 2025 were as follows:


			Gross Realized		Gross Realized
	Proceeds		Gains		Losses
Three months ended March 31, 2026	$	15,074	$	756	$	(271	)
Three months ended March 31, 2025	$	9,542	$	1,331	$	(184	)

Limited Partnership Investments

The Company has interests in limited partnerships that are not registered or readily tradeable on a securities exchange. These partnerships are private equity funds managed by general partners who make decisions with regard to financial policies and operations. As such, the Company is not the primary beneficiary and does not consolidate these partnerships. The following table provides information related to the Company’s investments in limited partnerships:


	March 31, 2026						December 31, 2025
	Carrying		Unfunded				Carrying		Unfunded
Investment Strategy	Value		Balance		(%) (a)		Value		Balance		(%) (a)
Primarily in senior secured loans and, to a limited extent, in other debt and equity securities of private U.S. lower-middle-market companies. (b)(c)(e)	$	1,701	$	—		12.24	$	1,877	$	—		12.31
Value creation through active distressed debt investing primarily in bank loans, public and private corporate bonds, asset-backed securities, and equity securities received in connection with debt restructuring. (b)(d)(e)		597		—		1.27		587		—		1.27
High returns and long-term capital appreciation through investments in the power, utility and energy industries, and in the infrastructure sector. (b)(f)(g)		2,821		—		0.18		2,769		—		0.18
Value-oriented investments in less liquid and mispriced senior and junior debts of private equity-backed companies. (b)(h)(i)		1,276		—		0.52		1,333		—		0.53
Value-oriented investments in mature real estate private equity funds and portfolios globally. (b)(j)		5,948		1,956		1.32		6,182		2,042		1.32
Risk-adjusted returns on credit and equity investments, primarily in private equity-owned companies. (b)(k)		4,828		1,805		0.53		4,942		1,610		0.54
Limited partnership investments	$	17,171	$	3,761			$	17,690	$	3,652

(a)

Represents the Company’s percentage investment in the fund as of each balance sheet date.

(b)

Except under certain circumstances, withdrawals from the funds or any assignments are not permitted. Distributions, except income from late admission of a new limited partner, will be received when underlying investments of the funds are liquidated.

(c)

The term is expected to be two years following the maturity of the fund’s outstanding leverage. Although the capital commitment period has expired, follow-on investments and pending commitments may require additional fundings.

(d)

Effective July 1, 2023, this investment is in the process of winding down. Although the capital commitment period has ended, the general partner could still request an additional funding under certain circumstances.

(e)

At the fund manager’s discretion, the term of the fund may be extended for up to two additional one-year periods.

(f)

Expected to have a ten-year term. The capital commitment period has expired but the general partner may request additional funding for follow-on investment.

(g)

With the consent of a supermajority of partners, the term of the fund may be extended for up to three additional one-year periods.

(h)

Expected to have an eight-year term from the commencement date, which can be extended for up to two additional one-year periods with the consent of either the advisory committee or a majority of limited partners.

(i)

The capital commitment period has ended but an additional funding may be requested.

(j)

The term is expected to end November 27, 2027. The term may be extended for up to four additional one-year periods at the general partner’s discretion, and up to two additional one-year periods with the consent of the advisory committee.

(k)

Expected to have an eight-year term after the final admission date. The term may be extended for an additional one-year period at the general partner’s discretion, and up to two additional one-year periods with the consent of either the advisory committee or a majority of limited partners.

As of March 31, 2026 and December 31, 2025, the Company’s net cumulative contributed capital to the limited partnership investments totaled $18,502 and $18,697, respectively, and the Company’s maximum exposure to loss aggregated $17,171 and $17,690, respectively.

Real Estate Investments

Real estate investments consist of the following:


	March 31,			December 31,
	2026			2025
Land	$	49,646		$	50,052
Land improvements		14,760			14,760
Buildings and building improvements		44,097			44,019
Tenant and leasehold improvements		2,265			2,265
Construction in progress		829			89
Other		2,001			2,001
Total, at cost		113,598			113,186
Less: accumulated depreciation		(10,169	)		(9,440	)
Real estate investments	$	103,429		$	103,746

Depreciation expense related to real estate investments was $729 and $339 for the three months ended March 31, 2026 and 2025, respectively.

Net Investment Income

Net investment income, by source, is summarized as follows:


	Three Months Ended
	March 31,
	2026			2025
Available-for-sale fixed-maturity securities	$	7,870		$	7,514
Equity securities		653			487
Investment expense		(203	)		(185	)
Limited partnership investments		(324	)		(626	)
Real estate investments		455			318
Cash and cash equivalents		8,721			6,243
Other		129			—
Net investment income	$	17,301		$	13,751