
($ in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
March 31, 2026
Fixed maturity securities, available-for-sale:
U.S. government securities	$	160,144	$	178	$	(774)	$	—	$	159,548
Non U.S government securities	2,696		—		(25)		—		2,671
Corporate securities and miscellaneous	807,859		8,007		(8,881)		(6,500)		800,485
Municipal securities	96,647		1,150		(2,168)		—		95,629
Residential mortgage-backed securities	475,069		6,260		(10,154)		—		471,175
Commercial mortgage-backed securities	79,618		669		(615)		—		79,672
Other asset-backed securities	586,179		3,239		(3,491)		—		585,927
Total fixed maturity securities, available-for-sale	$	2,208,212	$	19,503	$	(26,108)	$	(6,500)	$	2,195,107
Fixed maturity securities, held-to-maturity:
Other asset-backed securities	$	30,395	$	4,196	$	—	$	(301)	$	34,290
Total fixed maturity securities, held-to-maturity	$	30,395	$	4,196	$	—	$	(301)	$	34,290


($ in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Loss		Allowance for Credit Losses		Fair Value
December 31, 2025
Fixed maturity securities, available-for-sale:
U.S. government securities	$	44,190	$	292	$	(14)	$	—	$	44,468
Corporate securities and miscellaneous	632,244		14,223		(3,080)		(7,000)		636,387
Municipal securities	102,691		1,725		(2,300)		—		102,116
Residential mortgage-backed securities	487,145		8,928		(9,486)		—		486,587
Commercial mortgage-backed securities	72,631		1,016		(597)		—		73,050
Other asset-backed securities	509,854		5,194		(1,353)		—		513,695
Total fixed maturity securities, available-for-sale	$	1,848,755	$	31,378	$	(16,830)	$	(7,000)	$	1,856,303
Fixed maturity securities, held-to-maturity:
Other asset-backed securities	$	33,290	$	829	$	(48)	$	(468)	$	33,603
Total fixed maturity securities, held-to-maturity	$	33,290	$	829	$	(48)	$	(468)	$	33,603



($ in thousands)	Amortized Cost		Fair Value
Due in less than one year	$	56,515	$	54,611
Due after one year through five years	636,682		630,559
Due after five years through ten years	304,483		305,672
Due after ten years	69,666		67,491
Mortgage-backed securities	554,687		550,847
Other asset-backed securities	586,179		585,927
Total	$	2,208,212	$	2,195,107

Expected maturities may differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Also, changing interest rates, tax considerations or other factors may result in portfolio sales prior to maturity.

At March 31, 2026, the Company had U.S. government agencies mortgage-backed fixed maturity securities, with a carrying value of approximately $71.3 million pledged as collateral for a loan (the “FHLB Loan”) from the Federal Home Loan Bank of Dallas (“FHLB”) pursuant to an Advances and Security Agreement between the Company and FHLB (the “Advances and Security Agreement”). In accordance with the terms of the FHLB Loan, the Company retains all rights regarding these pledged securities.

At March 31, 2026, the Company had assets with fair values of approximately $77.5 million pledged as collateral for performance obligations under reinsurance agreements. In accordance with the terms of the trust agreements, the Company retains all rights regarding these securities, of which $63.2 million are residential mortgage-backed securities, $12.1 million of cash and cash equivalents and other assets and $2.2 million of short-term investments.

The following tables set forth the gross unrealized losses and the corresponding fair values of investments, aggregated by length of time that individual securities had been in a continuous unrealized loss position as of March 31, 2026 and 2025:


	Less than 12 Months				12 Months or More				Total
($ in thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
March 31, 2026
Fixed maturity securities, available-for-sale:
U.S. government securities	$	91,541	$	(769)	$	707	$	(5)	$	92,248	$	(774)
Non-U.S. government securities	2,671		(25)		—		—		2,671		(25)
Corporate securities and miscellaneous	341,776		(4,883)		57,293		(3,998)		399,069		(8,881)
Municipal securities	23,170		(296)		19,570		(1,872)		42,740		(2,168)
Residential mortgage-backed securities	130,908		(1,017)		69,744		(9,137)		200,652		(10,154)
Commercial mortgage-backed securities	11,391		(21)		8,276		(594)		19,667		(615)
Other asset-backed securities	328,244		(2,584)		7,783		(907)		336,027		(3,491)




Total	$	929,701	$	(9,595)	$	163,373	$	(16,513)	$	1,093,074	$	(26,108)


	Less than 12 Months				12 Months or More				Total
($ in thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
December 31, 2025
Fixed maturity securities, available-for-sale:
U.S. government securities	$	349	$	(1)	$	1,565	$	(13)	$	1,914	$	(14)
Corporate securities and miscellaneous	67,644		(346)		63,575		(2,734)		131,219		(3,080)
Municipal securities	19,157		(400)		22,004		(1,900)		41,161		(2,300)
Residential mortgage-backed securities	56,147		(262)		74,075		(9,224)		130,222		(9,486)
Commercial mortgage-backed securities	4,646		(3)		8,363		(594)		13,009		(597)
Other asset-backed securities	85,098		(424)		16,081		(929)		101,179		(1,353)
Total fixed maturity securities, available-for-sale	233,041		(1,436)		185,663		(15,394)		418,704		(16,830)
Fixed maturity securities, held-to-maturity:
Other asset-backed securities	1,912		(48)		—		—		1,912		(48)
Total fixed maturity securities, held-to-maturity:	1,912		(48)		—		—		1,912		(48)
Total	$	234,953	$	(1,484)	$	185,663	$	(15,394)	$	420,616	$	(16,878)

The Company regularly monitors its available-for-sale fixed maturity securities that have fair values less than cost or amortized cost for signs of impairment, an assessment that requires significant management judgment regarding the evidence known. Such judgments could change in the future as more information becomes known, which could negatively impact the amounts reported. Among the factors that management considers for fixed maturity securities are the financial condition of the issuer including receipt of scheduled principal and interest cash flows, and intent to sell, including if it is more likely than not that the Company will be required to sell the investments before recovery.

As of March 31, 2026, the Company had 1,057 lots of fixed maturity securities in an unrealized loss position. The Company does not have an intent to sell these securities and it is not more likely than not that the Company will be required to sell these securities before maturity or recovery of its cost basis. The Company reviewed its investments at March 31, 2026 and determined that for two available-for-sale securities in the “corporate securities and miscellaneous” category, credit impairments existed, based on new recovery analysis that showed deteriorating conditions raising credit concerns. Other than the securities discussed previously, the Company determined that no other credit impairment existed in the gross unrealized holding losses, due to the reasons discussed below:

•U.S. government securities and municipal securities: These securities were issued by the U.S. Treasury Department, Federal government-sponsored entities or by state and local governments. The decline in fair values was attributable to changes in interest rates and not credit quality. The Company does not intend to sell these securities and it is likely that it will not do so before their anticipated recovery. Therefore, the Company does not consider these impaired securities.

•Corporate securities and miscellaneous: Corporations in various industries issued these securities. The decline in fair values was attributable to changes in interest rates and not credit quality. The Company reviewed the issuers of these securities to identify any significant adverse change in financial condition, a change in the quality of credit enhancement (if any), a ratings decrease, or negative outlook assignment from a major credit rating agency, and any failure to make interest or principal payments. After these reviews, the Company determined that the decline in fair values was attributable to changes in interest rates and not credit quality. The Company does not intend to sell these securities and it is likely that it will not do so before their anticipated recovery. Therefore, the Company does not consider these impaired securities.

•Residential mortgage-backed securities, commercial mortgage-backed securities, and other asset-backed securities: The decline in fair values was attributable to changes in interest rates and not credit quality. The Company does not intend to sell these securities and it is likely that it will not do so before their anticipated recovery. Therefore, the Company does not consider these impaired securities.


($ in thousands)	Fixed Maturity Securities, Available-For-Sale		Fixed Maturity Securities, Held-to-Maturity
Balance at December 31, 2025	$	7,000	$	468


Recoveries of amounts previously written off	(500)		(167)
Balance at March 31, 2026	$	6,500	$	301



($ in thousands)	2026		2025
Gross realized gains
Fixed maturity securities, available-for-sale	$	1,632	$	453
Equity securities	—		1,745
Other	175		4
Total	1,807		2,202
Gross realized losses
Fixed maturity securities, available-for-sale	(258)		(120)
Equity securities	—		(678)
Other	(139)		(61)
Total	(397)		(859)
Net unrealized gains (losses) on investments
Equity securities	(33)		1,080
Mortgage loans	99		(66)
Other	1,709		4,393
Net investment gains	$	3,185	$	6,750



($ in thousands)	2026		2025
Income (loss):
Fixed maturity securities, available-for-sale	$	29,411	$	17,288
Fixed maturity securities, held-to-maturity	(1,077)		822
Equity securities	18		617
Equity method investments	(1,297)		(1,988)
Mortgage loans	(665)		661
Indirect loans	(1,793)		(741)
Short-term investments and cash	3,474		3,192
Other	686		1,061
Total investment income	28,757		20,912
Investment expenses	(1,702)		(1,490)
Net investment income	$	27,055	$	19,422

The following table sets forth the change in net unrealized gains (losses) on the Company’s investment portfolio, net of deferred income taxes, included in other comprehensive loss for the three months ended March 31, 2026 and 2025: