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 three months ended March 31, 2026, or for the year-ended December 31, 2025. The Company holds only investment grade securities from high credit quality issuers. The gross unrealized losses were $8.5 million

and $8.4 million as of March 31, 2026 and December 31, 2025, respectively. The gross unrealized losses were from the Company's available-for-sale securities, 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 gains or losses, and estimated fair value of the investments in securities classified as available for sale as of March 31, 2026 and December 31, 2025 were as follows (dollars in thousands):


	March 31, 2026
	Cost or		Gross Unrealized					Estimated
	Amortized Cost		Gains		Losses			Fair Value
Debt Securities:
U.S. Government	$	4,716	$	7	$	(19	)	$	4,704
State and local government		20,185		2		(2,987	)		17,200
Corporate debt		23,559		—		(1,483	)		22,076
Asset-backed securities		15,167		—		(43	)		15,124
Mortgage-backed securities		21,681		—		(3,709	)		17,972
Commercial mortgage-backed securities		1,169		—		(46	)		1,123
Collateralized mortgage obligations		2,361		—		(246	)		2,115
Total debt securities available for sale	$	88,838	$	9	$	(8,533	)	$	80,314


	December 31, 2025
	Cost or		Gross Unrealized					Estimated
	Amortized Cost		Gains		Losses			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

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):


	March 31, 2026
	Less than 12 months							Greater than 12 months							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		4	$	2,453	$	(9	)		2	$	552	$	(10	)		6	$	3,005	$	(19	)
State and local government		1		144		(1	)		95		16,170		(2,986	)		96		16,314		(2,987	)
Corporate debt		1		998		(2	)		44		21,078		(1,481	)		45		22,076		(1,483	)
Asset-backed securities		10		12,805		(26	)		1		195		(17	)		11		13,000		(43	)
Mortgage-backed securities		4		17		(1	)		60		17,955		(3,708	)		64		17,972		(3,709	)
Commercial mortgage-backed securities		2		277		(1	)		2		846		(45	)		4		1,123		(46	)
Collateralized mortgage obligations		—		—		—			24		2,115		(246	)		24		2,115		(246	)
Total debt securities available for sale		22	$	16,694	$	(40	)		228	$	58,911	$	(8,493	)		250	$	75,605	$	(8,533	)


	December 31, 2025
	Less than 12 months							Greater than 12 months							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	)

The following table summarizes the gross realized gains and losses from sales or maturities of available-for-sale debt and equity securities, as follows (dollars in thousands):


	Three Months Ended March 31,
	2026			2025
Debt securities:
Gross realized gains	$	4		$	5
Gross realized losses		(5	)		(2	)
Total debt securities		(1	)		3
Equity securities:
Gross realized gains	$	—		$	—
Gross realized losses		(13	)		—
Total equity securities		(13	)		—
Total net realized investment gains (losses)	$	(14	)	$	3

Proceeds from the sales of available-for-sale securities were $344,000 and $24.5 million for the three months ended March 31, 2026 and 2025, respectively.

The gross realized gains from sales of available-for-sale securities for the three months ended March 31, 2026 and 2025 were $4,000 and $5,000, respectively. The gross realized losses from sales of available-for-sale securities for the three months ended March 31, 2026 and 2025 were $5,000 and $2,000, respectively.

As of March 31, 2026 and December 31, 2025, there were $1,000 and $0 of payables from securities purchased, respectively. As of March 31, 2026 and December 31, 2025, there were $13,000 and $0 of receivables from securities sold, respectively.

The Company's gross unrealized gains related to its equity investments were $112,000 and $80,000 as of March 31, 2026 and December 31, 2025, respectively. The Company’s gross unrealized losses related to its equity investments were $81,000 and $79,000 as of March 31, 2026 and December 31, 2025, respectively.

Proceeds from sales of short-term investments were $39.3 million and $24.7 million for the three months ended March 31, 2026 and 2025, respectively. Purchases of short-term investments were $65.4 million and $62.4 million for the three months ended March 31, 2026 and 2025, 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 for the three months ended March 31, 2026 and 2025, respectively, related to the Company's equity securities without a readily determinable fair value. These investments are a component of Other Assets in the Condensed Consolidated Balance Sheets. The value of these investments as of March 31, 2026 and December 31, 2025 were $250,000, respectively.


	Amortized Cost		Estimated Fair Value
Due in one year or less	$	8,906	$	8,803
Due after one year through five years		20,817		19,691
Due after five years through ten years		9,858		8,691
Due after ten years		8,879		6,795
Securities with contractual maturities		48,460		43,980
Asset-backed securities		15,167		15,124
Mortgage-backed securities		21,681		17,972
Commercial mortgage-backed securities		1,169		1,123
Collateralized mortgage obligations		2,361		2,115
Total debt securities	$	88,838	$	80,314

At March 31, 2026 and December 31, 2025, the Insurance Companies Subsidiaries had an aggregate of $8.5 million, respectively, on deposit in trust accounts to meet the deposit requirements of various state insurance departments. At March 31, 2026 and December 31, 2025, the Company had $99.5 million and $98.8 million, respectively, held in trust accounts to meet collateral requirements with other third-party insurers, relating to various fronting arrangements. At March 31, 2026, approximately $98.7 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.