The amortized cost, allowance for credit losses, carrying amount, gross unrealized gains and losses, and the fair value of those investments classified as held-to-maturity at June 30, 2026 are summarized as follows:


	Amortized Cost		Allowance for Credit Losses			Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
States and political subdivisions	$	305,868	$	(21	)	$	305,847	$	2,175	$	(6,972	)	$	301,050
Corporate bonds		16,050		(39	)		16,011		—		(446	)		15,565
U.S. agency-based mortgage-backed securities		2,234		—			2,234		12		(102	)		2,144
U.S. Treasury securities and obligations of U.S. government agencies		8,613		—			8,613		1		(224	)		8,390
Asset-backed securities		9		—			9		—		—			9
Totals	$	332,774	$	(60	)	$	332,714	$	2,188	$	(7,744	)	$	327,158

The amortized cost, gross unrealized gains and losses, fair value, and the allowance for credit losses of those investments classified as available-for-sale at June 30, 2026 are summarized as follows:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Allowance for Credit Losses
	(in thousands)
States and political subdivisions	$	163,451	$	881	$	(5,242	)	$	159,090	$	—
Corporate bonds		114,358		1,085		(949	)		114,494		—
U.S. agency-based mortgage-backed securities		3,668		—		(339	)		3,329		—
U.S. Treasury securities and obligations of U.S. government agencies		8,787		—		(451	)		8,336		—
Totals	$	290,264	$	1,966	$	(6,981	)	$	285,249	$	—

The cost, gross unrealized gains and losses, and the fair value of equity securities at June 30, 2026 are summarized as follows:


	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in thousands)
Equity securities:
Domestic common stock - Exchange Traded Funds	$	31,164	$	32,788	$	—	$	63,952
Total equity securities	$	31,164	$	32,788	$	—	$	63,952


	Amortized Cost		Allowance for Credit Losses			Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
States and political subdivisions	$	322,430	$	(23	)	$	322,407	$	2,030	$	(6,908	)	$	317,529
Corporate bonds		16,751		(50	)		16,701		—		(456	)		16,245
U.S. agency-based mortgage-backed securities		2,403		—			2,403		26		(81	)		2,348
U.S. Treasury securities and obligations of U.S. government agencies		8,567		—			8,567		6		(128	)		8,445
Asset-backed securities		9		—			9		—		—			9
Totals	$	350,160	$	(73	)	$	350,087	$	2,062	$	(7,573	)	$	344,576

The amortized cost, gross unrealized gains and losses, fair value, and the allowance for credit losses of those investments classified as available-for-sale at December 31, 2025 are summarized as follows:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Allowance for Credit Losses
	(in thousands)
States and political subdivisions	$	163,042	$	630	$	(5,482	)	$	158,190	$	—
Corporate bonds		137,198		2,231		(725	)		138,704		—
U.S. agency-based mortgage-backed securities		3,946		—		(305	)		3,641		—
U.S. Treasury securities and obligations of U.S. government agencies		12,930		—		(427	)		12,503		—
Totals	$	317,116	$	2,861	$	(6,939	)	$	313,038	$	—

The cost, gross unrealized gains and losses, and the fair value of equity securities at December 31, 2025 are summarized as follows:


	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in thousands)
Equity securities:
Domestic common stock - Exchange Traded Funds	$	31,165	$	26,328	$	—	$	57,493
Total equity securities	$	31,165	$	26,328	$	—	$	57,493

A summary of the carrying amounts and fair value of investments in fixed maturity securities classified as held-to-maturity, by contractual maturity, is as follows:


	June 30, 2026				December 31, 2025
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(in thousands)
Maturity:
Within one year	$	30,276	$	30,143	$	28,620	$	28,561
After one year through five years		71,888		69,852		76,161		74,506
After five years through ten years		115,642		112,707		119,321		116,970
After ten years		112,665		112,303		123,573		122,182
U.S. agency-based mortgage-backed securities		2,234		2,144		2,403		2,348
Asset-backed securities		9		9		9		9
Totals	$	332,714	$	327,158	$	350,087	$	344,576

A summary of the amortized cost and fair value of investments in fixed maturity securities classified as available-for-sale, by contractual maturity, is as follows:


	June 30, 2026				December 31, 2025
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(in thousands)
Maturity:
Within one year	$	3,044	$	3,034	$	41,029	$	40,939
After one year through five years		83,038		81,661		76,260		75,796
After five years through ten years		71,621		70,416		76,895		76,076
After ten years		128,893		126,809		118,986		116,586
U.S. agency-based mortgage-backed securities		3,668		3,329		3,946		3,641
Totals	$	290,264	$	285,249	$	317,116	$	313,038


	Less Than 12 Months				12 Months or Greater				Total
	Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses
	(in thousands)
June 30, 2026
Available-for-Sale
States and political subdivisions	$	31,270	$	346	$	61,717	$	4,896	$	92,987	$	5,242
Corporate bonds		37,261		292		19,093		657		56,354		949
U.S. agency-based mortgage-backed securities		—		—		3,329		339		3,329		339
U.S. Treasury securities and obligations of U.S. government agencies		3,821		18		4,515		433		8,336		451
Total available-for-sale securities	$	72,352	$	656	$	88,654	$	6,325	$	161,006	$	6,981

At June 30, 2026, the Company held 137 individual fixed maturity securities classified as available-for-sale that were in an unrealized loss position.


	Less Than 12 Months				12 Months or Greater				Total
	Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses
	(in thousands)
December 31, 2025
Available-for-Sale
States and political subdivisions	$	28,892	$	634	$	76,440	$	4,848	$	105,332	$	5,482
Corporate bonds		5,537		8		31,115		717		36,652		725
U.S. agency-based mortgage-backed securities		—		—		3,641		305		3,641		305
U.S. Treasury securities and obligations of U.S. government agencies		—		—		12,503		427		12,503		427
Total available-for-sale securities	$	34,429	$	642	$	123,699	$	6,297	$	158,128	$	6,939

The following table illustrates the changes in the allowance for credit losses by major security type of the investments classified as held-to-maturity for the quarter ended June 30, 2026.


	States and Political Subdivisions			Corporate Bonds			U.S. Agency -Based Mortgage- Backed Securities		U.S. Treasury Securities and Obligations of U.S. Government Agencies		Asset-Backed Securities		Totals
	(in thousands)
Balance at March 31, 2026	$	22		$	43		$	—	$	—	$	—	$	65
Provision for credit loss benefit		(1	)		(4	)		—		—		—		(5	)
Balance at June 30, 2026	$	21		$	39		$	—	$	—	$	—	$	60

The following table illustrates the changes in the allowance for credit losses by major security type of the investments classified as held-to-maturity for the six months ended June 30, 2026.


	States and Political Subdivisions			Corporate Bonds			U.S. Agency -Based Mortgage- Backed Securities		U.S. Treasury Securities and Obligations of U.S. Government Agencies		Asset-Backed Securities		Totals
	(in thousands)
Balance at December 31, 2025	$	23		$	50		$	—	$	—	$	—	$	73
Provision for credit loss benefit		(2	)		(11	)		—		—		—		(13	)
Balance at June 30, 2026	$	21		$	39		$	—	$	—	$	—	$	60

As of June 30, 2026, the Company has established an allowance for credit losses on 254 held-to-maturity securities totaling $0.1 million. Most of those securities were issued by states and political subdivisions (245 securities) and corporate bonds (8 securities).

The Company had no allowance for credit losses on investments classified as available-for-sale for the period ended June 30, 2026.

The credit rating used for held-to-maturity fixed income securities is the rating for each security as published by Moody’s, Standard and Poor’s, and Fitch to determine the probability of default. If there are three ratings, the median rating is used. If there are only two ratings, the lower rating is used. If there is one rating, that rating is used. For corporate fixed income securities (given a rating), the probability of default comes from Moody’s annual study of corporate bond defaults published each February. The maximum maturity using the default rate is 20 years (any maturity greater than 20 years will use the 20-year rate). For municipal fixed income securities (given a rating), the probability of default comes from Moody’s annual study of municipal bond defaults.

The calculation of the credit loss allowance takes the amortized cost of the fixed income security and assumes default and recovery based on the average recovery rates from the Moody’s default studies. The amortized cost of the security, plus any accrued interest, minus the amount recovered, is the estimated full amount the Company could lose in a default scenario. Then this amount is multiplied by the probability of default to determine the allowance for credit loss. The lower the security is rated, the higher likelihood of default, and therefore a higher allowance for credit loss. The longer to the maturity date of a security, the higher the default risk.

The table below presents the amortized cost of held-to-maturity securities aggregated by credit quality indicator as of June 30, 2026.


	States and Political Subdivisions		Corporate Bonds		U.S. Agency -Based Mortgage- Backed Securities		U.S. Treasury Securities and Obligations of U.S. Government Agencies		Asset-Backed Securities		Totals
	Amortized Cost
	(in thousands)
AAA/AA/A ratings	$	305,868	$	9,580	$	2,234	$	8,613	$	—	$	326,295
Baa/BBB ratings		—		6,470		—		—		9		6,479
Total	$	305,868	$	16,050	$	2,234	$	8,613	$	9	$	332,774

Net realized losses in the quarter ended June 30, 2026 were $0.1 million resulting from the redemption of fixed maturity securities. Net realized gains in the quarter ended June 30, 2025 were $3.1 million resulting from the sales of equity and fixed maturity securities classified as available-for-sale.

Net realized losses in the six months ended June 30, 2026 were $0.1 million resulting from the redemption of fixed maturity securities. Net realized gains in the six months ended June 30, 2025 were $3.1 million resulting primarily from the sales of equity and fixed maturity securities classified as available-for-sale.

During the second quarter of 2026, we recognized through income $8.1 million of net unrealized gains on equity securities. During the second quarter of 2025, we recognized through income $1.8 million of net unrealized gains on equity securities.

During the six months ended June 30, 2026, the Company recognized through income $6.5 million of net unrealized gains on equity securities compared to $1.3 million of net unrealized losses on equity securities for the same period in 2025.

Investment income is recognized as it is earned. The discount or premium on fixed maturity securities is amortized using the “constant yield” method. Anticipated prepayments, where applicable, are considered when determining the amortization of premiums or discounts. Realized investment gains and losses are determined using the specific identification method.

The Company invests in Exchange Traded Funds with the objective of diversifying portfolio holdings.