| Investments The amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of the Company’s available-for-sale (AFS) investments were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Amortized
Cost | | Allowance for Current Expected Credit Losses | | Gross
Unrealized
Gains | | Gross
Unrealized
Losses | | Estimated
Fair Value | | | (in millions) | | At June 30, 2026 | | | | | | | | | | | | Fixed maturity securities | | | | | | | | | | | | U.S. Treasuries | | $ | 81.9 | | | $ | — | | | $ | 0.2 | | | $ | (1.2) | | | $ | 80.9 | | | | | | | | | | | | | | States and municipalities | | 150.0 | | | — | | | 2.4 | | | (0.7) | | | 151.7 | | | Corporate securities | | 713.4 | | | — | | | 6.4 | | | (17.0) | | | 702.8 | | | Residential mortgage-backed securities | | 753.0 | | | — | | | 2.5 | | | (7.3) | | | 748.2 | | | Commercial mortgage-backed securities | | 29.9 | | | — | | | 0.2 | | | (0.1) | | | 30.0 | | | Asset-backed securities | | 166.1 | | | — | | | 0.9 | | | (0.7) | | | 166.3 | | | Collateralized loan obligations | | 2.5 | | | — | | | — | | | — | | | 2.5 | | | Foreign government securities | | 2.0 | | | — | | | — | | | — | | | 2.0 | | Other securities(1) | | 155.7 | | | (1.1) | | | 0.3 | | | (1.4) | | | 153.5 | | | Total fixed maturity securities | | $ | 2,054.5 | | | $ | (1.1) | | | $ | 12.9 | | | $ | (28.4) | | | $ | 2,037.9 | | | Short-term investments | | 21.7 | | | — | | | — | | | — | | | 21.7 | | | Total AFS investments | | $ | 2,076.2 | | | $ | (1.1) | | | $ | 12.9 | | | $ | (28.4) | | | $ | 2,059.6 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Amortized
Cost | | Allowance for Current Expected Credit Losses | | Gross
Unrealized
Gains | | Gross
Unrealized
Losses | | Estimated
Fair Value | | | (in millions) | | At December 31, 2025 | | | | | | | | | | | | Fixed maturity securities | | | | | | | | | | | | U.S. Treasuries | | $ | 80.0 | | | $ | — | | | $ | 1.0 | | | $ | (0.9) | | | $ | 80.1 | | | | | | | | | | | | | | States and municipalities | | 156.5 | | | — | | | 4.2 | | | (0.8) | | | 159.9 | | | Corporate securities | | 654.8 | | | — | | | 12.7 | | | (12.2) | | | 655.3 | | | Residential mortgage-backed securities | | 800.5 | | | — | | | 4.8 | | | (2.4) | | | 802.9 | | | Commercial mortgage-backed securities | | 28.6 | | | — | | | 0.3 | | | — | | | 28.9 | | | Asset-backed securities | | 160.9 | | | — | | | 2.3 | | | (0.1) | | | 163.1 | | | Collateralized loan obligations | | 12.5 | | | — | | | — | | | — | | | 12.5 | | | Foreign government securities | | 2.0 | | | — | | | — | | | — | | | 2.0 | | Other securities(1) | | 136.0 | | | (0.4) | | | 0.7 | | | (0.3) | | | 136.0 | | | Total fixed maturity securities | | $ | 2,031.8 | | | $ | (0.4) | | | $ | 26.0 | | | $ | (16.7) | | | $ | 2,040.7 | | | Short-term investments | | 10.1 | | | — | | | — | | | — | | | 10.1 | | | Total AFS investments | | $ | 2,041.9 | | | $ | (0.4) | | | $ | 26.0 | | | $ | (16.7) | | | $ | 2,050.8 | |
(1)Other securities within fixed maturity securities consist of bank loans, which are classified as AFS and reported at fair value. The cost and estimated fair value of the Company’s equity securities recorded at fair value at June 30, 2026 and December 31, 2025 were as follows: | | | | | | | | | | | | | | | | | Cost | | Estimated Fair Value | | | (in millions) | | At June 30, 2026 | | | | | | Equity securities at fair value | | | | | | Industrial and miscellaneous | | $ | 74.9 | | | $ | 149.1 | | | Other | | 12.2 | | | 22.4 | | | Total equity securities at fair value | | $ | 87.1 | | | $ | 171.5 | |
| | | | | | | | | | | | | | | | | | | | | | | | At December 31, 2025 | | | | | | Equity securities at fair value | | | | | | Industrial and miscellaneous | | $ | 81.7 | | | $ | 157.9 | | | Other | | 14.8 | | | 26.1 | | | Total equity securities at fair value | | $ | 96.5 | | | $ | 184.0 | |
The Company had Other invested assets totaling $96.1 million and $96.5 million (with an associated cost of $77.4 million and $79.4 million) at June 30, 2026 and December 31, 2025, respectively, consisting of private equity limited partnerships, which are carried at NAV based on information provided by the general partner. These investments are non-redeemable until conversion and are periodically evaluated by the Company for impairment based on the ultimate recovery of the investment. Changes in the value of these investments are recorded through Net realized and unrealized losses on the Company’s Consolidated Statements of Comprehensive Income (Loss). The amortized cost and estimated fair value of the Company’s fixed maturity securities at June 30, 2026, by contractual maturity, are shown below. Expected maturities differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | | | | | | | | | | | | | | | | | Amortized Cost | | Estimated Fair Value | | | (in millions) | | Due in one year or less | | $ | 37.2 | | | $ | 37.1 | | | Due after one year through five years | | 369.1 | | | 362.0 | | | Due after five years through ten years | | 618.8 | | | 615.1 | | | Due after ten years | | 77.9 | | | 76.7 | | | Mortgage and asset-backed securities | | 951.5 | | | 947.0 | | | Total | | $ | 2,054.5 | | | $ | 2,037.9 | |
The following is a summary of AFS investments that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 months or greater in each case as of June 30, 2026 and December 31, 2025. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | December 31, 2025 | | | Estimated Fair Value | | Gross
Unrealized
Losses | | Number of Issues | | Estimated Fair Value | | Gross
Unrealized
Losses | | Number of Issues | | | (dollars in millions) | | Less than 12 months: | | | | | | | | | | | | | | Fixed maturity securities | | | | | | | | | | | | | | U.S. Treasuries | | $ | 41.9 | | | $ | (0.6) | | | 9 | | | $ | — | | | $ | — | | | — | | | | | | | | | | | | | | | | States and municipalities | | 24.0 | | | (0.2) | | | 13 | | | 21.7 | | | (0.2) | | | 6 | | | Corporate securities | | 241.1 | | | (4.1) | | | 87 | | | 96.9 | | | (0.7) | | | 32 | | Residential mortgage-backed securities | | 423.1 | | | (5.0) | | | 129 | | | 252.7 | | | (0.9) | | | 53 | | Commercial mortgage-backed securities | | 9.3 | | | (0.1) | | | 7 | | | — | | | — | | | — | | | Asset-backed securities | | 81.8 | | | (0.7) | | | 48 | | | 32.4 | | | (0.1) | | | 15 | | | | | | | | | | | | | | | | | | | | | | | | | | | | Other securities | | 86.1 | | | (1.3) | | | 505 | | | 19.7 | | | (0.2) | | | 355 | | | Total fixed maturity securities | | 907.3 | | | (12.0) | | | 798 | | | 423.4 | | | (2.1) | | | 461 | | | | | | | | | | | | | | | | Total less than 12 months | | $ | 907.3 | | | $ | (12.0) | | | 798 | | | $ | 423.4 | | | $ | (2.1) | | | 461 | | | | | | | | | | | | | | | | 12 months or greater: | | | | | | | | | | | | | | Fixed maturity securities | | | | | | | | | | | | | | U.S. Treasuries | | $ | 9.8 | | | $ | (0.6) | | | 2 | | | $ | 13.4 | | | $ | (0.9) | | | 2 | | | | | | | | | | | | | | | | States and municipalities | | 11.2 | | | (0.5) | | | 6 | | | 14.0 | | | (0.6) | | | 7 | | | Corporate securities | | 168.0 | | | (12.9) | | | 85 | | | 175.3 | | | (11.5) | | | 91 | | Residential mortgage-backed securities | | 55.1 | | | (2.3) | | | 30 | | | 68.2 | | | (1.5) | | | 39 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Other securities | | 6.9 | | | (0.1) | | | 139 | | | 7.3 | | | (0.1) | | | 143 | | | Total fixed maturity securities | | 251.0 | | | (16.4) | | | 262 | | | 278.2 | | | (14.6) | | | 282 | | | Total 12 months or greater | | $ | 251.0 | | | $ | (16.4) | | | 262 | | | $ | 278.2 | | | $ | (14.6) | | | 282 | |
As of June 30, 2026 and December 31, 2025, the Company had an allowance for current expected credit losses (CECL) on AFS investments of $1.1 million and $0.4 million, respectively (See Note 5). Those fixed maturity securities whose total fair value was less than amortized cost at each of June 30, 2026 and December 31, 2025, were those in which the Company had no intent, need, or requirement to sell at an amount less than their amortized cost. Realized gains and losses on investments include the gain or loss on a security at the time of sale compared to its original or adjusted cost (equity securities and other invested assets) or amortized cost (fixed maturity securities). Realized losses on fixed maturity securities are also recognized when securities are written down as a result of an other-than-temporary impairment or for unfavorable changes in CECL. Reversals of previously recognized realized losses on fixed maturity securities can also result when securities are written up for favorable changes in CECL. Net realized gains on investments and the change in unrealized gains (losses) on the Company’s investments recorded at fair value are determined on a specific-identification basis and were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Gross Realized Gains | | Gross Realized Losses | | Net (Increase) Decrease in CECL Allowance | | Change in Net Unrealized Gains (Losses) | | Changes in Fair Value Reflected in Earnings | | Changes in Fair Value Reflected in AOCI (1), before tax | | | (in millions) | | Three Months Ended June 30, 2026 | | | | | | | | | | | | | | Fixed maturity securities | | $ | 0.2 | | | $ | (0.3) | | | $ | (0.4) | | | $ | (4.1) | | | $ | (0.5) | | | $ | (4.1) | | | Equity securities | | 18.9 | | | (0.9) | | | — | | | (0.3) | | | 17.7 | | | — | | | Other invested assets | | — | | | — | | | — | | | 1.5 | | | 1.5 | | | — | | | | | | | | | | | | | | | | Total investments | | $ | 19.1 | | | $ | (1.2) | | | $ | (0.4) | | | $ | (2.9) | | | $ | 18.7 | | | $ | (4.1) | | | | | | | | | | | | | | | | Six Months Ended June 30, 2026 | | | | | | | | | | | | | | Fixed maturity securities | | $ | 0.6 | | | $ | (0.9) | | | $ | (0.7) | | | $ | (24.8) | | | $ | (1.0) | | | $ | (24.8) | | | Equity securities | | 20.6 | | | (1.2) | | | — | | | (3.0) | | | 16.4 | | | — | | | Other invested assets | | — | | | — | | | — | | | 1.6 | | | 1.6 | | | — | | | | | | | | | | | | | | | | Total investments | | $ | 21.2 | | | $ | (2.1) | | | $ | (0.7) | | | $ | (26.2) | | | $ | 17.0 | | | $ | (24.8) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2025 | | | | | | | | | | | | | | Fixed maturity securities | | $ | 0.1 | | | $ | (0.5) | | | $ | 0.3 | | | $ | 9.5 | | | $ | (0.1) | | | $ | 9.5 | | | Equity securities | | 2.5 | | | (1.1) | | | — | | | 17.3 | | | 18.7 | | | — | | | Other invested assets | | — | | | — | | | — | | | 2.3 | | | 2.3 | | | — | | | | | | | | | | | | | | | | Total investments | | $ | 2.6 | | | $ | (1.6) | | | $ | 0.3 | | | $ | 29.1 | | | $ | 20.9 | | | $ | 9.5 | | | | | | | | | | | | | | | | Six Months Ended June 30, 2025 | | | | | | | | | | | | | | Fixed maturity securities | | $ | 0.2 | | | $ | (1.2) | | | $ | — | | | $ | 37.2 | | | $ | (1.0) | | | $ | 37.2 | | | Equity securities | | 3.2 | | | (2.0) | | | — | | | 11.0 | | | 12.2 | | | — | | | Other invested assets | | — | | | — | | | — | | | (3.1) | | | (3.1) | | | — | | | | | | | | | | | | | | | | Total investments | | $ | 3.4 | | | $ | (3.2) | | | $ | — | | | $ | 45.1 | | | $ | 8.1 | | | $ | 37.2 | |
(1)AOCI indicates Accumulated other comprehensive income or loss. Proceeds from sales of fixed maturity securities were $31.7 million and $79.0 million for the three and six months ended June 30, 2026, respectively, compared to $28.7 million and $75.8 million for the three and six months ended June 30, 2025, respectively. Net investment income was as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, | | June 30, | | | | 2026 | | 2025 | | 2026 | | 2025 | | | | (in millions) | | Fixed maturity securities | | $ | 25.2 | | | $ | 24.8 | | | $ | 50.6 | | | $ | 49.2 | | | Equity securities | | 1.0 | | | 1.8 | | | 2.2 | | | 3.5 | | | Other invested assets | | 0.9 | | | 0.7 | | | 1.8 | | | 6.9 | | | Short-term investments | | 0.1 | | | — | | | 0.3 | | | — | | | Cash equivalents and restricted cash | | 1.0 | | | 0.7 | | | 2.5 | | | 1.4 | | | Gross investment income | | 28.2 | | | 28.0 | | | 57.4 | | | 61.0 | | | Investment expenses | | (0.8) | | | (0.9) | | | (1.7) | | | (1.8) | | | Net investment income | | $ | 27.4 | | | $ | 27.1 | | | $ | 55.7 | | | $ | 59.2 | |
The Company is required by various state laws and regulations to support, through securities on deposit or otherwise, its outstanding loss reserves in certain states in which it does business. These laws and regulations govern not only the amount but also the types of securities that are eligible for deposit. As of June 30, 2026 and December 31, 2025, securities having a fair value of $585.3 million and $587.4 million, respectively, were on deposit. Additionally, standby letters of credit from the FHLB were in place in lieu of $170.0 million of securities on deposit as of both June 30, 2026 and December 31, 2025 (See Note 10). Certain reinsurance contracts require funds owned by the Company to be held in trust for the benefit of the ceding reinsurer to secure the outstanding liabilities assumed by the Company. The fair value of fixed maturity securities and restricted cash and cash equivalents held in trust for the benefit of ceding reinsurers at June 30, 2026 and December 31, 2025 was $3.0 million and $3.1 million, respectively.
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