Investments (Tables)
|
6 Months Ended |
Jun. 30, 2026 |
|---|
| Debt and Equity Securities, FV-NI |
|
| Schedule of Available-for-sale Securities Reconciliation |
The following table details fixed-maturity available-for-sale securities, by major investment category, at June 30, 2026 and December 31, 2025:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost or Adjusted/ Amortized Cost |
|
|
Gross Unrealized Gains |
|
|
|
Gross Unrealized Losses |
|
|
Fair Value |
|
June 30, 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government and agency securities |
$ |
76,275 |
|
|
$ |
72 |
|
|
|
$ |
252 |
|
|
$ |
76,095 |
|
Corporate securities |
|
83,211 |
|
|
|
21 |
|
|
|
|
4,122 |
|
|
|
79,110 |
|
Mortgage-backed securities |
|
33,624 |
|
|
|
7 |
|
|
|
|
3,861 |
|
|
|
29,770 |
|
States, municipalities and political subdivisions |
|
33,786 |
|
|
|
15 |
|
|
|
|
1,341 |
|
|
|
32,460 |
|
Asset-backed securities |
|
12,039 |
|
|
|
9 |
|
|
|
|
669 |
|
|
|
11,379 |
|
Public utilities |
|
9,198 |
|
|
|
10 |
|
|
|
|
203 |
|
|
|
9,005 |
|
Foreign government |
|
586 |
|
|
|
1 |
|
|
|
|
3 |
|
|
|
584 |
|
Total fixed maturities |
$ |
248,719 |
|
|
$ |
135 |
|
|
|
$ |
10,451 |
|
|
$ |
238,403 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government and agency securities |
$ |
91,496 |
|
|
$ |
622 |
|
|
|
$ |
— |
|
|
$ |
92,118 |
|
Corporate securities |
|
84,332 |
|
|
|
173 |
|
|
|
|
3,760 |
|
|
|
80,745 |
|
Mortgage-backed securities |
|
34,299 |
|
|
|
259 |
|
|
|
|
3,847 |
|
|
|
30,711 |
|
States, municipalities and political subdivisions |
|
28,155 |
|
|
|
87 |
|
|
|
|
1,164 |
|
|
|
27,078 |
|
Asset-backed securities |
|
13,246 |
|
|
|
49 |
|
|
|
|
638 |
|
|
|
12,657 |
|
Public utilities |
|
9,384 |
|
|
|
41 |
|
|
|
|
179 |
|
|
|
9,246 |
|
Foreign government |
|
591 |
|
|
|
6 |
|
|
|
|
— |
|
|
|
597 |
|
Total fixed maturities |
$ |
261,503 |
|
|
$ |
1,237 |
|
|
|
$ |
9,588 |
|
|
$ |
253,152 |
|
|
| Equity Securities Fair Value |
Equity securities are summarized as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2026 |
|
December 31, 2025 |
|
Estimated
Fair Value |
|
|
Percent of Total |
|
Estimated
Fair Value |
|
|
Percent of Total |
Mutual funds |
$ |
52,014 |
|
|
|
91.2 |
|
% |
|
$ |
56,637 |
|
|
|
91.8 |
|
% |
Other common stocks |
|
5,035 |
|
|
|
8.8 |
|
|
|
|
5,048 |
|
|
|
8.2 |
|
|
Total equity securities |
$ |
57,049 |
|
|
|
100.0 |
|
% |
|
$ |
61,685 |
|
|
|
100.0 |
|
% |
The Company's unrealized gains on its equity securities for the three and six months ended June 30, 2026 totaled $4,076,000 and $3,125,000, respectively.
|
| Schedule of Realized Gain (Loss) |
The following table details the Company's realized gains (losses) by major investment category for the three and six months ended June 30, 2026 and 2025, respectively:
|
|
|
|
|
|
|
|
|
|
|
|
|
2026 |
|
|
2025 |
|
Gains
(Losses) |
|
|
Fair Value
at Sale(1) |
|
|
Gains
(Losses) |
|
|
Fair Value
at Sale(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
|
|
|
|
|
|
|
|
|
Fixed maturities |
$ |
— |
|
|
$ |
17,014 |
|
|
$ |
— |
|
|
$ |
45,369 |
|
Equity securities |
|
3,280 |
|
|
|
15,021 |
|
|
|
— |
|
|
|
— |
|
Short-term investments |
|
— |
|
|
|
5,200 |
|
|
|
— |
|
|
|
20,350 |
|
Total realized gains |
|
3,280 |
|
|
|
37,235 |
|
|
|
— |
|
|
|
65,719 |
|
Fixed maturities |
|
(16 |
) |
|
|
415 |
|
|
|
— |
|
|
|
— |
|
Total realized losses |
|
(16 |
) |
|
|
415 |
|
|
|
— |
|
|
|
— |
|
Net realized investment gains |
$ |
3,264 |
|
|
$ |
37,650 |
|
|
$ |
— |
|
|
$ |
65,719 |
|
Six Months Ended June 30, |
|
|
|
|
|
|
|
|
|
|
|
Fixed maturities |
$ |
6 |
|
|
$ |
20,853 |
|
|
$ |
2 |
|
|
$ |
51,680 |
|
Equity securities |
|
3,280 |
|
|
|
15,021 |
|
|
|
1,383 |
|
|
|
9,998 |
|
Short-term investments |
|
— |
|
|
|
5,200 |
|
|
|
— |
|
|
|
20,499 |
|
Total realized gains |
|
3,286 |
|
|
|
41,074 |
|
|
|
1,385 |
|
|
|
82,177 |
|
Fixed maturities |
|
(16 |
) |
|
|
415 |
|
|
|
(3 |
) |
|
|
1,000 |
|
Total realized losses |
|
(16 |
) |
|
|
415 |
|
|
|
(3 |
) |
|
|
1,000 |
|
Net realized investment gains |
$ |
3,270 |
|
|
$ |
41,489 |
|
|
$ |
1,382 |
|
|
$ |
83,177 |
|
(1) Fair value at sale includes maturities and paydowns executed at par value.
|
| Investments Classified by Contractual Maturity Date |
The table below summarizes the Company's fixed maturities at June 30, 2026 by contractual maturity period. Actual results may differ, as issuers may have the right to call or prepay obligations, with or without penalties, prior to the contractual maturities of those obligations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2026 |
|
Cost or Amortized Cost |
|
|
Percent of Total |
|
Fair Value |
|
|
Percent of Total |
Due in one year or less |
$ |
50,084 |
|
|
|
20.1 |
|
% |
|
$ |
50,061 |
|
|
|
21.0 |
|
% |
Due after one year through five years |
|
137,459 |
|
|
|
55.3 |
|
|
|
|
133,162 |
|
|
|
55.8 |
|
|
Due after five years through ten years |
|
12,290 |
|
|
|
4.9 |
|
|
|
|
11,282 |
|
|
|
4.7 |
|
|
Due after ten years |
|
3,223 |
|
|
|
1.3 |
|
|
|
|
2,749 |
|
|
|
1.2 |
|
|
Asset and mortgage-backed securities |
|
45,663 |
|
|
|
18.4 |
|
|
|
|
41,149 |
|
|
|
17.3 |
|
|
Total |
$ |
248,719 |
|
|
|
100.0 |
|
% |
|
$ |
238,403 |
|
|
|
100.0 |
|
% |
|
| Investment Income |
The following table summarizes net investment income by major investment category:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
Fixed maturities |
$ |
2,414 |
|
|
$ |
2,671 |
|
|
$ |
4,613 |
|
|
$ |
5,317 |
|
Equity securities |
|
236 |
|
|
|
205 |
|
|
|
474 |
|
|
|
335 |
|
Other investments |
|
563 |
|
|
|
466 |
|
|
|
1,107 |
|
|
|
736 |
|
Cash and cash equivalents |
|
2,255 |
|
|
|
2,531 |
|
|
|
4,419 |
|
|
|
4,085 |
|
Investment income |
|
5,468 |
|
|
|
5,873 |
|
|
|
10,613 |
|
|
|
10,473 |
|
Investment expenses |
|
(66 |
) |
|
|
(80 |
) |
|
|
(132 |
) |
|
|
(169 |
) |
Net investment income |
$ |
5,402 |
|
|
$ |
5,793 |
|
|
$ |
10,481 |
|
|
$ |
10,304 |
|
|
| Schedule of Unrealized Loss on Investments |
The following table presents an aging of the Company's unrealized investment losses by investment class:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less Than Twelve Months |
|
|
Twelve Months or More |
|
|
Number of Securities(1) |
|
|
Gross Unrealized Losses |
|
|
Fair Value |
|
|
Number of Securities(1) |
|
|
Gross Unrealized Losses |
|
|
Fair Value |
|
June 30, 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government and agency securities |
|
3 |
|
|
$ |
252 |
|
|
$ |
30,062 |
|
|
|
— |
|
|
$ |
— |
|
|
$ |
— |
|
Corporate securities |
|
82 |
|
|
|
339 |
|
|
|
31,185 |
|
|
|
73 |
|
|
|
3,783 |
|
|
|
43,519 |
|
Mortgage-backed securities |
|
22 |
|
|
|
54 |
|
|
|
4,657 |
|
|
|
53 |
|
|
|
3,807 |
|
|
|
24,198 |
|
States, municipalities and political subdivisions |
|
55 |
|
|
|
192 |
|
|
|
14,735 |
|
|
|
22 |
|
|
|
1,149 |
|
|
|
13,762 |
|
Asset-backed securities |
|
6 |
|
|
|
4 |
|
|
|
966 |
|
|
|
22 |
|
|
|
665 |
|
|
|
6,656 |
|
Public utilities |
|
11 |
|
|
|
47 |
|
|
|
4,430 |
|
|
|
6 |
|
|
|
156 |
|
|
|
3,466 |
|
Foreign governments |
|
1 |
|
|
|
3 |
|
|
|
418 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total fixed maturities |
|
180 |
|
|
$ |
891 |
|
|
$ |
86,453 |
|
|
|
176 |
|
|
$ |
9,560 |
|
|
$ |
91,601 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government and agency securities |
|
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
— |
|
|
$ |
— |
|
|
$ |
— |
|
Corporate securities |
|
27 |
|
|
|
57 |
|
|
|
11,165 |
|
|
|
78 |
|
|
|
3,703 |
|
|
|
46,381 |
|
Mortgage-backed securities |
|
2 |
|
|
|
5 |
|
|
|
263 |
|
|
|
54 |
|
|
|
3,842 |
|
|
|
26,094 |
|
States, municipalities and political subdivisions |
|
13 |
|
|
|
24 |
|
|
|
4,528 |
|
|
|
24 |
|
|
|
1,140 |
|
|
|
14,992 |
|
Asset-backed securities |
|
3 |
|
|
|
2 |
|
|
|
591 |
|
|
|
21 |
|
|
|
636 |
|
|
|
6,715 |
|
Public utilities |
|
4 |
|
|
|
5 |
|
|
|
1,772 |
|
|
|
6 |
|
|
|
174 |
|
|
|
3,472 |
|
Foreign governments |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total fixed maturities |
|
49 |
|
|
$ |
93 |
|
|
$ |
18,319 |
|
|
|
183 |
|
|
$ |
9,495 |
|
|
$ |
97,654 |
|
(1) This amount represents the actual number of discrete securities, not the number of shares or units of those securities. The numbers are not presented in thousands.
|
| Schedule of Fair Value of Financial Instruments Measured on a Recurring Basis |
The following table presents the fair value of the Company's financial instruments measured on a recurring basis by level at June 30, 2026 and December 31, 2025, respectively:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
June 30, 2026 |
|
|
|
|
|
|
|
|
|
|
|
U.S. government and agency securities |
$ |
76,095 |
|
|
$ |
— |
|
|
$ |
76,095 |
|
|
$ |
— |
|
Corporate securities |
|
79,110 |
|
|
|
— |
|
|
|
79,110 |
|
|
|
— |
|
Mortgage-backed securities |
|
29,770 |
|
|
|
— |
|
|
|
29,770 |
|
|
|
— |
|
States, municipalities and political subdivisions |
|
32,460 |
|
|
|
— |
|
|
|
32,460 |
|
|
|
— |
|
Asset-backed securities |
|
11,379 |
|
|
|
— |
|
|
|
11,379 |
|
|
|
— |
|
Public utilities |
|
9,005 |
|
|
|
— |
|
|
|
9,005 |
|
|
|
— |
|
Foreign government |
|
584 |
|
|
|
— |
|
|
|
584 |
|
|
|
— |
|
Total fixed maturities |
|
238,403 |
|
|
|
— |
|
|
|
238,403 |
|
|
|
— |
|
Mutual funds |
|
52,014 |
|
|
|
52,014 |
|
|
|
— |
|
|
|
— |
|
Other common stocks (1) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total equity securities |
|
52,014 |
|
|
|
52,014 |
|
|
|
— |
|
|
|
— |
|
Other investments (2) |
|
17,887 |
|
|
|
— |
|
|
|
16,682 |
|
|
|
1,205 |
|
Total investments |
$ |
308,304 |
|
|
$ |
52,014 |
|
|
$ |
255,085 |
|
|
$ |
1,205 |
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 |
|
|
|
|
|
|
|
|
|
|
|
U.S. government and agency securities |
$ |
92,118 |
|
|
$ |
— |
|
|
$ |
92,118 |
|
|
$ |
— |
|
Corporate securities |
|
80,745 |
|
|
|
— |
|
|
|
80,745 |
|
|
|
— |
|
Mortgage-backed securities |
|
30,711 |
|
|
|
— |
|
|
|
30,711 |
|
|
|
— |
|
States, municipalities and political subdivisions |
|
27,078 |
|
|
|
— |
|
|
|
27,078 |
|
|
|
— |
|
Asset-backed securities |
|
12,657 |
|
|
|
— |
|
|
|
12,657 |
|
|
|
— |
|
Public utilities |
|
9,246 |
|
|
|
— |
|
|
|
9,246 |
|
|
|
— |
|
Foreign government |
|
597 |
|
|
|
— |
|
|
|
597 |
|
|
|
— |
|
Total fixed maturities |
|
253,152 |
|
|
|
— |
|
|
|
253,152 |
|
|
|
— |
|
Mutual Funds |
|
56,637 |
|
|
|
56,637 |
|
|
|
— |
|
|
|
— |
|
Other common stocks (1) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total equity securities |
|
56,637 |
|
|
|
56,637 |
|
|
|
— |
|
|
|
— |
|
Other investments (2) |
|
21,096 |
|
|
|
— |
|
|
|
21,096 |
|
|
|
— |
|
Total investments |
$ |
330,885 |
|
|
$ |
56,637 |
|
|
$ |
274,248 |
|
|
$ |
— |
|
(1) Other common stocks in the fair value hierarchy exclude common stock interests that are measured at estimated fair value using the net asset value per share (or its equivalent) practical expedient. (2) Other investments included in the fair value hierarchy exclude investments that are measured at estimated fair value using the net asset value per share (or its equivalent) practical expedient and investments carried at amortized cost.
|
| Schedule of Warrants Fair Value Estimated Using Black-Scholes-Merton Formula |
The fair value of Company's warrants was estimated using the Black-Scholes-Merton formula. The following assumptions were used to value the warrants as of June 30, 2026:
|
|
|
|
|
June 30, 2026 |
|
Price per common share |
$ |
65.13 |
|
Expected annual dividend yield |
|
— |
% |
Expected volatility |
|
48.09 |
% |
Risk-free interest rate |
|
4.44 |
% |
Expected term |
9.12 years |
|
|
| Schedule of Investments in Limited Partnerships |
The information presented in the table below is as of June 30, 2026 and December 31, 2025:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book Value |
|
|
Unrealized Gain |
|
|
Unrealized Loss |
|
|
Fair Value |
|
June 30, 2026 |
|
|
|
|
|
|
|
|
|
|
|
Limited partnership investments (1) |
$ |
3,053 |
|
|
$ |
1,525 |
|
|
$ |
— |
|
|
$ |
4,578 |
|
Real estate management LLC |
|
2,042 |
|
|
|
— |
|
|
|
— |
|
|
|
2,042 |
|
Surplus note (1) |
|
6,000 |
|
|
|
— |
|
|
|
— |
|
|
|
6,000 |
|
Warrants |
|
— |
|
|
|
1,205 |
|
|
|
— |
|
|
|
1,205 |
|
Commercial mortgage loans |
|
6,840 |
|
|
|
— |
|
|
|
— |
|
|
|
6,840 |
|
Short-term investments |
|
16,713 |
|
|
|
1 |
|
|
|
32 |
|
|
|
16,682 |
|
Total other investments |
$ |
34,648 |
|
|
$ |
2,731 |
|
|
$ |
32 |
|
|
$ |
37,347 |
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 |
|
|
|
|
|
|
|
|
|
|
|
Limited partnership investments (1) |
$ |
3,024 |
|
|
$ |
1,093 |
|
|
$ |
— |
|
|
$ |
4,117 |
|
Real estate management LLC |
|
2,000 |
|
|
|
— |
|
|
|
— |
|
|
|
2,000 |
|
Surplus note (1) |
|
6,000 |
|
|
|
— |
|
|
|
— |
|
|
|
6,000 |
|
Commercial mortgage loans |
|
6,840 |
|
|
|
— |
|
|
|
— |
|
|
|
6,840 |
|
Short-term investments |
|
21,090 |
|
|
|
13 |
|
|
|
7 |
|
|
|
21,096 |
|
Total other investments |
$ |
38,954 |
|
|
$ |
1,106 |
|
|
$ |
7 |
|
|
$ |
40,053 |
|
(1) Distributions will be generated from operating income, investment gains, underlying investments of funds, and from liquidation of the underlying assets of the funds. The Company estimates that the underlying assets of the funds will be liquidated over the next four to seven years.
|
| Restrictions on Cash and Cash Equivalents |
The following table presents the components of restricted assets:
|
|
|
|
|
|
|
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
Trust funds |
$ |
97,914 |
|
|
$ |
93,734 |
|
Cash on deposit (regulatory deposits) |
|
366 |
|
|
|
358 |
|
Total restricted cash |
$ |
98,280 |
|
|
$ |
94,092 |
|
|